Money Management

You don’t want to make this move too soon. 

There’s no denying the benefits of having a partner to help shoulder your rent or mortgage payment. Together, you may be able to afford nicer living accommodations than you could on your own or free up more of your monthly income to spend on things you enjoy.

But moving in together is a big step, and there’s more than finances you need to consider. Rushing in could lead to major problems down the road. Nearly 42% of people who moved in with a romantic partner later regretted it, according to a Realtor.com survey. If you don’t want to wind up in that situation, make sure you do the following before handing over the keys to your partner.

How to know if your partner is roommate material

The most common reasons people regretted moving in with their partners, according to the Realtor.com survey, were because the relationship didn’t work out or they realized upon moving in that their lifestyles weren’t compatible. When couples in this situation break up, the process of moving out and dividing the household goods can just add extra stress to an already difficult situation.

That’s why it’s generally a good idea to hold off on moving in together until you feel pretty confident that you and your partner are going to be together for the long term. You also want to feel good about your ability to handle conflicts or clashing habits respectfully, as these issues can be common among new roommates.

Even better, you may want to do a test run before you actually move in together. Have your partner stay over for a weekend or even a week to see how the two of you get along while sharing the same space. If any issues arise, talk about them and see if you can come up with a solution that works for both of you.

Alternatives to moving in with a romantic partner

Don’t rush to move in with a romantic partner if you don’t feel ready. If it’s the right relationship to cohabitate, you will always have that option down the road. In the meantime, there are other ways to ease the strain on your wallet if you’re struggling to keep up with your rent or mortgage payments. Here are three things to try.

Seek out more affordable housing

If your rent or mortgage payment takes up more than 28% of your monthly income, it might be worth looking for more affordable options. This could mean moving to a smaller home or to a more affordable neighborhood.

Before you do this, though, make sure the move will actually save you money. If it takes you far from your place of employment, for example, you may have to spend more on transportation to get to and from work every day. It might not be worth it if you’re only saving a few dollars per month on housing.

Look for a roommate

A romantic partner isn’t your only option for a roommate. If you have friends in the area, you might consider moving in with one of them. Then, if in a year or two, you’re feeling better about moving in with your partner, you can do so.

But the same general rules apply when vetting any potential roommate. Think about how compatible the two of you are and make sure you are comfortable addressing problems as they arise.

Consider offering a short-term rental if you’re rarely home

If you’re already spending a lot of time at your significant other’s place but aren’t ready to fully commit to living together, you might consider renting out your home or apartment on a short-term basis through a service like Airbnb. This way, if things don’t work out with you and your partner, you have a place of your own to return to. You might also be able to turn this into a nice side hustle if you live in an area that people frequently travel to.

Before you do this, though, you should weigh the potential consequences. Some landlords don’t permit this, so you could be in violation of your lease by subletting your apartment. You also open yourself up to liability if the renters cause damage. Make sure you have the appropriate renters or homeowners insurance coverage to protect you from the worst-case scenario.

Ultimately, if you see a future with your romantic partner, you probably will want to move in together at some point. But rushing it could just damage your relationship. Give yourself the time you need to make sure it’s the right decision before you take that next step.

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Despite Ramsey’s advice, your teen will be better off if you add them to your credit card. 

The idea of giving a teenager a credit card is hotly debated. Anyone who’s familiar with Dave Ramsey won’t be surprised with his opinion on the subject. The finance personality recently wrote, “Your teenager does NOT need a credit card,” and many of his followers strongly agreed.

It’s understandable to be nervous about putting your teen on your credit card account. Maybe the first thing that comes to mind is getting stuck with a massive bill if they go on a spending spree. Or, you just might not be sure that using credit cards will instill the right financial values in them.

But the teen years are actually a great time to get your child started with credit, by making them an authorized user on your credit card account. With your guidance, your teen will benefit in a big way. Here’s why.

You can teach your teen how to safely use credit cards

Right now, whether your teen gets a credit card is entirely up to you. In a few short years, that won’t be the case. Once they’re an adult earning an income, they can apply for a credit card on their own.

Unfortunately, many young adults who get credit cards don’t know much about them. Most schools don’t teach how credit cards work, so people learn as they go. That can lead to some costly learning experiences. For example, here are some common mistakes your child, or anyone, could make with their first credit card:

They might only pay the minimum. This seems logical enough if you’re new to credit, and especially if you’re young and on a tight budget — why not just pay the smallest amount you can get away with? But you pay much more overall in interest because of how long it takes to pay off a credit card this way.They might forget about their bill and make a late payment. Once a credit card is 30 days or more past due, it can cause a severe drop in the cardholder’s credit score. This is something that can take years to fix.They might max out their credit card. Again, this seems logical at first. If a credit card company will give you a $5,000 credit limit, what’s wrong with spending $5,000? Young adults don’t always realize that maxing out a credit card can damage their credit score and make it hard to pay off what they owe.

This stage of life is a golden opportunity to teach your teen about credit. They’re old enough to understand credit, but you still have control over how they use it.

If you add them as an authorized user, they’ll have a card in their name that’s tied to your account. You can show them how to use it and explain the importance of only spending what they can afford to repay. You’ll also be able to monitor their spending and if necessary, lock their card from both your online account and banking app.

Starting early will help build your teen’s credit score

By giving your teen a credit card, they’ll also get a head start on building their credit score. You may be wondering — does my teen really need a credit score? Not yet, but they will. A credit score is a measure of a person’s creditworthiness, and there are all kinds of ways it affects your life. Here are a few examples:

Most rental applications require a credit check. When your teen is ready to move out and get their own place, landlords will check their credit as part of the application process.It can affect insurance rates. In most states, insurance companies can use credit scores to set rates. The cost of car insurance is over twice as much for drivers with poor credit compared to drivers with excellent credit.It’s a key part of buying a home. Mortgage lenders look at an applicant’s credit when deciding whether to approve them and when setting interest rates.Utilities companies and other service providers run credit checks. Utilities, cell phone service, and internet service are some common expenses that often require a credit check. Customers with low credit scores may need to pay a security deposit to receive service.

Simply put, a high credit score makes life easier. A low score, or no score at all, can be a hassle. Your child could have a harder time renting an apartment or getting their own cell phone plan, and they’ll possibly pay higher insurance rates.

Now, one of the most important factors in building credit is time. A credit score is based in large part on how long a person has been using credit and if they have a history of on-time payments. This normally works against young adults, who have limited credit histories, but that’s where you can help.

If you add your teen to your credit card, all the account activity gets reported to their credit file. That means if you pay the bill on time, it counts as an on-time payment for them, too. While most young adults need to start from scratch with credit, by the time your child is 18, they could already have years of credit history contributing to their score.

As a parent, you want to put your child in the best position to succeed. Giving them an early education on credit helps with that. They’ll know how to handle credit from a young age, and they’ll also build their credit score. Those are both major financial advantages they’ll take into adulthood.

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That’s not good news at all. 

There’s been a pretty substantial shortage of vehicles on the market these last few years. And any time you have a situation where there’s not enough supply of a given item to meet consumer demand, its price has a tendency to rise.

The average car price as of late 2022 was close to $45,000 for non-luxury vehicles, according to Kelley Blue Book. And so not surprisingly, auto loans have been on the rise. And equally not surprising is the fact that many consumers are having trouble keeping up with those higher payments.

Auto loan delinquency rates are climbing

For many Americans, car payments are now more than $1,000 per month. And while a lot of people might have a lower payment to cover, consumers are still struggling.

In a recent tweet, financial expert Graham Stephan said that 9.3% of auto loans extended to people with low credit scores were 30 or more days behind on payments. That’s the highest delinquency rate since 2010.

Now, it’s not just higher car prices that are making auto loans more expensive. The Federal Reserve has been raising interest rates in an effort to slow the pace of inflation. As such, these days, it costs more money to take out just about any sort of loan, whether it’s a personal loan, a home equity loan, or a loan to finance a vehicle purchase.

But expensive auto loan payments can put a strain on your budget. And if you fall behind on your auto loan payments, the consequences can be quite severe.

When you can’t keep up with your car payments

Any time you fall behind on loan payments, you risk being reported as delinquent to the credit bureaus. And once that happens, your credit score could take a large hit.

From there, it could become more difficult to borrow money when you need to do so. And even if you do manage to get approved for a loan, you might get stuck with an exorbitantly high interest rate on it.

What’s more, if you fall too far behind on your auto loan payments, you could risk having your vehicle repossessed. That could, in turn, compromise your ability to hold down a job, thereby propelling you into a very unfavorable financial cycle.

It’s best to get ahead of a situation where you can’t pay your car loan. If that’s the case, reach out to your lender and see if there’s an arrangement that can be worked out.

In some cases, if you can prove that a temporary hardship has had an impact on your finances, you may get the option to pause your loan payments, or make lower payments for a period of time. It always pays to see what options are available to you.

If your lender isn’t able to work with you, one thing you may need to do is sell your car and purchase a replacement vehicle that’s a lot less expensive. You may even need to get creative and see if you can go without a vehicle for a while if your financial situation has taken a turn for the worse and there’s really no car out there you can afford. That could mean taking the bus to work, despite it being less convenient, or turning to your social network and asking for help with rides for a few months.

Falling behind on an auto loan isn’t a good thing. A good way to avoid that fate is to try to make sure you’re buying a car you can afford in the first place. But if you’re already in a situation where you’re struggling to keep up with your auto loan, do your best to talk to your lender before you reach the point where you’ve missed a payment.

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Small and scrappy wins the race. 

For most of us, our pets are part of the family. So treat them like family by ensuring they’re properly insured. Pet insurance is the health insurance equivalent for our furry family, providing important coverage for major health issues and medical emergencies.

Just like human health insurance, how much you pay for pet insurance will vary based on your particular pets. For dogs, one of the biggest factors in the price of your monthly pet insurance premium is their breed.

When it comes to purebred dogs, smaller is typically better in terms of pet insurance costs. But you could save even more by adopting a scrappy mixed-breed pup. Here are some of the least-expensive pups to insure.

1. Mixed-breed dogs

If you have your heart set on getting that little rescue mutt from the shelter, then you’re in luck. A mixed-breed dog will typically come without some of the more pervasive health concerns of their purebred counterparts. This means they’re also generally cheaper to insure than purebred dogs. Choose a smaller dog with parents from healthier breeds to cut costs even more.

2. Chihuahuas

One of the smallest dog breeds — they typically weigh a meager 3 lbs to 6 lbs — Chihuahuas are one of the cheapest purebred dogs to insure. Though prone to a few size-related and genetic health issues, Chihuahuas are a fairly healthy breed when fed and exercised properly, and this helps keep monthly insurance costs low.

3. Jack Russell Terriers

Despite a handful of health concerns that stem from being a purebred dog, the Jack Russell is a generally hardy pup that can have a long, healthy life. As such, they’re a relatively inexpensive breed to insure, with monthly rates as low as $1 a day. What’s more, these energetic dogs are also one of the least expensive breeds to own overall thanks to their smaller frames and low-maintenance coats.

4. Yorkshire Terriers

Yorkies, as they are affectionately known, are another compact and affordable breed to insure thanks to their relative good health. Though prone to a few medical issues common in smaller breeds, Yorkies can live well over a decade. One thing to note is that Yorkies require regular grooming to stay in peak health, so factor that into your overall cost expectations.

5. English Springer Spaniels

If you’re looking for a mid-sized pup, the English Springer Spaniel may be a good choice. These hardy dogs are very affordable to insure thanks to generally good health and long lifespans. That said, Spaniels on the larger side can be prone to a few issues uncommon to smaller dogs, such as hip dysplasia, which may increase insurance costs.

Breed is only part of the equation

The smaller breeds of dogs may have a lower monthly insurance cost, but don’t let that sway you if your heart is set on that larger breed of dog. Although the monthly cost is lower, the smaller breeds outlive their larger canine counterparts. That adds up to more monthly payments overall.

If you want to save a few bucks on the cost of your pet’s insurance, take a tip from your auto policy. Paying your policy annually can save over monthly installments. Also, just like there are multi-car discounts, those with many pets can look for multi-pet discounts.

Additionally, regardless of your dog’s breed and insurance plan, make sure you also have a dedicated pet emergency fund. Most pet insurance plans require you to pay for services upfront, then submit a claim for reimbursement. Having a couple grand set aside for unexpected pet costs can make a huge difference to your peace of mind.

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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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