Money Management

Both Kroger and 7-Eleven have higher consumer popularity ratings than Trader Joe’s. Find out why, along with some tips on picking the best stores. 

Trader Joe’s has a devoted fan base, and many customers simply love the store for its affordable products and unique offerings. The store is not just bank-account friendly, but also offers healthy and delicious foods you can’t buy elsewhere.

But while many people love Trader Joe’s so much that they campaign to get stores to open near them, Trader Joe’s isn’t the most popular grocery store. Two others beat it in terms of consumer popularity based on a YouGov survey conducted in the second quarter of 2023. Here’s what they are.

These two stores have higher consumer ratings than Trader Joe’s

According to YouGov, Trader Joe’s has a 62% popularity rating — which is pretty great. But there are two stores that top it:

Kroger, with a 64% popularity ranking7-Eleven, with a 62% popularity ranking

(You’ll note that the percentage for 7-Eleven and Trader Joe’s is the same, but the study has 7-Eleven ranked higher in its list).

Now, there are several potential reasons for Trader Joe’s coming in third. For one thing, Kroger and 7-Eleven have many more stores in more locations than Trader Joe’s. There are 564 Trader Joe’s nationwide as of the start of August 2023. By contrast, there were 2,719 Kroger stores as of the first quarter of 2023, and there were 9,478 7-Elevens in August of this year.

The larger number of stores explains why Kroger and 7-Eleven also beat out Trader Joe’s in “fame” rankings, earning scores of 95% and 98% respectively, compared with a 93% fame rating for Trader Joe’s.

Krogers also tend to be larger stores carrying more products than the average Trader Joe’s, while 7-Elevens are more convenient quick stops where you can often also buy gas along with picking up a few grocery items.

Does the popularity of a store matter?

It may seem like it makes little sense to select a grocery store based on popularity and, indeed, that shouldn’t be the sole criteria you use when deciding where to break out the credit cards to buy your groceries.

But popularity does matter to the extent that if a lot of people love a store, there’s often a good reason why. Kroger, for example, is popular because it has a huge selection of affordable private label products that keep grocery prices down for consumers. It also has a strong loyalty program that incentivizes customers to shop there in exchange for generous gas discounts, as well as a top-notch customer service team due to its higher-than-average pay rates.

When you’re trying to decide which grocery store to shop at, taking user reviews and brand reputation into account is absolutely a valid way to narrow down which stores deserve your hard-earned cash. Of course, you’ll also want to do things like:

Compare the prices of the items you buy most frequently to see where you can get the best deals.Learn each store’s policies for things like use of manufacturer coupons or returns when products have problems (like moldy fruit, for example).See which stores are convenient to your home so you aren’t spending a lot on gas.

By considering all of these factors, you can make informed choices about where to buy your groceries. Considering that the Bureau of Labor Statistics reports average spending on food consumed at home was $5,259 per consumer unit in 2021, taking the time to choose your grocery store wisely just makes good sense.

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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 recommends Kroger. The Motley Fool has a disclosure policy.

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When adding a baby to the family, many people should consider increasing their life insurance coverage. Here’s what you need to know. 

Life circumstances can sometimes necessitate buying more life insurance coverage. Having a baby is a major lifestyle change, so does that mean it’s a good idea to buy more insurance when a new bundle of joy is born?

The answer to this question can depend on a policyholder’s specific situation. Here’s what new parents need to know to make the choice.

Is buying more life insurance important after having a child?

The purpose of life insurance is to make sure loved ones depending on the policyholder are not left financially devastated by an untimely death. Generally, a person should use the DIME formula to decide how much insurance coverage to buy. This stands for:

Debt: The life insurance policy should be large enough to repay outstanding debts the deceased owed.Income: The policy should provide the money to replace income the deceased was earning for as long as it is needed.Mortgage: The coverage should provide enough money to repay the mortgage for a family home.Education: The policy should ensure there’s plenty of funds to pay for the education of minor children.

Adding a new baby means adding additional education costs. The average cost of college is already $36,436 a year per student, and it’s rising rapidly, so it will be even more expensive by the time a new baby reaches college age. Educational costs don’t just start in college, either. There’s preschool to consider and private school if that’s desired, and extracurricular expenses as well.

Children also require a lot more spending, even beyond educational expenses. The average cost to raise a child was estimated at $310,605 in 2022. The birth of a new child adds a lot of extra expenses to a family’s budget. It could also mean the family needs a new home to accommodate a growing family or that the family will become even more dependent on the services of a stay-at-home parent or the income of a parent who will serve as the primary breadwinner.

For all of these reasons, it may make sense to buy additional life insurance coverage when a new baby is born. However, a lot depends on the coverage already in place. Since it’s cheaper to buy coverage at a young age and many people look toward the future when purchasing a policy, some people may have purchased plenty of coverage for multiple kids at the time they originally put their insurance in place.

To decide if more insurance is necessary, it’s best to simply work through the DIME formula again. If the new baby changes the calculations so more income or services are required, then buying additional coverage is a good idea.

How to get more life insurance coverage

A policyholder who decides to get more life insurance can’t necessarily just call up their insurer and ask to raise their death benefit amount. That’s because their premiums were priced based on their age and desired coverage at the time they bought the policy and they can’t just change things years later.

Now, some insurers do offer the chance to buy a predetermined amount of initial coverage without going through the full underwriting process again (that’s the process the insurer uses to assess risk). This results in a premium increase, though.

If a policy’s death benefit can’t be increased enough, it may be possible to buy an additional life insurance policy to offer more coverage. However, this would involve going through underwriting, so pre-existing conditions could be disqualifying or premiums could be more expensive since the policyholder would be older.

The best thing to do is to make sure to buy a sufficient amount of coverage from the start so you’re ready for future life events. If it’s too late for that, then be sure to do the math on how much coverage is needed after a baby joins the family and to explore options for adding additional protection if it’s needed to provide for the new bundle of joy.

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Sharing a bank account with your spouse makes a lot of sense. Be sure to check out these three reasons why research shows it’s often a good idea. 

Marriage is both a life partnership and an economic partnership. Whether you combine finances or not, the financial decisions you and your partner make will inevitably impact each other.

If you’re trying to decide whether to merge your financial lives fully by opening a joint account at a bank, there’s research to suggest this is the right approach. A study recently published in the Journal of Economic Research found that a shared account could help newlyweds sustain relationship quality over the first two years of marriage. Meanwhile, the study found that those who kept their money separate experienced declines in their relationship quality during that same period.

Why would sharing an account make such a difference? There were three reasons identified in the study — all of which are good reasons why sharing a checking account or savings account with your spouse makes sense.

1. A shared account improves how each spouse feels about money management

A joint account can help a couple maintain a stronger relationship because it improves how each person feels about handling money.

Trying to manage your entire financial life on your own can be stressful. There are tons of little decisions you make every day that can have a big impact on your future. If you have a joint account, you have someone to bounce things off of and someone to help keep you accountable.

Pooling your resources together also means there’s more money to go around. You have a larger pot of cash that you can use to do things, which can make you feel less stressed about money than if you each have separate accounts you have to allocate to different things.

When my husband and I combined our accounts after years of marriage, we noted this benefit right away. We each worried less about how we were going to cover our share of the bills because we knew we had each other’s backs.

2. A shared account promotes shared goals

Putting your money into one account has another major benefit: It makes it easier to work toward a shared goal together, rather than you each having the separate goals you’re trying to accomplish.

Say, for example, one of you has credit card debt. That debt could easily be seen as your spouse’s problem if you have separate accounts and they came into the marriage with it. But it impacts the total amount of money coming into your household since some of it is going toward interest.

If you’ve combined your financial lives, it’s debt you can both work to pay. You’ll be in it together, and be more likely to get it paid off faster so you can devote your shared income to other things.

3. A shared account promotes adherence to communal norms

Communal norms are linked to higher relationship satisfaction. Basically, when you adhere to communal norms, you and your spouse each respond to each other’s needs without expecting reciprocity. If you fill up your spouse’s car with gas because you know they hate pumping it, you do it to be nice — not because you want them to fill up your tank tomorrow.

A shared bank account has been found to promote adherence to communal norms because you get used to working as a team on things and balancing each other’s needs. You aren’t divvying up the bills and tracking who owes what.

Now, all of these benefits are absolutely great reasons to combine accounts with your spouse. However, before you move forward, you’ll want to be sure you’ve had some discussions and are on the same page about how you’ll handle the responsibilities of managing money together. You’ll want to be sure you can trust your partner to use the money wisely and that you have some ground rules in place for deposits and withdrawals.

If you have had conversations about how your shared account will work and you feel like you can trust your spouse, you should seriously consider opening that joint account ASAP so you can reap these three big benefits.

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Want to fly in business class without paying thousands of dollars? Maybe you can. Find out how one writer got a business class upgrade for less. 

While I wish I could afford to fly business class every time I took a trip, that’s not my reality. For the majority of the trips I take that require me to fly, I book an economy-class ticket. That’s because I don’t make a CEO-level salary, and I’m working to meet my personal finance goals.

But I have flown in business class a few times. Some airlines allow passengers to bid for a seat upgrade. If your upgrade offer is accepted, you can improve your travel experience on the cheap. Keep reading to discover what you need to know so you don’t miss out on this service.

I flew in style without paying full price

Over the last decade, I’ve traveled to many international destinations, and flown with quite a few international airlines. Some of these airlines allow customers to bid on seat upgrades. Here’s how it works: You’ll be asked how much you want to pay to upgrade your seat, and then the airline decides whether to accept your bid.

There’s no guarantee that the airline will accept your offer, but sometimes it works out, and you’ll get upgraded. My bids were accepted on three occasions. Here’s a look at the route, airline, and cost I paid for each business class upgrade below:

Seoul to Prague with Czech Airlines (12 hours): $325 per personPanama City to Lima with Copa Airlines (4 hours): $115 per personSeoul to Kuala Lumpur with Malaysia Airlines (6.5 hours): $90 per person

I had already paid the standard economy ticket price for each flight. After my bids were accepted, my credit card was charged for the additional upgrade price. Considering the total cost paid for each flight, these upgrades were a win for me and my wallet.

How to bid on a seat upgrade

So, you already have an economy-class ticket purchased, and your flight is coming up soon. Are you dreaming of flying in a premium-class cabin? Maybe you can! If your flight has unsold business class or first-class seats, your airline may allow you to bid on a seat upgrade.

If the airline offers this service, you may receive an email asking how much you’d be willing to pay to upgrade your ticket. You might also see this advertised in your airline’s mobile app. You’ll be asked to provide the maximum amount you’ll pay for an upgrade. Make sure to only bid what you can afford to pay. The last thing you want to deal with is credit card debt.

The airline will compare bids and decide who gets an upgrade. You’ll be alerted if your offer is accepted, your credit card will be charged, and you’ll receive a new boarding pass. Most airlines have a minimum bid amount — so you likely won’t get to fly in business class on a 10-hour flight for only $100. If your offer isn’t accepted, you’ll have your original ticket as originally planned.

Unfortunately, this is a practice that most major U.S. airlines have yet to take part in. I have yet to see the option to bid on a price for an upgrade with carriers like Delta, American Airlines, or United Airlines. But maybe someday it will be more common.

Here’s a list of a few airlines that offer bid upgrades:

Air CanadaCopa AirlinesCathay PacificCzech AirlinesIcelandairLATAMLufthansaMalaysia AirlinesQantas

Keep in mind this isn’t an exhaustive list. Before your next flight, keep alert for any emails or in-app offers for seat upgrade bidding opportunities. This could make for an excellent way to improve your flight experience without draining your checking account.

Travel deals can make vacations less costly

As everyday living costs rise, it can sometimes feel like your travel goals are out of reach. But there are still ways to save money on travel expenses. Unique opportunities like seat upgrade bidding can allow you to prioritize travel spending without disregarding your budget.

Watch out for travel deals so you don’t spend more money than necessary on your next trip. If you love to travel, you may want to consider adding a travel rewards credit card to your wallet. You can earn valuable credit card rewards and save money on future travel costs.

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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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More than 22 million American consumers have a personal loan. Keep reading to learn how much they owe on average. 

By the end of June 2023, more than 22 million consumers had an unsecured personal loan. The average debt per borrower stands at just over $8,000. According to CNBC, personal loans have been the fastest-growing debt category over the past 10 years. Here, we dig into why folks borrow money and whether a personal loan is a good idea.

What is a personal loan?

There are two types of personal loans: Secured and unsecured. Unsecured is, by far, the most common. With an unsecured loan, a borrower does not have to put anything of value up as collateral. On the other hand, a secured loan requires collateral, such as artwork, a classic car, undeveloped property, or any other asset that a bank can take possession of and sell if the borrower fails to make payments.

Personal loans are typically funded within days, with the entire amount either deposited in your bank account or handed to you in the form of a check.

The average personal loan debt

As mentioned, the average personal loan debt per borrower is just over $8,000. Personal loans carry a wide range of interest rates, from just shy of 5% to nearly 36%. Lenders reserve the best interest rates for highly qualified borrowers. Subprime borrowers (typically applicants with poor credit histories) pay more to borrow money.

Here’s an example of how much more a borrower with a low credit score may pay for a loan:

Why do people take out personal loans?

Consolidating debt is the most common reason people give for taking out a personal loan. Here’s how the process works:

The borrower adds up how much outstanding high-interest debt they have.The borrower applies for a loan with a lower interest rate.Once the loan is funded, either the lender or the consumer pays off each existing high-interest debt.The consumer is left with one loan payment to remember each month, reducing their odds of making a late payment.As long as the borrower does not run up any new credit, the personal loan allows them to pay off their previous debt at a faster clip and to pay less in interest.

Aside from consolidation loans, people choose to borrow money for many other reasons. Here are some examples:

Home improvementsMajor purchaseRelocationMedical expensesCar repairVacationWedding

Is a personal loan a good idea?

Before taking out a personal loan, it’s a good idea for consumers to ask themselves if a loan payment fits into their monthly budget and whether it leaves them in better financial shape than they were before.

Sam

Let’s say friends ask Sam to join them on an island-hopping vacation. Sam doesn’t have the money, but his credit is strong enough to qualify for a personal loan with an APR of 15%. Sam borrows $5,000 with a term of 36 months. His monthly loan payment is $173, and he pays $1,240 in interest.

Before taking on the loan, Sam must decide whether he can afford an extra $173 monthly obligation. Sam shouldn’t take the lender’s word for it but must realistically determine whether the new payment is affordable. He must also consider whether he can continue making payments if he loses his job or runs into another significant bump in the road.

For Sam, the answer could go either way.

Chris

Chris is also considering a personal loan. However, he wants to use the funds to pay off high-interest credit card debt. He currently owes $15,000, with an average APR of 17%. As long as Chris continues to make a monthly payment of $363, it will take him another five years and three months (63 months) to pay the cards off in full. By the time Chris has the cards paid off, he has paid $7,720 in interest.

Here’s what happens if Chris takes out a personal loan to pay off existing high-interest debt. Let’s assume Chris has a strong credit score and snags an APR of 8%. He makes a monthly payment of $350, and due to the lower interest rate, Chris pays the loan off in 51 months rather than 63. In addition, Chris pays a total of $2,724 in interest.

Taking on a personal loan to eliminate high-interest debt saves Chris $4,996 in interest. Chris can now decide if he wants to use the savings to fund an emergency savings account or plump up his retirement savings.

A personal loan can be an excellent option if it will save you money in the long run. If a personal loan results from an emotional decision (like deciding to give your daughter the Barbie-themed wedding she’s always dreamed of), it may cost you more than you anticipate.

Before applying for a loan, imposing a 24-hour cool-down period is best. Use that time to check your monthly budget, determine how much you’ll pay to borrow the money, and decide if you want to be saddled with monthly payments long after an event is over and done with.

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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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When shopping for insurance, these pointers can help make the process faster, easier, and more effective. Give them a read before getting quotes for coverage. 

Shopping around for insurance is a smart move. Paying for home insurance, auto insurance, or renters insurance is necessary to protect assets. But it’s not fun to have this money coming out of a checking account every month. And overpaying could leave even less money for other important financial goals.

The good news is, many people can get great prices on premiums if they know how to shop for coverage wisely. These three tips can help make the process easy and can maximize the chances of finding the most affordable coverage options.

1. Know what coverage you want

Before shopping around for insurance, it’s important to know what kind of coverage is necessary. For example, when buying auto insurance, consumers typically need:

Liability coverage to pay for losses caused to others.Collision and comprehensive coverage to pay for losses caused to the policyholder in a crash or by other covered losses such as vandalism or theft.Uninsured or underinsured motorist coverage to pay for damages in the event of an accident with a driver lacking sufficient coverage.

Some other kinds of coverage may be needed or desired as well, such as personal injury protection to pay for minor medical bills and lost wages in states where it’s required, and gap insurance that pays the difference between what a car is worth and what is owed on it if the car is declared a total loss.

Research the types of home insurance and types of auto insurance now before shopping around. It’s also important to know the desired policy limits (the maximum the policy pays out) and the desired deductible (the out-of-pocket costs a policyholder incurs when making a covered claim).

By deciding exactly what coverage is necessary before shopping, consumers can get more accurate quotes and compare them more easily. Consumers can specify exactly the types of protection they want and find out how much a policy with all those coverages would cost from different insurers.

2. Have your information ready

Insurers ask for information when shopping for coverage. For example, when buying auto insurance, companies will want to know:

The address where the vehicle will be keptThe vehicle’s make, model, and yearSafety features the vehicle hasEveryone who will be driving the vehicleThe driving record of all potential drivers

Usually, it’s helpful to have the car’s VIN number as this can help an insurer look up information about the vehicle. Insurers may also want to know about affiliations, such as employers or clubs a policyholder is a member of, as sometimes discounts are available for working in a certain industry or being part of a specific organization.

Collecting this information before shopping around will make it faster and easier to get accurate quotes based on exactly who and what the policy will cover.

3. Take advantage of online quotes

Finally, it can be much easier to get insurance quotes online than to try to call agents or speak with individual insurance companies directly. Most insurers provide quick online rate quotes, and it’s easy to compare them side by side after inputting the desired information.

By taking these three steps, consumers can find out how much their desired policy will cost. Often, it makes sense to choose the insurer offering the lowest price, but be sure to check J.D. Power Customer Satisfaction ratings. Don’t forget to look at online reviews of the insurer and the National Association of Insurance Commissioner’s complaint database. This can help you ensure you are choosing an affordable insurer and finding one that has a good reputation for actually taking care of customers.

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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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