Money Management

Babies aren’t cheap, but Costco can make having one slightly more affordable. Learn which three items you should buy at Costco for your first baby. [[{“value”:”

My wife and I recently celebrated six beautiful (and hectic) months with our first baby. From swaddling to bottling to vaccinations, let me tell you — there’s a learning curve (or, in my case, a Mount Everest-sized ladder).

One thing I’ve learned — babies are pricey. In 2023, parents spent an average of $13,000 in the first year of having a baby, excluding labor and delivery costs, according to American Heritage. While some of these costs can be difficult to cut down (baby formula is notoriously expensive), one way to save is to buy products in bulk at Costco. Many baby essentials are sold as Kirkland Signature products, which are generally more affordable without sacrificing on quality.

Whether you’re expecting a baby in 2024, or the little bub is already here, here are three Kirkland products that can help your personal finances.

1. Diapers

There’s a reason why no baby shower is complete without a tower of diaper boxes — you’ll need a lot of them. In your child’s first year alone you could go through over 2,000 disposable diapers, which could easily lead to racking up credit card debt.

Thankfully, Costco sells cheap diapers. For example, a box of 192 Kirkland Signature (size one) diapers sell for $34.99, which comes out to around $0.18 per diaper. That’s one of the lower per-diaper prices you’ll find. But even if you preferred Huggies to Kirkland Signature diapers, you’d still find the cheapest price at Costco, as shown below.

2. Wipes

Before I had a baby, I thought a pack of wipes could easily last us a month. But then my daughter introduced me to blow-outs, and I found myself easily using five wipes per diaper change.

It’s hard to beat the price of these baby wipes. A box of 900 wipes is $21.99, or about $.024 per wipe. The cheapest comparable wipes on Amazon are $22.99 for an 800 count, or about $0.026 per wipe. I also appreciate that Costco offers a scent-free option, which is great for my daughter’s sensitive eczema-prone skin.

3. Formula

One thing no one warns you about when expecting your first child — feeding a baby is hard work. Even if you’re blessed with a strong supply, breastfeeding is extremely taxing. My daughter wanted to be fed every two hours, day and night for the first few months of her life. And since babies need to be fed breast milk or infant formula for the first year of their life, it’s no surprise that 75% of parents use at least some formula within the first six months.

Of course, baby formula isn’t exactly cheap, which is why finding high-quality formula at a low price could end up saving you a lot. Fortunately, Costco sells baby formula at extremely competitive prices. So competitive, in fact, it’s hard to find a cheaper price at another store. For example, here’s how Costco’s baby formula compares with generic brand formula from other retailers.

Now, I wouldn’t say Costco has the cheapest price for every baby item, nor should you buy every baby item in bulk. For example, Costco sells a three-pack of Desitin diaper rash cream for $21.99, but I can count on one hand how many times I’ve used it.

But for other items, like diapers and wipes, buying in bulk is one of the best things you can do for your sanity as a new parent. Even if your child loves the carseat (lucky you!), no new parent wants to be spending their precious time buying diapers each week. Trust me, you’ll need that extra hour wherever you can find it.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, and Walmart. The Motley Fool has a disclosure policy.

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If you’re buying a home after years as a renter, your costs will change. Learn about a few potential financial shocks. [[{“value”:”

If you’ve been renting for a while and you decide to buy a house, you know your decision to become a property owner is a major lifestyle change. You’ll be more tethered to your place, for example, because you’d have to sell (or find renters) if you wanted to relocate.

While many people have some idea of what to expect when they apply for a mortgage and get on the property ladder, there are some huge surprises you may not be anticipating. Here are some of the biggest shockers new homeowners may face if they purchase a property when they are used to renting one.

RELATED: Today’s Mortgage Rates

1. Maintenance takes more time and money than you might think

When you own your own place, there’s no landlord to call if something goes wrong. You have to deal with it. This means fixing it yourself or finding a repair person that you have to pay. This can get very expensive, especially if you have a major issue like a leaking roof.

Even if you don’t have a big problem, it still takes time and money to take care of your place. You’ll need to mow the grass and shovel the snow if you have a lawn or live in a cold climate. You may have to clean out your gutters. Changing your air filters needs to go on your to-do list.

And these are just a few of many, many new obligations you’ll be taking on.

You need to be mentally and financially prepared for these new added challenges. Typically, this means saving around 1% to 4% of your home’s cost each year for maintenance expenses. You may also want to get familiar with watching YouTube videos of how to deal with more minor problems yourself. You’ll be less likely to want to call a plumber on Thanksgiving to deal with that water leak when their bills come out of your own bank account.

2. Property taxes can be a huge expense

Property taxes may also come as a shock to you when you become a homeowner. The median cost of real estate taxes paid in the U.S. was $2,971 according to The Ascent’s property tax research, but in some states, your tax bill is likely to be much higher.

Many mortgage lenders require you to add a portion of your annual tax bill onto each mortgage payment, and then that money will go to an escrow account to pay your taxes when they’re due. But not all do. If you don’t escrow your property taxes, you’ll need to be sure you’re saving this money on your own so you’re ready when the county sends you the bill.

You’ll also want to take the cost of property taxes into account when you decide if your home is affordable. Total costs of housing, including these taxes, shouldn’t exceed 30% of your income.

3. Home insurance premiums might be a big chunk of your budget

Finally, you need to be prepared for homeowners insurance premiums. They are typically much higher than renters insurance premiums, since you’re now responsible for covering the dwelling as well as your stuff.

Unfortunately, homeowners insurance premiums can also increase over time, and sometimes by a lot, even if you don’t make a claim. This can happen if there are a lot of natural disasters in your area or if some insurers pull out of your local market. Premiums nationwide for home insurance were actually up 23% year-over-year in January 2024 compared with January of 2023. This big increase is driven by a number of states where climate change is causing more disasters and where insurers are struggling with large claims payouts.

It’s important to be prepared for these costs and to make sure you’re ready to pay them before you commit to purchasing a home, or you could be left with regrets. You can do this by:

Practicing living with your new housing costs: If your mortgage, property taxes, and insurance will be higher than your current rent payment, practice making that payment for a while. You can do this by paying the additional money into savings. So, for example, if your current rent is $1,500 a month and your new costs will be $1,800, you’d put the extra $300 a month into savings for a few months to be sure you’re OK with your new living costs.Opening a savings account for home maintenance: As soon as you become a homeowner, or even before, open a savings account that is dedicated to home maintenance costs. Aim to put around 1% to 4% or your home’s value into it each year.Look into property tax and insurance costs before you buy: You can get quotes from a home insurer and check county tax records to see what you’re likely to pay for these expenses.

By taking these steps, you can make certain your purchase is truly within your budget and you’ll be less likely to face unpleasant financial surprises.

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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.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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The dark web is full of shadowy cybercriminals who want to steal your tax refund! Learn how to keep your identity — and your money — safe. [[{“value”:”

“The Dark Web” sounds like the name of a spy novel, but it’s a real thing: a vast underground layer of the internet that is not reachable by conventional web browsers and search engines. Most everyday internet users might never access (or need to access) the dark web. Most of us keep our internet activity confined to the “surface web” — but the surface web is only about 4% to 5% of the entire internet; the rest is deep web and dark web.

The dark web allows a higher level of privacy, anonymity, and encryption. There are good, lawful, legitimate purposes for the dark web, but its anonymity can also be used by cybercriminals and hackers — and some of these dark web hackers want to steal your tax refund.

Check Point Research, a cybersecurity firm, recently shared its list of top tax scams that are happening on the dark web. Let’s see how these dark web tax scams might affect your taxes — and how you can stay safe.

Top dark web tax scams of 2024

Check Point Research monitors activity on the dark web and keeps an eye on the chatter of cybercriminals. If you’ve ever had data released in a data breach, some of your personal information might already be on the dark web. Hackers can use your personal information to try to steal your tax refund with fake bank accounts and other scams.

According to Check Point Research, here are the most popular tax scams among dark web hackers getting ready for tax season.

1. Bank accounts being offered to be used for illicit tax returns

A popular form of dark web tax fraud is tax return fraud, where cybercriminals steal tax refunds by setting up a bank account, filing a fake tax return under someone else’s name and Social Security number, and then collecting the tax refund for themselves. The dark web makes it easier for thieves to find their next victims.

2. Criminals looking to buy access to U.S. tax software

Another way to steal tax refunds is to hack into tax software accounts. If dark web hackers can access your tax software, they could redirect your tax refunds to their own bank accounts and steal sensitive information from you — like your Social Security number, bank details, and more.

3. Threat actors selling access to U.S. tax companies

No company wants to become a victim of a data breach, but massive data breaches have become all too common in recent years. Dark web hackers are always testing for weaknesses and trying to make their next big score so they can steal customers’ private financial information and use it to commit fraud.

4. Stealing tax forms (like W2 and 1040 forms)

Another type of tax refund fraud involves stealing tax forms. If fraudsters can obtain your Social Security number, hack into your company or your employer’s HR system to steal your W2 information, or re-create these forms based on a few “real” numbers, they can potentially steal your identity and steal your tax refund.

How to protect yourself from dark web tax scams

Fortunately, even though dark web hackers have sinister schemes, the rest of us still have power to protect ourselves. Use these easy strategies to keep your personal information safe and reduce your risk of identity theft.

1. Sign up for two-factor authentication

Most banks and the best tax software companies should give you the ability to use two-factor authentication (also known as 2FA or multi-factor authentication) to protect your account. This is a cyber security protocol that makes it harder for hackers to break into your account or steal your identity, even if they have your password. Use two-factor authentication wherever you can — on email and social media accounts too, not just financial accounts.

2. Get a credit monitoring service

Many free credit monitoring services also offer free identity theft monitoring. In case there’s a suspicious credit application on your credit report, or if your sensitive personal information (like old passwords or other identifying details) shows up on the dark web, these monitoring services will let you know.

3. Beware of suspicious emails or texts from “the IRS”

Along with trying to steal your tax refund from the IRS, some dark web cybercriminals might try to steal money directly from you — by pretending to be the IRS. If you receive any suspicious calls, texts, or emails from someone claiming to be from the IRS, or offering you a larger refund, or asking you to share bank information, don’t do it! The IRS doesn’t contact people in this way; if the IRS has an actual question or issue to discuss with you, they’ll send you an official letter in the mail.

Bottom line

Identity theft schemes and cybercriminals are becoming more aggressive and sophisticated. But that doesn’t mean they’re impossible to stop. Knowing about the latest dark web tax scams is a good reminder to use smart information security strategies to protect your identity and secure your accounts — when filing taxes, and all year long.

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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.The Motley Fool has a disclosure policy.

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This writer relies heavily on Amazon Prime. Read on to see why. [[{“value”:”

If you’re spending $139 a year on an Amazon Prime membership, you may, at times, have wondered whether that’s really a wise personal finance decision. Granted, if you’re not particularly cash-strapped, you might argue that $139 won’t exactly make or break your annual budget. But still, it makes no sense to spend $139 on something you’re not getting good value from. So it’s not a bad idea to assess your need for a membership from time to time and make sure the fee is worth paying.

On my end, though, I can easily justify the $139 annual cost of a Prime membership. And I won’t even consider canceling it for these reasons.

1. I have too jam-packed a schedule to run all over the place to stores

As a mom of three school-aged kids, I can’t tell you how many times my children have come home on a Monday and said something like, “I need yarn and a drawing pad and glitter pens for a project by Friday.” But given that my schedule is jam-packed, I don’t have time to run to the store every time my kids need crafting supplies, or a last-minute birthday party gift, or whatever other request comes up.

That’s why my Prime membership is totally worth it to me. As a freelance writer who gets paid to, you know, write, the more time I spend driving all over town, the more my income takes a hit. And my Prime membership saves me countless hours year after year.

2. I live in a big-box store dead zone

There’s a supermarket that’s a short walk from my house, and I’m grateful to live about 10 to 15 minutes away from not one, but two Costco locations. However, I also happen to live in the middle of a big-box store dead zone.

The closest Target location to my home is a good 20 minutes away, and the nearest Walmart is more like 25 minutes. That’s roughly 45 minutes round-trip and a lot of gas for my fuel-guzzling minivan.

My Prime membership makes it so I don’t have to drive those longer distances to big-box stores when we need something you can’t find at the supermarket or Costco. And while I can’t say with certainty that I’m saving $139 a year on gas, I’m definitely saving some of that fee in the form of not having to drive all over.

3. I need the option to try on clothes before committing to a purchase

Prime members are eligible for a benefit called Prime Try Before You Buy. It allows you to order things like clothing and footwear, enjoy a seven-day try-on period, and then decide if you’ll be keeping the items or sending them back.

Best of all, your credit card isn’t charged until you commit to your purchase. So you don’t have to deal with waiting to get refunded for returns.

As a mom of kids who frequently outgrow their clothes, this service is huge. It takes a lot of the pressure off of shopping and also allows me to order items in different sizes when I’m not sure which one I need — all without incurring immediate credit card charges.

Some people love Amazon Prime for its free streaming content. That’s a feature I hardly ever use. Rather, the primary benefit my Prime membership offers me is not having to leave the house when there are items I need to procure quickly.

If you’re not sure whether to keep your Prime membership, ask yourself how often you use it and what savings you actually get out of it. Even if you’re only placing a few orders a year, if Prime’s streaming content takes the place of another streaming service you might subscribe to, that alone could justify the $139 annual fee. So consider the whole picture before deciding whether to stick with Prime or say goodbye.

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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon and Target. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, Target, and Walmart. The Motley Fool has a disclosure policy.

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