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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Lifestyle
Why the First Year Behind the Wheel is the Most Dangerous: Data Shows Teen Drivers 3 Times More Likely to be in Fatal Crash
Teen drivers are significantly at risk of fatal crashes, with those aged 16-19 being nearly three times more likely to be involved in accidents than older drivers. The first year of driving presents heightened dangers, but with proper preparation, including coaching, technology, and smart insurance, families can mitigate these risks and promote safety.
Why the First Year Behind the Wheel is the Most Dangerous: Data Shows Teen Drivers 3 Times More Likely to be in Fatal Crash
(Feature Impact) The driver’s license photo may be slightly awkward, but the milestone is unforgettable. For families, a newly licensed teen means independence, busy schedules and a new set of responsibilities.
Motor vehicle crashes remain one of the leading causes of death for U.S. teens, according to the Centers for Disease Control and Prevention (CDC). Data from the National Highway Traffic Safety Administration shows drivers ages 16-19 are nearly three times more likely to be involved in a fatal crash than drivers 20 and older, per mile driven.
The statistics are serious, but they’re also manageable.
“With the right preparation, teen driving doesn’t have to feel overwhelming,” said Susan Irace, manager, divisional claims at Mercury Insurance. “Experience is what young drivers are building. Parents can help shorten that learning curve with structure, technology and smart coverage decisions.”
Why the First Year Matters
Federal safety data shows crash risk is highest in a teen’s first year of independent driving. Night driving, teen passengers and distracted driving increase that risk – while seat belts, graduated licensing laws and supervised practice significantly reduce it.
In 2023, more than 2,800 teens ages 13-19 were killed in motor vehicle crashes nationwide, according to the CDC. However, teen crash rates have declined over time thanks to safer vehicles, graduated driver licensing programs and greater awareness of distracted driving.
Ways to Reduce Teen Driving Risk
The experts at Mercury Insurance encourage families to focus on preparation rather than panic.
1. Coach Early and Often
- Log supervised driving time in different conditions – highways, rain, nighttime
- Create a simple written driving agreement outlining expectations
- Limit teen passengers during the first year
- Make seatbelts non-negotiable
2. Let Technology Help
- Choose vehicles with safety features like automatic emergency braking and blind-spot monitoring
- Use telematics or safe-driving feedback tools to reinforce good habits
- Activate smartphone “Do Not Disturb While Driving” settings
3. Review Insurance Before the Keys Change Hands
- Add teens to your insurance policy promptly
- Revisit liability limits to protect family assets
- Ask about good student and driver training discounts
“Insurance is about preparation, not fear,” Irace said. “When families combine active coaching with the right coverage, they’re setting their teen up for safer miles ahead.”
Preparation Turns Risks into Confidence
The first solo drive is a milestone, but preparation determines what comes next. By pairing common-sense coaching with today’s vehicle safety technology and thoughtful insurance planning, families can support independence while managing risk responsibly.
For more teen driver safety tips and coverage guidance, visit MercuryInsurance.com/resources.
Photos courtesy of Shutterstock
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Lifestyle
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
Students aiming to equip themselves with the skills and experience necessary for the future workforce can seek:
- 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.
To learn more about how students can pursue education for what’s next, visit JA.org.
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Travel
Tighter Budgets Haven’t Stopped Travel. They’ve Changed How Americans Plan
Tighter Budgets Haven’t Stopped Travel:Tighter budgets are altering American travel plans, but most still prioritize vacations despite financial concerns.
Tighter Budgets Haven’t Stopped Travel. They’ve Changed How Americans Plan
(Tiffany Miller for ALG Vacations) The flight search is open, but many travelers are pausing before they book. Prices feel higher than last year, headlines are heavy and budgets are tighter. Still, the question isn’t whether to take a vacation, but how to make it work.
A November 2025 survey from ALG Vacations of U.S. adults planning to travel in 2026 shows that financial pressure is reshaping how people approach vacations, not whether they take them. While 81% say they have at least some concern about their household finances in the months ahead, 92% say they would still travel even if tighter finances required scaling back.
Financial pressure shapes decisions, not demand
That shift shows up in the small moments of planning. Travelers are taking longer to compare prices, reconsidering timing and adjusting expectations before they book.
Inflation and rising prices top the list of concerns, cited by 61% of respondents, reinforcing why travelers are rethinking destinations, trip length and overall costs.
Concerns about global events and safety follow at 39%, with broader political and economic instability close behind at 38%.
Still, those worries rarely lead travelers to walk away from travel altogether. Instead, many describe pulling back in measured ways, scaling down plans, rethinking details and making trade-offs that keep a trip possible, even if it looks different than originally imagined.
Experience changes how travelers move from planning to booking
Not all travelers navigate those trade-offs the same way. For some, uncertainty slows the process. For others, familiarity helps clear the final hurdle.
Among respondents who have previously booked a packaged vacation through a major vacation brand, 80% say they plan to take an international trip in the next year, compared with 46% of those without that experience.
That confidence carries into spending decisions as well. Sixty-seven percent of packaged-vacation travelers expect to spend more than $2,500 on their next trip, compared with 47% of those who have never booked a packaged vacation.
Taken together, the findings point to a confidence gap, with prior experience linked to greater comfort committing to international travel and higher spending.
Professional guidance plays a larger role when planning gets complex
For many travelers, planning no longer stops at picking dates and destinations. Rising prices, shifting availability and higher expectations have turned vacation planning into a series of decisions that feel harder to navigate alone.
That complexity shows up most clearly among travelers with prior packaged-vacation experience. Ninety-four percent say they plan to use a travel advisor, compared with 81% of those without prior packaged-vacation experience.
The gap suggests that familiarity with structured travel planning often leads travelers to seek expert guidance. As trips become more layered, getting the details right matters as much as the destination itself.
Travel remains a priority, even as decisions slow
The findings suggest that travel is still very much on the table, even as decisions take longer to make. Travelers are weighing trade-offs, seeking guidance and leaning on experience as they plan, rather than walking away altogether.
The flight search may stay open a little longer this year. But for many Americans, the trip is still happening.
Methodology
ALG Vacations commissioned Atomik Research to conduct an online survey of U.S. adults planning to travel and travelers with prior packaged-vacation experience in the United States.
The survey included 1,000 adults planning to travel and a subsample of 502 respondents who had previously booked a packaged vacation through a major vacation brand.
The margin of error is plus or minus 3 percentage points for the full sample and 4 percentage points for the packaged vacation subsample at a 95 percent confidence level.
Fieldwork was conducted in November 2025. Atomik Research, part of 4media group, is a creative market research agency.
Photo courtesy of Shutterstock
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