| |  | | April 16, 2025 | | | | | | | | | | Editor's Note: We'll be off for the Good Friday holiday. On the Money will be back in your inbox on Monday. | | | | | | | | Tariffs Could Cost US Households $4,700 a Year to Start | Tariffs. Whether you approve of them or not, they may be a tough pill to swallow.
The stock market has reacted severely, economists are raising the odds of a U.S. recession, and the Federal Reserve says both inflation and unemployment could get worse.
President Trump warned it won't be easy, even though the end result will be worth it, he's said. Some businesses have already started introducing tariff surcharges.
So leaving the politics out of it, what should households expect in terms of impact?
An additional $4,689 in costs a year, according to new estimates from Yale University's Budget Lab, a non-partisan policy research center.
That's the average loss in purchasing power — in 2024 dollars. The burden will range from nearly $2,100 a year for the lowest-income households to more than $10,000 for the highest.
Where will we feel it the most? When we go clothes shopping, for one. In the short run, leather and apparel costs are expected to go up the most, followed by electrical equipment, textiles and mineral products, the lab's estimates show.
The lab ranked commodities by the biggest estimated increases and included the potential impact on prices both short-term and longer-term, when consumers would presumably start buying alternative products that are cheaper. Longer-term, the average annual cost could drop to $2,700. | | |  | | | | | | | | What to Do as the Cost of Home Insurance Climbs | | | Editor's Note: This is part one of a three-part series exploring the rising cost of home insurance. Coming over the next two weeks: What to consider if you're shopping around and how to avoid leaving yourself underinsured.
One of the advantages of buying a house with a fixed-rate mortgage is being able to budget for the same payment amount every month.
But if you bundle your insurance premium in with your monthly principal and interest, chances are what felt like a relatively fixed monthly housing payment has started to feel anything but fixed.
Since 2018, the average annual homeowners' premium nationally has increased 62% to $1,761, or about $147 a month, according to Freddie Mac's latest 2024 calculations. And costs vary widely, so premiums in some states are four or five times as high as others.
In fact, insurance has become a primary contributor to the country's housing affordability crisis, in addition to the pandemic surge in real estate prices and a steep increase in mortgage rates.
The average premium climbed 24% between 2020 and 2024 after inching up just 1% over the previous four years, data from Harvard University's Joint Center for Housing Studies show. And that's after adjusting for the rapid inflation of recent years.
So is this trajectory the new norm? And if you own a home, do you have any recourse? Here's what we know and how you may be able to reduce your costs. | | |  | | | | | |  | | How to make major money decisions during all this uncertainty. (The Wall Street Journal via MSN) | | | | | | | | | | | TV personality La La Anthony opens up about her journey from unpaid radio intern to MTV icon. | | | | | | | | | | | Intel, insights, and inspo for your money. | | On the Money cuts through the noise of day‑to‑day financial news to bring you a more thoughtful point of view on what's important in this moment — and how it impacts your bottom line. We value your trust above all. | | | | | | | | | | Did you find today's newsletter valuable? | | | | |
| | | INVESTMENTS ARE NOT FDIC INSURED ‑ ARE NOT BANK GUARANTEED ‑ MAY LOSE VALUE | | SoFi Checking and Savings accounts are offered by SoFi Bank, N.A., Member FDIC. SoFi Credit Cards are issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated.
Loans originated by SoFi Bank, N.A., NMLS #696891 (www.nmlsconsumeraccess.org). Equal Housing Lender.
Brokerage products offered through SoFi Securities LLC, member FINRA/SIPC.
Advisory services are offered through SoFi Wealth LLC, an SEC-registered investment adviser. Information as of April 2025 and is subject to change. Screen images simulated.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
In our efforts to bring you the latest updates on things that might impact your financial life, we may occasionally enter the political fray, covering candidates, bills, laws and more.
Please note: SoFi does not endorse or take official positions on any candidates and the bills they may be sponsoring or proposing. We may occasionally support legislation that we believe would be beneficial to our members, and will make sure to call it out when we do. Our reporting otherwise is for informational purposes only, and shouldn't be construed as an endorsement.
The information provided is general in nature and shouldn't be construed as a recommendation or solicitation of any products offered by SoFi's afliates and subsidiaries. Addtionally, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset.
SoFi Technologies, Inc. values your privacy and the security of your personal information so please do not include sensitive personal information, such as your Social Security number, in any email or letter that you send to us.
SoFi Technologies, Inc. 234 1st St., San Francisco, CA 94105
Unsubscribe | Privacy Policy | Licenses
© 2025 SoFi Technologies, Inc. All rights reserved.
w: 20250416 | | |
No comments: