enRICHed: volume 167
after the storm…
Sunday February 01, 2026
Volume 167
Hey besties,
There’s a lot going on in the world right now and rightly so, people are terrified. Between the news, it feels like there’s little opportunity to protect ourselves and our neighbors. At times like this, we can’t avoid talking about money. Money gives you the freedom and options to take care of yourself and your loved ones, especially your kids. Raising financially savvy kids by helping them build money habits will shape their entire future! From allowances and chores, to teaching them about saving vs. spending, delayed gratification, and even investing — getting your kids started on the right financial path can feel overwhelming when no one ever taught us this stuff growing up. And whether your kids are toddlers just learning to count coins or teens asking for their first credit card, these conversations are some of the most important gifts you can give them. That’s why this week on Networth and Chill, I’m breaking down how to actually set your kids up for financial success. Because giving them love and support is everything but giving them financial literacy is what sets them up to thrive!
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As a reminder:
HYCU, pronounced haiku: how the news impacts you and your wallet, aka How You Can Use
The Prosperitea: think discount codes, non-boring finance articles, sales, and personal links from the week. The fun stuff 😉
We love your comments, but please remember to keep it positive! And don’t take investing advice from anyone who isn’t your registered financial advisor!
Now that you’re up to speed, let’s get you enRICHed.
‘Tis the Season — Tax Season
We may not get fun decorations for this season, but it doesn’t have to be a drag. Tax season kicked off this week, and the IRS is expecting about 164 million returns. There are also a lot of changes that have entered the arena because of the Big Beautiful Bill Act, so if you’re already stressing about where your receipts are, never fear! Here’s everything you need to know about the 2026 filing season.
New changes: If you are 65 and older and pay taxes on Social Security income, you can claim a new $6,000 federal deduction, available through the 2028 tax year (Married couples where both spouses qualify can deduct up to $12,000). Hourly workers can deduct qualified overtime pay, capped at $12,500 per return ($25,000 for joint filers), with the benefit phasing out at higher incomes. And for rich people: the Big Beautiful Bill has temporarily raised the cap on the state and local tax (SALT) deduction, allowing some higher-income filers in high-tax states to deduct more on their federal returns.
It’s not just the law that’s affecting our tax filing process, too. The IRS is entering the 2026 filing season after a 27% workforce cut, which just means there’s less people to get through our entire country’s 1040 forms. While they said that the process should be seamless for people who are filing error-free electronic returns, you should prepare for delays and missed calls if you end up running into issues with your forms.
Refund updates should show up within 24 hours, according to the IRS website, but if you decide to snail mail it in, it could take closer to a month…and that’s with no mistakes. Don’t forget that we’re also staring down the barrel of another potential government half-shutdown, which could slow things down even more, so my recommendation is to just get it out of the way now before things get too hectic.
HYCU; If you don’t want to be stuck on hold listening to that endless smooth elevator jazz, be sure to file your taxes electronically early this year, and include a direct deposit for your return to make sure that the process goes seamlessly. There are ways to get extra little perks for your hard work, too — airlines like Delta and American Airlines are giving loyalty members a few bonus miles for purchasing tax softwares like TurboTax and H&R Bock, so you can at least dream about a vacation while you’re slogging through your life admin. No matter how you file, though, double check everything before you submit (the deadline for most is, of course, April 15), and if you really aren’t sure, phone an accountant for help. You got this, besties, and happy filing!
More Tech Layoffs
January is often known as layoff season, and this year has been no different, specifically with huge job cuts coming out of Big Tech: 16,000 people were laid off at Amazon this week, and Meta cut 1,500 employees from its Reality Labs division. Other big industry employers like Dow also got hit, with 4,500 jobs being cut this week. What’s the common theme? All of the layoffs were tied to the push towards automation and artificial intelligence.
It’s no secret that it’s been a bad time for the job market, especially in the tech sector. Last year, US tech companies announced roughly 154,000 layoffs — a 15% jump from 2024 and the most of any private-sector industry. Amazon, Microsoft, Meta, Google, and Tesla each announced plans to cut at least 10,000 employees in recent years, according to Business Insider, and software engineers went from thinking their resumé was infallible to now flooding a market that just doesn’t have enough jobs.
The layoffs aren’t going to be slowing down, either, as more companies are probably going to continue to announce job cuts ahead of their Q1 earnings reports. A lot of them will be citing AI as a reason for the cuts, which I’m sure will make us all feel really good and warm about the direction of our world. But here’s what you can do to feel prepared for the future: check the WARN notices so you can predict your layoff before it happens, and reach out to your network for any opportunities that can help you jump ship before you get caught out at sea. It’s not a bulletproof solution, but it can help those nagging anxieties that keep you afraid all the time.
HYCU; If you were laid off this week, here is what I recommend you do. In the first 24 to 48 hours, if the company is pressuring you to sign a severance package, do whatever you can to not sign it. Talk to a friend or lawyer first to see if you can negotiate a higher payout. You have power in your severance negotiations, and I recommend you use as much leverage as you can. Also, ask HR for a layoff letter to show that you have been laid off for reasons outside your control in order to help you with your eventual job search. I would also register for unemployment as soon as you possibly can (how to find your state’s unemployment benefits application is linked here). And after that, have a drink, take a walk, lay down on the couch and grieve. Losing your job is hard, and you should take a pause before jumping right back into the job hunt.
We’re in the Big (Ivy) Leagues
All high school students, strap in for some huge news: this week, Yale University announced that families with an income below $200,000 will get free tuition. You heard me right. Free. Zero dollars. Gratis. No money at all.
Beginning in the 2026-2027 academic year (that’s this September, seniors!), the historic Ivy League school will give families making less than $200,000 scholarships to cover tuition — and those whose incomes are less than $100,000 will have all costs eliminated, including housing and meal plan. For context, Yale tuition runs about $90,000 per year. 56% of the undergraduate class at Yale receive need-based aid, while 1,000 students qualify for a no-cost degree.
Of course, Yale isn’t the first elite university to do this. They’re following in the steps that Harvard University, the University of Pennsylvania (UPenn) and the Massachusetts Institute of Technology (MIT) took last year and the year prior, which was the same thing: all students whose families earn under $200,000 get free tuition, and students who come from under $100,000 households get entirely free rides. Other schools like the City University of New York (CUNY) have long held the standard that students whose families earn under $125,000 automatically get free tuition.
HYCU; A huge reason that many bright young students don’t even try to go for the Ivy Leagues and elite universities is simply the cost of going there, but initiatives like these will be pivotal in opening up doors for burgeoning talent. If you’re thinking about applying to college but not sure if your dream school is even affordable, check to see what financial aid packages you could qualify for before writing it off. It might surprise you! Of course, even if your household earns above $200,000, it doesn’t mean you’re out of the running to qualify for financial aid. There are also still plenty of merit scholarships from private companies and federal initiatives that anyone can earn. And for everyone older who shelled out their life savings for tuition, we will just have to be jealous of you.
Maria asks, “How do you find the correct tax withholding?”
Great question! The core issue with most withholding problems is that your W-4 might not reflect your complete financial picture. Life changes throughout the year - you get married, have a baby, pick up a side hustle, or your spouse’s income changes. Your W-4 needs to account for ALL income sources and family situations, not just what it looked like when you first filled it out, so we need to take a systematic approach. Gather your recent pay stubs and any 1099s if you have side income. And then head to the IRS Tax Withholding Estimator - it’s the most accurate tool for getting this right. The estimator is free on IRS.gov and considers your actual situation instead of using generic assumptions. You’ll input your current income, filing status, and any major changes from last year to calculate exactly how much total tax you should owe. The tool calculates your total tax liability - that’s your target. Compare that to what you’ve already paid through withholding, and the difference shows whether you need to adjust. The adjustment part is straightforward - if you’re on track to owe money, increase your withholding by updating your W-4 with HR. If you’re getting too big a refund, you can reduce withholding to keep more money in your paycheck throughout the year. Remember, a refund means you gave the government an interest-free loan of your own money!!! You don’t want that! And then make sure to update your W-4 whenever major changes happen - new job, marriage, divorce, baby, significant side income, or spouse’s employment changes. You’re not locked into your original W-4 forever.
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SEE YOU IN THE COMMENTS BESTIES
Are there similar university initiatives that cover graduate school fees or is this limited to undergraduates?
Hi Vivian- my alma mater Wake Forest University has also committed to the financial aid package that Yale is for students of North Carolina!