Money Management

There are numerous hidden advantages of daycare for your child’s growth and development and for your wallet. Read on to pick the best child care option for you. [[{“value”:”

As a parent of a five year old, let me tell you, finding the right child care is no walk in the park. It’s a lot — juggling work, keeping the home front running, and making sure your little one is in a safe and nurturing space. I went down the rabbit hole, researching every nook and cranny of child care options based on my personal financial situation.

For child care, the dilemma often boils down to choosing between a private nanny and a daycare center. And although I ended up going with a nanny, daycare centers offer a suite of lesser-known perks worth delving into.

It can be a more affordable option than private nanny care

Cost is a significant factor in child care, and daycare centers often emerge as the more economical choice compared to private nanny care. Although it still costs an average of $321 a week to send a child to daycare, the group setting of daycares allows them to distribute operating costs among several families, leading to more affordable rates per child.

Meanwhile, a nanny costs about $22 an hour. At 40 hours a week, that’s $880 a week. Daycare’s affordability is particularly beneficial for families looking for high-quality care without the hefty price tag of a private nanny. Many daycares also include meals and learning materials in their fees, providing additional savings for parents.

Staff members are often trained in early childhood education

A significant advantage of daycare centers is the professional training of their staff in early childhood education. These aren’t just caregivers; they’re experts in child development, creating environments ripe for learning and growth. They skillfully identify and nurture developmental milestones, offering activities that promote cognitive, social, and physical development.

But it’s not all about the academic side. These educators also create a warm, welcoming atmosphere where kids feel valued and understood. It’s a place where a child’s individuality is recognized and nurtured. This holistic approach to child care is what sets daycare centers apart, offering parents the comfort of knowing their children are in capable and caring hands. It’s an ideal blend of professional expertise and genuine care, ensuring children don’t just grow but thrive.

Daycare centers are licensed and regulated

The licensing and regulation of daycare centers add a layer of trust and security for parents. These standards ensure that children are in a safe, healthy environment that adheres to strict guidelines regarding facility safety, staff qualifications, and care standards. Parents can have peace of mind knowing their child is in a regulated environment that prioritizes their well-being.

Never having to worry about back-up child care

Daycare centers shine when it comes to reliability, a real game-changer for busy parents. Think about it: individual nannies, as great as they can be, sometimes face their own life’s hiccups — needing a day off or dealing with a personal emergency. But daycare centers have a full team ready to go. This means they’re always open during their regular hours, a godsend for working parents who need to pin down their schedules.

And then there’s the whole scramble for back-up child care — practically non-existent with daycares. Unlike the solo nanny route, daycares operate with a team. It’s like having a bench of star players; there’s always someone ready to step in. This cuts down on a ton of stress for parents. Imagine knowing that your child care plan is as solid as a rock, no matter what life throws your way. That’s the daycare difference.

Kids can socialize with other children

Socialization is a critical component of a child’s development, and daycare centers offer a unique environment for this. In these settings, children interact with peers from various backgrounds, learning to navigate social interactions and build relationships.

This experience is invaluable in developing their social skills, emotional intelligence, and understanding of the world around them. It also helps with separation anxiety as they get older, since the kids are used to being out of the home for most of the day.

Longer hours

The extended operating hours of daycare centers are a real lifesaver for parents with demanding jobs. Unlike traditional schools, which stick to the standard 9-to-5 schedule, many daycares offer early drop-offs and late pick-ups. This flexibility is a boon for work hours that don’t fit the typical mold. Whether you’re the one who’s up at the crack of dawn or the one burning the midnight oil, daycare centers adapt to your schedule, not the other way around.

This adaptability is more than just a convenience; it’s a huge stress reliever. Juggling a career and ensuring your little one is in good hands can feel like a tightrope walk. With daycare centers accommodating longer hours, there’s a sense of relief. You don’t have to rush through traffic worrying about pick-up times. Knowing your child is safe, engaged, and well-cared for, even if your meeting runs late is comforting.

For parents trying to make it all work, the benefits of daycare centers are invaluable — and child care becomes one fewer spinning plate to worry about.

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There are many ways to grow your funds this year. Read on to learn about the five best options. [[{“value”:”

It can be tricky to know where the best place to put your money is, especially if you’re new to managing your money, or you’re just earning more this year. There are tons of options, from savings accounts to brokerages, to the underside of your mattress (though, that one’s probably not the best option, if we’re splitting hairs).

To help you start, here are the five best places to put your money in 2024, and why they work.

1. Emergency savings account

There is always a good reason to have an emergency fund: You can’t predict what may happen in the future, and how much that’s going to cost. And if you do encounter an expensive financial need, like a car or home repair, you may have to resort to high-interest debt, increasing those costs even more. So if you don’t have an emergency fund in place, there’s no better time to start one than now.

As a general rule, you should have at least three months’ worth of necessities saved up, but this can range up to 12 months’ worth for those who have less stable incomes. That sum includes rent, utilities, groceries, and minimum debt payments. That way, if something comes up that disrupts your income or budget, you’ll be better prepared to handle it.

2. High-interest debt payoff

Right now, interest rates are especially high. And if you have high-interest debt, like credit cards, you’re probably feeling the sting of those increased rates. So it makes sense to pay those down as much as you can (without sacrificing too much on saving for emergencies) to save on interest.

As rates fall, as they very well could in the future, this may not feel as pressing. But ultimately, high-interest debt can be difficult to pay off and lead to more debt, so it should always be a priority to eliminate that debt as soon as possible.

3. High-rate CDs

On the flip side, high-rate environments provide the opportunity to earn more in interest on bank accounts like CDs. So if you have money that you can part with for several months to a year (or longer), then you’ll be able to lock in the high APYs we’re seeing right now, guaranteeing those returns even if rates fall during the course of your CD.

For example, a 5% APY on a 6-month, $5,000 CD would earn $125 in interest. Just make sure you won’t need that cash before the term ends, otherwise you’ll have to pay an early withdrawal penalty.

4. High-yield checking account

Checking accounts do an important job: They allow you to manage your everyday finances. But that doesn’t mean you shouldn’t expect to earn interest on that account. In fact, if you’re currently using a no- or low-interest checking account, you’re leaving money on the table. Current rates on these accounts can be as high as 5%. So for a $5,000 balance, that would translate to $250 in interest per year.

Of course, rates could shift over time, so that is not guaranteed money. But it’s still going to offer better returns than regular checking accounts, which may not offer interest at all.

5. Tax-advantaged retirement accounts

Whether you’re earning more this year, or you’re breaking into a new career, saving for retirement is always a good idea. And, thanks to the existence of tax-advantaged retirement accounts like 401(k)s and traditional IRAs, you can reduce your taxable income by contributing to those accounts, too. For instance, if you max out your 401(k) contributions — which would be a total of $23,000 for 2024 — and earn $100,000 a year, you’d reduce your taxable income to $77,000 based on that change alone.

Of course, this can be difficult to pull off, depending on your income. So, as a general rule, try to at least get the full match your employer offers, if it offers one. That way, you won’t be losing out on free money for retirement.

If you plan on earning more in retirement, however, you may want to consider using a Roth IRA, which doesn’t impact your current taxes. Instead, that lets you take out that money tax free in retirement. So you may want to split your contributions to access the best mix of tax advantages for your retirement plans.

Managing your finances can be tricky. But, if you take the time to understand how certain accounts work, and pay attention to the interest-rate environment, you can more easily select the best options for your circumstances. You just have to be willing to do the legwork.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

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*Stock Advisor returns as of February 12, 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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I’m 26 and pay for a no-frills HMO. Find out how much it costs for a young person to purchase a basic health insurance policy. [[{“value”:”

When you turn 26, you get booted off your parent’s health insurance plans. Bummer for me — I turned 26 last year. That meant hunting for health insurance plans that fit my budget.

Health insurance shopping is complicated. Insurers sell plans individually, making it difficult to compare prices and features. Thankfully, my state is one of those that offers a health insurance marketplace. After much hemming and hawing, I turned to Covered California for coverage.

I pay $202.27 monthly for health insurance

I pay $202.27 monthly for the Kaiser Minimum Coverage HMO plan. It’s one of the cheapest options available. Kaiser’s, erm, notable lack of coverage reflects that.

My deductible is sky-high at $9,450 per year. For most care, I’m paying in full until I hit that $9,450 mark, after which Kaiser will foot the bill.

I purchased the plan in case something horrible happens. If I get into a car accident or I’m diagnosed with a serious illness, I won’t go broke. But short of an emergency, my insurance won’t cover much. Like most plans, it covers vaccinations, which is something.

(FYI: You buy health insurance separately from life insurance. Took me a bit to figure that out.)

How much is the right amount of coverage at 26 years old?

Generally speaking, younger Americans can get away with cheap health insurance.

I’m banking on my good health. I’m 26 and haven’t been seriously ill in years. Chances are, I won’t pay even close to my yearly deductible in health-related expenses. But folks anticipating frequent doctor visits may want to purchase a plan with a lower deductible.

Another thing to consider is peace of mind. If you’re stressing about paying huge healthcare bills after an accident, and you can afford pricier plans, go for it. If your state offers a health insurance marketplace, check it out to compare prices side by side.

Another place to find health insurance is HealthCare.gov.

My plan doesn’t cover primary care visits

Regarding regular checkups, I’m on my own — at least until I pay my yearly deductible, which is unlikely. The cost of primary care in my area (Los Angeles) is about $190 per visit, no bells and whistles included, according to a 2024 study by Mira Research. Physical exams average $199 generally.

Look. I’m all for “treating your body like a temple” and whatnot. But $200 for a quick checkup is a hard pill to swallow. Especially since scheduling appointments can be a hassle. Fortunately, there are cheaper alternatives to traditional primary care visits.

Virtual visits are cheaper but limited

Members of Costco, take heed! Costco strikes again, offering members cheap health services, including $29 virtual primary care visits and $72 health assessments that include running a standard lab panel and a virtual follow-up. This is separate from Costco Pharmacy, which offers members discounts on prescriptions.

How Costco members activate their healthcare perks:

Navigate to the Sesame website.Create an account (or log in).Verify your Costco membership.

Amazon Clinic offers virtual checkups and prescriptions for minor health issues like flu symptoms and allergies. According to Amazon’s website, Amazon Clinic messaging-based consultations cost $35, and video visits cost $75 on average. That said, prices vary.

However, neither service takes health insurance, though you can use insurance to cover prescriptions. So they’re only worth paying for if you have high deductibles, are uninsured, or are willing to pay for the convenience of virtual visits.

I’m comfortable with virtual care visits, but they’re only for some. Valid concerns include lower-quality exams and technology shenanigans. It’s okay to stick with in-person appointments. But if you’re a 26-year-old buying health insurance, cheaper alternatives might be worth a look.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

They just revealed what they believe are the 10 best stocks for investors to buy right now…

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*Stock Advisor returns as of February 12, 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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Cole Tretheway has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Costco Wholesale. The Motley Fool has a disclosure policy.

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Hanging onto a ton of credit card debt? Read on for tips to pay it off as quickly and efficiently as possible. [[{“value”:”

Using a credit card regularly won’t necessarily lead to debt. But not paying your balance in full unfortunately will. Since credit cards charge a lot of interest, over time, even a small balance has the potential to grow into a large one.

If you’re sitting on a pile of credit card debt now, you’re not alone. Data from the Federal Reserve Bank of New York shows that U.S. credit card balances increased by $50 billion to a total of $1.13 trillion during the fourth quarter of 2023.

Carrying credit card debt has the potential to upend your finances. Not only might you be spending a lot of money on interest — money you could be using to meet other goals or pay other expenses — but carrying too much credit card debt could lead to a drop in your credit score. That could make it difficult — or expensive — to borrow money when you need to, such as to finance a car or buy a home.

The good news, though, is that with the right approach, you may be able to shed your credit card debt in relatively short order. Here are a couple of steps to take to rid yourself of that debt for good.

1. Consolidate your balances

Juggling multiple credit card balances can be burdensome. And you run the risk of forgetting to make a payment, which has the potential to cause a lot of credit score damage by itself.

That’s why consolidating your various credit card balances could be a smart move. And in that regard, you have choices.

First, you could look at a balance transfer. If you can move your various balances onto a single credit card with a 0% introductory rate, you’ll get some breathing room on the interest front as you work on whittling down your balance.

If that option isn’t appealing or available to you, you can also consolidate your credit card balances into a personal loan. The benefit of a personal loan is that you lock in a fixed interest rate on the sum you borrow, so your monthly payments will be nice and predictable. That could make them easier to incorporate into your monthly bills so you’re less likely to fall behind.

2. Join the gig economy

If you’re carrying credit card debt now, chances are, you don’t have hundreds of dollars each month to apply to your balance after paying your essential bills. If you did, your balance would probably be lower.

It’s hard to tell yourself you’ll cut back on spending to free up money for debt payoff purposes. Not only can surprise expenses pop up, but it’s hard to say no to the things you love.

Instead of pretending you’ll slash your spending to a notable degree — or pushing yourself to do that and being miserable — consider joining the gig economy long enough to make your debt go away. Once you’ve consolidated your debt to make it more manageable, find a second job you can fit into your schedule and use your earnings to pay that debt down. You may find that it’s not only easier, but also, more impactful than cutting back on small joys like morning lattes and takeout meals.

Given the way living costs have been rising, it’s not so surprising to see that U.S. credit card debt levels increased at the end of 2023. But the sooner you’re able to pay your debt off, the better your financial situation is apt to be.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

They just revealed what they believe are the 10 best stocks for investors to buy right now…

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*Stock Advisor returns as of February 12, 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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