Money Management

The infrastructure just isn’t there yet. 

These days, it’s not so uncommon to see your fair share of electric vehicles on the road. And if your car has seen better days, you may be thinking of buying an electric vehicle, or EV, when the time comes to replace it.

Now, one thing you should know is that EVs aren’t cheap. The average price of the top 10 electric vehicles in the U.S. is about $68,817, according to EV marketplace Find My Electric.

Within that, there’s a notable range of prices. And there are also tax credits available that can help offset the cost of an EV purchase. But since auto loan rates are up right now, financing an EV purchase could still end up being a more expensive prospect than you’ve bargained for.

Remember, too, that more expensive cars tend to be costlier to maintain. They can also be more expensive to buy auto insurance for. So if you’d rather steer clear of those hidden costs, you may want to forgo an EV for now.

Meanwhile, in my two-car household, one of our vehicles is starting to reach its end point. We’ve had it since 2007, so we’ve clearly gotten our money’s worth, but we plan to replace it as soon as car prices start to come down.

However, I can say with certainty that my next vehicle purchase will not be an EV. Here’s why.

An EV won’t suit my needs

When it comes to driving, I tend to go to extremes — meaning, I find that I’m usually either driving just a few miles around town, or I’m driving hundreds or thousands of miles on a road trip. It’s the latter habit that makes an EV a less-than-desirable choice.

Over the past 10 years, my family has taken countless road trips, some of which have had us clocking in 5,000 miles or more. Now, it’s one thing to charge your EV at night in your own driveway when you don’t need to use it until the next morning. But it’s another thing to have to stop numerous times on a lengthy road trip to charge your vehicle so you can keep chugging along. And that inconvenience alone makes an EV a poor choice for my family based on our driving habits.

Also, even if we were willing to stop and sit there every several hundred miles while our vehicle charged, the infrastructure isn’t there yet. My family likes to visit remote parts of the country to get off the beaten path. I’ve been in many parts of the U.S. where there’s only one gas station every 200 miles or so. I doubt we’re close to the point of seeing charging stations readily available in those areas.

Think carefully before buying an EV

The idea of an electric vehicle might appeal to you. But before you buy one, make sure one of these cars actually suits your lifestyle.

It may be nice to not have to fill up your car every week. But if you tend to take a lot of long road trips, and you tend to travel to relatively remote areas, then an EV could end up being more of a hassle.

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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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There’s a really good reason for it. 

Although filing taxes can be a stressful process, there’s often an upside — getting a refund. But this year, many filers aren’t seeing refunds at all. If anything, they’re looking at owing the IRS money for the first time in a long time, or ever. And that’s creating a world of financial upheaval for a lot of people.

Why more people owe the IRS money this year

In a recent interview, Mark Steber, Chief Tax Information Officer at Jackson Hewitt, said, “We’re seeing a big increase in balance due filers.” But Steber isn’t surprised by this trend in the slightest. In fact, he pretty much anticipated it even before the 2023 tax-filing season kicked off.

As Steber said, “We’re seeing the results of the expiration of the many pandemic benefits that were put into place in 2021.”

Here’s what he means. In 2021, many key tax credits got a sizable boost. The Child Tax Credit, for example, saw its maximum value rise from $2,000 per child to $3,000 per child aged 6 to 17, and $3,600 per child under 6. That was a huge bump. The credit also became fully refundable so that if an eligible filer owed the IRS no money before claiming it, they could still receive its entire value.

But those enhancements went away in 2022. So did enhancements to the Child and Dependent Care Credit and the Earned Income Tax Credit. So that explains why many people are not only not seeing tax refunds this year, but also, are looking at IRS debts.

Also, in 2021, the American Rescue Plan sent $1,400 stimulus checks into recipients’ bank accounts. Those who were eligible for that money but didn’t receive it in 2021 were able to claim it as part of their 2022 tax returns. But at this point, there aren’t really lingering stimulus funds to collect and use to offset tax liabilities, which also explains why filers are suddenly staring down IRS balances they’re not sure how they’ll cover.

What to do if you owe the IRS money

If you owe the IRS money but don’t have it on hand to cover your tax bill, don’t panic — but also, don’t ignore the problem. The good news is that the IRS will commonly let tax filers pay off their debts over time via installment arrangements. That won’t stop you from accruing interest on the money you owe the agency. But if you make your payments in a timely manner under one of these arrangements, the IRS won’t come after your wages to get repaid — whereas it might if you simply neglect your overdue tax bill and don’t reach out.

That said, Mark Steber noted that if you’re looking at having to write the IRS a large check, and you’ve done your taxes yourself, it could be worth it to hire a professional for another look. They may be able to find different deductions you didn’t know you were eligible for. And that could help whittle down your tax bill or even potentially eliminate it in full.

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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 can actually get rewarded for your purchases. 

If you’ve been hearing more about buy now, pay later plans, or BNPL plans, well, there’s a reason for it. Research from The Ascent from last year found that 50% of consumers use these plans, and 39% of those who never used one were likely to in the near future.

Now, it’s easy to see why BNPL plans appeal to so many consumers. These agreements let you pay for purchases in installments over a short period of time — usually 12 weeks or fewer. As long as you stick to the terms of your agreement, you won’t face interest charges or fees.

But I’m actually not a fan of BNPL plans at all — not for myself, and not for consumers in general. In fact, I actually think credit cards are a much better option than BNPL plans.

Why I prefer credit cards

When you finance purchases using a BNPL plan, you get the benefit of not incurring interest or fees as long as you make your payments on time. But you don’t get to rack up any cash back or rewards in the process.

When you charge expenses on your credit cards, you can get rewarded financially for everyday purchases like gas, groceries, and apparel. And that cash back can really add up. In fact, last year, I accrued more than $1,000 in cash back on the credit card I use the most.

You might argue that when you use credit cards, you face the possibility of racking up interest on your purchases if you don’t pay your bills in full. But if you’re someone who always pays their credit card bills in full by the time they’re due, then that won’t be an issue.

I also happen to think that BNPL plans give consumers a false sense of security when it comes to being able to afford purchases. The way I see it, if you’re looking to buy a $700 TV and you need to spread out your payments over three months because you can’t swing the full expense upfront, then you probably shouldn’t be buying a TV.

Rather, you should wait until you have that $700 on hand to cover the purchase. At that point, you can charge it on a credit card, get cash back or reward points on your $700 purchase, and then pay the bill in full once it comes due.

The one reason to use BNPL plans

If you have an emergency expense you need to cover right away — say, a new fridge because your current one just stopped working and can’t be fixed — then a BNPL plan could make sense. But even then, a credit card may be your better option because you get more time to pay off the purchase in question.

If a new fridge costs $1,500 and you can only afford to cover a small portion of it right now, you may not be able to finish paying it off in three months. And if you fall behind on your BNPL plan payments, you will face interest, fees, and credit score damage.

On the other hand, if you make your minimum credit card payments until your fridge is paid off in full, your credit score won’t take a hit. And yes, you’ll pay credit card interest in this scenario. But you’ll also face extra charges with a BNPL plan, so you may not be any worse off. If anything, you might be better off because you might manage to preserve your credit score and get some cash back on the purchase you had no choice but to make.

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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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Image source: Getty Images
What happenedWells Fargo users complained their paychecks had not reached their bank accounts on Friday, March 11. The bank assured customers their money was safe and said it was working to resolve the issue. According to Forbes, it posted the following message on its app: “If you see incorrect balances or missing transactions, this may be due to a technical issue and we apologize.”So whatThe Wells Fargo news came after a tumultuous week in banking. The sudden collapse of Silicon Valley Bank is the second-largest banking failure in U.S. history, and it prompted concerns of a broader banking crisis. One immediate problem for consumers is that some companies with money locked on SVB’s platform warned they may have to delay employee’s paychecks.
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It’s understandable that customers are nervous about both their paychecks and their bank deposits, no matter who they bank with. However, the issues at Wells Fargo do not appear to be connected to the SVB fallout. Moreover, President Biden has assured Americans, “The banking system is safe.” The Federal Reserve also announced it would make emergency funding available to ensure banks could stay solvent.Now whatWhatever bank you use, it’s important to track your deposits and payments. Whether it’s an individual issue on your account, a fraudulent payment, or a wider technical glitch, things can go wrong. Keep receipts, payslips, and other documentation in case you need to make a claim and try to log into your account regularly.If you are a Wells Fargo customer, check your account to make sure any deposits have arrived and your balance is correct. If there is any money missing, contact the bank straight away to report the problem. Know that the bank has also said it will return any fees you’ve been charged because of the missing deposits.More widely, you may be worried what’s happening in the banking industry could affect money you have deposited in a checking or savings account. The good news is that there are already a lot of protections in place for U.S. banking customers. Plus, the moves the government made over the weekend show it’s committed to protecting your money.One key protection is FDIC insurance, which covers deposits of up to $250,000 per person, per account. For the majority of consumers, this goes a long way to safeguarding their money.So now’s a good time to double check your bank is FDIC insured.Another of the concerns about SVB’s collapse was that it could impact companies with more than $250,000 in deposits, potentially stopping them from paying employees. Authorities are working to make sure this does not happen, but it is still worth taking steps to shore up your emergency fund. It’s good to have a cushion in case your paycheck does get delayed or you face another unexpected financial hitch.These savings accounts are FDIC insured and could earn you 13x your bankMany people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts can earn you 13x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2023.We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Wells Fargo 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 

What happened

Wells Fargo users complained their paychecks had not reached their bank accounts on Friday, March 11. The bank assured customers their money was safe and said it was working to resolve the issue. According to Forbes, it posted the following message on its app: “If you see incorrect balances or missing transactions, this may be due to a technical issue and we apologize.”

So what

The Wells Fargo news came after a tumultuous week in banking. The sudden collapse of Silicon Valley Bank is the second-largest banking failure in U.S. history, and it prompted concerns of a broader banking crisis. One immediate problem for consumers is that some companies with money locked on SVB’s platform warned they may have to delay employee’s paychecks.

It’s understandable that customers are nervous about both their paychecks and their bank deposits, no matter who they bank with. However, the issues at Wells Fargo do not appear to be connected to the SVB fallout. Moreover, President Biden has assured Americans, “The banking system is safe.” The Federal Reserve also announced it would make emergency funding available to ensure banks could stay solvent.

Now what

Whatever bank you use, it’s important to track your deposits and payments. Whether it’s an individual issue on your account, a fraudulent payment, or a wider technical glitch, things can go wrong. Keep receipts, payslips, and other documentation in case you need to make a claim and try to log into your account regularly.

If you are a Wells Fargo customer, check your account to make sure any deposits have arrived and your balance is correct. If there is any money missing, contact the bank straight away to report the problem. Know that the bank has also said it will return any fees you’ve been charged because of the missing deposits.

More widely, you may be worried what’s happening in the banking industry could affect money you have deposited in a checking or savings account. The good news is that there are already a lot of protections in place for U.S. banking customers. Plus, the moves the government made over the weekend show it’s committed to protecting your money.

One key protection is FDIC insurance, which covers deposits of up to $250,000 per person, per account. For the majority of consumers, this goes a long way to safeguarding their money.

So now’s a good time to double check your bank is FDIC insured.

Another of the concerns about SVB’s collapse was that it could impact companies with more than $250,000 in deposits, potentially stopping them from paying employees. Authorities are working to make sure this does not happen, but it is still worth taking steps to shore up your emergency fund. It’s good to have a cushion in case your paycheck does get delayed or you face another unexpected financial hitch.

These savings accounts are FDIC insured and could earn you 13x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts can earn you 13x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2023.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Wells Fargo 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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