Money Management

Do you have any of these? 

There’s a lot to consider when deciding who to spend your life with. You want someone you feel safe with and who shares some of your interests. But you also want to make sure you’re compatible and able to tackle tough challenges when they arise. This is especially important when it comes to sharing financial responsibilities.

Everyone has their own personal money philosophy, and small differences between significant others are OK — even beneficial. But certain financial behaviors and attitudes could scare off prospective partners. Here are three of the biggest financial red flags, according to a recent Bread Financial survey of single adults.

1. A gambling problem

A gambling problem was the hands-down biggest issue for singles, with 67% listing this as a financial deal breaker. It’s not too difficult to understand why. People with gambling addictions can rack up significant debts, and their partners may not be aware of their behavior right away. This can pose serious problems for financial planning and saving for long-term goals.

A gambling problem, like any addiction, isn’t easy to overcome, but it’s well worth the effort. The National Council on Problem Gambling is a great place to begin if you think you might have a problem. You can also reach out to family and friends for support.

2. Paying the minimum amount on a credit card bill

About 35% of singles admitted to being wary of partners who only paid the minimum balance on their credit card each month. Doing this likely means you’ll carry a balance, and this will accrue interest over time. Credit card interest rates are high, especially for those with poor credit. Some have annual percentage rates (APRs) of 30% or more, which could add hundreds of dollars to your balance each year.

It can be difficult to get out of the cycle of credit card debt once you get into it, particularly if you continue to charge new purchases to the card each month. As your debt grows, you may find it more difficult to save for your long-term goals and you might have a more difficult time borrowing money in the future.

Lenders look at your credit utilization ratio — how much of your available credit you’re using each month — when calculating your credit score. Using a lot of your credit limit tells lenders you may be living beyond your means. Because of this, they might be reluctant to lend to you or charge you higher interest rates.

If you have credit card debt, make repayment a top priority. Note your balance and interest rate on each card. Then, after making the minimum payment on all cards to avoid late fees, put all your extra cash on the card with the highest interest rate first. When that’s paid off, move onto the card with the next-highest interest rate. You could also try a balance transfer credit card instead. Once your debt is all paid off, try to pay your balances in full each month.

3. Large impulse purchases

Everyone is guilty of making an impulse purchase once in a while. When they’re infrequent and small, they’re not a big deal. But making large impulse purchases can make it difficult to budget and save for long-term goals. This is probably why 31% of singles listed it as a major red flag in a partner.

Adhering to a budget can help reduce impulse purchases. After paying your essential bills, dedicate a portion of your leftover cash to savings and a portion to spending on whatever you like. If you’d like to make a large purchase, save up for it over the course of several months rather than buying it immediately.

When you and your partner are managing finances jointly, you’ll have to agree on how to best handle discretionary purchases. You might each allow yourself a certain dollar amount you can spend each month without consulting your partner. Or you might agree that you need your partner’s approval for purchases over a certain dollar amount.

As with any aspect of your relationship, good communication about money is key. If you have any concerns about your partner’s money habits, address them. And if they have any concerns about yours, try to be open and work toward a solution that suits both of you.

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 

Image source: Getty Images
What happenedOn March 7, Federal Reserve Chair Jerome Powell told the Senate Banking Committee that the central bank is prepared to raise interest rates at a more aggressive pace this year if economic data continues to point to rising inflation. In January, the Consumer Price Index (CPI) showed a 0.5% increase in inflation from December. And if February’s CPI data doesn’t point to the opposite trend, the Fed may have no choice but to take action.So whatIn 2022, the Federal Reserve raised interest rates seven times in an effort to combat inflation. Four of those rate hikes were 0.75% jumps, which is considered highly aggressive.In February 2023, the Fed implemented a less aggressive 0.25% rate hike in anticipation of cooling inflation. But the next rate hike that comes through might far surpass the 0.25% mark if the Fed doesn’t see a near-term sign that inflation is slowing down.“The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” Powell said. “If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.”All told, the Fed would like to see the annual rate of inflation dip down to around the 2% mark. As of January, it was at 6.4%. That’s an improvement from the 9.1% annual inflation reading seen in June. But it’s still not where the Fed wants it to be.Now whatThe Fed’s 2022 interest rate hikes have already driven up the cost of borrowing. These days, consumers are looking at higher rates for everything from mortgages to auto loans to personal loans.If the Fed continues to raise interest rates, the cost of borrowing is only likely to increase. That could put a strain on consumers’ budgets at a time when inflation is already making it difficult to cover expenses.Plus, rising interest rates are a dangerous thing for consumers with variable-interest debt, such as those with credit card and HELOC balances. As interest rates rise broadly, these debts could end up costing consumers even more money in the course of the year.Aggressive interest rates on the part of the Fed in 2023 might also be enough to fuel a major pullback in consumer spending. The Fed wants that to happen so inflation can slow down. But if it happens to too extreme a degree, it could end up spurring a broad economic recession. And that could lead to an uptick in joblessness and the many financial problems that tend to stem from that.Alert: highest cash back card we’ve seen now has 0% intro APR until 2024If 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 reviewWe’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. 

What happened

On March 7, Federal Reserve Chair Jerome Powell told the Senate Banking Committee that the central bank is prepared to raise interest rates at a more aggressive pace this year if economic data continues to point to rising inflation. In January, the Consumer Price Index (CPI) showed a 0.5% increase in inflation from December. And if February’s CPI data doesn’t point to the opposite trend, the Fed may have no choice but to take action.

So what

In 2022, the Federal Reserve raised interest rates seven times in an effort to combat inflation. Four of those rate hikes were 0.75% jumps, which is considered highly aggressive.

In February 2023, the Fed implemented a less aggressive 0.25% rate hike in anticipation of cooling inflation. But the next rate hike that comes through might far surpass the 0.25% mark if the Fed doesn’t see a near-term sign that inflation is slowing down.

“The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” Powell said. “If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.”

All told, the Fed would like to see the annual rate of inflation dip down to around the 2% mark. As of January, it was at 6.4%. That’s an improvement from the 9.1% annual inflation reading seen in June. But it’s still not where the Fed wants it to be.

Now what

The Fed’s 2022 interest rate hikes have already driven up the cost of borrowing. These days, consumers are looking at higher rates for everything from mortgages to auto loans to personal loans.

If the Fed continues to raise interest rates, the cost of borrowing is only likely to increase. That could put a strain on consumers’ budgets at a time when inflation is already making it difficult to cover expenses.

Plus, rising interest rates are a dangerous thing for consumers with variable-interest debt, such as those with credit card and HELOC balances. As interest rates rise broadly, these debts could end up costing consumers even more money in the course of the year.

Aggressive interest rates on the part of the Fed in 2023 might also be enough to fuel a major pullback in consumer spending. The Fed wants that to happen so inflation can slow down. But if it happens to too extreme a degree, it could end up spurring a broad economic recession. And that could lead to an uptick in joblessness and the many financial problems that tend to stem from that.

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 

You can cancel it, but your credit score may change. 

Rewards credit cards allow consumers to earn rewards by using their credit cards. Plus, many card issuers have generous sign-up bonus offers to attract new customers. These bonus offers can make for a quick way to earn many points or miles if you meet the minimum spend requirements. But should you continue to use your card after you earn the sign-up bonus?

A sign-up bonus can be a win for your wallet

Some of the best credit cards have attractive sign-up bonus offers. Eligible new cardholders who meet the minimum spending requirements can earn the bonus. It’s not uncommon for credit card reward enthusiasts to open a new credit card because of a sign-up bonus offer.

Earning a sign-up bonus can put you much closer to your redemption goals. Whether you’re looking to book a free flight for an upcoming vacation or hope to get cash back as a statement credit to lower your credit card bill, earning a bonus offer can be a big win for your wallet.

Consider the value of the card benefits

What should you do after you earn a sign-up bonus? Should you keep the card in your wallet but stop using it, or should you get rid of it for good? If you’re unsure if you should continue using a particular credit card, it’s a good idea to consider the value you’re getting from it.

Does the annual fee fit your budget? Are you using most of the benefits offered? Are you able to earn rewards with your usual spending habits? Does the card make your life better? Asking yourself these questions can help determine if you should continue to use the card. Not every credit card is a good fit for everyone, and that’s okay. There are plenty of other card options.

Don’t rush to cancel your credit card

Yes, you can stop using a credit card if it’s no longer meeting your needs, but closing a newly opened credit card account can have consequences. The length of your credit history is one of several factors that makes up your FICO® Score. A lengthy credit history shows you know how to manage credit and may help you increase your credit score.

Before you rush to cancel a credit card, consider how that choice could impact your credit score. If your credit card no longer provides you value but doesn’t charge an annual fee, you may want to keep it in your wallet for a year or two and remember to use it occasionally, so the account remains active. Doing this can help you improve your credit score.

What if the card has an annual fee that is too costly? If your current card has an annual fee, you can ask the credit card issuer to downgrade your card to a no annual fee credit card. Doing this can save you money by eliminating the yearly fee and allowing you to keep your existing account open — which looks good on your credit report.

Do pay attention to your credit score

Your credit score matters and can impact your future, so don’t forget to consider how your everyday financial choices will affect your score. Want to make wise credit card moves? Paying your entire credit card balance (not just the minimum amount due), paying your bills on time every month, and maintaining a lengthy credit history are some actions you can take to improve your credit score and set yourself up for financial success.

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 

It’s an interesting combination, to say the least. 

Starbucks is known for its unique coffee flavors and blends. From its holiday inspired Peppermint Mocha to its classic fall Pumpkin Spice Latte, the coffee chain commonly infuses different flavors into its products — and consumers generally seem to take pretty well to them.

But now, Starbucks is introducing a line of coffee made with extra virgin olive oil. (Yes, you read that correctly.) And whether it’s a hit or not is really anyone’s guess.

A winning combination, or a major bust?

Olive oil is said to offer health benefits. Starbucks is clearly eager to capitalize on that by introducing its Oleato, or olive oil, line.

The new olive oil products will first hit stores in Italy but roll out to California in the spring. The line includes an Oleato latte with oat milk and olive oil, an Oleato ice shaken espresso with oat milk, hazelnut, and olive oil, and an Oleato golden foam cold brew.

The combination of coffee and olive oil is certainly interesting, to say the least. But whether it ends up tempting customers is yet to be determined.

On the one hand, olive oil is known as a healthy fat. On the other hand, diet-conscious consumers may not want a spoonful of fat in their coffee.

And then there’s the taste itself to consider. Olive oil has a distinct one. So does coffee. When you put the two together, the results may not appeal to everyone the same way a pump of cinnamon-nutmeg spice wows customers every fall.

A more cost-effective way to get your share of olive oil

Olive-oil-infused coffee might be good for your health. But given Starbucks’ price points, repeated trips to your local coffee shop could lead to quite the hefty credit card tab at the end of the month. And if money is tight, or you’re trying to boost your savings account, then buying Starbucks coffee is something you should probably do pretty sparingly.

The good news, though, is that it’s easy enough to add more olive oil into your diet without putting it in your coffee. All you need to do is seek out recipes that feature it. You can saute vegetables in olive oil, dress your pasta in olive oil, or drizzle olive oil onto a salad in lieu of store-bought dressing that’s loaded with sugar, sodium, or both.

And if you’re looking to save money on olive oil itself, see if your local Costco has it in bulk. While olive oil doesn’t have an unlimited shelf life, if you decide you’ll cook with it regularly, you’re likely to use up your supply well before it goes bad on you.

All told, you might really enjoy a Starbucks coffee with olive oil once that option hits your local market. But if the idea of combining olive oil with your morning dose of caffeine doesn’t sit well with you, there are plenty of other steps you can take to incorporate more olive oil into your diet — and without stretching your budget to afford those costly Starbucks drinks.

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.Maurie Backman has no position in any of the stocks mentioned. 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.

 Read More