Money Management

Is your teen starting college soon? Don’t forget to teach them financial skills first. Find out why getting a credit card now could be a good teaching tool. 

Unfortunately, many young people rack up debt quickly because they don’t know how to use credit cards responsibly. If your teen is headed off to college soon, now is the perfect time to educate them on careful credit card usage. This can help them develop good financial habits before adulthood.

While some parents may think having their college-aged kids get a credit card is risky, it can be a great learning experience that sets them up for success. Here are a few things to teach your high schooler about credit cards before they go off to college.

1. Don’t overspend

Teaching your teen the importance of using their credit cards only to buy what they can afford is a must. Many people use credit cards to purchase things they want regardless of how much money they have, which can quickly lead to an expensive credit card debt problem. Learning budgeting skills now will set your teen up for life.

2. Pay more than the minimum amount due

Another way to set your teen up for success is to teach them to pay their entire card balance. Credit card issuers list a minimum amount due, and it can be tempting to pay the lower amount rather than the entire balance. But to avoid accruing credit card interest, paying the card off in full every month is a must. Your child will appreciate that you taught them how credit card interest works and how to avoid interest charges, which can drain their checking account balance.

3. Don’t miss any payments

You can also teach your teen the importance of paying their bills on time. One major factor that makes up a credit score is payment history. If your teen forgets to pay their credit card bill or makes a late payment, their credit card issuer will charge a late fee.

If a payment is made more than 30 days late, your teen may get a negative mark on their credit report, which could harm their credit score. If you think your college-bound kiddo will be too forgetful to stay on top of their bills, consider having them set up automatic payments.

4. Pay attention to credit usage

It can be helpful for your teen to monitor their credit card usage. Their first credit card will likely have a lower credit limit, making it even more essential that they know not to use up too much of their available credit. Credit utilization ratio, or how much available credit is used, makes up 30% of your FICO® Score. It’s recommended that consumers keep their credit utilization ratio below 30%. You can teach your teen how to calculate this ratio so they can make more informed spending decisions.

5. Be aware of credit card fees

Your teen should also take time to learn about credit card fees. Some credit cards have an annual fee. However, there are credit cards with no annual fee. But other fees may be charged, depending on credit usage. Your teen can avoid late fees, cash advance fees, foreign transaction fees, and credit card interest if they take the proper steps. Teaching your child to be aware of these potential fees and how to avoid them can help them save money.

Don’t ignore credit cards, but do offer education

Credit cards are a solid personal finance tool. While learning to use them responsibly takes practice, credit cards can offer many benefits. By getting a credit card before college, your child can learn money management skills and can take steps to establish credit early in life. To learn more, check our list of the best credit cards for young adults.

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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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Small business grants help up-and-coming business leaders obtain seed money. Learn which grants are designed for minority entrepreneurs. 

A small business grant is a form of seed money that helps business owners lift their enterprises off the ground. Because grants come with no strings attached, grant programs see a high volume of applicants each year, which can make getting one of these highly sought after prizes difficult to win.

Competition is fierce but numerous programs have started narrowing the playing field by offering grant money to business leaders in minority groups, who have been traditionally underrepresented as grant winners. To be sure, the competition for these grants can still be neck-in-neck, but if you’re a minority business owner, here are five programs to consider.

1. Comcast RISE

What it is: A small business grant that supports diversity inclusion and community involvement.

How much grant money it gives: $5,000 to 500 recipients.

What you need to qualify:

An independently owned business with 100 or fewer full-time employees.A business that has been established for three or more years.Residence in one of the following cities: Baltimore, Detroit, Memphis, Philadelphia, or Portland.

Deadline to apply: June 30, 2023.

Where to apply: Online

2. Coalition to Back Black Businesses

What it is: A multi-year initiative to help Black small business owners recover from COVID-19 and establish a vibrant presence in economically distressed communities.

How much grant money it gives: $5,000, with an opportunity to receive $25,000 the following summer.

What you need to qualify: A Black-owned business with 3-20 employees located in economically at-risk communities.

Deadline to apply: The deadline for the 2023-24 cycle has not been announced. Last year, applications opened in late August and closed in early September.

Where to apply: Check the Back Black Businesses homepage for more details.

3. First Nations Development Institute Grants

What it is: Grant-making program that has awarded over 2,700 grants totaling more than $54.7 million to Native American projects and organizations.

How much grant money it gives: Each grant offers a different sum. For perspective, a recent program gave out $40,000 to roughly a dozen California-based tribal organizations and tribal-controlled nonprofits.

What you need to qualify: Check the requirements under each grant. Typically, your organization or nonprofit has to be majority Native owned (51% or more), but other qualifications may apply.

Where to apply: Since the institute offers numerous grants throughout the year, the best way to apply is to sign up to its mailing list and wait for an applicable grant period to start.

4. National Black MBA Association Scale-Up Pitch Challenge

What it is: A pitch competition for members of the National Black MBA Association.

How much grant money it gives: $50,000 for 1st place, $10,000 grant for 2nd, $7,500 for 3rd, and $1,000 for People’s Choice.

What you need to qualify: A startup that has a minimum 33% Black-ownership with at least one founder being an active member of the National Black MBA association.

Deadline to apply: The deadline for 2023 has not been announced.

Where to apply: When the 2023 application process begins, you can apply on the NBMBAA homepage.

5. Fast Break for Small Businesses

What it is: A partnership among LegalZoom, NBA, the WNBA, and the NBA G League to support Black-owned businesses and Black-identifying entrepreneurs.

How much grant money it gives: $10,000 to 50 recipients.

What you need to qualify: A Black-owned business (at least 51%) that’s been in operation for six months and has annual business revenue under $1 million.

Deadline to apply: The deadline for 2023 has already passed.

Where to apply: Check Legal Zoom’s Fast Break page in early 2024 for next year’s application.

Where else can you find grant money?

You can apply for grants from federal institutions, like Grants.gov and the USDA grant. You can also join the National Association for the Self-Employed (NASE) and apply for its grants. But even if the deadline has passed for the grants mentioned above, check again next year. Many of these are ongoing, and you could apply for them in 2024.

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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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Health insurance is an important workplace benefit to offer. Read on for tips on finding the right plan for your business. 

As a small business owner, you’re no doubt aware that it’s important to not only attract solid talent, but do what you can to retain talented employees. And a good way to do that is to make sure you’re offering a nice benefits package. That package might include a retirement savings plan you help contribute to, paid vacation time, and health insurance.

Now, you should know that if you run a business with fewer than 50 full-time employees, you’re technically not required to provide health insurance. But that doesn’t mean you shouldn’t.

Healthcare can be an astronomical expense in the absence of insurance. And even if you’re willing to raise salaries in lieu of providing insurance, you may find that prospective employees are turned off by the prospect of having to go out and purchase health coverage themselves.

Of course, choosing a health plan for your business isn’t exactly an easy thing to do. Here are some tips for navigating the process.

1. Decide how much you’re willing and able to spend

Within the realm of small business health insurance, there’s a range of plans. As you might imagine, costlier plans tend to offer superior coverage, while those that are less expensive don’t offer as much to participants.

It’s important to be realistic about how much you can afford to spend on health insurance. As a smaller operation, you can’t benefit from the bulk rates a company with 12,000 employees might snag. So you’ll need to take a look at your banking records and see what’s realistic, keeping in mind that you’ll likely be picking up a large share of those premium costs.

2. Figure out if you want a high-deductible insurance plan

High-deductible health insurance plans can be burdensome for participants — especially those with family members who tend to get sick often. But the costs for these plans can be more reasonable, as plans with higher deductibles tend to come with lower premiums. That’s something to keep in mind if you’ll be covering those premiums at 100%.

Also, if you offer a high-deductible plan, it may allow you to offer a health savings account in conjunction with that plan. That could make it easier for your employees to cover their medical costs while reaping tax savings.

3. Consider partnering up with an insurance broker

As a small business owner, you may not be all that well-versed on health insurance options. But it’s the job of an insurance broker to walk you through your options and do research on your behalf, so you can focus on running your business. Not only might an insurance broker help you find the right plan, but they can generally help you get set up so you don’t find yourself lost in a sea of paperwork.

Whether a health insurance plan is something you’re looking to offer because it’s a requirement or because it’s a benefit you want to provide, it’s important to find the best plan for your company. Take your time in making that decision so you and your employees wind up happy with 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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You may want to own a home. But is now the right time to buy? Read on to find out. 

Owning a home has numerous benefits. For one thing, you get to build equity in a place of your own. You also get to set your own rules, as opposed to having to follow a landlord’s directives.

Want a giant dog who sheds all over the place? That’s your call. Want bright blue shutters you can see from a block away? Unless you’re buying a home in an HOA that prohibits them, that’s your choice to make.

But while homeownership has its perks, it’s important to buy a home at the right time. Interestingly enough, a good 39% of respondents from TD Bank’s First-Time Homebuyer Pulse think now is a good time to buy a home. But here’s why they may be mistaken.

Low inventory is still a challenge

As of the end of April, there was only a 2.9-month supply of homes on the market, according to the National Association of Realtors. Normally, it can take a good 6-month supply of homes for there to be enough inventory to meet buyer demand.

A lack of housing inventory could mean that it becomes a struggle to find a home that meets your needs. And it could mean losing out on negotiating power.

When real estate inventory is sparse, sellers know they have the upper hand. That gives them the leeway to command higher prices for their homes and refuse to accept a lower offer. It also allows sellers to get away with making fewer repairs prior to listing their homes, leaving you, as a buyer, stuck with a property that isn’t in the best shape.

Higher mortgage rates could be a problem

Although home prices have come down a bit this year compared to last due to diminishing buyer demand, any savings you might enjoy there is apt to be offset by higher mortgage rates. Even if you come in as a borrower with outstanding credit, you may find that it costs more money than you bargained for to sign a mortgage loan. And the last thing you want is to buy a home that’s a financial stretch for you right from the start.

You may not want to buy a home this year

Although almost 40% of first-time home buyers are convinced that housing market conditions are pretty favorable right now, the reality is that 2023 is generally not a great time to buy a home. That doesn’t mean that buying is the wrong decision for you. But for the typical buyer, waiting could pay off.

If housing inventory opens up in 2024, homes might get less expensive. Even if mortgage rates don’t drop next year, buyers might still get relief in the form of lower prices.

Of course, if you’ve been saving to buy a home for years and you’re frustrated with renting, then by all means, buy a home this year if you can find one that’s truly affordable for you. But if you end up waiting, don’t assume you’ve missed out on a prime opportunity. If anything, waiting could open the door to an even better opportunity in the coming year.

Our picks for the best credit cards

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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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Most single moms don’t have life insurance. Read on to see how you can secure affordable coverage. 

Being a single parent is challenging on multiple levels. Not only are you solely responsible for your child’s care, but you may have to juggle work and parenting responsibilities without any sort of help or backup.

The number of single-mother households in the U.S. has increased by 40% since 1980, according to the Census Bureau. But only 41% of single mothers have life insurance, which is a lower percentage than the general population, according to data from LIMRA.

Of course, a big reason so many single moms are going without life insurance likely boils down to the cost. Thanks to the ever-present gender pay gap, women are still generally earning less money than their male counterparts. And it’s easy to see how lower incomes might force women — especially single mothers — to have to cut corners.

But if you’re a single mother, it’s extremely important that you put life insurance in place. Without coverage, it’s hard to say what might happen to your child or children in your absence. And if cost has been a barrier to securing life insurance, there’s one option worth looking at.

A more affordable option

Life insurance comes in different varieties. If you buy whole life insurance, you’ll be covered on a permanent basis, and your policy will, in time, accumulate a cash value. That cash value is something you might be able to tap or borrow against down the line.

But despite that benefit, whole life insurance presents a really big challenge — it’s extremely expensive. Term life insurance, on the other hand, tends to come with much lower premium costs. And there’s a reason for that.

Term life insurance won’t cover you on a permanent basis like whole life insurance. Rather, you’ll get coverage for a specific number of years. You also won’t see your term life insurance policy accumulate a cash value. If you don’t pass away while your coverage is in place, you won’t get a payout from your insurance company.

Still, if you’re a single mother on a tight budget, term life insurance could not only be a better choice, but your only financially feasible choice. And you’re better off buying some amount of coverage than not having any.

What’s more, you may find that term life insurance more than meets your needs. Let’s say you have a child who’s 5 years old, and you’re looking for a way to protect them through young adulthood. If you were to buy a 20-year term life insurance policy, you’d get coverage through your child’s 25th birthday. At that point, it’s reasonable to assume that they’d be able to go out and get a full-time job to be self-sufficient.

Don’t go without coverage

As a single parent, you may be used to having to cover 100% of the cost of raising a child. But if you were to pass away, it means your child risks losing 100% of their financial support. And so it’s really important to put a life insurance policy in place if you have a dependent who doesn’t have another parent to rely on.

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.

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Costco sells items in bulk, which may not seem like a good deal for two people. Learn how Costco can save a family of two a lot of money. 

An annual Costco Gold Star membership costs $60 and lets you and one other person shop at Costco warehouses. Buying in bulk means spending more money upfront but paying slightly less per unit: the difference, say, between paying $0.37 per egg at Costco versus $0.41 at a chain grocery store.

But if your family is two people — plus maybe a cat — does it really save you money to buy in bulk? Does it make sense, for instance, to buy 24 eggs and save $0.03 per egg when all you really needed was 12?

Yes, I think it still could. Costco offers more than groceries, and even if you don’t consume a lot of food, you could earn more than that $60 back in savings. Here’s how Costco can help your personal finances even if your family consists of two people.

1. Get your tires installed

The Costco Tire Center sells tires at competitive retail prices. Even when Costco’s tires are the same or slightly higher than other popular tire shops — like Tire Rack and Walmart — its installation prices are usually cheaper. Plus, you can save significantly if you buy tires during one of Costco’s promotions. For instance, in May, Costco was offering $150 off Michelin tires when you bought a set of four. For certain sets, that could have meant buying four tires for roughly the price of three.

2. Buy a smartphone

Costco also sells smartphones at great prices. It also waives the $35 activation fee that other phone companies charge, and it gives you 90 days to return the phone, while phone shops only give you 14 to 30 days. But, similar to its tires, the trick to save money is to buy a phone during a promotional period. For instance, this past January, Costco gave out $150 Shop Cards for buying a T-Mobile phone and activating a new line on an eligible carrier.

3. Shop for clothes

Costco’s clothes are inexpensive and made with sturdy materials. Most of its clothes are on par or priced lower than comparable items on Amazon, and the fact that you can buy some in bulk — like socks — can translate into saving money per unit. If you’re skeptical you can find good clothes a few feet from a crate of avocados, trust me — Kirkland Signature has fashionable items and the branded clothes (like Levi’s and Calvin Klein) are also reasonably priced.

4. Take care of your eyes

Costco Optical is a one-stop shop for all your eyecare needs. You can have your eyes examined, fill a prescription from an optometrist, buy contact solution, and choose new glasses from a decent selection. Plus, the prices are very low. For instance, a 90-pack of 1-day Acuvue contacts from Costco costs $56.87 where I live, whereas the same product in a 30-pack costs $41.86 from Walmart.

5. Buy paper products and cleaning supplies

You might not get much value buying perishables in bulk, like apples. But items like toilet paper, paper towels, toothpaste, detergent, dish soap, and other cleaning supplies can be purchased in large quantities and stored in your home. As long as you have storage for these — that could be another problem — Costco can save frequent trips to the grocery store for toiletries you know you need.

6. Get small kitchen appliances

You don’t have to buy items in bulk to take advantage of Costco’s lower prices. Many of its small kitchen appliances, such as food processors, blenders, electric kettles, and air fryers are sold at prices lower than Amazon and Target. For instance a Ninja 10-quart 6-in-1 air fryer (with double baskets) sells for $179.95 on Amazon. Costco sells the same air fryer for $129.99.

7. Shop for non-perishable groceries

Finally, let’s not overlook Costco’s greatest savings opportunity for a family of two — buying groceries. Costco can help you save on non-perishables, like rice, canned beans, pop, trail mix, granola bars, among so many others. You can also buy perishables like chicken and fish and freeze them for longer periods.

At the end of the day, it’s up to you to decide if your two-person family can save on a Costco membership. But hey, if you decide the Costco membership isn’t right for you, you can trade in your membership badge for a full refund, no questions asked.

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

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