Investing

More states get the OK to boost unemployment by $300/week: What today's news means for your money

More than half of states have received the OK to send out an extra $300/week in enhanced unemployment. Plus, a lineup change is coming up for the Dow.

Share
Twenty/20

A Dow shakeup and pending unemployment benefits are making news today. Here's how the headlines could affect your money:

Dow changes its lineup

The Dow Jones Industrial Average will look a little different next week. S&P Dow Jones Industries announced Monday that the 30-stock benchmark index will be changing its lineup before the market opens August 31.

Three new companies will be joining: Salesforce, Amgen, and Honeywell. They will replace Exxon Mobil, Pfizer, and Raytheon Technologies, respectively.

What's behind the move? Apple's upcoming stock split, which will boost its number of outstanding shares and lower its price per share. That in turn affects the price-weighted Dow's calculations and reduces its exposure to the technology sector.

VIDEO3:3503:35
How to read a stock ticker

Video by David Fang

States sign on to offer enhanced unemployment benefits

More than half of states have received approval to send out $300 per week in enhanced unemployment benefits on top of their standard jobless payments. President Donald Trump signed an executive order earlier this month to set this in motion. 

How much you could receive in enhanced aid varies by state. Some, including Kentucky and Montana, are kicking in up to another $100 from a federal coronavirus relief fund, so residents could get as much as $400 total.

The benefits are retroactive to August 1 and states say most workers should receive them automatically.

Be on the lookout for an extra IRS refund check

The IRS announced earlier this summer that it would pay interest on tax refunds issued after April 15, due to the delayed July 15 tax deadline. Those payments are set to go out to 13.9 million taxpayers via direct deposit or check, however you received your regular tax refund. 

It's a small windfall: The average interest payment is $18 and is considered taxable income you'll report on your return next spring.

VIDEO3:1303:13
Where your federal taxes are spent

Video by David Fang

Words you've heard: price-weighted

The Dow Jones Industrial Average is price-weighted, meaning the index's value is calculated based on the share prices of the 30 blue-chip company stocks it tracks. The higher a company's stock price, the bigger the effect it can have on the Dow's movements.

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: