Money Management

Looking for smaller, fun gifts? Costco’s got you covered. Read on to learn more. 

There’s a lot of pressure to pull off the perfect Christmas. Not only do you have to come up with fabulous gifts, but your loved ones probably expect stockings full of fun finds to go along with those larger-ticket items.

Pulling that off without racking up a massive credit card tab can be easier said than done. But if you’re on a budget, it pays to check out these great buys at Costco.

1. Lemon Ladies’ Cozy Crew Sock, 4-pair

Cozy feet are a wonderful thing. These Costco socks are slipper-like and can keep your toes warm for hours. They fit a woman’s 5 to 9.5 shoe size, so they’re suitable for teens as well. And they come in a gray or pink variety pack. You’ll find them online now for just $13.99, but it’s worth checking if your local warehouse club store has them in stock. You can often save money by purchasing items at a Costco store instead of on Costco.com.

2. Bula Unisex Merino Wool Blend Beanie, 2-pack

Costco is certainly amping up its cozy game this season. Right now, you can find a two-pack of warm beanie hats for $14.99 online. This unisex pair comes in black and gray and features a Polartec® fleece band liner. It’s a great gift for your well-meaning teen or spouse who always seems to leave their winter hat behind somewhere.

3. Signature Animal Mugs

For a mug to make a great gift, it should satisfy two requirements — be large enough to allow its recipient to enjoy a generous cup of hot cocoa or coffee, and have something cute or funny printed on it. These Costco mugs fulfill both requirements. They have a 17.5-ounce capacity and are microwave-safe. And they feature adorable animal designs. Best of all, a set of six costs just $19.99 online, so you can stuff multiple stockings with a single purchase.

4. butter LONDON Buttery Lips Treatment Set

If you have a teenager at home who’s into makeup, this lip treatment set could make their day. It features a lip balm and scrub duo in fun colors and scents that include sugar buttercream and champagne. The product is paraben-free and is available online for $19.99.

5. Lindt Lindor Chocolate Truffles, Assorted Flavors

Who wouldn’t love a massive collection of truffles this Christmas? Costco is selling a 21.2-ounce assortment of Lindt truffles for $15.99 online. It features flavors that include milk chocolate, dark chocolate, white chocolate, and caramel. At a price like that, you may want to pick up a spare bag for yourself — you know, in case you need fuel while you’re busy wrapping all of those gifts.

Finding the perfect items to fill your family’s stockings isn’t always easy. But these are just some of the many great gifts Costco has available. It pays to spend some time browsing Costco.com or walking around your local warehouse club store to see what else you can find.

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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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Travel points can help you take the trips you want for less. Watch out for these common mistakes that could cost you in points or real money. 

Travel credit cards are a popular recommendation for people who love to travel, and for good reason. You can use your card to earn travel points, and then use those points to save on your trips.

But travel cards do have a bit of a learning curve, as using travel points isn’t as straightforward as using cash back. Because it’s more complicated, there are also more ways that using travel points can go wrong. If you have travel points, or you’re thinking of getting a travel card, you should know about some common mistakes that could cost you.

1. Transferring travel points without a plan

Some travel cards offer transferable points. That means you can send your travel points to the loyalty program of any airline or hotel partnered with your card issuer.

Let’s say you have 100,000 Chase Ultimate Rewards points. Those are transferable travel points, and Chase is partnered with over a dozen airlines and hotels. You could transfer those points to United, turning your 100,000 Chase points into 100,000 United miles. Then, you could book airfare on United with those miles.

Transferable points are great, because they give you a lot of flexibility in what you book. Here’s where people go wrong: They transfer points before deciding what they’re going to book. Transfers are final. After you transfer your points, they can’t be transferred back.

So, if you’re going to transfer Chase points to United, look for an award ticket on United first. Once you’ve found it, transfer only the points you need to book that ticket. Otherwise, you could end up with miles that you won’t use.

2. Redeeming them for cash back

Travel points are worth the most when you use them for travel. Many rewards programs will also let you use them for cash back, but at a much lower value.

If you can get $0.015 to $0.02 per point with a travel booking, you may only get $0.006 if you use those points for cash back. With 100,000 points, that’s the difference between $1,500 to $2,000 in value compared to just $600. Unless you really need the money, or you have more points than you know what to do with, stick to using points for travel.

3. Using them to pay for online shopping

Some credit cards give you the option of paying with points while shopping online. You may be able to use your points for Amazon purchases or when going through PayPal checkout.

The problem here is the same as when you use your travel points for cash back. You get a much lower value for your points — in fact, it’s often the same value you get on cash back redemptions. It may seem exciting to spend less for an online order by paying in points. But you’re getting pennies on the dollar if you do.

4. Hoarding them

It’s not hard to earn lots of travel points. Many cards offer impressive sign-up bonuses of 50,000 points or more. You’ll also be earning points on purchases you make with your travel cards. If you’re a big spender, or you’re good at maxing out your rewards through bonus categories, you could end up with quite a few points.

Make sure you’re using those points you earn. Some people hoard points, either because they want to save them for later or because they don’t travel enough to redeem all of them. Your points aren’t saving you any money if they’re sitting around unused.

As a general rule, aim to use travel points within a year or so of earning them. If you can’t because you’re not traveling enough, cash back credit cards may be a better choice.

5. Overspending to earn them

One of the dangers of earning points is that it incentivizes spending money. You may find yourself rationalizing purchases with the excuse that “I’ll earn more points” or “My travel card earns bonus points in this category.”

On regular spending, most travel cards earn 1% to 2%. In bonus categories, some of them may earn 3% to 5%. If you make a $100 purchase for the points, you’re not coming out ahead. The points you earn may save you $5 on travel in the future, at most. That’s still $95 less than you would have saved by not spending that money. Stick to your regular spending habits, even when you’re earning travel points.

When used correctly, travel rewards cards can help you travel for much less. If you avoid those mistakes, you’ll be able to make the most of your travel points.

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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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, JPMorgan Chase, and PayPal. The Motley Fool recommends the following options: short December 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.

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It’s no fun to pay for preventive services, but it’s likely cheaper than paying for repairs. See how much you could save by paying before an issue arises. 

When I come home from a long trip or snuggle up by the fireplace on a cold winter’s night, I feel a swell of gratitude to be in a home I love so much. But it’s not all rainbows and cupcakes, as homeownership comes with lots of expenses compared to renting. There’s your mortgage of course, but also property taxes and homeowners insurance to add to your budget. And on top of those fixed costs are the varying expenses of maintenance and repairs that you have to account for in your personal finances.

While it’s hard to predict what these fluctuating costs will be from year to year, being proactive about them can lead to a lot of savings. Here’s a look at how much I spent on preemptive maintenance this past year compared to what it could cost me if those same items had to be repaired next year.

Gutter guards

A few years ago, my husband and I installed gutters on our garage to protect the siding, which was a worthwhile investment in itself. However, we didn’t install gutter guards at the time. Our yard is surrounded by several large trees that drop tiny leaves and pine needles onto our property. This has led to backups in the gutters, which can be a headache to clean out and a major issue if they clog.

This summer, we got around to installing the gutter guards, and it was a relief when all the leaves started to fall a short while later. Since we picked up the materials and installed them ourselves, it only cost us about $130 and the better part of a weekend. According to Angi, the average cost of repairing water leak damage can be $3,616. While our garage likely wouldn’t be as expensive to repair as the interior of our home, taking that $130 preventive measure was still well worth it to me.

Car service

Since I work from home, I don’t put a ton of miles on my car, but I’m still very disciplined about bringing it in for service whenever it’s due. I’d much rather catch an issue when it’s minor than find out once it becomes a major (and expensive) problem.

Last month, I brought my car to the dealership for a regular inspection. With the $50-off coupon the dealer had sent me ahead of time, the cost of the service and an air filter replacement was $105. That’s much easier to stomach than the average price of a car repair, which can be $500 to $600, according to AAA.

Furnace maintenance

I now live in a place with very cold winters. As such, my husband and I make it a priority to get our furnace inspected every fall before the freezing temperatures set in. We actually learned this the hard way when we were living in California.

Since we moved into our home in the summer, we didn’t realize the furnace only turned on but didn’t heat up until we tried using it during the first cold snap. We had to go several days with no heat before the repair person could come, meaning it was 50 degrees inside the house for the better part of a week. That’s not something I want to risk in a place where the temperature often drops below zero.

Last month, we paid for the annual inspection and replacement filters for the furnace. The total was $375 (who knew furnace filters were so pricey?!) but we can now go into winter with the peace of mind that comes with a clean bill of health for our heating system. If instead we had skipped the inspection and an issue cropped up, we might be out $750 to repair or a whopping $4,700 to replace our gas furnace (the averages according to Forbes).

Pay for maintenance rather than repairs

All in all, these three preventive services I elected to pay for cost me $609. That’s no small amount, and I’m glad I have a healthy savings account balance I can dip into to cover them. But I’d much rather pay that amount than $4,866 on the low end and $8,916 on the high end to cover the repairs or replacement items that might be required if problems arose.

Make it a point to budget for preventive services like these to save yourself a lot of money. And if you’re able to set extra money aside, aim to build up an emergency fund that you can tap when surprise expenses pop up. That way, you can avoid taking on credit card debt that you can’t pay off right away, which will only make your costs even more expensive in the long run, thanks to interest charges.

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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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Many credit cards earn points you can redeem for cash back, travel, and more. Find out why you should use credit card points promptly and never hoard them. 

Earning points can be one of the biggest perks of paying by credit card. If you stick to your regular spending habits and pay off your card every month, you’ll come out ahead with the points you earn. But sometimes points can cause people to make poor financial decisions.

There’s overspending just so you can earn more points. And even worse, spending money to earn points while you’re in credit card debt. There’s also a big mistake that doesn’t get talked about as much: hoarding credit card points.

Some people treat rewards credit cards like a video game, as if they’re going for the high score. They earn millions of credit card points, and then let them sit around, unused. It might not seem like a serious issue, but doing this costs you, for a few reasons.

1. Your points could become less valuable

There’s no benefit to holding onto credit card points. They aren’t going to increase in value, like stocks or money in a high-yield savings account. But they could easily decrease in value.

Loyalty programs sometimes go through devaluations; the airline or hotel raises the number of points required for award bookings. Let’s say you have 500,000 airline miles. The airline starts charging 50,000 miles for tickets that used to cost 40,000 miles. Your miles won’t go nearly as far anymore.

Even if your points don’t lose any value, it’s better to save money now than later. Because of inflation, the value of our money gradually (and sometimes not so gradually) decreases. If you can save $1,000 using your points today, that’s better than saving $1,000 in a year or two. You could also use that money to add to your investments or your savings, both of which are more valuable than credit card points.

By the way, this applies with cash back credit cards, too. If you have any cash back sitting around, use it, because it’s not getting any more valuable.

2. You could lose them

With most credit card rewards programs, your points don’t expire as long as your card remains open. I’d recommend double-checking to make sure. But normally, if you keep your rewards card open, all the points you’ve earned with it are safe.

However, if your card issuer ever decides to close your account, you could lose all your points. This doesn’t happen often, but it’s possible. For example, if your card issuer suspects you of gaming its rewards program, it could shut down your account. Some people who have purchased large amounts of gift cards to earn points have had this happen to them.

Or if you run into money troubles and aren’t able to pay your credit card bill, your card could be closed for that reason. The bottom line is it’s risky to hoard points since you don’t have any protection if your account gets shut down.

3. There are always ways to use your points

One of the most common reasons people hoard credit card points is because they don’t know what to do with them. Or they’re waiting for that perfect redemption opportunity where they’ll get $0.05 per point.

If you check all the options in your card’s rewards program, you’ll almost certainly find a way you can use your points. With travel credit cards, the best option is to use them for travel. That’s a great excuse to book a luxurious vacation for yourself, or a staycation if you can’t travel far. If that’s not an option, you may be able to:

Get cash back for your pointsDonate your pointsRedeem your points toward previous purchases

You may not get the maximum value for your points. But when you have more points than you need, getting something for them is better than having them sit around. You might also want to think about using other credit cards going forward with rewards that you have no trouble redeeming.

The whole point of earning credit card points is to save money, and you only save money with points when you use them. If your rewards balance has been going up and up, it’s time to focus on redeeming all those points you’ve earned.

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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.

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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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SoFi’s decision to shut down its crypto arm will leave investors in a difficult place. Read on if you’re wondering whether to sell or transfer your assets. 

Popular stock broker SoFi announced this week that it will exit the crypto market in the coming months. The move leaves many of its crypto clients with a choice of either selling their assets or authorizing SoFi to move them to Blockchain.com, the crypto exchange it has teamed up with.

Why SoFi is pulling out of crypto

U.S. crypto platforms are under increasing regulatory scrutiny. Unfortunately, for SoFi, that scrutiny is getting in the way of the other products it offers. Almost two years ago, it got conditional approval for its banking charter, which is an important part of its business. At the time, authorities gave the brokerage two years to get the necessary regulatory approvals for its crypto arm. As it has not been able to do so, it will now wind down its crypto arm.

What it means for SoFi’s crypto customers

Unless you live in New York State, you’ll have until Dec. 19 to either sell your crypto holdings or authorize SoFi to migrate your crypto to Blockchain.com. If you haven’t received an email from SoFi explaining what you need to do, visit Blockchain.com’s customer support page to find out why not.

You have less than three weeks to make a decision; otherwise, it will be taken out of your hands. If you do nothing, SoFi will liquidate your crypto account, and you won’t have any control over when your crypto gets sold.

Blockchain.com doesn’t have New York’s BitLicense, so New Yorkers won’t have the option to transfer their crypto holdings. Instead, New Yorkers will have until Jan. 28 to sell their crypto. After that, SoFi will liquidate their accounts.

How to decide between migration and liquidation

It’s never ideal to be forced to sell an investment because of external factors such as SoFi’s crypto exit. However, you may also be reluctant to mess around with a new account on a different platform — particularly if your crypto is part of an investment portfolio and you want to keep everything in one place.

There’s no right or wrong decision, but here are a few factors to take into account.

1. Where do you want to keep your crypto?

Think carefully before you automatically migrate your crypto to a platform you have not chosen or vetted. If you’ve only ever held crypto through SoFi, it’s important to understand how your experience might be different with Blockchain.com.

In some ways, this is a great opportunity to consider how you want to store your assets. Here’s how the three types of account differ:

Brokerage firm: Stock brokers like SoFi that offer crypto alongside other investments have to register with the SEC. They follow strict rules about how they trade and manage securities. Even though those rules don’t apply to their crypto offerings, brokerages are often more established and have stronger compliance procedures. Check out Robinhood and eToro for more.Cryptocurrency exchange: Right now, most cryptocurrencies are not considered to be securities, which means there’s less regulation around how they are traded. Top crypto exchanges often offer a broader range of cryptos and additional services than brokerages do. The trade-off, as we’ve seen with the FTX saga, is that there may be fewer safeguards in terms of investor protection. Check out Coinbase and Gemini for more.Non-custodial crypto wallet: If you put your funds in a crypto wallet that you control, you are essentially becoming your own bank. The benefit is that you won’t lose coins and tokens if your crypto platform collapses. The downside is that there can be a steep learning curve and you need to keep your wallet secure. Check out Metamask and the Ledger Nano X for more.

2. Has your long-term investment thesis changed?

Under normal circumstances, you might sell your crypto because you’re taking profits, or you no longer believe in its long-term potential, or you see a better investment opportunity. However, given that your hand is now being forced to some degree, it could be a good time to check that you’re comfortable with your crypto holdings.

In itself, SoFi’s move doesn’t say much about the future of crypto. But it is part of a worrying picture of regulatory uncertainty and crypto platform challenges. If you were already having doubts or reevaluating how risky crypto is, this might tip the balance. Even more so if you trust SoFi and aren’t sure about using a different company to manage your crypto investments.

3. Do you understand the tax implications of selling?

Crypto taxes can be complicated. Without oversimplifying, moving your crypto is different from selling it. Selling is a taxable event, and if you make a profit, you’ll need to pay taxes on your gains. Check out our guide on crypto taxes for more information.

Your SoFi questions, answered

Now we’ve dealt with the big picture, let’s get into the nitty-gritty. We’ve pulled together a host of questions you may have about SoFi’s departure from the world of crypto.

If I sell my crypto on SoFi, will I have to pay transaction fees?

No. SoFi says it will reimburse any transaction fees involved in selling your crypto.

How would the move to Blockchain.com work?

You’ll need to log on via the web or app and authorize SoFi to migrate your assets to a new account. You will receive a secure link to log in via email and set up a new password.

What if I already have an account with Blockchain.com?

SoFi says your assets will still be transferred. The only difference is that you won’t need to set a new password.

Is my crypto safe with Blockchain.com?

Blockchain.com checks a lot of boxes in terms of crypto security. It says it keeps 95% of funds offline in cold storage, uses top-notch storage encryption, and multi-signature validation. However, it’s worth noting crypto exchanges don’t offer the same protections as banks or brokerages.

What if I want to move my crypto somewhere else?

You can only move your coins and tokens from SoFi to Blockchain.com. If you want to use a different crypto platform, you’d need to move funds to Blockchain.com and transfer them from there. Be aware that Blockchain.com charges processing fees for withdrawals.

Why is it different for New Yorkers?

Blockchain.com does not operate in New York state, so it won’t be possible to move your crypto.

Are there any other state restrictions?

Yes. Blockchain.com does not support certain cryptos in certain states. If you live in Hawaii, Louisiana, New Jersey, Nevada, Tennessee, Texas, or Virginia, check whether all your holdings would be supported.

What else do I need to do?

Nothing. Though you might want to take screenshots and download your latest statements before Dec. 19. There’s always the potential for glitches in these kinds of large-scale changes, so it’s good to keep your own records in case anything goes wrong. They may also help when tax season rolls around.

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

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