October is the time of year that sends me searching the internet for facts, figures and fodder for an article examining trends in personal finance. Since it’s the Halloween season, there will be some tricks, some treats and some frightening figures to raise your blood pressure. As always, I hope to both spook you into some positive money moves and tip my cap to your good work.
Here we go.
$10 Billion
My daughter’s text message last week — “This isn’t real is it?” regarding an email purporting to be from the Social Security Administration — sent me looking for this statistic. According to the Federal Trade Commission, fraud losses suffered by consumers topped $10 billion in 2023. Wow. My response to my daughter was, don’t click and don’t call. That’s good advice for the smishing, phishing, vishing and calls you may receive trying to separate you from your personal information. Don’t get tricked.
2.9%
Numbers can deceive, or they can shed light on the bigger picture. Clearly, this number, which reflects the amount of disposable income Americans were saving in July, is low. At the peak of the pandemic, as government relief flowed in and fear reigned, this number was 30+%. Now, I think, it reflects the struggles of households across the country dealing with our current economic conditions. Mentioning USAA’s recommended 10%-15% savings rate may seem tone deaf. However, encouraging you to do what you can and do more when you can is on point. Better times are ahead.
$48K
Over the past 10 years, the average transaction cost for a new car has increased from just more than $30,000 to nearly $50,000. Even with a slight decline in 2024, the upward trend in vehicle prices makes it more and more difficult for consumers. At USAA, our view remains that 60 months should be your target loan length. However, with the average loan running at around 7%, that would equate to a monthly payment of about $950. That’s probably a big chunk of your spending plan. I don’t have a perfect answer for you, but I do know that when you incorporate the total cost of ownership — loan, insurance, taxes, gas and maintenance — the numbers can quickly become scary. Shop and plan carefully.
88%
The Thrift Savings Plan participation rate for members of the military covered by the Blended Retirement System is 88%. That’s a solid participation rate and definitely a treat. However, in 2023, more than 15% of BRS participants still were not contributing the 5% required to get the entire matching contribution from their service — not so sweet. If there’s one constant in the retirement savings game, it’s “leave no matching money on the table.”
91.2%
According to the Education Data Initiative, 91.2% of outstanding student loans are federal loans. That’s a tasty number because federal student loans offer competitive rates, flexibility and the potential to benefit from existing, and any new, forgiveness programs. To ensure a good outcome, always borrow with an eye on your future and your future capacity to pay back any debts you accrue.
As you can see, it’s a mixed bag — some tricks, some treats. Keep saving.
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