Money Management

Orthodontic treatment can be expensive. Read on for ways to swing it. 

When my dentist told me a few years back that all of my kids would likely need braces, my first thought was, “Well, there goes my savings account.” And now that my oldest child is on the cusp of braces — he’s already done the pre-braces routine, like a palate expander and retainer — I can tell that my dental insurance is going to be pretty useless.

Some dental insurance plans do include orthodontic benefits, but they commonly impose a lifetime limit. So even if you’re fortunate enough to have that coverage, it might only pay for a fraction of your child’s orthodontic treatment.

That’s my situation. Since my coverage has been maxed out on pre-braces treatment, the actual cost of braces is something I’ll have to swing on my own.

Meanwhile, Luna Pediatric Dentistry says the average cost of traditional braces is $3,000 to $7,500. That may or may not include the extras your child might need, like retainers and such.

If your child needs braces, you may be resigned to taking on a whopping credit card balance you pay off over time. But there may be a much better way to go than that. Here are some options worth exploring.

1. Fund an HSA

An HSA won’t make braces cost less. But what it can do is lower your taxes so you can save money when socking funds away for orthodontic treatment.

HSAs let you withdraw money for healthcare expenses, and braces count. The money you put into an HSA goes in tax-free, which, in turn, means the IRS can’t tax you on a portion of your income. That tax savings could help offset your orthodontic costs.

You should also know that normally, you can’t have an HSA and an FSA (flexible spending account) at the same time. But some employers will let you open a limited-purpose FSA in conjunction with an HSA. And in that case, you can use an FSA for orthodontic treatment while reserving your HSA balance for expenses like urgent care visits and medications.

2. Get on a payment plan through your orthodontist

Orthodontists understand that the cost of straightening a child’s teeth can be astronomical. So they commonly offer affordable payment plans that have you covering the cost of your child’s treatment over time. These plans tend to come with little interest or no interest — unlike credit cards, which are notorious for charging loads of interest.

You may be inclined to take out a personal loan to cover the cost of braces. But before you do, see what payment options your orthodontist offers, because there might be a lot of interest-related savings to reap.

3. See if your child is a candidate for removable braces

In recent years, treatments like Invisalign that revolve around removable braces have become increasingly popular. These treatments spare patients a mouth full of metal, and they can be quicker than traditional braces. They can also be less expensive — though not always.

Children aren’t always candidates for removable braces. But if yours is, it pays to compare the cost of a treatment protocol like Invisalign to the cost of traditional braces. Your orthodontist can give you a cost breakdown based on your child’s specific case, and from there, you can see which route is less expensive to take.

Learning that your child needs braces is a bummer — not just because of the numerous appointments and inevitable complaints on your kid’s part, but also because of the expense involved. It pays to explore different options for paying for braces, so money doesn’t have to get in the way of your child’s smile.

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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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No one starts out as an investing expert. Keep reading for a few common errors you might make when you open a brokerage account — and how to avoid them. 

Investing money in an account with a brokerage firm can help you build wealth. You could invest in an IRA with a broker, or could open a taxable account if you’re investing for something other than retirement.

No matter what kind of investment account you have, though, there are three big mistakes you’ll want to avoid. Here’s what they are.

1. Trading too often

Being an active trader can actually be one of the biggest investing mistakes that you could make. That’s because it can be too hard to try to time when to buy and when to sell. Many people overreact to both bad and good news, or jump on bandwagons too late when they hear about a “hot stock.” This can lead to buying at high prices and selling at low ones, which is the exact opposite of what you want.

Trying to time the market can actually cost you a whole lot more than you might think. For example, if you had $10,000 invested in the S&P 500 index from Jan. 1, 1980 to March 31, 2021, that $10,000 would have turned into $1.09 million if you left the money invested the whole time. But here’s what it would be worth if you missed just a few key days, according to Fidelity:

$676,395 if you missed the five best days in the market.$487,185 if you missed the 10 best days$176,591 if you missed the 30 best days$77,930 if you missed the 50 best days

You can’t know when the best day will be. So, rather than trading frequently and risking missing out, you should invest your money in assets that you’re happy to hold for the long term and leave it alone. Not doing so could be a costly mistake.

2. Trading on margin without understanding the risks

If you trade on margin, you borrow money from your brokerage firm against the value of your stocks and you invest those borrowed funds. This gives you more leverage since you have more money to trade with. But you have to pay interest. And, if your investments perform poorly and your balance drops too much, you could be forced to sell your assets at a bad time or the broker could sell them for you.

Trading on margin is really risky because you have to earn pretty good returns to end up better off after paying interest. Plus, you could face a “margin call” and be forced to sell at a bad time if your balance drops too much. Taking on this risk isn’t something you should do unless you’re a pretty advanced investor, even if it might seem like an attractive option.

3. Not taking advantage of educational materials

Finally, the last big mistake you’ll want to avoid is not taking full advantage of the educational materials your broker offers. Most brokerage firms provide free tools to consumers. You should use them to increase your investment knowledge and make selecting investments easier. Everyone has to start somewhere, and leaning on tools like these can make you a better investor.

By avoiding these three mistakes, you may be able to grow your brokerage account balance and avoid unnecessary losses that could come from simple errors.

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

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Refinancing a personal loan is possible and it could make sense. Read on to learn when it’s worth considering. 

Personal loans provide a versatile borrowing solution for many people who need to purchase something they can’t pay for all at once.

Once you have taken out a personal loan, you’re committed to paying it back with set payments from your checking account at a schedule you’ve agreed to with your lender. But depending on the circumstances, you may have the option to refinance. That would mean taking out a new loan, with new terms, and using it to pay off your existing personal loan.

Is refinancing a good idea? Here’s what you need to know about whether you can or should refinance a personal loan.

Can you refinance a personal loan?

Refinancing a personal loan is possible. You are allowed to take out a personal loan to use the money for just about anything that you want, which includes paying off an existing personal loan debt.

In order to refinance, you would need to:

Apply for a new personal loan that has more favorable termsGet approved and receive the funds from the new personal loanUse the money from the new personal loan to repay your existing debtBegin making payments on your new loan

It can be easier to get approved for the new loan if you have good credit and a record of on-time payments.

Should you refinance a personal loan?

While you can refinance a personal loan as long as you can qualify to borrow from a new lender, you only want to do this in circumstances where it makes financial sense.

In general, you would want to refinance only if your new loan has a lower interest rate than your current one. You don’t want to refinance to a higher rate loan, because you’d raise your borrowing costs by doing this. You’d have to pay more in interest to your lender each month, which would make your loan harder to repay.

You also need to consider the repayment timeline of the new debt versus your existing loan. See, if you reset the clock on repayments and it takes longer to pay off your debt, you could pay more over time even if your rate is lower.

Say, for example, that you currently owe $5,000 on a loan at 13% APR and you have three years left to pay back the loan. If you’re thinking of refinancing to a new loan at 8.00% with a five year repayment term, here’s what that would look like.

Your refinance loan would cost you more over time, although you would save a bit each month. This happens if you pay interest for longer. You would also be repaying your debt for two extra years, which would mean you wouldn’t have that money each month to devote toward other goals.

You’ll have to carefully consider both the new monthly payments and total payoff costs when deciding if refinancing your personal loan makes sense. You may decide the savings each month are worth a little bit of extra interest — but you may also decide you’d rather just be free of your debt sooner.

The key is to consider both options carefully, understand the long-term impacts of your decision, and make a fully informed choice about whether refinancing a personal loan is right 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.The Motley Fool has a disclosure policy.

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Target is upping its game with greater convenience and more ways to save money. Here are some ways you can add to the savings. 

Earlier this year, Target management made concrete plans to up the retailer’s game. First and foremost is the goal to convince shoppers that Target delivers affordable joy. Target wants to appeal to value-conscious shoppers by introducing more items starting at $3, $5, $10, and $15.

But that’s not where it stops. Target is expanding drive-up returns, which allow customers to return new, unopened items from the comfort of their cars. The retailer also plans to open around 20 new stores to better reach new customers. In existing stores, expect to see plenty of remodeling and updates. In short, Target is doing everything within its power to make shopping more pleasant and more affordable.

While Target does its part to help you leave more money in the bank, here are some of the things you can do to cut the cost of a Target run.

1. Mark it on the calendar

Did you know that most Target stores mark down the prices in specific departments on certain days of the week? For example, if you’re looking for sporting goods, you’ll want to shop on Thursday when the prices are marked down.

2. Learn to read the clearance codes

15%: Look in the upper right-hand corner of the red clearance tag. If you see the number 15, that means it’s marked down 15%30%, 50%, 70%, and 90%: If, instead of a 15, you see a higher number, that means how much has been knocked off the original price. For example, if you’re looking at an item that originally sold for $30 and see the number 70 in the right-hand corner of the tag, it should be on sale for $9 (70% off).Tags ending in $0.06 or $0.08: Seeing either of these numbers means that any inventory of the item that remains after this week will be marked down again during the next markdown cycle. Normally, items remain at the same price for two weeks.Tags ending in $0.04: When you see $0.04, you know that you’re looking at the final clearance price. It will never drop any lower.

3. Take advantage of price-matching

Of course, it’s good to peek at Target ads to get a sense of what’s on sale, but keep an eye out for items you’ve already purchased. Let’s say you buy a toy for $25. A few days later, you notice that one of Target’s competitors has the same toy on sale for $15. If you purchase an item that goes on sale, either at Target or one of its competitors, within 14 days, Target will adjust the price.

You’ll need to bring your receipt and proof of the price you want to match. That proof can be a digital ad, the retailer’s website pulled up on your smartphone, or the entire printed ad (Target will not accept photos of the ad or photocopies).

Exclusions do apply, so take a moment to check Target’s full price-matching policy before making a trip to the store.

4. Bring reusable bags

Target gives you a little pat on the back and a $0.05 discount for each reusable bag you bring along. It’s not a fortune, but every bit helps. So remember to grab your reusable bags for your next Target run.

5. Stack those coupons

You’re free to stack Target store coupons with Target Circle coupons and manufacturer coupons to squeeze every cent out of your couponing efforts. For example, if you’re buying dish soap and have a Target store coupon that offers 30% off cleaning supplies, you can add it to a Target Circle coupon offering 10% off Dawn Dish Soap and a printable manufacturer coupon you found online.

6. Take advantage of discount cards

Some websites offer discounted gift cards — CardCash is one to check out. Card Cookie is another good one. If you’re a regular Target shopper, take advantage of the savings by picking up cards when the price is right. Let’s say you come across a card that’s 5% off. That means you can buy a $100 gift card for $95. Added to all the other ways you can save money at Target, the final tally at the cash register may leave you with enough each week to invest a little more or save up for a vacation.

7. Ask about a rain check

If a product you want is out of stock, stop by customer service on your way out of the store to ask for a rain check. Depending on the state, you have between 30 and 45 days to take advantage of the price. According to the Target website, not every store offers rain checks, but it can’t hurt to ask.

8. Squeeze the savings with apps

Apps like Ibotta, Fetch Reward, and Dosh offer cash back. Scroll through your favorite cash back apps to ensure you’re not leaving any money on the table.

Why not make a sport of it? Utilize every Target savings method you can find to see how much you save. Then, the next time you plan a Target run, try to save even more.

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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.Dana George has positions in Target. The Motley Fool has positions in and recommends Fetch and Target. The Motley Fool has a disclosure policy.

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Costco has incredible deals on baby supplies, like monitors, cribs, and diapers. If you’re a first-time parent, find out why you should have a membership. 

A few weeks ago, my wife and I had our first baby. I’m sure I’m not alone when I say that the first moments were filled with unadulterated joy and threw everything I thought I knew about myself in a new light. I’m probably also not alone when I say those moments were brief and followed immediately with constant worry and confusion, as I realized I wasn’t as prepared as I had thought (no one told me I had to learn to swaddle!)

For most new parents, including my wife and me, having a baby is as much an adjustment to your daily lives (and sleep) as it is to your personal finances. Baby items are expensive, and babies have no concept of saving money. Case in point: My daughter really likes chain diapering, that is, having back-to-back blowouts. It happens so frequently and unpredictably I swear she’s inherited a sense of humor.

For diapers, wipes, and other baby items, Costco has come in handy. Now that our baby is here, we’re discovering the necessity of buying supplies in extreme bulk. If you’re expecting — or have a baby — and you’re on the fence about Costco, here are three ways the warehouse has made a difference for us.

1. Low prices on diapers

As I mentioned above, we’re going through diapers at a blistering pace. I can remember thinking in the pre-baby days, “192 diapers should last us a month at least, maybe even six to seven weeks.” So naive, Steven. So, so naive.

Fortunately, buying diapers hasn’t hurt us financially or put us in credit card debt. Part of that has to do with buying them in bulk at Costco. We buy the Kirkland Signature diapers, which cost $34.99 online for 192, or roughly $0.18 per diaper. That unit price is super hard to beat, no matter where you shop.

Even if we didn’t buy Kirkland diapers and chose Huggies instead, Costco would still offer the best value. To get an idea of how much you could save, here’s how Costco stacks up against Walmart and Amazon for Huggies diapers.

Again, Huggies aren’t the cheapest diapers. But if you’re a Costco regular, it’s encouraging to see that the warehouse retailer sells them at the lowest price.

2. Amazing deals on (most) baby necessities

Another benefit of shopping at Costco is that the warehouse sells almost everything you need to start your life with a newborn. It’s a one-stop shop for baby monitors, car seats, breast pumps, formula, diaper rash cream, and cribs. It doesn’t have everything — it’s missing strollers, pack-and-plays, and bassinets — but you can knock out a good chunk of your baby shopping at once.

As far as prices go, Costco again takes the lead for most items. It’s not the cheapest for everything, and, even when it does have the lowest price for a specific brand, it may lack brand names or models that are even cheaper.

For one example, just look at its baby monitors. If you look online, you’ll see Costco sells a VTech Smart Video Baby Monitor for $99.99. The monitor has a 7-inch screen and a 110-degree wide-angle lens. It’s actually a pretty good deal. In comparison, Walmart lists the same Vtech for $145.

But, like most items at Costco, the retailer doesn’t offer a variety of Vtech choices, only the monitor with a 7-inch screen. And while that’s a good deal for that size, you might not care if your monitor is as wide as a Nintendo Switch — and you might save money if you opted for a smaller size. For instance, a Vtech with a 5-inch screen is selling at Best Buy for about $80. For a difference of 2 inches, you could save yourself $20.

So, yes, Costco has great deals on baby necessities. But don’t let your guard down — compare its prices to other retailers and see if it’s the best value.

3. Buying in bulk saves time

And trust me — saving time is almost as valuable as saving money. Having an ample reserve of diapers, wipes, and trash bags prevents us from putting the baby in the car, driving to Costco, wheeling her around — in that bumper-to-bumper cart and trolley traffic, mind you — and hoping she can hold out on the wailing until we get home.

All told, Costco can be a blessing to first-time parents. It might even be worth upgrading to an Executive membership to get 2% back on all your baby purchases. At the very least, it could help you earn the price of the membership ($120), plus put you ahead with how much you’re saving on baby necessities.

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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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Amazon.com, Best Buy, Costco Wholesale, and Walmart. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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