Money Management

It’s important to choose the right type of Costco membership. Read on to see if that means upgrading to an executive one right away. 

When I first joined Costco, it was before my husband and I had kids, so we decided to stick to a basic membership. While we shopped at Costco frequently enough to make our membership worth paying for, we didn’t feel compelled to spend the extra money on an executive membership.

If you’re new to Costco, you may be inclined to start with a basic membership, see how things go, and upgrade to the more expensive membership if you find that you’re shopping at Costco a lot. But you may also want to opt for an executive membership from the start. Here’s why.

It’s really a no-risk proposition

A basic Costco membership costs $60 a year, while an executive membership costs $120. But with an executive membership, you get 2% cash back on all Costco purchases you make. So if you spend enough money at Costco, the executive membership can easily pay for itself. (In fact, it takes $3,000 in annual Costco spending to make back the extra money you spend on an executive membership, so for every dollar you spend beyond that, you come out ahead financially.)

Now, if you’re new to Costco, you may not know whether you’ll end up spending $3,000 your first year. And so you may be hesitant to upgrade your membership.

But here’s a lesser-known nuance about that executive membership you may not be aware of. If you sign up for it and don’t spend enough to make your money back, you can downgrade to a basic membership before your membership comes up for renewal, and Costco will refund you the difference.

Here’s an example. Let’s say you go with the executive membership but only end up spending $2,000 your first year at Costco, leaving you with just $40 cash back. If you decide not to keep your executive membership, Costco will give you $20 back to make you whole on the $60 you spent to upgrade. So all told, there’s really no risk involved. In a worst-case scenario, all you’re doing is shelling out extra money upfront. That’s it.

It’s a personal choice

When I was a new Costco member, I knew that based on my shopping habits, I was not going to spend enough to justify the cost of an executive membership, and so I passed on the upgrade. And if you’re certain you won’t spend enough to make back your upgrade fee in cash back form, then you may want to stick to a basic membership for the time being.

But if you’re not sure, then you may want to upgrade your Costco membership from the start and see what happens. Since there’s virtually no financial risk involved, it certainly isn’t a poor choice. And you may be surprised at how much money you end up spending at Costco once you realize how many different savings opportunities your membership allows for.

Also, if you think there’s a chance you’ll be booking travel through Costco, then an executive membership generally makes sense. Travel purchases are eligible for the 2% back that upgraded membership offers, and you might end up spending $3,000 or more on a single trip.

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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.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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Should U.S. consumers be worried about the economy? Read on to see what one financial expert says. 

Financial experts spent much of 2022 warning of a 2023 recession. In spite of that, unemployment is low and job growth has persisted.

But things have the potential to change for the worse during the latter half of the year. And Goldman Sachs CEO David Solomon thinks it wouldn’t hurt for Americans to be a bit cautious right now.

Although Solomon isn’t necessarily saying a full-blown recession will hit, he does think that in the coming months, consumers may be forced to grapple with “sluggish growth and sticky inflation.” And that’s hardly ideal.

Inflation has been wreaking havoc on consumers since mid-2021. And consumers, frankly, need a break.

A recession, or recession-like downturn, could help break the cycle of inflation. But that’s something consumers should make certain they’re prepared for. Here’s how.

1. Build up some savings

The danger of a recession is that it can lead to widespread job loss. To protect yourself from that sort of situation, your best bet is to build up a solid emergency fund so you have cash reserves to tap in the absence of a paycheck.

At a minimum, your goal should be to have enough money in your savings account to cover three full months of essential bills. And if you can aim higher, even better.

It can be difficult to find a new job even when economic conditions are favorable. During a recession, finding work can be a challenge even among seasoned professionals with solid skills. So the more savings you have to tap, the less pressure there is to immediately find a job in the event of a layoff.

2. Pay off costly debt

If a recession strikes, the last thing you’ll want is to have monthly credit card payments hanging over your head. So if you’re currency juggling debt, consider getting a temporary side gig to pay as much of it off as you can. Given that interest rates are sky-high these days, shedding a credit card balance sooner is a savvy move even without recession fears.

3. Boost your job skills

The more work-related skills you have, the harder it might be for your employer to let you go should job cuts become necessary. And even if you are terminated through no fault of your own, having extra skills could make it easier to find a new job should that need arise.

Think about some of the skills that might make you better at your current job and more marketable within your industry. If you work in advertising, for example, boosting your public speaking skills might be beneficial to your career.

Solomon is far from the only expert to caution that economic conditions could worsen later on in 2023 or in 2024. Rather than lose sleep over the idea of a downturn, take steps to make sure you’re adequately prepared. That means growing your savings, shedding expensive debt, and doing your best to present yourself as a skilled, knowledgeable employee any company would be lucky to have on its team.

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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.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy.

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If you receive credit card food delivery credits as a benefit, don’t ignore expiration dates. Read on for a few ways to use your credits before they disappear. 

If you have a rewards credit card that includes perks like food delivery credits, you want to make sure you put them to use to maximize the value you get from your card. These credits usually have an expiration date. Unless you can stack credits, you may need to use them during the month you receive them or risk losing them. If you’re not careful, you may forget to use your credit card delivery credits. We have a few ideas to help you use your credits before expiration.

1. Order food that you can freeze for a future meal

Some food items freeze well. If your delivery app credits are about to expire, why not order a dish to stash in your freezer for another day? Menu items like soups make great freezable dishes that you can save for when you’re in a pinch later. Pack it up in a freezer-safe container and you’ll be all set.

2. Treat a friend to a free meal

If you’re worried about your food delivery credits expiring and already have a jam-packed week with meals planned, you could treat someone else to lunch or dinner. You can use your credits that are about to expire to order a meal for a family member, friend, coworker, or neighbor. They will surely appreciate the kind gesture, and you won’t lose your credits.

3. Get an appetizer, salad, or side to complete a meal

If you don’t like the idea of your credit card delivery credits going unused, another option is to use your credits to order an appetizer, salad, or side. This solution could work well if you have meals planned for the week. Just choose something that will complement your meal nicely.

4. Place an order for dessert or coffee

In addition to restaurants, many other eateries are featured on food delivery apps. If you’re in a crunch for time and want to use your credits up, consider ordering a sweet treat for dessert. Another option is to order coffee from a local coffee shop. By thinking outside the box, you can ensure your credit card delivery credits don’t expire before you use them.

5. Order convenience store items

Some food delivery apps allow you to purchase convenience store items. If you need to use your credits at the last moment, check for convenience store options in your area. You can order snacks or even buy household essentials instead of a takeout dish. This is a great option when you want to use your food app credits but don’t want to order traditional takeout for whatever reason.

Rewards credit cards can be a win for your wallet

Many people use rewards credit cards to earn cash back and other rewards when spending money with their cards. But they can also include benefits that add convenience to your life. You’re missing out if you’re not yet using credit cards that earn rewards. Check out our list of the best rewards credit cards to learn more about the benefits offered.

If you order takeout frequently and like earning rewards on your restaurant spending, check out our list of the best restaurant and dining credit cards. Some of these credit cards include delivery app credits as a cardholder benefit. Who doesn’t like free food? I know I do.

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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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The Small Business Administration has been helping entrepreneurs get their businesses off the ground since 1953. Find out what it can do for you. 

Whether you own a small business or are thinking of opening a shop of your own, you may wonder about the role the Small Business Administration (SBA) plays. For 70 years, the SBA has been helping people like you “start, grow, and build resilient businesses.” Here are four ways the SBA makes it happen.

1. Helps you secure capital

If your business needs a lift and a bank loan would help, SBA can help you figure out which loan is right for you. Then, it’ll guarantee the loan. The bank knows that if you fail to make payments, SBA will repay up to 85% of what you owe.

SBA-guaranteed loans typically have rates and fees comparable to non-guaranteed loans, meaning you won’t overpay. And benefits may include a lower down payment and flexible overhead requirements. Plus, you don’t need to provide collateral for some loans.

Depending on the type of loan you take out, it may come with continued SBA support to help you start and run your business.

There are more than half a dozen loan types from which to choose.

2. Helps you grow as an entrepreneur

The SBA’s Office of Entrepreneurial Development (OED) operates a network of programs that support the training and counseling small businesses need to thrive. With resource partners scattered around the U.S., programs and services within the OED include:

Small Business Development Centers (SBDCs): With 63 lead centers and over 900 service centers, SBDC is a broadband service delivery network designed to enhance local economies.Women’s Business Centers (WBCs): There are more than 100 WBC locations throughout the U.S., created to promote the growth of woman-owned businesses by offering training, technical assistance, access to credit and capital, federal contracts, and an opportunity to become involved in international trade.Entrepreneurship Education: Through the Office of Entrepreneurship Education (OEE), the SBA administers programs that provide education and training to both prospective and current small business owners. OEE offers a free online learning center, the T.H.R.I.V.E Emerging Leaders Reimagined Initiative, and a host of other partnerships.

3. Works to develop government contracts

Every year, the U.S. government spends hundreds of billions of dollars on goods and services. These goods and services are purchased from private businesses. The SBA negotiates with the government to ensure that a specific amount of money will end up in the checking accounts of small businesses owned by disadvantaged individuals, service-disabled veterans, and women.

The SBA also plays a major role in forming new federal procurement policies that have a huge impact on small businesses like yours.

Currently, the goal is to ensure that 23% of prime contracts are awarded to small businesses. Specifically, the SBA wants to see business go to the following:

5% to woman-owned businesses3% to service-disabled, veteran-owned businesses5% to small disadvantaged businesses3% to HUBZone firms (a HUBZone is a small business that operates and employs people in historically underutilized business zones)

No one is born knowing how to land a government contract, though. The SBA fills that gap by teaching businesses how to meet the requirements needed to receive government contracts, whether that’s as a prime contractor or subcontractor.

Finally, the SBA Office of Government Contracting oversees special initiatives, such as the Women-Owned Small Business program, Service-Disabled Veteran-Owned program, and the federal procurement awards program.

4. Advocates on your behalf

One of the most important things the SBA does for businesses like yours is to advocate. They’re in D.C., working with the federal government to give small businesses a better shot at success. They’re reviewing Congressional legislation and testifying on behalf of small businesses. And the SBA is continually reviewing business regulations to determine the impact of those regulations on small businesses.

While a small business owner may not have the connections to interact with policymakers, the SBA does. It uses its seven decades of experience to protect the interest of small businesses in the U.S. That includes preserving free competition and strengthening the economy as a whole.

As you know, it takes more than a good idea to go into business for yourself, and that’s where the SBA comes in. It’s a place you can ask questions about anything from hiring practices to accounting software. It fills any gaps in your knowledge to help you meet your goals as a business owner.

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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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It’s not easy to travel when your children are young. But in some ways, it can be easier and more economical. Read on to learn more. 

My husband and I did a fair amount of traveling with our son when he was a baby. Although it wasn’t always the easiest — we had to pack a portable crib, a stroller, and all sorts of gear — it was manageable due to the fact that there were two of us and one of him.

But once I had my twins a few years later, traveling as a family became a much more challenging prospect. At that point, we had to triple our gear in some cases, not to mention deal with little kid tiredness, moodiness, and diaper changes.

But as difficult as it was to travel with a gaggle of young kids, I’m really glad we did it. We got to experience some really great things together as a family. And while my children may not remember much of it, my husband and I sure do.

Traveling with young kids can also be fairly economical. And so you may want to push yourself to do it for that reason alone.

You might reap some big savings

Now that my children are older, we’re well past the days of not having to pay to enter a theme park or put extra people in a hotel room. But if your kids are young, you may be in a different boat.

Often, when you have young kids, you’re not charged extra to stay at a resort. And you may be able to score free restaurant meals, since many establishments have a deal where you get a free kids’ entree with every adult entree you purchase.

Also, many theme parks do not charge admission for children who are very young. Disney World, for example, does not charge a fee for children under the age of 3. That could amount to a lot of savings given that admission there is pretty costly.

How to make it easier to travel with kids

One of the things we did to make it easier to travel with kids was drive to most of our destinations rather than fly. The idea of taking two infants and a toddler, or two toddlers and a preschooler, on a plane just sounded horrendous. So back then, we generally opted to load up the car, fill the tank with gas, and drive to different destinations.

Now, you might think that would’ve limited us, but actually, it didn’t at all. We took several cross-country road trips with our kids when they were very young, one of which had us hauling ourselves all the way from New Jersey to Montana.

We also frequently opted to rent private homes through sites like Vrbo or Airbnb rather than cram into hotel rooms. That allowed us to spread out, cook some of our own meals to save money, and avoid a scenario where my husband and I had to turn off the lights and sit in silence at 7:30 p.m. every night because that’s when our kids needed to go to sleep.

If you have young kids, you may decide that traveling just isn’t worth it. But if you can afford to take some trips at that stage, do it. Your kids may not remember much, but you’re allowed to do things you enjoy and create fond memories you can look back on. And remember, travel is likely to be much more expensive once your kids get a bit older, so you might as well take advantage while you can.

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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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Sam’s Club offers plenty of great bargains, but it’s easy to fall into shopping traps. Here are five to beware of. 

If you’re a Sam’s Club member, you probably employ a few tricks to make your shopping more productive. Maybe you hit one specific part of the warehouse club before heading to others. Maybe you shop alone. Or, you may just be figuring out what works best for you. As you adopt new shopping strategies, here are five things you’ll want to avoid.

1. Shopping while hungry

A study in the Proceedings of the National Academy of Sciences found that hungry shoppers spend more than 60% more than those who shop on a full stomach. Based on five research studies conducted by professors from the University of Southern California, Chinese University of Hong Kong, and the University of Minnesota, the researchers found something rather strange.

According to Norbert Schwarz of the University of Southern California, the trio found that the desire to get food generally plants the idea of “getting stuff” in a hungry person’s mind, increasing the likelihood that they’ll be attracted to products that don’t satisfy physical hunger. The internal message “I want food,” simply becomes “I want.”

2. Feeling obligated to buy

There’s a good reason Sam’s Club employs people to hand out samples. According to Inspira Marketing, 65% of consumers who try a sample purchase it during the same shopping trip. What’s more, 24% of those people say they replaced an item they planned to buy with the sampled product.

Don’t get caught up in the belief that you must purchase an item just because someone was kind enough to offer you a sample. Naturally, if it’s something you really like and believe your household will consume it, go for it. But if you’re doing it to be polite, there’s no need. It truly is a marketing strategy.

3. Being seduced by low prices

It’s fair to say that most of us would rather tuck a little extra money into savings each month than overpay for the items we regularly purchase. Sam’s Club can make it easier to accomplish this goal — but only for savvy shoppers. Here are two reasons why:

A product is only a “bargain” if you plan to use it in its entirety. At Sam’s, you can buy a 25-pound bag of enriched long grain rice for $13.28. At Target, you can buy the same amount of rice for $21.95. It seems like an easy choice. However, it’s not truly a bargain if you don’t end up using the entire 25-pound bag by the time it expires.There’s something about finding an item at a discounted price that makes us think twice about leaving it on the shelf. We walk away wondering if we just squandered the opportunity to snag a great deal. If you didn’t walk into Sam’s Club needing that 48-pack of AA batteries, you won’t miss them when you get home.

4. Leaving the house without a list

Shopping from a list is one of the best ways to resist temptation. You know specifically what you need and don’t have to wander around the club trying to remind yourself. If you can get in the habit of sticking to your list, you’re sure to leave more in your checking account.

A survey by retail solutions company Field Agent found that 44% of shoppers believe they spend less when they head out prepared with a shopping list, evidence that shopping lists can work.

Fun fact: One of the few remaining papers from the Renaissance Man, Michelangelo, is a shopping list. Written either in the late 15th or early 16th century, it included staples like fish, soup, bread, and wine.

5. Shopping on Saturdays

Unless you’re one of those rare souls who adore crowds, you may want to avoid shopping at Sam’s Club on Saturdays. The more physically uncomfortable you are, the more likely you’ll be to make hurried decisions, like buying an item you’re not sure you need. It’s tough to think clearly when you’re surrounded by noise.

Instead, look for a day (or time) that tends to be less crowded. According to Sam’s Club members on Quora, you should encounter less hustle and bustle midweek. If you can’t make it midweek, the crowds are manageable early on Sundays before the church crowd floods in.

As we wait for inflation to cool, perhaps the best we can do is save where we can. That may mean using money-saving apps, conducting a price comparison before we leave the house, and sticking to a shopping list.

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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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