Skimm Money: Weird Economy, Homeownership, And APR

Eyes On

This Weird Economy

The good news: The job market is solid with the unemployment rate at its lowest level since 1969. The bad news: There’s still a risk of a recession. Last week, the Fed raised interest rates for the eighth time to get inflation under control and orchestrate a ‘soft landing.’ It takes time for rate hikes to affect the economy, but it’s starting to happen. See: Consumer spending and inflation cooling down.

Your move:

• Prioritize. Track your spending and adjust your budget based on what matters to you. Example: One man profiled in the WSJ eats Cup Noodles to save $$ for Gucci sneakers. Priorities.

• Pay off high-interest debt. When interest rates go up, borrowing gets more expensive. Case in point: The average credit card APR is over 19% (yikes). Pay your balance on time and in full.

• High-yield. Savings. Account. One perk of rate hikes is that saving is more lucrative. Note: You can only withdraw 6x per month with a high-yield savings account.

Related Stories

• Treasury Secretary Says the Red Hot Labor Market Means the US Can Avoid a Recession

• What the Fed’s Interest Rate Increase Means for Your Mortgage, Car Loan, and Savings

• Lipstick Sales, Packed Lunches, Strippers’ Tips: The Unlikely Signs of Recession

For the Group Chat

An apple a day may not keep the doctor away…

But there’s a debit card to cover fresh fruit and veg costs if your MD prescribes them to you anyway.

What can be just as stressful as marital troubles?

Boss troubles.

Despite earning less $$$ on the dollar…

Single women now own more homes than single men.

Can women ‘have it all?’

Maybe not if they have to work in person.

Highs and Lows

Meta — aka Facebook’s parent company — jumped over 20% last week following Zuckerberg’s ‘year of efficiency’ announcement, which includes cost-cutting initiatives and stock buybacks. Meta’s gains sparked a rally in the tech sector with the NASDAQ Composite rising 3.3%.

5-Minute Money Tip

Check your credit card’s interest rate.

Most credit card companies base their APRs — aka the interest rate you’re charged on your balance — on the Fed’s rate. Right now, the average credit card APR is now over 19%. Open your statement ASAP and review your APR to know how much it’s costing you. PS: A credit card balance transfer could be the move if you’re looking to score a lower rate. PPS: You can also negotiate to get a better rate.