Money Management

The decision to close almost 1,000 Family Dollar stores could leave some families with limited grocery options. Here’s how to cut your food costs, wherever you live. [[{“value”:”

Dollar Tree just announced plans to shut 1,000 stores. The majority of the closures will be Family Dollar stores, with 600 slated for closure before the end of the year. Another 370 Family Dollar stores and 30 Dollar Tree stores will close in the following years.

This is worrying news for shoppers who now rely on Family Dollar for their grocery shopping. The fear is that the closures could leave a void and increase food insecurity in some parts of the country.

Dollar stores and food deserts

Dollar stores like Dollar Tree, which owns Family Dollar, have expanded rapidly in recent years. Some argue that it’s given customers easy access to rock-bottom prices at a time of high inflation. But there’s another side to dollar stores. A study by the University of Toronto and UCLA Anderson showed that independent grocers often close after a dollar store opens nearby.

There’s also a steep decline in the amount of fresh produce people buy when dollar stores are in the mix. Plus, they don’t always cost less. Last year we compared prices in Dollar General and Walmart. The dollar store had a slight edge overall, but several products were cheaper at Walmart.

Moreover, research suggests that dollar stores can exacerbate so-called “food deserts” — areas where it’s hard to access affordable, healthy food. The trouble is that dollar stores often push out smaller community grocers. If those dollar stores then go on to shutter their doors, as is the case with many Family Dollars, local communities will have even fewer places to shop.

Stuck in a food desert? Here’s what you can do

Unfortunately, people who live in low-income areas often pay more for food, particularly fruit and vegetables. One reason is that there are more supermarkets in wealthier areas, giving consumers more choices. Another is that transportation is harder when you have less money in your bank account.

If you find it hard to stretch your food budget and access affordable healthy food, here are four personal finance moves you might make.

1. Shop online

Grocery delivery has skyrocketed since the start of the pandemic, which is a game-changer for anyone who can’t easily get to the store. See whether any low-cost supermarkets will deliver to your home. Brookings research shows that 90% of people living in food deserts are now covered by at least one delivery service.

Many online stores, including Aldi, Walmart, Target, and Amazon accept SNAP payments via EBT cards. You’ll likely have to also use a credit card or debit card to pay delivery costs and other fees. Find out how much the delivery will cost and if you’re using services like Instacart or DoorDash, watch out for price markups.

2. Make every supermarket trip or delivery count

If reaching the supermarket is difficult, try to make fewer trips and use them to stock up on food that won’t go bad. Look to buy things like rice, pasta, beans, and canned goods in bulk. And stock your freezer with frozen vegetables so you’ve got healthy options on hand. Arm yourself with a list to make sure you don’t forget anything and use cash back apps to make your money go a little further.

I do a big online delivery order once a month for all my staples. It saves me time, and means I’m not paying for multiple deliveries or trips to the store. Plus, buying in bulk is another great way to cut costs.

3. Try local farmers markets

Farmers markets are not always cheaper than supermarkets, but they can be, especially if you look for seasonal produce. In some states, certain farmers markets will not only accept SNAP benefit payments, but double the food you get for every SNAP dollar spent.

It’s also worth asking traders for what’s known as “seconds.” Seconds may be slightly discolored or misshapen, which makes them harder to sell. You might need to use the produce a bit sooner or cut off any bad spots. But they are usually just as tasty and nobody will notice if you’re making them into soups, sauces, or smoothies.

4. Consider a community garden

If you have a green thumb, one way to get low-cost fresh produce is to grow your own. The growth in community gardens means you don’t have to go it alone, either. Check out the American Community Gardens Association website or use social media to connect with projects near you. If you’re a SNAP recipient, it’s worth knowing that SNAP benefits can be used to pay for seeds.

If you can’t find an urban farming group near you, look online for resources on how to start one. It isn’t a short-term solution, but it can be powerful. For example, Detroit has become well known for its projects to reclaim urban spaces and use them to grow food. Yes Magazine says there are now over 1,400 community gardens and farms in the city. These activities can help communities become more resilient and less dependent on supermarket chains.

Bottom line

The closure of almost 1,000 Family Dollar stores may come as a blow to communities who’d been relying on it for groceries. However, the growth in online shopping means there may well be low-cost alternatives that deliver to your doorstep. And perhaps the closures will act as a stimulus for farmers markets and local urban farming projects.

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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.
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Some simple changes to my budget have already reduced my expenses this year. See what I’ve done and if you can do the same. [[{“value”:”

Cutting expenses isn’t always easy — especially if you’re already pretty careful about where your money goes. But despite the fact that I’ve been living within my means for a long time, I was still able to reduce my spending already this year so I can put more money into my savings account for short- and long-term goals.

There were three really simple moves I’ve made that won’t impact my life much and that should leave me with lower credit card bills for the foreseeable future. Here’s what I did.

1. Canceled a streaming service

I routinely audit my subscriptions to make sure I’m not paying for any that don’t make sense to me. When I did that this year, I realized I hadn’t used one of my streaming services for two months. I don’t want to pay for something I’m not using, so I canceled it immediately, saving me $17.99 per month. If I want to resubscribe, I can of course do that at any time, so this was an easy call.

Consumers waste an average of $25.34 on unused subscriptions each month, which is just an unacceptable waste of hard-earned cash. You should take a look at your credit card bills and checking account statements to see what you’re paying for. If you aren’t using all of your subscriptions regularly, cancel them ruthlessly. If you don’t miss them, you’ll end up with extra funds — and if you do, you can just sign up again.

2. Sealed up some air leaks in my house

Did you know that between $200 and $400 per year in energy costs is wasted money caused by drafts, air leaks, and old heating and cooling systems? When I found this out recently, it motivated me to take a look at my own home.

My HVAC system isn’t too old, but as my house has settled over time, I realized I had some pretty big air gaps around doorways and windows. A quick trip to the hardware store, a little bit of caulk, and some extra weather stripping allowed me to seal those up with about an hour’s worth of work (after watching a quick YouTube guide, as we’re not very handy here).

While it’s hard to tell the exact impact on my electric bill because other factors (like the weather) impact it, it does seem to be a little bit lower than it normally is at this time of year after we’ve made the change.

3. Shopped around for insurance

Finally, the last big step I took was to shop around and compare insurance costs at the start of the year. I do this every year, because I know insurers tend to penalize loyal customers with higher rates.

It turned out most of my policies were still the most affordable options, but one add-on jewelry policy that covers my engagement ring could be purchased cheaper elsewhere. I made the switch, reducing my premiums by around $45 annually. Not bad for a few minutes on the phone.

Taking all of these steps is something anyone can do, and they provide an easy way to reduce your ongoing monthly expenses without changing your lifestyle. Give them a try today to see if you can cut your own costs and improve your personal finances.

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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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The Capital One/Discover merger could bring big changes to credit cards. See how more competition against Visa and Mastercard is good for your wallet. [[{“value”:”

When Capital One announced in February 2024 that it is buying Discover® for $35.3 billion, many credit card customers started to ask “what’s in it for me?” A lot of the details of the Capital One/Discover merger are rather technical and obscure, and related to behind-the-scenes functions of the banking system. But this big business deal could have some surprising benefits for average credit card customers.

No one knows exactly what will happen with the future of Capital One and Discover credit cards and other financial products. Capital One has said that it intends to keep the Discover brand and work more closely with merchants (retailers and restaurants) via its newly purchased Discover payment network. Don’t expect any big changes overnight, but there could be some good deals coming for credit card customers because of this merger.

Let’s look at a few perks of the Capital One/Discover merger and how it might help you get a better experience with credit cards.

1. It might stop Congress from killing credit card rewards

Congress is considering new legislation called the Credit Card Competition Act (CCCA). The goal of this bill is to reduce credit card swipe fees by requiring credit card companies to use a wider range of payment networks — not just the biggest ones, Visa and Mastercard.

But critics of the CCCA have warned that, by driving down credit card transaction fees, it could mean the end of credit card rewards. If credit card companies lose some of that financial flexibility that comes from transaction fees, they likely would not be able to offer such a wide range of reward points, bonus miles, and other perks.

By buying Discover, Capital One is also getting Discover’s payment network. This would give Capital One a powerful tool to use in competing against Visa and Mastercard. The goals of the CCCA (“more competition for Visa and Mastercard”) could be accomplished by the Capital One/Discover merger. And unlike the CCCA, Capital One buying Discover will not bring about the end of the world of rewards credit cards as we know it.

2. It might bring new benefits to Discover (and Capital One) customers

Sometimes when companies merge, they try to find “synergies,” or new ways of doing things that bring out the best aspects of both businesses. No one knows exactly when (or how) Capital One might change its lineup of cards, but here are a few ideas.

Discover card rewards will likely stay the same…or get better

Discover credit cards are known for generous cash back rewards and quarterly bonus categories. Since Capital One says that it’s keeping the Discover brand, there’s no reason to think that your Discover card will change anytime soon.

But if your Discover card does change as a result of this deal, it might be for the better. For example, what if Capital One decides to offer its Capital One Venture miles as another rewards option for all Discover card customers, as well as the usual Discover cash back?

Capital One cards could become more “Discover-like”

By buying the Discover payment network, Capital One could bring changes not just to credit cards, but to debit cards. Discover’s debit cards offer generous cash back rewards. What if Capital One — after achieving cost savings and earning more money from transaction fees — could offer that same style of cash back (or other rewards) on Capital One debit cards?

If you’re a current customer of Capital One or Discover, don’t worry — you don’t have to do anything as a result of this business deal. It might be awhile before this deal is “official,” and even longer after that before any changes occur to your card. But don’t assume that your card is going to change for the worse. By buying Discover, Capital One is likely going to try to offer better deals to both brands’ customers and cardholders.

3. It might drive other credit card companies to offer better deals

Another advantage of buying Discover’s payment network is that Capital One will now be able to get a better bargain with Visa and Mastercard for its credit card payment fees on those networks. This could lead to Capital One customers getting slightly better perks or rewards from their Capital One credit cards.

Better deals for Capital One customers could also lead to better deals for customers of other credit card companies. If Capital One starts offering better reward bonus points, cash back, or interesting new experiences and loyalty programs from merchant partners, other credit card companies will likely try to compete and match those offers.

Bottom line

The Capital One/Discover merger still needs federal regulatory approval, and it’s not a done deal yet. The FTC could block the deal if it feels that the post-acquisition company would be too big, and bad for consumers.

But based on the Credit Card Competition Act, some powerful members of Congress want to create more competition for Visa and Mastercard. Capital One’s purchase of Discover would help accomplish that goal. This merger could bring a new kind of competition to the credit card industry — with potentially more creative credit card offers and better benefits for customers.

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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.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Mastercard and Visa. The Motley Fool recommends Discover Financial Services and recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.

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I’ve made my share of Costco mistakes in the past. Read on for three I’ve thankfully since learned from. [[{“value”:”

Shopping at Costco is something I do pretty much on a weekly basis these days. And as such, I’ve learned how to approach my shopping savvily.

But that doesn’t mean I’ve never fallen victim to a Costco fail. Here are a few personal finance mistakes I’ve made in the past that I now know not to repeat.

1. Throwing out spoiled food instead of taking it back

One of the benefits of shopping at Costco is that the store has a very generous return policy. You can take back most items at any time for a full refund, with limited exceptions (electronics, for example, must be returned within 90 days).

Costco will also take back items that have quality issues — such as food that spoils ahead of its expiration date. But years ago, I neglected to take advantage of that return policy.

I’d purchased a premade fruit platter that went bad a good 36 hours before its sell-by date. Not wanting rotting fruit in my fridge, I dumped it and then realized my mistake. I lost out financially because I could’ve easily gotten my money back.

These days, if I’m in a situation where I have visibly spoiled food on my hands that was purchased from Costco, if I can’t make it back to the store right away, I’ll take a picture showing that it went bad ahead of its expiration date and take that to customer service instead of the item itself. I did this recently with milk that spoiled and got clumpy several days before its sell-by date so I didn’t have to store it in my fridge.

2. Impulse-buying cheesecake that made me sick

A few years ago, Costco had a red velvet Junior’s cheesecake available for an unbelievable price. I don’t remember what I paid for it, but it was considerably less than the regular price of that item.

The problem, though, is that I bought it to largely eat myself. My kids don’t like cheesecake and my husband happened to be training for an athletic event at the time and wasn’t really interested in eating it.

Now, I’ve found that many of Costco’s desserts freeze really well. But cheesecake isn’t one of them. You can freeze it, but it’s not as good and creamy after being defrosted.

As such, I tried to consume an entire cheesecake myself within a few days…and failed. I won’t go into the details, but let’s just say that eating even a single large slice several days in a row led to a world of digestive upheaval. (And no, I’m not lactose intolerant. This was just some really rich cheesecake.)

Nowadays, I have a rule that I’ll only buy large-sized Costco desserts if I’m feeding a crowd. The only exception is Costco’s muffins. Though you have to buy 12 at a time, those freeze beautifully, and every single member of my household enjoys them.

3. Not ordering a sheet cake on time

Costco’s legendary sheet cakes cost $24.99 these days, but years ago, they were even cheaper. Given that they can easily feed a few dozen people, for me, they were my go-to option any time I was hosting a birthday party for my kids.

But Costco’s sheet cake ordering system is a bit archaic. You can’t place orders by phone or online. Instead, you have to physically go to a Costco store at least 48 hours before you want to pick up your cake, write down your order on a card, and drop it in a box outside the bakery. A while back, I forgot about that rule and tried to buy my cake on the same day, not realizing that I couldn’t.

To be clear, my mistake was that I thought I could find a non-customized sheet cake at the last minute. But you generally cannot buy a sheet cake at all if you don’t order it in advance. Instead, I had to rack up a larger credit card tab buying several birthday cakes at my regular supermarket to accommodate our guests.

Because I’m now super familiar with Costco’s rules — and also, my own digestive limitations — I’m less likely to repeat these specific mistakes. But I’m sharing them with you so that you can avoid them as well.

If you ever find yourself with spoiled food, know that Costco will make it right, and resist the urge to dump it. Also, resist the urge to bring home desserts no single human should attempt to consume solo, and know the system for ordering sheet cakes if you’re looking to feed a crowd.

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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.Maurie Backman 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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Money market accounts combine features of checking accounts with high APYs. Find out their advantages over CDs here. [[{“value”:”

Perhaps no deposit account has had such a massive resurgence over the last year as certificates of deposit (CDs). It’s not hard to understand why. The best CD rates are still hovering around 5.5%, with a variety of promotional terms to choose from. Even no-penalty CDs, which typically don’t have favorable rates, are ranking high on the best-of charts, with several products on the financial platform Raisin paying out above 5%.

Regardless of their superb annual percentage yields (APYs), CDs aren’t right for everyone, especially not for those who need flexible access to money. Thankfully, you don’t need a CD to take advantage of today’s high interest rates. In fact, for some people, a money market account might be the better option. Here’s why.

1. Competitive rates

Yes, gasp. Many of today’s best money market accounts have APYs that are on par with the best CDs.

Of course, you’ll find many, many more CDs with competitive rates than money market accounts. Plus, CDs lock in those rates for the length of their term, while money market accounts don’t offer such guarantees. But if you don’t want a CD, it’s good to know a money market account can still offer you a great rate of return.

2. Easier access to funds

Money market accounts make it easy to withdraw money. For one, they often come with check-writing privileges, which allows you to pay for purchases directly with checks. Many also let you link a debit card to your account, giving you another way to access your savings account. This easy access to money is why money market accounts are often compared to checking accounts.

In contrast, CDs don’t have the luxury of partial withdrawals. To access your money, you’ll need to liquidate your account, which also involves paying an early withdrawal penalty. While some no-penalty CDs don’t levy the fee for withdrawing money, you’ll still need to withdraw all your money and close your account.

3. No early withdrawal penalties

Money market accounts don’t charge fees or penalties for withdrawing funds. While some do have restrictions on how many withdrawals you can make each month, you still have greater control over your savings.

Of course, this is the main problem with CDs. Unlike money market accounts, you will pay a penalty to access money in your CD account. The penalty depends on your term, but often it’s equal to several months’ interest. For example, a 1-year CD may impose a penalty worth 90 days of interest, while a 3-year CD could charge a penalty worth 12 months of interest.

What’s worse is that this penalty is imposed even if you haven’t earned enough interest to cover it. For instance, let’s say you deposit $10,000 into a 6-month CD with a 5.5% APY and an early withdrawal penalty worth three months of interest. In this case, the penalty is worth $137.50. After a month, your CD has earned $45.83, but you decide to break your contract. You’ll still pay $137.50, which means the CD provider will take about $91.67 from your original $10,000. You just lost money on a safe bank product designed to help you earn!

Which is better for your investment in 2024?

For all of their advantages over CDs, money market accounts have one major weakness: They won’t freeze today’s high interest rates. Instead, they have variable APYs, which can fluctuate as market conditions change.

That’s why, if you have a longer time horizon, you might be better off getting a CD in 2024. Sure, you won’t have easy access to your money. But in exchange for flexibility, you can lock in a high APY for a longer period. Even depositing some money in a CD can go a long way in helping you maximize your earnings, especially since high APYs might not be here much longer.

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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