Money Management

You might think that you need to go to Disney World quite often to make annual passes worth it. But that’s not always the case. Find out why. 

Disney recently announced an increase in prices for annual passes, which are available in four different varieties. Many Disney World aficionados haven’t even considered buying annual passes, believing that you’d have to visit the theme parks a lot to make them worthwhile. But as you’ll see, even if you take a couple of trips in any given year, it could make good financial sense.

Walt Disney World annual passes just got more expensive

Disney recently announced a price increase for all of its annual passes, ranging from $30 to $50 over previous levels, depending on the type of pass. There are currently four levels of annual passes available for the Walt Disney World Resort in Florida:

Disney Incredi-Pass ($1,449)

The least restrictive pass, the Incredi-Pass is available to everyone, and has no blockout dates.

Disney Sorcerer Pass ($999)

The Sorcerer Pass is available to Florida residents and many Disney Vacation Club members. It has a few blockout dates around major holidays, when the parks tend to be busiest.

Disney Pirate Pass ($799)

The Pirate Pass is available to Florida residents only, and has blackout dates around holidays and certain peak periods. For example, the Pirate Pass is blocked out for a three-week period in March and April while many schools are on Spring Break.

Disney Pixie Dust Pass ($439)

Only available to Florida residents, the Pixie Dust Pass is the most restrictive. In addition to the Pirate Pass’ blockout dates, the Pixie Dust Pass also excludes weekends. In short, it is good for weekdays during non-peak times.

All passholders enjoy certain benefits, such as a 20% discount on most dining and merchandise options at the resort, as well as free standard parking at all four Disney World theme parks. And it’s worth noting that all four passes can be renewed at lower rates (about 15% less) than the initial costs listed here, so beyond the first year your cost could decline.

How much does a Disney World ticket cost?

In addition to the cost of annual passes, the other important piece of the puzzle is how much it costs to visit Disney parks if you don’t have an annual pass. We’ll get to the math comparing the two options in the next section, but here’s what you need to know about Disney ticket prices.

Unfortunately, it’s not as easy as stating a daily rate. A one-day Disney ticket costs anywhere from $109 to $189, depending on the day you choose to go. Slower times of the year are likely to fall toward the lower end of that range, while peak periods are at the higher end.

Plus, Disney World tickets purchased for multiple days of admission are cheaper on a per-day basis. As an example, a quick search on Disney’s website shows that today’s standard one-day ticket price is $149. But if I were to purchase a three-day ticket, the daily cost would be $144. For a four-day ticket, the cost would be $137 per day.

Ticket prices can be significantly higher if you want to add park-hopping privileges (which allow you to visit more than one Disney World theme park in a single day), or if you want to add water park visits.

It’s also important to mention that Disney typically has lower-priced tickets for Florida residents. For example, as of this writing, you can buy a three-day park hopper ticket that is good on weekdays for $255 if you are a resident, compared with a cost of $511 (more than double) for a standard three-day park hopper ticket.

Doing the math: Is a Walt Disney World annual pass worth the cost?

In a nutshell, a Disney World annual pass could be worth it for you if the cost of the pass is less than you would otherwise spend on tickets during the year.

I’ll use a personal example to illustrate this. We meet Disney’s Florida residency requirements and currently have the Pixie Dust Passes for myself, my wife, and our two children. The total cost (assuming you’re a first-time passholder and not a renewal) would be $1,756. Plus, we use our Disney® Premier Visa® Card and get 2% back as rewards dollars to use in the parks.

We have two trips planned for the coming year and anticipate spending three days at the parks during each trip. So, we would otherwise spend $255 per person on Florida resident weekday park-hopper passes per trip, which would total $2,040 for the two trips. Plus, we’d save $30 per day on parking, which is included with annual passes, which would bring our total spending to $2,220 if we weren’t passholders.

So, even if we just make our two anticipated trips, buying our annual passes would save us money. And if we decide to take an additional trip or two throughout the year, it makes the passes even more valuable to us.

The bottom line

One key takeaway is that you don’t have to go to Walt Disney World all the time for annual passes to make sense. Many Florida residents, and even non-residents who take frequent trips to the parks could find that the cost of annual passes is significantly less than they would otherwise spend. And that doesn’t even take into account the shopping and dining discounts or any other passholder perks.

Becoming a Disney World passholder isn’t right for everyone. But if you take multiple trips to the Central Florida resort each year, it might make more sense than you think.

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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 Visa. The Motley Fool has a disclosure policy.

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Tickets to Taylor Swift’s Eras Tour were selling for many multiples of face value on third-party platforms. If you made money, here’s what you need to know. 

Any time you sell an asset for more than you paid for it, you’re supposed to report the sale to the IRS and pay taxes. If you buy something for $50 and sell it for $100, your profit is technically considered taxable income.

But in practice, the IRS has rules that provide reporting requirement thresholds in certain situations. In 2023, there’s a new rule in place regarding ticket resales, so if you resold tickets to Taylor Swift’s Eras Tour on a third-party platform and made a profit, here’s what you should expect.

The official tax rules on selling tickets

For ticket resales, the IRS is required to send you a Form 1099-K if you sell tickets through a third-party platform like Ticketmaster or StubHub, and your gross payment amount exceeds $600. So, if you sold tickets to the Eras Tour, there’s a very strong probability that you’re in this category.

Having said that, your ticket sales are only taxable if you make a profit on them. So, if you sell tickets for $1,000 and you paid $700, your profit is only $300.

Profits are reported as income (specifically, a short-term capital gain) on your tax return. Depending on the rest of your financial situation, you might have to pay taxes on the profit you made. On the other hand, if you sell tickets for less than you paid, you are unlikely to be able to take a deduction for the loss, unless your ticket sales are an actual business.

The reporting threshold has increased significantly. To be sure, these types of sales on third-party platforms were always taxable. But prior to the 2023 tax year, the threshold above which you’d be issued a 1099-K was $20,000 and a minimum of 200 transactions. The American Rescue Plan Act in 2021 changed it to $600. The rule was initially set to take effect in 2022, but the Biden administration later decided to delay it for a year.

It’s also important to know that if you receive an official IRS income form (like a 1099-K) in the mail, you can be fairly certain that the IRS received a copy as well. So, be sure to report the income on it — after all, having income that doesn’t match up with what the IRS knows you have is a quick way to get audited.

Will you have to pay taxes on your Eras Tour ticket sale?

As an example, let’s say that you snagged four Eras Tour tickets at a face value of $199 each. After taxes and fees, we’ll say that you spent a total of $1,100 on the purchase. You then decided you didn’t want to go to the show for whatever reason, and ended up selling the tickets on StubHub for $1,000 each, or a total of $4,000. However, after deducting all of the fees charged by that platform, you received $3,500 in proceeds to add to your savings account.

Your capital gain is calculated by subtracting your sale proceeds (after fees) by the amount you paid (also after fees and taxes). In this simplified example, subtracting $1,100 from $3,500 shows that you made a profit of $2,400.

Because your sale was for more than $600, StubHub would be required to issue a 1099-K form to report it to the IRS, and you would therefore have to include it as income on your 2023 tax return.

The question of whether you’ll have to pay tax on the profit is a more complex one. But the general answer is that unless your income, credits, and deductions result in zero tax liability for the year, a profitable ticket sale like this will likely result in a higher tax bill. Without knowing your marginal tax rate (tax bracket) and other specifics, there is no way to know for sure, but the point is that if you had a profitable ticket sale, it would be wise to expect your tax bill to rise (or your refund to get a little smaller) as a result.

Many Americans will see higher tax bills from this change

It’s fair to say that the ticket resale reporting change will affect a lot of people when they file their 2023 taxes. After all, ticket demand for popular events has caused prices to soar since the live entertainment industry was reopened after being forced to temporarily shut down in 2020 by the COVID-19 pandemic. It isn’t just the Eras Tour. Concert tickets being resold for three, four, and even five-figure price tags have become far more common.

To be sure, there’s a possibility that the new reporting threshold will be tossed out by Congress before anyone actually has to file their 2023 taxes. In fact, a bill making its way through Congress right now (known as the Small Business Jobs Act) would restore the old $20,000 threshold. And a bipartisan proposal in the Senate would make the reporting threshold $10,000 and 50 transactions.

Despite this possibility, when it comes to paying taxes, it’s smart to err on the side of paying more than you’re required to. As you anticipate your 2023 tax bill and refund, it’s a good idea to assume that if you had more than $600 in ticket sales this year, you’ll have to add any profits made to your taxable income.

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With so many online learning platforms available, it can be hard to know which to choose. Find out how MasterClass and Coursera stack up. 

We all have different reasons for wanting to learn, from developing specific skills that will help our careers to simply broadening our minds. The great thing about online learning platforms is that there’s something for everyone and every budget. Coursera and MasterClass are two of many options available, and both are top of their particular classes.

Before we dive into the pros and cons of these two platforms, it’s worth pointing out that paying any subscription fees can drain your bank account. Especially when there is so much free online learning out there. In addition to the wealth of free material on the internet, you can access all kinds of online courses using your library card. Coursera itself has many free courses. These are good places to start before you pay a dime.

MasterClass vs. Coursera

Coursera and MasterClass can both be worth your money in the right scenario. One gives you access to top-notch colleges and universities, while the other lets you learn first-hand from people who are leaders in their fields.

Coursera

If you’re looking for qualifications or even a degree, Coursera is where it’s at. The platform has partnerships with hundreds of organizations around the world and offers over 7,000 courses. Its partnerships include universities like Harvard, Yale, and Princeton, as well as businesses like Google and IBM. The great thing is that you can access a lot of its courses for free.

Coursera is a lot more academic than MasterClass and has some incredible lectures. The courses are well structured and broken down into bite-sized pieces. I like the mix of video and text, as well as the forums where you can interact with professors and other learners. The platform is clear and extremely user-friendly, with lots of useful features — such as a tab where you can keep screenshots or notes from the course.

Coursera costs

The cost of courses can range from free to thousands of dollars if you want to get a degree. Here are some key costs to understand:

Individual courses: Many courses are available for free with the option to pay a fee (often $49) for a certificate. It also offers shorter guided projects for as little as $9.99.Specialization: A specialization is a set of related courses, such as an International Business specialization. Rather than pay per course, you pay a monthly fee until you complete that set of courses. Specialization costs start at $49 per month.Monthly subscription: Coursera Plus gives you access to around 90% of the classes with unlimited certificates for $59 a month or $399 a year. If you plan to do several courses and need proof of your qualifications, it may work out to be a better value than paying for individual courses.

Coursera has a couple of free-trial introductory options of either seven or 14 days, depending on what you are signing up for.

Getting value for money: It is easier to see the financial benefits of Coursera, because it gives you skills you can use to get a promotion or score the job you want. Plus, if you don’t need the certificate, there are many free courses on the platform. Plan out what skills you need and consider how important the piece of paper is to your career.

MasterClass

MasterClass doesn’t offer certificates. And it won’t help you if you, say, want to learn how to build a website. It isn’t that type of platform. What MasterClass does best is inspiration — whether that’s in the form of cookery classes, showing you the fundamentals of meditation, or helping you design your home. It has over 180 courses that span a range of themes.

There is something incredibly powerful about listening to someone you admire talking about a topic they are passionate about. And MasterClass’s high production values mean you’re right there in the room with them. I can highly recommend Yotam Ottolenghi’s course on Middle Eastern cookery, as well as Dr. Jane Goodall’s talk about her experiences with chimpanzees. It is hard to put a price tag on that type of learning.

MasterClass costs

Unlike Coursera, MasterClass does not let you sign up for individual courses, nor can you sign up every month. Your only option is to pay for a year’s membership, though you can reduce the cost by splitting it with friends/family.

Here are the annual fees:

Individual: $120 (1 account, 1 device)Duo: $180 (1 account, 2 devices)Family: $240 (1 account, 6 devices)

MasterClass will refund your subscription if you cancel in your first 30 days.

Getting value for money: I categorize MasterClass as entertainment rather than education. That’s not to say I haven’t gotten a lot out of its courses — I love learning. MasterClass is also significantly cheaper than Coursera on a monthly basis. But it doesn’t have a clear financial benefit, particularly as its courses won’t directly advance your career.

Plus, the fact that you can only sign up for a year is frustrating. I’ve also had issues where friends had to enter their credit card information to use its “free” guest passes.

Bottom line

MasterClass’s content may be fascinating, but it’s hard to justify the fee when there are good alternatives out that don’t cost a thing. In that sense, Coursera’s free content puts it above MasterClass in terms of value for money.

For example, former FBI lead hostage negotiator Chris Voss’s class teaches negotiation on MasterClass in an engaging way. However, there’s a free negotiation class on Coursera, taught by a professor at the Ross School of Business at the University of Michigan. Voss’s course is easier to watch. But it doesn’t warrant MasterClass’s $120 annual membership fee.

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Found a house you love? Here’s why you should be prepared to pony up an earnest money deposit alongside your offer. 

It’s a difficult and expensive time to buy a home. Supply is limited — according to the National Association of Realtors, there was only a 3.3 months’ supply of homes for sale at the end of August (while a four- to six-month supply is generally what’s considered necessary to equalize the market between buyers and sellers). Mortgage rates in the 3% range back in 2021 and early 2022 have sadly more than doubled — as of this writing, Freddie Mac says the average 30-year fixed-rate mortgage is now 7.57%. Ouch!

Despite the rates, prospective buyers are still jockeying for position and making offers on the few homes currently for sale. My theory (as an aspiring 2024 buyer myself) is that people have been waiting and saving money to buy, and are ready to get on the property ladder even if it means signing on for a more expensive mortgage now and refinancing when rates come down.

If you’re one of these aspiring buyers, there’s a way to give yourself an edge in a tough market and make your offer stand out a bit more. You can make a solid earnest money deposit.

What’s earnest money?

An earnest money deposit is money that you (as a potential buyer) promise to a seller as a gesture of good faith when you make an offer to buy their house. It usually amounts to 1% to 3% of the home’s purchase price, and if the sale goes through, it’s put toward your closing costs and down payment. The money is put into an escrow account (this is the safest way to make an earnest money deposit; you don’t want to lose this money to fraud).

Earnest money is also paired with contingencies written into your purchase contract, like a home inspection. If a home inspection turns up issues with the house that make you change your mind about buying it, you can terminate the contract and get your earnest money back. But if you want out of the deal for no established reason, the seller can often keep your deposit.

Why is it particularly important right now?

Making an earnest money deposit is a great way to stand out from the pack of buyers in a market like this one. In some cases, a seller may automatically turn down offers without a deposit. And making a generous one shows a seller that you’re really serious about the purchase. Plus, the more you pay as an earnest money deposit, the less you’ll have to put down at closing.

What else can you do when buying a home?

In such a difficult market for buyers, there are a few other key moves you should make to put yourself in the best possible position:

Dig into your credit report: Mortgage lenders are going to get up close and personal with your finances, so beat them to the punch. Pull your credit reports (free from AnnualCreditReport.com) and look for errors or black marks that should’ve fallen off your record by now. If you find any, you can ask the credit bureaus to remove them, which will boost your credit score.Improve your credit score otherwise: If you make a renewed commitment to pay your creditors on time (every time) and perhaps pay down some existing debt, you can raise your credit score. A better credit score means a lower interest rate — which means you save money.Save, save, and save some more: The more money you go into the buying process with, the better. Not just for a down payment (and the earnest money that is a part of that), but also to show a lender that you have cash reserves. Plus, an emergency fund is a wonderful thing to have when you’re a homeowner.

Yes, an earnest money deposit is yet one more consideration (and expense) of the home-buying process, but I’d argue it’s an especially important one in this current market. If you find the house of your dreams, consider making a solid one — it’ll show the seller you’re ready to buy their soon-to-be former home.

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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.
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Many shoppers are Prime members because of the many perks offered. Discover why one writer canceled her Prime membership nine years ago and never looked back. 

Amazon Prime is popular, especially for frequent online shoppers. With Prime, you can enjoy fast, free shipping on qualifying orders and member-exclusive deals and sales. But that’s only a fraction of the benefits. I used to pay for a Prime membership because I love a good deal and shop online often. But after canceling my membership in 2014, I haven’t paid to join since. Here’s why a membership isn’t worth the cost to me.

I got used to life without Prime

I initially canceled my Prime membership because my husband and I were moving to South Korea, and I didn’t want to continue paying for a membership we didn’t need. We spent two years living abroad and quickly learned what local shopping websites were best for us to use.

After returning to the United States, I wasn’t in a big hurry to resubscribe to Amazon Prime because I had already gotten used to life without it.

I still get free shipping as a non-Prime member

If I were to rejoin Prime, some of the perks would go to waste. The main reason I would consider resubscribing would be for the fast, free shipping benefits. But I can still get free shipping (which is typically very fast!) without paying $139 per year. And you can, too!

Since I only place an order on Amazon every couple of months (I know, some readers may think that sounds impossible!), I usually order multiple items. That means it takes almost no effort to meet the minimum spending threshold to qualify for free shipping. My packages may take a little longer to arrive than when I had Prime, but I’m a planner, so I’m not usually in a rush to receive an online order.

Most Amazon users must spend at least $35 on eligible items to qualify for free shipping. Until very recently, the threshold was $25. Whether it’s $25 or $35 — since I don’t order often, it’s easy to hit that threshold without draining my checking account. Because of this, I’m already getting free shipping without spending money on a Prime membership.

I live right by a Target store

Another reason for not rejoining Prime is because I live within three miles of a Target. It’s convenient for me to stop at Target once or twice a month whenever I run out of essentials.

Since I’m self-employed, I usually plan to go to the store soon after it opens in the morning. This way, I can quickly get my essentials before my work day begins. I can beat the crowds and long lines, and I’m less tempted to spend time buying non-essential fun stuff.

Target also offers free shipping on orders of $35 or more, so I also have the option to place an online order — and I can quickly return unwanted purchases in-store.

I can sign up for a free trial to shop exclusive sales

My final reason for not paying for Prime is Amazon frequently promotes free trials to users who aren’t Prime members. One of many perks of a Prime membership is access to Prime Day deals and other exclusive sale events. But I see no point in paying for a membership when I can sign up for a free trial to shop members-only events and deals.

Consider whether memberships and subscriptions are a must

Now you can see why I haven’t paid for a Prime membership for the last nine years — and I have no plan of joining again anytime soon. Before you rush to sign up for a new-to-you paid membership or a subscription-based service, consider whether it’s worth the cost.

Look at all the benefits and offerings and ensure they’re worthwhile before charging your credit card. If it fits your budget and you’ll put the membership or service to good use — great!

But if not, you may end up wasting money that could be used in other ways. For additional money-related tips, check out our free personal finance resources.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com and Target. The Motley Fool has a disclosure policy.

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In many cases, you can use your credit card to pay a medical bill. Learn the pros and cons for doing so. 

Credit cards are a particularly useful modern invention — you can pay for purchases securely and earn rewards or cash back on your regular spending in the process. And in many cases, you can use your credit cards for expenses beyond just buying groceries or shopping online.

Personally, I’ve been using mine to pay medical bills as of late — and no, I don’t mean I’m using a medical credit card. Those are different! Instead, I’ve been paying for lab tests and copays with my favorite rewards cards. But is this a good idea? Let’s take a look at the pros and cons, so you can make the right decision for you and your personal finances.

Pros for using a credit card for medical bills

There are a couple of good reasons you might consider putting an insurance copay or your portion of a bigger medical bill on a credit card. The first is that doing so could help you reach your minimum spend for a generous welcome bonus on a new card. This is especially effective if you have a large medical bill, like a dental procedure that your insurance doesn’t cover in full, or a new pair of eyeglasses with all the bells and whistles.

If you’re not working toward a welcome bonus, but instead have a credit card with a 0% APR offer for a long period, using it for a big medical bill could also be a smart move. If you’ve got 10 months left on your 0% offer, and need to pay a bill of $800, you can effectively finance that bill over the 10 months and not have to shell out $800 all at once OR pay interest on your bill. Just be sure you can afford to pay the bill off in full before your card’s go-to APR kicks in, or you will have to pay interest.

You might think this is the same as getting a special medical credit card and using that instead. But as a point of distinction, some medical credit cards don’t have 0% APR offers — they have deferred-interest offers instead. This is different, and if you’re not careful to pay the charge off before the offer ends, you’ll end up owing interest on your entire bill, even if you’ve only got $50 or $100 left to pay on the original amount.

Cons for using a credit card for medical bills

There are a few reasons to think twice before using your credit card to cover a medical bill. Medical debt is treated differently when it comes to your credit report and consequently, your credit score. There have been recent changes to how medical debt is reported on your credit score, and this is a significant win for the many Americans who face financial hardship because of medical expenses.

In 2021, 43 million of us had allegedly unpaid medical bills on our credit reports, according to the Consumer Financial Protection Bureau (CFPB). But as of April 2023, all collections activity on medical bills coming to less than $500 was supposed to have been removed from credit reports, automatically boosting the credit scores of many Americans. And in July 2022, all paid off medical debts that were sent to collections were supposed to be removed from credit reports, too.

All of this is to say that if you are struggling with medical bills, putting them on your credit card could be a dangerous move. I am very fortunate to be able to put a medical bill on mine, collect the rewards points, then turn around and pay it off. If you know you’ll have to carry that debt forward and could have a problem paying it off, don’t use your credit card for it — because if you do, it could negatively impact your credit score. Instead, consider an alternative way to pay.

Is there a better way to pay that bill?

If you are on shaky financial ground, you likely have options to pay medical bills that don’t involve swiping your favorite credit card. For starters, go through the bill with a fine-toothed comb and ensure your insurance actually paid as much of it as it was supposed to — billing errors are common. Then, give your doctor’s office or hospital a call, and ask to speak to the billing department. You’re allowed to negotiate medical bills, and if nothing can be done to reduce the amount you owe, you can get on a payment plan. You might also qualify for financial assistance, depending on your income and other circumstances.

And finally, a personal loan could be a cheaper way to finance a medical bill over a longer period — the best personal loans have lower APRs than many credit cards, and if you have a good credit score, you might qualify for a decent rate.

Owing money for medical care and being unable to afford those payments is scary — believe me, I know. Your credit card is great for many things, but depending on your own finances, it may not be the best payment method for medical bills. Consider all the angles discussed above before you swipe.

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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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