US financial news | Summary news 22 August
US financial news: live updates
Headlines: Tuesday 22 August 2023
- $39 billion of student debt being wiped this week.
- 20% of student loan borrowers to pay $500 monthly when payments resume, according to study
- 30-year fixed-rate mortgage weekly average hits highest level in 20 years at 7.09%
-Minimum wage in Florida set to increase in September
- New requirements to receive SNAP benefits in 2024 set to take effect soon
- Gas prices are up this summer as extreme heat hampers oil refinery operations
- 187,000 jobs added in July, unemployment falls to 3.5%
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Supplemental Security Income (SSI) recipients will receive two payments in September.
According to SSA’s schedule, SSI payments are sent on the first day of each month. However, if the first day falls on a weekend, the payment will be sent in advance. If the first of the month falls on a Saturday or Sunday, the payment for that month is sent the Friday before during the previous month.
Medicaid is a health insurance program that is funded jointly by federal and state governments which strives to help low-income individuals have access to healthcare.
Although the federal government sets some basic ground rules, each state can choose whether to offer more healthcare services than those mandated.
The District of Columbia has the highest income limits for eligibility...
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An emergency fund is a designated savings account or pool of money set aside to cover unexpected or unplanned expenses that may arise in your life.
These expenses can range from medical emergencies to sudden job loss, car repairs, home repairs, or any other urgent financial needs that you didn’t anticipate.
What is an emergency fund?
A recent survey shows that more and more Americans are living from paycheck to paycheck and do not set aside any money, with 67% saying they don’t have a big enough emergency fund to cover a sudden expense of $400.
This is a rather small amount in the scheme of major life events, but even if you have much more than that, it may still not be enough to cover emergencies.
The vast majority of American households lack flood insurance despite the risk being present in all 50 states and increasing as the climate changes. When water inundates a property, those without flood insurance can expect hefty out-of-pocket costs to clean up and repair as regular homeowner's insurance does not cover flood damage.
The cost of acquiring flood insurance pales in comparison to the costly damage that just an inch of water in your home can cause.
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To receive SNAP benefits, it is necessary to meet certain requirements such as meeting gross and net income limits, resources, among others. Despite being a federal scheme, each state administers its program, and the requirements may vary in different areas.
The Food and Nutrition Service of the United States Department of Agriculture establishes certain general criteria, which usually change each year, taking effect each October. Benefit amounts also change annually.
After the Fiscal Responsibility Act of 2023 was signed into law, some requirements to be able to receive SNAP benefits have changed and will go into effect very soon.
Gas prices dip after steep summer rise, but potential for spikes in future
Gas prices since early July jumped on average nationwide by nearly 40 cents to $3.86 by mid-August according to GasBuddy data, an increase of over ten percent. Since then, drivers have seen the cost per gallon retreat slightly with the biggest drop occurring over the past week. However, the company warns that there could be further price spikes at the pump as the nation moves deeper into the hurricane season.
30 year fixed rate mortgage weekly average hits two decade high
The weekly average rate for a 30 year fixed-rate martgage broke the 7% mark and reached its highest level in over 20 years for the week ending 17 August according to Freddie Mac data.
Mortgage rates have been trending up in the US. This report details how these rates will evolve, how much they will rise and how far they can go.
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Each month, the SSA sends benefits to retired workers and survivors; that is, the children, spouses, widows, widowers, or parents of a deceased beneficiary.
The SSA also sends disability benefits from the Supplemental Security Income (SSI) program and Social Security Disability Insurance (SSDI).
Some recipients can receive up to $914 on Sept. 1. Find out if you are one of these beneficiaries, as well the full schedule for the month.
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Payments are often on time and late payments only take place on rare occasions, so if you don’t receive your Social Security check on the scheduled date, SSA recommends contacting your bank or financial institution first.
If the bank hasn't received the money, then you should contact Social Security offices directly to report a missing, late, or stolen payment.
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Currently, the standard minimum wage in Florida is $11 - but this amount is to rise to $12 from 30 September 2023.
What’s more, automatic increases of $1 are scheduled to take place every year until 2026, as follows.
A 529 plan is a tax-advantaged savings plan in the United States designed to help individuals and families save for education expenses.
One of the main advantages of 529 plans is the potential for tax benefits. The earnings grow tax-free and withdrawals are not subject to federal income tax if they are for education purposes. If not then they have a 10 percent penalty.
There are two types of 529 plans: college savings plans and prepaid tuition plans.
Choosing where to retire is not an option for many people. A Census Bureau report from 2022 found only 6.2 percent of people over the age of 65 move in a given year.
But if you were to move in retirement, what are the options? Bankrate has been studying people’s options for each state based upon these factors and the winning state may come as a surprise.
The US is an expensive country to retire. Desirable places, be it big cities or the coast, cost a lot to live in. Retiring before being eligible for Medicare means healthcare costs can be astronomical, a particular worry for people marching toward old age.
Another option can be to jet away to Europe. These are the best place to move to but there will be consequences for those you may be displacing.
Good morning and welcome to AS USA's live financial blog!
We will be bringing you the latest on SNAP benefits news Social Security updates and student debt plans, as well as other financial news affecting US consumers as policymakers continue to work to tame inflation.