Money Management

Newly married couples should have a discussion about life insurance before taking on joint financial obligations. Here’s why. 

Getting married is the start of an exciting new life together. Often, this life comes with shared financial commitments, such as a joint bank account or a mortgage on a shared home.

When couples combine their lives and finances, it becomes important to have a discussion about life insurance. Here’s why.

Married couples need to make sure they have the right life insurance in place

The reality is, when people get married, they are forming a financial partnership as well as a romantic one.

Married couples inevitably will have at least some joint financial commitments even if they try to keep their bank accounts separate. For example, a couple might buy a home together and determine if it is affordable based on their combined income. Or, they might have a child together which the Brookings Institute estimates will come at a cost of $310,000 from birth until age 17.

When a couple begins to build a life together and they make commitments and establish a standard of living based on their combined household income, the death of either spouse could have devastating monetary consequences. Without the right plans in place, it could lead to a drastic decline in quality of life, as well as dire consequences like foreclosure. When dealing with the grief of losing a spouse, these financial worries are the last thing a surviving widow(er) needs to cope with.

Life insurance can help ensure that an untimely death does not result in financial devastation. It can provide a death benefit that will replace the deceased person’s income, help support shared children, and help to pay off the couple’s joint debts.

Life insurance is even important in situations where only one spouse works, as the non-working spouse likely contributes services to the household (such as childcare) which would have to be paid for upon their death.

Married couples need to talk about this issue, discuss how much life insurance would be needed in the event of either person’s death, and make a concrete plan to get covered ASAP before something tragic happens — even if that tragedy is just one spouse developing a pre-existing condition that prevents them from getting insured later.

How to talk to a spouse about life insurance coverage

Talking about life insurance probably is not a fun thing to do as a newly married couple. But it should be part of the conversation when newlyweds begin to think about their future.

Ideally, when a couple gets married, they’ll have a broad discussion about how they will manage finances and work toward shared financial goals. A life insurance discussion should be part of that talk.

For those unsure how to start, it’s best to set aside dedicated time to bring up key financial issues. Each partner can come with a list of financial issues to address and couples can work through these issues over time — including the issue of how much life insurance to buy. The discussion can be focused on how a surviving spouse could maintain the couple’s shared commitments and move forward financially.

By bringing up the issue of life insurance, couples can make sure to get plans in place while they can still do so affordably so both parties have the peace of mind of knowing their partner would be financially stable should the worst occur.

Our picks for best life insurance companies

Life insurance is essential if you have people depending on you. We’ve combed through the options and developed a best-in-class list for life insurance coverage. This guide will help you find the best life insurance companies and the right type of policy for your needs. Read our free review today.

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.

 Read More 

Wholesale club fans are usually Team Costco or Team Sam’s Club. Here’s one of the best arguments in favor of the latter. 

We love warehouse clubs around here. They can be great personal finance choices for many families thanks to the many ways they can help you save money. But we don’t all love the same clubs. As is common all across the fandom, there’s a tendency to pick sides: You’re either Team Costco or Team Sam’s Club.

I try to stay unbiased, but to be honest — Sam’s Club has the edge in my book. Oddly enough, however, it’s not really about money and deals for me (though Sam’s has plenty of deals).

No, I prefer Sam’s Club because of the sheer convenience it provides.

Scan & Go, no humans required

What’s the worst part of any trip to the local warehouse club? That’s right, it’s the lines.

On a busy day, despite the 10+ checkout lanes, getting out of a Costco tends to take a good 20 minutes while you wait for all the people ahead of you to scan their entire carts. (Because who actually makes it out of Costco with anything less than a cartful?)

That’s not a problem when I shop at Sam’s Club. In fact, I don’t even have to so much as think about standing in a checkout lane thanks to Scan & Go.

Instead, I open the Sam’s Club mobile app when I enter the store. Then, I simply scan items as I add them to my cart. (And yes, they can stay there until I put them in my car. No emptying the whole thing at checkout, either.)

Once I’m done shopping, I can check out and pay with one of my saved credit cards right from the app before bypassing the checkout lanes entirely. The associate at the door can scan your digital receipt on your way out, and you’re on your way.

Sam’s Club Plus perks add extra convenience

Scan & Go is a great perk that’s available for all Sam’s Club members. But if you’re a Plus member, you have access to additional benefits that make Sam’s Club even more convenient.

For instance, Plus members can get Free Curbside Pickup, which is a remarkably useful tool. You can place your entire order online — maybe during lunch or even the night before — then swing by on your way home to pick it all up. You don’t even need to get out of the car.

Or, my personal favorite, just have Sam’s Club ship it. Nearly anything in the store (minus the refrigerated stuff) can be shipped to your door. And shipping is free on most items when you have a Plus membership.

Oh, and there’s little to no markup on most items between the store price and online price. This is unlike Costco’s online shopping experience, where you pay a multi-dollar markup on top of the delivery fee.

Three cheers for Team Sam’s Club

The wholesale club universe has plenty of devoted shoppers who are firmly in the Team Costco camp. But Sam’s Club’s boundless convenience is the only reason I need to happily root for the other side.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

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 until 2024, 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.Brittney Myers 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.

 Read More 

If you’re hopping on the CD bandwagon, locking your money in for longer could really benefit you now. Find out why. 

Got some cash you don’t want to invest, but also don’t want to be tempted to spend for a while? For just this instance, have I got the bank account for you! Certificates of deposit, also known as CDs, offer you the chance to lock up your money and earn a decent rate of interest for a set period of time. Typically, you’ll find CD rates between six months to five years on offer, but you can also find shorter and longer terms. In fact, right now might be a good time to sign on for a longer term rate on a CD. We’ve seen pretty generous APYs on CDs in the wake of the Federal Reserve’s rate hikes over the last year or so, but that might be about to change.

Will the Fed stop hiking rates?

Since March 2022, the Federal Reserve has increased the federal funds rate a whopping 10 times, and as a result, interest rates on both consumer debt and consumer deposit accounts have increased. To be clear, the Fed doesn’t set those consumer rates; the federal funds rate is what banks charge each other for lending. But consumer rates are influenced by changes to it, which is why we’ve seen higher credit card interest rates and higher APYs on savings accounts, money market accounts…and CDs.

The Fed is set to meet again on June 14, and as reported by NBC News last month, it may be taking a pause on those interest rate hikes. The dreaded inflation we’ve all been struggling with since early 2022 finally seems to be on its way down, and was at 4.9% as of May’s Consumer Price Index report. If this ends up being the case, we might not have those higher rates on CDs to enjoy for much longer. So now is the time to act and lock in today’s higher rate on the CD of your choice.

A CD can grow your money and keep it safe

CDs aren’t the most flexible type of account; once you deposit your money in one and start the clock on your CD term, you won’t be allowed to withdraw your cash without penalty. The penalty could be losing a few months of precious interest earned, so it’s worth making sure you won’t need that cash for the entire term so you don’t end up missing out on that interest. The best CD rates right now are upwards of 5%, and that’s certainly nothing to sniff at. If you’re down to sign on for a longer term CD, give these a look:

Best 1-Year CD RatesBest 3-Year CD RatesBest 4-Year CD RatesBest 5-Year CD Rates

CDs also offer peace of mind for the diligent saver. There have been several big-name bank failures this year, and it’s really no surprise that a lot of people are nervous about banks. Thankfully, FDIC insurance covers many banks that offer CDs. Up to $250,000 of your money per deposit account per bank is safe ($500,000 for joint accounts). If you’re not sure whether your bank is FDIC-insured, you can check using its BankFind Suite tool.

If you’ve been considering opening a CD account, it might be a good move to act fast, while rates are still this generous — because they may not be for much longer if the Fed stops its rate hikes. Lock in a higher rate while you can.

These savings accounts are FDIC insured and could earn you 12x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts can earn you 12x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2023.

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.

 Read More