enRICHed: volume 97

hoedown throwdown time

Sep 22, 2024

Volume 97

Hey besties!

I’ve been workin’ HARD this week, and while I was running around the city for meetings, I happened to pass by a Kumon Learning Center. I snapped a photo of it, typed a funny caption about my horrible childhood experience, and posted it on Instagram. Imagine my surprise when THOUSANDS of besties from all over DM’d me, also proclaiming their HATRED for Kumon. If you don’t know what it is, consider yourself lucky, but in short, it was an enrichment center where my parents enrolled me to improve my math skills (some kids go for reading and writing as well). I was forced to do packet after packet of addition, subtraction, multiplication, and division. To make matters worse, you are timed, the instructors grade your work in front of your peers with a red pen, and many kids have memories of being yelled at by their parents at the kitchen table for getting 98/100 marks. Many of my worksheets were submitted tear-streaked and damp.

It was awful, to say the least. But over and over, I kept getting one DM that didn’t sit right with me: “But look at you now! It worked.” This is a classic example of survivorship bias! Did I ultimately grow to love finance, which is often rooted in arithmetic? Yes. But did Kumon also likely traumatize an entire generation of now-adults into thinking they were stupid, unworthy, and bad at math?! Also probably yes. One thing I wish we as a society could do better is identify people’s strengths to allow them to flourish in those categories vs. force fitting. Not everyone has to be good at everything! As for me? I would never put my kids through that kind of torture, but I would be open to getting them a French math tutor. Why French, you ask? Because I don’t want to force rote memorization, but rather critical thinking! The French education system and culture have a strong tradition of mathematical theory, and the way they teach math is the most intuitive.

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.

The Fed’s Big Chop 💸

It’s time to throw a party, because the Fed finally cut interest rates on Wednesday by half a percentage point—a fairly large cut for the Fed to make, I should note.
For four years, The Fed has been like a horrible situationship, not wanting to commit to lower rates and toying with our emotions. Half a point may not seem like much, but it’s taking the Fed Funds rate down to the 4.75% to 5% range, which is something. When the Fed Funds rate goes down, all other interest rates (mortgage, car loans, private student loans, etc) follow. If we’re going to be in this situationship, we have to take the W, you know?
Federal Reserve chair Jerome Powell (aka Fed Daddy) said the aggressive action was intended to make sure that high borrowing costs, put in place to fight inflation, would not end up hurting the US economy. They’re hoping for a “soft landing,” which just means they hope we don’t spiral into a recession because of their decision making.
HYCU; In the bigger picture, rates are still relatively high, but this is a huge relief for borrowers. This cut will ease up on borrowing costs, which will affect everything from auto loans to credit cards. But lower interest rates also mean that your interest on your high-yield savings account will go down—so only keep what you need for an emergency fund saved away. Also, not to be that girl, but I literally called and explained this a month ago. You can watch it here!

23 And Just Me 🧬😔

Every single board member resigned from the DNA test company 23andMe on Tuesday, leaving just CEO Anne Wojcicki at the helm of the company.
The mail-order DNA test company has been struggling ever since they went public via merger with a special purpose acquisition company (SPAC) in 2021. They’ve basically never turned a profit since: Its price on IPO day was $10, and so far in 2024, it has yet to reach $1 per share. YIKES.
The tea is that Wojcicki has been fighting to take the company private again, but has no plan, according to the other now-resigned board members, which include Sequoia Capital’s Roelof Botha and new YouTube CEO Neal Mohan.
HYCU; After the resignation of all its independent directors Tuesday, the stock fell to its rock bottom: $0.30. If you’re investing in 23andMe, you’ve probably noted some losses in your brokerage, and I don’t want to speculate, but it may be time to cut your losses, as Fortune called it “the final nail in the coffin” for the company. Jinkies.

The Fight For Fairness 💘

Twenty civil rights organizations signed a letter calling for Fortune 1000 company CEOs and board members to defend diversity, equity and inclusion practices at their companies this week.
Signers include the Human Rights Campaign, GLAAD, the Human Rights Campaign and the National Women’s Law Center.
Maybe you’ve already noticed this at your workplace, but many large companies like Ford, Tractor Supply and Harley-Davidson have begun scaling back their DEI efforts, either cutting back on programs or ending initiatives entirely.
HYCU; It’s not exactly clear yet what kind of impact this will have, or if companies will even listen, but it’s a clear sign that many people still want these resources at their workplaces. Having DEI programs is often incredibly important to the wellbeing and tenure of employees, and breeds a more empathetic work environment. If you work at a place that has been scaling back on these efforts, it’s time to get active and start asking for that budget to be restored to the programs that matter to you and your peers. You can even call on any of these organizations to help you, if needed. For what it’s worth, something that has always frustrated me about Wall Street and finance, is that there is such a huge emphasis placed on HIRING diverse talent, but little to no emphasis placed on retaining and promoting said talent. While the incoming analyst class may look like the UN, the C-Suite is still primarily older white men. I’m willing to bet it’s similar across many other industries as well.

Feeling The Boeing Burn 👏

Last week, we talked about the start of the historic Boeing worker’s strike, and it looks like the company is already feeling the impact, as the Anderson Economic Group reported that the movement has already cost the company and workers $572 million.
It’s getting real wild out here—Boeing is flying in out-of-state janitors, freezing both hiring and raises, and will begin furloughing “non-essential contractors” soon.
The union told CNN on Wednesday that the two sides remain far apart at the negotiating table, which could mean this standoff could bleed into yet another week. The projected losses could hit $1 billion early next week, as Boeing is America’s number one exporter by dollar value and a major facet of the economy.
HYCU; Sacrificing your pay for the hope of better working conditions is not an easy thing to give up, and it’s commendable that so many workers are ready to make the sacrifice to fight for a better future. Still, keep your hands and feet inside the car, because it’s going to get bumpy. If you are at risk of being furloughed, it’s time to start preparing as much as you can, seeing what protections are available and what packages the company might offer you. If you are a worker on strike, consider what you have available in savings to spend and what your financial bottom line is. If it seems your strike has no end in sight, it could be a good time to start thinking about how else you can earn some money in the interim while you’re fighting the good fight.

Commonly asked question: Ray asks, “Hey Viv! I want to ask for a credit limit increase on a card that I’m slowly paying off a small bit of debt on. Can I ask for the limit increase while I have a balance on the card, or should I wait until there’s no balance? thxxxxxx xoxoxox”

Hi Ray! I would recommend requesting a credit limit increase AFTER you are no longer rolling a balance month to month and able to pay off your full credit card bill each due date. While there is a chance you actually would be approved for a credit limit increase, even while carrying a balance, I worry that it’d cause more harm than good.

Normally, asking for a credit limit increase helps to decrease your credit utilization and thus helps improve your credit score. HOWEVER, from a mindset perspective, seeing your access to money go up can often lead to increased spending which could turn your “small bit of debt” into a LARGE bit of debt if you’re not careful.

Thus, I’d say wait. It’s important to make sure that you are making a choice that will ultimately benefit you rather than open up a new (and bigger) can of worms. Hope this helps!

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Rich Tip of the Week: Does your student loan provider owe you MONEY?
JetBlue is opening up lounges in JFK and BOS in 2025?
Everyone’s obsessed with Moo Deng, the baby pygmy hippo that has captured our hearts.
The Secret Lives of Mormon Wives is in the middle of some major drama right now—and they’re making bank off of it.
Products that saved my life this week:
- Philips Sonicare Toothbrush - Fun fact: I’ve never had a cavity and having bad breath is an irrational fear of mine!
- My Octobuddy - I have four now (phone + other tech), and I’m truly obsessed. I sometimes use it to watch TV in the shower HAHA.
- Makeup Wipes - I always keep these in my purse for emergencies because there is nothing worse than having a full face of makeup on a flight.

SEE YOU IN THE COMMENTS BESTIES