August’s money vibe: Backpacks out, jobs down

+ hiring slows, school costs climb, new 529 and student loan rules take effect.

Author

Doing Well
August 07, 2025 • Estimated Reading Time: 6 minutes

The job market just hit a wall, parents are stretching every dollar on back-to-school shopping, and student loan borrowers are scrambling as the SAVE plan winds down. Even Gen Z is flipping the script on education savings, using 529s for trade skills and career pivots instead of just four-year degrees.

This week, we’re talking about what these shifts mean for your wallet, and what to do about them.

Here’s what’s inside:

P.S. If you want to talk through your own finances, you can book a free 1-hour coaching call here ☎️

Job growth hits a wall

July’s jobs report marked a turning point: after months of warnings, the labor market has officially cooled.

Job growth has slowed to a crawl, previous gains were revised away, and momentum has shifted from “resilient” to “stagnant.”

This isn’t a collapse (layoffs are still near historically low), but it does mean fewer openings, less wage growth, and a tougher climb for anyone looking to switch roles or reenter the workforce.

What you need to know:

💼 Job growth has stalled
July’s 73,000 jobs added is far below the 80k–100k needed to match population growth, signaling contraction.

💼 Past data was too optimistic
Revisions wiped out 258,000 jobs from prior months, shifting the narrative from “resilient” to “softening fast.”

💼 Tariffs and policy changes weigh heavy
New tariffs, tighter immigration rules, and higher interest rates are discouraging hiring and slowing business investment.

💼 Stagnant but stable
Unemployment ticked up to 4.2%, job-hopping is down, long-term joblessness is rising, but layoffs remain near historic lows. If you’re looking for work, focus on upskilling and industries that are still hiring, like healthcare and social assistance.

Parents are still spending big on back-to-school, but they’re getting choosier. Deloitte’s 2025 survey shows families averaging $570 per child, flat from last year and down from 2021 highs. Clothes and accessories are getting more of the budget, while electronics and traditional school supplies take a backseat.

Lower-income families are actually spending 10% more to keep up, while many middle- and higher-income households are trimming their lists. And deal-hunting is huge, as Gen Z and millennial parents are leaning on social media, cash-back sites, and even AI tools to stretch their dollars.

Back‑to‑school financial planning tips:

📝 Set a clear budget per child
Start with the essentials (uniforms, school supplies, lunch gear), then layer in clothing and extras if the budget allows.

📝 Shop in stages
Tackle big-ticket or promotional events early, but wait for clearance or end-of-season deals on tech and apparel.

📝 Compare brands and retailers
Don’t be loyal; price-check across mass “value” stores, cashier apps, and private-label lines to find the best cost per item.

📝 Use tools to save
Cashback portals, standard shipping, and bulk purchases all add up in savings.

📝 Involve kids in the budget game
Making them part of choices (like thrift or paired-back outfits) turns planning into a teachable moment.

📝 Keep track of hidden costs
Extracurriculars, lunch prep, and supplies can quickly add $500+ per child; factor them into your overall back-to-school budget.

6 smarter moves than blasting job boards

Hitting ‘apply’ on every job board isn't enough anymore. In today's competitive market, you need proactive strategies that give you a real edge.

Your job-search checklist:
👩‍💻 Be in the rooms your industry gathers
👩‍💻 Put your work out there
👩‍💻 Send thoughtful DMs
👩‍💻 Learn (and show it off)
👩‍💻 Jump in on someone else’s project
👩‍💻 Ask for feedback

 Worth the Click This Week

💼 Stop your 401(k) from leaking money: Vanguard shares how pairing emergency savings with retirement accounts can keep your long-term investments intact when unexpected expenses hit. Check how much savings you need »

🏠 Boomerang kids and your budget: Adult children moving back home are changing how parents plan for retirement, savings, and everyday expenses. Here’s what families are doing to adapt. See the impact »

🎓 What to do if the SAVE plan is ending: Interest on SAVE plan loans has resumed and the program will fully sunset in 2028. Here are three alternatives to consider to keep your monthly bill manageable. Explore your options »

💡 Gen Z can use 529s for careers, not just degrees: Recent rule changes let families use 529 funds for trade schools, professional certificates, K–12 tutoring, and even roll up to $35,000 into a Roth IRA if unused. It’s no longer just for four-year colleges. See what’s new »