Welcome to NerdWallet's Smart Money podcast. I'm Sean Piles.

And I'm Anna Hielhowski.

This is our weekly Personal Finance News Roundup, where we take a look at recent developments in the world of money and then go in-depth on an issue that's important to your life and your bottom line.

Today, we're looking at minimum wage, what parts of the country it's highest and lowest, what this means to wages across the board, and how to manage your budget if minimum wage isn't doing it for you.

But first, a few money headlines from the last few days. Anna, it's been a pretty banner start to the year in the broader economy. Last week, we told folks about the bullish stock market and a spike in consumers feeling better about the economy. Last week, the Commerce Department reported that fourth quarter gross Domestic Product, GDP, grew at an annual rate of 3.3%..

It's quite an end to a year that started with a raft of predictions that we'd be in a recession by the end of 2023.

Yeah, what's that saying? The stock market has predicted nine of the five recessions. Well, from the fourth quarter of 2022 through the fourth quarter of 2023, inflation adjusted GDP grew at 3.1%..

And not only that, but for that same time period, disposable income rose 4.2%. What do all those percentages mean? Well, again, we are not in a recession. And thanks to a lot of spending on the part of us consumers, the economy is humming along.

As long as inflation stays in check.

Speaking of inflation.

I was speaking of inflation.

Well, we got the latest figures on that score last week, and prices, so-called core inflation, rose just 0.2% from November to December.

That's something the Federal Reserve's Open Market Committee will be taking a close look at when they meet this week to decide what to do with interest rates.

And finally, Sean, I hope you're ready because the taxman cometh.

I was hoping maybe they'd just skip taxes this year. I mean, it's a leap year, so it's special.

Not special. And this week marks the official serve tax season. The IRS started accepting returns on Monday. Did you send yours in already, Sean?

Oh, of course. No, that's not true. I know there are a lot of expectations on us nerds, but getting my taxes in before the IRS even starts accepting them isn't one of them.

Me either. I'll be working on them soon, though, as will the rest of our fellow Americans. One thing to know is that the IRS has endeavored to speed up both its customer service response times and the time it takes to get a refund back to you, all thanks to a budgetary infusion from the Inflation Reduction Act that was passed back in 2022.

Yeah, you can check the IRS Where's My Refund app to see when yours should arrive. The app itself is called IRS to go. That's the number two there. But if you type Where's My Refund into the App Store, it'll find it for you. The IRS says that most folks should get their refund within 21 days of filing.

And this year, the deadline is, as usual, April 15th to file your taxes. No weekend gimmies, so get crackin'.

That's what we saw and heard over the last week in Money News. Let us know what we missed and send us the headlines that you've seen and want to hear more about.

And now on to our in-depth look at minimum wages across the country.

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The federal minimum wage is $7 $0.25 an hour, and that amount hasn't budged since 2009. It's the longest stretch without a pay bump since 1938. And 20 states have their minimum wage set at that rate. But over the years, some states and cities have raised their minimum wages much higher. In fact, on January first, minimum wages were raised in 22 states and 38 cities and counties, and those wage increases are estimated to impact 9.9 million workers. Anna, you've been analyzing minimum wage data across across the country. What were some of the biggest bumps for this year?

Let's start with the state, Sean. The biggest increase as of January first was in Hawaii. Workers there saw a 28% bump or about $2 that brought the minimum level up to $14 an hour. Most of the state increases this year were due to inflation adjustments that went into effect for the new year. But the highest minimum wage among all states was actually set last July in Washington, DC. Workers there now earn $17 an hour.

That's right. And DC isn't the only coastal place that has a higher minimum wage. Washington State, where I live, isn't too far behind at $16.28. Connecticut, New Jersey, New York, Massachusetts, and Maryland are all in the $15 and up category.

But, Sean, the top wages are actually found in individual cities. Right now, 58 cities and counties across the US have set their base wages above their states. Guess which Coast is leading the pack, Sean?

I'm a little biased, but I'm going to go with the West Coast.

Ding, ding, ding. That's correct, Sean. The top three are all in Washington State, with Tukwila at the tippy top at $20.29. Seattle and SeaTack are both over $19 an hour. Among the other cities with the highest minimums. Five are in the Bay Area, and one is in Southern California, West Hollywood. The only other city in the top 10 that's not on the West Coast is number 8, Denver, at $18.29..

So, Anna, what about all the places that are stuck at the federal minimum wage. It doesn't look like that's going to grow anytime soon. Any congressional efforts to change the federal minimum wage have fallen flat.

That's right, Sean. But federal data shows that most hourly workers are earning more than that level. For example, in Louisiana and Mississippi, only 3% of hourly paid workers earn $7.25 per hour. Nationally, among all hourly workers, less than 0.2% get paid that rate, and those are usually tipped workers.

Still, the federal Minimum wage isn't enough to keep up with inflation. For hourly workers, that means your dollar doesn't go as far. Even cobbling together multiple part-time jobs or gigs on the side doesn't mean you're financially secure.

That's right, Sean. What are some things you can do if you're in a precarious money situation?

The important thing to note is that you don't have to navigate programs alone. Financial counselors, local and national organizations, and other nonprofits can help. For example, if you're in a financial crisis like a possible eviction or facing food insecurity, you can call 211 to reach a local expert to connect you with all kinds of resources, like assistance programs for food, housing, and utility costs, as well as medical bills.

I bet reaching an actual person to guide you through the red tape makes a big difference, compared with dealing with an automated phone system. I want to point out one thing, Sean, and that's sometimes people hesitate to get the help they need from assistance programs.

That's right. Making the decision to get that help can make all the difference. There's also no benefit to waiting them either because there can be lag time to get through applications for certain programs and have them approved. But things like Snap benefits, also referred to as food stamps, can kick in quickly seven days if you have no income.

What if you're not in a financial crisis per se But you're just generally having trouble making ends meet.

Well, that's where tried and true budgeting methods can come in handy. Start by writing down your entire income and how much you spend on bills and groceries. We usually advise the 50, 30, 20 rule. That's 50% of your income on needs, 30% on wants, and 20% towards savings and debt repayments. But those percentages might not work for your situation. You've got to prioritize needs and debt repayment first, then figure out possible extras, and eventually savings.

If you're not sure if you can pay your bills or you're juggling which ones to pay or not, contact your landlord, utility company, medical provider, credit card company, mortgage lender, basically whoever sends you a bill, and ask for payment plan options or any other assistance available.

Speaking of assistance, there are a few other organizations that I want to shout out that can help you navigate local, regional, and national programs. The Association for Financial Counseling and Planning Education, which can help you manage expenses and build a budget. The National Low Income Housing Coalition has a database of emergency rental assistance programs. Finally, the Legal Services Corporation, which can help you find legal aid organizations that provide free legal help if you're low income.

That's it for this week's Money News. We always welcome your money questions and comments. Turn to the nerds and call or text us your questions at 9017-730-6373. That's 9017-730-N-E-R-D. Or send us a voice memo at podcast@next. Com. Nerdwallet. Com. And remember to follow, rate, and review us wherever you're getting this podcast.

Today's episode was produced by Tess Miglen and edited by Rick Vandertknife. Sarah Brink mixed our audio.

And here's our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.

And with that said, until next time, turn to the nerds.