Money Management

Lower-income pregnant women and moms can ease financial stress by using programs like WIC. 

The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) is a valuable resource. The program helps low-income pregnant, breastfeeding, and postpartum women and infants and children up to age 5 with nutritional risks. Participants can use WIC benefits to purchase eligible food and drink items from participating stores.

WIC helps struggling women and their children

For many low-income households, it’s a challenge to afford everyday living costs — even more so now as prices are higher due to rampant inflation. When you have children, your expenses can quickly become more costly, and staying afloat can be a struggle.

WIC is a valuable resource for many women and their children. Using program benefits to buy eligible supplemental items for their families can allow women to stretch the dollars in their checking accounts to afford other costly living expenses.

Eight items you may not realize are WIC-eligible

WIC covers eligible supplemental foods and beverages. Some may know that the program covers items like milk and baby formula. Here are a few other items that you may not realize can be purchased using WIC benefits:

Breakfast cerealCanned fishPeanut butterTofuYogurtJuiceWhole wheat bread and other whole-grain itemsFruits and vegetables

Note: There are specific rules for each eligible item to ensure they meet set nutritional requirements. For example, not every canned fish on the grocery store shelf is WIC-eligible. The U.S. The Department of Agriculture outlines these requirements, so reviewing these requirements is recommended if you’re new to the WIC program.

Five tips to get the most out of WIC

If you’re new to WIC or are thinking about applying for benefits, the following tips may help you get the most out of the program.

Use mobile apps: If you’re struggling to remember what items are eligible, you may want to use an app to stay on track. Apps like WICShopper allow users to scan barcodes as they shop to ensure they choose WIC-eligible items.Look for WIC stickers: Many stores that accept WIC benefits mark eligible items with stickers. You may notice a small sticker near the price tag that indicates if an item is WIC-eligible. These stickers can make it easier to shop.Shop at farmers’ markets: In addition to regular WIC benefits, participants in most states also receive WIC Farmers’ Market Nutrition Program (FMNP) coupons. You can use these coupons to buy eligible items from farmers’ markets that partner with FMNP.Use free nutritional counseling services: Participants can access nutrition counseling for free. This resource can help you improve your nutrition knowledge and help you better plan meals to get the most out of your benefits.Get breastfeeding support: WIC participants can also get breastfeeding support for free. This valuable resource can help you better navigate your breastfeeding journey.

Don’t be afraid to use resources like this

If you’re pregnant or are a mother struggling financially, don’t be afraid to use resources like WIC. This program can help eligible women feel less financial stress as they care for their kids. Reach out to your local WIC agency to learn more or apply for benefits. Using resources that are available to you can help you improve your personal finance situation.

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Read this advice before you go to Aldi for your next shopping trip. 

If you’re an Aldi shopper, chances are good that you go to this discount grocery store because it allows you to spend less on food and keep more money in your bank account.

But there may be another important reason to visit Aldi on a regular basis — at least according to some Reddit users.

Make sure you hit up this aisle on your next Aldi trip

For some Aldi fans, the so-called “Aisle of Shame,” is one of the greatest features the store offers — and it’s an aisle that’s not to be missed.

“Do not skip this aisle,” an Aldi fan commented in a Reddit post asking about the Aisle of Shame. “There is surely going to be something you never realized you needed until you strolled down this aisle. If you see something you may think you want, but want to think about it – DO NOT THINK ABOUT IT – BUY IT! It may not be there on your next trip. It is definitely a fun aisle to peruse.”

So, what is in this aisle exactly? As another Redditor explained, this aisle is, “A forever cycling of random items: candles, socks, a greenhouse, a sewing machine, a cat house, rain boots, a toilet paper holder, yoga mat, inflatable halloween displays, bed sheets, pillows, air fryers.”

This aisle is found in the center of most Aldi stores. Its contents rotate weekly, and it offers a huge variety of different merchandise, including both edible and non-edible products. These items are usually deeply discounted and available only while supplies last, so if you see something at a great price, you’ll want to follow the suggestion of the Redditors and jump on it quickly before it’s gone.

Should you shop the Aisle of Shame?

While the Aisle of Shame undoubtedly has some fun bargains and is worth checking out, as frequent Aldi shoppers will tell you, you do want to make sure you’re shopping responsibly. You don’t want to negate all of the savings that you get by buying your groceries at Aldi by splurging on things that are truly unnecessary.

So, when you see something in the Aisle of Shame at Aldi, take the time to ask yourself if it is an item that you will actually use enough to get value out of it. Ideally, it will be something that you would have purchased anyway at a higher price elsewhere, but that you just happen to get a great deal on because you stumbled upon it in this special Aldi aisle.

You’ll also want to make sure you’ve budgeted for your Aisle of Shame purchases — especially if you do like to indulge in buying random things there because they catch your eye. You don’t want to end up in credit card debt because you go a little too crazy in this fun Aldi aisle, so if you know you’re prone to impulse buying there and you want to take advantage of the bargains, work some money for this into your weekly budget. Then you can shop the Aisle of Shame guilt-free and toss whatever fun items you like into your cart!

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Choice is queen. 

Employers often force employees to choose between investing in two employer-sponsored retirement accounts: the traditional 401(k) and the Roth 401(k). Sound familiar? If so, you’ve probably debated which is the better investment.

Both have their merits. On her Woman & Money podcast, financial guru Suze Orman says that 401(k)s are a fabulous place to put your money.

Traditional vs. Roth 401(k)s

Traditional 401(k)s are pre-tax retirement accounts. You are taxed when you pull your money out of the account. Here is what makes traditional 401(k)s so appealing:

You typically pay taxes in retirement. That’s great for folks who anticipate moving to a lower tax bracket in retirement.Large enough contributions may knock you into a lower tax bracket right away.

Roth 401(k)s are after-tax retirement accounts. You are taxed when you put money into the account. Here’s what makes Roth 401(k)s so appealing:

You pay taxes upfront. That’s great for folks anticipating moving to a higher tax bracket in retirement.Roth 401(k)s offer greater flexibility to retirees than traditional counterparts.

Employers often match a percentage of employee investments regardless of which account you choose. That’s more savings on top of whatever you feel comfortable contributing.

Author’s note: However, this percent match often comes with strings attached — employers sometimes revoke the match if employees quit too soon. Stay informed. Read the fine print and check whether the company has a vesting schedule.

Here’s why Suze Orman prefers Roth 401(k)s

Orman loves Roth 401(k)s for two reasons: Unlike traditional 401(k)s, Roth accounts no longer require retirees to make annual withdrawals. And folks can contribute more to a Roth 401(k) than they can a Roth IRA (individual retirement account).

Zero annual withdrawal requirements

Orman says, “You’re better off doing a Roth 401(k) versus a traditional 401(k)… because you can just leave it in there for the rest of your life.”

Traditional 401(k)s come with a condition called RMD, which stands for required minimum distribution. If you have money in a 401(k) during retirement, you must withdraw a minimum amount of money from that account each year or pay a stiff fine.

In 2024, Roth 401(k)s will no longer require RMDs thanks to the Secure Act 2.0. Investors can leave money in their accounts for as long as they want, regardless of age or retirement status. Roth 401(k)s give retirees greater flexibility when making withdrawals.

Higher contribution limits than IRA

Orman adds, “You can put larger amounts of money in there than you can in a Roth IRA. And anytime you want, you can always convert it to a Roth IRA.”

In 2023, the Roth 401(k) contribution limit is $22,500. The Roth IRA contribution limit is $6,500. (Folks over 50 have higher contribution limits.) You can contribute more long-term savings to a Roth 401(k).

Employees who switch jobs or retire can convert their accounts into a Roth IRA. Like the Roth 401(k), the Roth IRA doesn’t require you to withdraw money in retirement.

Best Roth IRA accounts

You have options if you choose to roll over your Roth 401(k) into a Roth IRA. Make sure to shop around. The best Roth IRA accounts offer powerful features like simple setup and low fees.

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Make sure to pad your budget accordingly. 

Buying a home is a huge undertaking. That’s probably not news. What may surprise you, though, is that the cost of owning a home might far surpass the cost of renting one. And so if you’re going to be taking that leap, it’s important to know what to budget for.

Prepare to spend more

It’s a big point of frustration for many renters that for the price they pay their landlords every month, they could instead pay a mortgage lender and get to build equity in a home of their own. But let’s say you’re going from renting to owning a home, and you’re used to paying $1,000 a month in rent. Even if your monthly mortgage payment is the same $1,000, you should expect owning a home to cost you a lot more money.

The reason? When you own a home, you have to pay property taxes for the privilege of owning it. You also have to cover the cost of homeowners insurance, which can be far more substantial than the cost of renters insurance.

Then there’s maintenance and repairs, both of which have the potential to be huge budget-busters. First of all, repairs can be difficult to predict. And while there are formulas you can use to try to estimate your annual maintenance costs, much will depend on the state and size of your home and the number of tasks you’re able to do yourself versus those you need to outsource.

As such, financial guru Suze Orman says that if you’re going to buy a home, it’s best to inflate your mortgage payment by 30% to land on your monthly housing costs. This means that if you’re buying a home that comes with a $1,000 mortgage payment each month, you should assure you’ll spend at least $1,300 a month on housing.

Don’t get in over your head

Some people assume that if they can afford to rent a home with a certain monthly payment attached to it, they can afford to buy a home that comes with that same mortgage payment. But your mortgage payment alone doesn’t tell the whole story.

The upside of renting is getting to write a single check each month and not having to worry about added costs. You’re not guaranteed that when you own a home. Even if you pad your mortgage payment by 30%, you may find that that’s still not enough when your property tax bill arrives or you’re hit with a repair issue that’s more complicated than usual to address.

So on top of estimating that extra 30%, you should also make sure you have a nice, robust emergency fund before taking the leap into homeownership. That way, you’ll have extra cash in savings to fall back on in case any given housing expense catches you off guard.

In fact, as a general rule, it’s good to have enough money in an emergency fund to cover three full months of living costs. But if that’s the rule of thumb you followed as a renter, it wouldn’t hurt to boost your savings now that you’re looking at being responsible for a home you own.

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Used car prices may be down, but they’re poised to rise again. 

There was a point when the demand for used cars was so high that buyers had no choice but to pay a premium for one. Thankfully, those days may be behind us. But that doesn’t mean purchasing a used car will be an inexpensive prospect in 2023.

In January, used car prices were down 11.6% on a year-over-year basis, according to the Consumer Price Index. But more recent data shows that used vehicle prices may be on the rise once more.

What will a used car cost you this year?

While used car prices may have started off a significant notch lower than they were a year ago, during the first 15 days of February, used vehicle prices rose 4.1% from January, according to data from Manheim. That’s the largest February increase on record since 2009.

This doesn’t guarantee that used car prices will continue to climb. But they might, and consumers need to prepare for that.

Of course, it’s easy to see why the demand for used cars may be surging. New cars are still expensive to purchase due to ongoing shortages. So some consumers may be more inclined to opt for a used car to save some money. If used car prices keep rising, however, the savings might end up being less to write home about.

Should you buy a used car?

There are pros and cons to purchasing a used vehicle, regardless of how prices are trending. One major benefit of buying a used car is paying less, and having a less expensive auto loan to deal with after the fact. Plus, used cars can, in some cases, be less expensive to insure, since they’re worth less money than new cars.

On the other hand, you need to be really careful when buying a used car. The last thing you want is to get stuck with a vehicle with hidden damage. A good way to avoid that, though, is to check your car’s VIN number. That will give you a solid history on that vehicle so you’ll know whether it’s a good buy or not.

You may also need to take the step of getting your car inspected before completing your purchase if you’re buying used. That could end up being a cost and a hassle you have to deal with. However, it could prevent a scenario where you end up buying the wrong used car — and regretting it after the fact.

How much can you afford to spend on a used car?

You’ll generally hear that you shouldn’t spend more than 30% of your take-home pay on housing. There’s not necessarily a comparable formula to use in the context of a vehicle purchase, so your best bet is to run the numbers and see what your budget looks like based on different auto loan payments.

The last thing you want to do is buy a used car you can’t afford. So in addition to researching the car itself, do plenty of number-crunching so you don’t wind up bemoaning your decision.

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Neurotypical money strategies don’t always work best for people with neurodivergent brains. 

The term “neurodivergence” describes differences in brain function. Neurodivergent people have different strengths and weaknesses from those with typical neurological functioning or neurotypical people. As such, it can be a struggle for many neurodivergent people to manage their finances.

If this resonates with you, keep reading. Whether you spend money impulsively, forget to pay your bills, or find it challenging to stay committed to your money goals, you’re not alone. The following tips may help you manage your money and reach your personal finance goals with greater ease.

1. Use automation to your advantage

Many neurodivergent people struggle with working memory, so it can be difficult to remember to handle necessary financial tasks. You may want to use automation tools if you struggle to remember to save money or pay bills.

Here are two ideas:

Automate your savings. If you’re finding it difficult to reach your savings goals, you may want to automate the savings process. You can set up automatic transfers and have money automatically transferred to your savings account regularly.Enable automatic bill pay. You can set up automatic bill payments for some bills, including credit card payments. This move can help you avoid missed and late payments.

2. Set alerts and reminders

If automation isn’t for you, that’s okay. Another technique that may help you reduce forgetfulness is to use alerts and reminders. Find a strategy that won’t overwhelm you. Here are a few ideas a try:

Set up payment reminders. You can set up payment due date alerts for some bills, like credit cards. You’ll get a reminder by email or text message that your credit card payment is due soon.Use your mobile phone to stay on track. You can set up reminders to alert you of important tasks or use your phone’s calendar to track when bills are due.Use a paper and pen. If you prefer a non-electronic approach, you may want to try using a paper calendar or colorful sticky notes to remember important dates.

3. Gamify the process

As someone with ADHD, I get bored quickly; I have to be interested in something to remain focused. Gamifying a boring task can help me focus better. You may want to gamify your money matters. Whether you’re working to pay off debt, trying to reach a savings goal, or hoping to get better at following a budget, you may be more successful by making it fun. Consider these options:

Make it interactive. Budgeting apps may be helpful if you like technology. These apps allow you to set goals and monitor your progress and can make managing your finances more interesting.Track your progress. Tracking your progress may help you stay focused. Whether you use a spreadsheet or create colorful charts and graphs, you may find that seeing your progress enables you to stay on track with your goals.Celebrate your wins. Give yourself credit for all your hard work. You may stay more committed by rewarding yourself as you make progress. Start with small goals and work your way up from there.

4. Log out of shopping apps to reduce overspending

You’re not alone if you suffer from impulsivity. Many neurodivergent people overspend and struggle with credit card debt. You may find it easier to manage your spending by logging out of shopping apps and websites as soon as you place an order. It will take more effort to log back in and place another order, which may deter you from making unnecessary purchases.

5. Don’t be afraid to ask for help

No one can do it all alone, and it’s okay to ask for help. If you’re finding it difficult to manage your financial matters independently, don’t hesitate to get assistance. If you live with family, a trusted roommate, or a partner, you could ask them to share some of the household financial responsibilities so you feel less overwhelmed.

Find what works best for you

No one solution works for everyone. You may need to experiment to find what strategies work well for you. Much of the typical financial advice only works well for the neurotypical brain. If you’re neurodivergent, don’t be afraid to get creative and think outside the box so you can master your money in a way that works best for you.

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