Author: Vawn Himmelsbach

A new executive order signed by President Donald Trump calls for an immediate halt to federal funding of NPR and PBS, citing what he calls “biased and partisan news coverage.”

A statement from the White House called the outlets “biased” with “trash that is passed as news.” The order directs the Corporation for Public Broadcasting (CPB) to immediately cease funding of the National Public Radio (NPR) and Public Broadcasting System (PBS).

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The statement accused both organizations of receiving “tens of millions of dollars in taxpayer funds each year to spread radical, woke propaganda disguised as ‘news.’”

Three CPB board members were removed from their role via email, with just two board members remaining. And that executive order has set the wheels in motion on litigation filed by NPR and three Colorado radio stations, who are now suing the president for violating First Amendment rights.

Public broadcasting on the chopping block

The Trump administration listed 24 examples of “biased” coverage, including the production of a film supporting reparations, failure to cover the Hunter Biden laptop story and the suggestion that crime fears are rooted in racism.

Even beloved puppets weren’t spared.

“PBS show Sesame Street partnered with CNN for a town hall aimed at presenting children with a one-sided narrative to ‘address racism’ amid the Black Lives Matter riots,” the statement said.

Patricia Harrison, president and CEO of CPB, responded by saying the organization is not under the president’s authority

“Congress directly authorized and funded CPB to be a private nonprofit corporation wholly independent of the federal government,” she said, adding that when it was created, it specifically prohibited any government agency or official from directing or controlling its operations.

For the 2025 fiscal year, the CPB received $535 million in federal funding, with about 70% going to support local radio and TV stations.

NPR says it receives about 1% of its funding directly from the federal government. Its 246 member institutions receive 8% to 10% of their funds from CPB. PBS and its stations receive about 15% of their revenues from CPB.

“The appropriation for public broadcasting, including NPR and PBS, represents less than 0.0001% of the federal budget,” Katherine Maher, president and CEO of NPR, said in a statement.

Maher said that NPR programming is essential to its 246 member organizations, which operate more than 1,300 stations. These stations generate on average 50% of all public radio listening, despite only accounting for roughly 25% of station programming.

Further exacerbating the situation is Trump’s request of Congress to clawback an additional $1.1 billion it set aside for public broadcasters.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

The impact on smaller communities

For many rural or remote communities, free public broadcasting is often the only source of news.

In southwestern Colorado, for example, many communities are considered “news deserts,” meaning they rely heavily on public broadcasting. According to 9News, the local affiliate KSUT in Ignacio would lose about 19% of its budget, or $333,000, while Colorado Public Radio would lose about 7% or $1.5 million.

Shari Lamki, president and general manager of Pioneer PBS in Granite Falls, Washington, told The Journal the funding — which makes up about 29% of the station’s annual budget — is “irreplaceable.”

In addition to local and national news, local stations provide public safety information and emergency alerts.

“I have no doubt that the loss of this critical funding would impact this region and the safety of our citizens,” Lamki said.

Aside from the inevitable job losses, the disappearance of strong local stations could diminish civic pride, education and cultural connection — all key to neighborhood stability and desirability. Rural and remote communities would be hit hardest.

Funding cuts “would devastate the public safety, educational and local service missions of public media,” Kate Riley, president and CEO of America’s Public Television Stations, said in a statement. She added that more than 160 local TV stations — particularly those in rural areas — serve as a “lifeline in hundreds of communities where there is no other source of local media.”

Cutting this content would also mean less access to free, educational programming like Sesame Street — especially for families who can’t afford paid alternatives. That includes more than 50% of American children who don’t attend preschool.

PBS LearningMedia — a free resource developed by PBS and local stations — serve about 1.5 million educators, students and homeschoolers each month.

“These are services that American families rely on every day,” Riley said. “In fact, according to a recent YouGov survey, 82% of voters — including 72% of Trump voters — said they valued PBS for its children’s programming and educational tools.”

According to a Pew Research Center survey, about 24% of U.S. adults say Congress should cut federal funding from NPR and PBS. But 43% say they should continue receiving government support.

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

California is in the midst of a housing affordability crisis. And whether you are renting or buying, “the salaries that people once strived for often are no longer enough,” reporter Steve Large with CBS News Sacramento said.

Household income levels — based on the latest data from California’s Department of Housing and Community Development — are used to determine eligibility for certain housing assistance programs.

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Some of those income levels at which people qualify for low-income housing assistance are “mind-boggling,” Chelsea Carmack, who recently moved to California, told CBS News Sacramento.

In the Bay Area, for instance, the low-income threshold for individuals is $111,700 in Santa Clara and $109,700 in San Francisco and San Mateo counties.

“I love the weather,” Carmack told Large, adding that when it comes to finding housing, “it’s been very challenging to adapt to the higher cost of living.”

Now her California dream is simply “to survive.” That applies to many Californians.

Why many Californians are cost-burdened

The U.S. Department of Housing and Urban Development considers homeowners cost-burdened if they spend more than 30% of their monthly income on housing, including utilities. They’re severely cost-burdened if that figure tops 50%.

These households “may have difficulty affording necessities such as food, clothing, transportation and medical care,” according to HUD.

In California, where homes cost about twice as much as the typical U.S. home, 41.1% of households were cost-burdened in 2023 — the highest proportion in the country, according to California’s Legislative Analyst’s Office (LAO) housing affordability tracker.

LAO also found that the annual household income needed to qualify for a mortgage on a mid-tier California home in March 2025 was about $234,000 — more than double the state’s 2023 median household income of $96,500.”

If you’re looking for a starter home, you’ll likely need to earn at least $142,000. And if you’re eyeing a two-bedroom place, your monthly payments could be nearly double what you’d pay in rent.

While the situation in California is severe, affordability is an issue across the country. In 2023, 41.8 million people — or 32.8% of all households — were cost-burdened. That includes just over half of renters (51.8%) and nearly a quarter of homeowners (23.3%).

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

How to avoid being cost-burdened

Lenders generally require that your payments for principal, interest, taxes and insurance don’t exceed 25% to 28% of your gross monthly income. Combined with long-term debt, your total obligations usually shouldn’t exceed 33% to 36%.

These are useful limits, but it’s a good idea to stay well below them if you can. Consider your lifestyle and other financial goals.

For example, are you willing to skip dining out to afford a bigger home? Do you want enough room in your budget to max out your 401(k) and save for retirement?

Start with your take-home pay. Build a budget that accounts for your lifestyle, fixed costs and priorities, then decide what you can comfortably afford in housing costs each month. Factor in not just your mortgage but utilities, insurance and maintenance. Make sure you have wiggle room in case rates or costs increase.

Also consider upfront costs like legal fees, moving expenses and renovations. If you’re a first-time buyer, you may also need new furniture and household basics.

Saving for a larger down payment can help reduce your monthly costs. Paying down other debts could free up more income and improve your credit score, which may lower your mortgage rate. And don’t forget an emergency fund — aim to cover three to six months of expenses. That way, if you lose your job or face a financial setback, you can stay afloat without piling on more debt.

What if you’re already cost-burdened?

If you’re already house-poor, start by creating a budget and cutting unnecessary spending. You might need to boost your income with a new job, side gig or second job.

To ease housing costs, consider getting a roommate or renter. Downsizing, refinancing or relocating could also make a big difference. A move to another state might be worth considering if your job and lifestyle allow it.

Some states have high rates of cost-burdened homeowners — like California (31.9%) and New York (28.2%) — while others, such as North Dakota (15.6%) and West Virginia (14.6%) have much lower rates.

That said, avoid frequent moves, which come with added costs. And try to resist lifestyle creep — upgrading your home every time your income rises can trap you in a cycle of spending.

You need a place to live — but you also need to live. Make sure your housing costs align with your overall financial plan so you can still meet your other life goals.

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

Chris from Phoenix is worried about “huge civil unrest” resulting from a collapsed dollar — and he doesn’t think President Donald Trump or billionaire Elon Musk can fix the situation.

The dad of two young daughters called into The Ramsey Show and asked co-hosts George Kamel and Dr. John Delony for their thoughts on how to prepare for a “societal collapse.”

Chris says he’s worried about the growing national debt and that he imagines “in several decades it being unmanageable and perhaps collapsing the dollar.”

Even if Trump and Musk could fix the situation, he doesn’t think it could be “sustained long enough to where you wouldn’t cause huge civil unrest.”

“Do you all personally own any physical precious metals, gems, have visas or even ammunition for the purpose of protecting against societal collapse?” Chris asked during a recent episode of The Ramsey Show.

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Worried about a societal collapse?

Dr. John Delony describes himself as a fellow worrier who’s also concerned about the ballooning national debt, but he doesn’t have any jewels hidden in his backyard (though he does have a deep freezer with about a year’s-worth of meat in it).

Delony also urged Chris to ground himself in the present, because “if you’ve confirmed in your mind” that a tragedy is coming your way in the future, “your body responds as though it’s happening right now,” said Delony. And that takes you away from being in the moment. And this isn’t necessarily helpful.

So what can worriers like Chris do to prepare for the unknowable — and live more in the moment?

Going back to basics

Before getting into precious metals (or bullets), Delony suggests going back to basics. For example, before getting into bio-hacks to improve your longevity, you’ll want to master the basics first — like exercising and eating right.

The same goes for finances. “Do I owe anybody any money?” Delony said. Is his family “actually free?”

Going back to basics means being financially “free.” That’s where good financial habits can help: building up an emergency fund, paying off debts (starting with high-interest debts, like credit card debt and loans) and investing in a diversified portfolio.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Take a news fast

Trying to think through how you’d handle an “epic wild west scenario is a waste of time and energy,” said Delony. “It’s just a distraction from being present with your daughters.”

He suggests taking a “news fast” for the next 60 days — not looking at news or social media — and doing something else instead, like playing with your kids or going out for a hike.

“That’s not me putting my head in the sand,” he said. Rather, it’s about getting out of that “anxious state into a world that I can actually impact, which is my family, my home.”

Gold isn’t always golden

If there was an economic and societal collapse, “gold’s not going to solve it,” said Kamel. “We’d go back to the bartering system, trading for food, water, fuel.”

As Dave Ramsey said, “At no time has gold been used as a medium of exchange in a crashed economy since the Roman Empire.”

Kamel says he doesn’t own any gold and “if we make decisions based on fear, we end up poorer — not richer,” he said, adding that he avoids precious metals and “wouldn’t use it as a hedge against anything.”

The best hedge

One of the greatest hedges — if not the greatest hedge — is “robust, connected relationships with your neighbors,” said Delony. And you “can’t buy that off of Amazon.”

If Chris is truly concerned about the world imploding, “get to know the people around you, have them over for dinner, become friends with them, talk about values.”

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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.

Janelle and her husband, both 68, recently retired and are ready to make the most of their golden years.

They own a condo, which originally they thought would be ideal for retirement. But now, with an active lifestyle, and more time spent babysitting their grandkids, they’re wondering if it actually makes sense to upsize during retirement.

Janelle spent most of her career commuting to an office, while her husband spent long stretches on the road for work. Now that they’re retired, they want to enjoy their home.

Janelle, who recently took up watercolours, wants a space to herself where she can paint, preferably a sunroom overlooking a garden. Her husband wants a ‘man cave’ where he can watch football and Formula One.

A vast majority of Canadians (94%) over 45 agree that aging in place would allow them to maintain independence, comfort and dignity throughout the aging process, according to an Ipsos poll.

For some, that may mean downsizing.

Nearly half (46%) of adults approaching retirement intend to downsize their home within two year of exiting their full-time career, according to a Royal LePage poll. However, 47% of respondents say they will not, which gives some credence to Janelle and her husband’s retirement goals.

But could it make sense for some retired couples? Here’s what Janelle and her husband might want to consider before making a move.

The benefits of upsizing

Upsizing can enhance quality of life, providing more space for family visits or home-based hobbies as many retirees are “realizing their dreams” of spending more time with family and friends and pursuing hobbies.

It allows for flexibility along the continuum of life. It could make sense for multigenerational households, — say, if you’re regularly babysitting your grandchildren — or if your adult children help out with caregiving duties.

It could provide space for a live-in caregiver, or serve as an extra source of income if you rent out a room, basement apartment or garden suite.

The downsides of upsizing

Moving is costly, from selling your home and buying a new one to moving costs themselves, which can range from $600 to $6455, depending on whether you use a professional moving service to relocate either locally or to another province, according to Move Advisor.

You may not net as much from your sale as you hope, meaning you may have to dip into your retirement savings or borrow money to get a bigger home.

Currently, it’s a balanced market nationwide, with only Ontario is considered a buyer’s market according to WOWA. Furthermore, the average home price across Canada has only dipped 1.1% over the past 12 months.

Meanwhile, the prime rate in Canada for a mortgage is 4.95%, thanks to the Bank of Canada’s decision to hold its rate at 2.75%

Even if you buy a big home in a more affordable area, larger homes come with higher utility bills, maintenance and insurance costs.

If you need to hire someone for maintenance and repairs, such as regularly mowing the lawn, you’ll need to account for that in your retirement budget.

While it may be unpleasant to think about, if one spouse dies sooner than expected, or if the grandkids don’t visit as often as you counted on, then a big, empty house could also end up feeling rather lonely.

Key questions to consider before upsizing

Before upsizing, Janelle and her husband may want to answer some key questions:

• Are there other expenses we need to budget for, such as more furniture to fill a larger home?
• Can we afford this while still preserving a financial cushion for emergencies and health care?
• Are we prepared for the extra work (such as maintenance) that comes with a larger home?
• Will we still want or be able to live in a bigger space in 10 to 15 years?
• Is this larger home suitable to an aging-in-place lifestyle (e.g., are there too many stairs)?
• How will this move affect our estate plan and heirs?

Working with a financial advisor to run the numbers can help couples like Janelle and her husband determine whether upsizing would be the right move for their retirement years.

Sources

1. Ipsos: Nearly all Canadians (96%) Aged Forty-Five and Older Say Aging in Place Enables the Preservation of Independence and Dignity (May 16, 2025)

2. Royal LePage: The new real estate reality for retirees: Exiting the workforce with mortgage debt (May 27, 2025)

3. Move Advisor: What’s the Cost of Moving Across Canada?, by Joshua Green (May 27, 2025)

3. WOWA: Canadian Housing Market Report

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

Imagine this scenario: Brenda is 59, single, has no children and is eyeing retirement. The hitch? She still has $81,000 outstanding on her mortgage, so she’s wondering if it makes sense to remain in the workforce until it’s paid off.

If she retires with a mortgage, she’d join a growing share of older Canadians who’ve done so. Roughly three in 10 (29%) citizens planning to exit the workforce in the next two years expect to do so with a mortgage, per a survey by Royal LePage.

In 2024, homeowners aged 55 to 64 had a median mortgage debt of $216,873, while also racking up $302,403 in combined debt, according to Loans Canada.

So, should Brenda keep working to avoid lingering debt in her later years?

Pros and cons of paying off your mortgage before retirement

Whether or not you choose to pay off your mortgage before retiring often comes down to personal choice, regardless of whether or not it’s the best financial move.

For some, the peace of mind that comes from not having a large outstanding debt in retirement outweighs any financial downsides.

After all, as long as you’re carrying a mortgage, there’s always some risk of foreclosure — and if you’re out of the workforce, this can be much harder to recover from.

The decision isn’t clear cut. Since housing costs are lower when you no longer have a mortgage, paying it off may free up cash for other expenses.

On the other hand, using a large chunk of your retirement savings to pay off your mortgage may reduce the monthly amount you can withdraw from in retirement and hurt your cash flow more than having a mortgage payment would.

Also, the money you use to pay down the mortgage goes toward your home equity, which isn’t easily available for cash flow.

Relative returns play a big part

It may not make sense to pay off your mortgage if your potential investment returns are higher than the interest on your mortgage. In other words, you may not want to pay down a 5% mortgage with money that could be earning 8% if it stays invested, advised Dana Anspach, founder of a financial advisory firm in an interview with U.S. News & World Report.

However, “while it’s possible to make more money in the market than paying off your mortgage, it’s not guaranteed,” Jay Zigmont, founder of Childfree Wealth told the saem outlet. He tells clients to “look at paying off their mortgage as a tax-free, risk-free return of the interest saved.”

But not all advisors agree. “Paying off the mortgage at retirement is rarely beneficial,” David M. Williams, director of planning services for Wealth Strategies Group, told insurance provider MassMutual in March. “Maintaining and managing a mortgage may actually improve retirement cash flow.”

The decision also depends on your individual situation.

If you don’t have investments and are relying solely on the Canada Pension Plan (CPP) for income, then it can make sense to work a bit longer and try to pay down the mortgage for your peace of mind and the extra retirement cash flow this could bring.

If you’re heading for retirement and concerned you can’t carry a mortgage after you leave the workforce, then you may want to explore options such as working longer (either to pay it down or build up more savings), working part-time for the first few years of retirement, downsizing your home or even moving to an area with a lower cost of living.

You could also explore whether a reverse mortgage might be right for you, but this option also comes with a lot of pros and cons.

At 59, Brenda still has several options available to her, but she may want to consult with her financial advisor to determine the best path forward and create an updated plan for retirement.

Sources

1. Royal LePage: The new real estate reality for retirees: Exiting the workforce with mortgage debt (May 27, 2025)

2. Loans Canada: Average Debt By Age In Canada: Mortgages, Consumer & Student Loans, by Daniel Schoester (Aug 13, 2024)

3. U.S. News: Should You Pay Off Your Mortgage Before You Retire?, by Brian O’Connell (Jan 15, 2025)

4. MassMutual: Should I be retiring with a mortgage?, by Amy Fontinelle (Mar 11, 2025)

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

Would you choose to live in a prison? You might — if it had been converted into a community of well-designed apartments with a club house, swimming pool, green spaces, restaurants, retail shops and even a preschool.

That’s exactly what was done to an old prison in Lorton, Virginia.

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“We really felt that we were liberating these buildings from its dark past, and for that reason we thought Liberty was a good name for the project,” David Vos, a development project manager with real estate developer The Alexander Company, told CNBC Make It.

From abandoned prison to designer apartments

The Lorton Reformatory prison complex, originally commissioned by Theodore Roosevelt, was built in 1910 and shuttered in 2001. In 2002, Fairfax County bought the 2,324-acre campus for $4.2 million.

In 2008, The Alexander Company — which specializes in urban infill development and historic preservation — partnered with the county and Elm Street Development to help convert the campus, with renovations taking place from 2015 to 2017.

The company spent $64 million converting 207,000 square feet into the Liberty Crest Apartments. Rent for the 165 apartments ranges from $1,372 and $2,700 per month. For comparison, the average rent for all property types in Virginia is $1,700 per month.

Forty-four of the units are set aside for people earning 50% of the median household income of $136,719 for Lorton, according to CNBC Make It. These units were fully leased within a couple of months and have been at full occupancy since.

The Lorton Reformatory was a Progressive Era prison, so it’s architecturally interesting and laid out well for apartments, with plenty of windows providing lots of natural light and ventilation.

The original dining room has been turned into a club house with a pool table and shuffleboard table, while the prison ball field has been converted to a central green for residents. There’s also a fitness center, yoga room, swimming pool and two playground areas, along with retail shops and restaurants.

Plus, there’s still room for development. A few penitentiary buildings on the complex are slated to become commercial spaces and the power plant is being converted into 10 additional apartments.

The developers, believing we can learn from our past, have kept some signage from the original prison intact as a reminder of what the buildings once were.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

The economic and environmental promise of adaptive reuse

The Liberty Crest Apartments are a prime example of adaptive reuse — when existing assets in a built area are repurposed for new uses. This can be an environmentally friendly way to develop needed spaces such as affordable housing.

According to The World Economic Forum (WEF), “cities are turning to adaptive reuse as a powerful strategy to reduce waste, cut emissions and enhance circular economy principles in the built environment.”

Repurposing an existing building emits 50% to 75% less carbon than building new, according to WEF, and the process itself can be efficient — up to 90% of materials can be salvaged and diverted from landfills when buildings are repurposed rather than demolished. By saving the expense of demolition and new construction, repurposing can result in cost savings of 12% to 15%.

Communities also benefit from adaptive reuse because it helps to preserve culture and architecture while creating unique, distinctive spaces to work and live. It can also be a catalyst for urban renewal and innovation.

For example, where the Lorton prison complex was once an empty, decaying structure, there’s now attractive architecture, affordable housing and community spaces.

Adaptive reuse projects can also boost property values in the surrounding community through neighborhood revitalization. Jobs are created during the project and, longer term, for ongoing maintenance and administration of the new facility — as well as through any commercial spaces that may be part of the development.

However, it often means overcoming community and regulatory hurdles. In the case of Lorton Reformatory, investors initially expressed concern that the development was in a metro area without mass transit and that mixed-income housing might turn off prospective developers. Eventually, an investor did see the potential — and the result is Liberty Crest Apartments.

Despite these types of hurdles, adaptive reuse projects represent a huge opportunity for developers and communities alike. CNBC Make It reports that 188 prison facilities were shut down in the U.S. between 2000 and 2022, and in at least nine states conversions of these facilities are either underway or have been completed.

After all, why would communities and developers want to keep that much potential locked up?

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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.

When she turned 18, Jessica from South Carolina found out her mom had been using her Social Security number since she was a toddler — racking up $186,000 of credit-card debt in Jessica’s name.

After hiring a lawyer, Jessica was able to have her credit wiped clean, but she’s left with zero credit history and can’t get a credit card.

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She called into The Ramsey Show to find out how she could recover from having her credit history wiped. “Not even a secure credit card will touch me,” she said.

Making a ‘paradigm shift’ on the value of a credit score

Jessica feels “stuck” and says she can’t even buy a car with a co-signer. While she says some financial advisors suggested her “best option” is to get married, co-host Ken Coleman flagged that suggestion.

“I want to challenge this idea that you’re stuck because you have no credit score and that you have to get married in order to have a car,” he said.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Nor would it necessarily solve her issue. While credit scores aren’t impacted by marriage, if a married couple jointly applies for financing on a large purchase, such as a home or car, Equifax says lenders usually check both spouses’ credit information.

So what’s the solution?

It involves a pretty big “paradigm shift,” according to co-host Rachel Cruze. Jessica is focused on living her life around “having a great credit score.” But, as Cruze points out, “primarily you use a credit score to go into more debt.”

That paradigm shift involves living debt-free — without a credit card.

Consider that Americans owe $1.18 trillion in credit-card debt as of Q1 2025, according according to the Federal Reserve Bank of New York.

And the average credit-card debt, per American, was $6,371 during this same period, according to TransUnion’s Q1 2025 credit industry insights report.

Plus, high annual percentage rates (APRs) on credit cards can make it even harder to get out of debt.

“Although Federal Reserve rate cuts began in 2024 after two painful years of rate hikes, average credit-card APRs are still well above 22%, offering no relief to consumers who revolve balances from month to month,” according to Experian.

Thanks to her credit being wiped, Jessica is debt-free. She doesn’t even have the option to apply for a credit card to get into more debt, “so see that as a blessing,” said Cruze.

While Jessica has a full-time job as a debt collector and makes $19 an hour, Cruze suggests she look for a side gig (or a higher-paying job) to earn some extra money each month that she could put toward a vehicle.

If she made an extra $2,000 a month, for example, she could save enough to pay cash for a $5,000 to $7,500 secondhand vehicle in a matter of months — no credit card required.

How to live debt-free

In a survey by Forbes Advisor, 58% of respondents said card payments are “their prime facilitator of higher spending,” which is “a reflection of the ease and perhaps the less tangible nature of using cards over cash, which seems to loosen the psychological purse strings.”

And more than half (52%) of respondents are “more likely to make an impulse purchase when paying with a card compared to just 24% with cash.”

“Society tells us you have to have a credit card to survive, you can’t go to college without student loans and you’ll always have a car payment. These are straight-up myths,” according to a blog by Ramsey Solutions.

On the other hand, living debt-free means “not buying anything unless you can pay cash.”

Cruze says to start by coming up with a detailed budget and knowing exactly how much you’ll need for basic necessities such as food, shelter, utilities and transportation. Everything else can go toward saving up for your biggest needs — in Jessica’s case, that would be a car and her last semester of college.

“As you track your spending, you’ll see red flags and how quickly you get to the point where you’re spending more than you earn,” according to the Credit Counselling Society, which recommends using cash instead of cards.

“Cash-only diets are a great wake-up call to your spending because you physically see the money exchange and feel the drain on your wallet.”

If you have multiple credit cards, consider consolidating your debt onto one card (the one with the lowest interest rate or best terms) and cancel any cards you don’t need. You’ll also want to build up an emergency fund so you won’t have to rely on your credit card if you suddenly need money for an emergency.

While Jessica is “blessed” without a credit card, those looking to get out of debt can use techniques such as the snowball or avalanche method to whittle away high-interest debt.

Most likely, it will also involve increasing your income (working overtime, looking for a higher-paying job or taking on a side gig) while reducing your expenditures (cutting back on anything unnecessary, such as takeout, travel and entertainment).

To realize even greater savings, you could also look at ways to simplify or downsize. For example, is your rent eating up most of your income each month? If that’s the case, it may be time to look at finding a smaller place, getting a roommate or moving to a less expensive neighborhood (though you’ll also have to factor in the cost of moving).

“Don’t be leaning on the credit industry to get you out,” Cruze advised Jessica. In other words, getting a credit card isn’t going to solve her issues; it will only serve to get her into debt.

And, advised Coleman, “don’t get married at the advice of a financial advisor so you can get a car.”

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

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 low unemployment rate typically signals that an economy is generally healthy. The unemployment rate in the U.S. remained near a 50-year-low in April 2025 at 4.2% — plus, American employers added 177,000 jobs in April despite the uncertainty of Trump’s tariffs and trade wars.

This all sounds good, right? Not so fast.

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The “true” rate of unemployment in April, according to the Ludwig Institute for Shared Economic Prosperity (LISEP), was 24.3%, up 0.03% from the previous month. LISEP’s True Rate of Unemployment (TRU) includes the unemployed, as well as workers who are employed but still struggling.

“We are facing a job market where nearly one-in-four workers are functionally unemployed, and current trends show little sign of improvement,” said LISEP Chair Gene Ludwig in a statement published on PR Newswire.

“The harsh reality is that far too many Americans are still struggling to make ends meet, and absent an influx of dependable, good-paying jobs, the economic opportunity gap will widen.”

That could help explain why, despite the supposedly healthy employment rate, consumer confidence in the American economy has been plunging.

What is ‘functional unemployment’?

So, why is there a 20-point difference between the LISEP and Bureau of Labor Statistics (BLS) unemployment numbers? The BLS collects a massive amount of data on unemployment, but some of that data is excluded from the official unemployment rate.

For example, BLS found that 5.7 million people who aren’t employed do, in fact, want a job — but they weren’t counted as unemployed because “they were not actively looking for work during the four weeks preceding the survey or were unavailable to take a job,” according to BLS.

LISEP uses data compiled by BLS, but instead of simply measuring unemployment, LISEP measures what it calls the “functionally unemployed.” This is defined as the portion of the U.S. labor force that “does not have a full-time job (35+ hours a week) but wants one, has no job, or does not earn a living wage, conservatively pegged at $25,000 annually before taxes.”

Its metrics capture not only unemployed workers, but also those stuck in poverty-wage jobs and those working part-time but can’t get full-time work. LISEP’s measurements aim to include these functionally unemployed Americans to provide a more complete picture of unemployment across the country, including the nuances that other economic indicators miss.

This, in turn, can help “provide policymakers and the public with a more transparent view of the economic situation of all Americans, particularly low- and middle-income households, compared with misleading headline statistics,” according to LISEP.

“Amid an already uncertain economic outlook, the rise in functional unemployment is a concerning development,” Ludwig said. “This uncertainty comes at a price, and unfortunately, the low- and middle-income wage earners ultimately end up paying the bill.”

Ludwig says the public would be “well served by a commitment from economic policymakers to adopt a stable course of action” based on real-world metrics.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

The gap between official and ‘real’ numbers

LISEP uses two important differentiators in its metrics. First, to be considered fully employed, an individual must have a part-time job (with no desire to work full time, such as students) or have a full-time job working at least 35 hours per week.

Second, the individual must earn at least $20,000 annually, adjusted for inflation and calculated in January 2020 dollars, as per the Department of Health and Human Services’ U.S. poverty guidelines.

While “not technically false,” LISEP says the rate reported by the BLS is “deceiving,” considering the number of Americans in the workforce who are “employed on poverty-like wages” or “on a reduced workweek that they do not want.”

“For example, it [BLS’ unemployment rate] counts you as employed if you’ve worked as little as one hour over the prior two weeks,” Ludwig told CBS MoneyWatch. “So you can be homeless and in a tent community and have worked one hour and be counted, irrespective of how poorly-paid that hour may be.”

TRU also paints a bleak picture for certain demographics, with Hispanic and Black workers faring worse than white workers and women faring worse than men. For example, 27% of Black workers and about 28% of Hispanic workers are functionally unemployed compared to 23% of white workers.

Every month since 1995, black Americans have had a “meaningfully higher” TRU than caucasian Americans, according to LISEP.

The TRU numbers suggest the U.S. economy is much weaker than the BLS unemployment rate would have you believe — particularly for lower- and middle-income Americans — and that there’s a need for policy solutions that reflect this more nuanced reality.

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• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

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.

An Australian nurse had her life upended when scammers hijacked her phone number, drained her bank accounts and opened loans in her name — all within 24 hours.

“They were able to change my email, passwords,” Lee-Anne McLean told 9News. “They broke into my social media and they opened bank loans.”

And she doesn’t know how they did it. “I have security on my phone and my computer, so I’m not sure how they got all my personal information but I would really like to know.”

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How phone porting scams work

Phone porting is a legitimate process that lets you keep your phone number when switching carriers, and it’s typically protected by verification safeguards. But scammers have learned how to exploit it.

“To work around these protections, scammers will gather personal information about their target online, combing through social media posts, or purchasing information from cyber thieves or hackers,” according to the Federal Communications Commission (FCC).

If fraudsters have the right combination of personal information — which could include your address, birth date, Social Security number, PINs and passwords — they “may be able to con the victim’s phone company into believing the request to port out the number is from the authorized account holder,” says the FCC.

Once the fraudster convinces your phone company to transfer your number, your phone goes offline — and theirs lights up with your messages and calls, often allowing them to bypass safety measures like two-factor authentication.

“Once the scammer has access, they attempt to drain the victim’s bank accounts,” says the FCC. “In another variation, the scammers may attempt to sell or ransom back to the victim access to their social media accounts.”

This happened to Associated Press reporter Fatima Hussein in 2024, who woke up one morning to discover she didn’t have cell service. “Using my home Wi-Fi connection, I checked my email and discovered a notification that $20,000 was being transferred from my credit card to an unfamiliar Discover Bank account,” she explained in an article for the Financial Post.

Hussein said it took 10 days to get her number back from Cricket Wireless. “And that wasn’t until I told company representatives that I was writing a story about my experience,” she wrote in the Financial Post. During that time, fraudsters had accessed her account three times and transferred $19,000 from her credit card to the same unfamiliar account, even after freezing her credit and changing all her passwords. Bank of America was working to reverse the $19,000 transfer.

Neither McLean nor Hussein know how fraudsters got their information.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

How to protect yourself from phone porting scams

In 2024 alone, SIM swapping scams led to nearly $26 million in reported losses, according to the FBI — and the real figure may be even higher, since many victims don’t report.

• To minimize the risk, start by asking your wireless provider about port-out authorization. “Every major wireless has some sort of additional security for accounts or for port-out authorization that customers can set up, like a unique pin, or add verification questions, which will make it more difficult for someone to port out your phone,” according to the Better Business Bureau (BBB).
• Be on the lookout for phishing scams, which can lead to phone porting scams. A phishing scam takes place when fraudsters try to trick you into giving away personal information, typically by posing as a legitimate individual or business (such as an HR manager or your bank). They may contact you via text, email or phone.
• Never give away any personal information to a call or email from an unknown contact. Hang up (or ignore the email) and contact the individual or business with a trusted phone number or even an in-person visit.

“Typically, loss of service on your device — your phone going dark or only allowing 911 calls — is the first sign this has happened,” according to the FCC.

If this has happened to you, time is of the essence. Contact your phone company and bank, and place a fraud alert on your credit reports. Aside from filing a police report, you can also file a complaint with the FCC.

But for victims like McLean or Hussein, recovery can be a long, difficult process.

“My days are basically taken up by trying to prove who I am again,” McLean told 9News, “and piece by piece trying to put my life back together.”

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

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.

Credit cards are popular with Americans — and so are the points, rewards and perks that come with them. That’s why some Americans devote time and energy (and spending) to optimize multiple rewards programs and claim rewards they wouldn’t otherwise be able to afford, such as flying business class.

The number of credit card accounts in the U.S. has increased steadily over the past 15 years; in 2023, 82% of adults had a credit card.

About half of cardholders carry a balance and, in the first quarter of 2025, Americans were carrying a near-record total of $1.18 trillion in credit card balances.

But economic uncertainty and pending legislation are about to change the rewards landscape — and not for the better.

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Consumers can’t get enough of credit card rewards

Rewards have played a part in the growth of credit cards (and debt) by helping credit card providers attract and retain customers.

“The reward point functions as an alternative currency with real economic value, yet it continues to carry aspirational and emotional significance,” So Yeon Chun, an associate professor of technology and operations management at INSEAD, recently told Business Insider.

“In other words,” he said, “rewards have become a dual-purpose behavioral currency: A tool for economic relief and a channel for emotional and symbolic value.”

Redeeming rewards “can have an outsize effect on satisfaction” on cash-strapped consumers, according to Bain & Company.

A few years ago, rewards redemption was a “routine episode, or interaction that fulfills a need, unlikely to faze customers,” according to the global management consulting firm. “But it has since become a ‘moment of truth’ — an episode with a high likelihood to delight or annoy, depending on how well the credit card provider executes the end-to-end process.”

At the same time, rewards have economic value that consumers are using to make day-to-day purchases and cover necessities.

“Most consumers, including middle-income earners, now use rewards not just to manage spending, inflation or debt, but also to preserve lifestyle,” Chun told Business Insider.

Consumers had amassed reward balances of more than $33 billion by the end of 2022, according to the Consumer Financial Protection Bureau (CFPB).

And those rewards are “incredibly popular,” according to the Ipsos Consumer Tracker, summing up the results of a 2024 poll. Seventy-one percent of Americans have a rewards or cashback credit card, and about one in five younger Americans (ages 18-34) use the rewards for experiences they “couldn’t afford otherwise.”

But it also found that over a third of respondents said they wouldn’t spend as much on their credit cards if rewards weren’t offered.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Dark clouds on the rewards horizon

Despite their popularity, economic headwinds may cause a reduction or restructuring of rewards programs similar to what happened during the Great Recession, when 0% balance transfer programs were cut back dramatically.

While economic prognosticators disagree as to how likely we are to enter a recession in the near term, continued near-record levels of economic policy uncertainty are having much the same effect on business decisions as a recession.

For instance, airline reward programs have already started to lose value — and other perks may soon follow.

“In the more typical downturn, we are likely to see a different kind of shift. Issuers will preserve the appearance of program stability while quietly reducing average value,” Chun told Business Insider. “Redemption thresholds may rise, expiration timelines may tighten, bonus categories may rotate more frequently, and access to high-value redemptions will become more conditional.”

Even more concerning to consumers who’ve racked up rewards, those programs may disappear altogether in the U.S. — despite their popularity.

Senator Dick Durbin, a Democrat from Illinois, and Sen. Roger Marshall, a Republican from Kansas, are driving efforts to move the Credit Card Competition Act through Congress.

The bill would reduce interchange fees, which are the fees charged to merchants that allow them to accept credit cards. These fees are a source of revenue for credit card companies and help to fund rewards programs. Some major airlines have already warned that if the legislation passes, frequent flyer programs could disappear.

At the same time, credit card providers can devalue your rewards at any time (which can also happen naturally with inflation) — so accumulating and hoarding points may not be in your best interest.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

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.