TIME Parenting

What Bill Gates’ Kids Do with their Allowance

How do you teach insanely wealthy kids how to manage money?

The rich are different from you and I, but they still want to give their kids an allowance. So what do the world’s richest man’s kids do with their money? Melinda Gates came to TIME’s offices to talk about her new focus on women and children and especially on contraceptives, but she spilled some secrets about how she tries to get her kids to be purposeful with their money.

First of all, she tries to be true to her values, to articulate them and live them out. Then, they do a lot of volunteering together, at “whatever tugs at their heartstrings” says Gates. And of course, they’ve traveled with her. “They have that connection I think to the developing world,” she says. “They see the difference a flock of chicks makes in a family’s life. It’s huge.”

Read the 10 Questions with Melinda Gates here

Gates has always made a point of getting into the streets and poorer neighborhoods when she travels for meetings and conferences. And sometimes she takes her kids. It’s there, she says, that she meets mothers who tell her that their biggest struggle is having so many children. Although Gates was raised Catholic, she is heading up an initiative to get family planning information, contraceptives and services to 120 million more women by the year 2020. That includes new technology, better delivery system and a lot of education, including for men.

She’s similarly rigorous about her home life. Her kids save a third of their allowance and designate a charity they’d like to give it to. (They can also list donations to charities on their Christmas wish list.) As further incentive, their parents double whatever money they’ve saved. Which means they may be the only children in the world to get a matching grant from the Gates Foundation.

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TIME Money

These Cities Have the Highest Rents in the Country

Liverpool FC Training At Fenway Park
General view of Fenway Park during a training session at Fenway Park on July 22, 2014 in Boston, Massachusetts. Andrew Powell—Liverpool FC via Getty Images

Rent in Boston is a real green monster

In addition to the price of a beer at Fenway Park, Bostonians—and esteemed guests of Fenway alike—now have something else to complain about: Boston has the highest rents in the country.

Here at FindTheBest, we’re on a mission to collect, structure, and connect the world’s data. Taking the most recent Five-Year American Community Survey (ACS) data released by the U.S. Census Bureau in late 2013, we set ourselves the task of determining which U.S. cities have the highest rents. Defining a high rent conservatively to be a contract rent (i.e., excluding utilities) of more than $1,500 per month, we identified where rents are more likely to take a big bite out of your paycheck.

These major U.S. cities—all with more than 500,000 residents—have the greatest proportions of high rents in the country. You can tap anywhere on the table to explore a given city in more detail.

The West Coast has been supplanted in at least one regard. Although four of the five richest cities in America—and six of the top ten here—are on the West Coast, Boston has the most expensive rents. Moreover, it’s also the only East Coast city in which more than 30 percent of rents are over $1,500 (48.8 percent).

A list of the top ten cities for highest rents reads like a rap sheet of the usual suspects, with perennially expensive West Coast metropolises San Francisco, San Diego and Seattle interspersed with East Coast behemoths like Washington D.C. and New York City.

In general, cities with greater population densities tend to have higher rents, as seen in the scatter plot below. The precise reality, however, is more complicated.

Among the ten cities where rents are highest (again defined as the percentage of contract rents over $1,500), New York is both the most densely populated city (27,308 people/sq. mi) and the one with the highest proportion of renter-occupied dwellings (68.3 percent). Yet it’s not even in the top five for greatest proportion of rents over $1,500. Boston, on the other hand, has a 66.8 percent rental rate—the second highest on the list—along with the third-highest figure for population density (13,007 people/sq. mile). So cities with higher densities and renter occupancies tend to have higher rents, but it’s not gospel truth.

While Boston may be the most expensive place to rent based on our working definition, there’s a fair bit of nuance to the list. Denver and Baltimore, for example, have a relatively low percentage of rents over $1,500 (8.1 and 6.3 percent, respectively). In the next tier down ($1,001-$1,500), however, these two cities have percentages high enough to launch them into the top ten within that next tier (19.6 and 19.5 percent, respectively).

In fact, by adding the two rental buckets together (“$1,001-$1,500 + “$1,500+”), San Jose has the highest percentage of rents over the $1,000 mark (80.7 percent compared with Boston’s 80.5 percent). And $1,000 or more per month is nothing to scoff at.

With a mean of 12.7 percent and a median of 5.3 percent (the middle point in the data set), the percentages of rents over $1,500 are skewed upward toward Boston, San Jose, and San Francisco (the top three in that category).

Using $1,500 as a proxy for cities with the most expensive rents allows uncapped extremes to factor into the comparison. While considering the next-highest tier of rents ($1,001-$1,500) changes the picture somewhat, one thing is for sure: Boston wins out when it comes to extreme rents. And in Beantown, neither the beer nor the price of admission at a Red Sox game is cheap enough to get over that.

This article was written for TIME by Ryan Chiles of FindTheBest.

More from FindTheBest:

10 Dangerous Cities Where Violent Crime Is Going Down

Here Are the Senate’s Biggest Winners and Losers

Best Cars on the Market for Under $20,000

TIME ebola

Cost of Ebola for West Africa Far Lower Than Once Feared

Financial toll for hardest-hit region could fall between $3 billion and $4 billion, or about one-tenth of what the World Bank initially forecast. In its latest report on the global Ebola epidemic, WHO counted 5,177 deaths out of 14,413 reported cases of the disease

An aggressive response to the Ebola epidemic in West Africa has reduced a massive $32.6 billion economic tab initially forecast by the World Bank, a top official at the organization said Wednesday.

Francisco Ferreira, the World Bank’s chief economist, said at a lecture in Johannesburg that the outbreak’s total financial toll in the region could fall between $3 billion and $4 billion, according to Reuters. Ferreira pointed to successful efforts to contain the disease in some West African countries as a sign that the World Bank’s worst-case scenario is unlikely. But, he also warned that Ebola could still spread if those efforts are not maintained.

“It has not gone to zero because a great level of preparedness and focus is still needed,” Ferreira said, according to Reuters.

In its latest report on the global Ebola epidemic, the World Health Organization counted 5,177 deaths out of 14,413 reported cases of the disease. Liberia has seen the most deaths by far, at greater than 2,800, followed by Sierra Leone and Guinea at more than 1,000 each. The United States has had four reported cases of the disease and one confirmed death.

This year’s outbreak has affected businesses in West Africa and worldwide. A number of airline stocks dipped last month following reports that a potentially-infected woman had flown from Cleveland to Dallas on Frontier Airlines. Meanwhile, the stock market in general suffered in October, in part due to investor concerns over the spread of the disease.

This article originally appeared on Fortune.com

TIME Money

Millennials Will Make These 15 Companies Tons of Money

Bags of tortilla chips sit in a row at a Chipotle Mexican Grill Inc. restaurant in Hollywood, California on July 16, 2013.
Bags of tortilla chips sit in a row at a Chipotle Mexican Grill Inc. restaurant in Hollywood, California on July 16, 2013. Patrick T. Fallon—Bloomberg / Getty Images

Where Millennials choose to spend their money could pay off serious dividends

The question on every Wall Street trader’s mind these days: “What do millennials like?”

Or at least it should be, according to a new report released Tuesday by Morgan Stanley’s equity strategy team. The report paints a pretty compelling picture of the millennial generation’s spending power five years out.

First, in terms of sheer size, millennials outnumber baby boomers as the largest demographic group. But more importantly, they are aging into some of the spend-happiest years of their lives. In the average lifecycle of the American shopper, spending tends to spike between the ages of 25 and 39:

Screen Shot 2014-11-18 at 3.54.45 PM
Morgan Stanley Research

 

Where they choose to spend that money could pay serious dividends to a few savvy stock pickers. Which brings us back to the question, “What do millennials like?”

“Fast casual dining, hotels, buying online, gaming (social and online, less so casinos), eating organic and healthy, and working out more,” writes Morgan Stanley’s consumer stock researchers. They winnowed down a shortlist of 15 companies that hit those millennial sweet spots, and presented them as a “millennial basket” for investors’ consideration before the flood:

Screen Shot 2014-11-18 at 3.52.44 PM
Morgan Stanley Research

 

 

 

 

TIME Terrorism

ISIS Is Minting Its Own Money

A member loyal to the ISIL waves an ISIL flag in Raqqa
A fighter from the Islamic State in Iraq and Greater Syria (ISIS) waves a flag in Raqqa, Syria on June 29, 2014. Reuters

It will be circulated in areas of Syria and Iraq

The militant group Islamic State of Iraq and Greater Syria (ISIS) said Thursday that it plans to introduce its own currency in the areas under its control because it wishes to “emancipate itself from the satanic global economic system.”

ISIS said it will be minting new gold, silver and copper coins as part of a new currency called Dinar, according to a message translated by SITE Intelligence Group, an organization that monitors terrorist activity.

MORE: ISIS leader’s new orders: ‘Erupt volcanoes of jihad”

It is not yet clear how ISIS will produce the currency, which will be “based on the inherent value of the metals,” but the group says its “Treasury Department” will organize minting and circulation.

ISIS did not say when the currency would be launched or specify in which areas it would begin circulating the currency.

MORE: How to financially starve ISIS

TIME justice

Ex-Wife of Oil Magnate to Appeal $1 Billion Divorce Award

7th Annual Heath Corps Grassroots Garden Gala
Harold Hamm ,CEO of Continental Resources, attends the 7th Annual Heath Corps Grassroots Garden Gala at Gotham Hall on April 17, 2013 in New York City. Brad Barket—Getty Images

This high-stakes divorce case isn't over yet

The ex-wife of an oil magnate will appeal the divorce award of over $1 billion in cash and assets that she was handed this week, in one of the largest divorce cases in U.S. History, her lawyers said Thursday.

Attorneys for Sue Ann Hamm said the $995 million sum that her ex-husband, Continental Resources CEO Harold Hamm (worth an estimated $12.6 billion), was ordered to pay her was “not equitable,” according to Reuters. She was also allowed to keep additional assets, including homes in California and Oklahoma that are worth tens of millions of dollars.

Hamm, a lawyer and an economist, worked at Continental during parts of their 26-year marriage.

Continental Resources’ shares have fallen since the divorce proceedings began. Harold Hamm holds more than 68% of the company’s stock, a stake valued at around $13.5 billion today, but was worth $18 billion nine and a half weeks ago since the trial began. The appeals process could take months or even years.

[Reuters]

TIME Money

Swiss Pocket Watch Sells for Record $24 Million

SWITZERLAND-LIFESTYLE-AUCTION-LUXURY-JEWELLERY-WATCHES
The Henry Graves Supercomplication timepiece made by Swiss watchmaker Patek Philippe in 1932 is photographied during a press preview by Sotheby's auction house on November 5, 2014 in Geneva. Fabrice Coffrini—AFP/Getty Images

Designed by luxury Swiss watchmaker Patek Philippe

A Swiss-made pocket watch fetched a record $24 million, the most ever paid for a timepiece, at a Sotheby’s auction in Geneva on Tuesday.

The Henry Graves Jr. Supercomplication is named after a New York banker who competed with the car manufacturer James Ward Packard to commission the most elaborate watch possible in the early 20th century, the Wall Street Journal reports. Sotheby’s said afterward that the sale of the watch, designed by luxury Swiss watchmaker Patek Philippe, “re-established its supreme status as the most valuable timepiece in auction history,” beating the $11 million record set in 1999.

The timepiece boasts 24 “complications,” or features, besides the basic telling of time. Some of these functions include showing moon phases, the time of sunset and a perpetual calendar that won’t’ require resetting until the year 2100. The device has 920 individual parts, including 430 screws, 110 wheels and 70 jewels.

[WSJ]

TIME People

Oil Mogul Harold Hamm to Pay Wife $995 Million in Divorce

7th Annual Heath Corps Grassroots Garden Gala
Harold Hamm, CEO of Continental Resources, attends the 7th Annual Heath Corps Grassroots Garden Gala at Gotham Hall on April 17, 2013 in New York City. Brad Barket—Getty Images

The ruling, which is subject to appeal, comes after a 9-1/2 week divorce trial ended last month

An Oklahoma County judge has ordered oil magnate and Continental Resources Chief Executive Officer Harold Hamm to pay nearly $1 billion in a divorce judgment, according to a court filing made public on Monday. Special Judge Howard Haralson found that Hamm should pay his ex-wife Sue Ann Hamm a total of $995.5 million, with about a third of the funds, or $322.7 million, to be paid by the end of the year, the filing says.

Hamm, Oklahoma’s richest man, will then be required to pay the rest of the judgment, some $650 million, in installments worth at least $7 million per month, the filing says…

Read the rest of the story from our partners at NBC News

TIME Economy

The Strength of the U.S. Dollar Reflects Global Economic Reality

A man stands next to a money changer in Colombo
A man stands next to a money changer in Colombo, Sri Lanka, on Feb. 29, 2012 Dinuka Liyanawatte—Reuters

All hail the almighty greenback!

Ever since the Wall Street financial crisis of 2008, predictions of the dollar’s demise have come fast and furious. As the U.S. economy sank into recession, so too did confidence that the greenback could maintain its long-held position as the world’s No.1 currency. In Beijing, Moscow and elsewhere, policymakers railed against the dollar-dominated global financial system as detrimental to world economic stability and vowed to find a replacement. Central bankers in the emerging world complained that the primacy of the dollar allowed American economic policy to send shock waves through the global economy that roil their own markets and currencies.

But here we are, six years after the crisis, and the dollar is showing just how resilient it actually is. The dollar index, which measures the greenback’s value vs. a basket of other currencies, has reached a four-year high. Those policymakers who bitterly criticize the dollar show little actual interest in dumping it. The amount of U.S. Treasury securities held by China stands at a whopping $1.27 trillion.

The newfound strength of the dollar makes perfect sense. Sure, the world economic landscape is changing, with new rising powers like China and India, whose currencies may one day rival the U.S. dollar. But the buoyancy of the greenback is a reflection of today’s reality: the U.S. is the lone, significant bright spot among the world’s major economies. GDP in the third quarter grew an annualized 3.5% — far higher than other industrialized economies. That’s why the Federal Reserve has wrapped up its long-running and highly unorthodox economic-stimulus program known as quantitative easing, or QE, which, by spilling a torrent of dollars into global financial markets, was one factor behind the currency’s weakness in recent years.

Meanwhile, most of America’s key trading partners are heading in the opposite direction. The European Central Bank (ECB) is widely expected to start its own QE program to try to combat potential deflation and jolt sagging growth in the euro zone. That’s why the euro’s value against the dollar has been sinking to levels last seen two years ago. If the ECB does act, downward pressure on Europe’s common currency will likely intensify.

Meanwhile, in Japan, the central bank on Oct. 31 surprised markets by greatly broadening its own monetary-expansion program in an attempt to rescue Prime Minister Shinzo Abe’s stumbling initiatives to revive the long-slumbering Japanese economy, nicknamed Abenomics. The yen tumbled to a seven-year low against the dollar as a result. Research firm Capital Economics predicts that the Bank of Japan’s (BOJ) action will help push the Japanese currency all the way down to 120 yen to the dollar by the end of 2015, from about 112 today.

The dollar has been gaining against some emerging-market currencies as well. Faced with slowing growth and the strain of economic sanctions, Russia’s ruble has been hitting repeated all-time lows against the dollar. Not even an interest-rate hike by Russia’s central bank on Friday has been able to stem the slide. On top of that, though that pressure has eased, the currencies of India, Indonesia and many other emerging economies still have not recovered their strength from when they tanked last year, after the Fed first signaled it was scaling back its stimulus activities.

How long can the good times roll for the U.S. dollar? That depends on many factors, from the future growth of U.S. GDP to the health of the global economy and upcoming Fed decisions on interest rates. Yet with central-bank policy in the most advanced economies sharply diverging — the Fed tightening, the ECB and BOJ loosening — the dollar could see continued gains. Some economists believe the conditions are in place for an extended period of dollar strength, perhaps lasting several years. “The building blocks are still in place for a sustained dollar rally,” analysts at financial giant Barclays concluded in a recent report.

The fact remains, too, that no other currency has emerged to truly rival the dollar as the world’s No.1 choice. The uncertain stability of the euro was exposed by its multiyear sovereign-debt crisis and the chaotic response to it from Europe’s leaders. And even though Beijing has high hopes to transform the Chinese currency, the yuan, into an international powerhouse, policymakers there have been extremely slow to introduce the financial reforms that would make that a real possibility.

Of course, there are still long-term factors at play that could knock away the pillars of dollar dominance. Russia and China, for instance, recently pledged to settle more trade between the two nations in rubles and yuan. But for now, the dollar reigns supreme, as well it should.

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