Author: Rebecca Holland

Danielle Arnone, a Utah mother of two, has seen her credit score plunge 150 points this year because she and her husband were unable to keep up with the cost of living and pay back their federal student loans at the same time.

“It was shocking — made us sick to our stomachs,” she told KUTV 2 News in a story published May 28. “The cost of everything — preschool, groceries, gas — it can be overwhelming. Now this? It’s just a gray cloud that’s always there.”

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Arnone and her husband took advantage of the pause on federal student loan payments that began in March 2020. The pause ended in September 2023, however, the previous administration allowed for a one-year grace period to resume payments. Starting in January, past-due accounts were once again being reported to credit bureaus. On May 5, the government resumed collecting defaulted student loan payments.

As a result, on top of taking a hit to their credit scores, millions of borrowers could face wage garnishments, withheld tax refunds and reduced Social Security benefits if loans continue to go unpaid. Here’s what you can do if you find yourself in this boat.

The state of federal student loans and borrowers

The U.S. Department of Education (ED) released some dismal data in April. More than 5 million student loan borrowers had not made a payment in over a year and were in default. A further 4 million borrowers were in late-stage delinquency — meaning that within a few months, nearly 10 million borrowers could find themselves defaulting on their loans.

The ED also noted that 42.7 million borrowers owed more than $1.6 trillion, and only 38% of them were up to date on their student loan payments.

During his term, President Joe Biden sought student loan forgiveness for millions of borrowers, however, many of his initiatives were rejected by the courts. This left many borrowers — who were already struggling with the cost of living — confused and unsure what to do about their payments once the pause was lifted.

“I think some saw the pause as a bit of extra cash, but others saw it as a lifeline — they didn’t know how they were going to make the payments to begin with,” Tara Alderete of Money Management International told KUTV 2 News.

One thing appears certain — student loan borrowers shouldn’t expect any charity under President Donald Trump.

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“There will not be any mass loan forgiveness,” the ED said in its April news release.

Borrowers may be subject to collection activities only after receiving “sufficient notice” and opportunity to repay their loans, according to the ED.

How to deal with defaulted student loans

Borrowers who are in default may want to start making payments right away to limit any financial impacts. If you’re not sure whether you are in default on your loans, you can check StudentAid.gov for more information on your loan status.

Those who aren’t able to budget for their student loans can explore repayment or consolidation options through the U.S. Department of Education.

Beware of refinancing loans through private lenders or using credit cards, which can come with high interest rates and push you further into debt.

If you’re unsure how to move forward with reducing your debt, don’t be afraid to seek help from a nonprofit agency. Expert advice can help you feel more in control of your budget and your finances.

There are options and help available, even if you’ve been avoiding your student loan payments for years.

“It’s going to be overwhelming, but we’ll figure it out. We have to,” said Arnone.

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Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Dawn Cooper, a veteran bus driver with the Southeastern Pennsylvania Transit Authority (SEPTA), says she’s seen a lot in 25 years, but “just when you think that’s it, you see some more.”

Fare evaders are face-to-face with drivers, so when they refuse to pay, Cooper just lets them ride. “I don’t want any situations, any confrontation,” she says.

And Cooper believes evasion happens “every day” on board SEPTA’s buses and by her estimate, more than half of the riders do not pay.

Her bosses at the transit authority agree — their latest report suggests fare evasion costs their system “millions of dollars each year.” Now they’re cracking down.

Local CBS News in Philadelphia followed the new fare evasion task force. In the hour that the reporters rode alongside officers on the metro bus route, 10 people were turned away for not paying their fare. Many others were reminded by officers to pay as they boarded.

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Fare evasion in the City of Brotherly Love

Fare evasion could cost as much as $30 million per year according to Chief Chuck Lawson of the SEPTA Transit Police. Since spring 2024, his officers have had approval to begin issuing criminal citations for fare evasion. The efforts are already paying off: Transit Police have issued nearly 6,000 citations in that time and are authorized to issue fines up to $300. The task force also has a knock-on benefit for local police. SEPTA reports their citations have led to the arrest of 700 people with existing warrants for other crimes, also citing a 33% drop in serious crime in the transit network — the largest one-year decrease in their history.

While the fines are returning some money to a cash-starved system, it’s unlikely to make up the $213 million budget shortfall the transit authority is projecting. As a result, fare hikes and cuts to some less popular routes will be rolling out as well.

Fare evasion across the U.S.

What’s happening in southeastern Pennsylvania is part of a larger trend across the country. David Leonhardt of the New York Times reported that when he was a young man in the New York of the 80s, fare evasion seemed normal. During the city’s crackdown on crime in the 90s, fare evasion began to become less and less common, but now he sees a rise again. A separate Times article similarly found that 48% of riders on the city’s buses fail to pay.

And, the MTA reported losing an estimated $690 million in unpaid fares and tolls in 2022. They were able to force down subway fare evasion by 26% between 2022 and 2024 through a number of measures, including updating fare gates at some transit stations and adding additional enforcement officers.

Fare evasion may seem like a simple petty crime, but it has a ripple effect on transit systems and the economy, as a whole. Strong transit systems support a healthy economy, as the American Public Transportation Association (APTA) reports. For each billion dollar investment in transit systems, 50,000 jobs are created in the U.S. and there is a 5-to-1 economic return produced by long-term investment in public transit, according to their findings.

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Fare evasion and violent crime

Fare evasion is also linked to more serious crimes. Janno Lieber, chairman and CEO of New York’s Metropolitan Transportation Authority, explained that "not every fare evader is a criminal" but virtually all criminals "evaded the fare."

In other words, fare evasion is worth a more serious approach because of its ties to other types of crime. Kevin Scott, general manager for security at Bi-State Development in St. Louis, told CBS News that the "security gates" and 1,200 cameras his transit system recently installed are less about catching fare-skippers than improving overall safety in the system.

"We’ve seen it time and again where something plays out on the street, then everybody runs for the MetroLink platform and that’s where the shooting happens or that’s where the stabbing happens," Scott said. "We’re really trying to impact the overall perception that the system is unsafe. We could have taken five or six steps forward with security, but if we have an incident play out, now we’re three or four steps back."

CBS reported that assaults and homicides on public transit nearly doubled between 2011 and 2023 and there is a growing perception across the country that public transit is unsafe. This trend is especially troubling for transit systems that saw huge dips in ridership during the pandemic and are struggling to regain riders and recover from the lost revenue during those years.

Rethinking transit policing

While making transit safer is obviously a benefit for the whole community, many experts and critics warn that increased policing may not be the right solution for improving mass transit systems in the states.

For example, Human Rights Watch reports that increased policing on transit systems has led to violence against transit officers, as well as shootings, injuries, deportations and deaths. They also reported that costly upgrades to fare gates don’t always deter fare evasions. New York City’s new fare gates reportedly can be opened with the swipe of a hand and Oakland’s $90 million fare gates see riders tailgating or wedging in after a paying customer.

Fare evasion officers are also more likely to target poorer neighborhoods and issue fines to people of color. In New York, for example, police fare enforcement actions were more than twice as common in low income neighborhoods between 2017 and 2018. Ana Levy also reported in her New York Times article that Black and Latinx people made up 73% of those arrested and issued summons for fare evasion in 2022.

Instead of increased policing, Human Rights Watch recommends full public funding for transit systems and they cite Luxembourg as an example of nationwide free public transit.

For regular transit riders, this crackdown on fare evasion across the country can mean increased pressure on their budgets, as the cost of living in other areas also continues to rise. The APTA reports that 55% of transit riders earn less than $50,000 per year — a figure that may mean fare evasion fines could have a serious impact on wallets. For now, riders should be prepared to pay as officials look to enforcement to address concerns.

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Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Consider this scenario: A 25-year-old woman with epilepsy currently relies on friends, family and Uber lifts not only to get to work but around more generally, in a city where transit is limited and unreliable.

To gain independence, she wants to move to a rental apartment within walking distance of her work. The catch? The rent is $1,600 per month — almost 50% of her $50,000 salary.

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On the upside, her transportation costs would be lower if she moves closer to work, and she’s willing to make sacrifices to her discretionary spending to do it.

So is moving into this expensive apartment worth it for the greater independence she will gain?

The cost of living for young people with disabilities

Unfortunately, she’s not alone in grappling with this dilemma. Many Americans with disabilities pay more to enjoy the same standard of living as peers without disabilities.

According to the National Disability Institute, 20 million working-age Americans live with some form of disability and must spend 28% more on average to achieve the same standard of living as their counterparts without disabilities.

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Compounding the cost-of-living challenge for Gen Zers is a lack of affordable housing. Younger Americans are spending more on housing than previous generations.

The New York Times reports that, as of 2022, 5.2 million Gen Zers were spending 40% of their income on rent.

On the upside, if the character in our scenario moves, she would save on transportation costs, and she’s already ahead because she doesn’t have to worry about the cost of buying a car and ongoing maintenance and insurance costs.

Newsweek reports that two in every five Americans spend 20% of their monthly income on their vehicles, a figure that may rise as tariffs take hold.

Stress-testing your budget

The first step toward determining whether a new apartment is affordable is to write out a budget.

The classic 50/30/20 budget breakdown is a good starting point. Here’s what that looks like:

• 50% of your income on essentials, including a maximum 30% of your pre-tax income on housing
• 30% of your income on discretionary spending, including travel, hobbies and dining out
• 20% of your income towards savings, or savings and debt payments.

Then examine how you’re actually spending your money — now, not in the future. This will help you set a new budget that’s realistic.

To do this, gather up your bank and credit card statements from the last year and work out what you’re currently spending on essentials, discretionary spending and savings. You can even run a stress test in which you live on your new budget for a month to see if it’s doable.

Put away the extra money that would go towards “rent” into an emergency fund.

If you find it’s possible to get through the month on your proposed budget without too much stress or a feeling that you’re missing out on having fun, then the costly apartment may be worth it.

Make sure your new budget allows you to continue saving towards an emergency fund and that it doesn’t require you to use credit cards to cover expenses. Pay down debts so unexpected expenses don’t leave you scrambling to cover your bills at the end of the month.

Finally, if you’re going to spend more on your home, try to get as much enjoyment out of it as possible.

Since you’ll likely be trimming your budget for entertainment and dining out, make a point of moving into a place where you can entertain at home.

If you like to host dinner parties or board-game nights, invest in a good dining table that your friends can gather around. If you like to watch sports or play video games, try to get a comfortable couch and chairs, and a large, sturdy coffee table.

If outdoor space is important, prioritize a place with a balcony, access to a backyard, or one situated near a park.

Whatever your idea of fun is, be sure the sacrifice in your disposable income is worth it and doesn’t eat into your quality of life in ways you didn’t expect.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Joan Madden-Ceballos didn’t make headlines for volunteering or falling victim to a crime. Instead, she caught the attention of Boston 25 News for something that says a lot about about America today: at 70, she’s still on the job.

Madden-Ceballos is among the growing number of Americans 65 and older who are staying in the workforce into their golden years.

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Working past the traditional retirement age of 65 isn’t new — especially as life expectancy increases — but the number of Americans remaining on the job continues to rise, largely due to economic hardship.

The Bureau of Labor Statistics reports that between 2003 and 2023, the number of people over 55 still in the workforce increased by nearly 74%. Today, more than 1 in 5 workers are 55 or older. For those 75 and older, the number has grown by a record 113%.

Why older adults keep working

People have a variety of reasons for working beyond retirement age, but some clear trends have emerged.

One of the more positive reasons is that Americans are living longer — and healthier — than previous generations. According to the Centers for Disease Control and Prevention (CDC), the average life expectancy for a 65-year-old has increased by just over a year since 2000, now nearing 84.

Financial expert Suze Orman has even cautioned retirees-to-be to plan for living into their 90s. That means a retirement fund at 65 might need to last nearly a third of a person’s lifetime — a long time to go without income.

For many, work also provides purpose and mental stimulation. The 2024 University of Michigan National Poll on Healthy Aging found that nearly half of older adults said their work “gave them a sense of purpose and kept their brains sharp”. Nine in 10 said it helped their overall well-being.

Nicole Maestas, a professor at Harvard Medical School, points to another factor: today’s information economy. Jobs are less physically demanding than they were for previous generations, making it easier for older adults to stay employed.

Still, it comes down to money for most people.

That same University of Michigan poll found that nearly 78% of older workers said financial stability was the main reason they continued working. Others said they wanted to boost their savings or maintain access to health insurance.

A 2024 AARP survey found that about 66% of adults over 50 don’t feel they’ve saved enough to retire securely. According to a 2023 Gallup poll, only 2 in 5 workers are on track to retire comfortably.

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The financial landscape has shifted

One of the biggest changes facing today’s retirees compared t their parents’ generation: pensions are increasingly rare.

As of 2020, more than 85 million Americans were enrolled in defined contribution plans like 401(k)s. By contrast, only 12 million were in traditional definition benefit pension programs. That makes it harder to replace working income after retirement.

Researchers from the Georgetown Center for Retirement Initiatives found that today’s retirees are spending their savings faster than previous generations. The culprits? Rising costs of living, high health care expenses and increased longevity.

Inflation is also a major factor. Consumer Affairs reports that the consumer price index jumped 586% between 1973 and 2023. Combined with wage stagnation, and saving for retirement becomes even more difficult

In 2024, the Government Accountability Office reported that a third of households with a worker 55 or older had no employer-sponsored retirement plan at all. Half of all households had no retirement savings whatsoever.

Trouble ahead for Social security

Another looming concern is Social Security. It is projected to deplete its trust fund by 2034, at which point it would only be able to pay about 77% of scheduled benefits through incoming payroll taxes.

“Far too many people are one crisis away from economic insecurity," said Ramsey Alwin, president and chief executive of the National Council on Aging. A 2022 University of Massachusetts study supports that view, showing that half of single older adults and one in five couples struggle to meet their basic needs.

The Pension Research Council at Wharton has suggested reforms to help both current and future retirees. A key issue is access: almost 57 million Americans don’t have a workplace retirement savings plan. Workers of color and lower-income workers are disproportionately affected — over-represented in this group, with 53% of Blacks and 64% of Hispanics without access, compared to 42% of White workers. For low-income workers, those numbers jump to between 64 and 79%.

Wharton researchers recommend expanding access to retirement plans, as well as improved portability of 401(k) and IRA plans, to encourage people to keep saving as they change careers. They also recommend government programs to match contributions for low-income workers, allowing for more equal access to retirement, letting America’s golden years be ones of leisure and not full-time work.

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

A trio in Columbus, Ohio, are awaiting their chance to enter a plea to fraud charges after allegedly bilking more than $600,000 from the Supplemental Nutrition Assistance Program (SNAP) benefit program.

It’s not yet known how the group’s scheme worked, but the sweet tooths have been collaborating since July 2024, using stolen SNAP benefit cards to buy thousands of dollars worth of candy, soda, Red Bull and other junk food.

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Ionut Bizga, Doina Maria Bacelan, and Juan Carlos Pagan Hernandez are charged with several counts of criminal activities described as a "pattern of corrupt activity and food stamp fraud," according to an Ohio Department of Public Safety spokesperson, in an interview with WHIO-TV.

The stolen goods were placed in Columbus storage units before being shipped out of state, according to Newsweek. Investigators seized card skimmers, cloned gift cards, credit cards, laptops and cell phones. They are also working to identify further suspects in the case.

While Ohio government officials are working hard to crack down on SNAP fraud, one question remains: Are professional scammers stealing your tax dollars from the program?

A year-long investigation

Bizga first became known to Columbus Police in July 2024 when they cited him for crashing into a city fire hydrant. He was rushed to the hospital, where it was learned that he had no identification. He had Texas plates on his minivan, and an additional set of plates for Virginia was found in the trunk. Bizga was found guilty of driving without a licence and fined $300.

One month later, the Ohio Investigative Unit investigated a tip about stolen SNAP benefits and fake electronic benefit transfer (EBT) transactions were received.

Bizga appeared in court again in May 2025, but the case was postponed until Bizga and Bacelan could be provided with a Romanian interpreter. Bizga is also subject to an Immigration and Customs Enforcement hold — meaning he was held for an additional 48 hours past his release — according to reports from his initial court appearance.

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How widespread is SNAP fraud?

The Ohio Department of Job and Family Services told ABC News 6 On Your Side that more than $17 million in SNAP benefits have been stolen in the state since summer 2023.

The most recent federal-level study of SNAP found that between 2015 and 2017, benefit trafficking amounted to approximately $1.27 billion in lost funds. The U.S. Government Accountability Office reported that $10.5 billion of the SNAP program’s overall $90.1 billion budget for 2023 was paid improperly, meaning that people received more benefits than they qualified for.

Theft of the program’s EBT cards is the biggest issue for regulators. Between 2023 and 2024, states were directed to use $150 million of federal tax dollars to reimburse SNAP recipients who were victims of skimming, card cloning and other types of fraud.

The situation has caught the attention of Tristan Rader, the representative of the 13th District in the Ohio House of Representatives.

"Tens of thousands of Ohio families have had their SNAP benefits stolen, leaving them without food and putting more pressure on food banks,” he wrote in a LinkedIn post. “I am working to stop this fraud and make sure help gets to those who need it — because no one should go hungry due to a broken system."

Preventing SNAP fraud

The USDA is in the process of upgrading swipe cards with chipped ones to prevent EBT card theft.

In 2023, the Identity Theft Resource Center, a nonprofit organization dedicated to reducing fraud, found that SNAP benefits theft accounted for 11% of all government benefits fraud in identity theft cases.

Software company Propel surveyed 1,700 victims of EBT theft and found that half of the victims didn’t know their benefits were stolen. Additionally, 44% of those reported that they had to borrow money or go into debt to buy food after their benefits were gone.

In addition to upgrading to more secure EBT cards, the USDA has also released the [SNAP Fraud Framework] to establish best practices for detecting potential fraud. This framework will likely come under more scrutiny as charges were laid in a landmark fraud and bribery scheme involving a longtime USDA employee in May.

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

The Sweet Escape Cake Company in Indianapolis is warning other small businesses of new scam tactics after they were duped by a fraudster pretending to be connected to the Indiana Pacers.

Styles McCorkle, a Sweet Escape employee, told local news station Fox 59 that the business was contacted by email, with the scammer pretending to be Dean Heaviland, the vice president of operations for Pacers Sports and Entertainment. As their company had done work for the Pacers before, and other teams such as the Fever and Indianapolis Colts, the email didn’t seem suspicious.

The scammer offered the company a vendor booth at Game 4, and Sweet Escape’s owner reports that between labor and supplies, they spent $4,000 on preparing, only to find they got duped.

Here’s how Sweet Escape was duped, and how you can avoid similar scams.

NBA finals fever sweeps the city

The Indianapolis Pacers experienced an unprecedented surge in ticket demand following their remarkable showing in the NBA finals. On June 19, the team delivered a memorable performance in Game 6, which led to the first Game 7 finals matchup in nearly ten years. Despite their valiant effort, the Pacers ultimately fell short against the Oklahoma City Thunder in a closely contested championship decider.

The opportunity to have a booth at a major game was too good to pass up, according to Sweet Escape employees. What’s more, the scammer offered the booth for only $400.

“So, we were super excited for an opportunity like this,” McCorkle said. “So next day, we take that opportunity and decide we are going to go through with it, paid our invoice for the spot and everything, nothing was too inconvenient.”

Upon replying to the email to inquire about their booth location, they received a bounce-back notification. They soon realized they had fallen victim to a scam perpetrated by someone impersonating Dean Heaviland. The business had already prepared numerous Pacers-themed treats, adding significant strain to their already busy schedule of Father’s Day orders.

“I came into work the next day, I was devastated,” McCorkle said. “Like we were really excited to have this opportunity to put our face out there and be in front of Gainbridge Fieldhouse.”

A sweet ending

The disappointment at Sweet Escape didn’t last long. Upon learning about the situation, Pacers executives stepped in and purchased all the Game 4 products that had been prepared. This generous move ensured the small, family-owned bakery wouldn’t suffer any financial losses.

“It gives me goosebumps because when my dad told me the next day, ‘Hey, by the way, I just got off the phone, Megan said they are going to buy everything,’ it was like a weight lifted off the chest and none of it was in vain,” McCorkle said. “We even got refunded for our initial deposit so, it was only gain.”

“For an organization as big as the Pacers to care about a small business like us, and have that attention, like ‘Hey we understand the situation, we like you guys already, so we are going to take this off of your hands, like whoever did the scam, thank you for that,” McCorkle said. “Like, it worked out for us in the end.”

How to spot scams

Today’s fraudsters employ increasingly advanced techniques. In this incident, the scammer exploited Sweet Escape’s existing relationship with the Pacers to appear legitimate. According to the Federal Trade Commission (FTC), criminals frequently impersonate trusted contacts, making it essential to verify email addresses against previous communications from your clients or business partners. To confirm someone’s identity, consider requesting a phone conversation or in-person meeting to ensure you’re communicating with an authentic representative.

The FTC also advises small business owners that scammers will often ask for payment through unusual means, such as wire transfers, cryptocurrency, or gift cards. Asking for payment in this way is a red flag, especially from an established company.

Scammers create a false sense of urgency to force quick decisions. In the Sweet Escape incident, the fraudster leveraged the upcoming Game 4 as pressure, possibly claiming the vendor booth would be reassigned if the team didn’t act immediately. This pressure tactic prevents victims from carefully considering the situation. In contrast, legitimate business relationships typically provide reasonable timeframes for decision-making without applying excessive pressure.

To protect your small business from scams, it’s essential to stay informed about the latest fraud prevention guidance from government agencies and ensure all staff members receive comprehensive training on recognizing scam attempts. Many businesses that fall victim to fraudsters don’t recover as successfully as Sweet Escape did.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

A record number of people are reaching retirement age. Each day, more than 11,200 Americans turn 65 — adding up to 4.1 million Americans hitting retirement age per year.

And yet very few of them feel they have enough saved to last the rest of their lives. The Federal Reserve reports that the reality is that most Americans aged 65 to 75 have approximately $426,000 in their 401(k).

According to a Northwestern Mutual survey, most Americans believe they’d need closer to $1.46 million for a comfortable retirement.

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Experts disagree. Suze Orman, for example, called $2 million in retirement savings “chump change”.

So $2 million is a high bar. But according to a recent analysis from GOBankingRates, it should be enough to last you in all but three states: Hawaii, Massachusetts, and California.

Here are some states where a $2-million nest egg will make you feel like a millionaire in retirement — and states you may want to avoid if you have a more modest retirement nest egg.

The rankings

GOBankingRates ranked all the states based on how long $2 million would last in retirement. They looked at average Social Security payouts and the average annual expenditure for Americans 65 and older (based on the 2023 Bureau of Labor Statistics Consumer Expenditure Survey).

Then they compared that data to each state’s overall cost of living to determine how many years retirees could make $2 million last.

The state where it would last the longest?

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Virginia, where a $2-million nest egg would last a whopping 71.93 years. Average annual expenses in that state would be $27,803 a year, after accounting for Social Security income.

Unfortunately, living in West Virginia post-retirement has some downsides. The state has some of the worst health-care outcomes in the U.S.. Other retiree-friendly states on the list include Kansas, Mississippi and Oklahoma, with $2 million projected to last up to 69 years.

In contrast, $2 million would not last even half as much in California, Massachusetts and Hawaii, which ranked at the bottom of the list for long-term affordability. The $2-million nest egg would last about 31 years in California and Massachusetts and Hawaii 22.75 years.

In other words, if you retire at 65 in the Aloha state, your money would likely last until you’re 88, but no longer.

That may not seem so bad, but this analysis didn’t take into account high health-care costs, so your $2 million nest egg may shrink more quickly than the data suggests.

Deciding where to live in retirement

Choosing when, where and how to retire is an individual decision based on multiple variables. Here are some factors to consider as you contemplate areas to live in retirement.

• Local cost of living, This varies across the country, as GOBankingRates’ analysis shows.
• Housing supply and prices. This is a major consideration if you’re planning to move states or downsize to a smaller home after you retire. Hawaii, like many states, is facing a housing supply crisis, while Massachusetts and California also report low levels of housing supply, driving up the cost of living in these states.
• Public services. For example, you will likely need health facilities and use public transportation more as you age.
• Convenience and amenities. Are there supermarkets, pharmacies and gas stations within an easy distance? Community centres? Restaurants and theatres? As you age, proximity matters, and you’ll be less likely to want to cope with an inconvenience in your living arrangements.

Whether or not you have $2 million, it pays to be realistic about your fixed income and make wise decisions about where to retire. That way you can ensure that your golden years are comfortable ones.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Relationship patterns in the U.S. are changing. As of 2023, 9.1% of the population was cohabiting without being married, up from only 3.7% in 1996. With more unmarried couples opting to have children and buy homes together, those living in these types of partnerships should be aware that, while values have changed, the law in many cases has not kept up with the times.

Consider this scenario: You’re 29 years old, planning to buy your dream home with your partner. You’ve been living together for several years, and have a child together. While they have been saving up for a down payment, you have been doing most of the childcare, and diligently paying off your student loans to reduce your overall debt load in the relationship. You’ve found a house you love, but then your partner drops the bombshell: They believe that since they’re the one putting the upfront payment on the house, only their name should be on the deed. They still expect you to split the mortgage 50/50. What should you do?

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Property laws in the U.S.

Your rights as part of an unmarried couple will vary depending on which state in the country you call home. While many states recognize common law marriage, the rules around property in these unions vary.

For example, in states that recognize common law marriages to some extent, the fact that you have cohabited for several years and demonstrated the capacity and intent to marry by getting engaged would make you common law spouses. This would give you the right to make a legal claim on the property in the event of a break-up, or the death of your fiancé. You would also have the right to file for divorce.

Even if you live in a state like California that does not recognize common law unions, the fact that you share a child, equally contribute to living expenses, and are engaged would give you a strong legal case to make a claim on the home even if your name was not on the deed. However, you should know that suing your former spouse could be a lengthy and expensive process in court.

For most couples that share children and have been cohabiting for years, marriage is still the best way to protect each partner’s legal rights in the event of the relationship ending, and also in the event of the death of either party.

If you are considering buying a house together or significantly contributing to mortgage payments and other living expenses, it’s a bad sign if your partner is looking for ways to block your claim to ownership of the property, especially if it is your primary or only residence. In the scenario outlined above, this is a major indicator that your partner is not financially trustworthy.

Also, while the childcare you’ve provided isn’t paid work in the traditional sense, it does hold value, and this should be acknowledged in the partnership. While you hypothetically could have gone back to work to earn a traditional paycheck, you then might have had to find paid childcare.

Advice for new couples

For couples who intend to cohabitate or have not established a common law marriage but will be sharing the cost of a mortgage, it’s essential that both names appear on the deed to the home. If this is not possible, you can opt to sign a cohabitation agreement that outlines the division of your property if you choose to part.

Before you enter into any major purchases with your partner, be clear on your rights. As an unmarried person, your partner’s finances and property remain theirs, even if they buy a home while you’re together, and you contribute significantly to the cost. And if you have any doubts about your partner’s intentions or the financial repercussions for you if the relationship ends, don’t contribute to the mortgage or down payment.

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Financial abuse

A partner who is trying to block you from exercising your legitimate claim to the home you share or plan to share may be showing early signs of abusive tendencies. Financial abuse is a control tactic where an abuser will intentionally manipulate or control a victim’s access to money, their financial autonomy, withhold financial information that affects the victim, or block them from accessing any financial advice, products or property that would give them freedom to leave the relationship. The National Network to End Domestic Violence says that financial abuse happens in 99% of domestic abuse cases.

In the case of the couple who has cohabited for several years and share a child, one partner attempting to block the other from property rights that would normally be theirs in a marriage is definitely a flag. Regardless of the reasons, unmarried couples are best advised to have clear legal agreements about major joint property, and to maintain separate bank accounts so that neither partner will be left without an emergency fund if the relationship ends.

Financial self-care

Whether you’re married, common-law, or in a partnership, maintaining a separate emergency fund is an important step to safeguard yourself, especially if you’re a woman. Studies show that the gender pay gap persists, with white women earning 83% of what men earned in 2022, and the gap increasing for women of color. In the case of a stay-at-home mom, leaving the workforce to be a caregiver is a significant financial pitfall, costing women $150,000 in wages on average.

Contributing three to six months of expenses to an emergency fund can help get you on your feet quickly if you need to leave your relationship for any reason. You can open a high yield savings account separate from any joint accounts you hold with your partner, and set a budget for monthly contributions.

In the case of our example couple, it may be advisable to seek financial counselling to help outline their money goals in the relationship and future marriage. A couples therapist may also help to unravel the miscommunication and mismatched expectations for their future — financial or otherwise.

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.