Category

Money Management

The 15 Most Charitable Places in America

By Money Management No Comments

 These major metropolitan areas account for the most charitable donations across the U.S. myboys.me / Shutterstock.com

Editor’s Note: This story originally appeared on Upgraded Points. With the winter holidays in full swing, nonprofits and charitable organizations are in the midst of “Giving Season” — one of the busiest times of year for charities in the U.S. The season kicked off with “Giving Tuesday” on Nov. 28 and runs through Dec. 31. According to Network for Good, 30% of all annual nonprofit giving…

 Read More 

This Is How to Use ‘Buy Now, Pay Later’ Without Falling Into Debt

By Money Management No Comments

Buy now, pay later loans can be risky, but they don’t need to lead you into a spiral of debt. Follow these tips to avoid long-term debt if you use BNPL. 

Image source: Getty Images

Buy now, pay later (BNPL) services may seem like a smart way to avoid debt. If you pay on time, you’ll usually avoid interest and late fees. Most agreements split your purchase up into four biweekly payments, the first of which is due at the time of purchase, so you can expect to pay off the loan within six weeks.

But BNPL still puts you at risk of falling into debt, particularly if you take on multiple loans at once. More than a quarter of customers who used these loans said they’d either made a late BNPL payment or missed a payment, according to a July 2023 survey by The Ascent, which can lead to accruing interest and late fee charges on top of the amount you originally borrowed.

It’s possible to use buy now, pay later without digging yourself into debt. Follow these four tips to avoid debt when you pay with BNPL.

1. Only make purchases that are necessary

Some people have reportedly used BNPL to pay for necessities, like gas and groceries, but beauty and apparel (read: non-essentials) remain the most popular categories for BNPL. To avoid getting into debt, use BNPL only for purchases that you can’t afford to delay.

For example, using buy now, pay later could make sense if you need a new laptop for school or a bike that you’ll use to commute to work. But if you’re looking to buy a sweater or AirPods, step back. Save up for a few weeks, and then pay for your purchase in full.

2. Work BNPL into your budget

Using BNPL financing is still taking on debt, even if it doesn’t feel like it, so it’s essential to work your payments into your budget for the short term. Make sure you’ll have enough money in your bank account to cover each payment. If you realize you’ve overextended yourself, you may need to take on a side hustle, work extra shifts, or cut back on other expenses to avoid missing payments.

You may be able to select payment dates that sync with your paydays, but not all BNPL services give you this option. Find out when your payments are due and whether you have the option to change them before you enter into the agreement. If you struggle with managing multiple bills and due dates, a budgeting app can be helpful.

3. Avoid making payments with a credit card

One of the big reasons for using BNPL is to avoid paying interest on your purchases. Most BNPL users have their bank accounts or debit cards to make purchases, but many lenders allow you to make payments using a credit card. To avoid paying interest and taking on additional debt, use your bank account or debit card for payments instead of your credit card.

4. Stick with one loan at a time

If you use BNPL, stick with one loan at a time. Multiple loans can lead you to take on more debt than you can afford to repay. Because you’re juggling many different payments, you also have lots of due dates to keep track of, which can put you at risk of overdrafting your account.

Is using BNPL better than a credit card?

BNPL isn’t necessarily better or worse than a credit card. The best way to pay for a big purchase depends on your financial situation.

If you’re worried about paying interest, keep in mind that credit cards typically have at least a 21-day grace period from the end of a billing cycle and when your payment is due. Interest won’t accrue if you pay off your balance in full before the due date. You can also avoid paying interest if you qualify for a 0% interest credit card, though keep in mind that your 0% APR is only temporary.

On the other hand, BNPL can be a decent option if you can’t afford to pay for a purchase in full but don’t qualify for a credit card. Be aware, though, that BNPL loans typically won’t help you build credit. If you’ve been rejected for traditional credit due to a bad credit score or limited credit history, consider applying for a secured credit card to build a payment history.

Buy now, pay later is a type of debt, so make sure you have a plan to tackle it before you make your purchase. But if you understand what you’re getting into, a BNPL loan doesn’t need to turn into long-term debt.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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.

 Read More 

Finding Affordable Winter Travel Options: Easier Than You Think

By Money Management No Comments

Thinking of taking a winter vacation, but don’t have a massive travel budget? It’s possible to find less costly winter getaway options. Give these tips a try. 

Image source: Getty Images

Hoping to escape the cold and dreary weather this winter? You might want to book a winter escape. While many people travel in the summer, that’s not the only time to take a trip. Having an exciting vacation to look forward to can make the long winter months more bearable. And guess what? Winter travel doesn’t have to break the bank. I’ll share some tips to help you find affordable winter travel options so you can start planning a fantastic ultimate getaway.

1. Be flexible with your travel dates

If you’re considering traveling during the winter holidays, you can expect to pay a premium because everyone else has the same idea. There are fewer unoccupied airplane seats and hotel vacancies during popular travel times.

You’ll have better luck keeping your travel spending to a minimum if you have flexibility with your dates. In addition to avoiding winter holiday travel, it can also be beneficial to look at weekday versus weekend date pricing. Doing this allows you to pick more affordable trip dates.

2. Use a search tool to choose a budget-friendly airfare

The most costly expense for many travelers is airfare — unless they’re taking a road trip. One of my favorite ways to find affordable flights is to use airfare search tools like Google Flights.

You may be familiar with tools like this, but there’s one hack you may not know. You don’t have to enter a specific destination when using Google Flights to research flight costs. Instead, you can search “Anywhere” and compare destinations by price.

This feature makes it easier to find a winter travel destination that won’t leave you feeling broke. But before rushing to buy your plane tickets, research accommodation prices and other local travel costs to ensure you can honor your vacation budget. You don’t want to book an incredible flight deal, only to find out later that food and accommodation are overly costly.

3. Let travel deals inspire you

Another way to find affordable winter travel options is by looking for travel deals. Pay attention to emails from your favorite hotel chains and airlines. There may be winter getaway sales you can book that allow you to take an incredible winter vacation without spending much money. You can also look at each airline’s website to see if current deals are being promoted.

You might consider paying for a flight deals subscription service if you’re a frequent traveler. Services like this send airfare alerts via email. After becoming a member, you’ll be sent airfare deals throughout the year, including winter.

4. Explore destinations closer to home

A vacation doesn’t have to be hundreds or thousands of miles away to be fun. You may want to explore destinations within a few hour’s drive of your home. Of course, you’ll want to ensure your car is winter-ready and verify that your AAA membership is still active in case you need roadside assistance.

Some winter getaway options include retreating to a cozy private cabin, booking a few days at a resort with a fantastic spa, or driving a few hours to spend time at a nearby ski lodge.

Stepping away from your busy routine and everyday environment could be just what you need to feel refreshed. Don’t feel pressure to pick a faraway destination when planning your trip. It may be easier to honor your vacation budget by selecting a closer, drivable destination.

Earn rewards on your spending

One final tip: Don’t miss out on the chance to earn valuable credit card rewards. You’re likely going to use a credit card to pay for your travel costs, so don’t forget to swipe a rewards credit card. You can redeem the rewards you earn for future travel, making your next vacation less expensive. Check out our list of the best travel rewards credit cards to learn more.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

 Read More 

Why You Should Never Overlook Hidden Fees in Holiday Travel

By Money Management No Comments

Hidden fees cost consumers big bucks. Find out how to spot them when booking your holiday travel. 

Image source: Getty Images

Americans plan to spend an average of $2,005 to travel this holiday season and will likely encounter hidden fees for their hotel rooms and airfare. These “junk fees” are often out of sight when looking for travel deals and then rear their ugly heads just as consumers are about to tap the purchase button.

A Consumer Reports survey found that 35% of respondents encountered hidden fees for air travel, and 37% saw them when booking hotel stays. And these fees are more than just a minor nuisance. Pre-pandemic, hidden hotel fees cost consumers $2.9 billion annually.

The junk fees can quickly bust your holiday travel budget and wreak havoc on your personal finances. Here’s what fees to look out for when booking your holiday travel and how to avoid them.

Common hidden travel fees

In your search for great travel destinations, you’ve likely come across an airfare or hotel room that was priced suspiciously higher once you added it to your cart and made it to the checkout page. Many hidden fees — travel and otherwise — can add up to 20% to the original price.

Here are some of the common travel fee culprits:

Baggage fee: Some airlines charge a fee for extra checked bags and may even charge for one checked bag.Parking fee: Many hotels charge a daily parking fee, even if it’s not valet parking.Resort fee: Many hotels now charge a resort fee for amenities.Airfare seat selection: Some airlines charge to select a specific seat or to sit with others in your travel party.Early check-in/late check-out fees: What was once a courtesy move by hotels has become an additional revenue source.Gym fee: Yes, some hotels are now charging you to use the gym.Online reservation or booking fee: When booking travel plans, you may encounter a general booking or reservation fee added to your final cost.

While hotels can charge many hidden fees, it hardly compares to what airlines charge. Data from the consulting company IdeaWorks shows that baggage fees increased 39% between 2021 and 2023, totaling $20.9 billion worldwide.

How to avoid fees during holiday travel

The bad news is that it’s not always possible to avoid paying fees when traveling. But completely overlooking them is a mistake, too, because there are a few steps you can take to steer clear of them.

When making your travel plans, check multiple booking sites and go through the full booking process, but stop short of buying your hotel or plane ticket. Doing this will show you all of the applicable fees.

The downside is that you’ll have to spend time putting all your travel information into a booking app to see all the potential fees. To speed up the process, you may want to try the website Resort Fee Checker. You can search cities and specific hotels to see which ones charge fees and how much they are.

The good news is the government is taking steps to help consumers avoid paying these junk fees. The Federal Trade Commission (FTC) has already proposed a rule to ban businesses from charging hidden fees. The government has also taken some steps to help consumers find fees, including creating the website Flight Rights to show travelers which airlines charge families fees to sit together.

Hidden fees can demolish your travel budget, so be mindful of them as you plan your next trip. And if fees are putting a damper on your holiday travel plans this year, remember that a staycation is always a good option.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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.Citigroup is an advertising partner of The Ascent, a Motley Fool company. Chris Neiger 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.

 Read More 

Shocking Stats: How Tipping Culture Varies Around the World

By Money Management No Comments

For some, the practice of tipping in the U.S. has gotten out of hand. Read on for some surprising facts about how tipping is handled in other countries. 

Image source: Getty Images

Recently, Pew Research gathered a fascinating array of responses to questions posed about tipping in America. For one, 72% of U.S. adults say they’re expected to tip in more places today than five years ago. In other words, “tipflation” is real to them. Roughly one-third of respondents say they know how much they’re expected to tip. The rest of us are sort of muddling our way through.

As we Americans navigate the new tipping landscape, we thought it would be interesting to learn how tipping cultures around the world vary. We think you may be surprised by some of what we found, especially the subtle expectations in countries where tips are already built into the price.

Europe

Europeans find our American tipping habits a bit odd and, in many of their countries, quite unnecessary.

What’s expected

Many countries with the European Union already have laws in place to ensure employees are fairly compensated. Among the countries that typically add a service charge to the bill are France, Spain, Hungary, Sweden, and the Czech Republic. To do away with tipping, the Netherlands requires establishments to include gratuities in their prices.

Four European countries that do not have a strong tipping culture are the United Kingdom, Ireland, Germany, and Portugal. Any gratuity you decide to leave is up to you. And if you’re not sure about whether it’s appropriate to tip, like bartenders or drivers, it’s a nice idea to round up the bill if service was excellent.

Tipping is not regularly practiced in Italy, Austria, or Russia. However, wages are so low in those countries that rounding up your bill is much appreciated — a tip can improve a worker’s personal finances.

Exception

If you receive exceptional service in any of these countries, a small tip of 5%-10% is considered generous and much appreciated.

What to look out for

It seems that some parts of the world have begun to catch on to the American habit of tipping. Before deciding whether you’re going to tip, check the bill, as some places include a service charge.

One final note: If you’ll be visiting a resort, these rules may not apply. Your best bet is to check sites like Tripadvisor.com to learn what previous guests have to say.

The Americas

Something Central and South America have in common with restaurants in North America is low wages. Tips represent a substantial portion of server income.

What’s expected

Due to the importance of tips on the income of servers in this region, the only reason not to tip in the Americas is if you receive exceptionally poor service.

Tipping is a relatively new concept in Mexico, but a gratuity of at least 10% has become the norm.

You’ll probably encounter a “sit-down charge” of 10% at restaurants in Costa Rica, Chile, and Brazil. No one expects a tip on top.

Exception

Depending on the restaurant, sit-down charges may not be shared with servers, so if you’d like, handing the server an extra 5%-10% in cash is a nice move.

What to look out for

If you decide to hand a tip to a server in Brazil, make it discreet, as polite business transactions are low-key.

The Middle East and portions of Africa

Though very different in many parts of their culture, the Middle East and portions of Africa share a lot of the same tipping etiquette as we have in the U.S.

What’s expected

Tip like you’re at home because tipping is both customary and expected in Africa and the Middle East. How much that tip should be varies by restaurant and the general economic condition of the country. For example:

Servers in Saudi Arabia, the United Arab Emirates, and Qatar are accustomed to the same 15%-20% tip American servers expect. This applies even in areas that already charge a 10% service charge.In Africa, waitstaff in Morocco, Jordan, and South Africa expect a tip of at least 10%-15%. If it helps soften the blow, remember how little workers earn in these countries.

When you receive extraordinary service

How much you tip is naturally up to you, but if the service is out of this world, adding a bit more is considered thoughtful.

What to look out for

Restaurants in Israel and Egypt frequently add a service charge to the bill. Take a look at the bill before putting down any cash to prevent double-tipping.

If you’re visiting Sub-Saharan Africa, hand any tip directly to the person who provided the service. Let’s say you pull out your Visa card to pay for the meal. Any tip you leave using the card may never make its way to the server.

Travelers in the Middle East are frequently asked for “baksheesh.” In short, they’re asked for a tip or to pay a service charge (and sometimes a bribe). Whether or not you comply is up to you, and a baksheesh request can be refused.

Asia and the Pacific

In many parts of Asia and the Pacific, not only may tipping not be customary, it might be considered downright unnecessary.

What’s expected

Unless you’re in a tourist area, there’s not much of a tipping culture in East Asia or the South Pacific. In fact, if you offer a tip, it may be turned down.

For example, tipping is considered unnecessary in China, Singapore, Taiwan, and Myanmar. In Japan and Nepal, the culture teaches that providing good service is part of life and tips should only reward exceptional service. Do not be surprised if a Japanese server politely refuses a tip.

Tipping is not considered customary in India, Malaysia, Vietnam, Cambodia, Indonesia, Thailand, or parts of Turkey. Even though they are becoming more open to receiving tips, it’s not considered rude if you don’t leave one. And if you do leave a tip, it’s fine if it is modest.

Staff are paid well in Australia and New Zealand, and tips are not expected, although a small gratuity is often appreciated.

When you receive extraordinary service

In any of these countries, tipping is totally up to you. However, you’re likely to leave a server with a smile on their face for rewarding them for excellent service.

What to look out for

Do not be insulted or embarrassed if a server politely refuses a tip. If they truly seem hesitant to accept a tip, let it go.

The bottom line on tipping internationally

You’ll notice that we have touched on only a few of the 195 recognized countries in the world. One way to ensure you’re respecting local customs is to research each country you plan to visit and take note of its tipping culture.

There’s no denying that international travel takes a bite out of your bank account. Knowing what to expect in terms of tipping can help you come up with a realistic travel budget before setting off on your international adventure.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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

 Read More 

Here’s the Salary It Takes to Buy a Home Today

By Money Management No Comments

Buying a home is an expensive prospect. Read on to see how much income you might need. 

Image source: Getty Images

There’s a reason so many would-be buyers have struggled to enter the housing market in 2023. Not only have mortgages been expensive to sign, but home prices have been elevated, largely due to a glaring lack of inventory.

Now, the amount of money you’ll need to earn to buy a home will depend on where you want to live and the cost of properties there. But you may be curious as to what it takes to buy a median-priced home today. And the number might shock you.

You need a six-figure income for a median home today

Home buyers today need to earn $114,627 to afford the median-priced U.S. home, according to a new report from Redfin. That’s a 15% increase from a year ago.

To put it another way, a buyer today needs to earn $15,285 more than they did a year ago to afford a median home. And buyers need 50% more income to afford a median home compared to the start of the pandemic.

How much house can you afford?

There’s a general home affordability rule that buyers are advised to follow: Your housing costs should not exceed 30% of your take-home pay. In some markets where home prices are incredibly high, following this rule may not be possible. But it’s optimal to keep your housing costs to 30% of your pay or less so you have plenty of wiggle room to cover your various expenses.

To be clear, though, that 30% should include your mortgage payments as well as peripheral homeownership expenses like property taxes, homeowners insurance, and homeowners association fees, if applicable. Don’t just consider your mortgage alone.

That said, while 30% is the general rule of thumb when determining home affordability, if you have certain expenses that are higher than average or a lot of existing debt, then you may want to limit yourself to a smaller percentage of your pay.

For example, perhaps you have three kids in full-time daycare while you and your spouse work. Even if your combined income is enough to afford a home in your area, you may be spending so much on daycare that you really can’t comfortably swing a home purchase.

Similarly, you might have a lot of debt you’re trying to pay off. In that case, you’d potentially want to keep your housing costs to less than 30% of your pay so you can continue to chip away at your debt.

Affordability isn’t the only thing to think about

Maybe you technically earn enough to buy a median-priced home in your neighborhood. You might even earn enough to buy one of the more expensive homes in your neck of the woods. But just because you can afford to buy doesn’t mean that you should.

The more money you spend on housing, the less you’ll have available for other things. You don’t want to end up in a situation where you’re sinking so much of your income into housing that there’s little to no money left over to do other things that are important to you, like travel or enjoy hobbies.

All told, it takes a lot more money today to afford a home than it did in the past. In the coming years, that could change if home prices start to come down and mortgage rates follow suit. But if you’re eager to buy a home today, make sure to run your numbers carefully and consider your overall financial picture before moving forward with an offer.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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.

 Read More