In 2020, holiday shopping arrived while the Covid-19 pandemic was in full swing, and before the widespread rollout of vaccines. Consumers reportedly spent an average $312 during the four-day stretch from Thanksgiving to Cyber Monday.

And because of the pandemic, consumers shopped more online, and over a more extended period of time. Total online sales during the 2020 holiday season increased to $209 billion, a 24% jump year-over-year. Holiday retail sales totaled $789.4 billion, an 8.3% increase compared to 2019. 

For 2021, both in-store and online sales are expected to increase between 8.5% to 10.5%. 

In-store shopping is expected to account for 33% of holiday sales, according to a survey from consulting firm Deloitte, compared to 28% in 2020. 

Your health and safety are still the most important thing to keep in mind during Black Friday shopping this year. So if you do plan to shop in stores, remember to wear a mask  if required.

Here are Stash’s tips for taking advantage of deals without overspending on Black Friday, Cyber Monday, and beyond.

1-Build a budget and stick to it

Before you start adding items to your cart this year, you need a budget. And If you haven’t set one up, consider using one like the 50-30-20 budget. First, figure out your monthly income and then break that into three different categories: necessary, fixed expenses (50%) variable expenses (30%), and savings and investments (20%). Your holiday shopping will come from your savings, and your discretionary income. You can use this budget template to stay on track.

You might have also been saving specifically for your holiday spending, so take any funds you’ve set aside into consideration as well. Once you have a set amount of money in mind, you can avoid spending money you don’t have on gifts for other people, or for yourself. You might want to create a partition¹ in your Stash account that’s dedicated specifically to money that you’ll use for holiday gifts. 

2-Don’t get distracted by unnecessary purchases

While it’s nice to pick up something for yourself while you’re doing your shopping this holiday season, don’t get overwhelmed by items that aren’t in your budget. Don’t go to a store or browse online unless you know exactly what you’re looking for and what it’ll cost. 

Consider writing out a list of all the things you want to buy, and then see if you can find discounts by shopping around.

3-Do your research and compare prices

If you have a specific item in mind that you want to buy during the holiday sales, figure out how to get the best price for it. Maybe you’re planning to buy a slow cooker for your sister or a tablet for your kids. Look around for which store is offering the best price for what you’re buying. Something on your list may go on sale on a specific day or at a specific time. 

You might also be able to get cash back, discounts, or rebates through third-party sites such as Rakuten to get Black Friday deals. Or you can use extensions like the Honey app to get discounts and promo codes for certain online purchases.

4-Use a card that earns rewards 

You might have a card that you can use to earn rewards or cash back points. Try to use those reward cards when you’re doing holiday shopping on Black Friday so that you can earn rewards while also getting the best prices.

With Stash’s Stock-Back® card², you can earn a percentage of every qualifying purchase back for each purchase that you make. So when you buy something from Amazon, you can earn a percentage of that purchase back as Amazon stock. 

5-Make sure that you can return items

Lastly, make sure that you (or the person you’re shopping for) can return whatever you purchase. If you find a better price for the item or change your mind, you’ll want to be able to return it. Be aware of the return policies where you’re shopping and keep any receipt that you receive. 

Consider these steps to help you avoid spending too much money on gifts this holiday season. And remember to stay safe while you shop this year!

The post 5 Tips for Saving Money on Black Friday and Cyber Monday appeared first on Stash Learn.

If you’re one of the millions of student loan borrowers who haven’t made a loan payment since the beginning of the pandemic, time may be running out. Payments for federal education loans, which have been on pause since the spring for 43 million people, are expected to resume on September 1, 2022.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress in March, 2020 provided what’s known as a grace period for people who have federal student loans, or loans underwritten by the government. The grace period was initially scheduled to end on September 30, 2020, but was extended through the end of 2020 as the pandemic and record unemployment have continued on.

During this time, federal student loans have not accrued interest or penalties. 

Approximately  43 million Americans had federal student loan debt totaling $1.6 trillion. The zero-interest period was intended to give financial relief to those who lost all or part of their income as a result of shutdowns caused by the pandemic. If you have federal student loans, this grace period has likely applied to you.

Whether you’ve continued to make payments all along, or  you’ve taken this time to save some money, here are some things to consider as you prepare for the likely return of student loan bills every month.

Know what’s happening with your loans

Consider reaching out to your loan provider so you know exactly when your next student loan payment will be due. And find out how your payment has changed if it has. The sooner you can start paying  off your student loans, the better. Making payments during a period of zero interest can help you make a serious dent in the principal, or original amount you borrowed, as there are no additional interest charges during a grace period. If you have multiple student loans, you may also want to take advantage of the zero-interest period by either paying off, or putting more money toward, the loans that have the highest interest rate.

Research a new repayment plan

If you’re daunted by upcoming payments, it might be time to revisit your repayment plan. “For those who have lost their job or part of their income, I suggest that they reach out to their student loan company now and ask about an income-based repayment plan,” says Orlando, Florida-based financial advisor Danielle Barak from financial planning company Northwestern Mutual.

Consider applying for an income-driven repayment plan, which may take into account different factors such as your income and the size of your family, according to the U.S. Department of Education’s division of student aid. If you’re approved for this change, you’ll pay your student loans back according to a percentage of your discretionary income. 

Barak warns, however, that “income-based repayment can get expensive as income drastically increases, so it’s important to know your options and if you can change the option you select.” Once your employment status changes, you may want to adjust the way you pay back your loans.

You may already be repaying your loans on an income-driven plan based on pre-pandemic employment. In this case, “recertify your income using your most recent pay stub showing your decreased income, or file your taxes early in 2021 and use your tax return to recertify your income,” says Jared Andreoli, a financial planner from Simplicity Financial in Milwaukee, Wisconsin. 

Contact your provider

If you’re unemployed or you’ve had a change in income, you might feel like you won’t be able to make any student loan payments whatsoever. Financial planner Joseph Orsolini from College Aid Planners in Glen Ellyn, Illinois, says that “borrowers that may have difficulty making their payments again should get in contact with their loan servicer about options available to them.”

“Most federal borrowers will be eligible for deferment or forbearance, which would allow them to continue not making payments,” says Orsolini. You’ll need to apply for student loan deferment or forbearance through your provider. Deferment and forbearance are slightly different. When you defer your loans, you’ll be able to skip make payments for a period of time without accruing interest. Student loan forbearance means that you’ll skip payments, but you’ll still accrue interest during the period of forbearance.

Orsolini suggests first looking into deferment. He also says, however, that borrowers might have more luck applying for forbearance as it has fewer qualifications than deferment. Deferment is usually granted in the case of certain qualifying events, such as unemployment, military service, or ongoing cancer treatment.

Do what you can to make the minimum payment

As the Covid-19 student loan grace period comes to an end, one thing you can consider is preparing to make at least the minimum payment each month towards your student loans. If you’re receiving unemployment payments or have money saved, such as your CARES Act stimulus check, think about using that money for loan payments, if you’re able to.

For people who might not have the option to defer on their loans, or want to continue making payments, Barak says, “I’d suggest working through their budget and examining their savings account to see what they can do. If there’s any side income that they can make to pay at least the minimum payment that would be ideal so this way their credit won’t be compromised.” 

If you don’t already have a budget, now is a great time to consider building one, such as the 50-30-20 budget, which allocates 50% of your income towards your essential, fixed expenses, 30% to your nonessential, variable expenses, and 20% to investing and savings. Include your student loan payments, as well as any other payments towards debt, in the 50% portion of this budget. You can also try other budgets such as the envelope method.

Stash can help you stay on top of your budget. In your Stash account, you can create partitions¹ for your bills, such as your student loans. You can also create partitions to help you save as the pandemic continues. Additionally, you can use Stash’s Bill Pay² function in the app to pay your student month bill every month. Bill Pay allows you to schedule payments so that you don’t miss them and hurt your credit.

The post How to Plan for Student Loan Payments in 2022 appeared first on Stash Learn.

The political battle between President Donald Trump and former Vice President Joe Biden is projected to be the costliest presidential election in U.S. history. Add in several high-profile Congressional races and a host of high-ranking state seats and the estimated spending for this 2020 election cycle is nearly $2.2 billion.

Political candidates are leaning heavily on your money to win their seats. But what’s the best way to donate to your candidate of choice? Does your donation actually make a difference in their campaign? And how are they spending all that money?

“For this particular presidential race, I think a lot of money is going to be spent on getting out the vote,” said Sarah Bryner, director of research and strategy at the Center for Responsive Politics in Washington D.C. “Getting their people motivated to get to the polls is probably the most significant activity that the campaigns will be doing.”

To date, Trump and Biden have raised nearly $1 billion collectively.  Trump has raised $505.5 million and spent $376.9 million. Biden has raised $479.2 million and spent $343.6 million.

Their financial focus is largely on the so-called swing states, including Michigan, Wisconsin and Florida where every vote counts toward what could be a slim victory.

They are trying to turn campaign donations into votes largely through media advertising and, in the COVID-19 era, fewer public appearances than are typical for a presidential election year.

Trump, as an incumbent president, is also required to use campaign money to reimburse taxpayers for use of Air Force One or security details that he uses while on the campaign trail.

“All of the presidential candidates, the incumbent presidents have to do that,” Bryner said, including Presidents Barack Obama, George W. Bush and Bill Clinton. “That’s a pretty significant expense.” 

How Much You Can Donate to Your Favorite Candidate

Smaller, individual donations are highly coveted by candidates in all races, Bryner, said, because they allow the campaigns to boast that they are working for and supported by the people. In the Congressional arena, she added, Democratic incumbents Alexandria Ocasio-Cortez of New York and Republican Matt Gaetz of Florida have leaned particularly hard on their prowess for collecting individual donations.

About 55 percent of Trump campaign money has come from small individual donations of less than $200, compared to 42 percent for Biden.

But there are rules and regulations for how much one person can donate. The Federal Election Commission sets limits on individual political donations that are adjusted each year for inflation. 

“Campaign donation limits are in place to prevent corruption, [such as] a donor giving a million dollars to a candidate and the candidate being so beholden to them as to grant favors once in office,” Bryner explained.

This year’s contribution limits for individuals include $2,800 to a candidate’s committee or a combined $10,000 for state, district or local party committees. The FEC also maintains a database of people who donate more than $200 per individual campaign or PAC, including their name, location, employer, how much they have donated and who has received their donations.

So while you may throw all your support behind a particular candidate, you need to keep tabs on your political spending. Penalties for willfully ignoring federal campaign finance limits can include hefty fines and even jail time. 

Where You Can Donate to Your Favorite Candidate

If you want to donate directly to your candidate of choice, your best and safest bet is to go directly to their website.

Both  Donald Trump and Joe Biden have official campaign websites where you can purchase merchandise and make a political donation. But there are many other ways to make your dollars count. 

You may choose to donate to a House or Senate race or a smaller race closer to home. Every candidate, no matter how big or how small their campaign, should have an official site where you can donate. You could also donate to a race outside of your district, which you may want to do for high-profile or high-stakes races.

Knowing who the players are and how they are polling can help you figure out how your money could make a difference.

“A candidate might be in a district that’s pretty safe for the incumbent and be so far behind in the fundraising game that it’s really unlikely they’re going to win. On the one hand you want to support that person because you believe in them, but then, on the other hand, you could allocate that money to someone in a closer contest,” Bryner saud. “Generally, a closer contest, your dollar is going to go a little bit farther.”

How to Donate to a Cause or a Committee

If you’d rather donate to a cause, instead of than a candidate, you could donate to a politician action committee or a PAC. A PAC is an organization that uses money to influence or lobby for legislation that benefits that particular group. 

If you are passionate about environmental causes, you may choose to donate to Sierra Club Political Committee or the League of Conservation Voters, which advocate on behalf of candidates and legislation that are pro-environment. 

There are thousands of possible options for cause-related PACs, from public education to medical advocacy to gun rights or gun control to religious or atheist communities to organizations based on race and ethnicity.

You can also donate to PACs that are related to your occupation.

“If you work for a business or if you are in a profession, like you are a dentist, your profession or your business likely has a PAC affiliated with it that you might be able to donate to,” said Bryner, noting that realtors have one of the biggest PACs in the country. “These are oftentimes non-partisan or are bi partisan.”

You can also donate directly to your political party. The Democrat National Committee and the Republican National Committee, as well as third-party organizations such as the Libertarian National Committee and the Green Party, all accept donations and will send your money to the candidates they feel need the most help to win a race or a particular swing state.

That could mean high profile Senate or Congressional races, swing states in the presidential election or even gubernatorial elections.

Make Sure Your Donation Dollars are Safe

When donating, whether to a candidate or a PAC, or a local or nationwide race, make sure you are donating to the actual campaign and not a fraudulent site.

Always use a credit card and never send cash, Bryner cautioned. Also be wary of making political donations via social media as they can be harder to verify and may look strikingly similar to a candidate’s actual donation ads.

“I wouldn’t go through a social media platform because there’s a lot of manipulative Facebook sites that…are really random dudes in Wisconsin,” Bryner said. “So just be careful with that.” 

And while authentic donation sites may ask for your name, your location and your political party affiliation, they will not ask for your social security number or personal financial information.

Your Political Donation is Not a Tax Write Off

While you can deduct a certain amount of non-profit or charity donations on your taxes, donations to political candidates or PACs do not count as approved write offs.¹

An IRS-approved deduction is a donation made to a charitable or non-profit organization with a 501(c)(3) designation. Political committees are designated as 501(c)(4) organizations and are not tax deductible for individuals. 

Make Sure You Are Registered to Vote!

While candidates rely on campaign contributions to win their election, there’s something they want more than your money — your vote.

You need to register to vote before you head to the polls. You can visit your local Board of Elections or register to vote at Vote.org.

The post Want to Donate to a Presidential Candidate? Here’s What to Know appeared first on Stash Learn.

And that means you’ll probably have to rethink how you manage your money.

Here’s what’s happened so far: In July, the extra $600 that unemployed workers got from the CARES Act expired. In its place, President Trump issued several executive orders,  potentially giving unemployed workers up to $400 depending on where they live. The federal government is providing an extra $300 per week through the Federal Emergency Management Agency (FEMA). States have to apply for the aid program and can tack on an extra $100 for each person. 

While payments are just going out in some states, there’s a lot of uncertainty about them. Although the executive orders extended additional benefits through December 6, 2020, experts have said that FEMA’s funding for the program is likely to run out within four to five weeks, leaving unemployed people in the lurch again. 

Meanwhile, Congress is still at odds over the next stimulus package. Democrats recently rejected a “skinny” rescue package approved by Senate Republicans for several hundred billion dollars, because it does not provide enough money. For their part, the Democratic-led House of Representatives passed a $3 trillion bill in May, which was rejected by Republicans. 

No matter what Congress decides, unemployment benefits are likely to remain lower than they were. So you may need to change the way you budget if you’re out of work. Stash has some suggestions to help you manage.

Negotiate your bills

This advice from March when the pandemic hit still stands. You might be struggling with your credit card bills, mortgage payments, auto loan payments, or other bills. Missing payments or making payments late can hurt your credit score, which can hold you back financially in the future. 

Reach out to lenders if you haven’t done so yet and see what they can do. You might be able to negotiate lower or waived fees or the due dates of your payments. If you aren’t able to negotiate with the first customer service representative you speak to, try calling back later. And make sure you know if that negotiation will affect your credit score and how.

You may have already come to some agreement with your landlord on rent. If your lease is up or coming to an end, see if you can find a cheaper rent and move or use that cheaper rent to argue for a lower rent at your current place. 

Tap into your savings

You have your savings for a reason. Hopefully, you have an emergency fund that contains enough funds to cover three to six months of expenses. If you do have an emergency fund, now may be the time to lean on that money if you don’t have that extra unemployment money coming in. It can be scary to rely on your savings but remember that you save to help you get by when something unexpected—like a pandemic—happens. 

Try not to pull from your retirement savings during the time since you can incur penalties for withdrawing from those accounts before you’re legally allowed to do so. 

Take on debt (smartly) if you need to 

No one wants to take on more debt than they normally would. But the current economic situation might push you to take on more debt than you otherwise would. There are some ways that you may be able to do so in a financially wise way. 

You should check if your current credit card provider has any flexibility when it comes to your interest rate on your credit card bill. The average annual percentage rate (APR) for a credit card as of May, 2020 was 14.52%. The APR is the rate at which your credit card company charges you for borrowing money. If you pay off your credit card bill every month, you might not have to worry much about your APR. But if you need to temporarily keep a balance on your card because of Covid-19, you’ll want to get a card with a low APR. 

You can even find credit cards with APRs as low as 0%. As with all credit cards, read all the fine print and ask about any hidden fees before you sign up for the card. And keep in mind that you might need to have a certain credit score to get access to those cards.

Set up a plan for paying off your debt once you’re able to do so. Include debt repayment in your budget where you can and prioritize paying off that extra debt as soon as possible. Don’t let debt grow for too long since it can have a negative impact on your credit score. (If you feel overwhelmed by your debt, consider using the avalanche method or the snowball method to attack it.)

Accept help where you’re able to

You may be hesitant to accept donations or charity. But if you’re out of work right now, you’re not alone. A lot of people need extra help. 

Whether schools in your area are open or not, you and your family may have access to free meals through the U.S. Department of Agriculture. You should also consider going to a local food pantry for your grocery needs. Feeding America has a tool that can help you find a food bank in your area.

You could also be eligible to receive donations from funds that have been set up for certain industries. For example, the Restaurant Employee Relief Fund (RERF) has approved one-time payments of $500 to more than 43,000 restaurant workers in the U.S. Look around online to see if you qualify for grant payments.

Navigating you through this time

Stash will continue to update you with information on where stimulus legislation stands and how unemployment benefits change during the pandemic. Make sure to also check back with Stash’s guide to financial help during Covid-19, which includes resources to help you plan and budget during the pandemic.

The post How to Budget with Less Money appeared first on Stash Learn.

The Center for Disease Control (CDC) has said that students can return for the new school year, provided that schools follow guidelines to keep students and faculty safe. Still, back-to-school plans vary across states and districts and some have decided to stick to virtual learning this fall. 

Whether your kids are headed back to the classroom or back to the kitchen table, they’ll likely spend more time at home this year, and you’ll want to make sure you have everything you may need for them without spending too much. In fact, 44% of parents said they want a mix of in-person and virtual learning and 39% said they wanted school to be entirely virtual, according to a Washington Post poll. 

Here are some key items to consider, and some tips to help you manage and budget.

Returning to in-person learning

In addition to the standard pencils and notebooks you’d normally need for the classroom, you’ll probably want to make sure you have plenty of personal protective essentials such as masks, hand sanitizers, and sanitizing wipes to pack in your kids’ backpacks.

Shop around and buy in bulk. As of May 31, 2020, 43% of Americans said that they were spending more on health and hygiene products during the Covid-19 pandemic. Forty percent said that they were spending more on household cleaning products. And a return to in-person work and school means an increase in precautionary measures and products.

Try to find the most affordable and effective products. Buying cleaning products and masks in bulk can help you avoid unnecessary trips to the store and can save you money in the long run (although you might spend more upfront). 

Keep track of how much you spend on cleaning supplies and other pandemic essentials for your student in the first month of school. Then account for that spending as part of your essential expenses for the rest of the school year. 

Gauge other lifestyle changes. You might choose to pack your kids’ lunches or refrain from your usual carpool arrangements this year. Figure those changes into your budget. Adjust your budget accordingly to include more money for groceries or gas.

Don’t be afraid of donations. If you’re one of the 16.3 million currently unemployed Americans, look into how your family can benefit from local or national support. The National School Lunch Program provides free or subsidized lunches to 22 million kids in the U.S. You can apply for free or reduced school meals with the U.S. Department of Agriculture. 

You might also want to see if you’re eligible to receive free school supplies from groups such as the Salvation Army or the Boys and Girls Club of America. Also figure out what cleaning supplies and protective equipment will be provided by the school so that you’re not spending unnecessarily.

Making the at-home classroom work

Kids who are learning from home this year are likely to need a slightly different set of tools than kids who are heading into educational facilities. With half a year of remote learning already under your belt, you may have an idea of what you need, but here are some suggestions. 

Look for deals when it comes to technology. Your kids’ school or district might provide you with the technology that your kids need to learn remotely. But you may need additional equipment such as computers, tablets, or webcams. Look for sales, particularly end-of-summer deals on technology. You might also be able to find discounts specifically for students. 

Budget-friendly laptops, like the Chromebook, start around $300. If your computer needs a webcam, you can get one for as little as $25.

Reportedly 20% of students don’t have access to the technology that they need. Another issue for many at-home learners is internet connectivity. In Washington D.C. and five states—West Virginia, New Mexico, Kentucky, Mississippi, Louisiana—25% of students (or more) don’t have reliable access to the internet. 

Consider revisiting your wireless internet plan. The median monthly price for 100 megabits per second (mbps)  WiFi is $64.99, according to the Wall Street Journal. The standard internet speed is between 100 and 249 mbps, and 100 mbps can handle multiple users at a time. If you live in an area with more than one internet provider, see if you can get a better deal and better service from a different provider. Or, call your provider and see if you can get a higher speed plan, or negotiate the cost of your plan.

You might have already created a space for schoolwork during the spring. Try to designate a part of your home for learning. And make sure you have all of the software and apps (such as Google Classroom or Zoom) ready to go and functioning before day one. Check with your school district, which may provide those services, so you can figure out the login information ahead of time. Zoom is even offering free service to many K-12 schools during the pandemic.

Know how you can access free meals and supplies. Just because your kids are learning from home doesn’t mean that they’re excluded from the benefits of going to school, such as free or subsidized meals, if they usually receive them. You can use this tool from the U.S. Department of Agriculture to see where you can still access those meals near you while still maintaining social distancing guidelines. 

If you plan to make your kids meals every day, try to plan your meal prepping so that you’re not constantly in the kitchen making the next sandwich or snack. 

Your kids will still need basic school supplies such as pens, folders, and more. You can likely still access free supplies from local organizations even though your kids will be learning from home. 

How Stash can help

While getting ready for the 2020 school year is a massive task, Stash has a few ways to help you budget. You can create partitions in your Stash banking account for your various expenses and savings objectives. Partitions allow you to save money toward any financial goal you choose, from buying new school supplies to setting up a home learning area.¹ 

Confused about making a budget? It’s part of the Stash Way, which you can find out about here.

You might also want to use your Stash debit card when you go shopping for school supplies so that you can earn Stock-Back® rewards² on those purchases. Stock-Back® is our proprietary rewards program that lets you earn pieces of stock when you spend on qualifying purchases with your Stash debit card. So when you buy your kids a new laptop or desk, you can earn fractional shares of stocks. So you can earn rewards without putting those purchases on a credit card and accruing debt. 

The post Get Schooled: How to Budget for the Covid-19 Classroom. appeared first on Stash Learn.

As of August, 2020, Covid-19 has infected more than 19 million people and killed more than 700,000 worldwide. In the U.S. alone, more than 160,000 people have died from the virus. Additionally, the pandemic has caused turmoil in the U.S. economy, as businesses have closed temporarily and in some cases, permanently. Meanwhile, biotech and pharmaceutical companies are working at a rapid pace to test a vaccine as well as potential treatments for the virus, in the hopes that people and businesses can safely function again. 

In the U.S., the federal government is providing approximately $10 billion in funding as part of Operation Warp Speed, a partnership between the public and private sectors to manufacture 300 million doses of a Covid-19 vaccine by January, 2021. This funding has gone to seven biotech and pharmaceutical companies, including Moderna, AstraZeneca, and Johnson & Johnson. In exchange for government funding, these companies will have to hand doses of their vaccine to the U.S. once approved.

Development, testing, and production of vaccines typically lasts two to three years. But with more than 700,000 people dead across the world from the virus, scientists are attempting to bring a vaccine to market by 2021. 

The companies that are part of Operation Warp Speed aren’t the only ones working on a vaccine. In fact, there are currently 165 vaccines in development and testing all over the world. In what appears to be a potential propaganda push, Russian researchers sped through the trial process and will reportedly begin vaccinations across the country in October, 2020. However, the World Health Organization has not included the Russian vaccine in its list of contenders. 

Still, an effective and approved vaccine isn’t expected before the end of the year. Whichever company does bring an effective vaccine to market first is likely to be met with very high demand from every corner of the world.

Where the vaccine race stands

Once researchers have a vaccine, they have to test it in the lab, on animals, and eventually on people in three separate phases. During phase 1, the vaccine is tested on a small number of people to see if the vaccine is safe and to determine the dosage needed. When the vaccine moves on to phase 2, it’s tested on hundreds of people from different age groups to see how its effects might differ. Lastly, the vaccine enters phase 3, in which it’s tested against a placebo in tens of thousands of people. Then, the vaccine can be approved for use. 

Here’s the status of some of the many companies—both large and small—working on a vaccine:

• Biotech company Moderna entered phase 3 of testing in July, 2020, administering the vaccine to 30,000 people. Moderna initially got $483 million in April, 2020, and then an additional $472 million from the U.S. government to work on the vaccine in collaboration with the National Institute of Health. Moderna reported that test subjects developed antibodies to the virus. The company reportedly hopes to deliver its vaccine in 2021 and to manufacture 500 million doses annually. 
• Pharmaceutical company Pfizer developed four different vaccine possibilities and has moved into the third phase of testing with one vaccine it developed with German company BioNTech. Pfizer’s vaccine will also be tested on 30,000 volunteers. Pfizer anticipates having news regarding the third phase in October, 2020. The U.S. gave Pfizer $1.95 billion dollars anticipating that the company will bring 100 million doses of the vaccine to market by December, 2020. 
• The U.S. Department of Health and Human Services allocated $500 million in funding to Johnson & Johnson’s vaccine production. The pharmaceutical company’s vaccine candidate has shown to protect monkeys from the virus, allowing Johnson & Johnson to move onto human trials. 
• Biotech company Novavax secured $1.6 billion in government funding to work on its vaccine. Novavax’s combined phase 1 and phase 2 trials reportedly showed antibody development in monkeys and humans. Novavax plans to deliver 100 million vaccine doses by the first quarter of 2021. 
• AstraZeneca is working with the University of Oxford to produce a vaccine and received $1.2 billion from the U.S. AstraZeneca has begun testing its potential vaccine on humans and phase 1 and 2 trials showed that test subjects developed antibodies. 

Any of the potential vaccines could fail or prove ineffective at any point in the trial phase. For that reason, investing in any of these companies could be risky.

How Covid-19 is being treated

The Food and Drug Administration (FDA) hasn’t approved any drug for treatment of the virus. The FDA did approve the antiviral drug remdesivir, which is made by Gilead Sciences, for emergency use during the pandemic. Gilead Sciences released findings in July that showed that remdesivir reduces the risk of death by 62% in severely sick patients, and reduced recovery time by about four days. However, more testing of the drug is still needed. 

Meanwhile, pharmaceutical company Eli Lily and biotech company Regeneron are testing antibody treatments to Covid-19. Eli Lily started testing its treatment in 2,400 nursing home patients and workers this month. Regeneron is also in the process of testing its treatment on patients who have the virus, as well as people who might have come into contact with it.

Investing in biotech and healthcare

The news surrounding potential vaccines and treatments is changing daily, and it’s likely to be front and center through the remainder of the year. 

Stash offers healthcare and biotech ETFs, which you can invest in. Stash also offers single stocks in healthcare and biotech companies. Keep in mind that investing in any industry comes with risk and that the biotech industry has historically been a volatile one.

Remember that diversifying your portfolio of investments is an important part of the Stash Way. And as markets continue to react to the outbreak of Covid-19, investing for the long term is the way to go.

The post The Race is on With These Companies to Find a Covid-19 Vaccine appeared first on Stash Learn.

The $1 trillion plan, called the Health, Economic Assistance, Liability Protection, and Schools (HEALS) Act was announced on July 27, 2020. The HEALS Act is intended as a follow-up to the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was passed by Congress in March, 2020. However, the HEALS Act differs in some significant ways from the CARES Act.

HEALS Act vs.CARES Act

The rules around who will receive a stimulus check, and how much they’ll receive, will reportedly remain the same. Under the HEALS Act, if it’s passed by Congress, individuals who earn up to $75,000 would receive the full $1,200 payment. Married couples who make up to $150,000 would receive $2,400. For each additional $100 earned, the payments would decrease by $5. Individuals who make $99,000 or more and couples who make $198,000 or more would not receive payments.

Families would also receive an extra $500 for each dependent. While the CARES Act limited that $500 to dependents 17 and younger, the HEALS Act won’t apply the same age limit, so college age students would not be excluded. 

As a part of the CARES Act, unemployed Americans have received an extra $600 per week in unemployment. That extra money expires at the end of July, 2020. The HEALS Act would decrease the additional benefit amount to $200 per week. 

The HEALS Act is the Republican response to the bill passed by the Democrat-controlled House of Representatives in May, 2020. The $3 trillion Democratic bill, known as the HEROES Act, includes a second round of stimulus checks and an extension of the $600 weekly stipend. Republicans in Congress have suggested that the $600 stipend is too high, and gives people an incentive not to work.

What you can expect

Because of the gap between the $1 trillion Republican proposal and the $3 trillion Democratic proposal, negotiations are necessary and expected. But since both proposals include a stimulus check, it seems likely that you can expect to receive another check if you got one when the CARES Act was passed. 

Although details have yet to be worked out, here’s what happened the last time. Recipients who qualified automatically received payments via direct deposit or mail. People who enrolled in direct deposit for their 2018 or 2019 tax returns also received stimulus payments that way. (So if you haven’t already done so, now might be a good time to consider filing your taxes for 2018 and 2019.)

People who signed up for direct deposit of their tax refunds into their Stash banking accounts when they filed their 2019 taxes had relief money deposited into their Stash accounts. The U.S. Treasury also has an online portal, where users could securely enter their bank account information for a direct stimulus payment. You’re likely to be able to access it here. 

For people who don’t typically file tax returns, a group that includes many senior citizens, Social Security recipients, and retired railroad workers, the IRS said it would use information on the form SSA-1099 or form RRB-1099 to generate payments.

If you didn’t file your tax return for some other reason, such as not earning enough income, you can probably still use the IRS online portal to apply for a stimulus check.

Managing your finances during uncertain times

This second stimulus payment—if and when it is passed by Congress—is meant to provide another wave of relief to the millions of Americans affected by the Covid-19 pandemic. If you’re experiencing continued financial strain because of a layoff or lost work, you might use this payment for buying groceries or paying the bills.

If you can, consider putting some of the payment towards savings. It might be a good idea to pad your emergency and rainy day funds with extra cash in case financial stress continues or if something unexpected like a layoff happens. If you’ve found yourself with more savings than you typically have right now, maximize your savings by contributing more to your retirement fund or paying off debt.

You can find out more about managing your money during the Covid-19 pandemic here.

The post What the Next Round of Stimulus Checks Could Mean for You appeared first on Stash Learn.

At the end of July, 2020, the $600 weekly supplemental unemployment benefit included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, could end. 

What the CARES Act covered

Congress passed the $2 trillion CARES Act in March, 2020 as a way to provide economic relief to Americans affected by the Covid-19 pandemic. The bill included approximately $300 billion in direct stimulus payments (about $1,200 for most people) and added the weekly $600 stipend to existing unemployment benefits. 

However, the extra $600 from the federal government is currently set to end on July 31, 2020. But millions of Americans are still unemployed. Approximately 18 million people are unemployed. More than 1 million have reportedly filed for unemployment per week since March, 2020. Although the unemployment rate declined by 2.2 percentage points to 11.1% in June, 2020, the rate is still 7.6 percentage points higher than it was in February, according to the Bureau of Labor Statistics. 

What the future of the U.S. economy may look like 

Meanwhile, Covid-19 cases are on the rise in the U.S. The U.S. recorded more than 75,600 daily cases on July 16, 2020, a record number of daily cases. This day marked the 11th time the U.S. broke its daily case record in one month. 

As a result, some states have reinstated business closures. After initially reopening, California shut down indoor dining, bars, and more. Bars also closed in Florida and Texas, where Covid-19 cases are on the rise. The increase in case numbers and closure of businesses could mean that the improvement in the unemployment rate might be temporary. 

In fact, the Federal Reserve (Fed), the central bank of the U.S., said that it expects unemployment to remain high through the rest of the year, and beyond. The Fed predicted that 2020 will end with unemployment at 9.3%. Economic output is also expected to decrease by 6.5% at the end of 2020, compared to 2019.

What Congress could do

Congress is currently in session and Covid-19 relief is taking center stage. The Democratic-led House of Representatives passed another $3 trillion relief package in May, 2020, which was rejected by the Republican-led Senate, which wants a smaller bill. 

Democrats in the Senate reportedly hope to extend the $600 weekly unemployment benefit, while Republicans are more eager to create incentives for people to get back to work. The next round of relief could also include another stimulus check, an idea supported by President Trump. Since some of the unemployment benefits expire at the end of July and congress goes on recess in August, Congress is expected to hammer out another stimulus package (if there’s another one), in the final weeks of July.

Navigating unemployment

In the meantime, if you’re struggling financially as a result of the Covid-19 pandemic, consider continuing to pad your emergency fund and rainy day savings if you’re able. If you can set aside some of the money you might have received as part of unemployment or your stimulus check, think about trying to do so. And if you haven’t received a stimulus check yet and you think you should have, you can use the IRS’ tool to check the status of the payment. 

Make sure to file for unemployment if you’ve lost your job as a result of the pandemic. You can still take advantage from some of the extended benefits from the CARES Act. Be sure to keep up with our resource center to help you manage your money during the pandemic.

The post What Happens when the $600 Weekly Unemployment Boost Ends appeared first on Stash Learn.

With the unemployment rate current at 11%, the threat of Covid-19 infection still present in every state in the country, and tension boiling in cities around the United States, summer fun may seem harder to experience.   

But rest, relaxation, and fun are still important. According to the National Institute of Mental Health, stress can be dangerous for mental and physical health. Summertime play and adventure may help ease up some of those knots in your back (and perhaps in your mind, too). An investment in your health can be an investment in your whole life—social, financial, and otherwise.

In that spirit, we reached out to experts in health and finance to ask for simple, useful advice on how to have summertime fun in a safer way. The potential monetary costs represent a broad range, depending on how far you want to travel and how fancy you get when it comes to food and incidentals. But, remember, as always,  safety comes first.

Go camping

Cost factors: car fuel, food, camping equipment, access to parks

Potential cost per person: $15—$100 per day

Personal finance writer Lillian Karabaic, host of the podcast Oh My Dollar and author of A Cat’s Guide To Money, has a camping plan. She’s going to ride her bicycle 40 miles to camp at an Oregon state park that is currently projected to reopen in mid-July. It’s a very budget-friendly excursion.

“The overnight campsite fees are $5 for bikers, and I carry what I need on my bicycle to camp in a $30 tent,” Karabaic says. Assuming she packs $25 worth of groceries and other supplies, and perhaps stops for a socially distant $15 roadside lunch on her way to and from the campsite, this could easily be a gorgeous five-day athletic vacation for $90! 

“Bike touring gets me out in nature and is an affordable way to de-stress,” she adds. “Most of the costs are the cost of bringing extra food for all the calories I burn. In Portland, we’re lucky to have dozens of state parks within a day’s ride for a bit of an escape.”

Karabaic says that if you drive to go on your state park camping adventure, budget for extra gasoline and water. And since many rest stops will still be closed, devise an adventure that isn’t a terribly far drive from your home. 

Dr. Daniel Summers, M.D. has written about health and other subjects for Slate, The Daily Beast, and more. He’s a pediatrician in private practice in Maine who, like a lot of doctors in all areas of specialty, finds himself offering common-sense advice to people of all ages these days.

“If you decide that you’re going to travel, it’s on you to know how the pandemic is being managed at your destination, and be prepared to adhere to the rules,” he says. “In Maine, for example, it’s expected that you will quarantine for two weeks [upon arrival] if you’re coming from out of state.”

Dr. Summers adds, “It’s also important to consider the risks inherent in the place you choose to go. The more of a tourist draw, the more likely you are to get exposed to larger crowds, and to people from various places of origin that may be doing a better or worse job controlling the pandemic.” 

Take a day trip

Cost factors: car fuel, food, cost of access to parks and trails

Potential cost person: $20—100 per day

Personal finance writer Carmen Perez of Make Real Cents is a big fan of the day trip as opposed to something more expensive that might necessitate whipping out the credit card. She’s concerned that if a newly unemployed or furloughed person decides to use a credit card to pay for a fancy vacation, they may find the experience ruined by the fear of what will happen when they get home and attempt to navigate unemployment—and, of course, when those vacation bills come due.

“I think a better alternative would be to focus on a weekend or day trip somewhere to truly decompress and figure out next steps,” Perez says. But even a day trip requires advance planning. For example, Perez recommends shopping for snacks the day before the trip. This may ward off impulse buys.

Karabaic is also a proponent of a daylong outdoor adventure: “Many hiking trails will be reopening later in the summer for day trips, which is another way to get a bit of rest without the logistics of overnight camping.” Again, plan ahead, since state agencies will be limiting the number of passes available to hike on the more popular trails.

The states are taking such measures in order to limit the number of people crowding public parks. Dr. Summers knows this will be a challenge in his home state of Massachusetts as well as Maine, the location of his practice. Both states are huge tourist destinations for hikers, cyclists, and campers.

“I would advise people to choose a destination that’s less likely to put them into contact with large groups of people, who may or may not adhere to mask requirements or social distancing,” he says. 

In other words, those super popular hiking trails to the most Instagram-worthy vistas? Consider skipping them in favor of less dramatic—but potentially safer—views.

Do a house swap

Cost factors: car fuel, food

Potential cost: $0 – 100 per week

“Sometimes you just need a change in environment—and likely your friends do, too,” Karabaic says. She adds that while you may not be able to hang out with your friends, you can become a free version of an AirBnB for one another. You can even swap houses within the same city!

 “I know I’d like to stare at a different street out my window after three months looking out the same window,” she says.

A house swap may seem unusual, but it could prove incredibly nurturing and relaxing. You do deserve nice things during this time! As Perez says, “Everyone is mentally struggling …You have to give yourself some grace during this time and try to keep the negative self-talk to a minimum. If you find yourself feeling overly indulgent or wasteful, take a step back for a moment and try to understand the root of the problem.” 

If none of these ideas appeals to you, try this one from Perez—challenge your family members or roommates to get creative. What kind of vacation can you do on one tank of gas and $100 between all of you? Throw the dream of pricey glamour out the window and brainstorm something realistic. It’ll likely spark some laughter, and may take you on a safer, cheaper, and more exciting adventure than you’ve ever imagined.

The post How to Take a Safer Summer Vacation During Covid-19 appeared first on Stash Learn.

In fact, as of mid-March 2020, sales at grocery stores had increased by 79% from the previous year as people stocked up for stay-at-home orders in place in many states. The Covid-19 pandemic has also reportedly shifted what people are buying at the grocery store too. The increased demand from consumers, as well as shutdowns caused by the virus, has put a strain on food suppliers and is expected to cause shortages of some items, such as meat. 

Here’s a closer look.

How the coronavirus has affected the way Americans shop:

Because people are eating at home now more than ever, what they’re shopping for has changed, increasing the demand for some common items, and in some cases driving up prices, at the store during the pandemic: 

• The price of avocados reportedly shot up 60% between early March and late April, 2020, as demand has increased. The price of one box of avocados from Mexico increased from 300 pesos to 490 pesos, or nearly $20. 
• Between March 2019 and March 2020, sales of citrus increased 50%. Futures for frozen orange juice concentrate, which is a metric that demonstrates how prices are likely to shift, increased 25%. 
• Purchases of flour have climbed as consumers bake away the boredom and the panic. In March, 2020 flour-maker King Arthur experienced a 268% increase in flour sales, to 6.1 million bags, compared to March 2019. 
• Shoppers reportedly spent 3% more on cereals and bakery products in April 2020.
• Meat sales increased by 101% in March and April 2020, compared to the same two months in 2019;  Over the same time period, potato and onion sales increased by 81%. Frozen meat, poultry, and seafood sales surged 77%, and frozen meal sales increased by 60%. 
• Sales of plant-based meat alternatives increased by $25.7 million in the nine weeks ending on May 2, 2020, a 264% increase. (Fresh meat sales increased by $3.8 billion during that timespan.) 
• Shoppers also flocked to frozen comfort foods since the beginning of the pandemic. Pizza sales have increased 94%, and purchases of appetizers and snack rolls have increased 82%. Frozen cookie dough sales also increased by more than 450%.
• Americans also bought more alcohol than they did in March, 2019. Sales of tequila, gin, and pre-mixed cocktails increased 75%, sales of wine increased 66%, and beer sales increased 42%. 

How the supply of food has changed:

Groceries, like everything else you buy, depend on supply chains. When demand for something increases, the supply has to rise to meet that demand, or prices will increase. When there’s an excess supply of an item and the demand doesn’t match that supply, prices are likely to decrease. 

The coronavirus has shifted the supply chain of groceries. On one hand, demand is stronger than ever for grocery staples and factories and production facilities haven’t been able to keep up, leading to shortages. Meanwhile, while farms are sometimes packed with animals that can be turned into meat, some of the processing facilities have closed because of the virus, also contributing to shortages. And on the other hand, the closure of restaurants, some of the biggest purchasers of groceries, has led to a surplus of supply of some products. 

Here are some examples: 

• Confronting an excess of milk, farmers have dumped an estimated 3.7 million gallons of milk daily, according to the Dairy Farmers of America. Growers of berries, squash, and other produce are destroying their own crops rather than see it rot.  
• While demand for meat and poultry remains high, the virus has forced some production facilities to close in the U.S. As a result, beef production decreased by about 25% and pork production decreased by 15% in April, 2020 compared to the same month a year ago. 
• Examples of meat processing facility closures include pork processor Smithfield, which shuttered plants in South Dakota and Illinois after employees at the plants contracted the coronavirus. Tyson Foods also closed two of its pork plants temporarily. Meanwhile, Hormel Foods shut down two Jennie-O turkey facilities in Minnesota and JBS stopped operations at a beef facility in Wisconsin.
• Farmers have started shooting and gassing their pigs to manage their surplus. Those pigs would’ve gone to those facilities to be slaughtered for pork products. 
• The coronavirus has also forced processing facility closures in Brazil and Canada, which together with the United States, account for 65% of the world’s meat production.

As a result of the squeeze on meat production, some grocery stores including Kroger and Costco are reportedly limiting the number of meat products shoppers can purchase. Also as a result of shortages, one-fifth of Wendy’s locations have run out of hamburger meat during the pandemic.

Budgeting for the grocery store

You may have already experienced meat shortages at the grocery store. As you continue to make your runs to the store, remember that you can freeze meat, usually for several months. 

As your life and habits shift, your budget is likely to change too. If you find yourself spending more at the grocery store than you usually do, you may want to adjust your budget. And if you don’t have a budget, now is a great time to create one. Figure out your monthly income, and your expenses, both fixed and variable and then categorize your income according to the expenses, leaving some room for savings and investing if you’re able. 

If you’re able to invest regularly, you can start investing in single stocks and ETFs on Stash with any dollar amount today. 

For more resources on the coronavirus, visit Stash’s page on managing your money during the pandemic.

The post Here’s How the Coronavirus Pandemic is Shifting America’s Food Supply appeared first on Stash Learn.

While patients suffering from Covid-19 continue to flood hospitals, companies including Gilead Sciences, Moderna, and Sanofi, are racing to find solutions to three of the biggest issues at the center of the pandemic: inadequate testing, vaccines, and treatments. The coronavirus has infected more than 3 million people and caused more than 200,000 deaths worldwide. 

In addition to the health crisis caused by the virus, more than 26 million Americans have lost their jobs as companies have closed their doors in response to state and local stay-at-home orders. Markets have also experienced volatility in response to the virus’ spread since the end of February, 2020. 

Some experts predict small businesses such as restaurants to close permanently because of the financial losses they’re currently experiencing.

Included in the essential services that continue to operate are the people developing the science and technology to help stop the spread of the virus. Despite the turmoil in many industries, biotech and pharmaceutical companies have a unique opportunity to help find ways to slow the spread of the virus and treat patients.

Testing for the virus

Hospitals face a lack of adequate supplies of tests for the coronavirus. The Food and Drug Administration (FDA), a government agency that oversees the safety and efficacy of food and drugs, approved an at-home test kit from diagnostics company LabCorp on April 21, 2020. This kit would allow people to self-administer a nasal swab and send it to the lab for testing, without having to leave their homes. While LabCorp is initially offering the testing kits to first responders, the company intends to make the tests available to consumers for $119 soon.

In addition to tests for the actual virus, some companies are developing tests for the coronavirus antibody, which could identify people who had the virus but didn’t show severe symptoms.  A positive test for the antibody could indicate that a person is immune to the virus, at least for a period of time.

U.S. companies Biomerica Inc. and Chembio Diagnostics Inc., and South Korean company Sugentech Inc. started selling their own antibody tests outside of the U.S. Meanwhile, Roche AG, a Swiss pharmaceutical company, built testing kits for both the virus and for the antibody. 

When will a vaccine be ready?

Biotech and pharmaceutical companies all around the world are rushing to develop a vaccine for Covid-19. Development, testing, and production of vaccines typically lasts two to three years, according to Bloomberg. 

Researchers must test vaccines in the lab, on animals, and eventually on people. Because of how many rounds of testing vaccines need, it can still take 12 to 18 to get a vaccine on the market. Here are some of the companies–large and small–developing vaccines: 

• Biotech company Moderna is working with the National Institute of Allergy and Infectious Diseases on a vaccine. The company began its first phase of human trials in March, 2020 and expects to kick off its second phase of human trials later in the spring of 2020. Moderna received $483 million in funding from the U.S. government to continue its work on the vaccine.
• Big pharma company Johnson & Johnson reportedly plans to start clinical trials of a coronavirus vaccine. The U.S. Department of Health and Human Services allocated $500 million in funding to Johnson & Johnson’s vaccine production. 
• Biotech company Inovio Pharmaceuticals started its first phase of human trials, testing on 40 people with its vaccine.
• Biotech Novavax anticipates starting human trials of its vaccine in mid-May 2020. 

Treatments for the virus

Biotech and big drug companies are also hoping to develop effective treatments for Covid-19. Although the Trump administration has promoted a drug used to treat arthritis and malaria called hydroxychloroquine as a possible treatment for the virus, evidence seemingly doesn’t support that claim yet. 

Gilead Sciences entered the third phase of clinical trials of its antivrial drug called remdesivir on people who’ve contracted the virus. The company currently tests the drug on patients with moderate and severe cases of the virus but results of the tests are reportedly inconclusive.

Regeneron Pharmaceuticals and Sanofi to test a treatment for the virus called Kevzara, which was previously developed to treat rheumatoid arthritis. The companies started the next round of clinical trials of the drug on March 16, 2020. Roche Holding AG is also testing a rheumatoid arthritis drug for the treatment of the virus and is in the third phase of trials.

Other companies working on treatment testing include Amgen Inc, Adaptive Biotechnologies Corp, and CalciMedica Inc.

More on the biotech industry

The biotech industry has experienced a surge in mergers in recent years. New tax laws that have encouraged large pharmaceutical companies to “repatriate” cash overseas has given large companies the funds to buy small startups with promising new treatments, according to reports. 

Similarly, big pharma companies, many of which have lost patent rights for blockbusters like the statin Lipitor, the erectile dysfunction drug Viagra, and the pain relief medication Lyrica, may be looking to acquire smaller biotech firms with promising new drugs. 

Here are some examples: 

• Bristol-Myers Squibb acquired cancer drug developer Celgene in 2019 for $74 billion. (Celegene acquired Juno Therapeutics for $9 billion in 2018.)
• French company Sanofi said it would purchase U.S. drugmaker Bioverativ for $11.6 billion in 2018.
• F. Hoffmann-La Roche announced plans to acquire a gene therapy company called Spark Therapeutics for $4.8 billion in June, 2019. 

The healthcare industry is massive in the U.S., employing more people than any other. In 2017, the number of people working in health care surpassed the next two largest industries, manufacturing and retail.

In 2018, Americans spent $3.65 trillion on healthcare, more than in any other developed country in the world, according to Fortune.  And that spending is likely to increase 5.5% per year until 2027.

Keep in mind that investing in any industry comes with risk and that the biotech industry has historically been a volatile one.

Investing in biotech and healthcare

You can invest in the healthcare and biotech industries on Stash. Stash offers healthcare and biotech ETFs. Stash also offers single stocks in healthcare and biotech companies. 

Remember that diversifying your portfolio of investments is an important part of the Stash Way. And as markets continue to react to the outbreak of Covid-19, investing for the long term is the way to go.

The post How Biotech and Big Pharma are Racing to Find a Cure appeared first on Stash Learn.

Sure, time travel isn’t possible, but take a look at what would happen anyway. In fact, if you had used Recurring Transactions’ Auto-Invest feature to invest $10 every week from 2008 through every market up and down since then, your investments could have been worth $13,284.

That’s why, looking forward through times of market volatility, it’s important to consider continuing to invest small amounts regularly.

Recurring Transactions is a set of financial management tools from Stash, including Round-Ups and Set Schedule, that you can use to save and invest money automatically, on your timeline. With Auto-Invest, you can save a specific amount of money into your Stash investing accounts on a schedule that works for you. Auto-Invest can help you make investing a part of your financial routine. While Recurring Transactions was created more than a decade after the 2008 financial crisis, we can potentially use it to provide insights into the future. 

If you could turn back time

Here’s what your investing account might have looked like if you could have used Set Schedule from 2008 until March 2020: 

Disclosure: Past Performance does not guarantee future results. The rate of return on investments can vary widely over time, especially for long term investments including the potential loss of principal. For example, the S&P 500® for the 10 years ending 1/1/2014, had an annual compounded rate of return of 8.06%, including reinvestment of dividends (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009).The S&P 500® is an index of 500 stocks seen as a leading indicator of U.S. equities and a reflection of the performance of the large cap universe, made up of companies selected by economists. The S&P 500 is a market value weighted index and one of the common benchmarks for the U.S. stock market. Calculations do not reflect the deduction of advisory fees and does not take taxes or withdrawals into consideration. The hypothetical assumes individual was invested in the S&P 500 index (assuming a 100.68% cumulative growth rate for this time period) from the time period of 11/30/2007 – 3/6/2020 with a $10.00 weekly investment contribution. This example assumes No other account account deposits, investments, fees, or dividend reinvestment. Through the power of compounded growth, assuming a cumulative growth rate of 100.68% the hypothetical value would be $13,824 on a $6,400 total contribution for the time period. Data source: FactSet.

If you had invested $10 per week in a diversified portfolio, using Set Schedule from 2008 to now, you could have more than doubled your investment of $6,400 dollars. Through all the market dips, including the most recent one that started in February, 2020 related to the Covid-19 pandemic, you could have almost $14,000 in your portfolio. 

Back to the future

What you can learn from this model is that you shouldn’t be scared of market uncertainty. If you’re able to continue contributing a small amount of money on a regular basis to your investing accounts, you should do so.

The idea behind Set Schedule is something called dollar-cost averaging (DCA). DCA means investing over a specified period of time, for example months or even years, using a fixed amount of money. DCA allows you to buy shares of stocks or ETFs at different prices over the course of that time period. Sometimes you’ll buy less at a higher price, and sometimes you’ll buy more at a lower price, depending on the market.The price at which you buy those shares should average out over time. Compounding can also help amplify your investments over time.

No one can predict whether markets will go up or down. And dollar-cost averaging can be an important way to defend your money against market changes. By using Set Schedule, you can invest regularly and automatically in your diversified portfolio, without any extra effort. And by setting your investing schedule to automatic, you’ll remove emotions from the equation which might otherwise tempt you to time the market. That means you’ll be less likely to buy when stock prices are high, and sell when stock prices are low.

Investing with the Stash Way

Investing regularly is part of the Stash Way, our investing philosophy. The Stash Way includes regularly investing small amounts of money for the long term, in a diversified portfolio of stocks, bonds, and ETFs. 

You can start investing on Stash with any dollar amount.

The post How Investing Through Volatile Markets Can Increase Your Portfolio appeared first on Stash Learn.

A lot depends on your gender and age group, according to a recent financial outlook survey by Stash,* which asked more than 12,000 customers in March, 2020, how their financial situations might have changed since President Trump took office.

The survey found that as Trump’s first term comes to an end, and as the 2020 election approaches, users are split over how the administration’s policies have affected their personal finances. 

The survey also found that the coronavirus known as Covid-19, which has rocked the global economy, has also affected how customers are spending their money. The coronavirus and its impact on Americans’ health and personal finance could color the upcoming presidential election. 

Findings from the survey

More than a third of all users said their financial situations had improved since President Trump took office, while 22% said their situation had worsened. Forty-three percent of users said that their situation remained unchanged.

However, men surveyed said their finances had improved more than women did. More than 40% of men responded that their financial situation is better than it was before the Trump administration took office, while only 25% of women responded that way.

The survey also found that 25% of baby boomers, between the ages of 56 and 74, said their financial situation has worsened over the course of Trump’s first term. One quarter of baby Boomers who reported that their situation had gotten better attributed the improvement to tax reform, compared to just 12% of millennials. While less than a quarter of Gen Z, defined as those between the ages of 18 and 24, said their financial situation had deteriorated, more than a quarter of this age group attributed it to lack of wage growth, while 17% said it was because of high housing costs.

There were also differences in results according to household income and race. Users who earn $50,000 or less in household income were more likely to report that their financial situation had worsened during Trump’s presidency by eight percentage points. Hispanic and African American users were more likely to respond that way by seven percentage points.

Background on current economic policies

Over half of the respondents who said that their situation had improved said the change was due to wage growth, while 15% attributed it to tax reform from 2017. Of the 22% who said their situation has worsened, 30% attributed that change to lack of wage growth and almost 20% attributed it to tax reform.

In 2017, Trump presided over the biggest tax cut in a generation, which reduced the top ordinary income rate to 37% from 39%, doubled the standard deduction for ordinary taxpayers, and slashed corporate tax rates. Despite wage increases and 50-year low unemployment during Trump’s first term, unemployment rose to its highest level since the Great Depression in March 2020 because of the coronavirus pandemic. 

Looking ahead to the election 

In fact, the pandemic is already affecting the way some Americans are spending their money. Nearly 40% of survey respondents said that they are spending less money in response to the pandemic than they were before. (Slightly more women—37%— said they’ve been spending less due to Covid-19, compared to 34% of men.

As American leadership continues to react to the pandemic and the financial turmoil it’s causing, the coronavirus could become an important part of the upcoming general election. Heading into an election season in the middle of a pandemic, 30% of respondents said they felt fearful about their financial situations, while 30% said they felt hopeful. Forty percent said they felt neutral. 

While no one can say with certainty what will happen during the pandemic or the election, you can do your best to maintain your financial health by budgeting, saving, and investing small amounts regularly for the short-term and the long-term.

The post How Stashers Feel About Their Finances Going Into Election 2020 appeared first on Stash Learn.

In fact, hundreds of thousands of gig workers, grocery store employees, and healthcare providers–called essential workers during the national crisis–are on the frontlines, keeping critical parts of the economy operational, at great risk to themselves. Many don’t have adequate protective equipment, such as masks and gloves, to keep them safe as they deliver packages, stock shelves, and provide other critical services. 

As a result, some essential workers are threatening to strike if they don’t receive “hazard pay” to compensate them for the extra risk. In fact, shoppers for Instacart, the same-day grocery shopping and delivery app, announced on March 30, 2020 that they would go on strike if they don’t receive an additional $5 in hazard pay, as well as protective equipment such as hand sanitizer and masks. 

What is hazard pay and why is it important?

Hazard pay isn’t a new concept. In fact, the Department of Labor defines it as extra compensation that employers might provide for performing hazardous work that causes physical discomfort or distress not adequately alleviated by protective devices.

Companies are not required by law to grant their employees hazard pay, according to the Fair Labor Standards Act, which outlines the federal minimum wage and overtime standards in the U.S. Nevertheless, the coronavirus has opened up new discussions about hazard pay at many essential businesses. 

More than forty states have closed some or all “non-essential” businesses to slow the spread of Covid-19. However, essential businesses such as grocery stores, pharmacies, and delivery services remain open, putting those essential workers at risk of getting the virus.

Employees demanding hazard pay

Since the coronavirus started spreading in the United States, the number of people downloading grocery delivery apps has increased. Since February, daily downloads of Instacart have reportedly increased by 218%. At the beginning of March 2020, grocery delivery sales increased by an estimated 65% from the previous year. While this means more work for Instacart shoppers, it also means increased risk.

In addition to the $5 of hazard pay, Instacart employees are asking leadership to increase the default tip percentage to 10% to encourage users to leave a larger tip during the outbreak. Shoppers typically earn $7 to $10 before a tip per order. Instacart employs 200,000 people and planned to add 300,000 more during the next three months in response to the pandemic. 

Instacart isn’t the only organization that is seeing employees demand hazard pay and protections:

• Amazon workers at a warehouse on State Island in New York City walked out of the warehouse on March 30, 2020, claiming that company is withholding the number of employees in the warehouse who’ve tested positive for the virus. Amazon reportedly later fired one of the employees who walked out for violating quarantine protocol. 
• Whole Foods employees also organized a sickout for March 31, 2020 in order to pressure Amazon, which owns Whole Foods, to pay employees hazard pay that would double workers’ wages and to provide paid leave for self-quarantining employees. 
• In response to the outbreak, Whole Foods and Amazon have increased worker’s wages by $2 per hour while Trader Joe’s and Kroger’s have promised bonuses to workers, according to Forbes.
• More than 100,000 federal workers, including people who work at federal prisons, are seeking a 25% increase in pay during the outbreak, according to Bloomberg. 
• President Trump is reportedly considering giving hazard pay to healthcare providers treating coronavirus patients in a relief package that would follow the $2 trillion bill passed on March 27, 2020.

Staying safe during the outbreak

If you’re working at an essential business during the coronavirus outbreak, you might want to ask your employer about hazard pay as well as proper protective equipment for your work.

The Center for Disease Control (CDC) recommends that any employees with symptoms of the coronavirus stay home and should isolate themselves until they are ready to return. 

If you’re experiencing financial hardship because of the coronavirus, consult Stash’s Guide to Financial Help During Covid-19 for various resources, including information on filing for unemployment and qualifying for paid leave. 

The post Workers Are Demanding Hazard Pay. Here’s What That Means. appeared first on Stash Learn.

 As businesses such as restaurants, salons, car dealerships, and more have shut their doors to stop the spread of Covid-19, nearly 3.3 million Americans have lost their jobs (temporarily or not). Here are some tips on how to budget when the economy is volatile: 

Build your budget

If you don’t have a budget, now is the time to create one. You may not be able to control the news, but you can and should control your spending. And a budget can act as a financial blueprint, guiding your everyday life and spending habits, helping you stay on track with saving and investing goals.

There are various different budgets you can use including the 50-30-20 budget (a percentage-based budget) or the zero-sum budget. No matter which one you choose, start by figuring out how much money you have coming in each month. Then determine how much you spend on essential or fixed expenses, how much you spend on variable or nonessential expenses, and how much you want to save. 

As you’re taking into consideration a volatile economy, you may want to allocate more of your monthly budget to savings and cut down on nonessential expenses to prepare for how your circumstances may or may not change. 

Cut the nonessentials

Now is the time to cut down on nonessential spending, which includes spending that you do on activities or items that you want but don’t necessarily need such as Netflix, Hulu, a spiral vegetable shredder, or a workout bike you might never use.

“Work out how different crisis financial situations would play out,” says Jason Patel, founder of career prep company Transizion, based in Washington, D.C., says. “Determine what you would need if you brought in only 50% of what you currently bring home. Then try 75% and so on.” In the current economic situation, Patel suggests cutting anything that doesn’t relate to health or medicine, rent, groceries, and getting to your job.

Of course, If you’re going to be stuck inside for days at a time, you still want to leave room for some non-essential expenses, like ordering takeout or renting a movie. But maybe cut down on extraneous online shopping like buying new clothes or stuff for your home. 

Access your rainy day fund

Don’t be afraid to dip into your rainy day fund or emergency fund if you experience some bumps in your financial life. That’s what these funds are for. If you don’t have one, think about creating one and start contributing to them regularly. 

Remember that a rainy day fund should contain at least $500 to $1000 for you to draw on to pay down credit card debt or your rent if you have a sudden change in income. Your emergency fund should contain enough money to carry you through three to six months of all your expenses, should something such as a layoff or illness happen.

Be careful with credit cards

It’s too easy to rely on credit cards if you have a sudden drop or loss in income, but that’s probably not a good idea. At some point, you’ll need to pay off that debt. “You might find yourself wanting to lean on credit cards to get you through a financially tight period,” says Nathan Grant, a senior analyst for Credit Card Insider, Syracuse, New York. “But avoid using them for purchases you can’t pay off within a month so you don’t affect your credit and waste unnecessary money on interest fees.” If you don’t have the cash to pay off the debt, don’t spend it in the first place. 

Grant also recommends staying on top of any existing debt that you might already have so that you don’t let it get out of control. He suggests making sure you’re at least paying the minimum amounts due on any credit cards or loans to prevent damage to your credit. Consider attacking your debt with the avalanche, or the snowball method. Having debt can make matters worse if you hit a rough patch.

Budgeting is just the start

The best way to weather the storm is to prepare your own finances and stay the course. 

A budget can help show you the way by providing a financial structure.

Think of your financial plan as a building block that can also include longer-term goals such as investing and saving for retirement. 

As you manage your money, consider the Stash Way, which encourages you to think and prepare for the long-term, while investing small amounts regularly in a diversified portfolio.

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