Money Management

Costco is a great option for some people to save money, but warehouse shopping won’t work for everyone. Don’t join if these are your buying preferences. [[{“value”:”

Costco has a lot to offer its members. Its store-brand Kirkland products are cheap and beloved, its $1.50 hot dog and soda combo is one of the best deals around, and its discounted bulk prices can help you keep credit card bills down.

But while signing up for a Costco membership absolutely makes sense under the right circumstances, it’s definitely not the best option for everyone. In fact, if you have any of these three shopping habits, you may want to steer clear of joining the warehouse club.

1. Using manufacturer coupons

Using manufacturer coupons can help you keep more money in your bank account by reducing the prices of things you buy. But not at Costco. The store accepts no manufacturer coupons at all.

If you regularly bring a handful of coupons from the newspaper or printed manufacturer coupons to your local grocery store, then you’ll likely be disappointed when this strategy doesn’t work and you’re turned down at the Costco register. Since coupons, when used properly, can save you a lot of money, you’re most likely better off just sticking to what you’re currently doing at your local grocery or drugstore.

2. Mostly shopping online

If the idea of getting up, leaving your house, and going to a warehouse club to pick up all of your items leaves you feeling a sense of dread, you should not even consider joining Costco.

See, while you can shop at Costco.com, doing so will cost you more. Costo’s online prices are higher than those in the warehouse club, and there isn’t even an option for free grocery pickup or delivery without paying markups through Instacart.

The reality is, you need to be ready to visit the club to get good deals and to make the most of your membership by buying Costco gas while you’re there. If you are an Internet-only shopper, a Sam’s Club membership could be a better choice — items there don’t cost more online, and Sam’s Club Plus members get free shipping on all eligible items.

The Sam’s Club PLUS membership is more expensive, though. It’ll cost you $110, compared to $50 for a standard Sam’s Club membership and $60 for a standard Costco membership. So even joining Sam’s may not be the best move if you’re primarily an online shopper.

3. Buying small amounts of fresh food regularly

Finally, if you tend to be a person who regularly purchases small amounts of fresh food rather than stocking up on frozen or non-perishable items, then Costco may not provide enough value to make a membership worth it.

Costco items tend to come in very large packages, and while the store does sell produce like fresh fruits and veggies, you’ll usually need to buy a lot at once — like three pounds of apples or a two-pack of cantaloupes. If you typically figure out what you want to eat on the day of and stop at the store on your way home, Costco’s large sizes may not mesh well with your lifestyle.

If these are your shopping habits, there’s nothing wrong with that as long as you’re living within your means and not overspending on groceries. You don’t need to change your shopping and personal finance habits to fit Costco. You just need to accept that perhaps you aren’t a Costco person and pass up on the membership, no matter how good that hot dog may sound.

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.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Costco Wholesale. The Motley Fool has a disclosure policy.

“}]] Read More 

Missing a refund? Don’t panic. Take a look at some of the reasons why it may be delayed. [[{“value”:”

Taxes are due this year on April 15. But if you’re someone who likes to be ahead of the game, you may have submitted your 2023 tax return in late January or early February.

The benefit of filing taxes early is potentially expediting your refund. But what if you submitted your taxes weeks ago and your refund has yet to show up?

Your first thought might be something along the lines of, “Oh boy, I guess I’m getting audited.” But while it may be that the IRS needs extra time to verify the information on your tax return, that’s not necessarily the reason your refund hasn’t arrived yet. Here are some other explanations.

1. It’s only been a couple of weeks

The IRS typically issues tax refunds within 21 days of receiving tax returns. If you sent in your taxes 14 or 15 days ago, you may just have to sit tight a little bit longer until that money arrives in your bank account.

Remember, too, that your bank may not necessarily notify you that your refund has arrived. You may need to log into your account to check on that money.

2. You filed your taxes on paper

If you’re someone who files a physical tax return, expect your refund to take longer. The IRS says it typically takes six to eight weeks to receive a refund following a paper return. And a big part of the reason is that these returns have to be processed manually. They may also be more likely to contain math errors, which is something the IRS will usually try to resolve on its own.

With an electronic return, you’re less likely to have faulty math, and you’ll usually get your refund much faster. So if that’s your goal, it pays to file electronically going forward.

3. You entered the wrong banking details for direct deposit

The IRS gives filers the choice to receive a refund check by mail or have funds deposited electronically into a bank account. But if you entered the wrong bank account or routing number when you asked for direct deposit, it could be delaying your refund.

Usually, in this situation, the bank in question will reject the payment the IRS sends. From there, the IRS will have to take that money back and then issue a physical check. So it’s easy to see why your money may be held up if you botched your banking details.

How to follow up on your refund

If you’re convinced that your tax refund is overdue, you don’t need to be in the dark. You can use the IRS’s “Where’s My Refund?” tool to check on the status of your refund.

To use this tool, you’ll need:

Your Social Security numberYour tax-filing statusThe amount of your refund

From there, you may get a message to call the IRS to follow up on your money. And even then, there’s no need to panic or assume the worst.

But you also might see that your refund is still being processed. And if so, rather than worry, make a note to check back in a few days and see what’s what. Chances are, you’ll have your money soon enough one way or another.

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.The Motley Fool has a disclosure policy.

“}]] Read More 

Is a recession likely in 2024? Here’s what you need to know. [[{“value”:”

At the start of 2023, many people were worried about an economic recession. Thankfully, that didn’t come to pass. But now that we’re further along into 2024, some may be worried about the potential for a downturn to occur this year.

Without a crystal ball, we can’t say with certainty that a recession won’t hit in 2024. But based on what we know now, it’s not so likely. Here’s why.

Unemployment is low

In January 2024, the U.S. economy added more than 350,000 new jobs. And the unemployment rate held steady at 3.7%, which is low, historically speaking.

This doesn’t mean layoffs didn’t make the news during the first couple of months of the year. But generally speaking, the labor market is strong and jobs are available.

Consumer spending may hold steady

Last month, Fitch Ratings reported that consumer spending was resilient in 2023 despite higher borrowing rates. The agency also projected a modest uptick in spending for 2024. And if consumers continue to spend at a steady pace, that alone could be enough to avert a recession.

Rate cuts could be in store

The Federal Reserve is expected to start cutting interest rates at some point in 2024. Once that happens, consumers looking to borrow money in loan or credit card form may be in for some relief. That could lead to an additional increase in spending.

A recession, by contrast, often comes as a result of a notable decline in consumer spending. A big reason so many experts initially warned of a 2023 recession was that the Fed had begun raising interest rates to cool inflation in 2022. But if 2023’s economy managed to stay recession-free, it stands to reason that we’re even less likely to encounter a recession at a time when borrowing may become less expensive.

Prepare for a recession just in case

Even though there’s no reason to expect a recession in 2024 at this point, you never know when economic circumstances might change. So a smart move is to prepare your finances for a recession in case one occurs.

One of the most important steps you can take to get ready for a recession is to build or boost your emergency fund. Aim for enough money in your savings account to cover three full months of essential expenses at a minimum.

Next, try to eliminate as much high-cost debt as possible. If a recession hits and it impacts your job, you may end up without a paycheck for a while. It would be a good thing to not have costly debt payments hanging over your head during a time like that (or to at least have fewer or lower debt payments).

Finally, aim to boost your job skills. This won’t guarantee that you won’t end up falling victim to layoffs, but it may lower your chances. The more value you bring to your employer, the harder it may be for it to let you go.

The idea of a 2024 recession may seem scary, but thankfully, there are no major warning signs pointing to one at present. That said, we can’t see into the future, so it’s best to be recession-ready, just in case.

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.The Motley Fool has a disclosure policy.

“}]] Read More 

Do you have multiple credit cards you owe money on? This step-by-step guide will help you figure out which to prioritize paying off. [[{“value”:”

It can be very expensive to be in credit card debt. The average interest rate on credit cards is 21.47%, which means carrying a balance can leave you paying a fortune in interest. This is especially true if you have multiple credit cards with balances on them.

If you owe money to several credit card issuers, you’ll typically want to focus on getting one debt paid down first by making extra payments on that card and paying only the minimum on others. But how can you decide which debt to repay first? Here’s what you need to consider.

Consider consolidating your debt first

The first step in deciding which credit card to focus on paying off first is to determine if you really need to make this decision at all or if you can and should avoid it.

You could eliminate the problem of picking which card to repay if you consolidate your credit card debt. This could mean moving the balances from multiple cards onto one new balance transfer credit card. Or, it could mean getting a personal loan to pay off all of the cards you owe money on.

Balance transfer credit cards are cards with special promotional rates, like 0% APR for 15 months on transferred balances. If you can qualify for a balance transfer card with a large enough balance, you can move what you owe on your other cards over to it. You’ll pay an upfront fee (usually 3% to 5%), but that’s still likely going to be a lot cheaper than paying the APR on your current cards.

If you can move your money to a balance transfer card, you can throw as much extra money as possible toward paying that one single debt off — and all of the money will go toward reducing the balance if you have a 0% rate. That can make payoff faster.

Likewise, if you use a personal loan to pay off multiple cards, you’ll most likely end up paying a lower rate (the average personal loan rate is just 12.35%). And you can send as much extra money as possible to the personal loan so you pay down all your balances ASAP.

Consolidating using a personal loan or balance transfer won’t work for everyone. You’ll need good credit to qualify and should have a plan for paying off the balance and not charging more on the cards you freed up. But if you can do that, this eliminates the question of which card to pay off first and may make your payoff plan easier and more successful.

Think about how motivated you are

If consolidation isn’t right for you, then you do need to decide which card to pay extra on. And the key way to do that is to consider how motivated you are.

If you are committed to becoming debt free ASAP, it makes sense to pay off the card with the highest interest rate first. This will save you the most money over time since you can get rid of those huge financing charges in the most time efficient manner. But if you have a bigger balance on that card, it can be harder to stay motivated.

If you aren’t sure you’re 100% excited about becoming debt free, it may make sense to focus on paying extra on your card with the smallest balance first. This can help you to score a win when you pay that balance down fast — which has psychological benefits that could help you stay the course.

READ MORE: Debt Avalanche vs. Debt Snowball

By thinking about your motivation, you can decide which payoff strategy is likely to lead to success over the long haul. Once you’ve decided, set up extra payments for as much as possible toward the card you’re focusing on and keep chipping away at the debt until you succeed in bringing the balance to $0.

Then move onto the next one until you’re finally free from credit card debt. Once you’ve succeeded in paying off your credit card balances, you can begin using your money to benefit you, instead of making credit card companies richer.

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.The Motley Fool has a disclosure policy.

“}]] Read More 

Having kids is expensive. Read on for ways you can get some tax relief. [[{“value”:”

Having children requires a lot of sacrifice — not just your time, but your money, too. The Motley Fool Ascent research finds that it costs roughly $300,000 to raise a child from birth through the age of 17. And as you might notice, that doesn’t even account for the cost of college.

The good news, though, is that as a parent, you may be entitled to certain credits when you file your taxes. And that’s a very good thing, because unlike tax deductions, which simply exempt some of your income from taxes, credits reduce your tax burden on a dollar-for-dollar basis.

To put it another way, a $1,000 tax credit will result in more savings for you than a $1,000 tax deduction. With that in mind, here are some big tax breaks in credit form that all parents should be aware of.

1. The Child Tax Credit

The Child Tax Credit got a major boost in 2021 as part of lawmakers’ massive stimulus package that year. Because that boost wasn’t extended beyond 2021, some people are under the impression that the Child Tax Credit went away. But that’s not true — it simply reverted to its former maximum value, which is currently $2,000 per child under age 17.

Now, some tax credits are not refundable, so the most they can do is reduce your tax liability to $0. The Child Tax Credit is partially refundable up to $1,600 per child. But there’s a proposal in the works that could expand refundability for the Child Tax Credit for 2023.

Another great thing about the Child Tax Credit is that it’s not just for lower earners. You can claim the full credit if your income is $200,000 or less as a single tax filer or $400,000 or less as a married couple filing jointly.

Beyond these limits, the credit isn’t automatically off the table — but it starts to get reduced. If your income is high enough, you might get nothing even if you otherwise have qualifying children.

2. The Child and Dependent Care Credit

The Child and Dependent Care Credit has a maximum value of $2,100, but the amount you’re eligible for will hinge on three factors:

What you spend on child careHow many children you haveWhat your income looks like

The credit, which is not refundable, allows you to claim between 20% and 35% of child care costs. But you can only apply the appropriate percentage to child care fees of up to $3,000 for one qualifying child, or up to $6,000 for two or more qualifying children.

Is your head spinning yet? Yeah, this credit will do that to you.

Here’s an example to show you how to figure the credit. Let’s say you have two kids and spend $10,000 a year on child care. Since your maximum claiming limit, if you will, for child care is $6,000, forget about the extra $4,000 you spent.

Now, let’s say you earn over $43,000 a year. In that case, you can only claim 20% of $6,000, or $1,200. If you were a much lower earner with an income of under $15,000, you’d be allowed to claim 35% of $6,000, or $2,100. Then again, if you were earning under $15,000, it’s unlikely that you’d be able to afford $6,000 in child care expenses.

At first, the Child and Dependent Care Credit might seem like a bit of a dud since it only lets you write off a limited portion of your total expenses. But remember, if you pay for child care, you can also contribute to a dependent care FSA, which allows you to allocate up to $5,000 (or $2,500 if married and filing separately) in pre-tax dollars for child care expenses.

Now remember, that $5,000 isn’t a credit, so it doesn’t shave $5,000 off of your tax bill. But if you’re in the 22% tax bracket, it saves you $1,100 by exempting that much income from taxes.

3. The Earned Income Tax Credit

The Earned Income Tax Credit (EITC) is a unique credit in that it’s fully refundable. And while you don’t have to be a parent to claim it, you may be more likely to qualify for it if you have kids.

Eligibility for the credit depends on your income and the number of qualifying children in your household. You can consult this table to see if you qualify and what the credit might be worth to you.

Unfortunately, roughly 20% of eligible tax filers miss out on the EITC every year. So it pays to run the numbers (ideally, using tax software) to see if you’re eligible.

Being a parent can be tough from a financial standpoint. Thankfully, the IRS throws parents a bone in the form of these tax credits, so it pays to see if you qualify for any of them.

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.The Motley Fool has a disclosure policy.

“}]] Read More 

Dollar Tree announced plans to shut down almost 1 in 8 Family Dollar stores. Find out why the closures could be both good and bad for consumers. [[{“value”:”

Dollar Tree’s decision to close almost 1,000 Family Dollar stores is somewhat of a mixed bag for consumers. On one hand, it could mean fewer affordable shopping options for people who have come to rely on their local Family Dollar. On the other, everything-must-go sales will push Family Dollar’s already low prices even lower.

In its latest earnings call, Dollar Tree leadership shared plans to sell off stock at reduced prices in affected stores. Jeff Davis, Chief Financial Officer, said, “We’ll run a series of different discounts to help move through the inventory.”

Dollar Tree’s Family Dollar closures

Dollar Tree bought Family Dollar back in 2015, but the brand has struggled. Stories of rat infestations, dirty stores, crime, and public safety issues have not helped.

Plus, budget-conscious shoppers now have more options. That’s due to an increase in online shopping as well as the growth of other low-cost supermarkets like Aldi and Trader Joe’s. Depending on where consumers live, they can save money on groceries and still shop in a place that’s clean, well-lit, and pleasant.

If you’re wondering which Family Dollars will close, that hasn’t been announced yet. What we do know is that 600 of the 8,000-plus Family Dollar stores will shut before the end of 2024. A further 370 Family Dollars and 30 Dollar Trees are slated for closure in the following years. It’s worth keeping an eye on local news and social media groups to see if a Family Dollar near you might close. Closing-down sales can be a great place to find bargains.

How to make the most of liquidation sales

If you are trying to make the most of every dollar in your bank account, you likely always have an ear to the ground for sales and special offers. After all, nothing beats getting a good deal on something you’d already planned to buy.

That said, when stores are closing, it’s worth being picky. There may be a reason these products haven’t already sold, so check the packaging carefully and don’t buy anything that’s dented or damaged. If your local Family Dollar wants to shift its remaining stock, here are some other ways to make the most of any liquidation sales.

1. Check the prices

Don’t assume you’re getting the lowest prices just because of the sale. Use price comparison apps and check costs online. Dollar stores sometimes sell products that are different weights and sizes from other stores, so work out the price per ounce to compare like with like.

2. Check the sell-by dates

It’s always good to check sell-by dates in dollar stores. Limited staff numbers mean there are fewer people to keep track of what’s on the shelves. This is even more so in a closing-down sale. The store may have restocked less often in the run-up to the closure. Plus, if something’s bad and you want to get your money back, it will be harder to do if the store has shut down.

3. Plan your shopping

It’s easy to get caught up in sales, but ultimately a bargain is only a personal finance win if it is an item you will use — ideally, something you actually need. If it sits in the back of a cupboard, or the food goes bad before you eat it, that’s money you’ve thrown away.

Stop by the store before the sale starts to get a sense of what products you might want to buy, and even make a list. Lists are a great way to avoid impulse buying, as is giving yourself time to think over your purchases.

4. Use up any gift cards

If you have a Family Dollar gift card, use it before the store closes. Sure, Family Dollar is not closing down completely, so there will be other stores you can spend it in. But it may be more of a hassle than spending it locally. Similarly, check to see if you have any Family Dollar Smart Coupons to use while you still have the chance.

Bottom line

The closure of almost 1 in 8 Family Dollar stores could have a big impact on local communities. If you’re worried you’ll be left without access to affordable groceries, see whether you can get deliveries from other supermarkets by shopping online. And in the meantime, see if you can make the most of any liquidation bargains.

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.Emma Newbery has positions in Trader Joe. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.

“}]] Read More