News You Can Use

Student loan forbearance ending this month: How the headlines could affect your money

The major indexes opened lower Monday.

Share
Julie K. | Twenty20

Markets pull back from last week's record highs, millions of student loan borrowers face repayments next month, and how to decide whether to use cash or cards. Here's how the headlines could affect your money.

Markets slide from record highs

All three major indexes opened lower and dipped Monday morning as markets gave back some of their Friday gains. Despite the recent violence at the Capitol and disappointing jobs numbers, stocks are coming off a record week.

Student loan forbearance ending this month

Student loan borrowers are expected to have to restart payments in February. Lawmakers initially planned to extend federal student loan forbearance through April 30, but that provision didn't make it into the final version of the $900 billion stimulus bill signed into law in December.

If you're making less money as a result of the pandemic, experts suggest applying for an income-based repayment plan or requesting an unemployment deferment. 

VIDEO2:0902:09
Suze Orman's 2 rules for borrowing student loans

Video by Stephen Parkhurst

Is cash or credit best for your budget?

Fewer Americans are using cash now than before the pandemic: Just 16% of consumers say they normally carry it, and 58% plan to phase out paper completely. While debit and credit cards are convenient to use and track, experts say cutting out cash altogether could be a mistake. Studies show consumers are more likely to make impulse buys with plastic rather than physical money, for example. 

Check out these pros and cons to phasing out cash and focusing on cards.

Words you've heard: impulse buy

An impulse buy, or a purchase made on a whim, can be disruptive to your budget. It can be easier to avoid these types of transactions if you spend with cash, experts say, and put a limit on the amount of money you carry with you.

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:

acorns+cnbcacorns cnbc

Join Acorns

GET STARTED

About Us

Learn More

Follow Us

All investments involve risk, including loss of principal. The contents presented herein are provided for general investment education and informational purposes only and do not constitute an offer to sell or a solicitation to buy any specific securities or engage in any particular investment strategy. Acorns is not engaged in rendering any tax, legal, or accounting advice. Please consult with a qualified professional for this type of advice.

Any references to past performance, regarding financial markets or otherwise, do not indicate or guarantee future results. Forward-looking statements, including without limitations investment outcomes and projections, are hypothetical and educational in nature. The results of any hypothetical projections can and may differ from actual investment results had the strategies been deployed in actual securities accounts. It is not possible to invest directly in an index.

Advisory services offered by Acorns Advisers, LLC (“Acorns Advisers”), an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”). Brokerage and custody services are provided to clients of Acorns Advisers by Acorns Securities, LLC (“Acorns Securities”), a broker-dealer registered with the SEC and a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”). Acorns Pay, LLC (“Acorns Pay”) manages Acorns’s demand deposit and other banking products in partnership with Lincoln Savings Bank, a bank chartered under the laws of Iowa and member FDIC. Acorns Advisers, Acorns Securities, and Acorns Pay are subsidiaries of Acorns Grow Incorporated (collectively “Acorns”). “Acorns,” the Acorns logo and “Invest the Change” are registered trademarks of Acorns Grow Incorporated. Copyright © 2019 Acorns and/or its affiliates.

NBCUniversal and Comcast Ventures are investors in Acorns Grow Incorporated.