Money Management

You don’t need to dread the air travel experience. 

Flying is the most convenient way to travel long distances, but it’s often not the most enjoyable experience. Check-in lines can be long. Airport security is hectic and uncomfortable. The flight itself isn’t any better for the average passenger, especially considering seats have gotten several inches smaller over the years.

That’s probably why nearly half (45%) of Americans rate the air travel experience as average or below, according to travel data by U.S. Travel Association. Although the lackluster air travel experience is frustrating, there are some strategies you can use to make it much better.

Apply for a Global Entry membership

There are two Trusted Traveler Programs that get you through airport security faster: Global Entry and TSA PreCheck. Here’s how they work:

Global Entry lets you go through expedited security screening when returning to the United States from abroad. It costs $100 for a five-year membership.TSA PreCheck lets you go through expedited security screening at U.S. airports. It costs $78 for a five-year membership.

The reason to apply for Global Entry is because it includes a TSA PreCheck membership, so it’s effectively a two-for-one deal. The same isn’t true if you apply for TSA PreCheck.

Both programs can help you save a lot of time and stress going through airport security. You don’t need to pay for them yourself, either. Lots of popular travel credit cards cover your membership fee to either program.

Visit an airport lounge

Airport lounges give travelers a more comfortable place to pass the time before a flight. Lounges typically offer far nicer seating than what you’d find elsewhere in the airport, as well as free food and drinks.

There are a few ways to get airport lounge access. Airlines generally offer their lounges to travelers flying in business class or first class, so if you book one of these fares, check if it will get you into a lounge. There are also several credit cards with airport lounge access included as a perk.

Consider springing for a better seat

Your seat plays the biggest role in how comfortable you are on a flight. If you really want to be more comfortable, the best option is to book a seat in a higher travel class. Premium economy and first class are both good options for domestic flights. Business class is normally more than enough for international flights. International first class can be a spectacular experience, but it also costs much more.

While spending more on airfare pushes up your travel costs, it can be well worth it. Also, keep in mind that you don’t always need to pay in cash. If you have a travel card, credit card points are a great way to get expensive airfare free of charge.

Compare your airline options before booking

When you have multiple airlines to choose from, do some research online to see how they compare. Quality can vary quite a bit from airline to airline. For example, one airline may offer lie-flat seats in business class, while another airline’s business class has large reclining seats. That’s a huge difference, especially on lengthy flights where it will be much easier to sleep if you can lie down.

To get an idea of what an airline offers, search online for the airline, the route, and the fare class you’re considering. For example, if you’re thinking of taking United Airlines from Chicago to Frankfurt in its Polaris business class, you could search for that. This is a convenient way to see what type of seating and service an airline has on the route you’re booking.

Plan ahead and arrive early

It’s a lot easier to have a good time traveling when you’re not in a rush. If you need to skip breakfast and run through the airport because you’re late for your flight, it’s next to impossible to enjoy the travel experience.

Set up the day of your flight to be as relaxing as possible. Make sure you have time for a meal before you go, unless you plan to eat at the airport. If you do, don’t forget to check out the food options ahead of time. Aim to get to the airport with more time than you need, so you’re not stressing about whether you’ll make your flight. This also gives you time to relax in an airport lounge or a cafe and enjoy every step of your trip.

Bring your own entertainment

Air travel involves its fair share of sitting around. In-flight entertainment options can be hit or miss, and you can never be completely sure how long you’ll be sitting around at a boarding gate. That’s why having your own entertainment on hand is a must.

Fortunately, there are plenty of options to choose from. Many streaming services let you download shows and movies for offline viewing. If you like to read, e-readers won’t take up much space in your luggage.

Believe it or not, it’s possible to look forward to going to the airport. Air travel has its flaws, but much of your overall experience is in your control. If you follow the tips above, you’ll have a much better time at the airport and on your flights.

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.Lyle Daly 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.

 Read More 

The squeaky wheel gets the grease (and spends less on housing). 

Buying and owning a home is likely to be one of the most expensive money moves you’ll ever make. Not only will you have upfront costs (such as a down payment to secure a mortgage loan), but you’ll also be responsible for ongoing expenses like maintenance and homeowners insurance. As such, it pays to ask the right questions going into the process, as the answers will give you the knowledge you need to save money on the costs of homeownership. Add the following questions to your checklist for your home search.

1. Why is this home for sale?

This is exactly the kind of question that can give you the edge in the home-buying process and position your offer to be the one the seller chooses. If it turns out the home is on the market because the seller has gotten a new job and has to relocate right away, you can negotiate based on this information. You might be able to offer less if the seller has to keep to a specific timeline for moving out. Conversely, if the seller is in no real hurry to move and is trying to get as much money as possible for the house, you might not want to waste your time if you’re not willing to overpay.

2. How are the neighbors?

Everyone has a bad neighbor story, and the home you’re considering making an offer on might come with a potential one built right in. Remember the Griswold family from National Lampoon’s Christmas Vacation? Now imagine having them as neighbors, and you’ll understand why it’s best to ask this question ahead of making an offer. This isn’t to say you’ll end up with neighbors who bring your property value down with their questionable holiday decor choices or obnoxious house guests, but if they have a dog that barks all hours of the night, you might want to avoid buying that property.

3. Were any additions or major repairs made?

If the home you’re considering is listed as having four bedrooms, and one of them was a recent add-on, it’s a good idea to find out as much as you can about how the work was performed. Was it done to code? Can you view a copy of the permit to ensure the work was performed correctly? Similarly, if the house just got a new roof last year, ask who did the job and see if it came with a warranty from the roofing company. If something goes wrong, you’ll need to know who to call and can keep more money in your bank account by not having to shell out for repairs.

4. Do the appliances come with it?

If you’ve fallen in love with the stove and refrigerator in the well-appointed kitchen, you’re going to want to ask if they actually come with the home. The previous owners may be intending to take them along to their new home, meaning you’ll have to open your wallet to purchase new appliances (or find a friendly financing option if you don’t have the money ready to replace them).

If you’re making a budget to buy a home and are dreading shelling out so much money, be sure to ask the above questions. They could mean the difference between being locked into an expensive home that isn’t right for you and finding just the right house to buy for your life and your financial situation.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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 may be a good time to grow your cash reserves. 

Is a recession going to strike in 2023? Some financial experts still think so. And if economic conditions sour, there’s the potential for unemployment levels to rise in a meaningful way.

That’s a scary thought when you don’t have all that much money in your savings account. And a recent Federal Reserve report found that 32% of Americans are not in a position to cover a $400 emergency expense. Meanwhile, if you’re laid off, and you’re not given any sort of severance pay, your earnings might take more than a $400 hit, even if you’re immediately eligible for unemployment benefits. So you may want to think about boosting your emergency fund — even if you have well more than $400 in the bank right now.

Do you have enough emergency savings to get through a recession?

Most people are advised to have anywhere from three to 12 months’ worth of living expenses tucked away in a savings account. That’s a wide range, but the reason three months is the minimum threshold is that it might take you that long to find a new job if you lose yours. And during a recession, it might take you a lot longer than three months to get hired again.

Now, you may be thinking, “If I get laid off, I’ll just fall back on unemployment benefits.” But those benefits may not even replace half of your paycheck, depending on where you live and what your state’s maximum weekly benefit looks like.

Also, it can take time to process an unemployment claim. And if you’re self-employed, here’s some bad news — you won’t be eligible for unemployment benefits. (At the start of the COVID-19 pandemic, a temporary provision was put into place that allowed freelancers and self-employed workers to collect unemployment. But that provision expired quite some time ago.) So in that case, it’s especially important to have a solid level of cash reserves. If you don’t build up your emergency fund, you might end up having to resort to charging your basic bills on a credit card and paying it off in time, all the while accruing a large amount of interest.

Which end of the emergency savings spectrum is right for you?

When you’re told to save anywhere from three months to 12 months of living expenses, it can be hard to know which end of the spectrum to favor. So you’ll need to ask yourself these questions:

Am I entitled to unemployment benefits? If not, saving more could pay off.Am I the sole earner in my household? If you have a partner who also works and you’re in completely different industries, you may not necessarily need 12 months’ worth of living expenses in the bank. Chances are, you won’t both lose your jobs at the very same time (though it’s technically possible). Do I have dependents? If you have kids, pets, or other family members who rely on you financially, you may want to push toward added savings.How flexible are my bills? If you’re locked into a mortgage loan and car payment, you might need more emergency savings than someone with no car and a month-to-month lease they could always break with 30 days’ notice if money gets tight.

All told, you don’t necessarily need to lose sleep over an impending recession. But it does pay to make sure you’re prepared for one financially. And that could mean pumping more cash into your emergency fund in the coming weeks and months.

These savings accounts are FDIC insured and could earn you more than 12x 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 more than 12x 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.The Motley Fool has a disclosure policy.

 Read More 

Late fees are a great source of income for credit card companies. 

President Joe Biden has pulled together a host of government agencies to help promote competition in the U.S., thereby driving down consumer prices. One thing the president has set his sights on is exploitative junk fees, like those charged by credit card companies.

To that end, the Consumer Financial Protection Bureau (CFPB) proposed this month to reduce the amount credit card issuers can charge for late payments to $8. Currently, consumers who pay a credit card late are charged $30 for the initial late payment and $41 for each subsequent penalty. In 2020 alone, these penalties put an additional $12 billion into the pockets of credit card issuers.

Fighting the proposal

The CFPB rule, which does not require congressional support, has drawn the ire of credit card companies and trade groups representing those companies. The new ruling will save consumers an estimated $9 billion annually if enacted.

In addition to setting individual late fees at $8, the proposal will:

End automatic annual inflation adjustmentsLimit late fees to 25% of the minimum payment

Lobbyists for credit card companies are pushing back, threatening that banks and credit unions will be forced to increase interest rates, tighten lending standards, and reduce access to credit if the ruling is carried out.

The argument

According to lobbyists, late fees help financial institutions manage risks. If financial institutions cannot charge expensive late fees, they will be forced to raise prices across the board. Celia Winslow, a senior vice president at American Financial Services Association, warned that rewards programs could be limited, as well as the amount of credit available to consumers.

According to Rohit Chopra, director of the CFPB, card issuers have made late payment penalties a “core part of their business model.” Further, Chopra says that credit card companies have been allowed to profit from junk fees thanks to the safe harbor provision under the CARD Act of 2009.

The hardest hit

The consumers hit hardest by late fees are the most economically vulnerable. A report by the CFPB found that it’s subprime and deep subprime cardholders who are most susceptible to late fee charges. In addition, the number of late fees charged to households with lower credit scores declined in 2020 and 2021 after stimulus checks arrived. According to the CFPB study, these late fees appear to be a penalty on households living paycheck-to-paycheck rather than a form of incentive to pay on time.

Not budging

Still, banking trade groups are not budging, arguing that lower fees would make borrowing more expensive for everyone. President and CEO of the Consumer Bankers Association, Lindsey Johnson, refers to the CFPB proposal as “unfortunate and puzzling.”

If the new late fee regulation is enacted, the CFPB says that consumers should begin to notice a difference as soon as 2024. In the meantime, banks and their representatives in Washington will continue to fight the proposal. To date, their most pointed weapon is the threat to find new ways to make consumers pay for the estimated $9 billion they will lose in late fees.

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 

Seniors should explore free tax prep resources before filing their taxes. 

April will be here before we know it, which means it’s tax season. If you haven’t started thinking about how you will file your taxes, now is the time to make a plan. While you can file your taxes independently, taking advantage of free and low-cost resources is best if you know you’ll need a little extra assistance. For older Americans, there are several free tax prep resources available. Keep reading to learn more about some free tax preparation resources for seniors.

1. AARP Foundation Tax-Aide

The AARP Foundation Tax-Aide offers free in-personal and virtual tax assistance to anyone. However, the organization focuses on assisting taxpayers ages 50 and older with low to moderate incomes. Volunteers are IRS-certified yearly and are located nationwide. For walk-in assistance, you’ll need to schedule an appointment in advance.

2. Tax Counseling for the Elderly

Another program worth exploring is the IRS’s Tax Counseling for the Elderly (TCE). This nationwide program is available to individuals ages 60 or older. Interested taxpayers can contact the TCE program to get free tax help. All program volunteers are IRS-certified.

3. Volunteer Income Tax Assistance

Another resource the IRS organizes is the Volunteer Income Tax Assistance (VITA) program. This program offers free tax help and tax-filing assistance to those who qualify. All program volunteers are IRS-certified. The following taxpayers are eligible for assistance:

Households making $60,000 or lessIndividuals with disabilitiesTaxpayers with limited English-speaking abilities

4. IRS Free File

If you’re a tech-savvy senior, you may want to use the IRS Free File program to file your federal taxes electronically. You can file your federal tax return at no cost if you meet the qualifications. Those with a household adjusted gross income (AGI) of $73,000 or less are eligible. It’s worth noting that taxpayers may be required to pay a filing fee to file their state tax return, so while your federal tax return may be free, you may need to spend some money on state filing fees.

5. Look for tax prep programs in your community

In addition to the resources mentioned above, your town or city may have free or low-cost tax preparation services available to seniors. If you need help, contact your local library or community center to inquire about tax-filing assistance programs. Many community-run organizations throughout the country help seniors with important personal finance matters, including tax preparation and tax-filing assistance.

Don’t wait to file your tax return

While no one enjoys tax season, paying taxes and filing annual tax returns is a responsibility that most of us have. If you have yet to start organizing your tax documents, now is the time to start. You may feel tempted to delay filing your taxes, but that can cause you more stress.

The good news is it’s not too late to get started. If you feel comfortable handling your taxes without professional help, you may want to use tax software to simplify the process. Check out our list of the best tax software to learn more about your options.

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 

It’s all about keeping them motivated and informed. 

My children’s ages range from 8 to 11, so clearly, they’re too young to actually go out and get jobs. As such, the money they get their hands on tends to be cash that’s gifted to them, whether for a birthday, the holidays, or to celebrate a lost tooth. And also, they don’t tend to get their hands on hundreds of dollars at a time.

The tooth fairy, for example, might give them anywhere from $1 to $5, depending on how generous she’s feeling. And while they might get a birthday gift of $25 or $50, even these aren’t life-changing sums of money.

But still, I refuse to let my kids keep cash in the house. If they do that, they might lose it or bring it to school and use it for silly things (like buying snacks in the cafeteria) that are hard for me to monitor.

That’s why every time my kids get some cash, whether it’s $2 or $50, that money goes into their savings accounts. But my kids also know that these accounts exist, and that the money in there is theirs.

Not only that, but I make a point to review my kids’ savings account balances with them every few months. Here’s why.

Being looped in keeps my kids motivated

When you’re young and all of your money is tucked away in the bank, it can be easy to either forget about it or not realize that it’s growing. But it’s important to me that my kids realize that the longer they leave their cash untapped, the more interest they can earn on it.

My youngest kids (who are both 8 years old) are only first starting to understand the concept of interest. But my older child totally gets it. And now that savings accounts are finally starting to pay more generously (many high-yield accounts are paying 4% or more), I’ve made a point to sit down with my kids every few months and look at their balances so they can see how their savings are increasing.

This is an important thing, because on occasion, my kids will ask for a $3 withdrawal here or a $5 withdrawal there to buy what I consider to be silly things. Now I believe in giving my kids access to that cash, since it’s theirs. But before I do, I’ll remind them that taking small withdrawals here and there will lead to them having less money down the line. And that’s gotten through to them.

In fact, another reason I review those bank account balances with my kids is to show them the impact of not taking those small withdrawals for fairly meaningless things. And now, my kids are more motivated to save up for bigger, more important goals.

A new option to introduce

I want my kids to feel empowered to manage their money — with my help, of course. Now that CD rates are finally up, I plan to sit down with my children, explain the concept of CDs, and ask if they want to put some or all of their money into one.

I’ll make sure they understand they’re making a commitment, and that they won’t be able to take withdrawals for a preset period of time. But I’ll also be sure to explain the upside — earning a higher interest rate on money they aren’t planning to use right away.

All told, I believe in educating my kids about personal finance, even though they’re pretty young. But in teaching my kids to take pride in growing their savings now, my hope is that they’ll be motivated to continue growing their savings as adults, too.

These savings accounts are FDIC insured and could earn you more than 12x 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 more than 12x 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.The Motley Fool has a disclosure policy.

 Read More