Show: On The Town Station: KNCO File: 9:4.mp3 Air date: 2026-09-04 Source: OpenAI whisper-1 · shrunk from 27.1 MB to 5.4 MB --- transcript --- How Much Do You Really Know About Money? For example, do you know the difference between good debt and bad debt, a Roth IRA versus a regular IRA? The 2026 Personal Finance Index found that financial literacy in the U.S. is at its lowest point since that study began a decade ago. That's why ABC's Annalisa Linder is about to school us on saving. You get your first paycheck, and you're like Rachel on Friends. You realize it's a lot less than you anticipated. What are all of the deductions for? How are you going to spend what's left? Will you save some of it? How you manage your money today not only affects the present, but it can also define parts of your future. According to the 2026 Personal Finance Index, U.S. adults, on average, were only able to answer 47% of 28 index questions used to measure financial literacy. The results showed that people with low financial literacy are four times more likely to have trouble making ends meet and four times more likely to not have enough savings to cover one month of living expenses. So what is financial literacy? It's not just understanding the definitions and the terminology, but really having strong habits around how to have a plan around your cash flow, your debt, your savings and your investments and understanding how you can use these as tools in an efficient way. I talked to several money experts to find out what you need to know about personal finance. Number one, spending. It's important to know where your money is going. You may have heard of the 50-30-20 budgeting rule. 50% for needs, 30% for wants, 20% for savings. Certified financial expert Chelsea Ransom Cooper says this is a good place to start. But there are some caveats. It's important to give yourself some grace if your percentages skew a little bit higher, especially if you have a more expensive cost of living. And sometimes that 20% savings can feel like it's a little difficult to get to in the beginning. So I encourage people to start at at least 10% and then just increase it 1% each year until you get to that 20%. For those who may need a little more structure, there's the high five banking method. You have the two checking accounts and then you have three savings accounts. One that's for emergencies, one that's for long term goals, one that's for medium term goals. Ransom Cooper says this will usually align with the 50-30-20 method. But I spoke to Marietta Hall, another certified financial planner, and she does not follow percentages. I don't tell people to budget. Budget's like a root canal and nobody enjoys it. They aren't going to do it. What I want clients to have is an awareness of what they're spending and say, like, you think you're spending this. Are you surprised by what your bank tracking or your credit card tracking is telling you? Tori Dunlap, CEO of HerFirst100K, calls it the money date. Once a month minimum, we want to take time that we schedule in our day. This is non-negotiable time where I look at my money. I'm looking at what's coming in, what's coming out, what can I further optimize? I'm not making myself feel bad. There's no judgment here. I am just looking at data. Tracking your spending can also help you spot lifestyle creep. That's when your spending increases as your income increases. Every time you get a raise, you can either create a habit of saving more or you can unconsciously let your lifestyle creep to suck up that wage. Hall says it is the number one killer of goals. Number two, saving. Shouldn't we be saving, putting this in the bank? Well, that's no fun. In 2025, a report from the Federal Reserve found that only 55% of adults in the U.S. have enough emergency savings to cover three months of expenses. An emergency fund should be three to six months of operating expenses. Ideally, that'll put you in a situation where if you do have an emergency that comes up, where your car breaks down or you need to take some time off of work, you can dip into that emergency fund without going to the credit cards. I keep my emergency fund in a high-yield savings account. Where a high-yield savings account is really attractive is you're getting higher interest than a regular savings account. So this can be anywhere from 2%, 3%, or 4%. So the value add is now your money is keeping up with inflation. All of the experts I spoke to had the same piece of advice. Automate transfers to your savings account. Automation can be really, really key to just start to build more confidence in your finances. It's one less thing that you have to worry about, and it can start to remove some of the anxiety and the stress that you have around your finances. Dunlop says automation played a big role in how she was able to save up $100,000 by the time she was 25. Future Me was another bill. Set up an automatic transfer that happens maybe every time you get paid or once a month so that you are paying yourself first. If you have savings you know you won't need for a while, you can open a CD or certificate of deposit. A certificate of deposit is similar to a high-yield savings account. The only difference is it's for a fixed amount of time. So typically we'll see these for 3 months, 6 months, 9 months, or 12 months. You're typically getting a little bit more interest than a high-yield savings account, but your money is locked up for whatever the timeline is. The best time to start investing was yesterday. The second best time is today. Let's get straight to the question on everyone's minds. What is the difference between a Roth IRA and a traditional IRA? IRA stands for Individual Retirement Account, which is assigned to your name and your social security number directly. Depending on where your income is, you might be able to get a deduction for putting this money in. Money grows tax-free while it's in the account, and then when you pull the money out, you'll have to pay the tax at that point. When you put the money in, you do not get a deduction, so there aren't any short-term benefits to your taxes. But when you pull the money out, that money is tax-free. 100% of that money is yours as long as you keep it in there until retirement. I was setting up a Roth IRA at 22. I was working hard to maximize that. So I was not only working hard for my money, but my money was working hard for me. Ransom Cooper says it's okay if you can't put a lot in, but she recommends contributing something, even if it's only 1%. In the beginning, the most crucial thing is making sure you're consistently putting money into appreciating assets. That rate is actually more important than the rate of return that they're getting. Hall says she sees a lot of clients make a common mistake, relying on investment performance over their contribution. Investment performance is just the gravy. The people that retire are because they live within their means and they saved money all of their life. And finally, don't forget to invest in yourself. One thing I can point to that has the most return on investment, has the best ROI, it is investing in your financial education, especially at this moment where everything seems so chaotic, where everything seems so expensive. Your financial education will show absolute dividends. Annalisa Linder, ABC News. Coming up after the break. I feel like I am trying to run through mud to connect with my followers at this point. That's when On The Money continues. 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I know what I want to do. I want to see the Lord of the Rings trilogy again. Hi, it's Barbara Swinhart with a theatrical episode of Community Calendar. The Del Oro is showing all three Lord of the Ring movies on the big screen on September 16th for Fellowship of the Ring, October 7th for Two Towers, and Return of the King on November 4th. Those are all Wednesdays at 6 p.m. and each movie costs just one dollar. Contact Prime Cinemas to get more details. And the Nevada Union FFA drive-thru barbecue is on October 6th. But you need to place your order by September 17th. Get more information at 530-913-9505. This is Barbara Swinhart for KNCO News Talk 830. Wait! Haven't you already seen those movies? Sneaker did it once. He can do it again. Three generations, 50 years, and countless happy memories. Foothill Mercantile is celebrating a golden milestone with a very special two-day sale. Saturday and Sunday, September 19th and 20th, you'll save on every purchase at Foothill Mercantile. Just draw for your discount savings, up to 50% off. Come browse an ever-expanding collection of gifts, housewares, holiday decor, toys, collectibles, candy, and greeting cards, all inside of one of downtown Grass Valley's most beloved stores, Foothill Mercantile. Since 1976, this family-owned store has welcomed generations of shoppers. Children who once explored the toy aisles now return with children of their own. Don't miss the two-day golden anniversary sale Saturday and Sunday, September 19th and 20th at Foothill Mercantile, 121 Mill Street in the heart of Mill Street Plaza. 50 years, and still full of surprises. Dad, have you seen how outdated our window treatments are? Yeah, we definitely need to do something about that. What are you thinking? I was checking out Budget Blinds of Grass Valley. They've got so many options. Blinds, shades, shutters, you name it. Sounds good. I wonder if they offer cordless options for safety. They do. They're all about keeping it safe, especially for younger kids and pets. That's important. And where are they located? Right on 310 Colfax Avenue. Plus, they do free in-home consultations. Can't beat that convenience. Perfect. Give them a call at 530-274-1122 and set something up. Explore a variety of stylish options including child-safe and cordless solutions. Upgrade your home with Budget Blinds of Grass Valley located at 310 Colfax Avenue. Or call them at 530-274-1122 to set up your free in-home consultation today. Transforming your windows, transforming your home. Spend less time on chores and more time doing what you love. At Eschaton Village Grass Valley, that's everyday life. Nestled on 42 beautiful acres in the Sierra foothills, Eschaton Village Grass Valley is a non-profit senior living community designed to help you live fully. And as a non-profit, we reinvest every dollar into creating a vibrant, supportive community for our residents. Picture starting your day with a swim in the heated indoor pool, enjoying lunch with friends in our restaurant, or taking a stroll along our pet-friendly walking paths all without worrying about cooking, cleaning, or yard work. With 24-7 staff, housekeeping, a full culinary program, and a lively calendar of activities, you'll have endless opportunities to connect, explore new interests, and deepen friendships. Whether you're looking for independent living or the peace of mind of assisted living and memory care, Eschaton Village Grass Valley is here for whatever life brings. To learn more, visit us at eschaton.org or call us at 530-273-1778. Hi, this is Ryan Valdez with Rock Rose Risk. Like many Californians, I've watched homeowners face rising insurance costs, policy cancellations, and growing uncertainty, especially in wildfire-prone areas. That's why we created Rock Rose Risk. We work with homeowners, ranchers, farms, HOAs, multifamily, and businesses to better understand and reduce wildfire risk, and help insurance companies recognize the mitigation work being done. The result? Many of our clients save an average of 21-35% on insurance premiums while making their properties safer and more resilient. We believe people who invest in protecting their property should have better options. If you're frustrated with wildfire insurance, let's have a conversation. Visit rockroserisk.com to learn more. That's rockroserisk.com. Hear that? That's the sound of your life. Perfectly imperfect. Beating in rhythm to the world you've created. But every time you drive after drinking, the music gets drowned out. Your life sounds pretty great. Don't let a buzz ruin it. Buzz driving is drunk driving. Don't drive buzzed. A message from Nitzan, the Ad Council. You're listening to On the Money from ABC News Radio. I'm Mike Dubosky. The word influencer may get you thinking about gaming live streams, restaurant reviews, or beauty and fashion. ABC's Rachel Walker talks us through how changes in the economy are affecting the beauty influencer space and how a new era of creators is encouraging their audiences to cut back on spending. Mike, if you're on social media, you've probably seen an influencer. Hi, guys. Welcome back to my channel. Hello, internet. I'm Dan. And I'm Phil. Today is finally the day that I'm doing the tutorial on my quick everyday makeup routine for work. Influencers are professional content creators who make a living cranking out short and long-form video content on platforms like Instagram, YouTube, and TikTok. There's an influencer for every niche interest and every demographic. Some live stream video games. Others build platforms discussing politics, pop culture, and art. Let's focus on one of the most popular subsets in the world of content creation and my personal favorite, beauty and lifestyle influencer. Hey, Gucci. I got this adorable bag that I just think will be perfect for summer. Let's do an updated makeup video tutorial. Beauty and lifestyle influencing as we know it began on YouTube in the early aughts. The free platform allowed makeup artists and enthusiasts alike to upload video tutorials sharing their tips and tricks. Start off with a clean face. Using a base will help your makeup last longer and create smoother looking skin. Over the next decade, thousands of beauty and lifestyle influencers joined YouTube before branching out to other burgeoning social platforms. As the trust in influencers grew amongst consumers, brands began to partner with creators and what had started as a hobby for many turned into a lucrative full-time career. If you're a millennial like me, you may have seen the beauty and lifestyle influencers of the 2000s and 2010s. Back then, influencers were maximalists all competing to out-consume one another. My Hermes mini Kelly, this is your bag. Popular creators like Jackie Aina and Tati Westbrook posted tours of their custom walk-in closets filled to the brim with designer bags and shoes and showcased entire rooms dedicated to their expansive makeup collections. Excess was the expectation and the content was seen as aspirational by audiences that were coming of age. But in 2020, the economy began rapidly shifting in response to the COVID-19 pandemic and with it, so did the culture around influencers. According to recent polling from the Pew Research Center, only 24% of Americans rate the economy as excellent or good and 66% of Americans are worried about the price of food and consumer goods. As Americans' economic realities are changing and as everyday necessities are becoming harder for the average consumer to afford, audiences are moving away from content centered on over-consumption. Jaclyn Hill is one influencer who claims that her audience has abandoned her over the past few years. Hey guys! So today I'm going to be doing a makeup tutorial for Valentine's Day! Hey! Hill began posting beauty videos on YouTube 14 years ago. Since then, she has launched several viral collaborations Does anyone remember Becca's Champagne Pop? It's called Champagne Pop. Started a makeup line of her own and accrued over 14 million followers across YouTube, Instagram and TikTok. But after years of success, in December of last year, Hill revealed that she was struggling. Speaking candidly with her audience on TikTok, Hill admitted that she was losing views and engagement and no longer felt connected to her followers. I feel like I am trying to run through mud to connect with my followers at this point. In her video, Hill attributed new algorithms and bots for the change in her viewership. But her followers felt differently. She received over 11,000 comments, many of which called Hill out of touch. One comment with almost 80,000 likes says, We're tired of watching influencers rub their wealth in our faces. Another popular comment says, I'm sick of the buy, buy, buy mentality. Teach me something. Educate me. That is what I want. We reached out to Hill and her team for comment and they did not respond. A new generation of influencers is adapting to this downturn in economic conditions with a lot less cash to spare. One of these creators is trend analyst and fashion expert Mandy Lee. Introducing the top ten trends of summer based on searches, purchases, and social tags. Lee has amassed over 900,000 followers across Instagram and TikTok with content focused on trend predictions, runway reviews, There's only 31 looks but each and every one is so thoughtful. and her own funky, luxe style. In 2024, Lee designed the 75 Hard Style Challenge. If you want to glow up, save money, get more in touch with your personal style, I challenge you. Based on the popular diet and fitness program, Lee's 75 Hard Style challenges her audience to create 75 unique outfits over 75 days without purchasing anything new. I'm going to do the 75 Hard Style Challenge. It was started by my beautiful friend Mandy Lee which I'm very nervous to commit to because that is 75 days in a row of getting dressed. Per Lee's Instagram, over 50,000 people have participated in the style challenge since its launch. The challenge has inspired Lee and her followers to get creative with items they already own while making them more mindful shoppers going forward. Influencers in the beauty space are also helping their followers find ways to get glam on a budget. I'm not sure why you're still spending $70 on foundation, $25 on lip balm, $40 and $50 on blush and bronzer when there's perfectly good makeup I'm following this Shelby Ann's bridal makeup tutorial. Let's go! Atlanta-based Shelby Ann Bell, a wedding makeup artist, has grown her platform to over 2.5 million followers on TikTok by posting viral makeup routines using products available at the drugstore, Target, and Walmart. I really can resonate with the person who's sitting on the other side of the screen and feeling like times are tough and they just want to escape, feel confident, feel beautiful, and being able to do that at an affordable price point or on a budget is really important to me and I've been there. Bell's tutorials range from more natural everyday looks to full coverage glam for weddings and events. Bell says that her goal is to show her followers they don't need to hire a makeup artist or use expensive products to look red carpet ready. I would have to say Essence and Catrice Cosmetics. I love both of them so much, but something that is really important to me is they both pledged to not raise their prices in 2026. Their last Princess Mascara has been $4.99 for 15 years. Another popular creator encouraging her followers to save is Pooja Jain. This is coming from someone who works in drug formulations and spends 8 plus hours a day in a lab. Jain has a master's degree in biomedical and bioengineering and works in pharmaceutical sciences. Now, Jain is using her scientific background to help her followers on TikTok find beauty and skincare routines that work for their skin type on any budget. I just know that luxury brands hate to see me coming because I will never fall for the BS that we have better ingredients and so that's why we're priced at these ridiculously high prices. Jain's content is a mix of curated makeup recommendations for different skin types, debunking beauty myths, and most notably a series dedicated to finding affordable alternatives to luxury skincare and makeup. Jain finds affordable substitutes by studying ingredient lists in luxury and affordable beauty products, identifying products with similar key ingredients, and explaining in layman's terms what each ingredient does so her audience can understand too. Overconsumption is rampant so these are the things that no influencer could ever convince me to buy. Jain's audience has grown exponentially over the past year as skincare and makeup lovers seek ways to cut back unnecessary spending and replace high-end products with affordable alternatives. Hi, this is Ryan Valdez with Rock Rose Risk. Like many Californians, I've watched homeowners face rising insurance costs, policy cancellations, and growing uncertainty, especially in wildfire prone areas. That's why we created Rock Rose Risk. We work with homeowners, ranchers, farms, HOAs, multifamily, and businesses to better understand and reduce wildfire risk and help insurance companies recognize the mitigation work being done. The result? Many of our clients save an average of 21-35% on insurance premiums while making their properties safer and more resilient. We believe people who invest in protecting their property should have better options. If you're frustrated with wildfire insurance, let's have a conversation. Visit rockroserisk.com to learn more. That's rockroserisk.com. --- end of transcript ---