Money Management

An economic slowdown could impact your ability to repay a loan. Read on to learn more. 

Personal loans are convenient in that they allow you to borrow money for any purpose, whether it’s to repair a car, improve your home, or upgrade your electronics. And generally speaking, they can be an affordable way to borrow — at least compared to racking up a credit card balance. This especially holds true if you’re a borrower with excellent credit.

But lately, there have been increased warnings about a potential economic downturn. And in light of that, you may want to rethink your plans to sign a personal loan.

Economists think things could change for the worse

The U.S. economy seems to be in good shape right now. Unemployment is low and consumer spending seems to be holding steady despite the higher borrowing costs that have ensued following a string of Federal Reserve interest rate hikes.

But many financial experts still seem convinced that economic conditions will deteriorate later this year. In fact, the Fed predicts a recession later this year, albeit a mild one, with a recovery slated for 2024 or even 2025.

In light of this, you may want to reconsider taking out a personal loan for one big reason. If a recession hits and it leads to an uptick in layoffs, your job could end up on the line. And if you lose your job, you might really struggle to pay off your personal loan.

In fact, it’s generally a good idea to try to shed some expenses ahead of a recession, not take on more. If you sign a personal loan now, you’ll have one more monthly payment to worry about. Even if your job doesn’t actually end up on the chopping block, the idea of being liable for that additional bill might end up being a big source of stress.

Will a recession actually strike this year?

Without a crystal ball, we really don’t know. The Federal Reserve actually hit pause on interest rate hikes at its last meeting, and that’s a good thing.

A big reason so many experts are convinced a recession is in the cards is that the central bank’s rate hikes have made borrowing expensive. And that’s something consumers might choose to rebel against in the form of spending less, leading to an economic decline.

But since the Fed didn’t move forward with a rate hike in June, it might be enough to keep consumers spending at a decent clip. And that could make it so a recession does not impact Americans this year.

All told, it’s hard to know what the next six months have in store. Much of that will depend on how inflation is measured in the coming months and what the Fed decides to do in light of that.

But either way, you should know that now’s not necessarily the best time to be taking on extra expenses, including personal loan payments. So if you’re able to hold off on signing a loan, you may be better off for it — especially if the reason you’re contemplating that loan isn’t a particularly urgent one.

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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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Costco’s food court items are legendary, but they can’t be delivered to your home. Learn why Costco keeps its pizzas in food courts. 

Papa Johns does it. Domino’s does it (apparently, no matter where you are). Shoot — even Sam’s Club does it. So why doesn’t Costco deliver pizza?

It’s been a question the warehouse giant’s loyal fans have been asking in food courts and Reddit threads since the company started delivering groceries in 2017. How great would it be to have a $9.95 pizza, $1.50 hot dog, or customized cake delivered on command? The only thing better would be to have free samples delivered too.

So what gives, Costco? Why keep food court foods in the food court? After saying that seven times fast, let’s take a closer look.

Costco’s focus isn’t e-commerce or delivery

Costco hasn’t disclosed exactly why it doesn’t deliver pizza or hot dogs, but its CEO Craig Jelinek came pretty close.

“It’s still important to get people physically in stores,” Craig told CNBC in December 2020. “I still think brick-and-mortar is not going to go away. We want to continue to get people in the stores, and there’s no better way to do it than a $1.50 hot dog and a rotisserie chicken (for $4.99).”

This line of reasoning has been consistent with Costco throughout the Digital Era. The company has been notoriously slow to develop its digital infrastructure, even as its competitors have innovated new ways for consumers to shop, such as Amazon’s palm-reading payment processors at Whole Foods, or Walmart’s “scan and go” feature on its Plus app. Meanwhile, Costco has done pretty much what it’s been doing since 1983: Offer you an airplane hangar filled with food and other stuff and, yes, a $9.95 pizza after you’ve towed a flatbed trolley down its aisles.

Even if Costco delivered pizza and hotdogs we could hardly expect it to charge the same prices. Unlike other stores, Costco charges more for items that are delivered, as if discouraging members to order online. It’s fun to brag about a $1.50 hot dog, but even a modest $1.00 delivery charge suddenly makes you realize you’re eating a hot dog, which might be soggy or stale and definitely not as cool as eating it in the warehouse.

A hypothetical 20% upcharge on a $9.95 pizza would raise it into a double-digit price (plus some change). That might not make you second-guess Costco’s quality, but it could add some decision anxiety if you’re comparing Costco with other pizzerias.

Will Costco deliver pizza in the future?

Costco does appear to be waking up to its digital void. In its third-quarter earnings call, CFO Richard Garlanti admitted Costco could do more to improve its online store. But he didn’t name any specific improvements and even suggested Costco would continue to keep prices low simply by being the Costco we all know — a big physical warehouse.

One thing that Costco could improve, however, is its cake-ordering system. Currently, there’s no way to order cakes online, not even to get the cake started. Instead, you must show up at the bakery, write down your order, and come back later when the cake is done. To anyone who’s planned a party that requires a cake, this not only feels unnecessary but frustratingly outdated. I’m okay picking up the cake at Costco, but if I have to make two separate trips, I’m going to pick a store that eliminates at least one.

Its cake system could be updated, but in regards to delivering food court items — it’s doubtful Costco will ever break from its traditions. For now, just enjoy the fact that you can eat lunch at the Costco food court for less than what a delivery service charges in fees. That’s enough to make your personal finances happy, especially if you’re already at Costco taking advantage of its cheaper in-store prices.

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

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Dollar Tree will bring back its dollar price tag for 300 to 400 products. Find out how to get the most out of dollar stores and save money on your shopping. 

What happened

Dollar Tree branched away from its trademark $1 dollar pricing at the end of 2021, when it pushed prices of the vast majority of products up to $1.25. That’s about to change again. According to Winsight, the company told its annual investor conference it plans to bring the cost of 300 or 400 products back to $1. It’s also looking to roll out a mix of price points at $3, $4, and even $5.

So what

Increasing numbers of shoppers have turned to dollar stores to save money in the face of rising prices. On the face of it, Dollar Tree’s moves could be good for Americans’ bank accounts. But without knowing which items will be affected, it is hard to know how much it will benefit consumers.

Reverting to $1 for certain products could reduce costs. Selling more items at higher price points may let it broaden its selection while still retaining competitive prices. Particularly as the retailer is aggressively expanding its frozen and refrigerated food options, which can often be a good money-saving option.

Now what

Dollar stores can be a great way to reduce your grocery costs. The trick is to know which items offer the best value and be prepared to shop around — dollar stores tend to stock a limited range of items.

Here are some tips to getting the most out of dollar stores:

Don’t assume dollar stores always cost less: Low prices make it easy to get carried away in a dollar store. Price comparisons can still be worthwhile, especially on branded products. The Krazy Coupon Lady says it found brand-name products at Walmart for 60% less than in Dollar Tree.Compare like with like: Dollar stores sometimes shrink the sizes of products to keep costs low. Don’t be fooled by the sticker price alone — look at the price per 100g or price per 100ml to get a realistic picture.Stack your discounts and rewards: Several cash back apps work with Dollar Tree and similar stores, as do certain coupons. If you have a rewards credit card, you can also use it to earn points. Stacking discounts and rewards can add up and save you money at checkout.Check the labels: Pay attention to sell-by dates on your dollar store purchases. One of the consequences of having fewer people on staff is that products that are past their expiration date might get left on the shelves.

Doing at least some of your shopping at stores like Dollar Tree may save you money. And bringing some of its products back to $1 could ease the pressure on your wallet — as long as the package sizes don’t shrink alongside the price tags.

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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.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.

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You don’t have to wait for Prime Day to benefit from Amazon’s awesome deals. Read on for some great offers you’ll find today. 

Many Amazon Prime members are super excited for the online retail giant’s Prime Day event, which is scheduled to take place on July 11 and July 12 this year. But the reality is that Amazon offers great deals all year round. So if you don’t want to wait for Prime Day or don’t want to deal with the pressure of having to be at your laptop during a specific window of time, here are some current deals worth checking out.

1. Kindle Paperwhite Signature Edition Essentials Bundle

If you’re tired of lugging books around with you or are ready to upgrade your e-reader, now’s a good time to move on this deal. Amazon is offering this Kindle bundle for $162.97, a 37% discount from its usual $257.97 price point. It comes with the Kindle Paperwhite Signature Edition with 32 GB of memory, a fabric cover, and a wireless charging dock. It also features an adjustable light and a longer battery life than previous models.

2. SodaStream E-TERRA Sparkling Water Maker

If you’ve been on the fence about buying a SodaStream, you may want to act soon. This model is now available on Amazon for $89.99, which is 44% off of its usual $159.99 price. With a 60-liter capacity, it allows you to make your own sparkling water beverages with three preset carbonation levels. It also includes a dishwasher-safe, reusable carbonating bottle.

3. Amazon Fire TV 75″ Omni Series 4K UHD smart TV

Upgrading to a smart TV is a big decision — namely because it could result in quite a large credit card tab. But right now, Amazon is offering this 75-inch model for $719.99, which is a 31% discount off of its normal $1,049.99 retail price. It offers a vibrant display and is Alexa-enabled so you don’t even have to reach for a remote. You can stream your favorite services, from Netflix to Disney+, with ease so you’ll never have to leave your couch. Whether that’s a good thing or a bad thing is up to you.

4. Samsonite Freeform Hardside Expandable Luggage with Spinners (2-Piece Set)

If you’re doing a lot of traveling these days and it’s time for a luggage upgrade, you may want to jump on this Amazon deal. You can score this two-piece Samsonite luggage set for $201.30, which is 43% off its normal $354.37 price point. The set includes a 21-inch carry-on and a 28-inch spinner for easy maneuverability. And while it’s not an inexpensive set per se, even with the discount, you should know that Samsonite products come with a 10-year warranty. So that might make you feel better about the larger outlay.

5. Amazon Basics Zero Gravity Chair with Side Table (Set of 2)

One of the best ways to take advantage of summer is to sit outdoors in a comfortable chair and read your book, sip some iced tea, or even doze off. Amazon currently has a great deal on this set of two zero-gravity chairs and a table. The chairs come with removable headrest pillows and cup holders, and they’re easy to clean. You can save 27% off of this set right now, bringing your price down from $135.99 to $98.60.

These deals represent just a handful of the bargains you’ll find on Amazon right now. If there’s room in your budget to do some spending, it pays to see what other discounts you can snag.

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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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