Money Management

It’s not surprising that dual-income couples without kids have more long-term savings than those with children. Read on for ways to catch up. 

When I told a friend of mine who doesn’t have kids that I spend over $500 a month on my children’s extracurricular activities alone, her initial response was, “Wow, there’s no way I could afford that.” And it’s not the first time I’ve heard things along those lines.

Raising children is expensive, even when you happen to be part of a dual-income household. And my husband and I make a lot of sacrifices to allow our kids to participate in the sports and activities that are important to them.

On my end, for example, I commonly return to my desk to work late at night once my kids have gone to their rooms to drum up extra income. Would I rather be relaxing on the couch with a book and a warm cup of tea? Sure. But putting in those extra hours helps ensure I’m able to keep saving money despite the high cost of raising kids.

Not surprisingly, though, data from Rocket Mortgage shows that DINKS — dual income, no kid households — are managing to save more for retirement than dual-income households with children. And while the disparity isn’t so great on a national scale, in some parts of the country, it’s significant.

No kids, more savings

Dual-income households without kids earn an average of $138,000 per year, which is nearly 7% more than the average $129,000 income among dual-income families with kids. That alone could explain why they’re able to save a bit more.

Overall, the savings gap between DINKS and dual-income households with kids isn’t huge. Nationally, DINKS save 9% more for retirement, or about $4,800 per year in total, versus $4,400 per year for dual-income couples with kids. But in some parts of the country, that gap is wider.

In Connecticut, for example, DINKS save an average of $15,900 per year, compared to $3,100 per year for dual-income households with kids. In South Dakota, DINKS save an average of $6,200 per year, compared to $2,900 per year for dual-income couples with children.

How to catch up to DINKs

If you have children, it means you’re paying for a host of expenses that households without children aren’t. So it’s easy to see why your IRA or 401(k) balance might be lower. But it’s also important to do what you can to catch up to DINKs. After all, you’re entitled to a comfortable retirement, too.

One easy way to boost your retirement savings is to put the process on autopilot if you have an IRA. IRAs aren’t funded with payroll deductions the same way 401(k) contributions are. If you set up an automatic transfer out of your checking account into your IRA each month, you may be more likely to meet your savings target.

But also, you may need to cut back on some of your child-related expenses. This doesn’t mean you shouldn’t feed your kids or take them to the doctor when they feel sick. Rather, it means setting priorities so you can free up more money for your long-term savings.

Rather than say yes to every sport or activity your kids want to do, say yes to just one or two. That’s a system we employ in my household.

Each child of mine has a limit of two higher-cost activities at any given time. I’m more flexible with activities that are inexpensive — for example, a recreation program that costs $100 for the entire three-month season.

Another thing I do is spend minimally on clothing. Kids have a tendency to outgrow clothing items really quickly. So I make a point to find the cheapest pants and shirts I can, whether by hitting up Costco or stalking Amazon for sales.

I also make it known that I’m happy to accept hand-me-downs from friends with older kids. That’s saved me hundreds of dollars on clothing through the years.

It’s not at all surprising that DINKs have higher retirement savings balances than dual earners who are raising children. But if you want to put yourself in a position to save just as much as your contemporaries without kids, then you may need to set some ground rules and stick to them.

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It’s best to approach debt payoff with a solid plan. Keep reading to learn why this applies when you’re getting a debt consolidation loan. 

Credit card debt typically comes with a very high interest rate. As of August 2023, the average interest rate on credit cards was 21.19% By contrast, personal loans generally don’t have such high rates. The average rate on a personal loan as of that same time period was 12.17%.

In many cases, you can take out a personal loan and use it to pay off your credit card debt. This would generally lower the rate you pay. It would also mean that you’d have a fixed-rate loan with a set payment schedule, instead of a credit card that allows you to pay the minimum for decades.

Making this move can make a lot of financial sense in many situations. But before you move forward, there are a few key moves to make first.

1. Make sure you have a payoff plan

When you get a personal loan, you will have a fixed loan term, and your monthly payments are most likely going to be higher than the minimum payment due on a credit card. That’s because your payments will be targeted to ensure you become debt free at the end of the loan repayment term (which often lasts about two to seven years, depending on the lender.)

Let’s say you had a $5,000 credit card balance on a card with a 21.19% interest rate. If your minimum payment was 2% of your card’s balance, you’d have to make a payment of around $100 a month and, as your balance declines, you’d see that minimum payment fall with it so you’d have a smaller required payment each month.

On the other hand, if you took out a personal loan with a two-year repayment term and a rate of 12.17%, your monthly payment would be higher — but your total payment costs and repayment time would be a lot lower, as the table below shows:

The personal loan seems to clearly be the better choice — but you do need a plan to be able to make the monthly payments. If you’d struggle to come up with $235.75 and fear you’d risk defaulting on your loan, you’re better off waiting until you’re more financially stable and ready to work on becoming debt-free.

2. Make sure your spending is under control

There’s another really important step you’ll want to take as well: You need to make sure your spending is under control.

See, when you pay off your credit cards with a debt consolidation loan, you make that credit available on your cards again. If you don’t have a spending plan, you might fall back into the habit of charging more on your cards again. You could end up running up a credit card balance and having the personal loan to pay, so your debt balance could become a lot bigger.

To make sure this doesn’t happen, make a budget that allows you to spend within your means and make sure you can stick to it before moving forward.

3. Ensure your credit is good enough to get a reasonable rate

Finally, refinancing to a personal loan makes sense only if you can get a good rate. And you’ll need pretty good credit to do that. You can improve your credit score by making all of your current debt payments on time. If you have late payments on your record, you can also try asking your creditors to remove them as a gesture of good will if you are generally a good customer.

By taking these three steps, you can make sure that getting a personal loan to pay off credit card debt is the smartest move for you.

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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 Target. The Motley Fool has a disclosure policy.

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Discount grocery chain Aldi is offering some sweet deals on Thanksgiving dinner this year. Read on for some of the highlights. 

Thanksgiving is a time for family and food. And thankfulness, of course. But mostly food. So you want to get it right. Making sure the green bean casserole is done around the same time as the stuffing and trying not to char the turkey are already stressful enough. You don’t need to worry about how you’re going to pay for your dinner, too.

Thanksgiving costs climbed a lot last year, reaching about $64.05 for a feast for 10 in 2022. That was a whopping 20% increase over 2021. And maybe that’s why Aldi has decided to offer some special Thanksgiving deals this year to help keep costs easy on your bank account. Here are 15 of the best deals on the list.

Aldi’s best Thanksgiving dinner sale items

Aldi’s holiday sale prices begin on Nov. 1, 2023 and continue throughout the holiday season. It’s discounting items on over 70 holiday favorites, and some are as much as 50% off. Here are 15 of the best deals we found:

You’ll also be able to find deals on other holiday staples like potatoes, green beans, and turkey of course. Check them all out at your local Aldi or order online.

How to save even more on Thanksgiving meals

Aldi’s sale is a great place to start if you’re trying to keep your Thanksgiving costs down. But don’t forget to keep an eye out for other sales at local grocery stores, too. Check for coupons on common holiday staples online as well.

Buying in bulk can also help you save. But be careful with perishable items. Buying too much can just lead to costly food waste.

Another option is to set up a Thanksgiving potluck and have dinner guests bring dishes, instead of doing all the cooking yourself. Not only is this easier on your budget, but it can also take some of the stress of cooking off your plate.

You’ve still got plenty of time until Thanksgiving, but it doesn’t hurt to start weighing your options. By picking up some of your meal items early in November, you might be able to score better sales than you would if you waited until Thanksgiving week.

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The average family spends well over $5,000 on their trip, not including airfare. Check out how you can save money. 

The average cost of a Walt Disney World vacation doesn’t tell the full story. There are some big variables, such as your choice of hotel, whether you eat sit-down meals or opt for quick service, and whether you fly or drive. And these are just a few examples. In other words, I live within driving distance of Walt Disney World, so the cost of a trip for my family isn’t an apples-to-apples comparison with someone who lives across the United States and needs to fly.

Having said that, some travel experts have done their own analysis. And because there are so many variables, let’s look at a couple.

The average cost of a Walt Disney World vacation

For example, the popular Disney-focused travel site MouseHacking.com found that a “baseline” Disney World trip for four people costs $6,320. This assumes five nights at a budget-oriented Disney hotel, five-day theme park tickets, four round-trip flights, and a total budget of about $1,500 for dining.

Another Disney travel site, MagicGuides.com, found that a seven-night trip would cost about $5,240, assuming park tickets for six days, Genie+ service, and quick service meals throughout the trip. Notably, it doesn’t account for flights or travel costs to and from the airport like the MouseHacking.com estimate does.

If you splurge on any luxuries (like finer dining), the costs can add up quickly. I can tell you firsthand that it’s very easy to spend $200 for a family of four at a mid-level sit-down restaurant located in a park, for example. If you stay at one of Disney’s higher-end hotels, it could literally add thousands of dollars to the price tag.

In fact, looking at a six-night stay in June 2024, the difference between Disney’s Pop Century Resort (which the MouseHacking.com estimate was based on) and Disney’s Contemporary Resort would add nearly $2,400 to the cost of a six-night stay at the resort. The difference in room prices is $229.50 versus $627.67 per night.

Ways to save money on your next Disney trip

As you can see, a Disney World vacation isn’t exactly cheap even if you stay at a value-friendly Disney hotel and never eat a sit-down restaurant meal. But there are some ways you can potentially make your trip significantly cheaper than average without sacrificing any of the fun. Here are just a few of my favorite tips.

Stay off-property

Pretty much all of the Disney World trip estimates, including the two discussed earlier, assume you’re going to stay at a Disney hotel. While there are some perks to doing this, it’s important to keep in mind that there are some very nice hotels within a 15 minute drive of the parks that cost far less than a comparable on-property hotel.

Bring plenty of snacks

Many people don’t realize it, but you can bring your own food and (non-alcoholic) drinks to Walt Disney World parks. One of the best money-saving tips that my family uses every time we visit Disney World is to pack plenty of bottled water, juice boxes, and snacks so we keep our food purchases to a minimum.

Get a Disney credit card

There are two different Disney credit cards, one with a $49 annual fee and one with no annual fee. Not only do you earn Disney Rewards Dollars on purchases made with these cards, but both cards will get you a 10% discount on most dining and merchandise purchases while you’re at Walt Disney World. Both have fantastic welcome offers that can help offset the cost of your vacation as well.

Go at an off-peak time

I get it; there’s a reason you might want to go to Disney World over your kids’ spring break or as soon as they get out of school for the summer. But everyone else wants to go during these times, too. If you can manage to get away during a less-busy time, it can be a big relief to your personal finances. One-day Disney World tickets range from $109 to $189 per day, depending on when you go. The savings of going at a slower time can really add up for a family of four over a multi-day trip.

The bottom line

A Disney World vacation can be expensive, but there are some ways you could save money and still have a great time. With these suggestions, you could save hundreds or even thousands of dollars on your Disney world trip, so keep them in mind while you’re planning.

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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 Apple. The Motley Fool has a disclosure policy.

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