Money Management

If you love shopping at Costco but want to spend less while doing it, trying out these three simple techniques could be just the ticket. Give them a try today. [[{“value”:”

Costco can be a great place to shop to save money and keep your credit card bills down. But the store is chock full of impulse buys and “must-have” items, so visiting can also cause you to overspend if you aren’t careful.

The good news is, there are a few simple ways to reduce the amount of money you’re shelling out at the warehouse club — and these suggestions go beyond the obvious of just shopping with a list and making sure you aren’t swayed by store samples to buy items you don’t really need.

Here are three techniques for keeping your spending down and positively impacting your personal finances with your Costco membership.

1. Buy Kirkland-brand products

Kirkland is Costco’s house brand. Somewhere around 350 products are sold under the Kirkland label, many of which are made by the same manufacturers as big-name national brands. Every one of these Kirkland items was subject to a rigorous quality control process set by Costco — and each one also costs at least 20% less than a comparable national brand would sell for at the warehouse club.

The next time you’re shopping at Costco, make it your mission to swap out as many of the name-brand items you’d ordinarily put into your cart for the Kirkland alternative. If you normally spend around $100 per trip (which is what the average Costco customer spends), you could end up getting out of the store with somewhere around $20 extra left in your checking account if you try this approach.

2. Be strategic about when you shop

Costco’s products tend to go on sale on predictable schedules. For example, you may be able to get leftover holiday decorations at a significantly reduced price after the holiday is over. Store employees have also advised that Costco gets tons of returns after the holidays, with many of those items put back on the shelves at a heavily discounted price. On the other hand, January and February can be an ideal time to buy a TV at Costco, while Labor Day and Black Friday can be ideal times to buy mattresses.

You can look back at past Costco coupon books to see when certain items have gone on sale in the past so if you have a big upcoming purchase to make at the warehouse club, you can wait until the right time to make it.

3. Download the Costco app

The Costco mobile app can be a great tool to help you save because you can view all of the current promotions that are available on the Savings Panel. Both online and warehouse promotions are listed there so you can find bargain-priced items.

Of course, you don’t want to buy something just because it’s on sale as this would end up costing you money (no matter how good of a deal you get). But if you spot something that you tend to buy and use regularly that’s on sale, you may want to stock up on a few of that item so you won’t have to buy it again at full price later.

By taking these three steps, ideally you can reduce the amount you’re spending at Costco while still buying all the great items that you need that the store has to offer.

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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.Christy Bieber 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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Cosigning a loan is a very big responsibility. Before you even consider moving forward with doing it, get answers for these questions. [[{“value”:”

When someone applies to take out a personal loan, lenders look at their financial credentials like their income and credit score. If those credentials aren’t solid, a lender may deny the applicant a loan or only offer a loan at a very high rate.

Many personal loan lenders do allow cosigners, though. A cosigner is another person — typically with more income and better credit — who agrees to share legal responsibility for the debt. The cosigner essentially vouches for the primary borrower and protects the lender by giving the lender someone else to collect the money from if the primary borrower doesn’t pay.

If a loved one asks you to fill this role and serve as cosigner for their loan, this is a big responsibility you’d be taking on — and you need to ask a few key questions to make sure that it’s the right financial move.

1. Why do you need a cosigner?

The first thing you’ll want to find out is why a cosigner is actually needed. See, lenders only ask for someone to guarantee the loan if they have concerns about whether they’ll be paid otherwise. And you need to know the source of those concerns.

Say someone needs a cosigner because they’ve never taken on debt before so they have no credit score, and now they’re borrowing to cover a vital medical expense they weren’t expecting. That may be a less risky person to cosign for than someone who has terrible credit due to missing a bunch of payments, who is deeply in debt already, and who is taking out a loan to pay off a bunch of credit cards.

It may be uncomfortable to ask someone about their financial situation like this. But they’re asking you to put your own finances on the line for them, so they owe you an explanation as to why they’re in need of this assistance if they want your help.

2. How much will the monthly payments be?

It’s also important to ask how much the monthly payments will be. The big reason for that is to make sure they are affordable for you if you get stuck making them.

More than 30% of loan cosigners end up having to pay back the debt they cosigned for when the primary borrower stops making the required payments. If your own finances would be devastated if you had to take on this obligation, you should say no to cosigning.

This is true even if you expect the primary borrower to be responsible, because there are never any guarantees in life. The person you’re cosigning for could become disabled or pass away, and you’d be left with the bill (on top of your grief over what happened to your friend or loved one).

3. How long will the loan repayment period be?

Knowing how long the repayment period will be is also important. That’s because the loan will be on your credit report until it is paid off in full. Even if the debt is being paid by the primary borrower, this still could affect your own ability to borrow in the future. Lenders you might want to get loans from will see this one and assume it’s one of your payment obligations.

If the personal loan you cosigned for makes your debt look too high relative to your income, you might not be able to get a mortgage or car loan or other loans if you need them for yourself. So, you need to know how long you’ll have this obligation impacting you.

4. What’s the plan for repaying the money?

Finally, you’ll want to make sure the person you are vouching for has a clear plan to repay the money. The payments should be worked into their budget and should be clearly affordable given their current income.

By getting the answers to these four questions, you can make a more informed choice about whether you can take on the risk of cosigning. If you can’t afford the payments or if the person asking for this favor won’t tell you why they need it, doesn’t have a plan to repay it, or is planning to borrow for longer than you’re comfortable with, saying no to cosigning may be your only option.

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Aldi shopping has its benefits. But read on to see why it might be the wrong store for you. [[{“value”:”

Groceries are a big expense in my household. And chances are, they’re a big expense in yours, too.

If you’re eager to save money on groceries, then you may be looking to add Aldi to your shopping routine. Aldi is known for its competitive prices, so shopping there regularly could benefit your personal finances.

But shopping at Aldi isn’t for everyone. If these signs apply to you, you may want to steer clear.

1. You only have time to hit one supermarket each week

I don’t shop at Aldi very often these days. But when I do, it’s usually in addition to a weekly stop at Costco as well as my nearby ShopRite supermarket.

Since I work from home and have a fairly flexible schedule, I’m able to sometimes fit an extra grocery store run into my routine. But if you work a demanding job and have limited time to go shopping for food, then Aldi may not be such a good bet for you. And you might especially want to avoid Aldi if you only have time to visit one supermarket per week.

One problem with Aldi is that its inventory isn’t always consistent. You might show up one week only to find that the store doesn’t have lettuce, or cucumbers, or another staple item you’d expect to find at a supermarket. That could prove problematic if your schedule is super tight, or if you don’t have a car and need to pay for a ride-hailing service every time you go grocery shopping.

2. You have a family of picky eaters

Most of the brands you’ll find at Aldi are exclusive to the chain itself. This means the items you find on the shelves are ones you may not recognize. If you have picky eaters in your household, that could prove problematic.

Take it from me. My kids eat granola bars regularly, and I once picked up some boxes at Aldi because the price was attractive. Only because my kids weren’t familiar with the brand, they flat-out refused to eat those granola bars. So instead of saving money, I wasted money.

3. You’re a savvy shopper and meal planner and can save just as big at a regular supermarket

The primary benefit of shopping at Aldi, at least in my book, is to save money. But you may be more than capable of doing that by paying attention to sales at your local supermarket and doing a good job of planning your meals around them.

Aldi, for example, might have pasta available all the time for $1.19 a box, whereas it might be $1.49 per box at your local supermarket. But if you’re able to stock up at your regular grocery store when pasta goes down to $1.19, there’s really no need for an Aldi trip.

Of course, you’ll need to do this many times over to bring your regular supermarket haul down to the price you’ll probably pay at Aldi. But if you’re mindful of sales and good at meal planning, then this may be totally doable.

I know a lot of people who tend to sing Aldi’s praises. But to me, the store is, frankly, only OK. So if these signs apply to you, you may want to skip Aldi and stick to the stores you prefer or are used to.

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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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Ferrari prices are very high, with some costing more than half a million dollars. Learn what you might expect to spend on insurance for one. [[{“value”:”

There are some well-known luxury car names out there. Ferrari is one of them. Ferrari is renowned for its expensive sports cars, and many people consider them to be investments or collectors items.

Ferraris are very expensive, though, with the starting price of the Ferrari Roma (one of the more inexpensive models) coming in at $243,360 while a higher-end Ferrari SF90 Spider has a retail price of around $575,445.

Those who can afford these prices may not have to worry too much about whether they’ll have enough money in their checking account to pay for auto insurance. Still, even people with the funds for a fancy sports car may want to know what they are getting into in terms of how much their car insurance premiums will be.

So, how much does it cost to insure a car like this? Here’s what aspiring Ferrari drivers need to know.

The costs of insuring a Ferrari are quite a bit higher than a regular car

Perhaps unsurprisingly, the costs of insuring a Ferrari are a whole lot higher than the premiums for a regular old vehicle that the typical motorist would have in their driveway.

Premium prices do vary by model, but generally start at around $300 per month for the lower-end Ferraris like the Ferrari F430 Convertible Spyder and Ferrari 360 Coupe. At the other end of the scale, premiums climb above $500 and sometimes closer to $600 monthly for the Ferrari 488 GTB Spyder and Ferrari 812 Superfast Coupe.

Other factors besides the car model impact cost as well. For example, for a 40-year-old married man in Florida driving a 2023 Ferrari F8 Convertible, it would cost $437.22 per month to get coverage from a big-name insurer that includes $100,000 in personal injury liability coverage per person and $300,000 per accident. But a Ferrari owner might want more protection for their assets, so they may be interested in switching to a policy with $250,000 per person and $500,000 per accident in coverage. That would bring premiums up to $501.94 monthly.

Clearly this is a lot more expensive than insuring a regular car. The national average annual car insurance premium comes in at around $3,017 per year (or about $251 per month), which is around half what the Ferrari driver might expect to shell out.

Insuring a more expensive car is usually going to cost more

There are good reasons why insuring a Ferrari is going to cost more than, say, a Nissan. Insurers price policies based on the risk they feel the car and the driver present. The auto insurer is taking on a lot more risk when agreeing to replace a $500,000 car than a $50,000 one in an accident or if it is stolen.

A Ferrari would also cost more to repair even if the car wasn’t totaled, because the parts are expensive. On the other hand, though, they may actually not be as prone to theft since it’s a lot easier to spot a stolen Ferrari than a car that blends in more on the road.

Ultimately, drivers purchasing high-end sports cars (or other luxury vehicles) should realize they’ll likely have to pay more not just for the car but for the insurance to cover it. These added premiums may not faze them, but it’s still worth thinking about just how much insurance will be before committing to buy — even if you’re only buying that Nissan.

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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.The Motley Fool has a disclosure policy.

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H-E-B supermarkets are beloved by Texans across the state, but it’s not out of simple state loyalty. There’s something different in an H-E-B. [[{“value”:”

If you spend any time around Texans, or happen to run across them discussing their favorite places in Texas online, you’re gonna find a few very common threads. Texans, as a whole, love Buckee’s, Whataburger, and H-E-B supermarkets.

It took living in Texas, among these superfans, to truly understand what the deal was with H-E-B. I mean, it’s just a market, right? Who cares? Get in, grab the milk, the bread, the random pack of gum, get out.

That’s really not what the H-E-B experience is, though. Here are three reasons shoppers love H-E-B supermarkets.

1. H-E-B is a wonderland of flavors, smells, and textures

Perhaps the most important reason shoppers love H-E-B is because of the wild amount of variety it brings to the grocery game. Most of its locations not only have a huge array of fruits, vegetables, and cuts of meat, they also have bakeries full of actual bakers.

I could write a whole essay on the bakery itself, but I won’t. But the Burleson, Texas, H-E-B has some of the most beautiful grocery store cakes I have ever seen in my life, lots of seasonal treats, and enough fresh tortillas to put any neighborhood tortillaria to shame.

If you’re more of a meat and potatoes type, the extensive butcher’s cases and vacuum-packed meats are going to give you plenty to think about, with seasonal offerings and pricing often available. Need crawfish for your next boil? Order ahead, because those seasonal crustaceans don’t last, but they’re going to be the most fresh you’ve ever seen in the heart of Texas.

2. You can buy almost anything at H-E-B

When I say anything, I actually mean anything. Not all H-E-B markets have as extensive of offerings as others, but there are few places you can walk in, knock your grocery list out, buy some really good cookware, pick up some lightweight casual wear, a new pair of shoes, deodorant, and a dinner setting for four. And the store does it all at an alarming discount, which is great if you’re focused on your personal finances.

Although I am a native of the Missouri Ozarks, and grew up in Walmart Country, I shunned the Walmart in Texas because I had no reason to be there with H-E-B just down the road. If H-E-B didn’t carry it, I probably didn’t need it (or I popped across the street to Target, but that’s a different article for a different day).

Pay special attention around the holidays for H-E-B branded everything in some really wild varieties. I still sometimes think about the H-E-B branded dish soap I bought one winter that smelled exactly like hot chocolate. You can get everything at H-E-B, and everything at H-E-B is budget-friendly.

3. H-E-B gives back to Texas

Consumerism is great and all, but H-E-B is a Texas institution because of a lot more than just food (although the food doesn’t hurt). The H-E-B corporation is really active in philanthropy and disaster recovery in Texas. It’s often one of the first on the scene when major disaster strikes, providing food, clothing, and other necessities to displaced victims of unforeseen circumstances.

Through the H-E-B Community Investment Program, H-E-B has helped organizations strengthen communities in need. It promotes important aspects of life, including environmental sustainability, health and wellness, hunger relief, education and literacy, diversity and inclusion, and other social services that provide a net good for the communities that host H-E-B properties.

If you know Texas, you know H-E-B

My time in Texas was brief — just a few short years — but I will never forget H-E-B supermarkets or what they did for communities across the state. Not only was the shopping experience absolutely next level, just knowing that if something went very badly, the company would actually be there to support your town was kind of amazing.

I mean, sure, in times of trouble, you’ve got places like the Red Cross, but can they smoke a brisket?

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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.Kristi Waterworth has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target and Walmart. The Motley Fool has a disclosure policy.

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Making a big deposit at your bank can trigger a report to the federal government. Find out what happens when you deposit $10,000 or more. [[{“value”:”

Depositing $10,000 in a bank account may not seem like the most criminal activity. And, nine times out of 10, it really isn’t. But occasionally, depositing a large sum is an indication of something more clandestine, like money laundering or selling drugs. And to nip those activities in the bud, big deposits might trigger a report to the federal government. If you frequently make deposits over $10,000 in your savings or checking account, here’s what you should know.

Banks report cash deposits totaling $10,000 or more

Banks have to report any deposits above $10,000 to the IRS on a form known as the Currency Transaction Report. Yes — even if it’s only $10,000.01.

It’s not just deposits, either. Banks are required to report any transaction of over $10,000, including withdrawals. And if you think you can avoid reporting by separating your big transactions into smaller ones, you’d be wrong. This is known as “structuring,” and banks are required to report that, too. For example, if you deposit $3,500 today, $3,500 tomorrow, and $3,500 two days from now, your bank would report the transactions to the IRS.

Now, don’t get the wrong impression — the IRS isn’t necessarily going to hound you because you deposited $10,000 in a bank account. The federal reporting is in place to help the federal government track financial crimes, so as long as you’re not doing anything illegal, the federal government likely won’t care.

How to legally deposit $10,000 or more

The best way to deposit $10,000 or more is simply to do it. Don’t structure the deposits or try to evade reporting requirements. If you don’t want to draw attention to yourself, then just deposit the money and go about your day.

On the other hand, you’ll likely run into problems if you try to break big deposits into smaller chunks with the purpose of evading the federal government’s vigilance. Even if you’re not doing this with illegal intent — such as you simply want to be left alone and don’t want the federal government tracking your activities — it could lead to unnecessary problems down the road.

All in all, banks are still the safest place to store your money. When you make deposits at an FDIC-insured bank, your money is insured up to $250,000 per depositor. (Joint accounts are insured up to $500,000.) What’s more, you can withdraw this money freely, even if a large transaction does trigger a report.

If you’re depositing $10,000 into an account intending to keep it there for the long run, make sure you’re earning interest on it. These days, it’s not hard to find a savings account that earns above 5% APY (though this could change in the future). Check out our list of best savings accounts and see how much that $10,000 could earn you.

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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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