financial wellness
Informal safety nets help many Americans with expenses – people at all income levels benefit from this ‘financial interdependence’
Many Americans engage in informal financial support networks, reflecting cultural traditions and economic needs, which are becoming increasingly vital amid rising living costs and economic pressures.
Jeffrey Anvari-Clark, University of North Dakota
About 1 in 5 American adults regularly provide unpaid care or financial assistance to their adult relatives or friends. And about 1 in 7 young adults between the ages of 25 and 34 live with their parents.
But the true extent of support among Americans is deeper and broader.
From parents covering the cost of unexpected car repairs to colleagues raising funds for their co-workers’ medical expenses, Americans help each other in countless ways.
As a social work scholar who researches these patterns of what I call “financial interdependence,” I often observe transactions that challenge a common American narrative that most people in this country are handling their expenses on their own.
A long-standing tradition
The practice of sharing money with your friends and loved ones has deep roots in American society. Many Native American communities have traditions of sharing food and other resources with one another.
In the 19th century, mutual aid societies formed everywhere from Philadelphia to Florida. Many of them helped free Black people weather economic hardships. These organizations provided everything from unemployment assistance to burial expenses.
Today’s informal support networks echo these historical patterns.
In particular, many immigrant communities maintain traditional practices of collectively saving and lending money. Mexican American families often participate in “tandas,” which pool their savings to achieve financial goals or meet urgent needs. Similarly, West African and Caribbean communities in the U.S. organize “susu” groups, while many Chinese American communities form “hui” associations.
Local “hometown associations” additionally often offer both financial and social support to their members – aiding immigrant communities in the U.S. and people back in their homelands.
Everyone does it
These mutual support arrangements are very widespread and operate across all income levels, though they take different forms. They can be secular or religious. The true extent of this kind of activity is generally unknown.
Lower-income families often engage in frequent, smaller exchanges. They might share grocery costs, for example, or relatives may help one another out with the payment of large, unexpected bills.
Wealthier Americans tend to give larger amounts of money to extended family members, but less often. These might include a parent’s help with a down payment on a young adult’s first house or paying a portion of the cost of a grandchild’s college education.
Some families establish formal structures such as financial trusts or 529 educational savings accounts to make these transfers easier to complete and track. The number of people using 529 accounts has been increasing steadily, as states offer matching funds and tax incentives.
The nature of this financial support often reflects economic needs and cultural values. In many East Asian American communities, for example, adult children routinely provide financial support to their parents – as a cultural expectation.
Regardless of the community involved, technology has transformed how people share money with their friends and family.
Mobile payment platforms make it easier to split costs and send quick assistance. Money-transfer apps have normalized small-scale financial sharing among friends and family.
Online and social media platforms are used to gather resources for medical expenses, funerals or emergency needs. These tools extend traditional support networks beyond geographic boundaries.
Other kinds of support
Financial assistance can extend far beyond direct monetary help.
Families and communities might purchase bulk grocery items together to save money, or live together to manage rising housing costs. Some parents create informal child care cooperatives, while others coordinate care responsibilities for aging relatives with their extended families.
Financial education often emphasizes individual savings and budgeting. Yet, many Americans practice financial interdependence by managing their finances and making decisions in collaboration with others.
Addressing challenges
To meet today’s economic challenges, Americans are finding creative solutions through shared resources.
Young adults increasingly need more help to become homeowners than what they can get from a bank. The median home price has far outpaced wage growth, making family assistance crucial for many first-time buyers.
College costs have stabilized, albeit at high levels, leading more families to pool resources for educational support. This often creates long-term financial obligations across generations.
Medical expenses remain a leading cause of financial strain, pushing families to rely on each other to pay for health-related costs.
These support systems work at many levels, including family, community, the workplace and in government.
Some employers now offer emergency loan programs and matching funds for employee hardship. Some businesses create formal peer support systems for employees facing financial challenges.
A few states are also supporting family caregivers by providing tax credits to reimburse their out-of-pocket expenses.
Recognizing the financial burden of caregiving, Michigan Gov. Gretchen Whitmer has proposed a tax credit to support dependent respite services, nursing and transportation.
Some complications
While financial interdependence provides crucial assistance, it can also create challenges.
Financial responsibilities can strain family and friendship bonds. The provision of too much financial help can create or reinforce power imbalances within relationships. Some communities may not have enough money to be able to equally and effectively assist all members.
Clear communication and healthy boundaries can help manage these tensions.
As economic pressures mount for many American families, these informal financial support networks are growing more vital. Studies show that rising costs make financial stability increasingly difficult to achieve on your own.
Jeffrey Anvari-Clark, Assistant Professor of Social Work, University of North Dakota
This article is republished from The Conversation under a Creative Commons license. Read the original article.
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Preparing Students for What’s Next in Work
Preparing Students: Automation, AI and societal economic changes are affecting the workforce and making a significant impact on the employment prospects of future generations. Consider this guidance to put students on the path toward greater earning potential and economic mobility in a rapidly changing economy.
Preparing Students for What’s Next in Work
(Family Features) Automation, AI and societal economic changes are affecting the workforce and making a significant impact on the employment prospects of future generations. More than one-third of today’s college graduates are “underemployed,” meaning they work jobs that don’t require a college degree and may pay less than a living wage, according to data from the Federal Reserve Bank of New York. At the same time, a World Economic Forum report explored how advances in AI are threatening to negatively impact access to entry-level and even mid-level jobs for millions of Americans. Looking ahead, research by Georgetown University indicates that by 2031, 70% of jobs will require education or training beyond high school. However, data from the National Center for Education Statistics indicate only one-third of high school graduates go on to complete a college degree with many of those being in fields that are not in high-earning, high-growth professions. These challenges are not lost on today’s students. In a survey by Junior Achievement and Citizens, 57% of teens reported AI has negatively impacted their career outlook, raising concerns about job replacement and the need for new skills. What’s more, a strong majority (87%) expect to earn extra income through side hustles, gig work or social media content creation. “To put students on the path toward greater earning potential and economic mobility in a rapidly changing economy, students need proactive education and exposure to transferable skills and competencies, such as creative and critical thinking, financial literacy, problem-solving, collaboration and career planning,” said Jack Harris, CEO, Junior Achievement. This assertion is consistent with findings from the Camber Collective. This social impact consulting group identified four key life experiences students can consider and explore that positively affect lifetime earnings, including:- Completing secondary education
- Graduating with a degree in a high-paying field of study
- Receiving mentorship during adolescence
- Obtaining a first full-time job with opportunity for advancement
- Learning opportunities that are designed with the future in mind. For example, learning experiences offered through Junior Achievement reflect the skills and competencies needed to promote economic mobility.
- Internships or apprenticeships that provide hands-on experience and exposure to a career field that can’t be found in a textbook.
- Volunteer or extracurricular roles that develop communication and leadership skills. Virtually every career field requires these soft skills for growth and greater earning potential.
- Relationships that provide insight and connection. Networking with individuals who are already excelling in a chosen field, as well as peers who share similar aspirations, offers perspective from those who are where you wish to be and potentially opens future doors for employment.
- Courses that offer introductory insight into a chosen career path. Local trade or technical schools and other training organizations may even offer certifications that align with a student’s area of interest.
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Last Updated on January 4, 2026 by Daily News Staff
(Family Features) After the mortgage, utility costs, including electricity, likely make up one of the most significant portions of monthly budgets for the typical American household. In fact, according to data from the U.S. Energy Information Administration, the average residential electric bill in the United States is $143.
However, reducing your family’s energy costs is possible by following some smart, practical, cost-cutting tips from the heating and cooling experts at Mitsubishi Electric. Consider these ways to help dial down your energy bills.
Service HVAC Systems Regularly
To ensure the best performance and efficiency possible, find a licensed contractor to keep your heating and cooling system well-maintained and serviced throughout the year. There are some tasks many homeowners can handle on their own, like keeping outdoor units free of debris and changing air filters. Some filters are removable and washable, saving you money. However, bringing in a professional 1-2 times a year for maintenance and to ensure proper function of ductwork and electrical components is also essential.
Use Appliances During Non-Peak Hours
Rather than using stoves, ovens and clothing dryers in the afternoon hours, consider doing so early in the morning or late in the evening. Peak time for many electricity providers is noon-6 p.m., meaning using these appliances outside of this timeframe when conventional heating and cooling systems are likely running full throttle can help lower energy costs.
Upgrade Your System
The Inflation Reduction Act (IRA) incentivizes homeowners that opt for energy-efficient air-conditioning and heating options to replace fossil-fuel-fired furnaces. This includes upgrading your existing HVAC system to a qualified heat pump. For example, Mitsubishi Electric heat pumps provide more energy-efficient cooling and heating that equals cost and energy savings as well as a reduced carbon footprint for homeowners.
Installing a smart electrical panel alongside an all-electric heat pump enables homeowners to monitor and control energy consumption on-site or remotely using a smartphone for better overall efficiency and utility cost savings.
Harness the Sun’s Energy with Solar Panels
According to the Office of Energy Efficiency & Renewable Energy, the amount of sunlight that strikes the Earth’s surface in 90 minutes could power the world’s total energy usage for a full year. Investing in solar panels can help decrease energy bills and increase your home’s sustainability. Additionally, some utility providers and government entities, including the IRA, offer incentives to help reduce installation costs.
Avoid Heating or Cooling Unused Spaces
One mistake many homeowners make is forgetting to adjust their temperature settings when leaving the house. Whether you’re headed out for the weekend or just headed to work for the day, running your system in an empty house can result in unnecessarily high utility bills.
Multi-zone, all-electric heat pumps like those from Mitsubishi Electric allow homeowners to set the comfort level and adjust the temperature in each room, reducing the energy waste of cooling unoccupied rooms. With a smartphone app, you can even adjust the settings remotely.
Find more ways to increase energy savings while making your home more sustainable by visiting MitsubishiComfort.com.
Photo courtesy of Getty Images
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Mitsubishi Electric
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Last Updated on December 31, 2025 by Daily News Staff
Make Your Job Work for You
(Family Features) For some people, job dissatisfaction is the result of a crummy boss or stifling work environment. For others, the problem lies much deeper; it’s a need to reevaluate your career path and find a more suitable fit.
If you’re considering a career change but not sure which direction you’re headed, consider these words of wisdom:
Do some self-reflecting. Take time to give your current work situation a thorough analysis. Determine which elements you enjoy, what rubs you the wrong way and what you’d change if you could. Think about practical solutions to the problems you identify whether it’s changing to a different role in the same field or exploring a new industry entirely. Avoid the temptation to focus on the negative. Rather, take plenty of time to consider the positive aspects of your current job, since that insight can help inform your next step. For example, if you enjoy the limited contact you have with customers, a job with more customer-facing interaction might not be a good fit.
Ask for input. Sometimes loved ones hold the key to a happier career path because they can point out details you don’t recognize. They might recall a time when you were most relaxed and happy, or they might point out talents or skills you take for granted. Often, these natural abilities are an excellent foundation for a career because you’re well-equipped to be successful.
Consider your personal interests. Keeping your personal life and professional life separate isn’t necessarily a bad idea but finding a way to merge the two can be useful. This is especially true if you’re able to combine training or skills with something you’re passionate about. For example, if you’re an avid outdoorsman, you might find great satisfaction in applying your business management background to work for a company that specializes in camping gear.
Understand what motivates you. Landing in the right job isn’t just about having the right qualifications for a position that interests you. At the end of the day, you’ll feel most content when your job offers meaningful rewards. Motivators can be financial, or they might have more to do with the ability to learn and grow. Some people are willing to sacrifice a bigger paycheck to know they’re making a meaningful contribution in a field they care about. Knowing what outcomes resonate best can help you find a more rewarding career.
Do your research. Changing your career path is a big move, and one you shouldn’t take lightly. Before diving in, spend time looking into the field you’re considering so you have a better sense of factors like growth opportunities, job availability, qualifications, compensation and more. If you find you aren’t quite qualified for the job you think you want, explore what it will take to get there whether it’s training, education or putting in your time to gain experience and work your way into the role you desire.
A career change may be just what you need to shift your life in the direction you want. Find more career advice at eLivingtoday.com.
Photo courtesy of Unsplash
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