We hope you are off to a great start on your Thursday morning. Today’s reads include how the shutdown is affecting government contractors, news that the famous Jack Bogle has passed, and how parents talk to their children differently about money.
INVESTING & THE ECONOMY
To revive the economy and the market, the Fed in 2008 took the unprecedented step of gobbling up vast amounts of government bonds and mortgage securities. The program, known as quantitative easing, was aimed at lowering long-term borrowing costs. Foreign central banks joined in as well.
As the shutdown has dragged on to become the longest in American history, these contractors have found themselves in the same predicament as the roughly 800,000 federal employees who are not being paid — except the outcome may be worse. Many contract workers, unlike federal employees, do not expect to be reimbursed for unpaid wages once President Trump and Congress agree to reopen the government.
John C. Bogle, the father of the retail index fund and an outspoken champion for low-cost investing that won him heroic status among individual investors, died Wednesday. He was 89.
Over the course of our lives, there are many uncomfortable questions and conversations to be had. Those dealing with money are perhaps the most persistent and difficult.
Our parents are often our first teacher and most lasting example of how to manage money. A new study, however, suggests that parents are talking to boys and girls about personal finance in different ways, and it might be responsible for shaping habits and expectations that can last a lifetime.
After paying the medical costs for the delivery and outfitting a nursery, new parents might think the hefty bills would end. But depending on where you live, you could be spending almost 20 percent of your salary to cover childcare expenses.