Money Management

Don’t put your old electronics in the landfill! These companies can give you cash, credit, or gift cards for recycling your old phones and other devices. [[{“value”:”

When you stop and think about it, the modern era of smartphones is really an amazing time to be alive. We are all walking around with supercomputers in our pockets. Computing power is cheaper than ever before. Even during the past few years of high inflation, prices of many electronic devices have gone down. But one drawback of cheap electronics is: lots of electronic waste!

Also called “e-waste,” this vast pile of old computers, laptops, and “planned obsolescence” phones causes big damage to the environment. According to the World Health Organization (WHO), as of 2019, only 17.4% of all electronic waste was formally recycled. When electronic waste gets disposed of in the wrong ways — like being dumped into landfills or burned — it can release toxic substances into the environment, damaging human health. That’s because many consumer electronics devices contain heavy metals and toxic chemicals, like lead and mercury.

Electronic waste needs to be carefully handled and correctly recycled. Don’t just put it in the trash bin to go to the landfill! Every time you upgrade your smartphone or buy a new laptop, TV, or tablet, you should make the effort to properly recycle the old model. Electronics recycling is important to protect the planet and it can even put some extra “green” in your wallet.

Here are a few of the best places to recycle your electronics — for money, gift cards, or just the warm happy feeling of being a good citizen.

1. Apple, Amazon, or Android device manufacturers

If you have an old iPhone or Android phone, Amazon device, or any other electronic device like a tablet or laptop, you might want to start by checking with the manufacturer for trade-in values. Apple offers trade-in values of $30-$620 for used iPhones, and you can use the trade-in as a credit toward purchase of a new Apple product, or an Apple gift card.

Amazon’s trade-in program will give you an Amazon gift card and a discount of up to 20% off your next Amazon device when you trade in your old electronics. Samsung also offers a similar trade-in program that gives you credit for trading in your old device when you purchase a new Samsung device.

The exact trade-in value you get will depend on the age and condition of your used device. Even if your old phone or laptop is in less-than-perfect condition, don’t assume that it’s worthless. Device manufacturers might give you enough credit for your used device to make your next purchase a little more affordable.

How much I could get for my old phone: I did a test run to see how much money I could get for my iPhone 11, and Apple offered me: $180 of credit toward a new Apple purchase, or a $165 Apple gift card. Amazon offered me $161 of trade-in value.

2. Sellcell

If you’d rather get cash for your old phone instead of company credit, try Sellcell (sellcell.com). This website compiles offers from more than 40 used electronics buyback companies and promises to give you “the most cash for your phone guaranteed.” Phones aren’t the only device that you can sell on Sellcell. The site also gives you cash offers for a wide range of used electronics, like tablets, gaming consoles, smartwatches, and more.

How much I could get for my old phone: Sellcell found a few cash offers for my old iPhone 11, and the top price was $194.75.

3. GadgetGone

GadgetGone (gadgetgone.com) is an electronics recycling company that gives you an instant cash offer for your old devices. It even pays money for some broken devices. GadgetGone says that if you get a better offer for your device from other buyback companies, it will beat their prices. The company is accredited by the Better Business Bureau and has strong customer reviews, with 4.5 out of 5 stars on Trustpilot.

How much I could get for my old phone: Assuming that my old iPhone 11 is still in “flawless” condition (and it probably is; I never take it out of its Otterbox protective covering), GadgetGone made me an offer of $166.

4. Cellphone service carriers

If you love your cellphone provider and you like to buy new smartphones while signing up for a new mobile phone contract, you might want to try trading in your old phone with your phone company. AT&T, T-Mobile, and Verizon have electronics recycling trade-in programs where you can get a discount on a new phone (or get company credit or a gift card) by trading in your old device.

How much I could get for my old phone: I checked with T-Mobile, and its trade-in program offered me $95 of trade-in value for my old iPhone 11.

5. Retailers like Best Buy and Target

Major retailers like Best Buy, Target, and Walmart will give you a store gift card in exchange for recycling electronic devices. Exact amount of the gift card depends on the device’s condition, age, and overall value on the second-hand market. You can get an instant quote online and take your electronics devices to a local store for trade-in.

How much I could get for my old phone: Best Buy’s website offered me a $90 store gift card for my old iPhone 11.

Bottom line

Your old smartphones, laptops, and other electronic devices might be worth more money than you think. Don’t put your old electronics in the trash — trade them in for cash, credit, or gift cards, and let them get sold to a new owner or recycled properly to protect the environment. Electronics recycling can be a win-win for the planet and your personal finances.

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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.Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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, Apple, Best Buy, Target, Visa, and Walmart. The Motley Fool has a disclosure policy.

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TikTok has become a surprisingly popular source of financial advice, but it’s not all good. Check out five signs a TikToker isn’t worth listening to. [[{“value”:”

Search “FinTok” on the popular social media site TikTok and you’ll find over 101,000 results from influencers all over the world who claim to teach you the secrets of managing money and growing your wealth in bite-size video segments. It’s quickly become one of the most popular sources of financial advice, especially among Gen Z.

But the old adage “Don’t believe everything you hear” rings true here. If the TikToker you’re following does any of the following five things, you may not want to rely upon them for financial advice.

1. Making unrealistic promises or guarantees

Some TikTokers try to draw in views by promising that they can grow your wealth quickly or guarantee you a certain amount of money. But be wary of these claims. Everyone’s financial situation is different, and guarantees are hard to come by, especially when you’re talking about investing.

Remember, TikTokers earn money through ad revenue, so a higher view count means a bigger payday for them. And “This Investment Will Guarantee You $1 Million by 2025” is a much catchier headline than “This Investment Could Help You Grow Your Wealth Slowly But Steadily Over 30 Years.” But that doesn’t mean what they’re saying is true.

2. Heavily pushing specific products

Some TikTokers swear by a specific product, whether it’s a credit card, a bank account, or a budgeting app. It’s possible that some of them actually use the product and really like it. But if they find a way to bring it up in nearly every video or fail to mention any other competing products, you should be careful.

It’s possible that the TikToker is being paid to endorse this product. They might be required to mention it a certain number of times or talk up certain features as part of their deal. It’s not always easy to know if this is the case for a specific TikToker as they may not always disclose their endorsement deals. But if you even think it’s a possibility, it’s best to research competing products on your own rather than taking the TikToker’s word.

3. Fearmongering

Fearmongering is not exclusive to TikTok or financial influencers, but it can be especially dangerous here. It’s a technique often used to create a sense of urgency to get people to take a certain action. This could be watching another video to learn how to solve a problem or buying a certain product.

Making hasty decisions is rarely helpful when managing your money, so it’s worth taking a step back if you feel your blood pressure rising while listening to a FinTok influencer. Get a second opinion — preferably from someone with a financial background — before making any moves.

4. Relying heavily on personal anecdotes

Many TikTok money experts lack relevant degrees or credentials, so they draw instead upon personal experience — their own and others. Some have actually accomplished really impressive things, like paying off tens of thousands of dollars in credit card debt. But that doesn’t make them an expert in all things personal finance.

It doesn’t even mean their strategy will work for everyone. For example, a TikToker may have paid off their credit card debt by reducing their spending and transferring their balance to a credit card with a 0% intro APR. But that might not be an option for someone living paycheck to paycheck with a poor credit score.

5. Overgeneralizing

The most helpful financial advice is often nuanced and takes into account the individual’s personal situation. But you won’t find a lot of that on TikTok. For one, as discussed above, few TikTokers lack any real background in finance and may not have the knowledge to provide that sort of advice.

TikTok also doesn’t lend itself to that sort of personalized information. The goal is to get a lot of people to watch your videos, and that’s easier to do when focusing on broader topics. This doesn’t mean all general financial advice on TikTok is bad. It just means that it might not be adequate on its own. Diving deeper and getting more personalized advice can lead to better outcomes.

TikTok can be a great starting point for learning about personal finance and investing, but be aware of its limitations. Educate yourself using a variety of sources before making any major moves with your money.

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Filing your taxes is enough of a pain without paying for it. If you fall into any of these six groups, you might be able to file taxes for free this year. [[{“value”:”

You know what’s worse than filing your taxes? Paying to file your taxes. Yet millions of Americans have no choice but to do it, whether they’re filing on their own or using a tax preparer.

Free federal tax filing is possible for some, though. If you fall into one of the following six groups, you might be able to get your taxes out of the way without spending a dime.

1. Low-income households

The IRS Free File program enables low-income households to file basic tax returns at no charge. Some popular online tax software, like TaxAct and TaxSlayer, are partners in this program, and you can use their tools to help you file your return for free. Some also enable you to file free state tax returns if you meet the income requirements.

Eligibility varies by provider. If your household has an adjusted gross income (AGI) of $79,000 or less, you should be able to take advantage of this program. The IRS’s online tool to find the best Free File trusted partner is a good place to begin if you don’t already have tax software in mind.

Those with low incomes who want personalized tax assistance can get help through the Volunteer Income Tax Assistance (VITA) program. This is for individuals who make about $64,000 or less. Tax preparers typically set up shop at community centers to assist qualifying taxpayers with their returns. You can locate the nearest VITA location to you with the IRS’s locator tool. It will also let you know if you have to make an appointment before arriving.

2. Individuals with disabilities

The VITA program discussed above also assists individuals with disabilities in filing their tax returns. Again, these volunteers are typically only there to assist with filing basic tax returns. Those who have more complicated returns — perhaps they own their own business or have other uncommon sources of income — may need to hire a tax professional or use a paid tax filing software that can help them file their returns correctly.

3. Those who speak limited English

The VITA program helps those who speak limited English, too. But keep in mind, this program is run by volunteers in the area, so there’s no guarantee that someone in that area will speak your language. However, if you use the VITA locator tool linked above, you can see which language(s) the volunteers speak.

4. Adults 60 and older

The Tax Counseling for the Elderly (TCE) program is similar to VITA but specializes in the needs of adults 60 and older. Many of the volunteers it employs have expertise in senior-specific issues, like pensions and retirement income. Those seeking assistance through this program can find TCE volunteers using the VITA locator tool linked above.

5. Military members

The Department of Defense offers MilTax to help military members file their tax returns and get military-specific tax advice for free. Many popular tax software also offer free filing to U.S. service members. But it’s important to read the fine print to understand what’s included. Some military members may still be required to pay if they have complicated tax returns.

6. Those who live in states participating in the IRS’s Direct File pilot program

The IRS is currently working on a Direct File program that would enable Americans to file their taxes for free. Currently, it’s only available to those in the following states:

ArizonaCaliforniaFloridaMassachusettsNevadaNew HampshireNew YorkSouth DakotaTennesseeTexasWashingtonWyoming

You can use this program to file simple tax returns and claim some common tax credits and deductions, including the Earned Income Tax Credit and the Child Tax Credit. But again, those with more complicated returns will probably need to pay to file their 2023 taxes.

It’s worth exploring the above programs if you qualify for any of them. But it’s important to be aware of their limitations. You want your taxes done correctly, and sometimes a free service just isn’t enough.

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Americans saved an average of $6,138.06 in 2023. Read on to see which age group surpassed that total in a really big way. [[{“value”:”

It would be fair to say that 2023 wasn’t exactly an easy year to save money. Although inflation wasn’t quite as rampant in 2023 as it was a year prior, living costs were still elevated. And many Americans no doubt struggled financially due to higher food, utility, and housing costs.

Still, the average U.S. adult managed to save a rather impressive $6,138.06 last year, according to New York Life’s latest Wealth Watch survey. But of all age groups, millennials managed to save the most.

Leading the pack

Millennial savers socked away an average of $9,299.45 in 2023. By comparison, here’s what other generations saved:

Gen Zers: $6,440.67Gen Xers: $5,132.20Baby boomers: $4,059.72

The fact that millennials led the pack on the savings front is a little surprising, mostly because many Gen Xers are further along in their careers and potentially in a position to earn more money. Also, millennials, by nature, might have higher child care costs to grapple with than Gen Xers, since their children are likely to be younger.

That said, it’s not so surprising that millennials’ savings outpaced those of Gen Zers, who are younger and may have less workplace experience. The typical Gen Zer might earn a considerably lower wage than the typical millennial.

It’s also not a shock that millennials outpaced baby boomers in the savings department. Many boomers are already of retirement age and are either partially or fully done with work. Plus, some boomers may be in a position where they’re happy with the savings they’ve built up and would rather use their money to help out younger family members.

How to boost your savings this year

No matter what generation you fall into, you may be eager to give your savings a nice lift in 2024. To achieve that goal, here are some steps you can take:

Pay yourself first. Transfer money out of your checking account after each paycheck arrives and put it directly into your savings. That way, you won’t be tempted to spend it. You can also put this process on autopilot.Don’t spend money on interest. Any dollar you pay to a credit card company is a dollar you can’t put in your own bank account. Track your credit card spending carefully during the month to ensure you can pay your balances in full once they come due.Join the gig economy. There’s plenty of opportunity to pick up a side job and give your income a boost. That’s an easy way to pave the road to more savings.

Even if you didn’t manage to save any money in 2023, you have the majority of 2024 ahead of you. A few small changes could lead to a higher savings balance by the end of the year. That way, when next year’s data comes out, you might be in a position to take a look at the average amount saved in 2024 and say, “Well, what do you know? I did better.”

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Many parents are spending nearly half of their savings to pay for child care. But this is a risky money move. Find out what parents might want to do instead. [[{“value”:”

The cost of child care is a stressor for many parents. Many families are already struggling financially because of rising living costs. Once you add in this additional expense, it can make an already stressful situation more challenging. A recent study found that 35% of parents are dipping into their savings to afford this cost. Find out why that’s the case.

Parents are spending 24% of their income on child care

Finding affordable child care in the United States can be a struggle. While some low-cost options exist, these child care solutions often have a long waitlist. Delaying getting care may be impossible. Many families don’t have the support of loved ones to help watch their kids while they work, so child care expenses make up a big chunk of their monthly expenses.

According to the Care.com “2024 Cost of Care Report,” study respondents spend nearly one-fourth of their household income on child care. And 60% of parents are spending 20% or more. Considering so many parents are spending a sizable portion of their income on this expense, it’s little surprise that some have been dipping into their savings to afford it.

Many parents are depleting their savings

The same study found that 35% of parents have to use their income and savings to afford child care costs. Of these parents, 42% are spending, on average, up to nearly half of their savings on this necessary expense. That’s a concerning statistic.

Many families have an emergency savings fund so they have extra money when needed. This money should be used when necessary, but some parents could quickly deplete their savings if they continue to rely on savings to help cover some of the cost of child care. Families could soon face even more financial stress once they no longer have savings in the bank.

If you’re a parent paying your child care bill partially with money from your savings, consider exploring ways to reduce care costs. If you can make some adjustments, you can avoid draining your savings account balance.

Three ways to trim child care costs

If you’re currently paying for child care and are looking for a way to make this necessary expense more affordable, here are some tips that may help.

1. Share child care costs with other parents

Some families share a sitter to keep care costs down. It may be worthwhile to see if there are other families in your community who are interested in hiring a shared nanny. If you can find a great caretaker, this could be an excellent alternative to using traditional child care providers.

2. Alter your work schedule or switch jobs

Another way to trim these costs is to alter your work schedule or change jobs. If two parents work similar hours, they will have a greater need for child care solutions. But if one parent can alter their schedule to work different times or days, it may reduce some need for care because the other parent will be available instead. If a schedule change isn’t possible, you may want to explore getting a higher-paying job so you feel more comfortable paying this expense.

3. Explore more affordable nonprofit care centers

You may save some money on care costs by enrolling your child in a nonprofit child care center. Research programs in your area to see if this is an option. You may need to get on a waitlist for these programs, but if you can get your child enrolled, the savings could add up.

If you’re overwhelmed by the high cost of child care, you’re not alone in having these feelings. Remember that while this expense is high, it’s not a bill you’ll be paying forever.

You can reduce or eliminate this cost once your children are old enough to attend school. For additional money-saving tips, check out our free personal finance resources.

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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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Buying a home could be the biggest financial move you ever make. Read on to learn how to make your dream home a reality with smart choices. [[{“value”:”

Buying a house is a dream for many. It’s like a rite of passage to adulthood, a testament to one’s hard work. But, let’s face it, the road to purchasing your dream home is littered with potential pitfalls. Especially if you’re planning to buy within the next six months, there are certain things you absolutely must not do when in the process of getting a mortgage. These actions can derail your home-buying journey before it even begins.

1. Take on new debt

Imagine this: You’re just a few months away from buying a house and you see a car you love. It’s shiny, it’s new, and it’s calling your name. But wait! Taking on new debt, like a car loan, is akin to walking on thin ice.

Why? Well, mortgage lenders scrutinize your debt-to-income (DTI) ratio when considering your mortgage application. This ratio compares your total monthly debt payments to your monthly income. Buying that car increases your DTI, making lenders nervous. They might think, “If they’re struggling to pay their current debts, how will they handle a mortgage?”

And there’s more. New debts often come with hard inquiries on your credit report. These can ding your credit score, even if it’s just a little. Every point counts when you’re aiming to be eligible for the best mortgage rates.

What to do instead:

Focus on paying down existing debt. It’s like cleaning your room before buying new furniture. Make space for the new, but first tidy up the old.Check your credit report. Make sure there are no errors pulling your score down.

2. Change jobs

Consider this scenario. You’ve been in your current job for a while. It’s steady, but suddenly a new, exciting opportunity pops up. Should you take it? Here’s the thing: Lenders love stability. Your current job is like a cozy, well-known café where everyone knows your order. A new job? That’s an unexplored, fancy restaurant. Might be great, might not.

Lenders look at your employment history as a sign of financial stability. A recent job change, especially to a completely different field or a lower-paying role, can be a red flag. It screams “risk” to lenders.

What to do instead:

Stay put, if possible. If your current job is stable and pays well, it might be wise to stick around until you’ve sealed the deal on your house.Communicate with your lender if a job change is unavoidable. Sometimes, life happens. If you must switch jobs, talk to your lender about how this might impact your mortgage application.

3. Ignore your savings

So, you’ve got a decent income. You’re paying your bills and living comfortably. Saving money? That can wait, right? Wrong. Every penny counts when you’re buying a home. Ignoring your savings is like ignoring a leaky faucet — small at first, but potentially disastrous in the long run. You’ll need money for a down payment, closing costs, moving expenses, and a host of other unforeseen expenses. Skimping on savings today can mean a world of stress tomorrow.

What to do instead:

Automate your savings. Set up a direct transfer to your savings account each payday. It’s like putting on a seatbelt — do it automatically for safety.Cut back on non-essential expenses. Maybe cook at home instead of dining out. Small changes can lead to big savings.

Buying a house in the next six months is an exciting goal, but it requires careful planning and discipline. Avoid taking on new debt, changing jobs impulsively, and neglecting your savings. These steps will help ensure that your dream of homeownership doesn’t turn into a financial nightmare. And be sure to know everything about securing a mortgage so you can be the most prepared. Remember, it’s the small decisions you make today that will pave the way for your big purchase tomorrow.

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