*

Americans spent $147 billion on pets in 2023, causing

financial

stress for 91% of pet owners

*

Trump proposes eliminating Social Security tax, a move

with

bipartisan support but funding challenges

*

Large tech companies invest heavily in AI, anticipating

transformative technology

By Lauren Young

Sept 13 -

This was originally published in the Reuters On the Money

newsletter, where I share U.S. personal finance tips and

insights every other week.

Sign up

here

to receive it for free.

I often say to anyone who will listen that I love my dog the

most. (Apologies, kids! Sorry, hubby!)

And I know plenty of people who feel the same way.

But, like children, pets are expensive. All told, Americans

spent $147 billion on their pets in 2023, according to the

"State of the Industry" report by the American Pet Products

Association.

Despite the cost, we will do anything for Fluffy and Fido. I

have friends shelling out tens of thousands on cancer treatments

for sick pets. Ditto for dental care or pricey surgeries.

Thanks to the surging cost of pet care, 91% of pet owners

report experiencing financial stress, according to a recent

survey of dog owners by USA Today.

Here are three ways to stay sane and keep your pet finances

healthy.

What is the most expensive healthcare decision you have made

for a pet? Let me know about the experience and how you handled

it financially!

Write to me at . Be sure to include your name and where you

live.

Should Social Security be taxed?

It is one of those unwelcome surprises that is almost

guaranteed to anger people when they retire: income from Social

Security benefits is subject to federal taxes - and in some

cases, to state taxes as well.

So it is not a shock to see U.S. Republican presidential

candidate Donald Trump dangling elimination of the tax as a

possible enticement to voters this summer.

Reducing or ending the tax on benefits enjoys bipartisan

support in Congress, and Democrats also have proposed variations

on the idea. But unlike Trump, they have proposed ways to pay

for the tax cuts, which would cost Social Security and Medicare

$1.5 trillion in revenue over the coming decade.

The bottom line: if we are going to cut taxes for

higher-income seniors, the change should be coupled with other

Social Security reforms that provide help across the board,

writes Mark Miller.

What do you think about taxing Social Security benefits?

Send me your thoughts at .

What I'm reading and watching

* As beer loses share to hard seltzer, US barley

farmers

scramble

* 'Nothing can prepare you for 9 months': Guests

reflect

on Royal Caribbean world cruise (USA Today)

* US equity funds draw large inflows on rate cut

bets,

easing growth concerns

* Caring for aging parents can strain everyone's

finances.

Plan now (Washington Post)

* Zara to offer its secondhand clothes service in US

by

October

* US household rent burden unchanged last year,

varied by

race

* How to handle the delay in the release of the

FAFSA

form (New York Times)

Video of the week

Is AI the must-have play? Large tech companies are investing

a trillion dollars in AI because they believe it will change the

world, even if the anticipated game-changing technology hasn't

emerged yet. Watch here.

Want to receive this as a newsletter? Sign up here.

Inflation on the brain

Yesterday I went to the grocery store, and the bill was $86

for organic milk, string cheese, dog bones, blueberries, yogurt

(four for $5 on sale!), an avocado, liquid dishwashing detergent

and a few other incidentals.

I literally looked at the cashier in disbelief.

Food. Gas. Travel. Housing. The inflation story is

complicated.

U.S. consumer prices rose slightly in August, although

underlying inflation showed some staying power amid higher costs

for housing and other services.

With this most recent data, all eyes are on the U.S. Federal

Reserve, which is expected to nudge interest rates lower next

week.

Food prices edged up 0.1% in August after climbing 0.2% in

each of the past two months. But overall grocery store food

prices were unchanged as increases in the costs of meat, fish,

eggs and dairy products were offset by decreases in the prices

of nonalcoholic beverages, fruits and vegetables.

Prices at the pump are falling, too. Gasoline prices fell 0.6%

last month (and are expected to drop below $3.) Electricity was

0.7% cheaper and natural gas cost 1.9% less in August. That's

good news as we head into the winter months when heating costs

eat up more of the monthly budget.

Where is inflation hitting you hardest right now? Let me know

where you are seeing the biggest price increases (and if you

have any tips to save money) at .

A$K Lauren

Do you need to take out a student loan? Are you planning

to retire in the next year? Send your money questions to , and

I'll tap my extensive source network and braintrust for expert

advice.

Don't forget to subscribe to this newsletter! Even better,

share it with a friend!