Many Americans are ending the year feeling gloomy about their finances, and you don’t need to be a psychiatrist to figure out why.
In the early part of the pandemic, relief from the federal government helped keep many households afloat, she noted, but most of that money dried up this year. “Consumers are back to their pre-COVID finances, except now we’re facing record inflation and rising interest rates,” Gittleman said. But amid 2022’s economic turbulence, there were a few bright spots when it came to Americans’ wallets.1. Stocks were ‘on sale’
The down market also created ideal conditions for converting a traditional IRA account into a Roth IRA account, he added. A Roth conversion is attractive when markets are down because if your account has lost value, you’ll pay less tax on the conversion. The value will bounce back over time and that growth will be tax-free.
4. The minimum wage went up in many places While the federal minimum wage hasn’t budged from $7.25 an hour since 2009, many states, cities and counties moved to increase pay for the lowest-earning workers. “By the end of 2022, 49 jurisdictions will meet or exceed a $15 minimum wage for some or all employers,” according to the National Employment Law Project.
7. An ‘exceptionally strong’ labor market The alleged trend of “quiet quitting” grabbed media attention this year. But plenty of employees were, by official measures, working more than ever. The U.S. had an “exceptionally strong” job market in 2022, said Josh Bevins, director of research at the Economic Policy Institute, a left-leaning think tank, with 4.3 million jobs created through November. That was the second-best performance since 1940, he said, with the first-best being 2021.
They don’t need fees, when they aren’t paying interest on the use of your money.