Markets climbed on Monday while Democrats pushed forward with their stimulus bill. Plus, new research shows earning more money could boost happiness. Here's how the headlines could affect your money.
Markets started February on a positive note, with all three major indexes gaining Monday. The Dow rose 0.8%, the S&P, 1.6%, and the Nasdaq, 2.6%. GameStop, whose skyrocketing stock price threw the markets into a frenzy last week, has been falling.
Markets continued their rise Tuesday morning.
House and Senate Democrats are pushing ahead with President Joe Biden's $1.9 trillion coronavirus relief package, which includes another round of $1,400 stimulus checks, even after the president met with 10 Republican lawmakers Monday about their proposed $618 billion counter-bill.
Senate Majority Leader Chuck Schumer and Speaker of the House Nancy Pelosi introduced a budget resolution Monday, beginning a process that would allow them to pass the bill with a majority vote. The House aims to approve the measure this week.
Video by Helen Zhao
A famous 2010 study concluded that making more money after you reach $75,000 a year does not necessarily make you happier. But two recent studies find that, in fact, happiness does continue to rise along with income.
"More money meant more happiness no matter how high up the income scale you went," says Jean Twenge, a psychology professor at San Diego State University who authored one of the studies.
Which is a good reminder that it's never too late to advocate for a raise.
A baby bond is a small government trust account issued to citizens at birth. Senator Cory Booker, D-N.J., and Congresswoman Ayanna Pressley, D-M.A., recently called for every American child to get $1,000 in a federally issued savings account at birth, with anywhere from $0 to $2,000 added yearly, depending on their family's income, until the child turns 18. The two have urged President Biden to include the measure in the latest economic stimulus.
Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.
More from Grow:
- President Biden's 'Day One' money moves and how they could affect your bottom line
- The stock market should work for 'everyday people,' say AOC and Reddit founder Alexis Ohanian
- There’s no $75,000 earnings cap on happiness, Wharton study finds: More money means more happiness no matter how much you make