Money Management

If you and your partner haven’t yet had serious financial conversations or you don’t have joint goals, a shared bank account may not be for you. Here’s why. 

Money can be a major point of conflict in a marriage. In fact, close to half of all people who are married indicate they hide purchases from their partner, even as 52% of people in long-term relationships or marriages view secret spending as a type of infidelity.

You don’t want to sabotage your romantic dreams by combining finances with your partner or spouse before you’re ready to do so, so it’s important to think carefully before making the leap. Specifically, you may want to watch out for these key signs that suggest you are not ready for a joint bank account.

1. You can’t talk openly about money

If you are going to share a bank account, you have to be able to communicate easily about money. Otherwise, you risk overdrafting your account or you could find yourself having trouble determining how much each person should put into and take out of it.

Make sure you are comfortable having all different kinds of money conversations, including about how much you earn, how much debt you have, and what your saving and spending priorities are. You will need to be able to talk about all of these things to effectively manage a shared bank account.

2. You don’t have any shared financial goals

In most cases, it makes sense to have a shared bank account if you are working toward something together. This could be as simple as covering the rent on a shared apartment or as complicated as planning for a home purchase or buying stuff for kids you have together.

If you don’t have some good reason to combine forces, why take on the added stress and complexity of sharing your accounts?

3. You aren’t ready to give up your purchasing autonomy

When you share a bank account with someone else, you can’t really just buy whatever you want whenever you want it. You have to take your partner’s needs into account and make sure you are both meeting your financial responsibilities while also still having some money left over for fun purchases.

You and your partner can decide together when you need to consult each other before making purchases, with couples often setting a limit such as discussing all purchases over $50 or over $100. But, even if you don’t have to come to a consensus about every spending decision, you still need to make sure you aren’t draining your joint account dry.

If you aren’t ready to give up any purchasing autonomy, separate accounts are a better option.

4. You have different money management styles you haven’t talked through

Finally, you’ll want to make sure you understand how you each manage money and are OK with any differences in your money styles. For example, some people like to use credit cards to make purchases and then pay them off from their bank account each month. Others won’t use cards at all because they’re afraid of going into debt. And some people are OK with carrying a balance occasionally, while others won’t ever borrow.

You’ll want to address these issues before you combine your accounts and start making joint money decisions. By getting on the same page about how you’ll manage your shared account and confirming that you can make spending decisions together, you can be sure you’re really ready to take this leap. If that’s not the case, there’s nothing wrong with maintaining separate bank accounts.

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The cost of a higher education will continue to increase this year at many institutions. Read on to find out what the impact will be. 

As college boards across the country wrap up their fiscal year, many universities are releasing data on how much tuition will cost in the fall. In a decade where the cost of higher education has outpaced nearly every other expense, the 2023–2024 academic year promises to be no different. For many families, red-hot education expenses could be a major blow to their personal finances.

Fall 2023 forecast

If your favorite university is raising prices, it’s not alone. In fact, private and public schools across the country are asking students and their families to pay more this fall.

Private universities can’t rely on government funding to bolster their bottom lines. It will come as no surprise that a degree from these schools will cost a bundle — and that’s not changing anytime soon. Harvard has increased its tuition by a little over 3% for the fall semester. Meanwhile, Stanford is asking students to pay 7% more in tuition for the 2023–2024 academic year.

Public universities typically offer a more affordable option for college, but tuitions at these institutions are similarly on the rise. Freshmen at the University of Michigan can expect to pay 3% more in tuition than last year’s Wolverines. Likewise, the University of California at Berkeley is raising tuition by about 4.4% this year. For a degree that can cost over $100,000, even a slight rise in tuition costs can add up to thousands over a four-year program.

Inflation to blame?

Between 1999 and 2020, the cost of higher education increased by an average of 6.8% per year. Such a prolonged period of increasing expenses has more than doubled the price tag of a college degree since 1999.

Many universities preempt tuition increases with a nod to rampant inflation in the not-so-distant past. It’s worth noting that colleges operate like businesses. When the cost of labor — in this case for administrators, professors, and staff — increases, so does the cost of running the “business” of academia. However, inflation, which typically hovers around 2%, falls short of accounting for a nearly 7% annual increase in tuition over the last twenty years.

One possible factor could be so-called “student services,” spending that grew by almost 30% between 2010 and 2018. It’s unclear where a bulk of this spending goes at many universities, but the student services category broadly includes everything from career counseling to coed activities. With many campuses boasting multi-million dollar amenities such as recreation centers and football fields, some families are concerned that the money they’re paying to send their student to school isn’t going to a higher quality of education.

Building a plan

When it comes to the rising cost of higher education, the savings accounts of many Americans just can’t keep up. It’s more important than ever for students and their families to have a plan to make college more affordable. Here are a few options to consider.

Many universities offer financial aid support to students, helping those with severe financial need understand available aid programs and connecting students with scholarship and grant opportunities.Regional tuition exchange programs can qualify out-of-state students for discounted tuition at colleges nearby. The National Association of Student Financial Aid Administrators maintains a list of these tuition discount programs.Earning an associate’s degree from a community college can allow students to complete their first two years of college at a fraction of the cost.

Higher education is often a great investment, but the price tag is making some reconsider. Over the past few decades, the cost of a college degree has jumped rapidly at universities across the country — and shows no signs of slowing. Funding a college education today is harder than ever, but with a well thought out plan, American students can better prepare for their future.

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Investing consistently can help you grow a lot of wealth, even if you’re only investing a small amount each month. Read on to learn more. 

You’ll often hear that it’s important to save and invest money on a consistent basis. But when you’re limited on funds, that’s not always an easy thing to do.

These days, many people are having a hard time covering their basic living expenses due to inflation. So the idea of carving out thousands of dollars a year to pump into your brokerage account may, frankly, be out of the question.

But here’s the good news. You don’t actually have to invest a ton of money on a monthly basis to build up a lot of wealth over time. In fact, you can do really well for yourself even if you’re only investing $100 a month.

It’s a matter of how you’re investing

A $100 monthly investment over 40 years could leave you more than $500,000 richer — if you choose the right investments, that is. Over the past 50 years, the stock market has delivered an average annual 10% return (before inflation), as measured by the performance of the S&P 500 index. So if you load up your portfolio with S&P 500 stocks or ETFs, then there’s a good chance your portfolio will deliver a similar return.

In that case, investing $100 a month over 40 years will leave you with an ending balance of around $531,000. Meanwhile, you’ll only be contributing a total of $48,000 to get to that point. So all told, you’re looking at a $483,000 gain, which is pretty impressive.

But to be clear, this sort of gain generally won’t be possible if you play it too safe in your portfolio and stick to more conservative assets, like bonds. In fact, let’s say a bond-heavy portfolio gives you a 5% average annual return over time, which is pretty generous since, in reality, you’re probably looking at a bit less. In that case, investing $100 a month over 40 years will leave you with roughly $145,000. That’s only a $97,000 gain.

Stocks are worth the risk in the long run

Some people are hesitant to invest in stocks because they tend to be a lot more volatile than bonds. And that’s understandable.

But one thing you should know is that if you don’t invest in stocks, you run a different risk — winding up with a lot less money at the end of your savings window. In fact, let’s say you’re investing that $100 a month over 40 years for your retirement. A $145,000 nest egg may not go very far, whereas a $531,000 nest egg could make it so you’re able to cover your expenses and live comfortably without financial worries.

If you’re truly scared to put your money into stocks, consider adding S&P 500 ETFs to your portfolio. This way, you’re investing in the broad market rather than taking a chance on a few individual companies.

Plus, this option allows you to build a portfolio that’s instantly diversified. And diversification is an important part of growing wealth while minimizing losses along the way.

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Before you go to the bank to cash or deposit a check made payable to two people, make sure you know what to expect. Find out what you need to know. 

You’ve probably received a check made payable to you and were able to deposit it or cash it at your bank in a matter of seconds. But what happens when you receive a check made payable to two people? The steps you must take to collect the money when it’s written out to multiple people vary.

Here’s what you need to know

It’s not unheard of to receive a two-party check, which is a check written out to two people. This might happen if you’re married or are in a legal partnership with someone, or if there are two people on an account or contract (like an apartment lease) and you’re owed money.

The Consumer Financial Protection Bureau (CFPB) notes that how the check is written will generally determine if it needs to be endorsed by both people or just one person before it can be cashed or deposited at a bank. If you receive a check like this, you’ll want to verify whether the check includes the word “and” or if it includes the word “or” between each name.

If the check is made payable to two people with the word “or” in between each name, generally, either person can cash or deposit the check.If the check is made payable to two people with the word “and” in between the names, most banks will require both people to sign the check before it can be cashed or deposited.

It’s worth noting that banks can set their own policies, so it’s best to contact your bank to verify its policy before you try to deposit or cash the check.

If the check is made payable to two people, with the word “and” in between each name, some banks may require both people be present to deposit or cash the check. Some banks may require that the money be deposited into a joint bank account instead of an individual one. Again, it’s best to verify with your bank to be sure.

Should you open a joint bank account with a partner?

Have you received a check made payable to you and your partner with the word “and” between your names? If your bank requires you to share a joint savings or joint checking account to deposit a check and you don’t have one, you’ll need to consider whether it makes sense to open one. While joint bank accounts work for many partners and spouses, it’s not for everyone.

As a reminder, you should only open a joint savings account or joint checking account with someone you trust. Why? Both individuals will have full access to the funds in the bank account and can make deposits and withdrawals individually without the other person being present. Carefully consider this decision before acting on it.

Don’t want to open a joint bank account? Another option is to ask the person or company issuing the check to reissue it using the word “or” between your names instead of “and” or ask for it to be written out to one of you instead of both of you. Alternatively, you could both sign the check and show up to cash it in person instead of depositing it into a bank account.

For additional money management tips, check out our personal finances resources.

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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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I love the freedom and flexibility that comes with running my own business. Keep reading to learn what I hate about being self-employed. 

I have been running my own small business for over a decade now. I have grown my company over time, and there are many things I adore about being an entrepreneur. But there are also some downsides to being solely in control of my earnings and daily business operations.

Here are some of the biggest pros and cons of operating a business of my own.

Pro: I have freedom due to running my own company

The single best thing about running my own business is that it has provided me with a ton of freedom. Because of the nature of my business, I can work anywhere. I don’t have to be at any office at any particular time, and I can work whatever hours I want. This has enabled me to travel a ton, arrange my work schedule around caring for my children, and work more or less at various times based on my financial needs.

Pro: My earnings are in my control

Another major benefit of running my own company is that I have direct control over my earnings. I don’t just earn a set salary — the amount of money I make is based directly on the volume and types of work I produce. So, if I decide I need to increase my income, I have the opportunity to easily do that.

I also like that if I work harder or put in more hours, I see an immediate increase in the amount of money I bring home. If I worked for a traditional employer, my extra efforts might eventually lead to a raise or bonus, but I wouldn’t get a financial reward immediately for doing more.

Pro: I can choose to work with people I like

Finally, one of my most favorite things about running my own business is that I can choose to work with people I like. If I have a bad experience with a particular client, I don’t have to work with them again. It’s great to be able to work closely with people who you respect and admire, and not have to deal with the hassles of having a bad boss or unpleasant office politics.

Con: It’s hard to apply for a loan when I’m self-employed

Getting a mortgage loan has proved to be difficult every time I have applied, despite the fact I have plenty of money to pay for the loans I have wanted to take out. Many lenders are nervous about working with self-employed borrowers, and I have to provide a lot more documentation in order to get approved for my loans, including business profit and loss statements, balance sheets, and business tax returns.

Con: There’s no benefits provided to me

Because I don’t have a traditional employer, I also do not have workplace benefits. I have no 401(k) and no company-provided health insurance, nor do I have paid time off for vacations or maternity leave. I have to maintain my own retirement accounts and insurance policies, and build in time off for myself.

Con: It’s hard to set work/life boundaries

Finally, the last big downside is that it’s hard for me to set a boundary as to when I shouldn’t be working. After all, I can just pick up my computer any time and earn extra income.

Ultimately, the pros outweigh the cons by a big margin. But it is important to think about the advantages and disadvantages when deciding if running a business is right for you.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Layoffs are stressful and can put a serious strain on your finances. Learn how to prepare for a layoff so you know what to do in this situation. 

It’s always stressful to hear that your employer is planning layoffs. Unfortunately, this is something that can happen to anyone. Even when you’re excellent at your job, if the company needs to cut costs, you could end up unemployed.

Being prepared for a layoff makes it easier to manage financially and to get back on your feet. Here’s what you should do if you’re worried about this possibility, or if you know that layoffs are on the horizon.

1. Start putting more money in your emergency savings

One of the reasons experts recommend having an emergency fund is so you can pay your bills if you lose your job. The most common guideline is to have enough in your emergency fund to cover three to six months of living expenses. Finding a new job takes about three months on average, according to ZipRecruiter, so having that much in your emergency savings could cover you until you get a new position.

RELATED: Emergency Fund Calculator

If you don’t have at least three months of living expenses put away yet, set aside as much money as you can for your emergency fund each month. Even if you already have that much, you may want to consider saving more for some extra peace of mind.

2. Make sure your resume is up to date

People who have jobs often let their resumes gather dust. It’s not the best habit, but it’s understandable. After a long day at work, you probably want to relax, not work on your resume.

Since you’re going to need to look for work, go over your resume to see if it’s ready to be sent out. Check that all the information is accurate and up to date, and then look for ways to improve it. There are plenty of free and paid resume builder websites you can use to help with this.

3. Plan what you’ll do for health insurance

A layoff doesn’t just mean losing your job. It could also mean losing your health insurance, too. This is a common concern, especially since 54.3% of the U.S. population has health insurance through an employer as of 2021, according to Statista.

There are health insurance options you can get while unemployed, but your costs may change, so you’ll need to see what works financially. Here are some of the most common ways to get health insurance after a layoff:

COBRA (short for “Consolidated Omnibus Budget Reconciliation Act”) is a federal law allowing workers and families to continue receiving health insurance coverage for a limited time period after a job loss.Medicaid is low-cost health insurance offered by state governments.The Healthcare.gov marketplace allows you to purchase health insurance online.

4. Research unemployment benefits

Workers laid off through no fault of their own are normally eligible to receive unemployment benefits. While these won’t replace your full income, they can help you use less of your savings as you look for a new job. Look up your state’s unemployment website to find out the following:

How to file for unemploymentAny requirement information and documents you’ll needHow long benefits lastYour expected benefit amount based on your income

By having this information, you’ll be able to file for unemployment right away if you’re laid off. You’ll also be able to better plan your personal finances, including your budget, based on how much money you’ll be receiving per month.

RELATED: Best Budgeting Apps

5. Network and job hunt

Networking is another one of those things that’s good to do even while you’re employed. But if you haven’t kept up with it, now’s the time to start up again. Reach out to contacts to catch up and see what opportunities are out there.

Also, make job hunting a part of your daily routine. You can do this on job boards, with recruitment agencies, or by visiting websites for companies you’d be interested in working for. The best time to start doing this is while you still have a job, not after a layoff happens.

A layoff can be scary, but try not to panic or let it affect your mental health. If you follow the steps above to prepare for it, you’ll be more ready financially and potentially find a new job sooner.

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

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