The holiday season is here, bringing friends and family together to celebrate. Here's wishing you a festive season and a prosperous New Year.
Even if you're not into New Year's resolutions, chances are you've been reviewing your 2025 finances and making some plans for next year. If you are, you're not alone, according to a recent survey conducted by Empower, a financial services company.
During December, many people experience shifts in their financial attitudes. They're feeling both stressed and motivated, as balancing holiday spending with financial goals is often difficult. Some respondents admitted that they were more stressed by the costs incurred during gift-giving than searching for the right gifts for loved ones. In addition, over 20% of these people feel pressured to appear financially successful.
Here are some additional survey takeaways:
Source: empower.com
While persistently high prices continue to frustrate potential home buyers, some are still set on finding a home next year. According to a recent survey of consumers who are planning to buy a home in the next 18 months, most of them (88%) are planning to buy during 2026.
The hottest contenders are Millennials and Generation Zers, which means that they're in their 20s to mid-40s. These respondents were particularly interested in buying, and many plan to ask family members to help them achieve home ownership. This doesn't mean they aren't doing their part, as some are working multiple jobs and delaying other big purchases so they can buy that dream home sooner.
Next year's potential buyers stated that lower home prices and/or mortgage rates would help them fast-track their home purchase by 6 to 12 months. However, they're still willing to pay more for a property in a safe neighborhood with shared amenities.
When comparing generations' priorities, more than two-thirds of buyers aged 60-65 prioritized affordability, listing it as their top priority when choosing a neighborhood. In contrast, more Gen Zers and Millennials prioritized neighborhoods with the right sense of community, with some being willing to postpone big life events like marriage, children and career changes until they were settled in a suitable neighborhood.
Other priorities that are popular with renters weren't nearly as important to those planning to buy a home in 2026. These included close proximity to fitness centers, EV charging stations, nightlife, and co-working spaces.
No matter what your plans are for 2026, APM is available to answer your questions about home financing. Already in a home of your own? Maybe it's time to discuss possible refinancing and equity-based lending programs that may improve your cash flow.
Source: realestatenews.com
If you're retired and aged 65 or better, be sure to check out this new tax deduction or mention it to your tax advisor. This year's H.R. 1 Bill, aka the Big Beautiful Bill, includes a temporary bonus deduction of up to $6,000 from 2025 to 2028 for some retirees.
Unlike the existing additional standard deduction, retirees can take this bonus deduction, even for itemized federal tax returns. Designed to benefit middle- and lower-income retired individuals and couples, this deduction reduces or eliminates taxation of Social Security benefits — something that has irked retirees for years.
Currently, income limits apply. The value of this temporary deduction begins to phase out for filers with a modified adjusted gross income (MAGI) of $75,000 for single filers and $150,000 for those who are married and filing a joint return. The bonus deduction phases out entirely for filers with a MAGI above $175,000 (single) or $250,000 (joint filers).
There's more good news: lower-income retirees may be able to claim this bonus deduction, even if they don't owe taxes on their Social Security benefits. So can older adults who have decided to delay their Social Security payments.
Consult your tax professional to learn more about this deduction, or visit the IRS website for more information.
Source: kiplinger.com
Earlier this year, the death of the penny was announced, with the U.S. Mint estimating that ending penny production will save about $56 million each year. There are at least 300 billion pennies in circulation, although many are probably gathering dust in piggy banks.
However, some retailers are already prepared to cope with the gradual disappearance of the penny. Here's what to expect if you visit them (hint: you may want to begin carrying more pennies around than usual).
McDonald's: In some locations, customers paying with cash may no longer receive exact change. Instead, the chain will round totals to the nearest 5 cents. For example, if your Big Mac order comes up to $10.22, you'll pay $10.20 if you're paying cash. However, if it's $10.23, you may be charged $10.25.
Auntie Anne's, Cinnabon, Jamba, Carvel: These four companies are owned by GoTo Foods, who have announced that they recommend that their franchise owners round cash transactions in the customers' favor.
Wendy's: Like GoTo Foods, they're asking their management to round cash transactions down to the nearest nickel if they're short on pennies.
Kroger: As of December 2025, you'll be expected to provide exact change. Some stores have put up signs advising customers of this policy.
Kwik Trip: This chain of 900+ stores plans to be more generous, at least for the time being. It has said it will round cash transactions down to the nearest 5 cents. Kwik Trip CEO Scott Zietlow has described this as their commitment to "making everyday transactions simple and fair."
Sheetz: Live on the East Coast? Your local store may give you a free drink if you bring in a dollar's worth of pennies.
Perhaps the ideal strategy for the next few months is to make sure you have some pennies with you when you leave home, together with a debit card.
Source: cbsnews.com
The Federal Reserve recently announced another .25 percentage point rate cut, but it could be the last for some time. The cut puts the range at 3.5% to 3.75%, its lowest since November 2022, and prioritizes helping the job market over fighting inflation.
However, not all Federal Reserve members agreed that the .25 reduction was the right move. One favored a lower cut, while two others voted against any cut.
Federal Reserve Chairman Jerome Powell argued that the current economy — with inflation numbers still well above the Fed's 2% target and the labor market showing signs of weakening — is one where disagreements are to be expected.
This is because keeping the federal funds rate higher helps push down inflation, while a lower one boosts demand and hiring but tends to increase inflation.
"A very large number of participants agree that risks are to the upside for unemployment and to the upside for inflation, so what do you do?" Powell said. "You've got one tool, you can't do two things at once. It's a very challenging situation."
So how might this situation affect consumer finances?
One growing concern is that the economy is facing a risk of "stagflation," or stagnant growth with high inflation. Stagflation reduces purchasing power for consumers, but it doesn't stop there. It also contributes to stagnant wages and rising unemployment, which increases financial stress and makes borrowing more expensive.
This year's tariffs and other economic policies have kept inflation above the Fed's target of a 2% annual rate while slowing the labor market. At the same time, uncertainty about trade policy has led businesses to delay expansion and hiring plans, contributing to the slowdown.
Source: investopedia.com
Want to make some seasonal sweets for your family or guests, but don't have hours of time? These Gingerbread Oatmeal Cream Pies only take about 30 minutes to prepare and feature a cinnamon-ginger cream filling.
While Christmas tree fires aren't extremely common, especially as more families opt for artificial trees, they can still be potentially dangerous.
According to the National Fire Protection Association, U.S. fire departments respond to an average of 145 home fires started by a Christmas tree each year. Between 2019 and 2023, Christmas tree-related house fires caused $15 million in property damage. They also caused seven deaths and 13 injuries.
Electrical distribution or lighting equipment can contribute to tree fires. One in four fires is started by lamps or bulbs, and 12% are started by candles. Most Christmas tree fires (42%) begin in the living room.
If you enjoy bringing a live tree into your home, these tips will help you stay safe.
1. Keep your tree watered. This helps keep it from drying out and becoming more prone to fire.
2. Place the tree away from heating vents, fireplaces, and candles.
3. Inspect the lights each year. Check for frayed wires or other damage that could potentially start a fire.
4. Turn off the tree lights when you're away from home. You won't have to worry about the possibility of a fire when you're not there to put it out.
Source: propertycasualty360.com