Money Management

It’s easy enough to overspend when you’re celebrating a holiday that’s centered on gift-giving. Read on to see how I’ve overdone it in the past. 

Data from TransUnion finds that more than 50% of Americans intend to spend more than $500 on holiday purchases this year. When you’re celebrating a holiday like Chanukkah that’s eight nights long, it’s almost ridiculously easy to rack up a credit card tab that large.

Thankfully, I make a point to save money for the holidays during the year so I’m able to buy gifts without having to worry about debt. But even so, I don’t enjoy throwing my money away, so I try my best not to overspend — in general and in the context of the holidays.

In the past, though, I’ve definitely gone overboard with Chanukkah. I’ve since learned these valuable lessons that will hopefully prevent you from falling victim to overspending, too.

1. There’s no need to buy eight nights’ worth of gifts

Chanukkah is eight nights long, and it’s customary to light a candle on each of those nights and do something celebratory, whether it’s dance to a favorite song or enjoy some holiday chocolate. Because of its proximity to Christmas, it’s customary to give out gifts during Chanukkah. And you may feel compelled to buy eight nights’ worth of gifts.

Don’t. Your kids don’t need that much stuff, and — trust me on this one — by the fifth or sixth night, the novelty of getting gifts starts to wear off. If you set the right expectations with your kids ahead of time, you won’t feel pressured to give something eight nights in a row.

To be clear, when I say “don’t buy eight nights’ worth of gifts,” I’m talking about bigger-ticket items with a notable cost. A good compromise is to choose two or three nights — perhaps the first, last, and one in the middle — for your kids to get a “bigger” gift, and then give out stocking-stuffer-type items the other five nights. I’m talking about things like candy, bubble bath, and other things you can find for under $5.

2. There’s no need to shower a toddler with multiple gifts

When my kids were little, I didn’t want to deny them the experience of Chanukkah. I now realize how silly it was to buy multiple nights’ worth of gifts for toddlers who had no idea there was even a holiday going on.

Of course, many of us spend money on our kids when they’re super young, knowing full well they won’t really appreciate or remember any of it. After all, no infant is going to acknowledge that it’s their first birthday, yet all parents have probably thrown a small party and given out gifts nonetheless.

But in the context of Chanukkah, feel free to go the “one present and done” route. You can celebrate with your toddler for eight nights. But go easy on the gifting.

3. Dog gifts are cute, but they’re really just a waste

It gives my kids great joy to shower their already spoiled dog with gifts on Chanukkah, so in the past, I’ve indulged them. This year, I’m putting my foot down.

First, my dog doesn’t know it’s Chanukkah. Clearly. Secondly, any toy my dog gets his paws on is pretty much going to be ripped to shreds within minutes. So even a $10 chew toy becomes a giant waste of my financial resources when you consider that I’m paying roughly $2.50 a minute to see my dog destroy it.

If you want to include your dog in the festivities, give them an extra treat when you light your candles. But don’t waste your money on actual things.

Many of us are guilty of overspending on the holidays — no matter which ones we celebrate. But now, you can learn from my past mistakes and avoid going overboard this year.

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Gearing up to celebrate the Festival of Lights? Read on for ways to avoid overspending on your celebratory meal. 

Although Chanukkah lasts eight nights, many people who celebrate the holiday have a custom of gathering with family on just one of those nights for a gift exchange and feast. And the latter has the potential to get expensive if you’re feeding a larger crowd.

If you’re hoping to avoid a massive credit card tab in the course of your Chanukkah meal, here are some tips for keeping your costs down.

1. Don’t get fancy with your latkes

The story of Chanukkah centers on the Jewish people emerging victorious over their oppressors and reclaiming the holy Temple. Back then, it was customary to light a candelabra called a menorah with oil, but there was only enough on hand to last a single night.

Miraculously, though, that small amount of oil managed to last eight nights, giving the Jewish people time to replenish their supply in time. To put it into modern-day terms, it’s sort of like being stuck outside of the home for a full day and realizing your cellphone only has 15% battery — only instead of running out of juice before lunchtime, it somehow remains powered on until nighttime.

These days, it’s customary to eat foods fried in oil on Chanukkah. And potato latkes, or pancakes, are a common centerpiece of any Chanukkah feast.

If you’re looking to save money on your Chanukkah meal, don’t get needlessly fancy with those latkes. Gourmet chefs might publish recipes featuring different varieties, like turnip and beet latkes or those made of butternut squash. But there’s absolutely nothing wrong with sticking to a classic. And besides, your kids may be less inclined to enjoy the fancier stuff, anyway.

2. Go easy with desserts

Just as it’s customary to eat potato latkes on Chanukkah, so too are donuts a popular option because they also tend to be fried. But if you’ll be serving latkes and donuts, you may want to call it a day from there and avoid a trip to your local bakery for additional cookies and cakes.

Latkes and donuts can be very heavy and hard on the stomach. So chances are, this is one of those situations where a large dessert spread is going to constitute a waste of money.

3. Make it a BYOB affair

Some people like to enjoy a little wine with their Chanukkah dinner. Others might opt for a latkes and vodka pairing — because who doesn’t like a catchy rhyme?

If you want to conserve funds as you pull together your Chanukkah bash, make your feast a BYOB affair. And if you are going to serve alcohol that you pay for yourself, see if your local Costco or Sam’s Club has some affordable options that leave you spending less. (Note that alcohol is not available at every Costco or Sam’s Club location.)

Whether you’re hosting your Chanukkah feast on the first night of the holiday, the eighth night, or somewhere in the middle, there’s no reason to go overboard with it. And the less you spend, the easier it might be to cover the cost of eight nights’ worth of gifts.

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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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Winning big on a game show isn’t all rosy. Read on to see why a large prize could mean a huge tax bill. 

When my brother got tickets to be in the audience of The Price Is Right, he figured it would simply be an entertaining way to spend a day off. He didn’t imagine his name would actually be called during the show’s opening round.

But lo and behold, my brother was one of the first four contestants asked to come on down and participate in the iconic show that has you guessing at prices of various consumer goods. And as luck would have it, my brother was able to out-bid his competitors and move on for a chance at a new car — a car he won through savvy guessing, but also, a nice amount of luck.

My brother was ecstatic to have won such an awesome and valuable prize. But that prize wound up being a bit of a mixed bag.

Taking the money and running

My brother won a Hyundai Elantra with an estimated value of $25,415. He was happy to have won the car, but there was a problem — he already had a vehicle and didn’t need a second one. And he certainly didn’t want to have to bear the cost of auto insurance for a vehicle to largely just sit in his driveway.

Thankfully, my brother was able to work something out with the dealership. Instead of keeping the Elantra, he was able to use the roughly $25,000 credit he got to buy a used car from them and then sell it back for $21,000, which he took as cash. This route was worth it for him because sales tax and registration for a new Elantra would’ve been about $4,000. And now, my brother has a pile of cash he can add to his savings account instead of a car he doesn’t actually need.

Gearing up for a giant tax bill

My brother won two prizes on The Price Is Right — a grill package worth about $1,400 and the Hyundai Elantra. All told, it’s more than $26,000 in winnings.

But now, my brother is going to be looking at a pretty hefty tax bill on his prizes. And it doesn’t matter that he took cash for the car. He’s looking at paying that tax either way.

Now the exact amount will hinge on his total tax situation. What’ll probably happen is that my brother will receive a tax form from the game show summarizing the value of his winnings, and he’ll need to work with his accountant to figure out what it will cost him.

The good news is that my brother stands to gain something financially either way. But imagine you were to receive a $26,000 bonus from work. That’s a great thing. But you might end up effectively losing a large chunk of that $26,000 when you account for the portion you owe the IRS.

All told, my brother is grateful for his experience and now has a really fun story to tell. But if you’re planning to audition for a game show in the hopes of walking away with a huge amount of cash or a set of prizes, do know that winnings like that are considered taxable income. And it might take the input of a very seasoned accountant to help you reconcile your tax bill after coming away with that sort of haul.

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The Dollar Tree has glazed porcelain pumpkins and more exciting fall treats! Read on to find out how you can make your home an autumn paradise on the cheap. 

Decorating for different seasons is one of my favorite things to do, especially since I have kids and they get a big kick out of seeing what new festive items we can find. And fall decorations tend to be so adorable, I really go overboard this time of year.

Unfortunately, since I do like to switch up my decor regularly, I could easily empty my bank account by indulging this hobby. Obviously, I don’t want to do that — even if an ever-changing festive display is fun to look at. The good news is, the Dollar Tree has tons of awesome fall items that enabled me to decorate my whole house for less than $25.

1. Glazed Porcelain Fall Pumpkins

The Dollar Tree’s glazed porcelain fall pumpkins are on my mantel currently. The pumpkins come in all the colors you’d expect, including red, orange, white, and a brownish green. At close to four inches high, these are big enough to make a statement — especially in groups as I have them displayed — but small enough that you don’t feel as if you’re at a pumpkin patch when you’re sitting in my living room.

Best of all, these were an extremely affordable addition to my home, as well as an adorable one. At $1.25 a pumpkin, they are a way better bargain than similar items selling for $24.99 for a set of three at big box stores like Target.

2. Wooden Harvest Pumpkin Décor

These wooden pumpkins come in multiple shapes, including the classic round pumpkin as well as both a vertical and horizontal rectangle. They are free-standing and have a cute little bow that makes them look both rustic and handmade — and they only cost $1.25.

Etsy sellers have slightly larger and fancier models for $40 or more per set of three, but I’m very happy with my budget alternative that left me with a much smaller credit card balance. I’m currently using these in my dining room display cabinet, as well as on my kitchen island, to bring some fall fun into several rooms of my home.

3. Fall leaves dinnerware dishes

Dollar Tree dishes are one of my absolute favorite things in the world to buy. They look and feel super expensive, and you can get an entire service for 12 for $1 per plate, cup, and bowl. And the Dollar Tree offers themed plates for every season, including autumn.

Dollar Tree’s fall leaves dinnerware collection is on my dining room table. I served Thanksgiving dinner on it — even though I have much more expensive dish sets in the sideboard. These dishes really capture the essence of the season, and they even come with matching glasses to create a truly complete look.

These are just three of the many fall decor items that you can buy at the Dollar Tree. And many stores have fall decor on clearance already, or will soon, as they make room for Christmas decor. So, if you want to make your own home look a little bit more festive for one of the best seasons of the year, check out these and other items the Tree has on offer.

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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.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Etsy and Target. The Motley Fool has a disclosure policy.

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There’s one financial resolution that always seems to be unattainable. Will things change for this writer in the new year? Find out her plans to follow through. 

As a working mom, my weekdays tend to be pretty busy. And that’s putting it lightly.

There are some evenings when I leave to take my kids to activities before 5:00 and don’t get back home until after 7:30. Those are the nights when a quick stop at McDonald’s or a local pizza place becomes a lifeline.

In fact, due largely to my busy schedule, I find that takeout is one thing I tend to spend a lot of my money on. Even though I like to cook and am fairly competent in the kitchen, it’s a lack of time more so than anything else that causes me to run up a large credit card tab on takeout meals month after month.

Meanwhile, over the past few years, I’ve tried resolving to cut back on takeout without success. I’ll start strong in January, when our schedule tends to be a bit less hectic due to a lack of outdoor sports. But I usually start to falter in the spring when activities pick back up (like soccer) and I’m home a lot less often.

This year, I’m once again resolving to spend less on takeout. If I can pull that off, it’s more money to add to my savings account. But since I’ve failed at this particular resolution so many times in the past, I’ll need to be more strategic in my approach this year. And pulling it off may require a bit of a compromise.

It’s important to be realistic

Whether your upcoming New Year’s resolution is to save up for a new car, pay off your credit cards, or start funding an IRA for retirement, the key to being successful is being realistic. If you’re sitting on a $14,000 credit card balance and cutting back on discretionary spending will only free up $200 a month based on your paycheck, then you may not manage to whittle a $14,000 balance down to $0 — unless, of course, you find a lucrative side hustle and are able to commit many hours to it.

Similarly, I need to be realistic with my goal so I don’t end up feeling bad about myself for not meeting it or giving up too quickly. So with that in mind, I’m setting a couple of ground rules.

First, I’m not pledging to never order takeout. Rather, I’m simply aiming to cut back. If I can eliminate one takeout meal a week consistently during the year, I’ll consider that a win.

Secondly, I recognize that I may need to swap some of my takeout meals with a meal delivery service. And you could argue that these are really the same thing, but they’re not.

On occasion, I order food from a service called Mosaic that offers plant-based entrees. When you order a bulk box of 18 veggie bowls (each of which is a full meal), you can get your cost down to about $10 per bowl.

Now I’ll admit that I can get away with eating more cheaply than that when I’m sticking to McDonald’s or pizza. But I also don’t want my family eating so much junk, which is another reason I’m interested in cutting back on takeout. And for a healthier takeout meal, I’m looking at spending way more than $10 per person.

Now because my kids and husband don’t necessarily want to eat plant-based meals like I do, I intend to explore other meal delivery services that cost more than groceries, but less than takeout. I see that as a reasonable solution.

A positive change for my family

If I’m being totally honest, my family can afford our current takeout habit. There are some weeks when we bring in food three to four times a week (though usually it’s less) and that doesn’t put us at risk of not being able to pay our bills.

Rather, my reasons for wanting to cut back are part financial and part health-related. I know I can save a lot of money by doing a combination of more cooking and more meal delivery over takeout. And I certainly think cutting back on takeout could make it so we’re eating more nutritiously.

I’m hoping 2024 will finally be the year I’m able to meet this objective. But I guess we’ll just have to stay tuned and see.

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Auto insurance premiums vary widely by location. Here are the five states where drivers pay the most. 

Location plays a huge role in setting auto insurance premiums. It dictates how likely you are to have an accident with another vehicle or a wild animal, how frequently cars are stolen or destroyed in natural disasters, and even how likely it is that a lawsuit over a car accident results in a huge payout.

Insurance companies know this, which is why they charge drivers in some states more than others. Unfortunately, drivers in the five states listed below get the short end of the stick.

1. Michigan

Michigan has the highest auto insurance premiums in the nation by a mile. In 2023, the average driver paid $5,766 for auto insurance. Keep in mind, this includes drivers with accident histories and DUIs as well as those with clean records.

Part of the reason Michigan rates are so high has to do with the state’s no-fault system. Unlike the majority of states, which use an at-fault system, no-fault systems require each driver to bill their own insurer for medical expenses following an accident, regardless of who caused it. This increases the likelihood that insurers will have to pay out claims.

Michigan also has the second-highest rate of uninsured drivers in the nation. More than a quarter of drivers don’t have coverage, according to the Insurance Information Institute. This increases the risk that insurers could wind up paying for property damage claims that their drivers didn’t cause as well.

2. New Jersey

The average New Jersey annual auto insurance premium in 2023 is $4,316. Like Michigan, it’s a no-fault state, so this undoubtedly contributes to its above-average rates.

The state also has a high population density. More cars in a smaller area statistically increases the likelihood of accidents, and therefore, of auto insurance claims.

3. Louisiana

The typical Louisiana driver pays about $4,280 per year for auto insurance. This is due in part to its coastal position and the potential for severe hurricanes that could easily total a vehicle.

Many also blame Louisiana’s legal system. The state sees a high number of bodily injury lawsuits and awards significantly more damages than most other states. This increases the likelihood that insurers find themselves on the hook for large sums.

4. Kentucky

Kentucky is another no-fault state, with an average annual premium of $4,200 in 2023. The state has an above-average number of uninsured drivers at 13.9%.

In addition, it sees an unusual amount of traffic fatalities. This can lead to large bodily injury claims, which result in significant payouts.

5. New York

New York ties with Kentucky to take the last spot on this list. Its average annual premium also came in at $4,200 in 2023. It’s yet another no-fault state, but that’s not the only reason for its high rates.

They’re also due to the state’s population density, especially in the New York City area. Having that many drivers close together increases the risk of accidents and auto theft. Auto theft, in particular, is becoming a significant problem in the state, having risen by 23% from 2021 to 2022.

What drivers can do

While it’s true that drivers in the above states typically pay more than the $3,017 average annual auto insurance premium for the U.S., it’s possible to find rates significantly cheaper than those mentioned above.

Shopping around is crucial to finding the best possible deal. Compare rates from several companies to see which offers the most coverage for the lowest price. And consider choosing a higher deductible to lower monthly premiums.

If there aren’t any affordable rates at the moment, you might have to reduce coverage for a little while. But don’t forgo insurance and don’t give up. Keep shopping around every few months until something better comes up.

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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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