S4-13: Allowance for Kids and December Fed Meeting

Questions about President Biden's student loan forgiveness plan were answered, with Meghan explaining the recent history of student loan forbearance and various forgiveness proposals. They clarified that while the Supreme Court ruled the President did not have the legal authority to unilaterally authorize student loan forgiveness, there have been announcements of student loan forgiveness through existing programs at the Department of Education.

Meghan also explained the concept of income-driven repayment (IDR) and public service loan forgiveness programs (PSLF), noting that these legally authorized programs provide debt relief to those who qualify. They highlighted recent loan forgiveness announced last week that benefited approximately 80,000 borrowers, amounting to $4.8 billion in student loan debt, and suggested those who may have been denied in the past revisit these programs.

Meghan shared their views on allowance for kids, emphasizing its role in teaching essential lessons about money. They suggested that an allowance should be earned through completing household chores and should not just be a given. Meghan also stressed the importance of teaching children about the value of money, encouraging them to save and experience making financial decisions. They believe that allowing children to make mistakes with small amounts of money can prevent larger mistakes in the future. Meghan also highlighted the need to start teaching these lessons at a young age as older children's financial decisions now have significant implications later in life.

Related Posts: 4 Simple Money Lessons All Kids Should Know and S4-11: Teaching Kids the Value of Money & Budgeting Resources

Meghan discussed the various costs associated with car ownership, emphasizing the surprise many people experience when they discover that some states impose annual property taxes on cars. They shared their personal experience living in Connecticut, where they and their husband receive three property tax bills annually, including one for each of their cars. Meghan explained that these taxes are not included in escrow like home taxes often are, and can present a significant budget challenge for some. They also mentioned the additional costs of registration fees and annual emissions tests.

Meghan discussed the concept of tokenization in finance, explaining that it involves buying a token that mirrors the performance of an underlying asset, allowing investors to buy into financial markets at lower price points. They noted that this approach aims to make financial products more accessible to everyday investors. Meghan also discussed potential challenges such as the non-transferability of these tokens and associated fees. They suggested that tokenization aligns with the trend towards the democratization of finance.

Meghan discussed the anticipation surrounding the Federal Reserve's decision on monetary policy, with many expecting no change in interest rates but speculating about future rate cuts. They highlighted the key factors influencing the Fed's decision-making, including inflation and unemployment rates. Meghan also mentioned the release of a report detailing the Fed Board of Governors' economic outlook projections. Meghan concluded by discussing the impact of rising interest rates on the national debt, suggesting it could lead to higher taxes in the future.

Related Post: How Rising Interest on the National Debt Impacts YOUR Family