Money Management

If you’re looking for a present for a newly married couple, let Costco help you. Check out these four gift ideas that any couple would love. 

Costco is a great place to shop for a variety of items if you want to keep more money in your bank account. You can score bulk discounts on groceries, enjoy low-priced Kirkland brand products, and even dine on a $1.50 hot dog and soda.

While you can certainly give your credit cards a workout by buying things for yourself at Costco, the warehouse club is also an ideal place to purchase gifts due to the store’s affordable prices and excellent selection. If you’re looking for a present for people in your life who have just tied the knot, check out these ideal Costco gifts for newlyweds.

1. A Costco membership

One of the best gifts you can give your newly-married loved ones is the gift of Costco. The warehouse club is so beloved by people setting up house and among old married couples, Costco cards should practically be handed out with marriage licenses.

If your married friends don’t have a membership of their own, gifting one to them could make it much easier for them to buy all the things they’ll need as they merge their lives. This is especially true now that Costco is cracking down on sharing cards.

Since an entry-level Gold Star membership will set you back only $60 and comes with a free household card so both spouses can have one, this present is ideal if you don’t want to splurge too much but you want a gift that keeps on giving.

Fortunately, it’s easy to buy a Costco membership for someone else. You can purchase a Gift of Membership online or at a register at your local store. You’ll receive a Gift of Membership gift card that your newlywed friends can activate by bringing it to the membership counter at any Costco. And, if your recipient already has a Costco membership, this gift can still be used to either renew their current membership or upgrade to Executive status if they’re currently Gold Star members.

2. A Cuisinart 12-Piece Essential Tool and Gadget Set

Most people have some kitchen utensils by the time they reach marriageable age, but few have a nice matched set. Once your friends or family members are officially coupled up, it’s time for them to kiss those mismatched kitchen gadgets goodbye.

You can help them do that with the Cuisinart 12-Piece Essential Tool and Gadget Set. This will run you $49.99 at Costco online compared with $64.20 at Walmart. When the newlyweds are enjoying their nesting phase and cooking at home, they’ll appreciate your thoughtfulness.

3. A Kirkland Signature Plush Blanket

There’s nothing more fun for a newly married couple than snuggling up under a warm blanket together and watching some movies. You can provide that cozy warm comfort for the bargain price of just $12.97 for a Kirkland Signature Plush Blanket.

The stylish blanket comes in four colors and is available in king and queen sizes. Whether the couple uses it on their bed or as a large blanket for their living room sofa, they’ll appreciate its softness and stylish look. And, while this present is easy on your wallet, it looks and feels more expensive than its price would suggest.

4. Vacaville Fruit Company 56 oz Dried Fruit & Nut Wooden Gift Tray

For the newlyweds who have everything, the Vacaville Fruit Company set is a perfect present. It provides the newly married couple with some sweet treats they can enjoy together as well as a wooden gift tray they can use as a serving piece at future dinner parties.

Each of these gifts would make a great present for those in your life who are celebrating their nuptials. Check them out today to see which one seems like a good fit.

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

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Looking to find the right home for your money this month? Read on to explore some options. 

Many people end up spending their entire paychecks month after month, whether on just the necessities or on more superfluous purchases. So if you’re someone who has spare cash available, it means you’re in a pretty good financial spot.

But it’s important to find the right home for your money. Here are three options worth considering this month.

1. A certificate of deposit

Certificates of deposit (CDs) are less flexible than savings accounts because they require you to lock up your money for a preset period of time. But CDs also guarantee you the interest rate you lock in, whereas your savings account’s interest rate has the potential to fluctuate.

CD rates are pretty generous these days on the heels of a string of interest rate hikes by the Federal Reserve. You might score somewhere in the vicinity of a 5% interest rate on a 12-month CD, which isn’t a particularly long commitment. And remember, funds that are put into a CD are protected from losses, provided that your bank is FDIC-insured and your deposit doesn’t exceed $250,000.

2. A savings account

You may not want to commit to a CD right now. In that case, a savings account is another solid option. As is the case with a CD, your principal deposit will be protected for up to $250,000 at an FDIC-insured bank, and your interest rate might be close to or comparable to what a six- or 12- month CD will pay you.

As mentioned above, savings account rates aren’t guaranteed to last. Your bank may be paying 4.3% right now, but in a few months, you may be looking at 3.8%. But the great thing about a savings account is that you can reevaluate your options as needed, because you’re not making a long-term commitment.

3. An IRA

Some people are shocked to learn that interest earned in a CD or savings account is taxable — and at a high rate. In fact, you’ll pay the same rate on that interest as you will for ordinary earned income. And given today’s generous rates, that has the potential to drive up your 2023 tax bill quite a lot.

That’s why funding an IRA is a good bet right now. Traditional IRA contributions go in tax-free, so by putting money into one of these accounts, you can exempt a portion of your income from taxes, all the while building yourself a retirement nest egg. If you’re going to be putting some of your money into a savings account or CD, then funding an IRA is a good way to minimize or help offset the tax blow.

Plus, IRAs allow you to invest your money in various assets for added growth. And you might, over time, snag a much higher return in your IRA than what any savings account or CD will give you at present, especially if you go heavy on stocks.

It’s great to be in a position where you have extra money to put to work. Consider a CD, savings account, or IRA this month — or a combination of all three.

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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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Bulk buying is smart for families, but what about for just one or two people? Keep reading to learn which products you can buy in bulk to save money. 

Buying in bulk is a smart way to save money, but don’t fall into the trap of assuming you need a membership for a warehouse club to do your bulk shopping. Personally, I’ve opted against a Costco membership, but I still buy in bulk sometimes. I just get my bulk deals on Amazon, Chewy, and sometimes at my local grocery store. And what’s more, I have a small household that consists of one human and three cats.

So while I don’t generally buy perishable food in bulk, I do buy the following items in large quantities to ease the strain on my personal finances. And if you have a small household, I recommend making the same move.

1. Paper goods

Even with a small household, you likely go through your fair share of items like toilet paper, paper towels, tissues, and paper napkins. The great thing about buying them in bulk is that they don’t go bad.

But one potential problem is that you’ll need space to store your mighty haul of toilet paper, and if you live alone or with just one other person, you might be in a smaller home without much extra space. So if you don’t want to constantly trip over paper towel packages in your living room, be sure you have the space to store them. I keep my stash of paper towels on top of my fridge and a pile of bulk toilet paper rolls on top of a cabinet in my bathroom.

2. Batteries

Despite the continued progress of technology, I’m willing to bet that you still have devices in your home that run on alkaline batteries, or even those tiny button batteries. Wall clocks and TV remotes, I’m looking at you.

Batteries are a great item to buy in bulk, and they’ll last for years in a cool, dark place — the SpareFoot blog notes that unused alkaline batteries will keep for five to 10 years. Just park your big pack of AAs or AAAs in a drawer or your toolbox. Isn’t it great when your bulk buys don’t take up a ton of precious space?

3. Personal care items

Speaking of purchases with a long shelf life, look to bulk toiletries and personal care items to save money. This can include menstrual care products, soap, shampoo, razors, toothpaste, and beyond.

And you’re doing your future self a favor by having some reinforcements for these items on hand — ever run out of toothpaste right after a big grocery run because you forgot to add it to your list? I regularly buy toothpaste in two packs at my grocery store, and not only do I always have a backup tube in the cabinet (and often more than one), but I’m keeping more money in my checking account in the process. At my grocery store, buying one at a time costs $1 per ounce, but buying two comes to just $0.70 per ounce.

4. Cleaning supplies

If you have even a little extra space under your kitchen or bathroom sink, you should definitely buy your cleaning supplies in bulk. I only just recently finished the multi-pack of toilet cleaner I bought in 2020 — then turned around and bought another!

Just be careful with some of these items. For example, Real Simple reports that bleach can become less effective at killing germs over time, which could generate a false sense of security if you’re cleaning up a potentially infectious mess (raw meat on your kitchen counter, perhaps?). Aim to buy products like dish soap and multi-surface cleaners in bulk, and keep a more limited supply of heavier-duty cleaners on hand.

5. Pet products

I might be the only human in my home, but I am outnumbered by three cats. As such, I always buy their food in larger quantities because I can get a lower per-pound price that way and I’m assured of going through it quickly.

For example, the brand of dry food my cats eat costs $3.50 per pound if I buy it in a three-pound bag from Chewy. But that price goes down to $2.64 per pound for the 11-pound bag.

If you have just one pet that doesn’t eat much, it might not make sense to buy their food in bulk, as pet food can go bad just like human food can. If that’s the case, are there other supplies you can stock up on for a lower unit price? Cat litter doesn’t go bad, which is why I buy it in 40-pound bags.

While it may be less advisable to buy produce, dairy products, and other perishables in bulk, even solos and couples can benefit from these bulk buys. To maximize your savings, I also recommend using the right cash back credit card to make your purchases.

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

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Banks are paying pretty generously right now. But read on to see why you should always have money in the bank, even when interest rates are truly awful. 

I have a chunk of my money in a savings account with an APY that’s above 4% right now. And seeing as how there was a time not so long ago when my savings account was barely paying 1%, that’s a vast improvement.

But a big reason banks are paying so generously right now is that the Federal Reserve has raised interest rates 11 times since early 2022. And while that’s caused the cost of borrowing to soar to the point where personal loans have become prohibitively expensive for many people, it’s been a good thing for savers.

However, I realize that there will likely come a time when banks stop paying such high amounts of interest. And even if my savings’ interest rate dips below the 1% mark, I’ll continue to keep money in the bank. And you should plan to do the same.

It’s all about protection

When you’re working toward a long-term goal, like retirement, then it’s best to invest your money rather than keep it tucked away in the bank. Over the past 50 years, the stock market has rewarded investors with an average 10% return (before inflation), as measured by the S&P 500’s performance. Compare that to the 4% to 5% most high-yield savings accounts are paying today, and it’s easy to see why investing in stocks is a better bet for far-off financial objectives.

But when it comes to near-term goals, the best place to keep your money is the bank. If you’re trying to buy a home in two years, and you put that money into stocks, the market might crash and take a chunk of your down payment with it. And the market may not recover in time for you to buy a home on your timeline.

On the other hand, if you keep your down payment in a savings account, you’re guaranteed not to lose out on any principal. This assumes that you’re at an FDIC-insured bank and you’re limiting yourself to a $250,000 deposit.

Also, you need money on hand to cover emergency expenses — things like car repairs that could pop up out of the blue. And you can’t risk losing a chunk of your emergency fund to a stock market crash. So that, too, is another reason to keep money in the bank even if interest rates fall. You need easy, instant access to your emergency fund at all times.

When will interest rates drop?

It’s hard to say. A lot of that will depend on how inflation plays out in the coming months, but there’s a good chance that today’s interest rates will largely hold steady through the end of the year. They could drop a little, but it’s unlikely that we’ll see a drastic drop in the near term.

Things could change in 2024, however, especially if the Fed decides to cut rates after so many hikes. If you want to lock in the interest rate you’re enjoying on your savings right now, the only way to really do that is to put money into a CD. But again, that’s not something you should do with your emergency fund.

Now if you’re sure you’re a good two years away from buying a home and you decide to open a 12-month CD, that’s not such a bad idea. But even then, you could risk an early cash-out penalty should you wind up wanting or needing your money sooner than expected.

All told, a savings account is not the most efficient option for growing long-term wealth. But it’s important to keep money in one — even during periods when interest rates are downright abysmal.

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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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A writer’s refinancing days may be over. Read on to see why. 

About 14 million mortgages were refinanced between the second quarter of 2020 and the fourth quarter of 2021, according to the New York Federal Reserve. And mine was one of them.

In the summer of 2020, after shopping around with different mortgage lenders, I managed to land on such a low rate for my home loan that I opted to refinance from a 30-year loan to a 15-year loan. This actually raised my monthly payments by a small amount, but it’s saving me a boatload of money on interest.

But while refinancing easily made sense for me in 2020, I don’t know that I’ll ever be in a position where I need to refinance a mortgage again. Here’s why.

1. My current rate is ridiculously low

The rate I’m paying on my mortgage is in the mid-2% range. For context, I’m earning more than 4% on the money I have in my savings account right now.

Even if mortgage rates come down in the next few years, I don’t see them dropping to the point where I’ll get a better deal than what I have today. Sometimes, it can make sense to refinance a mortgage even when you’re not getting a much better rate deal, such as if you want to take cash out of your home. But I also have savings for things like home repairs and improvements, so I don’t see myself tapping my home equity via a cash-out refinance.

2. I may not have to take out a mortgage again

At this point, I’m about 12 years from having a paid-off home. And once my home is paid off in full, my goal is to downsize or buy a less expensive home outside of the neighborhood I live in today. Because of this, I hope to be in a position to purchase a home outright with the proceeds from selling my current home. And if I don’t need to sign a new mortgage, then there won’t be a need to refinance one.

When will refinancing make sense again for most borrowers?

In my case, it’s easy to see why I might never refinance a mortgage again. But for many homeowners, a refinance will make sense once rates come down. Of course, that leads to the big question: When will that happen? And the reality is that we really don’t know.

Some experts say that today’s rates are the ones borrowers should expect for the next few years. But in time, rates should start to fluctuate, and homeowners should be able to explore different options for refinancing.

To be clear, we may never again see the record-low rates that became available in 2020 and 2021. But that doesn’t mean rates won’t get more competitive. And someone who signs a mortgage at 6.9% today stands to benefit tremendously if rates fall to the mid-5% range and they’re able to refinance at 5.6%.

All told, I’m really glad I refinanced my mortgage when I did. And I’ll also be happy to not have to go through the refinancing process again.

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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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