Money Management

Should you buy a drink package on your next Royal Caribbean cruise? Find out what you need to know to decide. 

Royal Caribbean offers several different drink packages. It has the Classic Soda Package, which is the cheapest and includes unlimited Coca-Cola Freestyle beverages and a souvenir cup. There’s the Refreshment Package that includes pretty much any non-alcoholic beverage available on board, except for products at licensed Starbucks stores (which are on certain ships).

However, when most people refer to the “drink package,” they are talking about the Deluxe Beverage Package, which includes pretty much every alcoholic and non-alcoholic beverage you can find on the ship (with the same Starbucks exemption).

What does the Deluxe Beverage Package include?

Specifically, here’s what you can get with the Deluxe Beverage Package:

BeerWine by the glassDiscounts on wine by the bottleCocktails and mixed drinks with a menu price of $14 or lessCan and fountain sodaFresh and bottled juicesPremium coffee and teasBottled and sparkling waterMilkshakes at Johnny Rockets on board

It’s worth noting that this is truly an unlimited drink package. Some other cruise lines have an official limit — for example, Carnival’s drink package technically limits guests to 15 alcoholic drinks per day. But as long as you don’t appear intoxicated (you’ll be cut off quickly if you do), you can use this package to buy as many drinks as you want.

Also, drinks that come with souvenir glasses are not included, and if one person buys the package, every person of legal drinking age in the same stateroom must buy the package.

Full price is expensive

The list price for the Deluxe Beverage Package is rather high, especially compared with some competitors. The standard onboard price can be as high as $115 per day, and on an upcoming sailing I have booked, that is indeed the case. For comparison, Carnival’s CHEERS! Package costs just $59.95 per day if booked in advance for longer cruises.

However, there are a couple of things to know. First, the price for Carnival’s package does not include gratuity, while Royal Caribbean’s does. An 18% gratuity is added at the time the CHEERS! Package is purchased, so this narrows the gap a bit.

Second, you can almost always get a better deal on Royal Caribbean’s Deluxe Beverage Package. It is significantly cheaper if booked in advance and frequently goes on sale. Travelers have reported paying as little as $56 per day, and on my upcoming sailing, there’s an offer that makes the second package in a stateroom 50% off, effectively lowering the all-in cost to $85.99 per day. That’s still a lot for a multi-day cruise for two people, but is far better than the full onboard price.

Is it worth the price to you?

Obviously, the key factor is whether you will use the Deluxe Beverage Package enough to make it worth buying as opposed to simply paying for drinks as you go. But there are a few things to consider

First is the regular price of drinks. Beer typically costs $7 to $9, wine is generally $9 to $25 per glass, and cocktails and mixed drinks cost $10 to $14, according to travel website The Points Guy. And don’t forget the value of the sodas, juices, and premium coffees you’ll get.

Second is the price you pay. If you can get the package for, say, $70 per day, it can be much easier to justify than if your cost is $90 per day. You can also potentially save money by using a travel credit card that has a high cash back rate on travel spending.

There’s also the details of the cruise itself to consider. If it stops at either of Royal Caribbean’s private island destinations (where the package works) or you have several days at sea, you may use it more than if the cruise mostly visits traditional ports.

Finally, there are some free drinks available to members of Royal Caribbean’s Crown and Anchor Society loyalty program who have Diamond status or higher, and members who have reached Prime status in the casino can drink for free at the casino bar whenever it’s open. If either of these apply to you, it can be more difficult to justify the Deluxe Beverage Package.

The bottom line is that there isn’t a simple yes or no answer to the question of whether Royal Caribbean’s Deluxe Beverage Package is worth buying. It depends on how much you’ll use it and all of these other factors, specifically the price you’ll have to pay.

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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.Matthew Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy.

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JPMorgan CEO told the Senate Banking Committee that proposed changes to the banking system will harm everyday Americans. Find out why he’s worried. 

What happened

Top banking executives, including JPMorgan CEO Jamie Dimon, addressed the Senate Banking Committee on Wednesday as part of its annual hearing into Wall Street oversight. Their testimonies covered a number of themes, including the impact of various regulatory proposals on banks and their customers. Dimon told the committee that the proposals will “harm everyday Americans.”

So what

In prepared comments, Dimon urged lawmakers to consider the combined impact of the proposals. He singled out changes to the way banks manage capital, limits on merchants’ credit or debit card transaction fees, and a cap on credit card late fees. In his view, these proposals would have unintended consequences for consumers and could do “serious harm to the American economy.”

For example, Dimon says proposals to limit what banks charge merchants for processing card transactions could have a “devastating” knock on effect for lower-income customers. Why? He says banks may then increase their other fees or limit their free banking services.

Now what

Committee Chairman Sherrod Brown did not share Dimon’s views. He told the banking leaders, “What your banks want is to maximize quarterly profits — the cost to everything and everyone else be damned.”

While bankers and politicians debate changes to the system, as a consumer there are already several ways you can protect yourself against banking fees.

Look for fee-free checking accounts: Given that one recent MoneyRates survey put the average monthly checking account fee at $13.95 per month, it’s worth checking out our list of free checking accounts. Some accounts charge zero maintenance fees while others waive the fee if you meet certain requirements. These might include making a certain number of deposits or keeping your balance above a set amount.Understand your bank’s ATM fee system: Many banks charge around $2.50 each time you use a non-network ATM. If you often find you’re paying ATM fees, consider an online bank that might reimburse those costs.Learn more about overdraft and overdraft protection fees: Overdraft fees and policies vary considerably from bank to bank. Find out what your bank will charge if you make a payment that would send you into the red. Ask whether there is a buffer period or other policies to minimize the damage of these fees. For example, some banks may give you 24 hours to deposit money before hitting you with charges.

It’s good to be aware of both the intended and unintended consequences of potential regulatory changes. In the meantime, bank account fees can already cost hundreds of dollars a year if you’re not looking for ways to avoid them.

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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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Select Verizon customers can now save money when bundling Verizon and HBO Max services. Find out how to get this streaming bundle deal. 

With so many streaming services available, subscription costs can add up quickly. Thankfully, streaming bundles can help you save money on entertainment expenses like this. If you’re a Verizon customer, you may be able to get a discount on your favorite streaming services.

Beginning Dec. 7, Verizon myPlan customers can access a new streaming service bundle. Eligible customers can get ad-supported Netflix and HBO Max for only $10 a month. Here’s what you need to know about this brand-new offering.

Save $7 a month with Verizon’s new Netflix and Max bundle

Whether you’re already subscribed to Netflix and Max or have been meaning to try these services, you don’t want to ignore this deal. As of Dec. 7, Verizon myPlan customers can access both streaming services for a $10 monthly fee.

The bundle gives you access to ad-supported Netflix and Max content. If you opt for this deal instead of paying for each service separately, you’ll save $6.98 each month — or $83.76 a year. You could use the money saved to pay other household bills or boost your savings account balance.

This is the second streaming service bundle available to myPlan customers. The Disney Bundle, which offers savings of $8.99 monthly or $107.88 yearly, provides access to ad-free Disney+ Premium, Hulu with ads, and ESPN+ with ads. The bundle costs $10 a month.

You must have an eligible mobile service plan to qualify for this deal. Verizon customers with myPlan Unlimited Welcome, Unlimited Plus, and Unlimited Ultimate plans can access the new Netflix and Max with ads bundle. If you’re not a Verizon customer or have a different plan with this provider, you can enroll in an eligible plan to save money on streaming costs with this deal.

Life continues to get more expensive. Any money saved can make a big difference. If you’re working hard to achieve your financial goals, you may want to consider this deal. Take advantage if you’re paying for both services and are a Verizon customer with an eligible plan.

Other ways to save money on streaming service costs

Streaming apps are a convenient entertainment solution and can be enjoyed at home and on the go. If you like to use multiple services and feel like subscription prices are getting too high, here are a few suggestions that could help you save money on streaming services costs.

Downgrade your plan: While ad-free streaming content is preferable, these plans cost more. If you need to trim your spending and don’t want to give up your favorite streaming apps, consider downgrading your plan to one with ads to save on subscription fees.Avoid paying for multiple services at once: You’ll pay more if you use multiple streaming platforms. Instead of paying for numerous apps at the same time, rotate them. Signing up for one streaming app at a time could offer significant savings.Sign up for a free trial: Many streaming apps offer free trials to new users. If you’re considering adding a new service to your repertoire, check whether a free trial is available. This allows you to test the service before spending money on it.Use your credit card perks: Some rewards credit cards offer streaming app savings opportunities. When you use an eligible credit card to pay for select streaming subscriptions or bundles, you can get a statement credit to your credit card account.

Don’t ignore savings opportunities that allow you to keep more money in the bank. Check out our free personal finance resources for additional ways to save money on everyday expenses.

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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.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy.

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Credit cards with an intro 0% APR period help you finance big purchases, but they can hurt your credit score. Find out what could happen here. 

For those planning to purchase big-ticket items soon, a 0% intro APR credit card could be an appealing way to finance them. These cards come with a period of 0% interest, sometimes for as long as 15 to 21 months, during which you won’t incur interest charges on unpaid balances. This gives you plenty of time to pay off what’s owed before the 0% intro APR period ends and the high interest charges commence.

That said, charging large purchases to a 0% intro APR credit card isn’t without its risks. You may not be paying high interest, but you could be taking a hit to another part of your finances — your credit score. If you need good credit right now, a 0% intro APR credit card may not be the best decision. Here’s why.

Large purchases can weigh down your credit utilization

Credit utilization measures how much credit you’re using versus how much is available to you. For instance, if you have three credit cards with $20,000 in available credit, a balance of $5,000 would mean you’ve used 25% of your total credit. While it’s advisable to keep your credit utilization below 30%, higher FICO® Scores tend to belong to those who have even lower utilizations.

This is where charging large purchases to a 0% intro APR credit card could cause some trouble. Sure, you may not pay interest for a limited period. But you’ll bring up your credit utilization, effectively bringing down your score. The damage isn’t permanent, but it could affect your personal finances in the short term.

For instance, if you’re using $1,000 of your $20,000 in available credit, your credit utilization would be 5%. If you added a credit card with a $5,000 credit limit and charged up to the limit, you would be using $6,000 of $25,000, which is now 24%. Quadrupling your credit utilization in this way could cause your score to drop by double digits.

Expect a minor credit score drop from the hard inquiry

Whenever you apply for a new credit card, you authorize a hard inquiry on your credit report. Hard inquiries stay on your report for two years and could cause your score to drop by 5 to 10 points. The dip is temporary, but if you’re applying for multiple credit cards in a short period, it could be more than you’re willing to stomach.

Make a plan to avoid setting yourself up for more damage later

Finally, it’s important to remember that the 0% APR period doesn’t last forever. When it ends, your purchases will start accruing interest at your card’s regular APR. Your monthly payments could be substantially higher, which could overwhelm you and risk putting you into credit card debt.

One way to avoid debt is to make a repayment plan before you open the card account. Knowing how much you can pay per month, as well as the date when you’ll have the card paid off, could go a long way toward helping you improve your credit score. For instance, if you’re charging $5,000 to a card with 15 months of 0% interest, you should pay at least $350 monthly to pay off the balance before the period ends. If you can’t do that, you may want to reconsider the purchase.

All in all, credit cards with 0% intro APRs can be a smart tool to finance purchases, especially if you’re in an emergency situation. Just proceed with caution and be prepared for a dip in your credit score. As long as you pay off what you borrow, your score will rebound — and you won’t have to lose money to high-interest debt.

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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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If you drive a vehicle, your state probably requires you purchase third-party auto insurance. Read on to learn more. 

You’re on the hook if you’re at fault for hitting a driver with your vehicle. That’s where third-party insurance, or liability insurance, comes in. Third-party auto insurance pays for costs when you’re at fault for damaging another person or property.

If you’re a car owner in the United States, you’re legally required to purchase third-party auto insurance. Notable exceptions include residents of New Hampshire, Arizona, and Virginia.

What does third-party auto insurance cover?

Third-party insurance covers people and property damage done to third parties.

It covers people whom you injure in the event of an accident. Medical bills, lost wages, and suffering caused by the accident are all covered.It covers property you damage in the event of an accident. That includes vehicles, fences, and other structures damaged due to the accident.It covers legal fees. If a victim sues you for injuring them, third-party auto insurance pays for legal expenses needed to resolve the case.

How much does third-party auto insurance cost?

In 2019, the average annual cost for U.S. third-party auto insurance was $650.35, according to the National Association of Insurance Commissioners. The cost of insurance varies by policy and state. It also depends on where a person lives, their age, and other factors.

Before anything else, check how much damage your state requires you to cover with your third-party policy in the event of an accident. Each state has its minimums, ranging from $5,000 to $25,000 in damages.

You can buy more or less third-party coverage. How much you pay for coverage depends on how much car insurance you need.

What is not covered by third-party auto insurance?

Third-party insurance is the bare minimum required to hit the road legally. It covers damage you cause to people and property, but there are many things it doesn’t cover:

It doesn’t cover damage to your body. Third-party insurance only covers third parties.It doesn’t cover damage to your vehicle or property. Third-party insurance only covers third-party property.It doesn’t cover anything above your policy maximum. If your third-party insurance has a $10,000 limit, and you’re on the hook for $15,000 in damages, you are responsible for covering the $5,000 difference.

If you’re unable to pay tens of thousands of dollars in the event of an accident, consider purchasing more than the bare minimum insurance required by your state.

Other types of car insurance

You may want to take out policies that cover damage to your body, damage to your vehicle, or non-crash-related expenses, like auto theft. These policies can plug up the potentially money-draining holes left uncovered by third-party auto insurance.

Personal injury policies cover damage done to you in the event of an accident.Collision policies cover damage to your vehicle in the event of an accident.Comprehensive policies cover losses that aren’t crash-related, like theft and vandalism.

How much you pay for insurance depends on many personal and financial factors. The best car insurance companies will offer you the most bang for your buck.

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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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Gearing up for Chanukkah? Read on for ways to make your holiday one your family will always remember — without breaking the bank. 

Any time you have a major holiday or milestone to celebrate, the cost can really add up. Case in point: The National Retail Federation found that consumers expect to spend an average of $875 on holiday items this year, including gifts, decorations, food, and other holiday-related purchases.

Meanwhile, Chanukkah is just about to kick off, and you may still be scrambling to purchase gifts, decorations, and other items you feel are necessary to celebrate the holiday to the fullest. But before you run up a giant credit card tab, consider these ways to make the holiday meaningful without spending a fortune.

1. Focus on the tradition — not the gifts

Chanukkah is meant to commemorate the Jewish people reclaiming the holy Temple. It’s very much a story of underdogs emerging victorious against oppression. The reason for lighting candles centers on the miracle of just a small amount of oil sufficing to light the Temple’s menorah, or lamp, for a full eight nights instead of just one.

If you’re hoping not to raid your savings account too badly this year when celebrating Chanukkah, go easy on gifts. Instead, talk to your kids about the purpose of the holiday and what it means to believe in miracles. Also, discuss different strategies for overcoming challenges, whether they relate to school work, social situations, or sports.

2. Have a “give back” night

Chanukkah is very much a holiday of gift-giving. But that doesn’t mean you have to shower your family with gifts for eight nights in a row. One thing you may want to do is have a “give back” night, where your family signs up to volunteer for a cause that’s meaningful to all of you.

Another option? Spend a night going through toys at home, and if you find unopened or unwanted ones, consider donating them to local children in need.

3. Have a homemade gift night

Gifts from the heart really are the best ones. Instead of splurging at Target, give your family members at least one homemade gift that shows you put a lot of thought into it.

For your grandmother who loves classical music, that could mean recording a video of your child playing a timeless piece on the piano. For your sports-obsessed father, that could mean baking a cake with his favorite team’s logo you design with icing.

You can take different routes, and none of them have to cost a fortune. Some might not even cost a dime.

4. Enjoy a latke-fest

On Chanukkah, it’s tradition to eat foods fried in oil. And potato latkes, or pancakes, have become a holiday staple.

This year, have a true latke-fest. Try out a few variations of the classic recipe, and encourage your kids to get their hands dirty in the process. Just be warned that the smell of fried potatoes may be pungent enough to last eight nights if you don’t open your kitchen windows during the festivities.

5. Have your kids make all of the decorations

Chanukkah decorations can run the gamut from lights to banners to window decals. Instead of spending hard-earned money on decorations, put your kids to work with art supplies. It’ll give them something fun to do, and it’ll help them feel like they’re even more involved in bringing the celebration to life.

Chanukkah doesn’t have to cost a fortune, despite the holiday lasting more than a week. The key is to focus on the less materialistic aspects of the holiday — and the joy your traditions have the potential to bring.

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

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