Money Management

Just because your household size has decreased doesn’t mean a Costco membership can’t benefit you. Read on to learn more. 

Many people don’t join Costco until they have children. The logic is that for singles or even couples, it can be harder to justify spending money on bulk grocery items that may not get consumed before they expire.

To put it another way, you’re more likely to use up bulk cheese, meat, and produce when you’re feeding a family of four or five, as opposed to just one or two people. And also, the larger your family, the larger a home you might feel compelled to live in. That means you might end up needing more household items, like cleaning supplies. It also means you may be more likely to have storage space for things like 24 rolls of toilet paper at a time.

But what if your kids have grown up and moved out on their own? Should you keep your Costco membership at that point? The quick answer is, it depends on your lifestyle and how your housing situation looks.

Don’t write off a Costco membership just because your kids have left the nest

Even though the cost of a Costco membership is pretty reasonable — just $60 for a basic membership and $120 for an executive membership — you might prefer to save your money and give up your membership once your kids have moved out of your home. But before you do that, think about your habits and housing situation.

If you still do plenty of cooking at home, then you might easily justify the cost of a Costco membership (especially a basic one) via the savings you reap on bulk grocery items, even if you’re not buying the same variety of items in bulk as you did when your kids lived with you. And if you have neighbors over for meals pretty often, your Costco membership could help you feed a crowd for less.

Also, many empty nesters make the decision to downsize their homes. After all, why spend more money on housing when you can conserve costs by shedding square footage you don’t need?

But let’s say you haven’t gone that route. Maybe you’re hanging onto your larger home so your kids have a place to stay when they visit. Or maybe you’ve paid off your mortgage loan and your property taxes are pretty affordable, so you’re opting to stay put in a larger home because you love your neighborhood and have friends nearby.

If so, and you have ample room for storage, then it could pay to keep your Costco membership. That way, you can continue to save money on items that aren’t perishable, like paper products and cleaning supplies.

A personal decision

Many people make big changes to their spending and expenses once their children leave the nest. You may decide that a Costco membership no longer makes sense for you once you don’t have kids living under your roof. Or you may decide to keep paying for a membership, and that could end up being a smart and cost-effective choice. Think about your needs and situation when making your decision.

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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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If summer camp is out of reach this year, you’ll need to find a summer activity for your kids. Read on for some less expensive alternatives. 

There’s a reason the summer months can be particularly expensive for working parents. When school’s not in session, many parents have no choice but to shell out massive amounts of money to cover the cost of summer camp.

The average cost of summer camp is an astounding $178.49 a day, according to the American Camp Association. If you need five days of camp for eight weeks, that means you’re looking at about $7,140 for the summer. And that cost is per child. If you have multiple children, you might easily deplete your savings account in the course of covering camp fees for a single summer.

Now, if every adult in your household works full time, you may have no choice but to shell out the money for summer camp for your kids. But if you have a flexible schedule, work part time, or have a parent in your household who doesn’t work at all, then you may have options for keeping your kids busy this summer that don’t result in such an outrageous credit card tab. Here are a few to look at.

1. Recreation programs through your town

Town-run recreation programs tend to be shorter than full-day camp, so they’re often not a good solution for people who work full time. But if you need a way to get your child out of the house for a few hours a day, or a few days a week, then a recreation program may be a good bet. The cost is likely to be far cheaper than full-day camp, so see what options your town has to offer.

2. A membership at a town pool or swim club

Some town pools give residents free access during the summer. Others charge a fee to join the local pool or swim club.

The downside of joining a pool or swim club is that you usually have to be there with your kids — you can’t just drop them off like you might be able to with a recreation program. So if you need a way to unload your kids for part of the day so you can work, this option may not be optimal. But if you simply need a way to keep your kids busy, you may find that this is an affordable route to take.

As an example, you can join the Holmdel swim club in Central New Jersey for $650 for the whole summer if you’re a resident of the town and get your pass early (if you waited, you’d pay $700). That fee covers your entire family. If you go twice a week for eight weeks, your cost is roughly $40 per visit, or $44 if you waited to join.

3. Season passes to an amusement park

As is the case with most pools or swim clubs, you can’t just drop your kids off at an amusement park, go back to your desk, and collect them a few hours later (unless, of course, they’re old enough to be able to wander a theme park alone). But if your goal isn’t to secure childcare, but rather, keep your kids happy and busy, then buying season passes to a local amusement park could be a good bet.

The cost of a daily pass to an amusement park can be very expensive. But often, the cost of a season pass is quite reasonable.

At Six Flags Great Adventure, a popular amusement park in New Jersey, a daily ticket costs $40, and it doesn’t include parking, which is a separate fee. A season pass, meanwhile, costs $90 and offers you unlimited access to the park when it’s open, plus free parking. So if you were to visit Great Adventure three times during the summer, your season pass would more than pay for itself.

It is possible to keep your kids entertained when school’s out for summer without completely busting your budget. Keep these ideas in mind if the idea of paying for summer camp is enough to send you into shock.

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As I was growing up, I watched my parents struggle with money. Keep reading to learn how I’ve avoided their errors to give myself a firmer financial footing. 

As I was growing up, I was able to watch how my parents dealt with their finances. While they always provided me with everything I needed, which I was grateful for, I also watched them make some money mistakes that were a point of stress.

As I observed some of the issues that arose because of their money management decisions, I vowed there were four mistakes I would never make with my own finances. Here’s what they are.

1. Not having enough insurance

One of the biggest mistakes my parents made was not having enough auto insurance. When I was about 13, my dad got into a car accident. He was rear-ended, which pushed his vehicle into the person in front of him.

Since he technically rear-ended the person in front, he ended up being held responsible for her losses. And the person who had hit him and started the whole chain of events did not have enough insurance coverage, so the driver of that front car went after my dad’s insurance to pay the bills.

The problem was, my dad did not have a ton of insurance either. But, he did have more personal assets than the driver who had put the chain of events in motion. There was a big risk that he would have ended up being held personally liable for some of the lead driver’s damages, which were pretty substantial.

In the end, the insurance company settled the claim for the policy limits and no further claims were made against my dad. But, it was a stressful period of time when he wasn’t sure if he was going to be personally sued and required to pay damages. To make sure this never happens to me, I have well above the required amount of liability insurance coverage so it’s very unlikely my assets would ever be at risk.

2. Refinancing their house multiple times to pay off debt

Another big mistake my parents made had to do with their mortgage loan. They ended up refinancing the house several times to pay off credit cards and other debts they had incurred. Because of this, they never really made much progress in paying off their home loan since they kept tapping into their equity.

When my dad went to sell his house after he retired, he was not even sure if he would get enough to pay off his current mortgage balance. Ultimately, he did, but he didn’t walk away with much extra cash for a home down payment on a new place.

To make sure I avoid this, I’ve committed not to take equity out of my home to fund a lifestyle I can’t really afford. I’m working on paying my mortgage down on schedule and I won’t borrow against my house for any reason.

3. Borrowing for things that don’t go up in value

My parents also tended to use their credit cards and take out loans for expenses like vacations. This meant they had monthly payments on different loans all the time, which in turn meant that they ended up having to borrow to fund other expenses.

This wasn’t something I wanted to do after I saw them stress about those credit card bills — especially when my dad lost his job and there were several months he didn’t work until he found a new one. I absolutely refuse to ever borrow for anything other than a house, starting a business, or other things that help me grow my net worth.

4. Always having a car payment

Finally, my parents always had car payments. My dad likes fancy, expensive cars and he still borrows to drive them. Once he’s paid off one loan, he ends up getting a new car shortly after.

I wasn’t interested in being stuck with car payments forever, so I keep my cars for as long as possible and save up to pay cash for new ones.

Ultimately, there are many ways to learn money lessons from parents — including observing what not to do. By learning from the mistakes my mom and dad made, I’ve been able to live a much more stable financial life.

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Sam’s Club is full of quality products at affordable prices. Get ideas for your shopping list with seven amazing Sam’s Club items that cost less than $50. 

Sam’s Club is known for having low prices without skimping on quality. You can find plenty of great deals at your local warehouse and online, which is why millions of people pay a membership fee to shop there. From a personal finance standpoint, it’s well worth the price of admission.

Since Sam’s Club has such a massive selection, it’s hard to stay on top of everything it offers. Here are seven of the best items you can currently find at Sam’s Club for under $50.

1. Member’s Mark 1-inch by 1-inch Cheesecake Minis: $17.48

There are lots of yummy snacks at Sam’s Club, but the Member’s Mark cheesecake minis are tough to beat. These are a favorite of frequent shoppers, and each box has three flavors made with real cream cheese: New York Style, Caramel Chocolate Chip, and Strawberry Swirl. They’re also easy to prepare, as all you need to do is thaw and serve them, so they’re perfect for parties.

2. Member’s Mark Fair Trade Certified Single-Serve Cups, Colombian Supremo (100-count): $27.98

For many of us, coffee isn’t just a drink, it’s a way of life. And if you’re serious about it, then getting good coffee is a must. These single-serve cups are made with real Colombian Arabica coffee, and they’re compatible with all single-serve machines. Most importantly, they get fantastic reviews, with over 5,000 customers giving them five stars. They also pair well with those cheesecake minis.

3. iHome PLAYGLOW Color Changing Bluetooth Speaker: $29.98

Summer is starting, which means more hanging out by the pool or in the backyard and more get-togethers with friends and family. Those are all times where it’s nice to have some music playing, ideally through something with better sound quality than the speakers on your phone. This iHome bluetooth speaker has excellent sound quality and bass, especially for its price. It also has five color changing modes, so it will fit right in at any summer party.

4. LapGear Pro Lap Desk: $27.98

They may be called “laptops,” but that doesn’t mean it’s all that comfortable to have one in your lap. This often involves sitting at awkward angles, trying to figure out where to put your wrists and elbows, and feeling your computer get uncomfortably hot if you run too many programs. A LapGear Pro lap desk makes it much easier to use your laptop from anywhere in your home. If you’re on your laptop often, and especially if you work from home, this makes a huge difference.

5. Member’s Mark Weekender Travel Bag: $49.98

If you’re planning to travel this summer, now is the time to make sure you have quality luggage. Fortunately, you don’t need to spend hundreds of dollars for that. This travel bag is sized just right for short trips and to serve as your carry-on luggage. It even comes with a separate bottom shoe department. It’s available in black, pink, and ivory, so you shouldn’t have any trouble finding a color that fits your style.

6. Member’s Mark Super Premium 2-Ply Select & Tear Paper Towels (15 rolls): $19.98

I know, I know. You’re probably wondering how paper towels can be considered an amazing buy. Counterpoint: There are few things more disappointing than lousy paper towels. If you’ve ever grabbed a pack at random, only to get home and find that the paper towels you just bought can absorb approximately four drops of water, you know the feeling. These Member’s Mark paper towels are thick and comparable with premium brands, at an affordable price.

7. Serta Forever Cool Pillow with Cooling Gel Memory Foam: $29.98

There’s no overstating the importance of getting quality sleep. People tend to focus on their mattresses, but don’t forget about your pillow, as that also plays a huge role in how comfortable you are. This Serta cool pillow is firm and provides ergonomic support. The cooling gel makes it a good choice if you get warm at night or if you live in a hot climate.

As you can see, you can score low prices on snacks, electronics, travel accessories, and much more at your local Sam’s Club. To save even more, make sure to pay with a rewards credit card. That way, you can earn cash back or travel points on your purchases.

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Credit card balances vary quite a bit by age. Check out the surprising statistics on the age group that carries the most credit card debt on average. 

Which age group has the highest average balance on its credit cards? Some would probably guess young adults who are new to credit and often more impulsive spenders. Or maybe those in their 40s or 50s, who tend to have higher incomes and more expenses. Both are good theories, but surprising as it may be, neither is correct.

The age group with the highest average credit card debt

Americans who are 75 and older have the highest average credit card debt, according to the Survey of Consumer Finances (SCF) by the Federal Reserve Board. They had an average balance of $8,078 as of 2019. That’s the most recent year when the Federal Reserve conducted the SCF.

Here’s the full data from that survey, including mean and median credit card balances for each each group:

With every age group, and especially 75 and older, there’s a substantial difference between mean and median credit card debt. That’s a sign the highest balances are outliers that are skewing the mean data upwards. When data is skewed like this, the median generally provides a more accurate representation of the true average.

While Americans 75 and older have the highest average credit card debt, it’s likely due to outliers with especially large balances. Their median credit card debt is $2,700, tied for second-lowest with several other age groups. It’s Americans from 45 to 54 who have the highest median credit card debt at $3,200.

What do to about credit card debt

Although many Americans have credit card debt, it’s something you should do your best to avoid. The average credit card APR is over 20%, so even a relatively small balance can cost you quite a bit in interest charges.

If you don’t have any credit card debt, keep it that way. Only spend what you can afford to pay back, and pay the full balance on your credit cards every month. By doing that, you’ll stay out of debt and avoid credit card interest.

If you’re carrying balances on your credit cards, aim to pay them off as quickly as possible. The faster you can do this, the less interest you’ll pay. One of the most effective ways to eliminate credit card debt is to simply pay as much as you can every month on your credit cards. However, there are also a few other tips that can help speed up the process.

Stop using your credit cards

Every purchase will add to your debt — and how much interest you’re paying. Stick to using your debit card and cash until you’ve paid off your credit card debt. You won’t be able to spend more than you can afford this way, and you’ll save on interest since you aren’t adding to your card balances.

Consolidate your credit card debt

Get a personal loan or a balance transfer credit card and use it to pay off your credit cards. This can save you money on interest and bring you down to one monthly payment. Here are some of the best debt consolidation options:

Debt consolidation loansBalance transfer credit cards

Tighten up your spending

See which of your bills you can cut back on or eliminate entirely. Once you’ve reduced your spending, put all the extra money you’ve freed up toward your credit card debt. If you’re having trouble finding places to cut back, look into budgeting apps that can give you a birds-eye view of your spending habits.

Middle-aged adults and seniors tend to have higher credit card balances, but it’s an issue that affects every age group. Fortunately, it’s also an issue that you can fix, and avoid going forward, with the right financial habits.

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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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