Bankrate

How valuable is your college degree? According to a new Bankrate study, the 15 most valuable college majors are all STEM (science, technology, engineering, and mathematics). The study ranked 152 majors based on median annual income, unemployment rate, and the percentage of people with advanced degrees. Overall, Bankrate’s study found that electrical engineering is the most valuable college major. Workers who hold a bachelor’s degree in electrical engineering have a median salary of $115,000 annually, as well as an unemployment rate of 1.9%. On the other hand, studio arts landed in last place in Bankrate’s ranking with a median salary of $40,000 annually and an unemployment rate of 4.6%. If you’re still on the fence about picking a major, Bankrate Analyst Alex Gailey notes “getting a four-year degree is a significant investment and choosing a major is tricky, so it’s important to strike a balance between interests, strengths, earning potential, and job opportunities. Being proactive is key to entering and succeeding in the field you choose. Students should do as much research as possible early on, consult their academic advisors, and investigate job prospects for the majors they’re interested in.” Where does your major fall in the rankings? https://lnkd.in/ee6CNm76

The age-old belief that a college degree guarantees a satisfying, well-paying career is getting questioned more than ever. College is expensive. For some majors, the connection between what you study and what you do for a career is clear. For other majors, it’s not — and nowadays, it usually takes a lot more than a college degree to secure a well-paying job. Networking, internships, learning opportunities outside of the classroom. So, is a college degree worth it? To better understand the return on investment (ROI) of college majors, Bankrate analyzed the U.S. Census Bureau’s 2022 American Community Survey (ACS) data and ranked 152 bachelor’s degrees based on median annual income, unemployment rate and the percentage of workers with an advanced degree. Data from the NY Fed shows that earning a bachelor’s degree does usually pay off in the long run, but our analysis found that not all college degrees are created equally. STEM degrees are most often associated with steady employment and a solid income, while ROI is not as obvious for those with degrees in the arts and humanities. In Bankrate’s latest analysis of the most and least valuable college majors, STEM majors dominated the top 15 — bringing salaries of at least $90,000 per year. To zoom in a little further, engineering majors claimed 8 of the top 10 spots. The 5 most valuable college majors: 1. Electric engineering 2. Computer engineering 3. Petroleum engineering 4. Aerospace engineering 5. Materials science The arts and humanities — acting, film, clinical psychology and communications — are the least valuable degrees with median salaries ranging between 40,000 and 50,000. Arts majors claimed 6 of the bottom 10 spots, and their unemployment rates can be as high as 5.5%. The 5 least valuable college majors: 1. Studio arts 2. Drama and theater arts 3. Visual and performing arts 4. Film, video and photographic arts 5. Miscellaneous fine arts Where did your major land on our ranking? Do you think getting a college degree is worth it nowadays? Share your thoughts in the comments, and check out the full ranking in the link below. https://lnkd.in/efBk2dZt

Renters insurance: the forgotten middle child of the insurance industry🚗 ❓ 🏡 As any middle child can relate, renters insurance is often forgotten and pushed aside for its older sibling, the golden child (#homeownersinsurance) and the louder and bratty younger sibling (#autoinsurance). But just like middle children are often the unsung hero of their family, the glue that keeps everyone together, #rentersinsurance can be an affordable safety net, offering financial stability and peace of mind in a world full of evolving perils. Bankrate's Extreme Weather Survey examined the financial readiness of homeowners and renters to highlight the importance of renter insurance and the vulnerability we all face from extreme weather damage. Our findings revealed some surprising similarities. Within the past five years: •7% of renters and homeowners moved to an area at lower risk from extreme weather. •4% of renters and 9% of homeowners invested in weatherproofing strategies. •6% of renters and 8% of homeowners lowered their auto/home/renters insurance deductible •10% of renters and 13% of homeowners admit they don't know an insurance deductible. However, overall, renters say they feel much less prepared for the potential cost associated with extreme weather damage than homeowners. •41% of renters say they feel unprepared for the costs associated with extreme weather damage, compared to 26% of homeowners. •Only 13% of renters have reviewed their renters or auto policies to ensure proper coverage over the past 5 years, compared to 39% of homeowners •71% of renters have not done anything to protect against property damage from extreme weather compared to 43% of homeowners Even if you don't own the dwelling you live in, your home and the belongings inside still have value. Renters should make sure they are comfortable and familiar with their levels of personal property protection and loss-of-use coverage. Renters who live in areas prone to flooding may even be able to secure a flood policy through NFIP for a fraction of what homeowners pay. If you see this post and are a renter, have you checked your renters insurance policy lately? Do you have a policy? Agents, have you checked in with your renters to make sure they understand how their policies work or to offer more coverage? Let me know! https://lnkd.in/g4ccb6cf

Last week, the Fed codified a major regime change when it cut interest rates for the first time since 2020. For the past two and a half years, officials have been laser-focused on slowing the economy to control inflation. Now, as price increases — but also the job market — slow, Fed officials want to let up on how much they’ve been pressing on the brakes. The U.S. central bank surprised investors and economists with a larger, half-point rate cut at its September meeting. Officials rarely cut interest rates in increments larger than a quarter of a percentage point, reserving the aggressive move for economic downturns and financial meltdowns. Yet, policymakers were also sending a signal: They don’t want to be behind the curve on the way down, just as badly as they were when interest rates were on the way up. To take a walk down memory lane, inflation was quadruple the Fed’s 2% target when it finally hiked interest rates in March of 202. At that time, officials only increased borrowing costs by a quarter of a percentage point (even if they later followed that move up with historic half-point and three-quarter-point hikes, too). So what does the economic picture say: Should Fed officials have cut interest rates? Data has been mixed, but the economists I talk to say that, for the most part, the U.S. economy isn’t falling off a cliff, even if it is slowing. Job growth has cooled markedly since the start of the year. The three-month moving average dipped to 116,000 jobs, the lowest since the economy plunged into the depths of the pandemic and down from 243,000 in January. Yet, employers also created 142,000 jobs last month, an amount that would’ve been considered healthy pre-pandemic. Layoffs remain historically low, separate Department of Labor data shows. The longer the Fed kept rates at these levels, though, the more recession risks grew, Invesco’s Kristina Hooper tells me. Before the Fed cut interest rates last week, borrowing costs were slowing down the economy with the most force since 2007. One thing that surprised me from last week’s decision: Previous projections from June showed that the Fed preferred a fed funds rate in a target range of 4-4.25% by the time the unemployment rate hit 4.2%. Even so, Fed officials revised up their estimate for the unemployment rate at the end of this year to 4.4%, yet they expect to cut interest rates to only 4.25-4.5%. No matter what, though, a full percentage point of cuts across three meetings is notable. How are you feeling about the Fed’s odds: Is it still possible for the Fed to defeat inflation without causing inflation? Let me know in the comments, and read more: https://lnkd.in/exGuaEqv

Have you checked in on your retirement savings lately? According to a new survey from Bankrate, nearly 3 in 5 Americans in the workforce (i.e. those working full or part-time, or temporarily unemployed) say they are behind where they should be with their retirement savings (57%), including 35% who think they are significantly behind. Overall, 35% of workers think they will need more than $1 million to retire and live comfortably. Read our full survey written by Lane Gillespie: https://lnkd.in/d2jjwXR8

Do you have any unused gift cards? Bankrate’s Gift Cards Survey found that over 2 in 5 U.S. adults have at least one unused gift card, gift voucher, or store credit, totaling about $27 billion in outstanding value nationwide and the average amount per person totals $244. Over one-third of U.S. adults (34%) have lost money due to a gift card misstep like letting a gift card expire (20%), losing a gift card (17%), or having a store go out of business before they used their gift card (12%). Millennials are more likely to have lost money due to gift card mistakes than other generations, at 41% versus 36% of Gen Zers, 35% of Gen Xers, and 26% of baby boomers. When it comes to making sure these gift cards don’t go to waste, Bankrate Senior Industry Analyst Ted Rossman says “sometimes we’re our own worst enemy when it comes to gift cards. We relegate them to the back of our wallet or stuff them in a junk drawer, never to be seen again. It’s best to use gift cards promptly. Treat yourself or buy a gift for a friend or family member. If nothing else, sell the gift card on a platform such as CardCash or Raise. You can often get at least 70 or 80 percent of what it’s worth.” Check your wallets, your inbox, and even your junk drawers for any forgotten gift cards! For the full survey: https://lnkd.in/e9gYFQRH

Are you sweating the Fed's rate cut? You probably shouldn't. The Fed's decision to cut interest rates by 50 basis points today -- and likely cut them more in the coming months -- has some investors sweating bullets. But history suggests that investors should not be too concerned about it, especially if they take a longer-term investing approach. While lower rates are often associated with a slowing economy or a recession, stocks are often up a year after the Fed first cuts rates. Research from Hartford Funds indicates that U.S. stocks are higher — 11 percent, after factoring in inflation — one year after the Fed begins slashing rates. That’s plenty of reason for investors to hold steady on stocks. Here's more on why investors should stay invested and keep compounding their gains: https://lnkd.in/gZ-kXYW7

NEWS: Are you surprised? I personally am! For the first time since the early days of the coronavirus pandemic, Federal Reserve officials cut interest rates and signaled that even more could be coming. But what was most notable wasn't the cut itself. Rather, what's capturing our attention is the size: Half a percentage point. Fed officials have typically reserved larger half-point cuts for major economic troubles. They cut interest rates by half a point on the precipice of the coronavirus pandemic, the dotcom boom and bust and then the Great Recession. In 1995, the Fed's first rate cut after a hiking cycle was only a quarter of a percentage point. On the flip side, when Fed officials first raised interest rates in 2022 as inflation was surging, they opted for a modest quarter-point cut — even despite being well behind the curve. What we can infer about the Fed’s latest move is, it's all about making sure the Fed avoids keeping interest rates too high for too long, needlessly slowing down the economy and — even worse — risking a recession. The bigger-than-expected move also reveals that officials want to prevent an economic slowdown from getting worse. Nevertheless, it’s a moment that many consumers have been waiting for, even if it does little to change the borrowing picture. Interest rates are now back to levels last seen in 2023. Before that, borrowing costs hadn’t topped their new level for over a decade. How are you feeling about the Fed's surprise move today? Did they make the right choice? Let us know in the comments, and follow along with our live coverage: https://lnkd.in/eYpqkWJB

Me and my lead foot had a great time 🚗 💨 speaking with Jeffrey H Snyder about Bankrate's Hidden Cost of Car Ownership Study. He asked a fantastic question concerning #telematics and whether this type of program can be helpful for drivers looking to save money on car insurance, and the answer is... maybe. 🤔 It depends on your driving and lifestyle habits. Most drivers will earn initial savings just for signing up for telematics and may be eligible for an additional discount if their driving meets the carrier's qualifications. However, even if you have never had an accident, do you drive more than average? Do you work late at night or overnight shifts? Do you tend to break hard or have a lead foot? If so, you might not see additional savings — with some carriers, your premium may increase based on the data they receive. So, before you sign up for a telematics program, be honest with yourself and assess your driving habits. For more information about whether telematic programs are worth it or not, read this great article written by R.E. Hawley. https://lnkd.in/gfPehdMS #carinsurance #discounts #safedriving

The Federal Reserve will announce a long-awaited interest rate cut this week. Their two-day meeting concludes on Wednesday, but it is important to note that this first rate cut is just the beginning. “Interest rates took the elevator going up but they’ll be taking the stairs coming down,” says Bankrate Chief Financial Analyst, Greg McBride, CFA “By itself, one rate cut isn’t a panacea for borrowers grappling with high financing costs and has a minimal impact on the overall household budget. What will be more significant is the cumulative effect of a series of interest rate cuts over time. It is important to continue aggressively paying down high-cost credit card debt or home equity lines of credit carrying double-digit interest rates as interest rates won’t fall fast enough to bail you out of a tight situation.” https://lnkd.in/eEkg3Cv Stay tuned for tomorrow’s announcement.