Money Management

American Airlines flyers purchasing basic economy tickets will no longer get a free checked bag on transoceanic routes. Find out what fees you’ll pay. 

American Airlines passengers traveling to a transoceanic destination with a basic economy ticket, the airline’s most affordable fare, will now be charged for checking a bag.

Expect to pay checked bag fees when flying basic economy

If you book a basic economy ticket with American Airlines, you’ll pay the lowest price available. But you can expect your ticket to include fewer extras since it’s the airline’s most basic fare offering. Most basic economy fares aren’t eligible for ticket changes. But that’s not all.

American Airlines recently adjusted its baggage fee policy to include a bag fee charge for checked bags on all transoceanic flights. Basic economy passengers flying on a transpacific or transatlantic route will be charged $75 each way for their first checked bag. Additional checked bag fees apply for any extra checked bags. These fees can add up quickly if you travel often.

Other routes already required passengers to pay checked bag fees when buying basic economy fares. With this change, no basic economy routes will include free checked bag perks. Below is a breakdown of all checked bag fees for basic economy customers flying with American Airlines for all regions. Fees are charged each way, per-passenger:

This news is worth noting if you like to purchase basic economy tickets to keep more money in your pocket. With checked bag fees now applying to transoceanic routes, you may want to include more money in your vacation budget so you feel less impact from checked bag fees.

How to avoid checked bag fees when flying basic economy

Extra fees impact your personal finances. If you prefer to avoid paying checked bag fees, you may want to purchase a main cabin ticket when booking an American Airlines flight. A free checked bag is included when flying on transoceanic routes with a main cabin ticket.

Another way to avoid these fees is to bring a carry-on bag only. Passengers flying with a basic economy ticket can bring a carry-on bag and a personal item at no extra cost. By packing light, you can avoid additional fees and save time when you arrive at your destination since your bag will already be with you. Once you get used to traveling with only a carry-on bag, it gets easier.

Airline credit cards can be a win for your wallet

If you travel often and don’t want to worry about checked bag fees, you may want to consider getting an airline credit card. Many airline credit cards include benefits like free checked bag perks. Plus, you can earn rewards, and redeem them for free flights in the future.

Review our list of the best airline credit cards to learn more about the benefits offered. If you’re an American Airlines loyalist, you may want to get an American Airlines credit card.

Check out our list of the best American Airlines credit cards to find a card that includes checked bag perks so you don’t have to worry about extra checked bag charges when you fly.

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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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During this wedding season, some advice from Dave Ramsey could help make it more affordable to attend your friend’s special days. 

According to The Knot, the average cost of attending a wedding was about $460 per guest in 2021. And prices only go up if a wedding is out of town. Those who drove out of town for a wedding spent an average of $660, and those who flew somewhere spent an average of $1,270.

This is a really huge amount of money to put on your credit cards to celebrate someone else getting married. But, of course, even if you end up taking a hit to your bank account, you’ll likely want to be there on your friend’s special days.

The good news is, there are ways to reduce these costs in some circumstances. Finance expert Dave Ramsey has some advice on how to do that. But which of his suggestions should you follow?

Share travel costs

Ramsey suggested teaming up with a friend to reduce the cost of attending a wedding, such as by carpooling in a shared rental car or splitting a hotel room among several guests.

This is actually great advice, because doing this can make the wedding even more fun — especially if you are going to see friends you don’t get to visit often. When I’ve attended weddings, my friends and I have regularly implemented this approach. We did tweak his suggestion a bit, though, and split an Airbnb instead of a hotel, as the prices for a big group were lower and we got more bang for our buck.

If you’re going to share costs with others, be sure you’re clear up front on how expenses will be split. Will you all share the room cost equally, for example, or will those with a bigger bedroom at the Airbnb pay more. And will both rental car and gas costs be split between all parties, or will you use one person’s car and the other will pay for gas?

You don’t want to spoil the fun of the event with a conflict over how to split the bill, so discuss these issues before you head out.

Be strategic about booking your trip

Ramsey also has some suggestions for being strategic about lowering travel costs, including researching deals and traveling on the cheapest days (like flying on Tuesday or Wednesday).

Obviously, shopping around for low-price fares makes sense, but it may not be worth your while to schedule your travel around airfares. Weddings, of course, are on specific days — usually a Saturday — and getting to the event several days early just to get a cheaper flight would mean paying more for lodging and food and missing more work, so you may end up with more out-of-pocket costs with this approach.

Skip some of the special events

Another idea Ramsey had was to skip some of the events like the bridal shower or other parties surrounding the big day. While this advice may seem smart, the reality is that the couple who is getting married are going to be really busy at the wedding itself. If you really want time to connect with them, and you’re already paying the cost to travel for the ceremony, you may as well pay a little extra to go to these more intimate affairs.

Combine your vacation with a wedding

Finally, Ramsey advises trying to combine your wedding with a vacation so you don’t have to take a separate trip. And this advice is definitely worth following. Not only will you save money by not having to travel to multiple destinations, but you may also get to explore someplace you otherwise wouldn’t have visited.

I’ve implemented several of these tips myself, including combining a wedding with a vacation, so pick and choose the ones that work for you and enjoy this upcoming wedding season. One day, many of your friends will be old and married (like mine are) and you’ll miss 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.The Motley Fool has a disclosure policy.

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Sam’s Club sells electronics at decent prices, but how do its smartphones compare? Read on to learn if it’s worth buying a phone at Sam’s Club. 

Buying a smartphone at Sam’s Club could be a good bargain if you’re a new AT&T customer and want to save $250 on a 36-month installment plan for a new phone. The AT&T promotion can be even more significant if you have multiple people in your family and want to bring everyone to AT&T.

But read the fine print first: The promotion doesn’t work for every plan, and you won’t see that $250 discount all at once. Let’s take a look at Sam’s Club’s smartphone prices and AT&T promotions and see if buying a smartphone from the warehouse will be a good decision for your personal finances.

How smartphone prices compare

If you’re going to buy a smartphone on an AT&T contract, you’re basically limited to a few models of iPhone and Samsung. While you can also buy some Google and Motorola unlocked phones, you have significantly fewer choices and you won’t be eligible for the AT&T promotions, arguably the top reason for buying a phone at Sam’s Club at all.

As far as prices go, Sam’s Club’s phones are on par with or slightly more expensive than Amazon. For instance, here’s how its most recent Samsung and iPhone models compare:

How AT&T promotions work

The real benefit of buying a smartphone at Sam’s Club is its AT&T promotions. Let’s take a look at how these promotions work for three scenarios: new AT&T customers, existing users, and those upgrading their phones.

New AT&T customers

New AT&T customers can receive a $250 discount and $35 activation fee waiver when they transfer an existing number (“port in”) to the AT&T network.

To be eligible for this discount, you must purchase a new eligible smartphone on a 36-month 0% APR installment plan. The discount starts within three billing cycles and is applied over 36 months, which translates to a savings of $6.95 per month. So, for example, if your base AT&T plan is $100.95 per month, then the 36-month discount would reduce your payment to $94.

Keep in mind that a 36-month installment plan will more or less limit you to that smartphone for the next three years. While AT&T does have an option to fast track your upgrade to 18 months for $6 monthly (“Next Up” plan), this plan isn’t eligible for the $250 discount. To get the full $250 credit, you have to stay with this phone until the installment plan period is over.

Again, this is for customers who do not currently have AT&T and would like to transfer their number to the network. Existing users are not eligible for this discount.

Existing AT&T customers

If you’re already on AT&T’s network, you could save $100 when you add a new number to your account. The criteria for this discount is similar to the one mentioned above: You have to purchase an eligible smartphone on a 36-month 0% APR installment plan. The discount starts within three billing cycles, and it’s applied monthly for a savings of roughly $2.78 per month.

Upgrades

Finally, existing AT&T users can save $50 for every phone they upgrade. Much like the other two discounts, you’ll need to put your upgrade on a 36-month 0% APR installment plan. The discount applies within three billing cycles and over a 10-month period ($5 per month).

Should you buy a smartphone from Sam’s Club?

Sam’s Club’s prices for smartphones are decent, but they’re nothing to write home about. And while the AT&T promotions can be enticing, be sure you read the fine print before signing up. Understand what plans qualify for the promotions and when you should expect the discounts on your bills.

It’s important to know that the AT&T representatives at Sam’s Club don’t work for AT&T. As such, they don’t have the same training as AT&T employees and might not be able to explain plans, promotions, and monthly charges as thoroughly as someone who works directly for the company. In fact, according to previous customers on AT&T forums and Reddit, working with AT&T representatives at Sam’s Club can be a hassle: They often get things wrong, and you have to call a special hotline number to fix mistakes.

You should also keep in mind that you likely won’t see any major savings until your third billing cycle, and you might be charged the activation fee before it’s credited back to you at a later date. That can come as a surprise, especially if you’re expecting your monthly payment to be lower than what’s charged to you.

But if you can work around the fine print, buying a phone at Sam’s Club could be a good deal, especially if your family is three or four people. Saving $6.95 per person for a four-person family comes out to $27.80 monthly, or $333.60 in savings per year. Saving that kind of money can give your budget some serious breathing room, not to mention more than pay for a Sam’s Club membership itself.

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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.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 Alphabet, Amazon.com, Apple, and Gala. The Motley Fool has a disclosure policy.

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