Money Management

An expanded Child Tax Credit proposal is moving forward. Read on to learn more. [[{“value”:”

In 2021, the Child Tax Credit was given a major boost at a time when the U.S. was deep in the throes of a pandemic-spurred crisis. Not only did the credit’s maximum value increase from $2,000 to up to $3,600, but the credit became fully refundable, which meant someone who owed nothing on their taxes could still receive its full value.

In 2022, the Child Tax Credit reverted to its former setup, so to speak. The maximum value of the credit was restored to $2,000 per child, and only a portion of the credit remained refundable.

Such is still the case today. But lawmakers have been trying to expand the Child Tax Credit. And this week, the House voted to pass a $78 billion bipartisan tax package that would do just that.

That’s potentially good news for struggling families. But there are still some hurdles to deal with before an improved Child Tax Credit becomes official.

Some lawmakers are pushing back

For the aforementioned tax package to become official, it needs to get through the Senate. And so far, that bill is facing obstacles.

Some senators are criticizing the process in which the bill is being pushed through and are seeking for it to go through committee rather than be taken up on the Senate floor. But going that route could delay the bill, and that’s a problem.

See, part of the bill has the Child Tax Credit becoming refundable for $1,800 for the 2023 tax year. As of now, only $1,600 is refundable for 2023.

But now is when people are starting to file their 2023 taxes. So if this change is going to take effect, it would be better for it to take effect before people file their returns so they can do so accurately. If lawmakers sit on this bill for too long, implementation could prove to be a nightmare.

For example, let’s say the change becomes official in May. That’s past the April 15 tax-filing deadline. The IRS could, in that situation, make automatic amendments to the many tax returns it has on file that include the Child Tax Credit. But things have the potential to go awry in that situation.

Also, if the Child Tax Credit is expanded after the IRS issues refunds, it’s apt to leave filers short on the funds they’re entitled to. Again, just as the IRS could go in and automatically amend tax returns, so too could it automatically issue “catch-up refunds” as necessary. But an even better thing would be to have all changes take effect early on in the tax-filing season, before returns are processed and refunds start hitting bank accounts.

Make sure to claim the Child Tax Credit if you’re able to

Whether the Child Tax Credit gets a boost or not, if you’re eligible for it on your 2023 taxes, make sure to claim it. You can claim up to a $2,000 credit per dependent under age 17. There are income limits associated with the credit as follows: $200,000 for single tax filers and $400,000 for married couples filing jointly. From there, the credit begins to phase out.

If you’re not sure whether you’re eligible for the credit, it could pay to consult a tax professional. In fact, it can be a good idea to use a professional to file your tax return for you even if you think it’s a fairly simple one. The fee you pay for tax help could be worth it if a professional finds additional tax benefits you never would have thought to claim yourself.

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Being loud about your finances has its perks. Read on to learn more. [[{“value”:”

Talking about money isn’t as comfortable for some people as it is for others. You might, for example, feel okay with the idea of confiding in your best friend that your mounting pile of credit card debt is causing you a world of stress. But you may not want to make a social media post listing your current balance and the steps you’re taking to pay it off.

These days, though, a growing number of people are embracing the concept of loud budgeting. Consumers have been taking to platforms like TikTok to share the details of their financial goals and challenges. And while blasting your financial wins and woes to the world may not be the sort of thing you’re naturally comfortable with, there can be benefits to speaking up about financial matters. Here are some you should know about.

RELATED: Best Budgeting Apps

1. Your friends and family might better understand where you’re coming from

Got backlash for not flying home for the holidays this past season because you didn’t want to put a $500 plane ticket on your credit card? If your family members were more aware of your financial struggles, they’d perhaps have gone a bit easier on you.

By sharing your situation with the masses, you’ll be looping in the people you care about on your situation. And you never know what sort of empathy that might garner.

Let’s say you share a social media post or video explaining what sort of hole you’ve gotten yourself into on the debt front. Your friends may be more understanding if you decline a weekend getaway due to money being tight. Or they might take steps to offer up lower-cost entertainment you can take part in, knowing that money isn’t abundant in your world.

2. You may meet like-minded allies you can learn from

Sharing your financial goals and woes might help you connect to other people in your same situation, whether it’s folks you know or ones you don’t. And you never know when you and a stranger or acquaintance might team up to support one another in meeting a goal like paying off debt or saving for a big milestone.

Let’s say you share a financial issue you’re having on social media. You might get some helpful comments on your post that actually help you address the issue at hand. In the context of paying off debt, for example, some people might share the tactics they used to whittle down a credit card balance similar to yours.

Or maybe you’re hoping to cut your spending to sock away $1,000 in an emergency fund this year. You might find someone in the same boat you can buddy up with to support each other.

3. You may be more likely to meet your goals

So you want to be debt-free by 2025, and you have another $3,000 to go? Shouting that out loud might make you feel more accountable to the people who choose to follow your story. And that might, in turn, be the motivating factor you need to meet your goal.

If no one knows you’re aiming to work your way out of $3,000 worth of debt, no one will be any the wiser if, come next January, your balance hasn’t budged. If you share your story and week-by-week progress, you may be more inclined to stay on track and get to where you want to be.

There may be a middle-ground option that works better for you

Maybe blasting out a TikTok video sharing your savings goals and financial challenges isn’t your cup of tea. You don’t necessarily have to put yourself out there in such a public forum. But one thing you may want to do is confide in some of the people you trust about your situation.

You never know when a friend might have great advice you can follow. And you never know when a relative in a better financial position might offer to help you out in some way if you’re stressed about money (such as offering you an interest-free loan if you’re struggling to make rent and can’t find a cheaper housing alternative).

Loud budgeting isn’t necessarily for everyone, despite the potential upside. But if you share that part of yourself to some degree, you may find that it benefits your personal finances in more ways than one.

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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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Everyone makes mistakes, often financial. Learn about five of the biggest mistakes made, and how you can avoid them. [[{“value”:”

I was 3 the first time I remember being told I’d done something wrong. Upon seeing the artwork added to my bedroom wall, my father had zero sense of humor. I called my masterpiece “Exploration in Crayon,” yet my father did not recognize its beauty.

I still don’t love hearing that I’ve done something wrong, but here’s the difference between childish me and adult me: I now understand how much there is to learn from my mistakes.

This brief list represents five of the biggest mistakes financial experts say Americans commonly make, and how you might sidestep them.

1. Believing an emergency fund is a pipe dream

We all start somewhere, and for many of us, early adulthood finds us low on funds. The very idea of building an emergency fund when we barely have enough money to cover our monthly bills seems ludicrous.

This mistake appears to be rooted in the belief that we must deposit a specific amount of money into our emergency savings accounts — you know, like another monthly bill. The truth is, throwing spare change into a jar each evening and then depositing that change into a savings account adds up.

Let’s say the change averages $7 a week. After a year, you have $364 saved for emergencies. It doesn’t sound like much, but can make a real difference. Imagine that your washing machine stops working. According to Angi, the average cost to repair a washing machine is around $180.

You have emergency cash stashed in the bank, so you don’t have to worry about going into debt for the bill. You can withdraw the funds and cover the cost of the repair. However, if you have to pay with a credit card, you could find yourself stuck repaying the $180 with interest.

2. Carrying credit card debt

Credit cards can be a great weapon in a financial arsenal. Faithfully paying credit card debt builds your credit score. However, the average credit card debt among cardholders carrying a balance was $6,365 in 2023, according to recent research from The Ascent.

While that amount of credit card debt may not seem significant at first glance, consider this: If the interest rate on the card is 20%, a cardholder making a minimum monthly payment of $210 will spend about 3.5 years paying it off. Worse, they’ll pay $2,573 in interest.

While paying off credit card debt is not necessarily easy, it is one of the kindest things you can do for your financial situation. Whether you pay the card off by reworking your monthly budget, renting out garage space, or adopting a payoff strategy like the snowball method, getting rid of credit card debt is like giving your budget a new lease on life.

3. Putting off retirement saving

I get it, none of us can imagine ourselves ever getting old. And if we’re never going to grow old, why save for retirement? Ugh. I may not be mad at my 3-year-old self who colored on my bedroom walls, but I would seriously love to kick the butt of the young-adult me who postponed saving for retirement.

Because we did not invest when we were young, my husband and I have spent years budgeting half of our monthly income for retirement. We are fortunate to be able to do that, but there are trade-offs involved. We don’t drive fancy cars, we live in a relatively modest neighborhood, and still budget every dollar we spend.

Would we have lived like royalty if we’d started investing earlier? Probably not, but having a few more options might have been nice. The earlier you begin investing for retirement, the more time you give the magic of compound interest to work in your favor.

4. Impulse buying

According to research, between 40% and 80% of all purchases are impulse buys. It’s so common that we don’t always notice when we’re doing it. Whether we buy because we’re sad, nervous, hungry, or bored, emotional spending can wreak havoc on a budget. Imagine how different your checking account would look if you cut all impulse purchases.

You may not be able to cut impulse buying overnight, but there are steps you can take to improve the situation slowly. For example:

If you don’t have one, create a monthly budget. There’s nothing like seeing your financial obligations in black and white to remind you where you stand.Consider using a budgeting app. It doesn’t make math errors, and the time spent entering financial information can help you keep your eye on the ball.Imagine the future. This isn’t just about planning for retirement. It’s also about considering all the other things you want to do with your life (and money). For example, setting a goal like helping the kids pay for their education, going on a long European vacation, or paying the house off by the time you’re 55 gives you something solid to work toward.

5. Not writing a will

It’s a rare soul who enjoys thinking about death, but that’s not what writing a will is about. Drawing up a will is about ensuring your wishes are carried out after you die and your loved ones will be looked after.

In the middle of the pandemic, it came to light that 68% of Americans don’t have a written will. Even if a person thinks there’s no reason for a will because they don’t have much money, it’s still helpful for those left behind to have a clear picture of how they want their possessions distributed.

Hiring an attorney to draw up a basic, no-frills will should cost around $300. It’s a small price to pay to leave a thoughtful gesture behind.

We’re all going to make plenty of mistakes in life, and that’s okay. The goal is to learn as much as we can from our missteps along the way.

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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.Dana George has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Want to make more money in 2024? The best side hustles pay good money and let you work on a flexible schedule. See how! [[{“value”:”

One of the best moves to improve your personal finances in 2024 is to increase your income. Making extra money on the side can help you pay off credit card debt, pay off a car loan, save for a down payment, or get breathing room in your budget. Whatever your financial goals, a great way to reach them is to start a side hustle in 2024.

Side hustles are a type of flexible, independent work that you can do outside of your regular job. We’ve chosen a few of the best side hustles for 2024. All of these side hustles involve:

Quickly earning good money ($20 or more per hour)Low or zero startup costsSkills and equipment you already have

Let’s see how these side hustle ideas can help you achieve big financial goals.

1. Professional freelance work and consulting

If you’re a “knowledge worker” and have career skills in technology, IT, graphic design, marketing, sales, web and software development, writing, project management, or other business disciplines, you could put those skills to work as a side hustle.

Companies often need to hire contractors on a short-term or flexible basis, for projects where they don’t have the right budget or bandwidth for full-time employees. There are many opportunities for professional freelancers and business consultants to make good money!

How much money you can make with this side hustle: The MBO Partners State of Independence in America 2023 survey found that, as of 2023, approximately 4.6 million American “independent workers” (freelancers, consultants, and self-employed professionals) had annual incomes of $100,000 or more. Depending on your skills, experience, and client base, you could earn an hourly rate of $50 to $100 or more.

2. Work-from-home side gigs

Many people would love to earn extra money on the side, but without a commute. This is where work-from-home side gigs can be a great solution — these side hustles let you work from home online, with a part-time or flexible schedule. Just plug into the internet and start improving your personal finances!

Here are some of the best online side hustles we could find on FlexJobs, with average pay of $20 or more per hour (exact pay will depend on the employer, your location, your experience, and more):

Project manager ($37 per hour)Executive assistant ($29 per hour)Editor ($29 per hour)Recruiter ($27 per hour)Social media manager ($26 per hour)Search engine evaluator ($24 per hour)

Remote customer service is another popular online side hustle. Many companies hire people to provide online and phone-based customer service with part-time schedules, and the work can be done from anywhere in the U.S. ZipRecruiter has listings for remote part-time customer service gigs that pay up to $20 to $25 per hour.

How much money you can make with this side hustle: It depends on your skills, experience, location, and more — but the online side hustles listed above pay an average of $28 per hour.

3. Home services and yard work

If you’re a homeowner, you know how important it can be to get help with home maintenance projects. Not everyone loves yard work or has time for the physical labor of shoveling snow or cleaning gutters. If you’re handy with tools or love the look of a freshly cut lawn, you could start a side hustle providing home maintenance and yard care services.

Home organizing is another home-centered side hustle. Many people need help decluttering their homes, getting a house ready to sell, or doing some aggressive spring cleaning. If you’ve got an eye for detail and love helping people improve their homes, you could make good money as a professional home organizer.

How much money you can make with this side hustle: According to survey data from Angi.com, average pay rates for home organizers range from $55 to $100 per hour, handypersons earn an average of $90 per hour, and lawn care professionals earn $49 to $205 per lawn service.

4. Pet care

As seen with the rising popularity of pet insurance, people love their cats, dogs, and other pets, and are willing to pay good money to take care of their furry friends. But not everyone has time to walk the dog every day, or wants to board their shy cat at a large, noisy facility when they go on vacation. If you love pets, you can use apps like Rover to get dog-walking and dog-sitting clients.

How much money you can make with this side hustle: I found local dog walkers in my city (Des Moines, Iowa) on Rover earning $13 to $20 per walk, and doggy daycare providers charging around $20 to $39 per day.

5. Rideshare driving and delivery apps

If you already have a car, it can be easy to get started earning extra money with rideshare gigs or food delivery apps. These side hustles give you a flexible schedule and let you earn money quickly, but be prepared for a few extra costs like depreciation, gas, and rideshare car insurance.

How much money you can make with this side hustle: It depends on location, time of day, and other factors. But ZipRecruiter survey data shows that the average Uber driver makes about $19 per hour. Analysis from The Rideshare Guy found that Instacart shoppers earn an average of $15 to $22 per hour. You can boost your hourly earnings with high efficiency and bigger tips.

Bottom line: Starting a side hustle can feel incredibly empowering because it lets you turn your free time into extra cash in your bank account. You might even decide to turn your side hustle into a new career or a full-time small business.

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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 positions in and recommends Uber Technologies. The Motley Fool has a disclosure policy.

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