Good morning, HTM fam!

Today, we think you should treat yourself. Why? Well, it’s National Pastry Day! 🥐

Whether you typically go for a croissant or a danish, an eclair or a fruit tart, a cannoli or a donut… okay, okay, we’re losing the plot here. The point is, there are a TON of delicious pastries, and we think you should have one today. You know, to celebrate. 😉

ECONOMY

Is Half the Country Poor? 😣

It’s no secret that everything feels more expensive lately. From groceries to housing, it certainly feels like a lot of us are stretching our dollars more than ever before.

But feeling squeezed isn’t the same as being in poverty, so where’s the line? And how do we know when we’ve actually crossed it?

Market theoretician Mike Green took a stab at answering that question recently, claiming that a family of four needs to make over $140,000 to rise out of poverty. To put this in perspective, the traditionally accepted poverty line for a family of four sits at $32,150. That’s quite a gap!!

If this number sounds shocking to you, you’re not alone. It certainly did to us, and to Noah Smith, who debunked Green’s argument in his own Substack post.

Here’s the thing: if $140k were truly the threshold for basic survival, that would mean most American families are poor. And yet… most American families are, you know, doing life reasonably well. Not living in luxury, but certainly not lacking the essentials.

Noah Smith broke down the basic necessities with actual data:

• Food: Americans eat more calories than almost any country in the world (second only to Ireland!), and severe food insecurity is extremely low.

• Housing: Families today have more living space than past generations, and more than nearly any other country.

• Health insurance: Only 8% of Americans are uninsured, and just 5% of kids.

• Transportation: Over 80% of four-person households own two or more cars. Mobility? Check.

• Childcare: Yes, it’s pricey, but it’s also not something every family needs for basic survival. It’s a work-enablement expense, not a “you can’t function without it” expense.

Could some families be struggling with one or more of these categories? Absolutely. But the data shows there’s a lot of overlap; the same households tend to face multiple challenges.

When you account for that, the share of families missing a “basic necessity” is nowhere near 50%. It’s much closer to the 25% of households in relative poverty, not half the country. This is still higher than we’d like to see, but lower than this article says.

What’s the takeaway? Be careful who you listen to. Pessimism sells. But it’s not always accurate. There are real obstacles to wealth-building in 2025, but not as many as some might lead you to believe.

That’s why it’s important to stay on top of your budget and finances, especially during the holidays. Know where your money is going…and why. We want you to put as much distance between you and the poverty line (wherever that may be!) as possible.

LIFESTYLE

Gen Z Says: Cash Who? 💵

Gen Z is officially breaking up with cash (and it’s not even a soft launch)! Digital wallets are now the default for younger shoppers, with people under 24 making nearly half of purchases straight from their phone. For them, cash feels less like “real money” and more like a coupon you forgot you had: fun, but not something you budget around.

Why the shift?

• 📱 Phones do everything now: IDs, payments, boarding passes.

• 🔒 Digital wallets feel safer than carrying cash.

• 💳 Contactless became the norm after the pandemic.

• 👻 Cash feels… imaginary, or like it “doesn’t count” in a digital world.

Gen Z actually spends more mindlessly with cash than with cards, which is the complete opposite of how most millennials and older generations operate. CashApp found they’re more likely to blow cash on treats because it feels like “free money,” while cards and digital payments feel more trackable (and scarier when the statement hits).

Buy now, pay later is also a huge part of the story. Gen Z used these services more than credit cards last holiday season… because $20 a month feels easier than dropping $100 in one fell swoop. But those supposedly “easy” payments can stack up fast, turning impulse buys into long-term commitments.

Going fully cashless also has its downsides. Tech can, and does, fail. And when that happens, you may be stuck handwriting card details, or possibly just out of luck.

The main thing to remember is that no money is “free money,” and everything you spend should be accounted for in your budget. The easiest way to lose control of your spending is not knowing what you’re spending on.

If you buy a small treat with cash here and there, it’s not going to hurt your overall finances. But keeping an eye on those expenses ensures your spending stays smart and intentional. 💡

TOGETHER WITH BACKBONE*

Banking Local with Backbone 🏦

Credit unions might be the best-kept secret in personal finance. Here's why:

They're member-owned, not-for-profit cooperatives that reinvest in local communities instead of shareholders. That means you can align your money with your values and come out ahead financially without trade-offs.

Credit unions keep branches open in small towns, fund local businesses, help first-time homebuyers, and show up when times get tough. It’s the human side of finance: people-first, stress-free, and grounded in real support.

Choosing a credit union means your dollars support local families, not Wall Street. It's one of the simplest ways to spend responsibly while actually building wealth.

The Backbone Coalition connects credit unions nationwide to shine a light on how they’re fueling connection, growth, and stability in communities because it’s time this secret got out!

Ready to make your money matter? Learn more about credit unions at backbone.us

RETAIL

High-End, Low Spend 🛍️

Goodwill has had a bit of a glow-up recently, and it’s not just about nicer stores, but nicer donations. By opening in wealthier neighborhoods, Goodwill is seeing a rise in luxury items: Dior for $8, Tiffany jewelry sets, even Gucci and Chanel.

More people are donating high-quality items than ever before, and it’s changing what you can find on secondhand shelves. Think name-brand jackets, solid wood furniture, kitchen gear that still has years of life left, and home decor that looks straight off a Pinterest board. Thrift stores aren’t just a “budget option” anymore; they’ve become one of the easiest hacks for upgrading your life without overspending.

If you’re trying to make your dollars go further, don’t immediately rule out thrifting. Shopping secondhand lets you pick up quality pieces for a fraction of retail and stretch your money where it counts—allowing you more money for saving, paying down debt, or building an emergency fund.

And while you’re at it, consider going through old clothes or junk you have lying around and donating them while you’re there! Out with the old, in with the new. 😎 

MARKET TRENDS

The Crypto Rollercoaster 🎢

Crypto is having another rough moment, and honestly, that’s not unusual.

Bitcoin and other digital coins can swing wildly for reasons that often have nothing to do with you or your money goals. One week it’s soaring, the next it’s slipping dramatically, and most of the movement is driven by things that everyday investors can’t predict or control: shifting investor mood, big institutional players buying or selling, global economic ripples, and the fact that crypto markets can dry up fast when uncertainty hits.

That volatility is exactly why we recommend that crypto should be classified as your “fun investment” (which should top out at 5% of your overall investment portfolio).

The rest of your portfolio? That’s where the time-tested stuff belongs. Think broad, diversified investments like Total Stock Market or S&P 500 index funds. These are the kinds of investments that actually build wealth over time, not because they’re flashy, but because they’re reliable.

And while seeing Bitcoin and other tokens hit new highs as they did just two months ago can make you feel left behind, it’s important to remember that you’re taking on additional risk. Cryptocurrency, like stocks, will rise and fall. But they’ll swing in an even more pronounced way. If you want to dabble, keep it small, keep it fun, and keep your serious money in the things that have a proven track record over many decades. 📈

ICYMI

Your Weekly Update…

No More Pennies 💰
With pennies disappearing nationwide, cashiers are rounding totals, and shoppers are doing (or at least trying to do) math on the fly. If you like precision (and follow the golden rules of plastic), it may be best to stick to a credit card!

Our Chicken is Real! 🐓
Campbell’s fired an executive over offensive “poor people” remarks and false claims about their chicken. The company says the comments don’t reflect its values, and promises all soups remain high-quality and USDA-approved.

AI Drama 🤖 
When a CFO hinted that the government should cover billions in AI costs, the internet noticed. OpenAI was quick to correct course and clarify: no taxpayer handouts are expected.

We sincerely hope you all take advantage of National Pastry Day! Just remember to track that expense… even if it’s in cash. 😉