Current Events in April 2024

A new study says that when it comes to things like end-of-life trusts and financial plans, most millennials aren’t as concerned as maybe they should be.

In spite of the possibility that nearly half are in line as part of the “Great Wealth Transfer,” many are more concerned about how to balance caring for both children on one side and their aging parents on the other, not to mention a ragged housing market. All of that leads to one thing: building their wealth for future generations is a challenge.

The study from Trust & Will, a digital estate planning and settlement platform, asked 15,000 millennials about their end-of-life and estate planning preferences. An unexpectedly high number of millennials – 62% – don’t have a will or trust; and more than half – 56% – couldn’t answer the question of what would happen to their assets if they died without an estate plan.

The darn-if-you-do, darn-if-you-don’t position is unfortunate because millennials want to pass on their wealth. Out of the overwhelming number of Trust & Will’s millennial members who had children (73%), 74% say it is important to them to leave their children some sort of financial cushion.

What is it that millennials need help with? Communication!

Despite these pressures, millennials are their own generation and, as such, prioritize things differently than their baby boomer parents. For one thing, they put estate planning over everything else – protect their assets, provide for loved ones (including pets), and express their own wishes for end-of-life arrangements. Millennials are also leaving a mark through charitable contributions, with many including donations in both their budgets and estate plans. 

What millennials need to do, though, is get out of their way about not wanting to communicate their end-of-life plans with their families or parents, suggests Mitch Mitchell, associate counsel at Trust & Will. “Millennials still need to learn what their parents' estate plans are and if they even exist,” he told ConsumerAffairs.

Mitchell contends that being part of the “Sandwich Generation” – the phase of life where they’re taking care of both growing children and aging parents – is more than your typical millennial bargained for. Their “double duty” in taking care of their own expenses and duties as well as making sure their parents are in good shape, is a lot.

“Most importantly, have a conversation with your family about what your plans are. Be honest and set realistic expectations with your family. You might not have a lot, or anything to pass along - just be sure that you're communicating that effectively,” Mitchell said, speaking to millennials.

“Set aside funds for your own health and end-of-life needs, if you can. This will greatly reduce the burden on your remaining family members after your passing. The average funeral costs $8,300 in the U.S., so you might also consider more affordable and eco-friendly green burials or cremation as alternative options.”

Where should millennials start?

While this sandwich generation might not be what most millennials bargained for, both sides of the coin need to be addressed. Ashley Eneriz, finance editor at ConsumerAffairs said that the first step is to start with your parents. 

“You need to know both what you will be inheriting as well as what long-term care plans are for aging parents. If parents do not have their estate planned out in a way that covers exaggerated and expensive health conditions, it will eat away at the inheritance and add more financial strain on millennials,” Eneriz advises. “Additionally, millennials need to be aware of any tax bills or surprise bills they will inherit – i.e. if your parents have a reverse mortgage, that balloon payment will be due upon their death.”

On the other side of the coin, Eneriz thinks millennials need to ensure that they are leaving financial protection behind for their children, even if they feel like they don’t have anything to pass down. 

The easiest place to start could be a term life insurance policy, simply because applying for a 15- or 30-year term insurance plan is going to be more affordable for someone in their late 30s than waiting until their late 40s to apply. 

“In the event of your death, you want there to be enough funds to cover your spouse and children financially. This means that your insurance payout should be able to cover funeral costs, several years of mortgage or rent payments, debt repayment and even future expenses like your child’s college fees,” Eneriz said.

Estate planning is not as hard or expensive as it sounds 

Once you have the first two steps handled, it is time to sit down with an estate planner or trust attorney. Whether it’s Trust&Will or another online estate planning service, what seems like a daunting task can fit into your otherwise busy life these days.

“Additionally, check with your employer’s benefits to see if you can opt for legal coverage, which will also cover the costs associated with using a trust attorney,” Eneriz commented. “Estate planning is essential even if you don’t have a mansion to pass down. You will need to name guardians for your children and any other individuals you will need to care for full-time, as well as direct how certain funds, such as your life insurance policy or retirement funds can be used.”

Just how healthy are school lunches? An independent lab report says they would be a lot healthier if certain items – such as pre-packaged Lunchables – were removed from the menu.

Lunchables, produced by Kraft Heinz, contains crackers, cheese and meat slices. The lab also found lead that it said exceeded federal limits in food.

"The Lunchables and similar lunch kits we tested contain concerning levels of sodium and harmful chemicals that can lead to serious health problems over time," said Brian Ronholm, director of food policy at Consumer Reports, which conducted the study. "The USDA should remove Lunchables from the National School Lunch Program and ensure that kids in schools have healthier options."

Kraft Heinz took issue with the report, saying it stands behind its product. In a statement, a spokesperson for the company said all of its products meet strict safety standards. The spokesperson also said that lead and cadmium occur naturally in the environment and should not be of concern because they appear at low levels.

"We are proud of Lunchables and stand by the quality and integrity that goes into making them," the company said.

A nutritionist weighs in

Sarah Herrington, a nutritionist at Brio-Medical, an alternative cancer treatment center, says many food options offered at schools skirt nutrition recommendations.

“Lunchables for schools are allowed because technically they meet guidelines by providing the ‘equivalent’ of whole grains and a meat / meat alternative,” Herrington told ConsumerAffairs. “But these are still highly processed food items that we are giving to our children.”

Herrington says processed grains and meat alternatives are linked to poor health outcomes later in life, such as cancer and diabetes, and that doesn’t begin to address the potential severe health complications associated with heavy metal toxicities such as lead. 

“These health outcomes are even becoming more and more prevalent in younger individuals, largely due to diet and lifestyle,” she said. “Excess sodium, or salt, also increases the palatability of food items, so children may learn to prefer those items over whole, natural foods.”

The Environmental Protection Agency (EPA) has taken steps to protect consumers from exposure to per- and polyfluoroalkyl substances (PFAS), or forever chemicals, in drinking water. 

For the first time, the agency has a set of standards that will limit how much of the toxic chemicals are allowed in drinking water, which will ultimately benefit consumers across the country. The EPA is hopeful that these efforts will limit exposure to forever chemicals and reduce the risk of disease related to such exposures. 

“Drinking water contaminated with PFAS has plagued communities across the country for too long,” said Michael S. Regan, EPA administrator. “That is why President Biden has made tackling PFAS a top priority, investing historic resources to address these harmful chemicals and protect communities nationwide.” 

Keeping consumers safe and water clean

With this announcement, the EPA will require that PFAS levels in drinking water are kept to certain limits across the country. There are five primary types of PFAS that are part of the standard: PFOA, PFOS, PFNA, PFHxS, and HFPO-DA. 

To ensure that these standards are met, the EPA is making $1 billion in funding available to public water utility companies nationwide. The funds are part of the $9 billion made through the 2021 Bipartisan Infrastructure Law that was designed to help communities fight against PFAS exposure. 

According to the EPA’s estimations, as many as 10% of the 66,000 public water drinking systems will have to take action to comply with the new standards. The agency explained that the top three ways to reduce PFAS exposure in water are: ion exchange systems, granular activated carbon, and reverse osmosis.  

Over the next three years, these companies will have to report their PFAS levels to the EPA. If the levels are too high, they must move forward with one of the available options for lowering PFAS levels within five years. 

In making these changes across the country, the EPA estimates that 100 million people will no longer be exposed to PFAS in their water. This will ultimately prevent serious illnesses and deaths for thousands of consumers nationwide. 

If you drove a car and paid rent last month, you felt the worst effects of inflation. The Consumer Price Index rose 0.4% in March, the same as February. But rent and gasoline accounted for half of the increase.

 The energy index, which includes gasoline, rose 1.1% – a significant one-month move. The price of gas rose 1.7% and is up 1.3% over the last 12 months.

Gasoline prices are rising in concert with oil prices. According to AAA, the national average price of regular gas is $3.61 a gallon, seven cents higher over the last seven days and 22 cents higher than a month ago.

The cost of shelter has risen at least 0.4% per month since November and is 5.7% higher year-over-year. Most of that increase is the result of rising rent.

Some relief

Though it might not feel like it, there is some relief at the supermarket. The cost of groceries showed no increase for a second straight month in March and is up 1.2% over the last 12 months. But it all depends on what you buy.

The cost of fruits and vegetables fell 0.3%, the price of dairy and related products declined by 0.4% and cereal and grain prices fell by 0.6%. But meat, poultry, fish and egg prices jumped by 0.8%.

The cost of food consumed away from home, the government’s category for restaurant meals, continued to be a pain point for diners. Those costs rose 0.3% from February to March and are up more than 4% over the last 12 months.

 The index for limited-service meals rose 0.3% while the index for full-service meals increased 0.2%, suggesting fast food menu prices are rising faster than full-service restaurants.