Bankrate

What’s worse: inflation or unemployment? Most of us would probably rather not choose between the two, but that’s exactly the trade-off facing the Federal Reserve right now. Prices are heating back up, rising 3% over the past year. Yet hiring has cooled to its slowest pace since 2013. Workers are staying unemployed for longer, job-hopping has stalled and small businesses are feeling the pinch from higher costs. When the Fed wraps up its October meeting on Wednesday, officials are widely expected to cut interest rates again, bringing them below 4 percent for the first time since 2022. And by doing so, they’re effectively deciding that it’s riskier to be wrong about jobs than about inflation. Lower rates could help borrowers — think cheaper credit cards, car loans and adjustable-rate mortgages. But because what’s good for the labor market can be bad for inflation (and vice versa), Americans’ wallets, purchasing power and income could all be at stake if the Fed gets it wrong. That’s exactly what Fed Chair Jerome Powell meant when he said, “There’s no risk-free path.” And anyone who’s lived through post-pandemic inflation knows that truth all too well. The Fed is navigating risks on both sides: Move too fast and risk higher prices; move too slow, and risk more job losses. So what do you think? Would you rather see the Fed protect jobs — even if that means higher prices — or keep the focus on inflation? For more on this dilemma, watch my latest video and read my Fed meeting preview: https://lnkd.in/eJQ7hM9

We’ve all been there — spotting a friend for concert tickets, covering a group dinner tab, or helping a family member through a rough patch. Most of us mean well, but money and relationships don’t always mix smoothly. According to a new Bankrate survey, about 7 in 10 Americans have lent money or covered a group expense expecting repayment. Unfortunately, 55% experienced at least one negative outcome such as lost money (44%), damaged relationships (26%), or even a few physical altercations (4%). Talking about money can be awkward. Our survey found that many people would rather discuss potentially sensitive topics such as politics or religion than their finances (wow, that puts it in perspective, doesn’t it?). But setting expectations early can save a lot of frustration later. If you’re lending money, clarify whether it’s a loan or a gift. If you’re covering a group expense, ask for repayment right away. And remember, it’s okay to say no or to offer a different kind of help, like advice or connections. With the holidays approaching, financial favors are about to come up more often. Think ahead about how you’ll handle them and don’t put your own finances at risk. Like they say on airplanes, put your oxygen mask on before helping others. Check out my latest column on Bankrate for more insights on how to navigate these tricky situations. https://lnkd.in/gA6a_FX6

With the government shutdown underway, thousands of workers are facing delayed paychecks. It’s a sharp reminder of why emergency savings matter. For most people, I recommend setting aside the typical 3 to 6 months of essential expenses in a high-yield savings account. Regardless of how much you decide is right for you, it’s not about hitting that number overnight; it’s about building protection one paycheck at a time. Small, consistent steps today can make all the difference when uncertainty strikes. Not sure where to start? Find the best HYSA for you: https://lnkd.in/ePGZyf5u

Many Americans are caught in what I’ve been calling a “worst-of-both-worlds” economy — a cooling job market on one side and stubborn inflation on the other. According to Bankrate’s new Pay Raise Survey, nearly 2 in 3 workers (62%) say their income hasn’t kept pace with increases in household expenses over the past year — the highest share in four years. At the same time, fewer workers are getting ahead at work. - Just 57% got a pay increase in the past 12 months — the lowest since we began polling in 2021. - Only 13% found a better-paying job, roughly half last year’s share. - And 43% didn’t get a pay increase at all — a record high. Four years ago, workers had bargaining power. Job openings outnumbered unemployed jobseekers, and raises were easier to come by. Today, hiring has slowed to its lowest level since the economy was still healing from the Great Recession. The average unemployed worker is out of a job for six months or more. In a slower job market, adaptability matters more than ever. I always tell workers: focus on your “you factor.” What sets you apart? How are you adding value or improving your skills? Those are the workers most likely to be rewarded when opportunities are scarce. Does this feel like the toughest job market since before the pandemic? How are you staying motivated in this tough market? Full story here: https://lnkd.in/gmnsWSE8

Holiday travel demand is cooling off. According to Bankrate’s new Holiday Travel Survey, just 21% of U.S. adults plan to travel this season, down from 27% last year. The biggest drop-offs are among Gen Zers, parents with young kids, and men. The reasons aren’t surprising: inflation, high interest rates, rising debt and shrinking savings. Everything costs about 25% more than it did five years ago, and it’s catching up with people. Higher-income households are driving most of today’s spending on travel and other things (Moody’s says the top 10% of earners are accounting for a record-high 50% of all spending). Credit cards remain the most popular payment method, but 23% of travelers plan to carry credit card balances and another 10% are likely to take on buy now, pay later debt. That’s a big risk when credit card rates hover around 20%–30%. Many BNPL plans are in a similar range, especially those lasting longer than six weeks. If you’re traveling, use your cards strategically: - Pay in full to avoid costly interest - Redeem points and miles to offset expenses - Lean on safeguards like trip cancellation and interruption coverage, rental car insurance and fraud protection Fun is important, but so is avoiding debt hangovers in January. Consider saving money by driving instead of flying. Or if you will be flying, zig when others zag. Take an early flight or a late flight or a connecting flight. Or go a few days before the holiday and/or come back a few days after the peak rush. Traveling on holidays such as Thanksgiving and Christmas can be a bargain if you’re willing to roll the dice that you’ll still arrive in time for the family meal. Read the full survey here: https://lnkd.in/es7REMKd

Should you shop Prime Big Deal Days? Amazon’s Prime Big Deal Days sale is scheduled for October 7 and 8. Along with competing events such as Target Circle Week (October 5-11) and Walmart Deals (October 7-12), this marks the unofficial kickoff of the holiday shopping season. The best deals are expected to be on personal electronics, small kitchen appliances and fitness equipment. Many people resent the holiday creep that has intensified in recent years, but I see it as a good thing. You don’t need to wait until Black Friday anymore. This is useful for several reasons: - Thanksgiving is late this year (November 27). There are only 27 days between Thanksgiving and Christmas in 2025. - Consumers are still worried about inflation, tariffs and the high cost of living. - Starting early gives you more time to spread out your cash flow, find the best deals and enjoy the holidays. Our recent Bankrate survey found that about half of holiday shoppers plan to start making purchases before Oct. 31 (https://lnkd.in/es7REMKd). These early sales are meeting shoppers where they are. Many Americans want to start early, and they only have so many dollars they’re willing to spend. Retailers are seeking to capitalize on that by putting their best foot forward early in the season. If you don’t choose to start early, that’s fine. It’s going to be a season of deals that start in early October and just keep going. You’ll still find plenty of discounts in November and December. But I would still suggest sketching out a budget sooner rather than later. Set money aside from every paycheck between now and the end of the year to build a holiday fund so you’re not incurring pricey credit card debt.

$46,440. That’s what a four-year in-state public university degree costs on average before housing, food, books or other expenses, according to the latest College Scoreboard data. Add in all the other expenses, and you may be looking at a six-figure price tag for college. With college costs steadily climbing, parents are asking themselves more than ever before: How much will funding my kid’s college cost? And will it pay off? Bankrate’s new analysis of over 100 college towns and cities shows that parents and students don’t always have to sacrifice affordability for value. Small college towns like Champaign, Ill.; Clemson, S.C.; and Blacksburg, Va. offer a solid mix of lower living costs and schools with higher graduate rates and strong returns, while college affordability is harder to prioritize in pricey cities like New York and San Francisco. Read the full study, including tips from Lawrence Sprung, CFP® and Veronica M. Minaya on how to manage rising college costs. https://lnkd.in/etRxb6Ay

All I want for Christmas is for us to stay out of credit card debt. 💸 Read more about how Americans are holiday shopping this year on Bankrate: https://lnkd.in/e5c-GPbm