Money Management

Costco is known for being great for your wallet. But you may still be missing out on savings. Here are a few ways you may be losing money. [[{“value”:”

There are a lot of ways you can stretch your budget by shopping at Costco. Even if you didn’t shop there for everyday essentials, the deals on gift cards alone could cover a basic membership.

But not everyone is maximizing their Costco savings. I see a lot of folks leaving money on the proverbial table by simply not taking advantage of all the ways they could be saving. Here are a few you may be overlooking.

1. Not upgrading to an Executive membership

There are times when paying more for a higher-tier product can save you money (such as when a credit card annual fee unlocks bonus rewards or perks). For folks who spend a lot of money at Costco each year, an upgrade to an Executive membership could be one of them.

How? Executive members receive an annual reward equal to 2% of their eligible in-store Costco purchases from the previous year. This can really add up:

Since it costs $60 to upgrade from a regular Costco Gold membership to an Executive membership, the break-even point is spending $250 a month. If you spend more than that at Costco, then the upgrade would actually make you money.

2. Skipping out on Kirkland Signature items

If you’re just looking at cost, it’s easy to see the appeal of Costco’s house brand, Kirkland Signature. Prices are extremely competitive compared to typical grocery store prices, and even much lower than most big-box prices.

However, I can also see why you might be hesitant to try them despite those prices. I’ve been burned by store brands before, too. But I can tell you, this isn’t your typical store brand.

Costco takes great care to keep Kirkland Signature products to a high standard, and it shows. In fact, it’s a well-known “secret” that some popular brands manufacture some Kirkland Signature products. (And there are some strong theories about which brands may manufacture others.)

3. Using the wrong rewards card to pay

Restrictive policies about which networks it will accept makes Costco tricky from a credit card perspective. Essentially, you can only use Visa credit cards when you shop in-store. You can only use Visa or Mastercard when you shop online.

These rules really limit which rewards credit cards you can use, which can make maximizing your rewards a challenge. That doesn’t mean you shouldn’t try, however — especially if you’re spending hundreds of dollars a month at Costco.

If you can find a card with bonus rewards for warehouse clubs, that could work well. Another good option is a travel rewards card with a high flat rate (you can find some with 2x points per $1). And if all else fails, a 2% cash back rewards card is a simple and effective compromise.

4. Avoiding the store between hauls

If you’re like me, you prefer to keep your Costco hauls sporadic, perhaps visiting monthly or even quarterly to stock up. (That parking is always a nightmare.) Unfortunately, this habit could be costing us money.

if you’re not in the store very often, you could be missing out on a ton of great deals. Costco sales can vary from store to store, and most never make it online. This is especially true of seasonal items that aren’t sold year-round, but also applies to items that end up selling better in some regions than others.

Moreover, discontinued and even regular sale items can sell out quickly if they’re in demand. If you like to bargain hunt at Costco, try fitting in an extra trip every now and then to look for in-store deals.

5. Not returning bad buys

Costco has one of the best return policies around thanks to its broad satisfaction guarantee policy. With a few exceptions (major electronics and appliances, tires, etc.), you can return most items more or less indefinitely.

This even applies to your membership fee. If you’re not happy with it, you can get it refunded.

Given the generosity of this policy, it makes zero financial sense to keep a product you’re not happy with if you bought it from Sam’s Club. That applies as much to that 2-year-old coffee machine that broke as it does to the cheese that went moldy a week before its expiration date.

Get every penny of savings

Given that we pay every year for the pleasure of shopping at Costco, it’s important to make sure that investment is worthwhile. Hopefully these tips can help you find even more ways to save money at Costco and your membership fee pays big dividends.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Brittney Myers has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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For one day in April, Target is offering 10% off Target-branded gift cards. Find out how to shop this deal so you can keep more money in the bank. [[{“value”:”

Last month, Target announced it would overhaul its Target Circle Rewards program in April. One positive change is that deals will be automatically applied to members’ accounts, so they no longer miss out on discounts that could save them money. Previously, members had to activate deals to save. This is likely a welcome change for busy shoppers who may be forgetful.

The revised Target Circle Rewards program launched on April 7. From April 7 through April 13, the popular retailer is hosting its Target Circle Week event to celebrate the updated program. Shopping during this sale could be a win for your wallet. Target shoppers can buy Target gift cards for 10% off on April 13 as part of the celebration. Here’s what you need to know about this promotion.

Score discounted Target gift cards on April 13

Gift cards are a convenient payment solution. If you like buying gift cards from your favorite retailers when they’re discounted or stocking up on gift cards so you always have presents for loved ones, you don’t want to miss this deal.

On Saturday, April 13, 2024, Target Circle Rewards members can buy Target gift cards for 10% off. This deal applies to Target-branded gift cards purchased in-store at Target and online at Target.com.

Rewards members can buy up to $500 in gift cards at a discount for a maximum of $50 in savings. This gift card sale doesn’t apply to other gift cards, like restaurant and dining gift cards from other retailers.

This sale could be a perfect opportunity to keep more money in your checking account while purchasing the gift cards you’ve been meaning to buy anyway. You must be a Target Circle Rewards member to take advantage of this deal. If you’re not a member, you can join for free.

Other ways to save money during Target Circle Week

The above gift card deal isn’t the only sale happening during Target Circle Week. From April 7 through April 13, Target Circle Rewards members can take advantage of other deals.

Here are a few highlights:

40% off floorcare30% off outdoor living20% off all hair, nail, and suncare30% off bedding and bath30% off tees, tanks, shorts, and dresses for the familySpend $50 on home care products and receive a $15 Target gift cardSpend $50 at Ulta Beauty at Target and receive a $15 Target gift card

Don’t ignore your finances

Ready to shop? Whether you plan to scoop up discounted gift cards for future gifts or shop for other deals, keep your finances in mind and only buy what you can afford. You want to avoid racking up credit card debt. Credit card interest fees are costly and can add up quickly.

Your best bet is to outline a shopping list to stay on track and avoid overbuying. Setting and honoring a shopping budget before adding items to your cart is also wise. It can be easy to feel tempted to purchase items you don’t need during a sale like this.

If you’re new to budgeting, we recommend using one of the best budgeting apps. Digital tools like this can make it easier to monitor your spending and set spending limits, helping you feel less stressed about money. For additional tips, review our personal finance resources.

Alert: our top-rated cash back card now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

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Looking for life insurance policies? Avoid these mistakes when picking out a plan. [[{“value”:”

The complexity of some life insurance plans can make it challenging to know which type of insurance to choose, how long the policy should last, and who the death benefit should go to.

All this can make choosing the right life insurance policy feel like an overwhelming task. But it doesn’t have to be difficult. Taking the time to ask yourself a few questions and compare policies will help you make the right decision.

Here are five mistakes seniors sometimes make when choosing a life insurance plan, and how to avoid them.

1. Buying whole instead of term insurance

Most people will benefit more from term life insurance than whole life insurance. Term insurance is for a set period, like 10 or 20 years, while whole life insurance policies typically last for your entire life.

Term insurance makes a lot of sense for seniors because the timeframe for holding the policy is shorter and the policies are usually much cheaper. For example, a 60-year-old male may spend $77 per month on term life insurance, while whole life insurance may cost $174 per month, according to Progressive.

When living on a fixed income and potentially dependent on Social Security, you want to avoid expensive insurance costs that add to your budget.

2. Not asking yourself why you want life insurance

Not all seniors need life insurance. If your debts are paid off and your family doesn’t need an inheritance, you may not need life insurance.

But if you want to help cover the cost of your funeral, leave an inheritance to family members, or provide an aging spouse with more money, then having a life insurance policy is an excellent option. Some seniors choose a life insurance policy because it usually isn’t subject to estate or income taxes.

In contrast, if you leave an individual retirement account (IRA) to a beneficiary, the distributions from that account may be taxable. Knowing why you want a life insurance policy will help you decide on the right one.

3. Not comparing policies

Not all life insurance providers use the same calculations to determine what type of policy to offer and for how much. Shopping around could help you find a better policy and cheaper premiums.

The good news is you don’t have to spend much time comparing life insurance policies. It’s easier than ever to do this online; comparing policies will help you find the best life insurance.

When comparing policies, look at the coverage level, if there’s a physical exam required, and how much your monthly premiums will cost. It’s also a good idea to read through life insurance reviews to find the best provider for you.

4. Not listing the right beneficiaries

You’ll have to decide who receives the death benefit if your life insurance policy is enacted. It could be a spouse, child, or anyone you choose, but you’ll have a few things to consider before deciding.

For example, if you leave the death benefit to an adult child, then it will most likely avoid entering the court system and will be paid out directly to them. But if you want to leave your life insurance to your minor grandchildren, you may want to set up a life insurance trust to avoid the payout getting hung up in the court system.

You should also list a contingent beneficiary. This person will receive the death benefit if your primary beneficiary is unable to be found or has passed away.

5. Buying too much coverage

Seniors who buy life insurance likely have different goals than, say, those with a family. Younger people may want to leave money to their families to cover future education expenses for their kids, pay off their mortgage, or make up for their loss of income when they pass away.

While you may not have kids to take care of any longer, you have other financial responsibilities. For example, 10 million Americans aged 65 and older have a monthly mortgage payment. You may want life insurance to help your spouse pay off your home, but make sure you don’t pay for more coverage than you need to meet your goals.

Leaving an inheritance behind can significantly help your family and friends, but it’s important to avoid some of these mistakes when choosing a policy. Take the time to compare life insurance plans, decide on beneficiaries, and consider what you want the policy to help pay for. Doing so will ensure you find the right policy for you.

Our picks for best life insurance companies

Life insurance is essential if you have people depending on you. We’ve combed through the options and developed a best-in-class list for life insurance coverage. This guide will help you find the best life insurance companies and the right type of policy for your needs. Read our free review today.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Chris Neiger has no position in any of the stocks mentioned. The Motley Fool recommends Progressive. The Motley Fool has a disclosure policy.

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Interest-bearing checking accounts sound great on paper, but they probably won’t earn you much money. Read on for what to look for instead. [[{“value”:”

With so many places to put your money these days, banks are pulling out all the stops to draw in new customers. One way many institutions have chosen to do this is by offering interest on their checking accounts, something historically limited to savings accounts.

It can sound appealing, but it’s not that useful in practice. Here’s why and what you should focus on when looking for a new checking account.

What’s wrong with interest-bearing checking accounts?

There’s nothing wrong with earning a little interest on your checking account funds. But it’s more of a gimmick than a useful tool for growing your wealth.

For one, checking account interest rates are usually significantly lower than savings account interest rates. The best savings account rates are currently around 5%. But most interest bearing checking accounts have rates of less than 0.50%.

To give you a comparison, if you deposited $1,000 in a checking account with a 0.50% APY and another $1,000 in a savings account with a 5% APY, your savings account balance would grow to $1,050 after a year. But your checking account balance would still be sitting at $1,005. Because of this, a savings account or a brokerage account is a better home for cash you’re hoping to grow over time.

Checking accounts are intended for cash you use for everyday spending, and that highlights another issue with interest-bearing checking accounts. You only earn interest for funds you keep in the account, and your money might not be there for very long. The constant ins and outs can further reduce how much you earn in interest over time.

So what does matter in a checking account?

Accessibility is much more important than an interest rate when choosing a checking account. You want to be able to get your money in and out as quickly and easily as possible.

Most banks offer you several ways to do this. You can transfer money electronically through your online account or a mobile app. You’ll probably have a debit card and you may get check-writing capabilities as well. But there are a few additional features you might want to look for.

First, if you use cash often, you might prefer to work with a brick-and-mortar bank that has a branch network in your area. Or you can opt for an online-only bank that has a nationwide ATM network.

Those who find themselves needing to deposit a lot of cash will want a brick-and-mortar bank or an online bank that has a network that includes deposit-taking ATMs. Be sure to look into whether there are any fees associated with using these ATMs.

If you receive a lot of paper checks, a mobile deposit feature is a must. It’ll save you a lot of trips to a physical bank branch. Just be sure to check whether there are any limitations to how many checks you can deposit per month or how big the checks can be.

Look into any fees the bank can charge you, as well. One of the biggest to watch for is the monthly account maintenance fee. These are most common with brick-and-mortar banks, and many give you options to waive them. But if you don’t think you can get around it, it’s best to look for a different institution that won’t charge you for an account.

Finally, consider the bank’s customer service. You can look at customer reviews and third-party surveys like those J.D. Power conducts annually. But nothing beats testing it out for yourself. If there’s a branch in your area, go visit it. Or hop on the phone and ask a few questions about the account. It might not seem that important to you right now, but if you encounter troubles accessing your funds later, good customer service can make all the difference.

And if you have questions about anything to do with the account, contact the bank for clarification before opening it. It’s not impossible to close an old checking account and switch to a new bank, but it can be a hassle. It’s best to choose an account you’re happy with the first time.

These savings accounts are FDIC insured and could earn you 11x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts could earn you 11x the national average savings account rate. Click here to uncover the best-in-class accounts that landed a spot on our short list of the best savings accounts for 2024.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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