Is our economy too dependent on the wealthy?

Good morning, and Happy New Year. We hope you were able to take some time to recharge this week, and that you’re looking forward to a fresh start in 2026 — just as soon as you finish off those holiday leftovers in the fridge.

If you’re young and feel like you’ll never be able to afford a house or comfortably retire, you’re not alone.

 According to a poll from the Institute of Politics at Harvard Kennedy School, 43% of Americans aged 18 to 29 are “struggling or getting by with limited financial security,” and only 30% believe they’ll be better off financially than their parents.

 “Why is it that boomers were able to buy houses on a single income, but for young people, even saving for a down payment feels impossible?” asked personal finance expert Ramit Sethi on an episode of I Will Teach You To Be Rich.

Sethi claimed boomers built wealth in a system that no longer exists, then changed the rules in ways that make it harder for younger people to benefit.

 This can mainly be seen, according to him, in pensions and housing. “This is not about young people spending too much on avocado toast,” said Sethi.

Sethi also argued that some of the financial advice out there — from the likes of Dave Ramsey and Kevin O’Leary — is “outdated” and stuck in old financial frameworks that don’t take into account the modern economic reality for most Americans.

Here’s why he believes these frameworks don’t work and what young people should focus on instead.

Which U.S. document officially took effect on January 1, 1863?

A The Homestead Act

B The Louisiana Purchase Treaty

C The Bill of Rights

D The Gettysburg Address

E The Emancipation Proclamation

Scroll for the answer

Crypto may be more mainstream than ever, but that doesn’t mean Americans are sleeping well after buying in. 

A recent National Cryptocurrency Association study shows 55 million Americans now invest in cryptocurrency.

“Some use it to invest in their financial future, others for art and games, and still more are simply curious and testing the waters,” the NCA said in the report. “In addition, many are already using crypto to make everyday purchases.”

But not everyone’s going in with confidence. A recent Gallup survey found a strong majority of respondents view cryptocurrency as risky, with 55% saying it’s “very risky” and roughly another third say it is “somewhat risky.” 

For good reason: many investors have already lived through multiple crashes. The 2022 collapse that wiped out roughly $2 trillion in market value still lingers, and fresh price swings may not be helping.

Whether you’re a ‘normie’ investor or someone who believes crypto is the future, here are some tips on how to prepare for investing in this alternative currency, including bracing yourself for the highs and lows.

The first lesson many of us learn about money is that spare change adds up. But what if you rarely use cash anymore?

With Acorns, you can finally make better use of your digital dimes and nickels. 

Whenever you buy something with your credit or debit card, Acorns automatically rounds up the price to the nearest dollar, and places the excess — the coins that would wind up in your pocket if you were paying cash — into a smart investment portfolio.

Your spare change may not seem like much, but look at this math: $2.50 worth of daily round-ups add up to $900 per year — and that’s before your savings earn money in the market.

Signing up for Acorns takes less than five minutes, and you can start saving automatically for as little as $3 a month. Plus, if you use our special link, Acorns will add $20 to your account as soon as you make your first investment.

Millions of people have already used Acorns to turn their spare change into money-making investments. Don’t wait — start saving today.

Despite rising prices at the grocery store and lingering concerns about inflation, some Americans are still spending freely — and they’re largely the ones keeping the economy afloat. 

A new report from Moody’s Analytics shows the top 10% of earners now account for nearly half of all U.S. consumer spending, a historic high that shows how dependent economic growth has become on wealthy households.

Those top earners, defined as Americans making at least $251,000 in 2024 according to Census data, drove 49.2% of consumer spending in the second quarter of 2025. That share has steadily grown for years: it was about 46% in 2023 and roughly 43% in 2020.

“Their financial situation is about as good as it’s ever been,” Moody’s chief economist Mark Zandi told USA Today. Surging stock prices, record-high home values, and years of pandemic-era savings have boosted their purchasing power even as many other households remain squeezed.

Meanwhile, consumer confidence among middle earners has fallen to its lowest point since mid-2022, reflecting growing anxiety among families facing higher costs and limited financial breathing room.

This growing divide between high and middle to low earners is fueling what economists call a K-shaped economy, where one group (typically higher earners) continues to climb while another plateaus or declines.

With this potentially dire economic outlook ahead for middle-income earners, here’s how you can budget, balance wants and needs, and find ways to spend without breaking the bank.

Which U.S. document officially took effect on January 1, 1863?

E) The Emancipation Proclamation

The Emancipation Proclamation took effect on January 1, 1863 — turning New Year’s Day into a date with real historic weight. It declared freedom for enslaved people in areas “in rebellion” against the United States, which is a detail that surprises a lot of trivia fans. It also changed the direction of the Civil War and helped clear the way for Black soldiers to formally serve in the Union Army.