Money Management

You may want to buy more stamps before 2024. USPS postage rates will increase again on Jan. 21. Find out how much more you’ll pay to send mail. 

On Oct. 6, 2023, the United States Postal Service (USPS) notified the Postal Regulatory Commission (PRC) of upcoming postal service price changes. If the price hikes are approved, consumers will pay more for several mail products and services beginning Jan. 21, 2024. Exact price changes vary by product, but consumers can expect price increases of around 2%.

USPS prices are set to rise again in January

If it feels as if the USPS has been increasing postage rates more frequently in recent years, you’re not imagining it. The agency last increased several postal rates in July 2023, after raising rates in January 2023. Unfortunately, it will soon cost even more to send letters and postcards.

On Oct. 6, 2023, the USPS announced that prices would rise again on Jan. 21, 2024. This is the sixth price increase since 2019. This will impact the personal finances of anyone who frequently sends mail through the USPS. Here’s an overview of the proposed price changes:

You can do this to save money on postage stamps

Since the rate for 1 oz. letters are increasing, Forever Stamps will also cost more. As the name suggests, Forever Stamps can be used forever, regardless of future price hikes. That means anyone who purchased Forever Stamps years ago for a lower price can continue to use their stamps now.

While a $0.02 price change may not sound like a big deal, it can add up if you frequently send mail through the USPS. Stocking up on Forever Stamps before the rate hikes go into effect in January is wise. I recently ran out of my never-ending collection of Forever Stamps, so I plan to buy more in the coming weeks.

Are you looking for a way to get a deal on stamps? You can purchase stamps at warehouse clubs like Costco and Sam’s Club if you have a valid membership. However, the savings are minimal. Both retailers sell 100-count packs of Forever Stamps for $65.75.

That means you’ll only save $0.25 for every 100 stamps you buy. But if you plan to buy several hundred stamps, buying them at a warehouse club may be worthwhile. Otherwise, you can go to your local Post Office or USPS.com to purchase stamps soon to lock in the current rate.

Credit card rewards can defray rising costs

Price increases for everyday products and services are a regular occurrence. Increased costs can significantly impact our bank account balances. While we can only do so much about price changes, we can control how we pay for products and services.

One way to ease the strain of rising costs is by using rewards credit cards to pay for everyday purchases. You can earn rewards when you spend money with your credit cards.

With one of the best cash back credit cards, you can earn cash back and later deposit your cash into the bank. Don’t miss out on the chance to earn valuable credit card rewards.

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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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You can now get a free copy of your credit report from each of the three bureaus every week. Find out why it’s worth getting yours. 

Checking your credit report is one of those bits of financial housekeeping that’s easy to put off. However, it is worth doing regularly — not least because it means you’ll be able to act quickly if there are mistakes. Plus, all kinds of people, from lenders to potential landlords, can use your credit report to form opinions about you.

The good news is that you can now get free copies of your credit reports from all three agencies every week. This was something the bureaus began during the COVID-19 pandemic and have recently extended permanently. It used to be that you could only get one free report from each bureau per year, but it’s now much easier to track your financial health.

How to access your free credit reports

There are three major credit bureaus in the U.S.: Equifax, Experian, and TransUnion. Each may have slightly different information about you and your credit history, in part because some lenders don’t report to all the agencies at the same time.

You are entitled to one report from each credit bureau each week. Go to AnnualCreditReport.com and fill out the form. You will have to answer some security questions, which could involve you checking your records. You can also call (877) 322-8228 or request your reports by mail.

Be aware that your credit report is different from your credit score. Your report contains the information that gets used to generate your score. There are also ways to get your score for free. For example, some credit cards will give you a free credit score as a perk, though they may not use the same model as your lender.

It’s generally wise to avoid other sites that promise free credit reports. The Consumer Financial Protection Bureau says they could try to lure you in with a “free” report and then try to get you to pay for other products further down the line. Or worse, push you to subscribe to a service you then need to cancel.

Why it’s worth checking your credit report

Your credit report is a record of how you’ve handled your finances in the past. It includes accounts you’ve opened, payments (both made and missed), and any missteps such as accounts that are delinquent or even past bankruptcy filings. The information gets used to generate your credit score — that magic three-digit number that influences many decisions. A high score can give you access to better terms on loans and credit cards, among other things.

Here are three reasons to make the most of the free weekly reports.

1. You might find a mistake

Around a third of the people who participated in a 2021 study by Consumer Reports found at least one error on their credit reports. In some cases, this was incorrect personal information, such as mistakes with addresses. Other people found errors in their account information. These errors can impact your credit — for example, an account that’s reported as overdue when you’re on top of payments.

If you find a mistake: Write to the credit bureau and company that made the error. Include documents to support your case, such as evidence of the payment. Keep copies of your correspondence, and send letters by registered mail so you have a paper trail.

2. You’ll know what people will see

Lenders aren’t the only people who might use your credit report to make decisions. Potential employers, landlords, insurers, and utility companies might want to see your credit report, too. It’s worth knowing what your report says — especially if you’re planning to apply for a mortgage, personal loan, credit card, auto loan, or another form of credit.

If you don’t like what you see: If the information in the report is correct, sadly you won’t be able to remove it. Negative information such as late payments can stay in your credit history for seven years. However, you can take steps to improve your credit moving forward. Make sure you pay your bills on time, as this is the single biggest factor in calculating your credit score. Check out our guide to building your credit score for other steps you can take.

3. You can pick up fraud or identity theft early

Unfortunately, identity theft was the most common type of fraud reported to the FTC in 2022 with over 1 million cases. Of those, around 440,000 were credit card fraud. Checking your credit report regularly means you’ll be able to spot any criminal activity. For example, you might find a fraudulent account that’s been opened in your name. The earlier you notice a problem, the less damage criminals can do.

If you discover fraud: Report it to the police and the FTC (IdentityTheft.gov). Ask the credit bureaus to put a freeze or fraud alert on your credit. Dispute the fraudulent information with the lenders and bureaus involved.

Main takeaways

It’s great to learn that we can access credit reports for free. Previously, if you wanted more than one report per year from each bureau, you’d have to pay as much as $14.50 to get them. It can be a bit of a hassle to answer the security questions, and you certainly don’t need to check every week. But it is worth making regular credit report checks part of your financial routine.

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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.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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When my kids start earning money, I will have them open Roth IRAs of their very own. Read on to learn why. 

My kids are ages 4 and 2, so they sadly aren’t really earning any money of their own at the moment and they probably won’t be for quite a while. But, as soon as they get their first jobs, I have plans for what they’ll do with some of the money. They will each be opening a Roth IRA.

Here’s why.

Opening a Roth IRA can make my kids rich with very little effort

Once my kids start earning any money, I’m going to insist they open a Roth IRA with a brokerage firm because doing so can help to set them up to be wealthy retirees with almost no effort on their part.

See, a Roth IRA is a tax-advantaged account. When you contribute to it, you don’t get to take a tax deduction like you would when you contribute to a 401(k) or an IRA. But the money grows tax free and you get to make tax-free withdrawals as a senior.

When my kids start earning money, they’re very unlikely to make enough to actually owe taxes. That makes it an ideal time to contribute to a Roth IRA because they will not be taxed on the income they’re investing in this account anyway. The money they invest can grow throughout their entire lifetimes so they benefit from compound growth. And once they get to retirement age, they will end up being able to withdraw the funds without having to pay a penny of income tax.

Unfortunately, you can only contribute up to the amount of earned income you have — which is money you earn, not funds gifted to you from a parent. So they can’t invest until they begin earning money. Once they do, I plan to have them invest 100% of what they make (up to the annual contribution limit), and I’ll give them a gift equal to 75% of what they invest so they’ll still get to keep most of what they earn for fun spending — while also getting set up for retirement.

How big of an impact will this make?

While it may seem premature to worry about retirement savings when you’re a teenager, the reality is making a few small contributions early on can set my kids up for a very secure future.

Let’s say that my kids manage to invest $2,500 a year from age 14 to age 18. They’ll have $12,500 in their accounts by their 18th birthdays. If they never invest a single additional dollar and they earn 10% average annual returns for 50 years, when they turn 68 they will each have a nest egg of close to $1.5 million. And they will be able to withdraw all of that money tax free since that’s how Roth IRAs work.

The reality is, starting to invest at a young age — especially when you take advantage of tax breaks — can make a profound impact on your future. If you have kids who are working or who will be soon, help them invest as much as possible in a Roth IRA. They will absolutely thank you later when they effortlessly become a millionaire retiree.

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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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No 401(k)? No problem. Read on for another great way to save for retirement. 

If you don’t make an effort to save for retirement, you might end up cash-strapped once your career comes to an end. It’s important to consistently contribute to some type of retirement account.

You could save and invest for retirement in a regular brokerage account. But it’s silly to give up the tax break that comes with a 401(k) if you’re able to save in one.

With a traditional 401(k), your contributions go in tax-free, and investment gains in your account are tax-deferred until you’re ready to take withdrawals. There are no such tax breaks in a traditional brokerage account.

But what if you don’t have access to a 401(k) through your job? A recent CNBC survey found that only 60% of Americans have access to a 401(k) or similar employer-sponsored retirement plan.

If that’s the case for you, worry not. You can sock money away for retirement in another tax-advantaged account — an IRA. And there are several benefits to saving in one of these accounts.

The upside of IRAs

Like traditional 401(k)s, the money that goes into a traditional IRA is tax-free. And investment gains are also tax-deferred.

But one big advantage of IRAs over 401(k)s is that they allow you to invest in individual stocks. With a 401(k), you’re generally limited to a mix of funds, like target date funds (which adjust your asset allocation to meet a certain milestone), mutual funds (which employ fund managers to devise an investment strategy), and index funds (which are often passively managed funds that simply track different market benchmarks, like the S&P 500 index).

The problem with being limited to funds is twofold. First, you don’t get a say in exactly how you’re investing.

If you invest in a mutual fund, you don’t get to decide which assets that fund owns. But with an IRA, you can hand-pick every single stock that goes into your investment mix.

What’s more, the fees associated with certain types of funds can be high. With index funds, this generally is not a problem since these funds are passively managed. But with mutual funds, you could end up facing hefty fees because you’re effectively paying a fund manager’s salary (not directly, of course, but you are paying for somebody’s expertise).

With an IRA, you’re not limited to investing only in funds, and because of that, you have the option to keep your fees down. And the less money you lose to fees, the more wealth you can grow over time.

A good way to manage your IRA

One advantage 401(k)s have over IRAs is that contributions are taken as payroll deductions, so you don’t have to actively fund your account. This makes it more likely that you’ll stay on track with your savings goals.

IRA contributions aren’t taken out of your pay because an IRA is not tied to your job. But you can create a similar setup to what you’d have with a 401(k) by setting up automatic IRA contributions. Just arrange for a certain amount of money to land in your IRA each month from your checking account, and you should be all set.

Having access to a 401(k) can make saving for retirement convenient. But don’t sweat it if you don’t work for a company that offers one. You can do quite well with an IRA, and you may even find that it’s a better option for your long-term savings.

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We pored over the data and user reviews to find the select rare picks that landed a spot on our list of the best stock brokers. Some of these best-in-class picks pack in valuable perks, including $0 stock and ETF commissions. Get started and review our best stock brokers.

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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Costco is already on the ball with its holiday bargains. Read on to learn about some deals you can snag right now. 

Costco might be your go-to store for groceries and household essentials. But if it isn’t your go-to place for holiday gifts and purchases, then you may want to change your tune.

Costco’s warehouses are loaded with products that make great holiday gifts, and you can also find your share of holiday decor. Best of all, you don’t have to wait until mid- or late November to get started on your holiday shopping. Costco has already released some fantastic deals you can scoop up starting now.

1. $100 off a 7.5-foot pre-lit Christmas tree

Don’t have the time to decorate a tree but want your home to shine nonetheless? It’s perfectly okay to outsource your decorating by buying a tree that comes pre-adorned with all the dazzling lights you need to illuminate your home. Costco is selling this Christmas tree for $100 off through Nov. 12. And if you order online, that price includes delivery. It’s a great way to check one key holiday item off of your list as early as October.

2. $20 off a Fruit Company Celebration 8 Box Holiday Tower

Whether you need a gift for your boss, your child’s teacher, or that aunt who’s always hard to please, sometimes, food is really your best bet. That way, you won’t have to worry about burdening your recipient with yet another item to take up space in their house. Right now, Costco is offering $20 off of this impressive eight-box tower. It features a variety of pears, apples, chocolates, and more.

3. $30 off the Ninja Foodi 7-in-1 DualZone FlexBasket Air Fryer

Have someone special in your life who loves to spend time in the kitchen? An air fryer could make a great gift. And Costco is offering $30 off of this Ninja Foodi model. It comes with seven different cooking functions, two 5.5-quart baskets, and dishwasher-safe crisper plates to minimize cleanup. You may even want to consider buying one for yourself, especially if you’ve taken to picking up food from restaurants due to not having time to cook.

4. $50 off a 9th Generation iPad

If you’ve been putting money in your savings account to buy your teen, spouse, or someone special an iPad, you may want to head over to Costco or place an online order pronto. Costco is offering $50 off of a 9th Generation iPad. It features a 10.2-inch retina display, 64 GB of storage, and stereo speakers that let you enjoy streaming content to the fullest. You’ll also enjoy up to 10 hours of battery life.

5. $70 off the Samsung Galaxy Watch6

If there’s someone in your life who will no doubt appreciate a new smartwatch this holiday season, Costco’s got you covered. The warehouse club giant is offering $70 off of this Samsung model. It features customized fitness tracking, advanced sleep coaching, and the ability to make calls, receive texts, take photos, and listen to music right from your wrist.

You may not be quite ready to embrace the holiday season. But these deals are pretty compelling in their own right. So if they appeal to you, you might as well get a jump start on your Christmas shopping and have less to worry about down the line.

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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 Apple. The Motley Fool has positions in and recommends Apple, Costco Wholesale, and Gala. The Motley Fool has a disclosure policy.

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It’s open enrollment season. Read on for ways to make it less stressful and more successful for your employees. 

As a small business owner, there are different steps you can take to retain talent. One, of course, is to raise salaries every year and reward top performers with merit-based increases. And giving out bonuses wouldn’t hurt, either. Nothing says “please stay on board” like a lump sum of money in an employee’s checking account.

Offering a comprehensive set of benefits could also be essential to retaining talent. And now’s the time when you’re likely either kicking off your open enrollment period or are already in the middle of it.

Open enrollment is a good thing in theory. It gives employees the opportunity to choose different types of benefits. But it can also be stressful for employees — especially those choosing benefits for the first time. Here’s how you can help mitigate that.

1. Encourage your staff to consider total costs when choosing a health insurance plan

If your company offers more than one health insurance plan, then it’s important to present a big picture view of what each option entails. Your employees may be inclined to choose the health plan with the lowest premiums. In doing so, they might sign up for large deductibles that are difficult for them to cover.

When presenting your health plan options, try to show comparisons so your employees can get a sense of their total costs. Compare the cost of one health plan’s annual premium and deductible to another so they get a better sense of what they might be signing up for.

2. Explain the benefits of signing up for your company’s 401(k)

Only 34% of small businesses offer employees a workplace retirement savings plan, says Fidelity. If your company makes a 401(k) available to employees, they should know what a perk that is.

It’s also a good idea to review the benefits of contributing to a 401(k) so your employees are more motivated to sign up. These include shielding income from taxes (in the case of contributing to a traditional 401(k) plan), enjoying tax-advantaged growth on investments, and having an automated means of building a retirement nest egg. If you’re able to match worker contributions to some degree, even better.

3. Discuss voluntary benefits

You may be in a position to offer your employees the chance to buy life insurance or pet insurance. If so, explain the financial benefits of having these protections.

But also, explain what happens if your employees leave their job. Will they lose their coverage? Some life insurance policies bought through an employer are portable, while some aren’t — meaning, they go away when an employee separates from their employer. Make sure all of the details are clear so your employees end up with the coverage they need.

Open enrollment can be tough for employees to navigate without guidance. But if you take the time to really explain all of the options and benefits you’re offering, you’ll put your staff in a better position to make the right choices. And that could benefit you tremendously.

Workers who are less stressed about financial matters may be better able to focus on their jobs. So while you may want to help your employees through open enrollment for their sake, the reality is that offering added guidance could actually help your company’s bank account balance as well.

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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.Maurie Backman 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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