Money Management

Some families could receive more than $250 in emergency benefits. 

Millions of households received additional food benefits during the pandemic. The extra money helped low-income families keep food on the table during the uncertainty of lockdowns. It also went some way to cushion against the sky-high prices that followed, with Supplemental Nutrition Assistance Program (SNAP) households receiving at least $95 in extra benefits each month.

That extra money has now come to an end, and Feeding America says the change is putting additional pressure on food banks. Its Chief Government Relations Officer, Vince Hall said the end of emergency payments will “create hardship for many people — especially seniors, families with children and people with disabilities.”

Longer lines at food pantries and soup kitchens

With a network of over 200 food banks throughout the country, Feeding America describes itself as the largest hunger relief organization in the U.S. Food banks are centers that store and supply other food programs such as food pantries and soup kitchens.

Hall explained that food banks are already under “immense strain” because of the pressures of recent years. “Many continue to see demand for food assistance well above pre-pandemic levels while also facing continued supply chain disruptions, increased food purchase and transportation costs, and a decrease in the amount of food received from donations and from the federal government,” said Hall.

Along with other NGOs, Feeding America is braced for increased demand and longer lines as families feel the pinch. The emergency SNAP allotments had been issued on a state-by-state basis, and some states had already stopped making the extra payments. A federal law passed at the end of last year meant an end to all extra SNAP money nationwide.

According to the Center on Budget and Policy Priorities (CBPP), 35 states continued the extra payments until the end. According to the CBPP, ending those extra benefits could mean some families have significantly less in their bank accounts each month. “Every household in those states will receive at least $95 a month less,” it said. “Some households, who under regular SNAP rules receive low benefits because they have somewhat higher, but still modest incomes, will see reductions of $250 a month or more.”

How to handle a reduced food budget

It’s an understatement to say it isn’t easy if you’re struggling to feed yourself or your family. If you don’t have enough to eat, it impacts your physical and mental health as well as your children’s ability to learn. The end of the extra payments will come as a blow for a lot of households, especially if you can’t find ways to fill the hole in your budget.

Here are some ways to stretch your SNAP dollars further:

Look for ways to double up: There are several projects that get you two-for-one on produce at certain stores and farmers markets. The biggest is Double Up Food Bucks which gives you an extra dollar for every dollar you spend on produce. See what schemes operate near you to get healthy food that’s essentially half price.Use coupon and cash back apps: There are a couple of cash back apps that work with SNAP benefit payments, meaning you can get rewards on your grocery spending. If you’re not already an expert coupon-er, these are another good way to cut costs. Check out coupon apps or look for physical coupons in store.Find food pantries and soup kitchens: Food banks may be feeling the strain, but they are still a way to keep food on the table. Check out what programs operate near you and don’t be afraid to use more than one. Show up early and find out whether you’ll need to show ID or a proof of address.Look for additional assistance: If you’re pregnant or breastfeeding, or have young children or infants, you may be able to get extra food through the Women, Infants, and Children (WIC) nutrition program. Seniors over the age of 60 could be eligible for the Commodity Supplemental Food Program (CSFP). Also see if you can get help with other bills such as utility or rent.Buy in bulk: Bulk buying can be a great money saver, but it isn’t always feasible if you don’t have the cash upfront. See if you can split the cost and products with a friend or family member — that way you both save money.

If you aren’t sure how to feed yourself or your family, call United Way at 211 or the USDA National Hunger Hotline at 1-866-3-HUNGRY. United Way can connect you with local resources and give you information about other assistance programs.

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Here’s why Kirkland is Costco’s secret weapon! 

Kirkland Signature is the private label of Costco that brought in close to $60 billion in sales for the warehouse giant in 2021, about a quarter of its sales during its last fiscal year. Since its launch in 1995, Kirkland has expanded from 30 to 351 products. Named after the company’s original Washington State headquarters, Kirkland was created as an umbrella for Costco’s different private labels. Since then, it has become one of the most recognizable brands in the U.S.

But who makes these products? While some are made exclusively for Costco and sold under the Kirkland Signature label, many of them are actually made by name-brand manufacturers who also produce their own branded versions of the same product. These companies will often agree to produce an exclusive version for Costco that meets its strict standards for quality and price point. The only difference? The distinct black, red, and white label and packaging and a lower price. In fact, prices are typically 20% lower than comparative brands, helping you stay on budget.

Makers of Kirkland Signature products

Here are some of the confirmed nationally recognized brands behind Costco’s Kirkland Signature products.

Starbucks coffee: Several varieties of Kirkland Signature coffee are custom-roasted by Starbucks Coffee Company. In particular, they include the 2.5 pound Kirkland Signature Espresso Blend Coffee, Decaf House Blend Coffee, and Regular House Coffee. The price per pound for Kirkland’s Signature House Blend Coffee is $7.60. Costco also sells the 2.5 pound Starbucks French Roast Whole Bean Coffee at $10 per pound, so you’re saving quite a bit by buying the house brand.Diamond Naturals dog food: Kirkland Signature Dog Food is manufactured by Diamond Pet Foods, also known as Schell and Kampeter, Inc. The 20 lb. Kirkland Signature Small Formula Chicken & Vegetable Dog Food comes in at $34.99 or $1.75 a pound. In comparison Diamond Naturals’ Small & Medium Breed Puppy Formula Dry Dog Food goes for $2.00 a pound.Jelly Belly candy: Kirkland Signature Jelly Belly 64 oz. Variety Pack is $21.49, or $0.34 per ounce. In comparison, a 48 oz. container of Jelly Belly Assorted 50 Flavors Jelly Beans goes for $41.49, or $0.86 per ounce, more than double the cost of Costco’s label.Duracell batteries: In a 2016 interview with Atlanta station WSB-TV, Costco CEO Craig Jelinek revealed that Duracell is the manufacturer of Kirkland Signature Batteries. A 48-count package of Kirkland Signature AA Alkaline Batteries costs $16.49, or $0.34 per battery. Duracell AA batteries are sold on Costco’s website at $0.53 per battery.Chinet cups: Kirkland Signature Chinet 18 oz. Plastic Cups, Red, 240-count goes for $14.49, or $0.06 per cup. In comparison, a 36-count package of Chinet’s Crystal 14 oz. cups sells for $8.99, or $0.25 per cup.Bumble Bee tuna: Kirkland Signature’s Albacore Solid White Tuna is made by global seafood company Bumble Bee. Costco sells the 7 oz. 8-count for $19.99, or $0.36 per ounce, while the equivalent Bumble Bee product can cost as much as $0.49 per ounce.Huggies diapers: In a 2017 interview with the Wall Street Journal, Costco finance chief Richard Galanti confirmed that Huggies maker Kimberly-Clark is the manufacturer of Kirkland Signature Diapers. Costco sells its diapers for $0.18 per diaper and Costco sells Huggies for $0.24 per diaper.Reynolds aluminum foil: New Zealand’s Reynolds name is proudly displayed on the Kirkland packaging. The price per square foot for Costco’s heavy-duty brand is $0.05, compared to Reynolds at $0.07.

High quality and low prices

There are dozens more Kirkland Signature products made by the top national brands. Here are just a few more of them:

Green Mountain Coffee Keurig K-CupsOcean Spray cranberry juicePerrigo infant formulaNiagara bottled waterIto En green teaKader Exports shrimpAlexander Murray scotchH.K. Anderson peanut butter–filled pretzel nuggetsWarren motor oilIsigny Ste-Mère Brie

Many people assume that because it’s a house brand, Kirkland Signature is of lower quality than its name-brand competitors. In fact, many Kirkland products are just as good or even better than name brands in terms of quality and performance — but they cost significantly less. So next time you’re shopping at Costco, don’t forget to check out its house brands and see how much money you can save on your favorite products!

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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 positions in and recommends Costco Wholesale and Starbucks. The Motley Fool recommends the following options: short April 2023 $100 calls on Starbucks. The Motley Fool has a disclosure policy.

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I wasn’t happy with the large bill, either. 

During the summer of 2021, my downstairs air conditioner died during the hottest week of the year. And it cost many thousands of dollars to replace it with a new unit.

In the summer of 2022, the same thing happened to my upstairs air conditioner. Only by then, inflation had taken hold, so the cost of replacing it was even more expensive than it would’ve been a year prior.

These events made me gloriously unhappy. And the worst part? My homeowners insurance policy didn’t cover the cost of either issue.

To be fair, though, I wasn’t expecting my homeowners policy to pick up the tab. That’s because wear and tear is usually not an expense these policies will cover.

Know the rules of homeowners insurance

One main purpose of homeowners insurance is to cover you in the event of property damage. If a storm rolls in and takes out your roof, that sort of event might mean having your policy cover the cost of a replacement roof. But if your roof starts to naturally degrade over time, your homeowners insurance generally will not cover the cost of a replacement. That’s because in this case, it’s not that your roof has sustained damage — it’s that roofs don’t last forever.

Such was the case with my air conditioners. They didn’t give out on me as a result of damage to my home or a weather event. They gave out on me because these units are only designed to last about a decade or so before they start to deteriorate. (It would be nice if they lasted longer, but so it goes.) And so not surprisingly, my homeowners insurance company wouldn’t pay. In fact, I didn’t even bother to file a claim because I knew the work at hand wouldn’t be covered.

Have emergency savings, just in case

When you own a home, it’s important to recognize that a lot of things can go wrong that your homeowners insurance policy will not pay for. That’s why it’s super important to have a solid level of savings — ideally, enough to cover at least three months of essential bills plus a little extra in case something major in your home breaks.

In my situation, I thankfully had enough money in my savings account to cover the cost of both air conditioner replacements. And while I wasn’t happy about taking large withdrawals two years in a row, at least it prevented me from landing in debt.

But many people don’t have funds earmarked for emergency expenses. A recent SecureSave survey found that 67% of Americans don’t have enough money to cover an unplanned $400 expense. And trust me when I say that replacing an air conditioner costs a heck of a lot more than that.

Of course, not every home repair will cost thousands of dollars. Some might cost just a few hundred. But either way, it’s important to be prepared financially for those situations. And it’s also important to understand what your homeowners policy will and will not cover, so there’s no confusion on your part.

Our picks for best homeowners insurance companies

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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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With a stout emergency fund, you’ll be ready for anything. 

If you’re concerned about a possible recession, you’re not alone. Inflation, a volatile stock market, and high-profile bank collapses have many people worried that one could be on the way. A recession normally involves widespread layoffs, and it’s always scary to think you may lose your job.

The best way to be prepared for a recession is to have enough money in your emergency fund. Experts have traditionally recommended saving enough money to cover at least three to six months of living expenses. Some go even further and recommend saving a year’s worth.

Saving enough will give you more peace of mind, as you know you’ll have money to pay your bills in the event of a job loss. If you want to boost your emergency fund and feel more secure in your finances, here are some easy ways to do it.

1. Do a savings challenge

If you have a hard time saving as much as you’d like, gamifying it is a great solution. Savings challenges have been getting more popular, and there are lots of fun options, including:

A no-spend challenge: Only spend on necessities, and nothing else, for a set time period. A week is a good starting point, and if you like it, you can go for a full month.Eliminate an expense: Pick one of your discretionary expenses and get rid of it for a month. Dining out is a popular choice for this challenge, but anything that isn’t a necessity works. For example, you could cut streaming services and use free alternatives.Pantry challenge: Use everything you have at home before buying more groceries. You’ll save some money and reduce food waste.

2. Put your tax refund in your emergency savings

Not everyone gets a tax refund, but for those who do, it’s often one of the biggest financial boosts of the year. In 2022, the average tax refund was $3,039. If you get a tax refund and don’t have any other pressing needs, consider putting all or most of it in your emergency fund. You could have another month’s worth of living expenses from that alone.

3. Get a cash back credit card

A cash back card is one of the simplest ways to earn extra money, without much effort required on your part. Some of the best cash back credit cards earn 3% to 6% back in bonus categories, such as groceries and gas. There are also cards that earn a flat rate of 2% back on purchases, regardless of the spending category.

In addition, many cash back cards offer sign-up bonuses for new cardholders. For example, a card may offer a $200 bonus if you spend at least $500 in the first three months. If you’re going to spend that much anyway, a sign-up bonus is the closest thing to free money. You can deposit the cash back you earn in your bank account to increase your emergency fund.

4. Use a coupon app

Everyone likes the idea of saving money on their regular expenses, but not everyone likes clipping coupons. Fortunately, you don’t have to. With coupon apps, you can browse offers and save the ones you like on your phone. Depending on the app, you may be able to use coupons in stores, online, or both.

5. Open a new bank account

At first, a new bank account might not seem like something that’s going to help increase your emergency savings. But there are a couple of ways it can do just that:

A higher interest rate: While the average savings APY is currently 0.37%, many high-yield savings accounts offer 4% or more. That means if you have $10,000 in your emergency fund, an account with an average APY would earn you $37 per year, compared to $400 or more in a high-yield account.A bonus opportunity: Some banks have bonuses available for new clients that complete the requirements, such as meeting a deposit minimum. These bank account bonuses can be worth hundreds to thousands of dollars.

It’s important to have a strong emergency fund, especially during economic downturns. All of the tips above are easy to implement and can make a big difference in how much you have saved.

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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.
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The earlier you discuss finances with your partner, the better you can plan for a future together.  

Ah, marriage. That time in life when compromise becomes inevitable. Everything, from what you’re having for dinner to whether $3,000 is too much to spend on a Super Bowl ticket, is up for discussion. Marriage unites every aspect of two lives, including your finances. So, what happens when one partner enters the marriage carrying a boatload of debt?

Does your spouse’s debt become yours?

Let’s say you’ve never been comfortable with debt. When buying a car, you buy a used one to pay it off quickly. When you use a credit card to cover an expense, you pay the card off in full before the end of the billing cycle, so you’re not stuck with high-interest debt. In short, you’ve deliberately chosen to save and invest rather than borrow money to make purchases.

Let’s also assume that it’s your partner carrying the aforementioned boatload of debt. The amount they owe on their credit cards alone is scary enough to make your hair stand on end. If the idea of becoming responsible for that debt is enough to make you break out in hives, we have good news for you.

Any debt in your spouse’s name alone is theirs and theirs alone. You don’t take it on just because you’re married and you are not responsible for paying it back. And getting married changes nothing for your spouse. They’re still responsible for making payments.

Takeaway: Marriage does not make you responsible for the debt in your spouse’s name only.

Your credit score

Any debt solely in your partner’s name will not impact your credit score. Maybe your spouse is in over their head and skips a few monthly payments. Or they’re making payments on time but maxed out on all available credit, and their credit score takes a hit. The good news is that their financial behavior does not bleed over into your credit report.

The bad news is even if your credit report remains pristine, your spouse’s credit issues can bleed over into your life. Imagine that you both have great jobs, mortgage rates drop, and you decide it’s time to buy your first home. You need to earn enough money to qualify for a loan on your own, or else the mortgage lender will look at both of your credit histories, including the existing debt your spouse brought into the marriage.

If you and your spouse take on any credit together, including an auto loan or joint credit card, your credit report names your spouse as your “financial associate.” Once you are financial associates, creditors may want to pull both of your credit reports before finalizing a loan application.

You receive an excellent offer for a fee-free credit card with a low introductory interest rate. You apply for the card, but the issuer runs a credit check on you and your spouse. Depending on your spouse’s credit score, your application may be rejected, or the card company may offer you a card with a higher interest rate.

You may face two issues if your spouse is knee-deep in old debt: Their credit score may be too low to qualify for new credit, or their debt-to-income (DTI) ratio may be too high for comfort, and credible lenders won’t take a chance.

Takeaway: If you’re entering a marriage with a debt-laden spouse, work together to devise a plan to get rid of the debt as quickly as possible.

Joint account exception

Any debt in both of your names belongs to each of you. If you jointly take out a loan for new furniture, a belated honeymoon, or any other purpose, you’re both on the hook to pay it back.

Takeaway: Only sign a joint loan application with someone after digging into their financial situation. Being too embarrassed to find out about their credit history may come back to bite you.

Community property states

Your situation will be different if you live in one of these nine states.

ArizonaCaliforniaNevadaIdahoWashingtonNew MexicoTexasLouisianaWisconsin

Like any other state, you’re not responsible for a debt your spouse incurred before you were married. However, any obligation taken on by your spouse after the wedding is shared, even if you didn’t sign on as a joint account holder, is partly your responsibility.

If you’re marrying someone who loves to spend, be aware that their new debt becomes your shared responsibility. If your spouse fails to make payments, a creditor can go after your joint assets to cover the debt.

Takeaway: If you’re concerned about marital debt stacking up, you can formally opt out of the community property system by having a written premarital agreement drawn up.

Getting on the same page financially not only makes practical sense, but it may be one step toward making your life together more fun.

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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.
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Does your financial situation relate to any of these surprising statistics? 

From stimulus checks to pandemic uncertainty and sky-high living costs, Americans’ finances have been pulled in all directions in recent years. Now that the dust is starting to settle, some trends are starting to emerge. Check out these stats to find out how your financial situation compares.

1. 66% of Americans own their own homes

Home prices hit record highs last year, fueled by low mortgage rates and high demand. Even so, homeownership rates stood at 65.9% at the end of 2022, according to the Census Bureau. This figure has been fairly steady for the past few years, though it’s down from its 2004 peak of 69.2%.

Unfortunately, there are significant variations in homeownership rates by race. A report by the National Association of Realtors showed Black American homeownership rate is only 44%. Moreover, the 29% gap between homeownership rates in Black American and White households is higher than it’s been in a decade.

2. If they lost their income, 37% of households couldn’t last a month

According to the Consumer Financial Protection Bureau’s (CFPB) 2022 Making Ends Meet survey, almost 4 in 10 American families would not have enough money to see them through one month if they lost their main source of income. That means a lot of Americans don’t have enough money in their bank accounts to tide them over in a financial emergency. Indeed, 21% said they’d only be able to cover their costs for two weeks. On the upside, 27% said they’d be OK for more than six months.

3. Americans owe almost $17 trillion in total debt

The total consumer debt balance was a whopping $16.9 trillion at the end of 2022, according to data from the Federal Reserve Bank of New York. It has increased by $2.75 trillion since pre-pandemic figures at the end of 2019. This comes from an increase in mortgage balances, credit card debt, auto loans, and other types of borrowing. Experian put the average balance for each American at $101,915, with Generation X holding the highest total balances.

4. Americans’ average credit card balances are over $5,800

A recent report from TransUnion showed the average credit card debt in America was $5,805 per borrower at the end of 2022. This chimes with data from the Federal Reserve Bank of New York that recorded record high credit card debt. Total credit card balances increased $61 billion to $986 billion in the fourth quarter of 2022. This is 6% higher than the pre-pandemic high of $927 billion we saw in 2019.

Bear in mind that this figure represents credit card balances. It doesn’t distinguish between people who pay their card off at the end of each month and those who carry a balance over time. There’s also some good news: The New York Fed shows delinquency rates remain low, after they fell during the pandemic. There was a slight uptick of 0.6% in transition rates to early credit card delinquency.

5. The average American has $65,000 in retirement savings

According to the Federal Reserve’s 2019 Survey of Consumer Finances, the average American has $65,000 in a retirement account. There’s no set figure, but that $65,000 is unlikely to cover most people’s living expenses in their old age. Nearly two-thirds of Americans had some kind of retirement plan, though contributions vary wildly depending on earnings. Less than 40% of low-earners had money in a retirement account, compared with over 80% of upper-middle-income families.

Another interesting stat? There’s over $1.35 trillion sitting in forgotten retirement accounts. When people change jobs, sometimes they forget about their company’s 401(k). So much so that data from Capitalize shows that there are now over 24 million forgotten accounts. If one of them might be yours, start by searching through old paperwork to see if you can track it down.

6. Over 50% of households had either borrowed money from or lent it to friends and family

Over half (51.8%) of the households surveyed by the CFPB said they’d either given or received financial assistance from friends or family in the previous year. While 20% said they’d loaned money between two and four times, a surprising 8% had done so more than eight times.

Lending money to those you care about can be a difficult situation to navigate. If a loved one is struggling financially, the desire to help is both generous and understandable, but it can also strain your relationship. This is especially true if that money doesn’t get paid back, or the loan puts a financial strain on you. A good rule of thumb is to only lend money you can afford to lose.

Avoid becoming a statistic

Coming on the back of the stress of the pandemic, the soaring living costs we’ve seen recently put a lot of strain on many household budgets. Unfortunately, we all encounter bumps in the road at some point and it is worrying to see how many families don’t have an emergency fund. If you don’t have any cash put aside, you might have to take on debt or miss essential payments if your income takes a hit.

Look at what you spend versus what you earn and try to find some wiggle room. Perhaps there are areas where you can cut back your spending, even a little. Or is there a way you can bring in more by taking on a side hustle? If you can put even a small amount into your savings account each month, it will add up over time. That extra cash can make a big difference and stop you from becoming a statistic if things don’t go as expected.

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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.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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