Image: https://www.cnn.com/2022/09/07/investing/british-pound-low/index.html U.K. Treasury Chief Jeremy Hunt recently announced the government would be rolling back nearly all of its proposed tax cuts this week. The news comes after a sharp selloff of the pound as investors feared the financial stability of the U.K. government. Last month under new Prime Minister Liz Truss there was an announcement of large tax cuts in order to increase economic growth. The proposals would cut around $50 billion worth of tax revenue for the U.K. government. The plan would have been the largest round of tax cuts since the 1970s. Investors worry about the impact on inflation and the finances of the U.K. government borrowing so much money. Immediately after the announcement the pound dropped 3% against the dollar, the largest single day selloff of the pound since 2020. British bond prices also went up a third of a percent, a major fluctuation in bond markets. The market reaction led Prime Minister Truss to fire former Treasury Chief Kwasi Kwarteng just a few weeks into her taking office. It also led to a major reversal of said tax cuts, with only £12 billion of the original £45 billion remaining. The news cooled down markets as the value of the Pound reverted back near its price before the controversy began. Sources: https://www.wsj.com/articles/new-u-k-chancellor-to-release-new-public-spending-tax-policies-11665987080 https://www.wsj.com/articles/u-k-announces-package-of-sweeping-tax-cuts-11663926079?mod=article_inline https://www.wsj.com/articles/u-k-prime-minister-expected-to-u-turn-on-parts-of-tax-plan-11665746046?mod=article_inline

With the average price of a new car in the US surpassing $47,000 vehicles are one of the most expensive line items on most people’s budget. Every time you drive your car, you slowly depreciate it. The costs are enormous! This has led many people to consider further expanding public transportation. This summer, I lived in Chicago, which has a relatively strong public transportation system. Coming from suburban Detroit, I was used to being 100% dependent on my car. If I wanted to go anywhere, taking the bus would be unrealistic, so it was nice to be able to relax while taking a ride on the “L” (elevated train). Now let’s compare the costs of public transit and cars. For the sake of simplicity, I’ll be referencing AAA’s ‘Your Driving Costs’ report which is updated each year. According to AAA, if you drive about 10,000 miles per year, you will spend $5,910, on average. If you have a bigger, less fuel-efficient vehicle, you will spend a lot more. The costs really do add up. The chart below breaks down all the different average costs of owning each size of vehicle. Unsurprisingly, larger cars tend to cost more in general. *2021 Numbers Now, if we take the average cost per month for a vehicle ($493) and compare it to an unlimited monthly transit pass in Chicago ($75), you’ll see that public transit will likely save you a lot of money. Adding in some costs for using Uber would probably bring you to $150/month. So, just by having access to a solid public transit system, most people can save about 67% (or more) on their transportation budget! Unfortunately, public transportation will not be available in many areas for many reasons. Sometimes a city may be old, and adding a rail system wouldn’t be possible without disrupting people via eminent domain. Other times, the economics of an area will not allow for such a large expenditure. But this article is focusing on those who want to live in large cities with a reliable public transit system. So, next time you are thinking about moving to a city, consider how much you can save by ditching your car! Written by: Jacob Patterson Date: 10/17/2022 References: 1. https://www.transitchicago.com/fares/ 2. https://newsroom.aaa.com/wp-content/uploads/2021/08/2021-YDC-Brochure-Live.pdf 3. https://b2b.kbb.com/news/view/new-vehicle-prices-may-2022-luxury-share-remains-strong/ 4. https://onlinepubs.trb.org/onlinepubs/tcrp/docs/TCRPJ-11Task7-FR.pdf

Image Source: Forbes Written By: Abdullah Al-Ejel If you sense a decrease in your university’s services, attendance, and enthusiasm, you’re not alone. Universities across the country have reported huge dents in funding, with institutions such as MacMurray College, San Francisco Art Institute, and Notre Dame de Namur reporting complete shutdowns, heavy restructuring, or freezing enrollment for the upcoming fall semester. “In a year or two years, I expect to see something north of 100 colleges on the brink of financial ruin,” said Hafeez Lakhani, founder and president of Lakhani Coaching. (CNBC). Since the start of the pandemic, undergraduate enrollment has declined by 9.4%, or 1.4 million students (CNBC). Many have reevaluated the necessity for a college degree, especially due to the costs of prestigious universities, taking advantage of the high-demand labor market struggle of the past few years. With more job opportunities open, the ability to start building an income and climbing up the ladder is more readily available, convincing consumers to kick off their careers instead of the education route. While many universities face shutdowns and financial struggles, tuition is increasing. It’s surprising that expensive institutions continue to increase tuition and still report high applicant numbers, however, private universities are offering generous financial aid packages, with students paying as much as $30,000 less out of pocket. This helps appeal to those who are willing to shell out a little more for the reputation these institutions hold. Lower school costs are exactly what the people of the US need, as increasing access to education is vital for our future growth. In these rough financial times for everyone, it’s important to evaluate how viable and stable your prospective education is, and if your intended career goals may not need a degree at all. Confirm that the programs you intend to pursue will continue to exist or contain the same level of quality down the line, as uncertainty in the economy continues to grow. Sources: https://hechingerreport.org/the-dire-consequences-of-fewer-people-going-to-college-for-them-and-for-society/ https://www.cnbc.com/2022/05/09/strong-job-market-is-causing-more-students-to-drop-out-of-college.html

Due to the overall increase in the temperature around the world, many different industries and natural resources have started to get affected. One such resource is the Mississippi river, a 2,340 mile long body of water that runs through 10 US states. It acts as a transportation method for commerce of all kinds. However with the rise in temperatures, noticeable differences in the water highs has caused this method's availability to be questioned. This river has not only provided for people in the US, but is a major provider for people across the world. This impact is described on the National Park Service website, which states "The agricultural products and the huge industry that has developed in the basin produce 92% of the nation's agricultural exports, 78% of the world's exports in feed grains and soybeans, and most of the livestock and hogs produced nationally. Sixty percent of all grain exported from the US is shipped on the Mississippi River through the Port of New Orleans and the Port of South Louisiana"(NPR 14). This causes the port of New Orleans to get more than 500 million tons of goods a year from places connected to the Mississippi. However, this valuable natural resource to our nation is threatened. This threat is best described in an article written by Jim Salter of USA Today. Salter states "low water level in the lower Mississippi River is causing barges to get stuck in mud and sand, disrupting river travel for shippers, recreational boaters and even passengers on a cruise line" (Salter 1). This has caused the US Army of Engineers to try to find ways to overcome this problem. One such method was dredging several spots along the Mississippi along with placing traveling restrictions on the amount of barges and cargo being let through. The Mississippi has been the backbone of commerce in the South for centuries. It has helped moved trillions of commerce over the years and has also helped support families and job opportunities. I believe that the government and other officials must works together to make sure that this precious body of water is not ran dry and that it remains available to enjoy for years to come. Source of Information - https://www.usatoday.com/story/news/nation/2022/10/09/mississippi-river-low-water-halt-key-commerce-travel/8229047001/ https://www.nps.gov/miss/riverfacts.htm

Ever since the introduction of the first charge card in 1946, companies have been making it easier and easier for consumers to spend their money. Solutions like Apple Pay, Google Pay, and contactless cards allow you to spend your money without interacting with a machine. Banks also offer credit card rewards to try to entice you to ‘spend more to earn more'. These psychological tricks help banks rake in billions of dollars per year in interest revenue, which is what funds reward programs year after year. In the end, it has led some to wonder, should we go back to cash? A study by the company Dun and Bradstreet found that those who use a credit card tend to spend 12%-18% more, while a study from the Federal Reserve Bank of Boston found that the average credit card transaction price was about 5.1x higher than the average cash transaction price. Some theorize that credit card spending levels are higher because your brain does not experience the pain of actually seeing cash leave your hand. When you swipe your card, it's as easy as tapping and forgetting the transaction for the rest of the month until your statement comes. But credit cards (or debit cards) are a necessary part of today’s digital world. Next time you choose to use a credit card, remind yourself of the price you are paying, whether you need what you are buying, and how many hours of your life it took you to earn those dollars. Author: Jacob Patterson October 9, 2022 Sources: https://www.nerdwallet.com/article/credit-cards/credit-cards-make-you-spend-more https://www.forbes.com/advisor/credit-cards/history-of-credit-cards/

Image: https://www.cnn.com/europe/live-news/russia-ukraine-war-news-09-28-22#h_a0595e960437967b06218c013cb0d345 European gas prices increased by as much as 12% this week after damage was done to the Nord Stream gas pipeline. Images of the gasoline flowing in the Baltic sea have surfaced showing how severe the damage to the pipeline is. Seismologists in Sweden identified two explosions around the pipeline that occurred before the gasoline started spilling out. As of now the German government is suspecting the damage to be caused by sabotage from another country, though they have not made any direct claims as to who yet. There is evidence to suggest this was planned well in advance though, as The CIA warned Germany weeks ago about the possibility of an attack on the Nord Stream pipeline. The pipeline is the main source of gasoline flowing from Russia into Germany, and makes up a large source of European gasoline supply as a result. About 35% of Europe's Russian gas imports comes from the Nord Stream 1 pipeline. The market’s reaction on Tuesday is yet another increase of gas prices that will continue to hurt European citizens and impact global gas prices. The damage means that Europe will certainly not be getting any gas through the pipeline for the rest of the winter. Over the past couple of months Russia has continually been limiting supply from the pipeline, which is seen to be a response to Europe’s support of Ukraine through Russia’s invasion. Back in June the pipeline started flowing through a quarter of the gas it normally supplied. Then in July it was temporarily shut down, only to be reopened with half of the supply coming through. This continued until finally in August, Russia shut down the line completely citing equipment issues. So while the damage won’t impact any of Europe's oil supply today, it means that the pipeline will be unusable for the foreseeable months ahead. Sources: https://www.bloomberg.com/news/articles/2022-09-27/nord-stream-probing-pressure-drop-at-second-russian-gas-link https://finance.yahoo.com/news/cia-warned-germany-weeks-ago-093254247.html https://www.bbc.com/news/world-europe-60131520 https://www.bbc.com/news/business-62291458 https://www.bbc.com/news/world-europe-62732835

Image Source: Business Insider Written By: Abdullah Al-Ejel Some people live a simpler challenge balancing only an income and expenses, while others deal with a complicated portfolio of investments. However, either situation can be a different workload on an individual basis, and the necessity for a financial advisor should always be considered. One might assume an advisor is only for the extremely wealthy, but that’s not necessarily the case. If you are an individual who has no time, uncertainty in investment choices, and huge life changes are incoming, a financial advisor may be of use to you. Generally, you don’t need to meet a minimum salary to need an advisor, however, some firms do require it. If you live paycheck to paycheck, you typically don’t need an advisor, and an alternative is consultations when necessary. Choosing the right advisor can determine how successful your future is. The most important box to check off is for your advisor to be a fiduciary, where they are legally and ethically bound to work in your best interest. Also, confirm that their salary is not commission-based. This causes a conflict of interest where the advisor will most likely sell rather than do only what’s best for you, in order to achieve a larger paycheck. A fiduciary advisor locks in that trust, and you’ll be in safer hands. Your advisor should also have series 7 and 65 certifications, permitting them to sell securities. Interview multiple advisors as well to determine which one is best for you, as not all of them are a guaranteed good fit, and some may not have the type of investments you’re looking for. Every person should at least try creating a budget sheet and a multi-year plan before instantly spending money on an advisor. If you put the time and focus into it, you could save yourself from paying others. This kind of choice isn’t small or easy to make, so go in with a clear mind and set of investing and future goals beforehand, and do not feel you have to choose the first advisor you see. Sources: Forbes Yahoo USNews

The Dow fell around 600 points as Apple (AAPL) see their stock prices drop a fair amount. Shares of Apple dropped nearly 6% as of Thursday. This comes as the demand for Apple products, particular the IPhone, have dropped off as of recently. The stock which has preformed rather well in the few years even during COVID is now facing the challenges of demand that has lowered their recent sales. In addition to lower sales, investment bank BofA Securities took the stock from a buy to a neutral position. For myself and i'm sure many others this comes as a shock. For years Apple has been a solid buy and is a relatively stable purchase. Apple had an event a few weeks ago which described the new or improved items they would be releasing in the coming year. Apple not only announced the release of the new IPhone 14, but a few other products as well. Items like the new Airpod Pros and the new Apple watch series 8 and SE edition were also announced as well. With these new products, it is surprising that Apple sales have been lower than expected. It will be interesting to see if Apple is able to rebound from this drop or if sales will continue to decline. Source - https://www.cnbc.com/2022/09/28/stock-market-news-open-to-close-futures-live-updates.html

According to Marriage.com, the second most common reason for divorce is trouble with finances. With close to 50% of Americans getting divorced, couples must consider if they are on the same page financially before getting married. Here are some of the biggest financial dealbreakers: 1. Whose is what? Many couples decide not to combine their finances and like to stay independent, often splitting expenses 50% or based on each person's income. Others choose to open joint bank and credit accounts, behaving as one person financially. This approach is thought by some to be more transparent and makes it easier to budget. Joint bank accounts are slowly becoming less common. Currently, only about 14% of Baby Boomers don't share any accounts, but today, 45% of married/partnered Gen Zers don't share any bank accounts with their partners. 2. Secret Spending A recent survey from TD Bank found that 32% of Americans (in the sample) are "keeping a financial secret from their partner." Some of these secrets included big purchases (40% of those with a secret), significant credit card debt (18%), and a secret bank account (13%). The term "financial infidelity" has become more common in the last few years, signaling a trend of less trust, openness, and honesty surrounding finances in relationships. 3. Debt With Millennials having significant levels of student loans, debt has stepped into the spotlight during financial disagreements. Debt can be a big disagreement in marriages, especially when one person in the relationship is debt free, and the other is not. Some people are more comfortable with debt, while others are not. Personal finance expert Dave Ramsey encourages Americans to pay off all of their debt. In 2021, the average American had $58,604 in debt. 4. Children Children can be one of the most complicated and largest financial commitments. Accoring to the USDA, the average cost of raising a child to age 18 in the United States was $233,610 in 2017 ($282,264 adjusted for inflation). There are also other non-monetary costs of parenting, such as a partner leaving their career to raise children. 5. Personality Some couples have a very different 'financial personality'. Some people are natural savers, and are very frugal, while others are natural spenders. These personality differences are why it's important to always communicate about your spending habits before and during marriage. Feeling spooked about marriage? According to a recent study by the CDC, those who are married experience a lower age-adjusted death rate for all 10 leading causes of death compared to those who are single. Written by Jacob Patterson October 2, 2022 Sources: https://www.bankrate.com/finance/credit-cards/us-joint-account-survey/ https://www.survivedivorce.com/how-many-marriages-end-in-divorce https://www.investopedia.com/articles/pf/09/marriage-killing-money-issues.asp https://www.gobankingrates.com/saving-money/relationships/blame-money-reasons-marriages-fail/ https://www.ramseysolutions.com/debt/average-american-debt https://educationdata.org/student-loan-debt-by-generation https://www.bankrate.com/finance/credit-cards/us-joint-account-survey/ https://www.cdc.gov/nchs/data/nvsr/nvsr70/nvsr70-10.pdf

Image Source: goforfinance Written By: Abdullah Al-Ejel If you’re thinking about buying a car soon, wait and do some extensive research. The chip shortage and high demand during continuous supply chain issues are contributing to higher prices, but another issue is making cars even more expensive: markups. According to CNBC, car manufacturers like Jeep, Porsche, and Ford are selling certain models at least 20% above MSRP (Most Suggested Retail Price). For example, the Jeep Wrangler has an average markup percentage over MSRP at 24.4%. This costs any future Wrangler customers at least another $8000. Most manufacturers are guilty of these markups in the name of inflation and supply not meeting high demand. While supply definitely took a hit and companies may need to offset losses, this could mostly be price gouging. There are no federal laws defining a minimum percentage for price gouging, but the US PIRG states that “While laws vary by state, increases over 20% may be considered price gouging”. Seeing these companies go over a 20% price increase looks like price gouging to me. To try and avoid higher markups, expand the number of dealerships you’re looking at. It may not be easy, but it’s worth it in the end saving yourself some money. A very helpful resource emerged this year, aimed at helping prospective car owners avoid certain dealerships. Markups.org began in 2022 after its co-founder, Trey Soucie, fell victim to an auto dealership’s price gouging attempts. The website gathers data from crowdsourcing, where anyone can report on their local dealerships marking up prices. The website has grown so much that consumers from Canada are also sharing their experiences. This is a great resource if you want to avoid nearby dealerships, or hopefully find a new one to report. Always keep watch of predatory practices. Don’t feel obligated to sign papers quickly, make sure prices line up like they’re advertised, and keep the discussion & bargaining on the vehicle you want.

Image: https://fortune.com/2022/08/26/jerome-powell-fed-inflation-recession-pain-jackson-hole/ Just this week the federal reserve announced a new increase in interest rates in an effort to combat continued high inflation. The new federal funds target rate has gone up by 0.75%, the third increase in interest rates in the past couple of months. This aggressive monetary policy is part of what Fed chair Jerome Powell sees as the central bank's sole goal of fighting inflation. Image: https://www.nytimes.com/2022/09/23/business/stock-market-today.html The news continued to push markets into bear market territory, almost completely erasing the gains from August and putting the market near the year's all time low in June. And as markets continue to go down, and high inflation rates persist, more and more people are worried about a possible recession happening. According to CNBC’s most recent survey of economists, they found a 52% probability of a US recession in the next 12 months. The figure was even higher for Europe at 72%. Though there are differences in opinion between economists on how likely a recession is, and what it will look like. Professor of applied economics at Johns Hopkins University Steve Hanke believes that the odds of a recession are higher - much higher. He believes that there is an 80% chance of a recession. CEO of Morgan Stanley James Gorman, on the other hand, argues that at this point it’s “50/50”. Some economists argue that we are already experiencing a recession. A recent study from the National Bureau of Economic Research found that 19% believe we are already in a recession. A lot of this back in forth comes from the fact that determining a recession at this point is very difficult. While the technical definition of a recession, two consecutive quarters of GDP dropping, has been fulfilled, there are other metrics that don’t indicate everything is bad. Chief U.S. economist for Morgan Stanley Ellen Zentner states that factors like increasing numbers of jobs, a low unemployment rate, and the cushion from excess savings Americans have has kept the U.S. out of a recession. Sources: https://www.freep.com/story/money/business/michigan/2022/09/24/what-are-the-odds-of-a-u-s-recession-in-2023/69508222007/ https://www.nytimes.com/2022/09/23/business/stock-market-today.html https://www.msuwma.com/post/mass-market-selloff-amid-august-inflation-report https://www.cnbc.com/2022/09/20/the-fed-is-now-expected-to-keep-raising-rates-then-hold-them-there-cnbc-survey-shows.html https://www.cnbc.com/2022/09/23/there-is-an-80percent-chance-of-the-us-going-into-a-recession-steve-hanke.html https://www.reuters.com/business/finance/bank-americas-cfo-says-no-sign-recession-credit-deterioration-2022-06-13/ https://www.cnn.com/2022/08/22/economy/nabe-economists-recession-inflation/index.html https://www.nytimes.com/2022/07/26/business/economy/recession-economy.html

Written by: Brendan Zalenski September 26th, 2022 The Federal Reserve recently discussed the measures that would need to be taken in order to combat the growing inflation problems. One such issue that was discussed was the potential loss in jobs that would occur over the next year. According to Alicia Wallace, writer at CNN, stated "the central bank is expecting the nation’s unemployment rate to grow to 4.4% next year – up from August’s 3.7% — and potentially as high as 5%. Assuming no change in the labor force, that would mean around 1.2 million more people will be unemployed. At the high end of the Fed’s range, at 5%, that would be 2.2 million more unemployed" (Wallace 2). This news concerns many as the country is continuing its return to normality after facing COVID for two years. With many people reluctant to return to work, these unemployment difficulties will only get worse. In addition I feel that the recent supply chain problems along with these future unemployment numbers will further strain the problems that everyday middle and lower class families face. In conclusion, I feel that the government needs to find another possible way of reducing inflation. The average American has face numerous hardships the past few years and an alternative needs to be explored in order to find a solution that is mutually beneficial. Information source - https://www.cnn.com/2022/09/23/economy/powell-fed-labor-market/index.html Image source - https://manage.wix.com/dashboard/09c308c0-0127-4602-965f-b88184595c27/blog/9ae335a9-1a34-4756-b189-245df171a8d5/edit?referralInfo=sidebar