Money Management

Vehicle inventory levels are expected to return to normal this year, but insurance rates are still up. Read on to learn how this could impact you as a car buyer. 

Recently, I was researching used vehicles online, looking at a few potential third-row SUVs, and I was shocked at what I saw. For the first time in several years, the vehicle prices almost seemed reasonable.

After experiencing astronomical highs since the pandemic, could the car-buying market actually be returning to normalcy? The latest Cox Automotive report points in precisely that direction.

The company said in its recent 2024 automotive market predictions report that the “chaotic” times of the past few years are ending, and “normalcy” is what car buyers will see this year.

Finally.

New car prices have increased 23% over the past three years, according to Kelley Blue Book, and those skyrocketing prices caused used car values to rise along with them.

Pandemic-induced labor and semiconductor shortages caused a massive lack of vehicle supply that pushed car prices higher, along with the effects of rampant inflation.

But Cox Automotive thinks the worst is over, and the car buying will shift from a seller’s market to more of a buyer’s market this year.

Why the car market could return to normal

Cox says new-vehicle inventory will increase this year, returning to levels not seen since before the pandemic, making it more likely dealers will have to offer incentives and discount prices to get buyers in the door.

For some context, there will be about 3 million more new vehicles available for sale in 2024 than there were at the height of the semiconductor shortage a couple of years ago, Cox said.

That’s good news for buyers all around, and it comes at a time when receiving a federal tax credit for electric and hybrid vehicles is getting easier as well. The government is offering up to $7,500 for some new EVs and hybrids, and this year, buyers will be able to receive the tax credit at the time of purchase, instead of when they file their taxes.

But while car prices are likely to come down and incentives may go up, there are a few costs that car owners will still be digging deep into their pockets for.

Car insurance and repairs are still expensive

Inflation is cooling, but there are many expenses that aren’t feeling the effects quite yet, including the cost of car repairs. The Bureau of Labor Statistics says it costs 17% more right now to repair a vehicle than it did the same time last year.

Adding to that financial pressure for car owners is that car insurance prices are up 19% over the past year and are unlikely to come down in 2024.

Rates have increased for several reasons, including a spike in crashes, replacement part shortages, high vehicle prices, and higher repair costs. Auto insurance costs have ballooned so much over the past few years that it now ranks as Americans’ sixth-largest financial concern, following just behind rent/mortgage payments and energy bills.

All of this means that while 2024 may be a good year to purchase a new car, buyers may also want to set aside some extra money for repair costs and insurance. It may also be a good idea to compare car insurance companies to see if you can get a better rate.

All of this talk about expensive vehicle costs has me questioning the idea of replacing my SUV and moving in a completely different direction. How much does bike maintenance cost these days?

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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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Tired of overspending on groceries? Read on to see how you can break that cycle. 

I’ve always considered myself a money-conscious person. From a young age, I made a point to prioritize building my savings account balance, and I always try to do what I can to cut costs.

Last year, for example, my husband and I negotiated our cable TV package to reduce what we were spending on it. And we’ve made other such moves to help our finances through the years.

But if there’s one area we’ve always struggled with, it’s food. We don’t like to deny our kids the food they love, and it’s important to us to stock our fridge with a variety of healthy choices, like fruits and veggies. So not shockingly, groceries are a big component of our monthly credit card bills.

Now I know firsthand that spending less on groceries isn’t easy — especially at a time when they’re still up 1.7% from a year ago, according to the Consumer Price Index. But if I’m being honest, in the past, poor habits of mine have caused my grocery bills to climb more than necessary. So I’ve taken steps to change my approach to food shopping, and it’s definitely helped. If you want to stop spending money needlessly at the supermarket, too, here are some tips to follow.

1. Always have a list

In the past, I would wander into my local supermarket, browse the aisles, grab items I thought I needed, and repeat. That method didn’t work well, though, because I often wound up buying things I didn’t need. And I frequently came home without a key ingredient or component of a meal I wanted to prepare.

Nowadays, I shop with a list, and I suggest you do the same. A list can help you stay focused and potentially make it less likely that you’ll buy additional items on a whim.

2. Stay out of aisles you don’t need

Once you get into the habit of shopping with a grocery list, take things one step further and don’t enter aisles if they don’t contain a list item of yours. One big trap I used to fall into was making a list, but also scoping out the candy and ice cream sections of the supermarket just in case there was something tempting (spoiler alert — there always was).

If ice cream isn’t on your list, just stay out of that aisle, period. Otherwise, there’s a good chance you’re going to bring home a pint of chocolate chip cookie dough, or whatever your go-to flavor happens to be.

3. Only buy bulk items you consume every week

I’m a big fan of buying groceries in bulk. In fact, I usually go to Costco once a week to stock up on bulk produce, cheese, and other staples.

But if you’re going to buy in bulk, follow this key rule: Only purchase bulk items your family eats weekly. If you buy items in bulk that you don’t consume on a regular basis, there’s a greater chance of them going bad. And this doesn’t just apply to fresh food. Items like crackers and cereal can go stale pretty easily.

4. Shop without your kids if possible

As a parent, I understand that it’s not always feasible to hit the supermarket without a child in tow. But if you’re able to shop solo, do it.

When you bring your kids to the grocery store, there’s a good chance they’re going to beg for various items that look appealing. And there’s also a good chance you’re going to give into them to make your shopping experience go more smoothly. I know, because I pretty much always let my kids pick out at least one item at the store — which is why I try to shop without them whenever possible.

5. Don’t shop when you’re hungry

A grumbling tummy can make it so you’re more likely to buy extra items at the supermarket you don’t really need. You can’t always time your shopping trips to coincide with when you’ve finished a meal. But one easy trick I employ is carrying a granola or protein bar with me at all times so that if I get hungry, there’s an easy fix.

Incidentally, this is a practice I employ in general — not just for grocery store runs. But I find that if I can quell my appetite in the midst of a grocery shopping trip, I’m likely to spend less.

6. Buy generic products when taste won’t be an issue

Because I have picky eater kids, I tend to try to buy the brands I know they approve of when it comes to things like snack bars, yogurt, and cereal. I’m well aware that bringing home an unknown or store brand could mean having those items rejected.

However, when it comes to products that tend to take on the taste of the sauce you put on them, like pasta, I’m a firm believer in buying the generic or store brand, as it can often result in a much lower price point. Chances are, your kids won’t be any the wiser if their macaroni came without a fancy label on the box as long as it’s smothered in cheese, just the way they like it.

It’s hard to keep grocery spending in check — there’s no question about it. But if you follow these tips, you may find that you’re able to eke out some savings, even at a time when food costs remain elevated.

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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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A denied credit card application is frustrating, but it’s often fixable. Explore a few simple steps you can follow to potentially get the card you want. 

If you’ve just been denied on a credit card application, you’re probably feeling disappointed right now. You spend your time picking out a card you like and filling out the application. And the card issuer comes back with “thanks, but no thanks.”

It happens. I’ve applied for a lot of credit cards, which also means I’ve gotten my fair share of denials. The good news is that a denial isn’t always the final decision. In some cases, it’s still possible to get approved. Here’s what to do in this situation.

1. Find out why your application was denied

When your credit card application is denied, the card issuer is legally required to explain why. You’ll receive a letter in the mail, called an adverse action letter, normally within a week or two. This will have the denial reason (or reasons) for your application, as well as the credit score that the card issuer obtained on you when processing your application.

You can also call the card issuer to get this information, without waiting for a letter in the mail. Here are some of the typical denial reasons:

Your credit score is too lowYour income is too lowYou don’t have enough of a credit historyYou’ve opened or applied for too many credit accounts recentlyYou have a recent bankruptcy on your credit file

Once you know why your application was declined, you can start preparing to call the card issuer. Most credit card companies will take a second look at your application if you call and ask.

Now, there are some situations where an applicant clearly isn’t a good fit for a card. For example, the best credit cards are generally aimed at people with a credit score of at least 670 to 700. If you applied for one of those cards, and you have a score of 540, you’re likely out of luck. Calling the card issuer about it would be a waste of time. But in other cases, a denial can be overturned.

2. Call the card issuer and ask for a reconsideration

Some card issuers have a reconsideration line specifically for calling about declined credit card applications. Others have an application services line, and there are also those where you need to call the standard customer service number.

Here are the numbers to use for some of the most popular card issuers:

American Express: 1-877-399-3083 (for new customers), 1-866-314-0237 (for existing customers)Capital One: 1-800-625-7866Chase: 1-888-270-2127Citi: 1-800-695-5171Discover: 1-888-676-3695Wells Fargo: 1-866-412-5956

When you call, explain that you’re reaching out about your recent card application. Ask if they could review your application and see if there’s a way to approve it. You may also want to mention why you want the card. Make sure to pick a reason that shows you plan to be a long-term cardholder. If you say “I love the sign-up bonus,” it could give the impression that you’re the type of cardholder who will earn the bonus, and then stop using the card.

Have an answer ready about the card issuer’s denial reasons, too. For example, if you were denied because you opened too many credit cards recently, you could point out that you’ve been able to manage all those cards with no issues. Or, if your credit score is a bit lower than the card issuer would like, you could mention how you’re working on it and have consistently paid on time for over a year.

With any luck, the representative will approve you for the card. If not, you can call back and try again with someone else, or call it a day.

3. Fix the issue and reapply — or pick a new card

You can’t always convince card issuers to approve you for a card (trust me, I’ve tried). Sometimes, there’s no way around a denial. For example, Chase almost always denies applicants who have already opened five or more credit cards in the last 24 months. This informal policy has become known as Chase’s 5/24 rule.

So, if the reconsideration line can’t help you, you have a couple of options. If you really want the card, you could try to fix the issue and reapply. Run afoul of Chase’s 5/24 rule? You could wait a few months, or however long it takes, until you don’t have so many newly opened credit cards.

Or, if your credit score was the issue, you can focus on raising it. Once your score is within the recommended range for that card, reapply. It’s possible to build credit fast, especially if you pay down any credit card debt you have.

The other option is to move on and apply for a different card. Look for cards that fit your current credit profile. Here are the top options for every credit score:

Best credit cards for excellent creditBest credit cards for good creditBest credit cards for fair/average creditBest credit cards for bad credit

There’s no need to stress over a denial on a credit card application. You may be able to call the card issuer and get a representative to approve you. I’ve done it multiple times, as have plenty of others. And if not, there are lots of credit cards out there, so you can always apply for another 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.
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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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Most banks and credit unions offer savings accounts. Learn about the most important features to look for when shopping for a new one. 

Saving money is one of the most important financial habits. You’ll also need a safe place to keep that money, which is why everyone should have a quality savings account.

Since nearly every bank offers this type of account, plenty of options are available. But they’re not all created equal. Rates, fees, and other features vary quite a bit, so using the wrong account could cost you.

It helps to know what to look for so you can separate good savings accounts from those you should avoid. Whether you’re shopping for a new savings account, or you want to see if your current account checks all the boxes, here are the features you should get.

1. High APY

Good news: The best savings accounts are offering their highest rates in years. Rates above 4% are common now, and some are even offering over 5%.

Bad news: Most people aren’t taking advantage of high rates. Only 31% of Americans have a savings account with an APY of at least 4%, according to savings account research by The Motley Fool Ascent.

The people who don’t have a high-yield savings account are missing out on a lot of money. The average savings rate is just 0.46%, and some of the biggest banks offer as little as 0.01%. For comparison’s sake, on a $5,000 balance, a savings account with a 5% APY will earn you $250 per year. A 0.46% APY earns you $23. And a 0.01% APY earns you $0.50.

2. No monthly fees

Many banks charge a monthly fee for their savings accounts, normally anywhere from about $5 to $15. This is most common with brick-and-mortar banks. Sometimes it’s called a maintenance fee, and sometimes it’s called a service fee, but the end result is the same. You lose money while your bank gets richer.

To be fair, banks that charge these fees typically waive them if you meet certain conditions, such as maintaining a minimum balance. But an easier option is to get a savings account that doesn’t charge monthly fees.

Online banks often don’t charge maintenance fees on their accounts. These also tend to be the banks that offer the highest interest rates, so it’s a win-win.

3. A reasonable minimum balance requirement

There are a few minimum balance requirements to look out for with a savings account:

A minimum deposit to open the accountA minimum balance to keep the account openA minimum balance to earn the APY

Plenty of savings accounts don’t have minimum balance requirements. Choose one of these if you don’t have much saved yet, and you don’t want to worry about depositing or maintaining a certain amount.

A minimum balance requirement isn’t necessarily a problem, if you’re able to meet it. For example, one popular savings account offers an APY of over 5%, but you need a balance of $5,000 or more to earn the max APY. If you don’t have $5,000, it wouldn’t make sense to open that account. But if you do, then it could be a good choice.

4. FDIC or NCUA insurance

No matter which savings account you choose, you want the peace of mind that your money is safe. That’s where insurance comes in.

Before you open a bank account, see if it’s a member of the Federal Deposit Insurance Corporation (FDIC). If so, that bank is FDIC-insured. In the event of a bank failure, you’re covered for up to $250,000 per eligible account.

With credit unions, insurance is provided by the National Credit Union Administration (NCUA). So if you’re looking at a savings account offered by a credit union, check that it’s NCUA-insured. If so, your savings will be covered up to that same $250,000 limit should the credit union fail.

If your current savings account doesn’t have all those features, it’s worth finding one that does. Opening a new account is a quick process, too. You can do it online in under 20 minutes with many banks. With how convenient it is, and all the great options available, there’s no reason to settle for anything less than the best.

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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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Amazon should be saving you money, not costing you. Read on for ways to curb your spending on the site this year. 

Like many consumers, I’m someone who makes a fair number of purchases on Amazon each year. And many of those purchases are more than justifiable.

I order things like dog food and basic toiletry items on Amazon because I find that the prices there are the most competitive for the specific things I need — even less expensive than Costco. (To be fair, Costco also doesn’t carry every brand I use.) And Amazon is usually my go-to source when I need a birthday gift for a child or things like socks and gloves, which my kids have a magical way of wearing out rapidly or losing.

Recently, I decided to take a look at my Amazon spending for 2023 and, well, let’s just say it was a big number and leave it at that. This year, I’d like to reduce my Amazon spending, and you may want to do the same. Here are some tactics you can use to go about that.

1. Avoid big sales events

Last year, Amazon hosted not just one, but two Prime Day shopping events, each of which was a two-day affair. And consumers definitely took advantage. Data from Adobe Analytics found that U.S. shoppers spent a whopping $12.7 billion on Prime Day in July alone.

I know it can be hard to stay off the site during those so-called mega sales. But, shopping during those events could cause you to spend money needlessly.

See, when you know there’s a big sale going on, your brain is wired to find something to purchase to avoid missing out on a savings opportunity. But buying a $50 kitchen gadget on sale for $30 doesn’t mean you’re saving $20. Rather, it means you’re spending $30 for no good reason. That’s not exactly good for your finances.

That’s why you’re better off not shopping on Amazon during talked-up sales events unless there’s a specific item you’re looking to purchase. And even then, don’t assume you’ll get the best deal on Prime Day, or during an event like Cyber Monday, either.

2. Track prices by maintaining a wish list

Amazon is known for its competitive prices, so it’s natural to assume that any item you see listed is being offered at a good price. But that’s not always the case.

It may be that you wound up spending more money on Amazon last year than necessary because you didn’t take the time to track prices. Going forward, if there’s an item you need but don’t have to have right away, put it on your wish list and track the price. Or, stick it into your cart and save it for later.

You may find that a $30 toy you’re looking at for your child’s birthday gets marked down to $22 at some point. If you want that gift by mid-March, start tracking its price in mid-January.

You can also add a browser extension, like Honey, that helps you track prices on sites like Amazon. Keepa is another option to consider. Just do some research since certain tracking tools could potentially pose security risks.

3. Don’t store your credit card information in your account

I love the convenience of ordering things on Amazon. But trust me when I say that if I’m scrolling the site at 11:00 p.m. from my bed and see something I’m tempted to buy, there’s pretty much no way I’m going to walk downstairs in my pajamas, bust out my wallet, and enter my credit card number if it’s not already stored in my account. Instead, I’ll most likely skip that purchase due to laziness.

You may want to use laziness to your advantage, too, if it helps you minimize your Amazon spending this year. The simple act of not storing credit card information could spare you a host of impulse purchases.

If you spent an almost shocking amount of money on Amazon last year, don’t worry — you’re in good company. But it pays to do what you can to lower your Amazon spending in 2024, especially if you have other big goals you’re working toward.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Costco Wholesale. The Motley Fool has a disclosure policy.

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