Keeping it in the family

Summary

Marketplace Episode Summary: "Keeping it in the Family"

Release Date: December 13, 2024
Host: Kai Ryssdal

In this episode of "Marketplace," host Kai Ryssdal delves into a variety of pressing economic issues, ranging from inflation indicators and regulatory changes to shifts in American mobility and the anticipated great wealth transfer. The discussions provide listeners with a comprehensive understanding of the current economic landscape, enriched with expert insights and real-world implications.

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1. Producer Price Index (PPI) and Inflation Dynamics

Overview:
The episode begins with an exploration of the Producer Price Index (PPI) and its relationship to the more commonly discussed Consumer Price Index (CPI). While the CPI measures inflation from the consumer's perspective, the PPI provides insights into wholesale price changes that can eventually ripple down to consumers.

Key Points:

• PPI vs. CPI: The PPI reflects price changes at the wholesale level, including the cost of inputs like copper for manufacturing or labor costs in the service sector.
• Recent Data: The Bureau of Labor Statistics reported a 4.10% increase in the PPI for November on a month-over-month basis, surpassing year-on-year estimates and indicating persistent wholesale inflation.
• Economic Implications: Higher PPI suggests that businesses may pass increased costs onto consumers, potentially sustaining inflationary pressures.

Notable Quotes:

• Bob Murphy (Professor of Economics, Boston College):
  “The fact that inflation is slowing down in services is good news, but goods inflation picking up isn’t necessarily a cause for immediate concern.” [02:50]

• Kurt Rankin (Senior Economist, PNC Financial Services Group):
  “Producer-level price increases are like a ghost of Christmas yet to come; they signal future consumer price hikes.” [03:20]

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2. Consumer Financial Protection Bureau (CFPB) Caps on Overdraft Fees

Overview:
The CFPB has finalized a rule capping overdraft fees for banks and credit unions with assets exceeding $10 billion. This regulatory change aims to protect consumers from excessive fees, although its impact varies across financial institutions.

Key Points:

• Regulatory Shift: Banks with significant assets are now required to limit overdraft fees, potentially saving households billions annually.
• Industry Response: Larger banks like Bank of America and Capital One have already reduced or eliminated such fees, driven by both regulatory foresight and rising revenue from interest rates.
• Smaller Institutions: Community banks are adapting by imposing daily overdraft limits and waiving fees for minor overdrafts, though they express concerns about maintaining profitability.

Notable Quotes:

• Julie Hill (Dean, University of Wyoming College of Law):
  “Banks acted early on overdraft fees, anticipating CFPB scrutiny, and leveraged rising interest rates to offset reduced fee income.” [05:15]

• Robert James II (CEO, Carver Financial Corporation):
  “Providing overdraft services is a delicate balance between offering customer assistance and ensuring our banks remain profitable.” [06:45]

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3. Declining Geographic Mobility Among Americans

Overview:
The Census Bureau reports that 2023 marked the least mobile year since the mobility survey's inception in 1948, with fewer Americans relocating. This trend has significant implications for the housing market, labor flexibility, and economic resilience.

Key Points:

• Historical Context: In the 1950s and 60s, approximately 20% of Americans moved annually, a stark contrast to less than 10% today.
• Contributing Factors: Increased homeownership, dual-income households, the rise of remote work, and escalating housing costs have all contributed to reduced mobility.
• Economic Impact: Limited mobility may constrain labor market adjustments, particularly during economic downturns, and could exacerbate regional economic disparities.

Notable Quotes:

• William Fry (Demographer, Brookings Institution):
  “The decline in mobility is a result of multiple long-term trends, including higher homeownership rates and fewer renters who typically move more frequently.” [09:45]

• Jed Kolko (Economist):
  “Remote work has given many the flexibility to stay put, reducing the necessity to relocate for new job opportunities.” [10:30]

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4. Small Business Challenges: Turner Hat Company Case Study

Overview:
Eric Bauer, owner of Turner Hat Company, discusses the significant challenges small businesses face due to tariffs and supply chain disruptions. His experience highlights the broader impact of international trade policies on domestic enterprises.

Key Points:

• Tariffs Impact: Turner Hat Company faces tariffs of 25-30% on products sourced from China, and potential future tariffs on Mexican imports, which could double product costs.
• Supply Chain Adaptations: The company is actively seeking alternative suppliers in countries with lower or no tariffs to maintain profitability without passing excessive costs onto consumers.
• Consumer Implications: Increased costs may lead to higher retail prices, potentially reducing demand and affecting overall business sustainability.

Notable Quotes:

• Eric Bauer (Owner, Turner Hat Company):
  “With raw product costs potentially increasing by 25%, we are forced to either absorb those costs or pass them onto our customers, which directly impacts demand.” [14:20]

• Eric Bauer:
  “Our focus has shifted from growth to stabilizing our supply chain to ensure we remain profitable in the current economic climate.” [15:00]

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5. Rising Insurance Premiums Amidst Inflation and Climate Change

Overview:
Insurance premiums across various sectors are increasing due to rising repair costs, advanced vehicle technologies, and the growing impact of climate change on property risks.

Key Points:

• Automobile Insurance:
  • Increased cost of repairs due to more complex vehicle technologies.
  • Higher labor costs and longer repair times.
• Health Insurance:
  • Rising healthcare costs and prescription drug prices drive premiums higher.
  • Increased wages for healthcare providers add to insurance costs.
• Property Insurance:
  • Climate change exacerbates risks from severe weather events, leading to higher premiums.
  • Insurers must balance rising costs with regulatory pressures to justify rate increases.

Notable Quotes:

• Stephen Shore (Instructor, Georgia State University):
  “Even with stabilized general inflation, insurance companies are still raising rates to keep up with the rising costs of claims and regulatory requirements.” [19:00]

• Kimberly Lilly (Chair, California Legislative Action Committee's Insurance Task Force):
  “Climate change is a significant driver of increased insurance premiums, as the frequency and severity of natural disasters continue to rise.” [21:15]

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6. The Great Wealth Transfer: Implications for Future Generations

Overview:
Economists project a monumental transfer of wealth exceeding $100 trillion from baby boomers to younger generations over the next 25 years. This transfer raises questions about its distribution and potential impact on financial security for millennials and Gen Z.

Key Points:

• Scale of Transfer: Estimates suggest between $84 trillion to $124 trillion will move from older to younger generations, primarily through inheritance.
• Distribution Challenges: The majority of wealth is concentrated in the top 2% of households, meaning the benefits of the transfer may not be evenly distributed across society.
• Generational Impact: Gen X is set to receive the initial bulk of this transfer, with Millennials and Gen Z potentially waiting a decade or more for significant benefits.
• Financial Planning: Many younger individuals rely on the expectation of inheritances for financial security, although experts advise against depending solely on such transfers.

Notable Quotes:

• Gerard Bucello (Proposal Writer, Washington, D.C.):
  “While I’ve benefited from my parents’ financial planning, I don’t plan to rely on an inheritance to change my life significantly.” [23:00]

• Chase Horton (Analyst):
  “Half of the great wealth transfer will come from just the top 2% of households, which means the distribution will heavily favor the wealthiest heirs.” [24:30]

• Jessica Majeski (Advisor, Northwestern Mutual):
  “Relying on an inheritance is poor financial planning, as it’s uncertain and should be considered a bonus rather than a foundation for financial security.” [26:10]

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Conclusion

In "Keeping it in the Family," "Marketplace" offers a deep dive into the multifaceted aspects of the current economic climate. From understanding the nuances of inflation indicators and navigating regulatory changes to anticipating the socio-economic shifts brought about by reduced mobility and impending wealth transfers, the episode equips listeners with the knowledge to comprehend and adapt to these evolving economic dynamics. Through expert interviews and real-world examples, the discussion underscores the interconnectedness of economic policies, consumer behavior, and generational wealth, painting a comprehensive picture of the challenges and opportunities that lie ahead.

Transcript

[Justin Vineyards and Winery]

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[Kyle Rysdal]

Not all economic indicators are created equal that we know, but they all do tell us something From American Public Media, this is Marketplace in Los Angeles. I'm Kyle Rysdal. It is Thursday today. This one is the 12th 12th of December. Good as always to have you along everybody. As surely as day follows night with the Consumer Price Index comes in close proximity the Producer Price Index CPI yesterday PPI today the first prices at the retail level, the latter prices at wholesale. The Bureau of Labor Statistics told us this morning that the PPI was up 4, 10% in November from a month earlier. That is more than people had been guessing year on year. Wholesale inflation is at 3%. Without casting too many aspersions here, it is fair to say that PPI is the less popular sibling of the cpi. But as Marketplace's Sabri Benishore reports, that does not mean it's not important.

[Justin Vineyards and Winery]

You go to the grocery store, you pick up the eggs, you see the price of the eggs up almost 40% year over year. Okay, and you put the eggs right back down. Not today, Satan. Not today. That is how we see inflation and that is what the Consumer Price Index measures. But what we see is not the whole picture. Businesses see a whole other world of inflation. They see prices, we don't. If we think about manufacturing, it could be things like inputs like copper or the chips that go into the computers. Scott Helfstein is head of Investment strategy for global X ETFs. If we think about restaurants, that could be something like the staff and their employment costs. Now why might we care about a price that we can't see? Because it rolls downhill. Well, with price increases for producers, they're going to pass them on to consumers in the months to come. Kurt Rankin is a senior economist with PNC Financial Services Group. Think of oil prices. When oil prices rise, we see that immediately at the gas pump, but we might not see that immediately for plastics that might be manufactured from that oil and then eventually the retailers to have to pay more to stock those items past those price increases then onto people buying them. So the producer Price Index captures all of this and that is why we care. It's kind of like a ghost of Christmas yet to come situation. Today's PPI number was complicated. Overall prices from a business perspective were up 4.10of a percent in November. Bob Murphy is a professor of economics at Boston College. The services component actually dropped slightly, but the goods component moved up. Services, barbershops, healthcare, restaurants. Prices in that world have been the hardest to control. So the fact that inflation is slowing down there is good news. The fact that goods inflation perked up isn't necessarily something to worry about yet, mostly because goods inflation has been low to non existent for the past year. So what does all of this mean? This provides a little more legs to inflation for a month or two or three, but is not something that's going to be sustained. So he says inflation probably will fall further, but it might take a while. In New York, I'm Sabri Benishore for Marketplace.

[Kyle Rysdal]

On the topic of inflation and by extension interest rates, this item, the European Central bank cut its benchmark interest rate today. Inflation is down quite a bit over there, 2.3% there, 2.7% here. Our economy, though, is still way stronger also. And for your calendar, the Fed meets next Tuesday, Wednesday. The phrase I want you to keep in mind here is hawkish cut. We will explain in the weekly wrap tomorrow. Wall street today, not a winner. Details, numbers. Y'all know the drill. Here's another installment of our semi regular series. You can't fight market forces. The Consumer Financial Protection Bureau finalized a rule today that will require banks and credit unions with more than $10 billion in assets to cap their overdraft fees to with some except five bucks. The CFPB says that'll save households billions of dollars a year. Thing is, the banking sector has been moving away from charging those fees for a good couple of years now. Bank of America trimmed its fee back in 2022. Capital One and Citibank have eliminated them entirely. Why? Here's Marketplace's Justin Ho.

[Justin Vineyards and Winery]

Even though we've seen a wave of big banks voluntarily ratchet back their overdraft fees it was not entirely driven out of altruism. Julie Hill is dean at the University of Wyoming College of Law. She says the CFPB has made it clear for years that it would be scrutinizing over draft fees, so banks decided to just bite the bullet and act early. Hill says it also helped that interest rates had been rising so banks loans were pulling in more revenue. In situations like that, banks don't really care that much whether they get income from fees or income from interest. Meanwhile, many people have been sitting on extra cash ever since the pandemic, says Chris Duncan, chief lending officer at La Salle State bank in Illinois. We really saw coming out of COVID a pretty significant decline in the overdraft activity in some of our customers. Duncan's bank is too small to be covered by the new overdraft rule, but it recently put a daily limit on overdraft fees, and it won't charge any fee if a customer overdraws less than $10. We kind of always look at the regulations that are passed and kind of assume that eventually those regulations will trickle down to banks our size. That said, banks don't want to do away with overdraft fees either. Robert James ii, the CEO of Carver Financial Corporation, a company with two community banks in Georgia and Alabama, he says when a customer overdraws their account, the bank is essentially lending them money to cover, say, an electric bill. That's a service to you, that's a service to the electric company. And ultimately we've got to be able to earn something for being able to provide that service. James says at his banks, customers have to opt into overdraft services, and many do in order to make sure that they can essentially pay a certain bill or meet an obligation before they have access to their regular income. And since many of his customers operate on limited incomes, James says he's hoping to provide overdraft services for as long as he can. Hi, I'm Justin Ho for Marketplace.

[Kyle Rysdal]

As I believe I've said a time or two on this program, the Census Bureau is an underappreciated source of really insightful data about this economy. Durable goods orders, housing starts and sales. The trade gap also, and perhaps even less appreciated, what the bureau calls geographic mobility and migration. They've been keeping track of where Americans are moving since 1948, and last year, it turns out, was the least mobile year we've had since that first survey. Almost 80 years ago, less than 10% of people in this economy moved in 2023. Marketplace's Samantha Fields has more on that.

[Justin Vineyards and Winery]

It used to be much more common for people to move than it is today. In the 1950s and 60s, about 20% of Americans moved in a given year.

[Kyle Rysdal]

But now we are pretty much a non mobile society.

[Justin Vineyards and Winery]

William Fry, a demographer at the Brookings Institution, says there are some big trends that have contributed to this long, slow decline in mobility since the 50s and 60s.

[Kyle Rysdal]

Back then there were many more renters, and renters tend to move more than owners do. And it was a younger population.

[Justin Vineyards and Winery]

And younger people tend to move more than older people do. So today, fewer young people, fewer people moving. Charlie Dougherty, senior economist at Wells Fargo, says there's also been a steady increase in the number of households where both partners work. You know, finding two new jobs is a whole lot more challenging than just finding one. So that's another big factor, I think.

[Kyle Rysdal]

That'S holding down the move rate.

[Justin Vineyards and Winery]

More recently, economist Jed Kolko says the pandemic has also played a role. The increase in remote work makes it easier for some people to stay put while finding a new job. And then there's the housing market of the last few years. Housing prices have skyrocketed, interest rates have jumped, and both inventory and affordability are near all time lows. That's for renters, too. Koko says it can be hard to find a place to move even if you want to. And the big decline in mobility that we've seen just in the most recent years is a decline in shorter distance moves, moves maybe just across town. And those are moves that tend to be more about housing than about new job opportunities so far. Logan Motashami, lead analyst at HousingWire, says this lack of mobility doesn't seem to have been much of an issue for the economy. This will become a problem for our economy when the labor market gets softer and people start losing their jobs and they can't find anything local, especially if it's still so expensive and challenging to move. I'm Samantha Fields for marketplace.

[Kyle Rysdal]

You wake up, get a cup of coffee or tea or whatever your choice is. You want to know what's going on in business, in the economy, first thing in the morning. Have I got a deal for you. David Brancaccio and the gang on the Marketplace morning report get out of bed real early every day to let you know what's going on. We heard from Sabria at the top of program about the producer price index and how manufacturers are struggling to keep their costs low and what all that has to do with what consumers are paying. But even though inflation is off its peak Price levels, as economists like to say, are still elevated and tariffs loom come the change in administration. So retailers are kind of betwixt in between, as you'll hear in today's installment of our series, My Economy.

[Justin Vineyards and Winery]

My name is Eric Bauer and I am the owner of Turner Hat Company, which I purchased this year in March. We have four main styles. We have western straws, so traditional kind of white cowboy hats. We do Western felts, so kind of the same idea, but in felt. And then the other two segments that are big for us are, I call them like leisure and outdoor hats, but those are things like lower priced straws and palms that you'd use to cut your grass or go outside and play some golf. And then we also do a line of sporting hats for things like hunting and fishing that are more focused on just keeping the sun off your neck or keeping you a little bit warmer when you're out, like on early morning. 50% of our cost is just getting the product to us. The other big line items for us are people and then transportation. So we source our products from China and Mexico. So with ocean freight from China, we also pay about 25 to 30% tariffs on products coming from China. And that all adds to the product cost. And then the, on the other end of the equation, hats are fairly low value and fairly large. And so shipping them out to our individual customers takes up another big chunk of our operating costs. We had gone into, or we were going into 2025 thinking about the customer relationship. And that is now kind of a number 1B priority to the number 1A priority which is stabilizing our supply chain and making sure that we're still profitable in the products that we carry. And so the big thing that we're worried about are large tariffs on products from Mexico that currently have, have no tariffs on them, and then increased tariffs on products from China that have, like I said, 25 to 30% tariff on them right now. So we are literally day and night seeking other suppliers across the world. So we're looking places like Sri Lanka, Bangladesh, Pakistan, Vietnam, Colombia, basically anywhere that's manufacturing hats just on the, on the chance that these tariffs kind of come to play. Because if they do, we would have no choice but to pass those, those costs on to customers if we can't negotiate lower costs from the suppliers or find another supplier in a country without the tariffs on them. So if we're getting 25% increase on our raw product cost, then the end consumer is going to see a 25% increase in their product and so any increase in that price that the customer pays has a really big impact on our demand. That's why we sprung into action to try to find suppliers where we wouldn't be affected and keep our costs as low as possible because it's really important to our customers.

[Kyle Rysdal]

Tell you what, it takes guts to be a small business person, huh? Eric Bauer, Newish, proprietor of the Turner Hat Co. Whether headwear is your thing or not, we want to know what your economy is like. So tell us, won't you? Marketplace.org My economy coming up.

[Justin Vineyards and Winery]

So it's not Legolife boats coming anytime soon.

[Kyle Rysdal]

Ooh, that's not good. First though, let's do the numbers. Dow industrials off 234 today, about a half percent 43,914 the Nasdaq down 132 7/10% 19,902s and P 500 off 32 points about a half percent 6015 Costco is due to report earnings today after the close. So let's do some big box here, shall we? Costco during the session off 6 10%. Walmart, owner of the competing Sam's Club as well, subtracted 9. 10%. BJ's Wholesale Clubs, which were started by discount department store chain Zayer back in the 1980s, in case you didn't know, slumped 1.2% today. Heard earlier from Justin about banks and overdraft fees. So let's check in with some financial institutions, shall we? Bank of America out of Charlotte, North Carolina flat. Wells Fargo slid 1 and a 10% JP Morgan Chase, which has a head office in New York City but is incorporated in where, where, where? Delaware declined 8 10%. I was not planning on that rhyme actually. You're listening to Marketplace.

[Justin Vineyards and Winery]

There are over 1.5 million nonprofit organizations in the US and millions more around the world. How do you know which ones can make the biggest impact with your donation? GiveWell was founded to help donors with that exact question. They pour over independent studies and charity data to help donors direct their funds to evidence backed organizations that are saving and improving lives. GiveWell wants as many donors as possible to make informed decisions about high impact giving. You can find all their research and recommendations on their site for free. You can make tax deductible donations to their recommended funds and charities. And GiveWell doesn't take a cut. If you've never used GiveWell to donate, you can have your donation match up to $100 before the end of the year or as long as matching funds last. To claim your match, go to givewell.org and pick podcast and enter Marketplace at the checkout. Make sure they know that you heard about GiveWell from Marketplace to get your donation matched. Again. That's givewell.org to donate or find out more. To realize the future America needs. We understand what's needed from us to face each threat head on. We've earned our place in the fight for our nation's future. We are Marines. We were made for this. Hey, this is Kimberly Adams, co host of Make Me Smart. Listen up because for this week only, we are offering all Marketplace merchandise at a discount so you can snag our popular Marketplace sweatshirt for just $8 a month. Or maybe you and the investor in your life could use some matching glass mugs. That's only $5 a month. We're even offering our brand new merino wool socks featuring Kai, David and yours truly for a one time gift of $15. These deals won't last long. It's our way of thanking you for getting your year in donation in a little bit early. This offer expires at midnight on Friday, so don't wait. Get yours [e-mail] donate.

[Kyle Rysdal]

This is Marketplace. I'm Kai Rysdal. Let's just stipulate here that nobody likes paying their insurance premiums. If everything works out all right, you don't crash your car, you don't have big medical expenses, and your house doesn't have any problems. Sometimes, though, life has other plans and those checks from the claims you make come in really handy. But when your premiums go up and up, as they have been, car coverage rates are up almost 13% from a year ago. Overall inflation, as I mentioned a couple of minutes ago, 2.7% here. Well, when premiums go up like that, one might fairly ask what the heck marketplaces Kelly Wells did.

[Justin Vineyards and Winery]

Inflation is hitting just about every type of insurance because the stuff and people we're insuring cost more to fix. Parts and labor for car repairs are more expensive. Construction materials and labor for home repairs are more expensive along with most other goods and services in the economy. Stephen Shore, who teaches insurance and risk management at Georgia State University, says some may be surprised that insurance rates are still going up now that inflation is stabilizing. That's because insurers are playing catch up, and insurers have to show state regulators their costs have gone up before they're allowed to raise prices. One big area where prices have increased noticeably is health insurance. Here's David Marlette, who teaches insurance at Appalachian State University. As healthcare costs go up to see.

[Kyle Rysdal]

A doctor to get prescription drugs. That drives the health insurance premiums, as.

[Justin Vineyards and Winery]

Do the rising wages of health care providers. Another sector feeling the pinch of inflation is car insurance, says Rob Hoyt, who teaches risk management and insurance at the University of Georgia. Part of the problem is some of the minor accidents end up escalating in cost pretty significantly. Cars are more complex nowadays. A little fender bender isn't just a dented bumper and some scratched paint, but also a broken rear facing camera or motion sensor. And then there's a whole lot of work that has to go on by.

[Kyle Rysdal]

The technicians to reset a lot of.

[Justin Vineyards and Winery]

That technology after it's been repaired, which means longer repair and car rental times. Oh, and more labor costs. Drivers are familiar with paying for liability insurance, but that's not restricted to cars. Say someone falls and breaks their arm on your slippery stairs. Kimberly Lilly, chair of the California Legislative Action Committee's insurance Task Force, says in our more litigious culture, they may be less likely just to say forget about it and more likely to say, I saw someone else make $200,000 off this kind of accident. I'm going to sue you and try and get that money, too. And as residents of California and Florida already know, home insurance costs are surging. Lily says that's because of climate change. The result of the planet warming up is that we have more severe hurricanes, we have more fires, and we're having a much larger loss than we ever used to have. And while a slowdown in general inflation might help the insurance industry to some extent, climate change, shifting social attitudes, and fancier cars will keep pushing up premiums. Lilly says they're going to have to continue to charge more. That number is just going to be bigger. So plan for it, because unless insurance companies can raise their rates and stay profitable, they'll stop insuring altogether, a challenge that residents in fire and flood prone states have already begun to face. I'm Kaylee Wells for Marketplace.

[Kyle Rysdal]

There are, says the aforementioned Census Bureau of these United States of America, a hair more than 76 million baby boomers living in this country right now. That is data from the 2020 census. They will, those boomers, eventually, as will we all pass. And when they do, economists and financial planners expect that in the aggregate, the economic power they are going to leave behind will be what has come to be called the great wealth transfer. By one estimate, more than $100 trillion in assets will flow from older generation Americans to their heirs and favored charities over the next 25 years, mostly through inheritance, but also through gifts made before. Well, you know Gen X is going to be the first in line, as it were then their children, Millennials and Gen Z. What's going to be interesting to see is what kind of difference that money might make. Here's Marketplace's Mitchell Hartman.

[Justin Vineyards and Winery]

Gerard Bucello works as a proposal writer in the Washington, D.C. area. He's 29, so a young millennial demographically, and a pretty fortunate one at that. I have benefited from the financial planning my parents put into my higher education, as well as help they provided in down payment assistance for the purchase of a new home. Most of his friends are renters and saddled with student loans. Busello's parents are professionals, in their 60s and pretty well off, but they've told him they'll be spending to live well in retirement rather than trying to hold onto their wealth to leave an inheritance when they die. But my expectation is not actually to receive anything that is not something I can or should plan around. A massive wave of inheritance is something wealth managers are planning around, though, says Andy Smith at Edelman Financial Engines. This is a huge part of my client meetings now. The largest transfer of wealth in history, and it's poised to make many new millionaires. In a report published back in 2021, Ceruli Associates calculated that over the next 25 years, $84 trillion would be passed from older to younger generations. Analyst Chase Horton just crunched the numbers again. We find that has increased to 124 trillion. There are a few reasons. Inflation, soaring stock and home prices, plus increasing wealth concentration among the richest and oldest Americans, Horton says. Half of the great wealth transfer will come from just the top 2% of households, those with 10 million or more in net worth. And the majority of the wealth they're transferring is going to be left to the top 2% of heirs, which is obviously not a widespread equitable distribution. Generationally, the sharp rise in family gifting and inheritance will mostly benefit Gen X. Early on, millennials and Gen Z will have to wait a decade or more to really start increasing their share. So it's not like a lifeboat coming anytime soon. For some, it's probably not coming at all. Financial services firm Northwestern Mutual regularly asks Americans about their inheritance plans and expectations, and advisor Jessica Majeski says they don't add up. More people are expecting to receive an.

[Kyle Rysdal]

Inheritance than planning to leave an inheritance.

[Justin Vineyards and Winery]

22% of Boomer and Gen X households plan to leave money. But yet there's 32% of millennials and 38% of Gen Zers who hope or expect to receive an inheritance. And a majority of them consider that money critical to their financial security and retirement. Majeski isn't exactly surprised. All the stories they hear about Social Security potentially not being there for them, I think it creates some angst and expectation that they'll need an inheritance. But she says relying on one is bad financial planning. It's going to be like gravy on top, right? Like we're not going to build that into the plan because anything can happen. The parent that you thought was going to leave you an inheritance could live well into their 90s in his planning practice. Andy Smith at Edelman Financial Engines says most younger clients have pretty prosaic ideas of how to use money from a family gift or inheritance. When I asked, how do you think you're going to spend $100,000 windfall, maybe 40%? You know it's going to go to housing, paying bills, payments on debts or loans. Gerard Bucello doesn't think getting a one time windfall from his parents would be licensed to change his entire life. Would I quit my job? Absolutely not. Move to a bigger house? Almost certainly not. He says he might use some of it to help a friend or relative in need or take a really long vacation. I'm Mitchell Hartman for Marketplace.

[Kyle Rysdal]

This final note on the way out today. Did you ever watch that show Hot Ones where various celebrities attempt to hold a normal conversation with the host while eating progressively hotter and hotter chicken wings? It is entertaining in a peculiar kind of way. Anyway, did you ever wonder how much this show that started as a random YouTube series and its production company might be worth? If Your answer was 82 and a half million dollars go to the head of the class. Buzzfeed, which through a long, complicated series of events owns it, announced the sale today to a consortium of investors. John Buckley, John Gordon, Noya Kar, Diantha Parker, Amanda Peacher and Stephanie Sieg are the Market Place editing staff. In Mirabawe is the managing editor and I'm Kai Rysdal. We will see you tomorrow. Everybody. This is 8pm the wrongs we must.

[Justin Vineyards and Winery]

Write, the fights we must win, the future we must secure together for our nation. This is what's in front of us. This determines what's next for all of us.

[Kyle Rysdal]

We are Marines. We were made for this.