Money Management

It’s possible to get free shipping on Amazon by meeting an order minimum. But read on to learn how that minimum may be going up. 

What happened

Amazon is raising the free shipping threshold for some non-Prime members from $25 to $35. The change will initially roll out to certain ZIP codes, but Amazon may decide to impose a $35 shipping minimum on all non-Prime members in time.

So what

For some consumers, the $139 annual fee for Amazon Prime isn’t worth paying, especially since it’s possible to score free shipping by meeting a spending threshold. But now that that threshold is increasing, consumers might have a more difficult time meeting it.

“We continually evaluate our offerings and make adjustments based on those assessments,” Amazon spokesperson Kristina Pressentin told CNN. “We’re currently testing a $35 minimum for non-Prime customers to qualify for free shipping. Prime members continue to enjoy free delivery on over 300 million items, with tens of millions of items available for free Same or One-Day Delivery.”

Now what

Many consumers sign up for Amazon Prime to receive unlimited free shipping on orders of any size. And now that Amazon is raising the threshold for free shipping, more consumers may opt to go this route.

Amazon charges $3.99 shipping at a minimum for orders that incur a shipping cost, and more for heavier items. Assuming an average cost of $7 per item, which is reasonable based on Amazon’s fee schedule, it would take 20 orders a year to come out ahead financially by paying $139 a year for Prime. So if you place two Amazon orders per month, a Prime membership could be worth it.

To be clear, Amazon wants more customers to sign up for Prime. But a lot of people are still struggling with credit card debt on the heels of rampant inflation and can’t afford the $139 annual fee.

Then again, this change on Amazon’s part might have another ill effect on consumers — it might effectively force people to spend more on a per-order basis to avoid having to pay for shipping. That, too, is not a good thing at a time when money is tight and many people are dealing with depleted savings accounts.

That said, there are some strategies consumers can employ to work around Amazon’s new higher spending requirement. For one thing, non-Prime members can bundle non-urgent orders so they’re more likely to end up spending $35. For example, if you need to make a $25 purchase, you can add it to your cart, wait a week or so, and see if the need for another item worth $10 or more comes up before checking out.

Non-Prime members can also try grouping orders with family and neighbors to avoid shipping charges. And there’s also the option to sign up for a free 30-trial of Amazon Prime, during which time two-day shipping becomes available at no cost. That isn’t a permanent solution, but it’s a good way to see if getting a Prime membership makes sense, especially in light of this change.

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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. Maurie Backman has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

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It’s typically important to make a home purchase contingent on an inspection. Keep reading to learn why one writer skipped this. 

Usually, when you buy a house, you should include a few key contingencies in the contract. Those are conditions you or the home have to meet to be required to go through with the purchase.

If you’re going to get a mortgage, you should include a financing contingency. This means your purchase is conditioned on being approved for a loan to pay for the house. And whether you’re getting a home loan or not, you should generally put an inspection contingency in the contract. This gives you the right to walk away from the sale (or renegotiate the contract terms) if a professional inspector finds something wrong with it.

When I made an offer to buy my home recently, I included a financing contingency since I will be getting a mortgage loan. But I did not make the home purchase based on an inspection. Here’s why.

The home is a fixer-upper and I already knew most of the issues

The biggest reason why I didn’t require an inspection is because the home needs some major remodeling work as well as some repairs. I knew this going in — it’s pretty obvious when you see leaks on the ceiling and peeling paint on the siding.

Because I plan on doing a lot of work, I brought a contractor through the house with me before I made an offer. I wanted to know the scope of the repairs and the contractor did more than most inspectors would to identify issues (like climbing in the attic and peeling up insulation to inspect the trusses for structural damage).

I am already aware of the house’s most expensive issues, like the need for a new roof (which can cost an average of $10,000, plus my contractor said it will cost me much more than that due to the home size and roof design). And I knew the seller wasn’t going to be willing to negotiate the price down or make any repairs based on what an inspector discovered since the house wasn’t even on the market — I approached them and convinced them to sell it to me.

Since an inspection report wasn’t likely to reveal any issues that I didn’t know about, and it wasn’t going to help me get a better deal or convince the seller to do anything, there was no point in paying for a home inspection.

Further, not including an inspection contingency strengthened my offer since the seller had already been approached by someone else to buy the property who backed out after the inspection. They didn’t want to go through that again.

Should you insist on an inspection when you’re buying a house?

Not including an inspection report can definitely make your offer more attractive since sellers often worry an inspection will be used as a pretext to re-open negotiations, or will leave them arguing with a buyer over nitpicky problems.

But, it can be very risky if you aren’t planning on basically doing a gut remodel of the house. And even if you are planning on doing major repairs, you could still be left with surprises if you don’t have a professional come through. You don’t want to move into a property and be surprised by a roof leak that costs you tens of thousands of dollars when you aren’t expecting it.

Ultimately, if you are buying a home in need of work, you need someone to come through it with you to help you understand the scope of the job. If you want a contractor to quote you on the work, that’s not a bad thing, since the contractor often won’t charge and you’ll get an idea of how much the work will cost you. You probably won’t be able to make your offer contingent on a contractor sign-off though, so you may have to do this part before making your offer.

Whatever you decide, just be sure you don’t buy a house without knowing what you’re getting into.

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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. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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Sam’s Club membership can be a great option for bargain shoppers looking for warehouse deals. Here are four things you need to know as a new member. 

If you just joined Sam’s Club, you’re probably excited to break out your credit card and hit the warehouse club. Before you go, though, there are a few things that new Sam’s Club members need to know to shop smarter. Here’s what they are.

1. You can’t share your membership card

Being a Sam’s Club member means you get exclusive access to a bunch of great deals both in-store and online. But you can’t really share the wealth with others.

Your membership card is not transferable, and you aren’t allowed to let others in your life just go shopping with it. You get just one primary card and one secondary card. That secondary card can only be given to a household member who is age 18 or over.

You can bring your friends shopping with you if they want to try Sam’s Club for themselves, but loaning anyone else your card is a no go.

2. Curbside pickup and free delivery may come at a cost unless you have a Plus membership

Curbside pickup can be a more convenient way to shop at Sam’s Club, but it can come at an added cost.

If you have a basic Club membership (which costs $50 annually), you must pay a $4 fee to pick your items up using this shopping method. If you are a Plus member, though, then curbside pickup is free. The Plus membership is an upgrade and costs $110 for an annual membership.

Club members will also need to pay for shipping when they order from Sam’s Club online unless the item is marked with a special “Free Shipping” label, while Plus members get most items shipped to their home for free.

Since Plus membership also offers other perks like 2% cash back on qualifying purchases, it may be worth biting the bullet and paying a little extra out of your bank account for the upgraded membership.

3. You can skip the checkout line with Scan & Go

Scan & Go is an awesome time-saving feature at Sam’s Club that I use all the time when I’m not doing curbside pickup. You just need to open the Sam’s Club app, scan your products or use “add an item” to track the things you are purchasing, and then pay right within the app. You will get a digital receipt that you can show to the employees at the door who check your cart on the way out.

Since the lines can sometimes get pretty long at Sam’s Club, especially on the weekends, it’s worth taking advantage of this feature. Why stand in a checkout line when you don’t have to?

4. Member’s Mark products can be a great bargain

Finally, as a new Sam’s Club member, you should be sure to check out Member’s Mark products, as they often provide the best value in the warehouse club.

Member’s Mark is the Sam’s Club house brand, and while Sam’s Club doesn’t disclose the companies that produce the products, there are rumors that the items under this private label are produced by big names in the industry. Almost 20% of items sold in Sam’s Club stores are Member’s Mark, so try them out to make the most of your membership.

Now you know some of the basics of Sam’s Club shopping. You’re ready to visit the warehouse club and start discovering all of its good deals for yourself.

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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. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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Should you combine your bank account with your spouse? Here’s what the research says about joint accounts and happiness. 

When you get married, you have a choice to make. Do you want to keep your financial lives separate, maintaining your own credit cards and banking relationships? Or do you want to jump into having a joint bank account?

Both approaches have pros and cons, but recent research suggests that you may be better off with a joint account if you want to maximize your chances for happiness. Here’s why.

Could sharing your bank account improve your relationship?

Couples with a shared bank account stand a better chance of maintaining relationship satisfaction than those who keep things separate, according to a recent study published in the Journal of Consumer Research.

The study, entitled “Common Cents: Bank Account Structure and Couples’ Relationship Dynamics,” involved a six-wave longitudinal experiment. The participants were newlyweds who were randomly assigned to either keep their money in a joint account or keep it separate.

Their marital happiness was evaluated over a two-year period, and the researchers discovered that couples without shared accounts exhibited a normative decline in the quality of their relationship within the first two years of marriage. By contrast, strong relationship quality was maintained throughout the two-year study for those who merged their money and maintained a joint bank account.

The researchers indicated other studies have shown a positive association between relationship quality and combining finances, but this was the first to specifically show newlyweds could preserve the quality of their relationship by merging their financial lives.

Why would combining accounts improve your relationship?

The study not only showed a correlation between shared bank accounts and stronger relationship satisfaction. It also introduced three potential reasons why couples who keep their money together may be better off for it:

Joint accounts can improve how the individual spouses feel about money management. Couples can become more aligned in their financial goals if they have a shared account.Joint accounts make the partners more likely to adhere to communal norms. This means they are more likely to be responsive to each other’s needs without being motivated by an expectation of reciprocity (i.e. they aren’t just being nice to each other to get something out of it in return).

All of this makes a lot of sense. After all, if you have a partner to hold you accountable because you’re sharing a joint account, you’re a lot less likely to make frivolous purchases you end up regretting. You can also work better together on a shared goal if you have an account you both put money into. And, finally, if you combine your finances and become a cohesive unit in every sense, you’re more likely to be more responsive to your partner.

Now, this doesn’t mean everyone should combine their bank accounts. If you and your partner have completely different money management philosophies, or if your life is complicated — perhaps because of having children from outside the relationship or running a business or having a big income disparity — combining accounts may not work for you.

But, ultimately, it’s worth taking the time to think about whether you would be more likely to work as partners in your financial life if you have a bank account with both of your names on it.

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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. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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For those ready to wave goodbye to summer, you can now order fall drinks at Starbucks. Find out how much you’ll spend on the new Iced Pumpkin Cream Chai. 

Autumn may feel far away, but pumpkin spice season has already begun — whether you’re ready or not! Starbucks is celebrating 20 years of the Pumpkin Spice Latte, and the famous seasonal treat is back on the menu again. But you can also find a brand-new seasonal feature that will give you all the cozy fall feels you crave — the Iced Pumpkin Cream Chai Tea Latte.

Introducing the Iced Pumpkin Cream Chai Tea Latte

Move over Pumpkin Spice Latte, there’s a new pumpkin-inspired drink on the menu! Starbucks recently announced the addition of its Iced Pumpkin Cream Chai Tea Latte. If you’re ready to welcome all things fall but prefer iced beverages, this drink may appeal to you. It has chai, pumpkin cream cold foam, and pumpkin spice topping and is available in tall, grande, or venti sizes. It’s a great seasonal alternative for those who prefer tea over coffee.

Here’s how much you’ll pay to sip on this seasonal drink

But how much will this new seasonal treat cost you? The pricing of the new drink is similar to that of the iconic Pumpkin Spice Latte, but exact prices vary throughout the country. To help you prepare your budget accordingly, we researched prices using the Starbucks mobile app.

Below is a breakdown of the cost of an Iced Pumpkin Cream Chai Tea Latte in several cities in the United States. The prices listed are for a grande-sized beverage.

You can generally expect to pay at least $6 for this treat, but you may pay slightly less or a bit more depending on where you live. It’s not a cheap drink, but if you budget accordingly, you can order this beverage without draining your bank account.

If you think a grande- or venti-size drink might be too sweet for you, consider ordering a tall beverage instead. Doing this will also bring the price of your drink down — which is a win for your personal finances. I ordered this beverage this morning, and it’s very sweet. I recommend customizing before ordering so it has a bit less chai.

Don’t forget about loyalty programs

If you want to make future Starbucks runs more affordable, join the Starbucks Rewards program. Free loyalty programs like this are valuable for regular customers. Once you enroll in the program, you can earn rewards every time you spend money at Starbucks.

Members who pay for their order using cash, a debit card, or credit card earn 1 star per $1 spent. But those who pay with a gift card earn two stars per $1. You can buy and reload virtual gift cards in the mobile app. Once you collect enough stars, you can exchange your stars for drink upgrades, free food and drinks, and merchandise.

If you hope to cash in on a free Iced Pumpkin Cream Chai Tea Latte this season, you’ll need to collect 200 stars first. That means if you’re paying for your Starbucks runs with a gift card, you’ll need to spend $100 to earn 200 stars. But since you can earn bonus stars by activating and completing bonus star offers in the mobile app, you may be able to spend less than that to reach the goal. Be sure to look for bonus star opportunities to earn stars faster.

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So, which drink will you be ordering first this autumn? The classic Pumpkin Spice Latte? Or will you try the new sip-worthy Iced Pumpkin Cream Chai Tea Latte? The good news is the autumn drink season is just beginning, so you have plenty of time to try all the fall-inspired menu items, whether at Starbucks or your favorite local coffee shop.

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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.Citigroup is an advertising partner of The Ascent, a Motley Fool company. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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