Money
Board of Governors of the Federal Reserve System Question: Design and the Gender Gap in Financial Literacy
"Results from the 2021 SHED show substantial gender differences in the responses to the financial literacy questions, consistent with prior studies. We first present results for the half of respondents who received an explicit "don't know" answer choice. A smaller share of women answered each financial literacy question correctly. While women and men were similarly likely to select an incorrect answer, women were much more likely to select "don't know." For example, 63 percent of women selected "don't know" for the diversification question – 20 percentage points higher than the share of men who did so." more »
IRS Reminds Those Aged 73 and Older to Make Required Withdrawals From IRAs and Retirement Plans by Dec. 31
Required minimum distributions, or RMDs, are amounts that many retirement plan and IRA account owners must withdraw each year. RMDs are taxable income and may be subject to penalties if not timely taken. For individuals born before 1951, RMDs from IRAs and retirement plans should, for the most part, already have begun and are required for 2023. New for 2023: The Secure 2.0 Act raised the age that account owners must begin taking RMDs. For 2023, the age at which account owners must start taking required minimum distributions goes up from age 72 to age 73, so individuals born in 1951 must receive their first required minimum distribution by April 1, 2025. more »
Consumer Financial Protection Bureau Issues Report Showing Many Americans Are Surprised by Overdraft Fees
"Many consumers do not expect overdraft fees: Among consumers in households charged an overdraft fee in the past year, 43% were surprised by their most recent account overdraft, 35% thought it was possible, and only 22% expected it. Consumers who overdraft infrequently are more likely to be surprised by a fee: 15% of consumers from households charged 1 to 3 overdraft fees expected their most recent transaction to overdraft; among households charged more than 10 overdraft fees, 56% expected their most recent overdraft. Most households incurring overdraft fees had available credit on a credit card: Among households charged 1-3 overdraft fees in the past year, 68% had credit available on a credit card, while 62% of households charged 3-10 overdraft fees had credit available on a credit card. In households charged more than 10 fees in the past year, 51% still had credit available on a credit card." more »
November 1, 2023 Chair Jerome Powell’s Press Conference on Employment and Inflation
CHAIR POWELL."Inflation has moderated since the middle of last year, and readings over the summer were quite favorable. But a few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal. The process of getting inflation sustainably down to 2 percent has a long way to go. Despite elevated inflation, longer-term inflation expectations appear to remain well anchored, as reflected in a broad range of surveys of households, businesses, and forecasters, as well as measures from financial markets. The Fed’s monetary policy actions are guided by our mandate to promote maximum employment and stable prices for the American people. My colleagues and I are acutely aware that high inflation imposes significant hardship as it erodes purchasing power, especially for those least able to meet the higher costs of essentials like food, housing, and transportation." more »