Money Management

Costco can be a lifeline for new parents. Read on for some blunders to steer clear of at a time in your new life when your costs may be up. 

You may be thinking of joining Costco after having a baby. Or maybe you’ve been a member for years, but you’re now planning to visit Costco more often given the many supplies you’re going to need on an ongoing basis, like diapers, wipes, and formula.

Costco can be a great resource for new parents. But at a time when your life has likely gotten a lot more expensive, it’s important to make the most of its offerings. Here are a few mistakes to avoid as a new parent with a Costco membership.

1. Writing off Kirkland diapers

As a new parent, it’s natural to want the best for your baby — and that might extend to name-brand diapers. But one thing you should realize is that Costco’s signature brand, Kirkland, makes its fair share of high-quality products. And unless your baby has known allergies, it pays to give Kirkland diapers a try.

Right now, a pack of 192 size 1 Kirkland diapers costs $34.99 online (prices may be cheaper at your local warehouse club store). The same quantity of size 1 Huggies diapers will cost you $44.99. And at a time when your credit card bills may be soaring, why spend extra?

2. Not looking at baby clothes in the apparel section

Babies have a tendency to outgrow their clothing very quickly. And when they’re not outgrowing their clothing, they tend to soil it or spit up all over it.

It can be very helpful to have an ample supply of infant clothing. Otherwise, you might find yourself permanently affixed to your washing machine.

Costco actually carries a variety of kids’ apparel items, so it pays to see what the warehouse club giant has on offer for infants. And that inventory might change from one week to the next. So if you don’t manage to find anything in your child’s size one week, take another look on your next visit.

3. Not upgrading your membership

A basic Costco membership costs $60 a year, while an Executive membership costs $120. You may be inclined to stick with the basic membership at a time when you’re spending a small fortune on infant supplies. But despite the higher upfront cost, the Executive membership might be your more cost-effective bet.

The $60 upgrade you pay for an Executive membership gives you 2% cash back on all Costco purchases. Meanwhile, you might end up making a lot more purchases now that you have an infant to care for. So try to crunch those numbers and estimate your upcoming Costco spending.

It takes $3,000 in annual Costco purchases to break even on the Executive membership upgrade fee (since 2% of $3,000 is $60). So if you think you’ll spend even a dollar more than that, then the Executive membership makes financial sense.

Shopping at Costco could help keep some of your infant-related expenses down. But do your best to avoid these mistakes so you can reap the most benefit and savings from your membership.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

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

 Read More 

It’s a new school year. Read on to see how this mom is pledging not to waste her money at the dollar store. 

When you have kids, the start of a new school year can be a very expensive time. Recent research from The Ascent found that parents planned to spend almost $900 this year on back-to-school shopping.

Because I have multiple children who are all enrolled in sports activities, my credit card tab was even higher than that — especially since this year, I wasn’t as successful as getting hand-me-down items as I normally am. But I would’ve been looking at an even larger bill had I not stocked up on certain supplies at my local dollar store.

I commonly rely on the dollar store to purchase supplies throughout the school year. And while that’s generally a source of savings, there were plenty of times over the past academic year when I found myself wasting money.

This year, I’d like for things to be different. Here are a few mistakes I’m pledging to do my best to avoid.

1. Overbuying items to avoid a repeat trip

My local dollar store is a five-minute drive from my home. In spite of that, I tend to get into a bit of a frenzy when I pop in for supplies, to the point where I’ll often purchase extras of what I need to avoid a repeat trip.

The problem? I often don’t need those extras. So instead of saving money, I’m wasting it.

This year, I intend to get on board with the idea of repeat dollar store trips. Granted, I maintain a busy schedule, so I can’t exactly be popping over to the dollar store every other day. But I can reasonably work an extra trip in here and there.

2. Going at the last minute to buy project supplies

While I tend to be very on top of my work-related deadlines, I’m not always so on top of my kids’ school projects. That’s partly because I try to foster independence in my household, and also, because I admittedly have limited patience for elementary school crafts.

When my kids need supplies for a project, I often find myself running to the dollar store at the last minute to purchase them. That’s a mistake, though, because dollar store inventory isn’t always consistent.

To put it another way, you can’t count on your local dollar store to have everything you’ll need on the spot. So waiting until the last minute to go there isn’t wise.

This year, I plan to hound my kids more about ongoing projects and do my shopping ahead of time. That way, if my local dollar store doesn’t have what I need, I can look at low-cost options on Amazon and wait for my orders to arrive in the mail.

3. Bringing my kids along when I shop

My youngest kids are twin third-graders, and they’re at an age where they actually understand money to a large degree. Last year, whenever I brought my daughters to the dollar store, I inevitably found myself conned into buying them extra things on the basis of “It’s only a dollar, Mom.”

Well, I refuse to keep falling into that trap. This year, I intend to do my dollar store shopping solo whenever possible. I may sometimes have to bring my kids along so they can pick specific things for their projects. But when it’s a generic list, they’re not invited to the dollar store party.

All told, I’ve definitely saved a bundle of money on school-related items by going to the dollar store. If I can avoid these mistakes this school year, I might enjoy even more savings. And if you’re someone who does a lot of dollar store shopping, you, too, may want to employ these tips.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

 Read More 

Making an extra $50 monthly payment toward your credit cards can impact how quickly you pay back what you owe. Take a look at how much you can save. 

If you carry a credit card balance, you are probably aware that your minimum payment each month isn’t very high. Generally, card issuers charge you a minimum payment of around 2% to 4% of your outstanding balance or charge you a monthly minimum of around $25 or $30 when your balance is low.

If you’re interested in becoming debt-free sooner, you may be considering paying extra to your credit cards. But what if you don’t have a ton of spare cash to throw at the debt? Maybe you only have around $50 extra per month in your bank account to make use of. Will that really make a difference in how fast your cards get paid off?

How much of a difference does a $50 extra monthly payment make?

An extra $50 a month can actually make a huge difference in terms of when you will be able to get your credit card balance paid down to $0.

Say, for example, you have a $5,000 balance on a credit card, the interest rate is 20.68% (the current national average), and your minimum payment is the lesser of 2% of the card’s balance or $25.

Here’s what would happen if you made a $50 extra monthly payment, versus not doing so:

The extra payment enables you to pay off your debt 44.4 years sooner than if you only made minimum payments. And you would save a whopping $21,348 in interest charges thanks to that extra $50 a month.

Why does paying an extra $50 a month make such a big impact?

Paying an extra $50 a month on your credit cards can bring your debt balance down much more quickly than if you only pay the minimum due. This is because your card’s required minimum payment goes almost entirely to interest and doesn’t make much of a dent in the principal balance at all.

Let’s say you made only the 2% minimum payment due on a $5,000 balance. Here’s what would happen during your first year:

At this rate, it’s not surprising that you’d end up taking 51.4 years to become debt free since your monthly payment would be doing pretty much nothing except lining the pockets of your credit issuer.

The extra $50 a month goes right to reducing your principal balance, though. So you end up actually reducing the debt you owe by much more with each payment, rather than paying only a tiny bit extra after covering the interest.

Now, it may seem challenging to find an extra $50 a month. But you likely have options if you look carefully at your budget. You may find you can cut out a streaming service or two, or stop paying for an activity your kids don’t really enjoy any more. If you can look at where your spending is going and try to free up that $50, it will be well worth it when you become debt-free dozens of years sooner.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

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.The Motley Fool has a disclosure policy.

 Read More 

The increased 2024 SNAP benefits come into effect today, but that extra money won’t go far. Find out how to make every cent of your food benefits count. 

Every Oct. 1, SNAP benefits increase to take into account changes in living costs across the year. The 2024 change comes into effect today, so food benefit recipients will receive slightly more money in October. Sadly, the increase doesn’t fully reflect the higher price tags on your groceries. As such, it will only do so much to relieve the pressure on families who rely on SNAP.

How much are SNAP benefits increasing?

For the 2024 fiscal year, the maximum monthly benefit for a family of four will increase from $939 to $973 in much of the country. Benefits vary depending on factors like your household size and income, but broadly speaking, you can expect an increase of 3.6% on what you currently receive. So if you get $600 a month, this would go up to around $622 from October onward.

Here are the changes in maximum benefits by household size in most states:

What the increase means for your family

Viewed in the context of the huge jump in living costs we’ve experienced, a $34 (3.6%) increase for a family of four does not sound like a lot. In fact, according to the Bureau of Labor Statistics, the cost of food actually rose 5.7% between June 2022 and June 2023. The SNAP benefit increase does not cover today’s higher food prices.

What this means for your family is that — more than ever — you need to stretch every SNAP dollar as far as possible. It may feel as if you’re already doing that. But the government is unlikely to increase SNAP payments again until next October. So unless you can find other ways to increase your income, the more ways you can save on grocery costs, the better.

Here are a couple of ways a family of four might stretch that $973 a month.

1. Shop around for the best deals

According to a recent Marketforce survey, ALDI, WinCo, and Lidl are some of the lowest-cost places to buy groceries. All three accept EBT payments. To give you an idea, a 16-ounce pack of Rotini pasta cost $1.09 in ALDI, where a 12-ounce packet cost $1.18 in Walmart.

ALDI’s 16-ounce pack would provide eight portions of pasta — enough for two meals for a family of four. Walmart’s pack would cost more and only stretch to six portions. If we try to compare like with like, 16 ounces of pasta at Walmart’s price would come to $1.57, almost $0.50 more.

2. Double up your SNAP dollars

There are a couple of different programs that give SNAP recipients two-for-one on fruit and vegetables at participating stores and farmers markets. Find out if any of them, such as Double Up Food Bucks operate in your state.

The maximum spend is often $20 a day, but $40 worth of produce can go a long way. Look for what’s in season or stick to year-round low-cost produce, such as potatoes, carrots, and onions. Think about produce you can freeze or batch cook. I often stock my freezer with soups and stews made from whatever vegetables I can get at a low price.

3. Use cash back apps and coupons

In many cases, you can use coupons and cash back apps with your EBT card. Look for ways to stack rewards and offers to the biggest discounts. Cash back apps like Ibotta that let you scan your receipt after you’ve shopped work well with EBT payments. Before you go to the store, plan out what offers you will use and put them on your list. Ibotta also offers extra bonuses in the app for, say, buying a specific brand on three different shopping trips, or redeeming a certain number of offers. That could give you an extra $5, $10, or more in cash back.

In terms of coupons, keep an eye out online for coupons on products you buy regularly, and don’t discount physical ones either. I always pick up in-store flyers and free newspapers and clip the coupons. You can sometimes save more by using multiple coupons, too. Whether you’re saving 20% off cheese or $5 on laundry detergent, those savings are important. Pay attention to the small print, especially if you’re using coupons alongside your cash back app.

Help is available

If you don’t have enough money in your checking account to feed your family, call United Way at 211 or look for a local food pantry or soup kitchen. There is a lot of demand for food banks at the moment, so try to arrive early and check beforehand what documents you might need to take.

If you are struggling, see if you can qualify for any other benefits. You might, for example, qualify for help paying energy or other utility bills. Or there may be other food assistance you’re eligible to receive. It is beyond stressful when you don’t have enough cash to cover the essentials, especially if it means you or your family go hungry.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

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

 Read More 

Low on funds? Read on for some ways to keep your dates affordable and interesting. 

Being single doesn’t only mean having to scramble to find a date when you’re invited to a wedding or major event. It can also mean spending a small fortune when meeting that perfect someone.

Match’s 2022 Singles in America study found that singles are spending $130 a month on average, or $1,560 a year, on dates. And at a time when money’s tight for a lot of people due to lingering inflation, that’s just bonkers.

The good news, though, is that there are steps you can take to stay active on the dating scene without emptying your savings account in the process. Here are some low-cost date ideas to consider proposing the next time you make a connection.

1. Take a hike

There’s something about exploring a new trail and taking in fantastic scenery that can make for a great “get to know you” experience. If you’re the outdoorsy type, suggest going on a hike the next time you need a low-cost date idea. Spend a few dollars buying groceries for a picnic lunch, and you’re all set. And if you’re new to hiking, you can use sites like Trail Finder to explore different paths in your area.

2. See a free concert

Many people like going to concerts. But if you’re buying tickets to a show, you might quickly rack up a giant credit card tab before you even factor in parking and refreshments. A better bet? See if there are any free concerts happening in your town or nearby areas. You can often find this information on your town’s website or social media page.

3. Whip up a home-cooked meal

Dining out at restaurants can be exponentially more expensive than cooking at home. So instead of inviting your next date out to a fancy cafe in town, consider whipping up your signature dish in your own modest kitchen. Put out candles, and you’ve got the ambiance of a restaurant without the price tag.

That said, this sort of date is generally most suitable for someone you’ve been seeing for a while. It’s usually best to keep first date encounters to public places — just in case.

4. Find a drive-in theater

The average movie theater ticket cost almost $12 in 2022, according to research firm EntTelligence. But if you live in a major city, a single ticket might cost more.

A better bet? See if there’s a drive-in movie theater in your neck of the woods. Often, this is a less expensive way to see a movie because drive-in venues tend to screen older films (and because of that, ticket prices tend to be lower). Plus, that way, you and your date can comment on the movie while it’s playing without disturbing fellow theater goers.

There’s no question that dating can put a huge strain on your budget. But it doesn’t have to be unreasonably expensive. Consider these budget date ideas if you’re doing your best to put yourself out there, but don’t want to compromise your finances in the process.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

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.The Motley Fool has a disclosure policy.

 Read More 

When you miss utility payments, you may get hit with fees and have service disconnected. Find out about resources that can help. 

If you’re experiencing financial troubles and are lacking cash in your checking account, you may have no other option but to pay some bills late or skip payments altogether. So what happens if you miss your utility payments because you can’t afford the bill? Keep reading to learn what happens when you don’t make the payment, as well as some resources if you’re struggling with your bills.

What happens when you don’t pay utility bills?

First off, let’s define what counts as a utility bill. Your utility bills are the payments you make for essential services like electricity, water, and gas.

If you miss your utility payments, you’ll typically be hit with a late fee that will appear on your next statement. However, if you don’t make payments over an extended period, you risk disconnection and having your account sent to collections. Utility companies could also require you to pay a higher security deposit in the future.

The rules for disconnecting utilities vary widely by state and company. Some states have laws that prohibit utility companies from disconnecting services in some situations, like during certain times of year, when the temperature hits certain thresholds, or if the household has children, elderly residents, or a member with a medical condition.

In Maryland, for example, an electric company can’t shut off service if the 72-hour forecast predicts temperatures higher than 95 degrees or lower than 32 degrees. If someone in the household has a serious medical condition, disconnection is delayed for 30 days. In Florida, however, there are no state laws that prohibit disconnection regardless of temperatures or whether a household member has a medical condition.

If your service is shut off, you’ll typically have to pay the outstanding balance, plus a reconnection fee.

Will unpaid utility bills hurt my credit score?

Utility companies typically don’t report your payments to the three major credit bureaus, so being late on a payment shouldn’t hurt your score. However, if you don’t pay your bill for an extended period, it’s likely that your service will be disconnected and the account will go to collections. That can cause your score to tank because payment history matters more than any other credit factor, accounting for 35% of your FICO® Score.

And while the three major bureaus don’t keep track of utility payments, at least one specialty consumer reporting agency called the National Cable, Telecommunications and Utilities Exchange (NCTUE) compiles information about payment history from utility, cable, and TV companies. This reporting could make it harder to get services in the future or result in a higher security deposit.

What to do if you can’t afford your utility bills

If you can’t make your utility payments, it’s ideal to contact your service provider before you miss a payment. It may be willing to put you on a payment plan or offer other emergency relief options. Other options that may be available:

Apply for LIHEAP or LIHWAP: The Low Income Home Energy Assistance Program (LIHEAP) provides assistance with energy costs to families with low incomes. And the Low Income Household Water Assistance Program (LIHWAP) can help with water and wastewater costs. Eligibility requirements will vary by state. If you’re approved for a grant, the money goes directly to the utility service provider.Call 211: If you’re struggling to make utility payments, call the 211 hotline. You simply dial 211 in the same way you’d dial 911. The professionals who work the hotline may be able to connect you with local resources that can help.Look into payday loan alternatives. If you’re a member of a credit union, you may be able to receive a payday alternative loan (PAL). These are small-value loans that typically range from $200 and $1,000 that you repay over one to six months. The interest is capped at 28%. That makes them significantly cheaper than payday loans, which often have interest rates in the 300% to 400% range.

Though it won’t help you with past-due bills, the utility company may have programs that allow you to split future bills into 12 equal payments based on your past usage. That can help make bills more predictable, particularly if you live in a region that’s prone to extreme weather.

Finally, if you’re struggling with debt in general, consider credit counseling through a nonprofit organization like the National Foundation for Credit Counseling (NFCC). You can find assistance with negotiating with creditors and managing debt. You might also want to discuss whether declaring bankruptcy makes sense.

The bottom line: There’s no shame in needing help. But the sooner you take action, the more options you’ll have available.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

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.The Motley Fool has a disclosure policy.

 Read More