Money Management

Nine times out of 10, free is better than new. 

Studies show that raising kids is expensive. In fact, data from the USDA says a child born in 2015 will cost more than $300,000 (in inflation-adjusted dollars) to raise.

But that’s just for the basics. Once you add in extracurriculars, holidays, vacations, college…well, you’re looking at quite a bit more. Have more than one kid? You’re going to have some multipliers.

Of course, adding on extra kids doesn’t necessarily double or triple the cost. That’s because you can often reuse certain products, like clothes and toys, for the second child that you bought new for the first.

It’s that same concept — scaled up — that’s behind this personal finance hack: parenting groups. Think of it as bringing the “it takes a village” idea to the modern stage.

Coming together

Our digital world is interconnected in astonishing ways, yet many of us feel less connected than ever. This can be especially hard for new parents who don’t have robust family support systems.

Instead of going it alone, consider forming or joining a parenting group. Maybe it’s a neighborhood-level group of parents from your block, or perhaps a group of parents from your child’s school or sports teams. You could even start as a few parents in a local social media forum.

It doesn’t matter how you form your group. The idea is to have a wide array of parents, with children across ages. The goal? To share. And I don’t mean feelings.

Alright, some feelings, because no one understands what you’re going through quite like other parents. But more than that: You’re sharing costs.

One parent’s trash…

Kids go through things faster than most people think. The whole idea of them growing overnight? Not quite as outlandish as it may sound. And when your child outgrows, well, everything, you’re left with two problems: buying new things — and storing old things.

A good parenting group can help with both of those problems.

Has your 6-year-old outgrown yet another pair of perfectly good shoes? Drop a note in your parenting group’s chat. Someone else with a 5-year-old is probably happy to take them off your hands. And their neighbor’s 7-year-old likely has a pair of shoes they’ve outgrown that’s just taking up space in the closet.

Win-win-win.

And this idea can extend far beyond shoes. Is your ever-growing offspring ready for a new sports season? Before you run out to buy all new gear, hit up your parenting group for gently-loved gear from last season. (Just avoid used helmets; they can lose effectiveness.)

Same thing with the mountains of toys your child now says are “for babies.” Great! I bet your parenting group has a few babies happy to have them. You can even turn it into a valuable life lesson in paying it forward by having your kids pack them up and be part of the pass-it-on process.

Many hands make light work

Don’t forget about the less tangible things that add extra costs to your child-raising budget. For example, getting a date-night babysitter can easily run you more than the date night itself. That is, it can if you aren’t swapping childcare duties amongst your parenting group.

Even if you have only a few families in your group, you can likely give everyone a night out at least once a month by trading babysitting responsibilities. And if you have a larger parenting group, you could potentially set up a schedule where everyone gets a night a week to do grown-up things, childfree.

You can pool costs and responsibilities for other things, too. For instance, there’s no reason every single parent on the team needs to drive their own vehicle to every away game. Set up a carpool schedule and a gas pool to keep costs down.

Used — not used up

If you buy into the marketing that’s shoved down our throats everyday, new is always better. But when it comes to kids, new is very rarely better — or even practical.

And in a world where we’re all just a few clicks away from everyone else, you don’t even need an old-fashioned family circle to enjoy the benefits of hand-me-downs. You can form a cooperative parenting group with friends, neighbors, and strangers alike. Indeed, the more folks you can bring into the fold, the more variety of items you can give and get.

Of course, make sure you’re always keeping safety in mind. Clean and sterilize anything that could be potentially hazardous. But within reason, there’s very little you have to buy new when you have parenting allies with whom you can share the load.

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 a disclosure policy.

 Read More 

Is it better or worse when our furry friends outlive us? 

The decision of whether to get life insurance — and how much to get — can be complicated. It can vary a lot based on your personal situation. Most importantly, it often comes down to whether or not you have dependents.

But while most of us think of a spouse and children in this context, there’s another kind of dependent that should also be considered: pets. After all, your pets will still need love and care even after you’re gone.

So, if someone has pets (of any kind — we’re not just talking about dogs and cats here), they should also have at least a small life insurance policy dedicated to taking care of them — and a will that designates their new caregivers.

Life insurance for pet care

Now that we’ve established that pet owners need some kind of life insurance, we have to tackle the question of how much. And the answer to this will depend entirely on the pets and on the type of lifestyle the owner expects them to have.

The first place a pet owner should look is their own bills. They should check their budget (or credit card statements) to see what they generally spend on pet care over the course of the year. Factor in all of their associated costs, including:

FoodMedicinesMedical carePet insuranceDaycare/boardingToys and treatsMaintenance items

Once the pet owner has an annual number, they can multiply that by the years thier pet is likely to live. In general, large dogs have shorter lifespans, while small dogs and cats can live much longer. It may be best to err on the side of a pet living longer so the funds last.

Pet owners may also want to investigate any potential issues their pet may have later in life. For example, a dog’s breed could be prone to certain illnesses that may be expensive to treat. It’s important to get an idea of what this may run, then add it to the total.

Don’t forget the will

Another important aspect of planning for a pet’s future is to ensure someone can care for them. It’s best to get this decided well before it’s needed.

Pet owners should make sure to discuss this with their friend or family member ahead of time. (It’s not a good idea to spring this on them in the reading of the will!) It may help to let them know plans are being made for a pet’s financial future so the furry family member won’t be a burden after the owner is gone.

If an owner only has a will, they’ll need to make peace with the idea that there’s only so much they can control about how their pets are treated after their death. Under the law, pets are generally considered to be property (yeah, I hate it, too!). As such, while pet owners can direct ownership of their pets, it may be hard to dictate specifics about how they’re treated.

Additionally, owners can’t generally leave property or money directly to their pet in their will. Instead, they can leave the money to their designated caregiver and request that those funds be used to care for the pets.

Alternatively, pet owners can look into setting up a trust for which a pet is the beneficiary. This can give owners a lot more control over what is done with their pets — and with the money set aside for them. Keep in mind that pet trusts are not valid in all states.

No matter which route you take, consider consulting a legal professional, particularly one who specializes in wills and trusts and/or estate planning. They will know your state’s laws and the best way to ensure your pets are cared for in the manner you would do so.

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.

 Read More 

If you can dream it, there’s a subreddit for it. 

One of the most amazing things that Amazon introduced us to way back when was the customer review. You could find dozens, even hundreds of reviews from real people who purchased the products, helping you make more informed purchasing decisions. This wasn’t just an evolution of shopping, but of personal finance, too.

Sadly, these days, the reviews you find on Amazon seem just as likely to be fake as not — or, often worse, they’re not even for the item in the listing at all. This, combined with the increasing prevalence of fake or counterfeit goods, has driven many shoppers, myself included, to other retailers.

But what about those reviews? Have we just stopped getting other’s opinions? Of course not. However, now, instead of trusting the reviews listed on retailer sites, I’ve found a new source of user feedback: Reddit.

Real reviews from (mostly) real people

Sure, it’s a well-known reality that social media is full of trolls and fake accounts — and Reddit is no exception. But it also has a huge number of enthusiastic people across hundreds of subreddits dedicated to everything under the sun. In my opinion, if you want real feedback about a product, you can’t do much better than asking about it in the right subreddit.

Want to know if those boots will last? A quick question in the r/hikinggear subreddit and you’ll get answers from folks who have really put them through their paces. Need to know if the backpack you’ve been eyeing will fit all your everyday necessities? The r/onebag community has probably already given it a try.

And the advice goes well beyond your typical retail items. Not sure if that new rewards credit card really fits your needs? Someone over at r/creditcards can probably give you the ins and outs of what it’s like to own it. Looking for feedback on a piece of design software before you buy? The folks in r/graphic_design will know all the bugs.

Find things you never knew existed

Reddit is also handy for more than just reviews. I’ve also been introduced to items I didn’t know about before — and now can’t live without. I’ve discovered new brands, new books, and even new products that I never would have found otherwise.

For example, I consider myself to be fairly well-versed when it comes to financial products. It’s my job, after all. But every once in a while, r/personalfinance still introduces me to a niche credit card or savings account I never knew existed.

And if you’ve ever thought, “I’m so sick of buying this thing again and again,” it may be a good idea to check out r/buyitforlife. If you can get past the dozens of posts about ancient cast iron pans, there are quite a few gems to be found.

The list goes on. If you can think it up, chances are good someone on Reddit can help you find it.

The proverbial grain of salt

As with anything else on the internet, you can’t take everything on Reddit at face value. There’s certainly going to be the usual crop of shills dropping fake reviews, and there are the requisite ads overplaying the virtues of this and that.

But so long as you have a bit of common sense — and take it all with the proverbial grain of salt — you can find a lot of really helpful folks, many of whom offer a good amount of genuinely useful advice.

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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Brittney Myers has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

 Read More 

Orthodontics can be expensive. But is a credit card the best way to pay? 

If you have a child who needs orthodontic work, or you require treatment yourself, you’re no doubt aware of how expensive it can be. In fact, Oral-B puts the average cost of metal braces at $3,000 to $7,000. And you might need treatment beyond that, such as retainers and palate expanders, that only add to your total tab.

Many people don’t have the money in their savings accounts to cover orthodontic treatment outright. And if that’s the boat you’re in, you may be thinking of putting your treatment, or your child’s, on a credit card. But before you do, it could pay to explore these alternative options.

1. A payment plan through your orthodontist

Some orthodontists will let you pay off your treatment over time without charging interest in the process. It’s worth seeing if your office makes this option available to patients.

2. A personal loan

A personal loan lets you borrow money for any purpose, so you can use your loan proceeds to cover the cost of braces. The upside of using a personal loan over a credit card is that you’ll generally get to borrow at a lower interest rate. Also, credit card interest can be variable, so your monthly payments have the potential to climb over time. Personal loans come with fixed interest rates, so your monthly payments are nice and predictable.

3. Your FSA or HSA

If you have money in a flexible spending account (FSA) or health savings account (HSA), then it pays to use those funds before racking up interest on a credit card balance. FSAs actually require you to spend down your balance every year (HSAs don’t), so there’s no reason not to use that money for orthodontic treatment if you have it available. And while there are benefits to leaving your HSA funds alone (namely, getting to grow your money by investing it), you’re better off taking an HSA withdrawal than accruing interest on a credit card balance.

Make sure to explore your options

The cost of orthodontic treatment can be significant — especially if you’re paying for it for more than one child at a time. A credit card might seem like your best means of covering that expense, but it could end up costing you a lot of money in interest. So it’s best to explore alternatives that cost you less.

Either way, before you pay for orthodontic treatment, make sure to explore your insurance benefits if you have dental coverage. Many dental insurance companies offer some coverage for braces and related treatment. It’s common to have a lifetime cap on treatment that may only cover a portion of your total costs — for example, a cap of $1,200 per patient. But you might as well get that benefit if you’re entitled to it.

You also shouldn’t hesitate to get a consultation with more than one orthodontist in your area. While the cost of treatment may not vary so much from one office to the next, you never know when a given orthodontist might offer a lower rate. And when you’re talking about spending thousands of dollars, shaving even a few hundred off of your total costs could go a long way.

Top credit card wipes out interest until 2024

If you have credit card debt, transferring it to this top balance transfer card secures you a 0% intro APR for up to 21 months! Plus, you’ll pay no annual fee. Those are just a few reasons why our experts rate this card as a top pick to help get control of your debt. Read our full review for free and apply in just 2 minutes.

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.

 Read More