Dive into car stereo hacks and the benefits of auto-IRAs for retirement savings. Discover the fluctuating world of travel discounts, including 'Travel Tuesday' deals and the controversy surrounding Spirit Airlines and skip lagging. Navigate the potential pitfalls of sports betting on personal finance, and learn about shrinkflation’s impact on shopping habits. Explore the rise of secondhand gifting and the joys of thoughtful presents that resonate with individual tastes. Get ready for practical insights to enhance your financial journey!
The introduction of auto-IRAs is helping Americans save for retirement more effectively by facilitating automatic contributions without requiring additional effort.
Consumers should exercise caution with vacation clubs, as they often impose high costs for memberships that provide limited value and can lead to financial regret.
Deep dives
The Importance of Automatic IRAs
Many Americans lack access to retirement accounts, which raises concerns about future savings. To tackle this issue, some states have introduced automatic IRAs that require employers without 401(k) plans to offer these accounts instead. With automatic contributions typically ranging from 3% to 5%, employees can start saving for retirement without needing to take any extra steps. This initiative has led to significant investment, with approximately $1.7 billion already deposited in these accounts, illustrating its potential to help individuals save more effectively.
The Risks of Vacation Clubs
Consumers should be cautious about vacation clubs, which often disguise themselves as legitimate alternatives to timeshares. A report highlighted that individuals tend to pay thousands of dollars for memberships that ultimately provide little value. The allure of brand recognition, such as that from major hotel chains, combined with high-pressure sales tactics, often leads to regrettable purchases. These clubs typically offer access to discounts rather than ownership of real estate, rendering many memberships nearly worthless due to restrictive blackout dates and unfulfilled promises.
Navigating the Landscape of Travel Deals
As retailers prepare for holiday shopping, significant discounts are expected, especially for travel-related bookings. Travel Tuesday has expanded beyond a single day, offering numerous deals leading up to and following Thanksgiving. The most favorable discounts are often found on flights and cruise packages, which can help travelers stretch their budgets. However, caution is advised around certain promotions, like vacation clubs, which can sound appealing yet prove to be detrimental financial commitments.
The Impact of Shrinkflation on Consumer Choices
Shrinkflation, the practice of reducing product sizes while maintaining prices, continues to affect consumer purchasing decisions. Companies like Tropicana have faced backlash after reducing product sizes, resulting in noticeably decreased sales as shoppers seek better value. Interestingly, such changes have prompted consumers to explore alternative brands, reflecting a trend toward more informed shopping habits. While shrinkflation is unlikely to disappear, consumers are becoming more vigilant, adjusting their choices based on perceived value and the price-per-serving of products.
Time for a Friday Flight- our little sampling of the week’s financial news and what it means for your personal finances. There are a lot of headlines out there, but we boil them down to specific takeaways that will allow you to kick off the weekend informed and help you to get ahead with your money. In this episode we explain some relevant and helpful stories like: car stereo hacks, auto IRAs, abysmal hedge fund returns, Travel Tuesday, unlimited vacation clubs, gave up the Spirit, skiplagging to save, sports betting problems, no thanks Tropicana, retail return hassle, deferred interest on store cards, and the rise of second hand gifting.
Want more How To Money in your life? Here are some additional ways to get ahead with your personal finances:
Knowing your ‘money gear’ is a crucial part of your personal finance journey. Start here.
Sign up for the weekly HTM newsletter. It’s fun, free, & practical.
Find the best credit card for you with our new credit card tool!
Massively reduce your cell phone bill each month by switching to a discount provider like Mint Mobile.
And please help us to spread the word by letting friends and family know about How to Money! Hit the share button, subscribe if you’re not already a regular listener, and give us a quick review in Apple Podcasts or wherever you get your podcasts. Help us to change the conversation around personal finance and get more people doing smart things with their money. Have an awesome weekend!