Money Management

Some life events actually impact the cost of car insurance premiums. Learn when you can expect your auto insurance costs to change. [[{“value”:”

Most people know that certain obvious factors affect the cost of auto insurance premiums. For example, drivers who get into an accident, get a speeding ticket, or get a DUI likely won’t be surprised to discover they have to pay more money out of their bank account in premiums because they represent a higher risk to insurers.

But there are also some life changes that may not be so obviously connected to car insurance that can also affect premium prices. Here’s a few examples.

1. Getting married

Tying the knot doesn’t just mean getting a new life partner — it can also mean paying less for car insurance. Auto insurers believe that people who are married are less likely to take risks than their single counterparts are — and are thus less likely to become involved in auto accidents and make insurance claims.

Because car insurance providers think it’s safer to cover married drivers, those who are officially coupled up end up paying about $150 less for auto insurance coverage each year. That’s a nice little bonus for newlyweds (perhaps someone should let Taylor Swift and Travis Kelce know, could provide a little extra incentive).

2. Moving

Relocating to a new ZIP code — or especially a new state — can also impact the cost of auto insurance premiums. That’s because where you live affects premiums due to:

Different accident ratesDifferent insurance requirements (if the move is to a new state)Different risks of crimes like theft and vandalism

It’s best to alert an auto insurer to a move as soon as possible. And in some cases, if the insurance company doesn’t offer coverage in the new location, it may actually be necessary to switch to a different insurer altogether.

In some cases, those who are moving to a new state may need to prepare for sticker shock, as the average car insurance rate by state can vary dramatically. Those in Michigan, for example, pay an average of $5,377 annually, while those in Hawaii pay just $1,571.

3. Becoming a homeowner

Buying a house is also another big life change that affects coverage costs. Homeowners, like married people, are typically viewed as presenting a reduced risk of auto accidents and insurance claims. Basically, insurers tend to like responsibility and stability, and they reward customers for it.

Becoming a homeowner for the first time can provide around a 5% to 10% decrease in auto premiums. It also presents the opportunity to bundle home and auto insurance, which can make both policies cost less. Getting these two kinds of coverage from the same carrier can result in about a 5% reduction on the cost of both policies.

These are all life changes that many people wouldn’t think could affect auto insurance, but that make a big impact. It’s important to alert an insurer to any big shifts in circumstances, from switching to a new job that may have a shorter commute to getting married to finding a new (or first) house. By keeping an insurer in the loop, it’s possible to get the right kinds of coverage at a fair price.

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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. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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According to a recent study, 47% of parents spent more than $1,500 per month on childcare in 2023. Keep reading to discover the average daycare costs. [[{“value”:”

Raising a family is expensive. Even for those who plan financially before becoming parents, their financial situation can quickly change once they have children. For many parents, childcare makes up a significant portion of their monthly budget, and costs continue to rise yearly.

If you’re looking for affordable childcare solutions in your area or are planning to start a family soon, you may wonder what to expect regarding average childcare costs. It may be much more than you realize. Find out how much money American families are spending on daycare.

On average, Americans spend $321 per week on daycare

Childcare costs have continued to rise in the United States, according to the Care.com 2024 Cost of Care Report. Many families rely on their income and savings to cover this important expense. Finding affordable solutions can be a struggle, and waitlists are often long.

According to the study, 47% of families spent over $1,500 on monthly childcare costs in 2023. But costs varied depending on the type of childcare, and 49% plan to spend the same amount in 2024. How much did families spend on average to send their children to daycare last year?

The national average weekly spend for daycare costs in 2023 was $321, an increase of 13% from $284 in 2022. That’s nearly $1,300 a month spent on daycare. The average cost of daycare varies geographically, with some families paying more or less.

In Washington, D.C., parents spent an average of $419 per week on infant daycare costs. Meanwhile, the average weekly infant daycare cost in Arkansas was $129. But unfortunately, not every family has the ability to move to save money.

Some parents have been forced to make significant lifestyle changes because of high childcare costs. Here are some notable statistics related to such changes that parents have made:

28% are working more jobs27% have reduced their hours at work17% are exiting the workforce

Unsurprisingly, 59% of parents surveyed say childcare access and affordability are among the top three issues impacting their voting choices in the upcoming presidential election.

Four tips to save on childcare expenses

If you’re struggling to afford rising childcare costs or are finding it difficult to find quality care for your kids, you’re not alone. Here are a few tips that could help you save on childcare costs.

1. Set aside pre-tax dollars into a Dependent Care FSA

Using a Dependent Care Flexible Spending Account (DCFSA) could offer savings. You won’t get a discount on childcare costs, but you can save money on your tax bill. You can contribute up to $5,000 to a DCFSA in 2024.

2. Compare alternate childcare solutions

Exploring the cost of different childcare solutions in your community is recommended. In some cases, daycare may be more costly. For example, a babysitter who provides care inside their home may be a more affordable option.

3. Share a sitter

Another way to reduce childcare costs is by sharing a babysitter with another family. Some nannies provide care to multiple children. Splitting the costs with another family could allow you to get quality childcare while keeping more money in your bank account.

4. Consider a career or work schedule change

It might be worthwhile to see if your employer will allow you to work a hybrid schedule instead of fully in-office to cut down on daycare expenses. Another option is to explore remote or freelance work opportunities.

Are you looking for more ways to save money? Check out our free personal finance resources.

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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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Online dating sites are great places to find love, but there are scammers hiding there, too. See how to protect yourself against romance scams. [[{“value”:”

Financial scams come in a variety of forms, but one of the most damaging is the romance scam. The wounds aren’t just financial; people often develop feelings for the person they believe they know, and their betrayal can cause emotional wounds that take months or even years to heal.

It’s a tough position to be in, so the best-case scenario is to recognize the signs before you fall into one. We’ll talk about these below along with what you can do if you believe you’ve encountered a romance scammer.

Five signs of a romance scam

Romance scams often begin as a traditional romance. They often start on dating sites or apps, and it might seem to go really well at first. But in these cases, the scammer is just trying to build trust so they can ask for money or personal information they can use to rob their victims. Here are five signs to watch for.

1. They fall in love quickly

Scammers aren’t actually in it for the relationship. They want things to get serious as quickly as possible so they can get their money and get out. Many are quick to claim they’re in love and shower their victims with compliments.

They may get offended if you try to set boundaries or request that they slow things down. But don’t let this deter you from following your gut. You should only move at a pace you’re comfortable with.

2. They want to communicate more privately

Dating sites and apps often have tools in place to try to identify and remove scammers from the platform. They aren’t perfect; new scammers add themselves daily, so it’s tough to keep up with all of them.

To avoid being caught, many scammers try to get you to leave the site or app quickly so they can continue to talk to you without fear of discovery. Again, this is a situation where you have to trust your gut. If it seems suspicious, politely decline.

3. They don’t share a lot of photos

Scammers don’t want you to get to know them too well. Many use fake profile photos stolen from others. It might appear to be legitimate at first glance, but if you dig deeper, perhaps using a reverse image search, you might find out the photos come from somewhere unexpected.

Of course, AI adds a new layer to all of this. It’s now easier than ever for scammers to generate fake photographs that appear real. Sometimes, it’s possible to identify these photos by looking closely at the details. For example, AI-generated people sometimes have four or six fingers instead of five. But you can expect this technology to improve over time, and when it does, photos may not be a reliable way to determine the legitimacy of an online profile.

4. They don’t want to meet you in person

Most romance scams take place online. Scammers often use excuses like saying they work in the military or on an oil rig to explain why they can’t meet you in person. Others may arrange a date and time to meet you and fail to show up, claiming there had been some sort of emergency.

5. They ask for money

The whole point of a romance scam is to get money out of a person. So eventually, the scammer will make up an emergency they claim they need money for. Or they might say they can teach you how to better invest yours. Either way, the end result is that they want you to send them your hard-earned dollars.

Even more suspicious is when they ask for the money in a way that’s hard to trace, like through a gift card or cryptocurrency. Asking for a wire transfer is also a red flag. Scammers might get angry if you refuse to send the funds, but it’s important to hold your ground and say no.

What to do if you encounter a romance scammer

When encountering a romance scammer, it’s important to first protect yourself. Stop all communication with the scammer and don’t give them any more personal information. If you’ve previously shared personal details with them that might give them clues to your account passwords — for example, your mother’s maiden name — be sure to change your passwords and your security questions immediately.

Then, take steps to protect others. If the person made contact with you on a dating site or app, notify the company that operates it immediately so it can deactivate the profile. You should also notify the Federal Trade Commission (FTC). Provide all details you know about the person, including the platform they contacted you on, the name they used, and how they tried to get money from you. It may be helpful to save screenshots of some of your conversations if possible.

Those who have already given away cash to a romance scammer should file a police report with their local police department. They should also take the steps above to prevent further losses.

It’s a tough position to be in, especially after you’ve invested so much time and energy into getting to know someone. But try to give yourself some grace. These scammers are tricky, and anyone can fall into their traps. Keeping the above steps in mind and keeping your personal information private until you know you can trust a person can help you avoid falling prey to a romance scam again.

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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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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. Kailey Hagen has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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This writer has more than one reason for not rushing to pay off her home. Read on to learn more. [[{“value”:”

For many people, paying off a mortgage early is a big financial goal. And I can see why. Shedding a mortgage means freeing up cash you don’t have to part with every month. And there’s something to be said for being free of housing debt.

But I have no plans to pay off my mortgage. And while part of that has to do with my super-low mortgage rate, that’s not the only reason I intend to hang onto my mortgage instead of chasing an early payoff.

I don’t plan to stay in my home forever

In 2020, when mortgage lenders started offering record-low rates, I refinanced my mortgage from a 30-year loan to a 15-year loan. I also managed to get my loan’s interest rate down to under 3%.

At this point, it makes absolutely no sense to pay off my mortgage early given the rate I have. For context, I’m earning upward of 4% in my regular savings account. So financially, I’m better off continuing to carry that loan and leave more money in my savings account, at least while rates are high.

The Federal Reserve is expected to cut interest rates at some point this year. And it’s already paused interest rate hikes four meetings in a row. Eventually, it’s likely that the interest rate on my savings account will fall below my mortgage rate. But even then, I won’t seek to pay off my mortgage early.

The reason? I don’t want to stay in this home for the rest of my life. I live in an area where property taxes are very high. I’m willing to pay those taxes so that my kids can benefit from a good school district. But once they’re done with school, I have no plans to continue residing here.

As such, I’m not motivated to pay off my mortgage ahead of schedule. I don’t see the point in doing that when this isn’t my forever home. And I know I want to sell it eventually so I can downsize and relocate.

It doesn’t always pay to knock out your mortgage early

If you’re nearing retirement and have eight years left on your mortgage and five years left in the workforce, that’s a scenario where paying off a mortgage early could make sense — especially if your home is the one you want to stay in forever and the interest rate on your loan isn’t nearly as low as mine.

But otherwise, know that carrying a mortgage isn’t necessarily a terrible thing. And you don’t have to stress yourself out financially to get rid of it.

Remember, carrying a mortgage has certain benefits. You can take a deduction for mortgage interest on your taxes, and you can free up cash for other purposes, whether it’s emergency bills or other investment opportunities.

Of course, I don’t love sending my mortgage loan servicer money every month. I’d much rather keep that money for myself. But still, carrying my mortgage through its scheduled payoff date makes sense for me. It might make sense for you, too, especially if you don’t intend to stay in your home forever.

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 6, 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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