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Yahoo
5 days ago
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Dave Ramsey: Millennials and Gen Zers Want the Child Tax Credit To Be $5K — How This Would Impact Your Wallet
A new survey by Ramsey Solutions found that millennials and Gen Zers want the child tax credit (CTC) to be increased to $5,000. Some respondents claim this increase would have an impact on their decision to have children. For younger Americans facing high costs of living, student loan debt and stagnant wages, this kind of financial relief could help make parenthood feel more attainable. Discover More: Try This: However, a bigger tax credit doesn't just affect new or future parents; it could have ripple effects across generations. Here's why younger generations are rethinking parenthood, and how it could impact your wallet. Also find out how you can qualify for the child tax credit. According to the IRS, the (CTC) allows eligible taxpayers to reduce their federal income tax bill by up to $2,000 per qualifying child. Under the Tax Cuts and Jobs Act, the CTC is set to drop back to $1,000 after 2025 if Congress doesn't take any action. If passed, President Trump's 'One, Big, Beautiful Bill' would make the $2,000 credit permanent and raise the cap to $2,500 through 2028, after which the value would return to $2,000 and adjust for inflation. There are no plans to increase the amount beyond these figures, but Ramsey Solution's The State of Personal Finance report for the fourth quarter of 2024 found that 45% of millennial and Gen Z respondents say increasing the CTC from $2,000 to $5,000 per child would have a 'significant or moderate impact' on whether or not they decide to have children. Find Out: Millennials and Gen Zers have delayed parenthood due to financial pressures, including rising housing costs, childcare expenses and concerns about economic uncertainty. The most recent report from the U.S. Department of Agriculture, based on 2015 data, estimated it costs over $233,000 to raise a child through age 17, not including college. Given inflation and rising living costs, the actual figure today is likely even higher. According to a 2024 survey by Pew Research Center, six in 10 respondents said providing free child care would encourage more people to have children. Respondents also supported requiring employers to offer paid family leave, expanding tax credits and issuing monthly payments to parents of minor children. A larger child tax credit could offer relief to families raising kids, but that money has to come from somewhere. And the financial impact wouldn't be limited to parents alone. The Joint Committee on Taxation (JCT) estimates that a permanent expansion of the CTC with the added boost would cost $880 billion over the 10-year period. That kind of long-term spending raises questions about how the government would cover the cost, whether through higher taxes, increased borrowing or cuts to other federal programs. For older generations, including Baby Boomers and Gen Xers who are no longer raising young children, some could see their tax burden increase or face reduced investment in programs they rely on, such as Medicare or Social Security. Younger generations could also feel the impact. Since the expanded credit would not apply to them, they may still face higher taxes or reduced access to other federal services if offsets are needed to fund the program. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 5 Cities You Need To Consider If You're Retiring in 2025 10 Unreliable SUVs To Stay Away From Buying This article originally appeared on Dave Ramsey: Millennials and Gen Zers Want the Child Tax Credit To Be $5K — How This Would Impact Your Wallet Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
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How this finance expert paid off $280K in student loan debt
Jade Warshaw, Ramsey Solutions personal finance expert and co-host of "The Ramsey Show," joins Wealth with Allie Canal to explain how she paid off $280,000 in student debt in about four years. To watch more expert insights and analysis on the latest market action, check out more Wealth here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-06-2025
- Business
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Rachel Cruze: 4 Things That Keep You Broke Regardless of Salary
The Northwestern Mutual 2025 Planning & Progress Study found that 52% of Americans had household incomes that weren't growing enough to keep up with inflation, which was also the top financial concern reported. Discover More: Consider This: But even if you earn a high enough salary to comfortably handle rising prices, that doesn't mean you'll make good decisions that build wealth. In a recent video, money expert Rachel Cruze discussed four habits that keep you broke regardless of what you make and gave tips on how to stop them. 'If you're continuing to live a lifestyle that your income cannot support, you're going to either be in the hole, or you're going to be draining your savings if you have it,' Cruze said. Sometimes, this happens if you experience an income reduction and refuse to downgrade your lifestyle accordingly. However, living beyond your means can also become a habit at any income level, especially when you're not sure how much money you're making and how you're using it. To stop making this mistake, look at your income and all expenses so you can create a realistic budget you'll stick to. While you're at it, see how you can make more money and where you can cut expenses. Any budgeting spreadsheet or app will work, though Cruze recommended the EveryDollar app. Find Out: Northwestern Mutual's study showed that the average American had $21,500 in non-mortgage personal debt in 2025, with credit cards, car loans and medical debt topping the list. Cruze explained that debt and monthly payments seem normal to many people, so they get used to regularly handing over their income to banks and lenders. This can leave you broke, especially if your debt payments are high. Plus, it leaves you with less money to invest and grow wealth. Cruze recommended prioritizing paying your debts off from the smallest to the largest balance with the debt snowball method. You can use the Ramsey Solutions debt snowball calculator to better understand how the debt is impacting your finances and see when you might become debt-free. Then, you can invest the money you're no longer paying and start getting a return. According to the Bureau of Economic Analysis, Americans were saving about 4.9% of their personal disposable income in April 2025. However, many people still lack basic emergency savings and are left borrowing money or facing difficult choices if something unexpected happens. Cruze suggested making saving a habit by starting with a $1,000 emergency fund and increasing that balance to three to six months of your usual expenses after you've paid off your debt. She also said to put 15% of your pay in a retirement account, which will make a big difference in building wealth. For example, if you're making $50,000 per year, you'd contribute $625 per month. If you keep up that habit for 30 years and get a 7% return, your retirement account balance would be over $700,000 — and that's not even accounting for your likely pay increases over those years. Whether you consider yourself poor or wealthy, you might fall into the trap of constantly wanting to buy fancy things, have amazing experiences and impress people. Depending on your financial situation, you might drain your savings to pay for these things or dig yourself into debt. According to Cruze, wanting to enjoy nice things and experiences isn't necessarily wrong. However, you should practice contentment, not obsess over comparison and save up for the things you want. 'But if your whole life's goal is to constantly be in this wheel of just buying the next greatest thing and just trying to be like everyone else, you are going to be a rat in a wheel for the rest of your life, so don't do that,' she added. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 Warren Buffett: 10 Things Poor People Waste Money On These 10 Used Cars Will Last Longer Than an Average New Vehicle This article originally appeared on Rachel Cruze: 4 Things That Keep You Broke Regardless of Salary Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-06-2025
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A 22-Year-Old CEO Asks Dave Ramsey What To Do About An Employee Asking For Ownership. His Advice After A Sincere Laugh? 'Hit The Road, Jack'
A young business owner called into Dave Ramsey's 'EntreLeadership' podcast with a surprising dilemma: one of his employees asked for ownership in the company. The caller, a 22-year-old CEO of an outdoor recreation event company, wasn't sure how to handle it. Ramsey's response was part tough love, part strategic advice, and all classic Ramsey. 'You've got to be kidding me,' Ramsey said with a laugh. 'I have two employees and I just started this and I'm 22 years old. We're not dealing out equity at this point. No way.' Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Invest where it hurts — and help millions heal:. The caller explained he started the business when he was 18 with a few hundred dollars and had grown it to about $500,000 in annual revenue. He hired the employee full-time to help run events while he focused on scaling. 'I pay them a salary,' the caller said. 'And recently they were doing a good job so I gave them 10% profits on merchandise and 5% profits in the business at the end of the year. Even after doing that, they still insisted they want ownership.' Ramsey didn't hesitate. 'Hit the road, Jack. Not a chance. The last thing you need is a partner,' he said. 'The tail's not wagging the dog here. You're the dog, man.' Trending: Ramsey shared how he compensates his own team at Ramsey Solutions: 'I've got vice presidents in this place, I've got executive VPs, my operating board—none of them have a salary. They all get paid off of the bottom line of the company the 15th of the month following. They get paid a percentage of what the company created in profits the month before, and they make really, really good money.' Ramsey made it clear that while the employee may be valuable, asking for equity in a small, young business is 'asinine.' 'What they're really after is more money,' he said. That's why Ramsey recommended that he pay them as if they were a partner, but without giving them actual ownership. Ramsey then outlined a compensation plan: pay a lower base salary and add a percentage of the profits from the events the employee manages. For example, if two events per month bring in $10,000 each in profit, and the employee is responsible for those, paying 15% of that profit would result in strong earnings. You want him making money because the more money he makes, the more money you make, Ramsey said. 'But if every time I hire three people, one of them becomes a partner, we're going to have 73 partners when this thing grows. No, thank you.'One of the biggest takeaways from Ramsey's advice was the need for clean, detailed accounting. He stressed the importance of closing the books monthly and using job-costing methods to track profit on each event. 'If you don't know what you made on those two events, because you're screwing around with your stuff receipts in a shoebox or something, then you can't calculate his pay,' Ramsey warned. 'And you're not going to be paying him, and he's going to be unhappy—and he would be correct.' He also recommended paying commissions on the 15th of the month for the previous month's events, in addition to a regular salary at the start of the month. Ramsey wrapped it up with some encouragement. 'You've got a fun little business going,' he said. 'I hope it grows for you and you get 10 of him and they're all making money off the bottom and you're making money off the top.' Read Next: Can you guess how many retire with a $5,000,000 nest egg? .Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article A 22-Year-Old CEO Asks Dave Ramsey What To Do About An Employee Asking For Ownership. His Advice After A Sincere Laugh? 'Hit The Road, Jack' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
04-06-2025
- Business
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How To Save Hundreds per Month With 3 Steps, According To Ramit Sethi
When paring down a budget, some might think that means eliminating anything fun — especially when there's debt to pay off. Entrepreneur and author of 'I Will Teach You to Be Rich' Ramit Sethi insists that's not true, even if a consumer has unpaid debt. In a recent video Sethi posted on his Instagram, he said, 'I believe in living a rich life today and living a rich life tomorrow, even if you have debt.' His video went on to detail three ways that consumers can find some wiggle room in their budgets. These are things that Sethi said most people 'won't even miss.' Read on to find out how to find these hidden savings. Read Next: Check Out: Sethi's first suggestion was for people to look at their subscriptions and see if there are any they wouldn't mind canceling — or didn't even remember they were subscribed to. According to a recent statistic from Self, around 85% of people have at least one paid subscription that they don't use every month. This comes out to about $32 a month, or almost $400 a year. This could be a tremendous savings that consumers can net without changing their routine at all. Check bank and credit card statements for recurring charges during an entire month to see every subscription, then determine if there are any that can get the boot. See More: Sethi recommended that individuals call their insurance companies (car, renters', pet, etc.) and say 'I'm shopping around for a better rate. What can you do for me?' If the insurance company is unable to offer a better deal, switch carriers. Most consumers who switched carriers in the past five years had a median savings of $461, according to Consumer Reports. It's a good idea to look into competitors' rates about every six months or so to make sure you have the lowest price. Impulse spending can be anything from a DoorDash order or a cute shirt in the mall. Americans spend about $150 in impulse purchases every month, per a post from Ramsey Solutions. Keeping those to a minimum can save consumers more than $1,000 a year. These types of purchases are typically fueled by emotions. Maybe shoppers will splurge on a cookie during a bad day, or buy a magazine in a checkout line because the cashier is taking a long time. It's important to determine the reason behind these purchases and see if there are other ways to solve that problem. Finding free or cheaper ways to fill time or cheer someone up is key to spending less on impulse. More From GOBankingRates 6 Big Shakeups Coming to Social Security in 2025 6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable Alternatives This article originally appeared on How To Save Hundreds per Month With 3 Steps, According To Ramit Sethi Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
