Money Management

Here’s how to benefit even more if you shop at Kohl’s. 

As someone who tends to do most of her non-food shopping online, I can admit that I can’t remember the last time I stepped inside a Kohl’s. But last year, I found myself placing a couple of online orders for different purposes, and I have to say, I was impressed with the low prices I saw.

In fact, many of my friends (who may have more time or patience to shop in stores than I do) insist that Kohl’s commonly offers a host of great deals. So if you’re someone who likes the idea of that, then you may want to turn to Kohl’s for things like apparel and home goods.

But whether you’re a newer Kohl’s shopper or a seasoned one, you should know that a few key moves on your part could help you eke out extra savings. Here are a few to make soon if you plan to keep shopping at Kohl’s.

1. Get on the email list

I know you’re thinking — you probably don’t want even more spam flooding your inbox. But actually, signing up for the Kohl’s email list is an easy way to open the door to savings.

Just take it from me. I’m on the list, and I commonly get offers along the lines of 15% or 20% off of purchases, which can really be major money savers. And while it is a little annoying to be on yet another email list, a little filtering could help you manage your inbox and avoid getting overwhelmed.

2. Keep track of your Kohl’s Cash

During certain promotional periods, you’ll be eligible for Kohl’s Cash. If you shop at the store frequently enough, this could effectively be the same thing as actual cash — the kind you put in your bank account.

Now, the amount of Kohl’s Cash you can snag will depend on the promotion at hand. For my last eligible purchase, I got $10 for spending $50. But to be clear, I didn’t spend $50 to simply snag a free $10 at Kohl’s. Rather, I was buying gifts and my total credit card tab came to just over $50. So the $10 was basically like free money.

Now in the interest of full disclosure, I didn’t actually end up using my Kohl’s Cash. The reason? I didn’t have any Kohl’s purchases to make by the time it expired, and because online orders often incur a shipping charge, it wasn’t worth it to me to take time out of my day to haul over to Kohl’s and buy something random for $10.

But again, if you shop at Kohl’s more frequently, you’ll most likely manage to put your store cash to good use. Just make sure to keep track of when your cash expires.

3. Join Kohl’s Rewards

Kohl’s Rewards is a free loyalty program that could result in big savings. For one thing, you’ll earn 5% back on every Kohl’s purchase you make. You’ll also be eligible for a special birthday gift, which may be a discount code or store cash.

One thing you should know is that you’ll generally have 30 days to spend your Kohl’s Rewards cash. But that’s a pretty decent window of time to make the most of that money.

If you’re not familiar with Kohl’s, it could be worth it to head over to your local store and see what its inventory and prices look like. That said, if you’re like me and prefer online shopping, worry not. The website is loaded with inventory and is easy to navigate, so you can do your shopping at Kohl’s without having to leave the house.

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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 positions in Kohl’s. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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It’s not just a little white lie. 

Secret purchases. Debt that your partner doesn’t know about. Is the occasional lie about money really a big deal, or is it a good way to avoid arguments?

We know just how many people take this seriously, thanks to the Couples and Money Survey by Orion. Based on the results, a large portion of couples don’t just think financial dishonesty is an issue. They consider it a form of infidelity.

How couples feel about financial dishonesty

A whopping 49% of people agree with the statement that dishonesty about money is a form of infidelity, according to Orion. That includes 20% who strongly agreed and 29% who somewhat agreed. There were also 26% who neither agreed nor disagreed, 15% who somewhat disagreed, and 9% who strongly disagreed.

It’s clear that for many, financial infidelity is on par with cheating. Attitudes about this varied by generation, and it’s strongly correlated with age. Here’s the percentage who agreed with this statement in each generation:

61% of millennials51% of Generation X43% of baby boomers

Unfortunately, financial secrets aren’t all that uncommon in relationships. Orion found that 25% of respondents kept a purchase a secret from their partner for fear they might disapprove. In addition, 9% had debt their partner was unaware of.

Even though millennials are most likely to disapprove of lying about money, they’re also the most likely to do it. In fact, 43% of millennials had kept purchases secret, and 24% had debt their partner didn’t know about.

How to avoid financial dishonesty in your relationship

Whether you agree that lying about money counts as infidelity or not, it’s always something to avoid with your partner. It may seem worthwhile to avoid an argument, but the truth usually comes out eventually. When it does, that financial dishonesty is going to lead to ongoing trust issues. Your partner will question what else you’re lying about, and they won’t be sure if they can believe you going forward.

So, how can you avoid financial dishonesty in your relationship? There are a few steps you can take:

Promise not to be judgmental with each other. Partners often hide purchases and debt because they’re worried about what the other person will say. Make sure your relationship is a no-judgment zone.Set time aside to talk about money. Check in with each other about your financial goals and challenges regularly, ideally at least once per month. This way, money will be a normal subject to discuss in your relationship, and not something you only talk about when there’s a problem.Get the big things right, and don’t sweat the rest. What’s most important is that you and your partner can pay your bills and set aside a portion of your income for your savings and investing. If you’re both doing that, there’s no reason to worry about how either one of you chooses to spend their “fun money.”

Like many aspects of a relationship, being open and honest about personal finance requires both sides to do their part. You both need to commit to not lying about money, which includes not hiding anything from each other. For that to work, both partners also need to agree that they won’t judge or criticize each other about financial decisions. If you can do that, your relationship will be better off.

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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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Don’t just assume a standard home insurance policy takes care of everything. 

Expensive jewelry can be a great gift to pass onto heirs or a way to spice up a formal outfit, but its small size and high cost makes jewelry a favorite target of thieves. Many think that their homeowners insurance will cover any sort of jewelry loss or theft, but this isn’t always the case.

Below, we’ll look at what coverage a standard homeowners insurance policy provides for jewelry and how that stacks up to stand-alone jewelry insurance.

What coverage does a standard homeowners insurance provide for jewelry?

A typical homeowners insurance policy protects jewelry from covered perils, including house fires, storm damage, and theft. But most policies impose a $1,500 cap on jewelry payouts. This may not be enough for those who have expensive watches or heirloom jewelry worth thousands or tens of thousands of dollars.

And in actuality, the payout the homeowner would receive in the event of a jewelry claim would be less than $1,500, because the homeowner would have to pay some of the costs as their deductible. If the deductible is $1,000, the homeowner would only receive a $500 check for their lost or stolen jewelry, even if the actual value of the item was $20,000.

It’s also worth noting that a typical homeowners insurance policy doesn’t cover things like normal wear and tear or accidental loss or damage. Dropping an expensive ring down a sink drain or losing it in the ocean will leave the policyholder on the hook for the full replacement cost.

It could also increase homeowners insurance premiums in the future, just like filing a claim for any type of storm damage. So it’s not the best fit for those who want comprehensive jewelry coverage.

What coverage does a personal articles floater provide for jewelry?

Some home insurance companies enable homeowners to add a personal articles floater to their homeowners insurance policy. This increases the cap on how much the insurer will pay for jewelry that’s lost due to a covered peril or stolen. It may also expand the circumstances under which a loss is covered. For example, a personal articles floater could cover jewelry that’s accidentally lost, while a traditional homeowners insurance policy wouldn’t cover this.

The advantage to purchasing one of these policies is convenience. Homeowners can manage their jewelry and their home insurance coverage in one place and they won’t have to worry about juggling multiple deductibles. In fact, they may not pay a deductible at all for jewelry-related losses.

But often, insurers require those adding personal articles floaters to their policy to have each piece appraised in order to get an accurate assessment of its condition and value. Homeowners will likely have to pay for this out of their own pocket.

What coverage does a stand-alone jewelry insurance policy provide?

Stand-alone jewelry insurance policies are policies that specifically cover jewelry. They’re usually underwritten by specialty insurers.

These policies are generally more flexible than traditional homeowners insurance. They can cover jewelry up to much higher limits and it’s often possible to get coverage for accidental loss or even things like a broken necklace clasp. And since this policy is unaffiliated with homeowners insurance, there’s no risk of a claim raising premiums at the next policy period.

Jewelry insurance costs vary depending on the number of items being insured and their value. One popular underwriter, Jewelers Mutual, charges 1% to 2% of the jewelry’s value per year. So a $1,000 item would cost about $10 to $20 annually to insure. There’s also a no-deductible option for those who don’t want to pay anything out of pocket in the event of a claim.

Compare all the options

It doesn’t hurt to explore several of the options above before making a purchase. Just be sure to read the fine print and reach out to the insurer for clarification as necessary. And don’t forget to update the policy when adding more jewelry to the household’s collection.

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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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Would you get more money if the president’s plans went into effect? 

The federal government has not passed a bill providing stimulus money since the American Rescue Plan Act was signed into law in March of 2021.

The American Rescue Plan Act provided $1,400 direct payments to adults and dependents. In addition to putting this money in people’s bank accounts, it also provided parents with extra financial help in the form of an expanded Child Tax Credit.

Parents could potentially see this extra financial help come back again — at least if President Biden gets his wish. The president has made restoring the extra help to parents a top priority. And he’s not giving up on his efforts, as a recent tweet makes clear.

President Biden wants this stimulus relief back on the table

Biden recently released his proposed budget, which would reauthorize the expanded Child Tax Credit that was included in the American Rescue Plan Act.

This form of stimulus relief provided parents of young children with a $3,600 refundable tax credit (or $3,000 if their children were aged 6 to 17). The money was scheduled to be sent to parents at a rate of $250 or $300 per month.

Parents received the monthly payments from July to December of 2021 and were able to claim the other half of the money when filing their 2021 taxes in 2022. And the president’s hope was that this credit would be continued on an ongoing basis.

That has not happened yet, but the Biden administration is still trying hard to make an expanded credit a reality again for parents. The president included the expansion of the credit in his latest budget proposal and recently sent out a tweet explaining why he believes it is so important for parents to get this money.

“Thanks to the American Rescue Plan, the expanded Child Tax Credit cut child poverty in half and gave tens of millions of parents breathing room,” Biden explained. “My budget would restore it.”

While Biden has sent out many tweets addressing various economic issues, this is one of the few tweets that highlights a specific financial request in his budget plan. By sending out this tweet and explaining the monumental impact the expanded credit had, the president has made clear that the restoration of this credit is a top priority.

How an expanded Child Tax Credit could help you

If you are a parent or guardian of a child and the tax credit is extended, you could find yourself with hundreds of dollars more per month to assist you in covering expenses. If the credit was delivered the way it was structured under the American Rescue Plan Act, you could expect a steady stream of government money coming in and could adjust your budget accordingly.

It remains to be seen if the president will be able to make his proposed plan to bring back this credit a reality. With some bipartisan support for offering extra help to parents, there’s actually hope that this stimulus check will be back in some form in 2023 or beyond.

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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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Putting this much on your credit card could be costly. 

Credit card companies sometimes give out generous credit limits, especially to people with high incomes. And if you have enough credit, there’s nothing stopping you from spending a sizable amount on your credit cards.

You may be wondering what would happen if you went big and really took advantage of your credit limit. Or, more likely, if you ran into financial troubles and had to keep relying on your credit card for more and more expenses. To explain why carrying a large balance is so dangerous, let’s look at what happens if you spend more than $20,000 on your credit card.

You’ll have a hefty minimum payment

Each card issuer has a formula to calculate minimum payment amounts. Not all card issuers calculate minimum payment amounts the same way, but many do it by adding that month’s interest charges to 1% of your balance.

Let’s say you have a balance of $20,000, and your credit card’s APR is 20%, which is near the current average. If your card issuer uses the interest plus 1% calculation method, your minimum payment will be $533.33.

That’s quite a bit of money to pay for your credit card bill every month. And that’s how much you pay if you’re only making minimum payments, which isn’t recommended. Paying the minimum on your credit card is a bad idea no matter how much you owe, but it’s especially problematic with such a large balance because of what we’re about to go over next.

Interest charges will be through the roof

Credit cards typically have very high interest rates, and recent rate hikes have pushed them even higher. The current average credit card APR is just over 20%. That makes carrying a balance expensive, and it gets even more expensive when you spend $10,000 on your credit card, $20,000, or more.

Let’s go back to that earlier example, where you have a balance of $20,000 on a card with a 20% APR. For simplicity’s sake, we’ll say your balance stays about the same for the entire year. At the end of the year, you’ll have paid approximately $4,000 in interest.

That’s bad enough, but it’s worse if you only make minimum payments. If you do that, it will take you 35.6 years to pay off your credit card debt. During that time, you’ll pay $32,723 in interest.

The exception to the rule on credit card interest rates is 0% APR credit cards. These offer a 0% APR on purchases for an introductory period. If you know you’ll need to spend a lot of money, consider opening one of these credit cards to avoid interest charges.

Your credit score will most likely take a hit

Your credit score is based largely on how you manage your credit cards and loans. Carrying significant credit card balances is considered a high-risk behavior, so it can lower your credit score.

To be specific, credit scoring systems divide your credit card balances by your credit limits. This is known as your credit utilization ratio, and it’s better for your credit score to keep this below about 30%. For example, if you have one card with a credit limit of $25,000, you should keep the balance below $7,500. That way, you’re not using 30% or more of your credit limit.

On the other hand, if you have a $20,000 balance and a $25,000 credit limit, your credit utilization is 80%. When your credit utilization is that high, it can have a big negative impact on your credit score.

If you plan to spend it all at once, your card issuer may contact you

For most people, ending up with a $20,000-plus credit card balance takes a while. It’s normally the result of getting deeper and deeper into debt. But it could also be from one very large purchase.

This may set off your card issuer’s fraud protections. If so, the issuer will call, text, or email you to confirm that the transaction is legitimate. It might also block the transaction on the first attempt so it can get your confirmation before allowing such a big purchase to go through. After you verify that you’re the one who attempted the purchase, you can try it again, and it should work without issue.

When you have over $20,000 on your credit card, that’s usually a financial emergency, unless you can repay it all at once. If not, look into how to pay off large amounts of credit card debt. You’ll also likely want to check out balance transfer credit cards that you can use to refinance your debt at a 0% intro APR. It will take time, but a debt payment strategy can help you get on track and start making progress.

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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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