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SNAP Benefits Are Higher in 2023. But Will It Be Enough?

By Money Management No Comments

Record numbers of people used food pantries last year, reflecting a growing food insecurity. 

Image source: Getty Images

Supplemental Nutrition Assistance Program (SNAP) benefits have increased significantly in recent years. This is partly a reflection of the higher cost of living, as well as changes in the way benefits get calculated. Higher SNAP payments have helped reduce poverty and food insecurity, but unfortunately, millions of Americans still struggle to put food on the table.

How high are SNAP benefits for 2023?

SNAP benefits are calculated by taking the maximum amount for that household size and making deductions depending on income and other factors. In Oct. 2022, SNAP benefits increased by about 12.5% to reflect the higher cost of living. This figure will be adjusted again in Oct. 2023.

In much of the country, the maximum monthly SNAP benefit for a household of four is now $939. That’s about $7.70 per person per day. However, according to the Center on Budget and Policy Priorities (CBPP), the average SNAP benefit for a household of four is $718. That breaks down to about $5.90 per person per day — less than $2 per meal.

Maximum SNAP benefits by household size for 2023 fiscal year in most states

Household size Maximum monthly benefit Daily benefit per person 1 $281 $9.24 2 $516 $8.48 3 $740 $8.11 4 $939 $7.72 5 $1,116 $7.34 6 $1,339 $7.34
Data source: CBPP and author calculations. SNAP payments in Alaska and Hawaii are higher due to higher food costs.

Estimated average SNAP benefits for 2023 fiscal year in most states

Household size Estimated average monthly benefit Estimated average daily benefit per person 1 $197 $6.48 2 $377 $6.20 3 $586 $6.42 4 $718 $5.90 5 $842 $5.54 6 $981 $5.38
Data source: CBPP and author calculations.

The Thrifty Food Plan

The USDA’s Thrifty Food Plan is a crucial part of calculating SNAP benefits. It’s essentially the USDA’s estimate of the lowest-cost way to feed a household healthily. It includes a mix of dairy, fruit and vegetables, grains, proteins, and other items. Its thrifty food basket is the basis for all SNAP benefit calculations.

In 2021, the USDA overhauled the Thrifty Food Plan for the first time in decades. Until then, the food basket operated on a number of outdated assumptions in terms of what people ate and how much time they had to prepare meals. The updates meant an increase of over 20% in food benefits, which the CBPP estimated would lift 2.4 million SNAP participants out of poverty.

Are SNAP benefits enough?

The updates to the Thrifty Food Plan mean that families are now better able to feed themselves using SNAP benefits than they were a few years ago. However, inflation and an end to emergency allotments are both big issues. There were record numbers of people at food banks last year, and the Urban Institute reports that food insecurity is rising.

Inflation already means SNAP benefits don’t go as far

At a fundamental level, inflation makes everything more expensive. Housing costs are higher. Utility costs are higher. Medical costs are higher. And lower income households who spend a higher percentage of their cash on essentials are hardest hit. As a result, some families have had to choose between paying bills or putting food on the table. There’s just not enough money in their bank accounts to cover everything.

In terms of SNAP benefits, which get recalculated annually, the value of those payments shrinks with every passing month. The current system isn’t designed to handle double digit inflation. For example, SNAP adjustments get announced in June and implemented in October. By the time the June changes came into effect, the cost of the USDA’s food basket had already increased by almost $30 from $939.90 to $967.70. In some households, that’s 15 meals.

An end to emergency allotments

SNAP benefits may be higher than ever, but some households will receive less money next year. Here’s why: Emergency allotments will almost certainly come to an end. Emergency allotments are extra food benefits that states have been able to pay because of the pandemic.

Provisions during the public health emergency allowed states to waive certain SNAP requirements and pay extra money. All households could receive the maximum benefit and those that already did could get an extra $95 a month. The Urban Institute estimates that emergency allotments kept 4.2 million people out of poverty in the fourth quarter of 2021.

A number of states have already stopped making the extra payments, and when the national health emergency ends, others will have to follow suit. We don’t know exactly when the health emergency will end, but when it does it will mean a number of families will receive less money.

Food insecurity is a growing issue

Inflation put pressure on most households last year, making it harder to save money and — in some cases — put food on the table. Increased SNAP benefits have certainly made a difference and helped reduce hunger. Unfortunately, the higher benefits may not be enough to beat inflation and other SNAP changes.

If you aren’t sure how to pay for your food costs, see if you can qualify for any other food assistance programs. You may also be able to get emergency help at nearby food pantries and soup kitchens. Call United Way on 2-1-1 for more information on local assistance programs.

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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.Emma Newbery 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.

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How to Live Without a Car

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 Going carless is hard if you’re unprepared. But if you know what you’re doing, it can be totally worth it. tommaso79 / Shutterstock.com

Editor’s Note: This story originally appeared on Living on the Cheap. Whether it’s to save money, reduce environmental impact, or be safe, a lot of families find themselves living with one car — or none at all. The number is likely to increase as the population ages, too. Cars are useful but costly; along with the purchase price and monthly payments, you have gas, insurance…

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SNAP Recipients Can Save 50% on Amazon Prime

By Money Management No Comments

Amazon Prime access is a money and time saver. 

Image source: Getty Images

Amazon Prime is a convenient luxury many people enjoy. It comes with fast free shipping (two-day shipping is standard, but that has been reduced to one day in some areas), a streaming video service that includes well-reviewed original content, and more. Unfortunately, it’s not cheap. In February 2022, Amazon’s membership price went up to $14.99 a month, but you can save money by paying for the entire year at once, which will run you $139. And if you only want streaming video service, getting that costs $8.99 per month.

Prime’s benefits can help a lot of people save time and money on their shopping, but the cost is definitely a barrier for some. The good news is that low-income Americans can qualify for a cheaper Prime membership through a program called Amazon Access.

How does it work?

Amazon Access offers discounted Prime memberships to people receiving certain forms of government assistance. Recipients must provide proof of being enrolled in these programs (which consists of a card or an eligibility letter). The programs include:

Supplemental Security Income (SSI)Supplemental Nutrition Assistance Program (SNAP)MedicaidDirect Express Debit Card (DE)Temporary Assistance for Needy Families (TANF)National School Lunch Program (NSLP)Low Income Home Energy Assistance Program (LIHEAP)Women, Infants, and Children program (WIC)Tribal Temporary Assistance for Needy Families (TTANF)

If you’re enrolled in one of the above programs, you can receive a Prime membership for just $6.99 per month, or a savings of more than 50% off the standard monthly price. What a deal! And if you’re receiving SNAP benefits, you can even use them on Amazon to purchase groceries. Note that the price is guaranteed based on annual eligibility, so after a year, you’ll have to prove your eligibility again if you want to keep the benefits of Prime at a discount.

Special SNAP recipient benefits through Amazon Prime

Supplemental Nutrition Assistance Program, or SNAP, ensures that low-income families receive money benefits for use on food. While Amazon might not immediately spring to mind if you’re thinking of the best places to buy groceries, you can in fact buy them there, and SNAP recipients can use their EBT cards to buy products like fruits and vegetables, meat, and pantry items.

Amazon also owns Whole Foods Market, so if you have a Whole Foods in your area, you can shop there online via Amazon and pay with your SNAP benefits. Grocery costs were one of the spending categories hardest hit by inflation during 2022, so being able to squeeze out more savings on groceries by buying with Amazon is definitely a win for your bank account.

If money is tight in your household, it pays to look for ways to save on food costs and sign up for as many of them as you can. The odds are good that food is one of your larger expenses, and buying grocery items online (and getting free delivery) can save you money as well as time. If you’re receiving SNAP benefits and not taking advantage of a discounted Prime membership through Amazon Access, it’s worth checking it out.

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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.John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

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Why Kevin O’Leary Says You Must Do These 3 Things to Be a Successful Investor

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Here’s what makes a successful investor, according to Mr. Wonderful. 

Image source: Getty Images

Venture capitalist and Shark Tank star Kevin O’Leary has made his fair share of investments and reportedly built a net worth of $400 million. He occasionally posts investing advice on Twitter, and recently, he shared some words of wisdom. What are his secrets?

He says that to be a successful investor, “you must remain alert, curious, and in touch with what’s happening in the world.” It does veer pretty closely to what you’d read in a fortune cookie, but it makes sense overall. Let’s look at each of these recommendations to see what O’Leary means and why these things matter.

1. Be alert

Investing is all about predicting whether a company will grow or decline in value. Alert investors have a better chance of accurately predicting where companies are headed. They’re more likely to notice signs that a company is poised for growth or red flags indicating potential problems.

2. Be curious

The best investors are lifelong learners. For perhaps the most famous example, legendary investor Warren Buffett is known for how much he reads. He has estimated that he spends up to 80% of each day reading, and he says the key to success is reading 500 pages per day. Being curious about new subjects is great for investors because it expands your knowledge, and it could also help you find new investment opportunities.

3. Be in touch with what’s happening in the world

The stock market doesn’t exist in a vacuum. If you want to invest, it certainly helps to learn about investing and how to analyze stocks. However, it’s also important to stay up to date on world events. These also have a significant impact on investments, which is why most successful investors check the news at the start of their day.

How to put Kevin O’Leary’s advice into practice

O’Leary’s advice is basic, but it’s helpful for new investors who want to learn how to pick stocks and put together a quality portfolio. Of course, being alert, curious, and in touch with what’s happening are all things you need to work at. Here are a few tips on what you can incorporate into your daily routine to build those traits:

Set aside time to read investing advice, either online or with well-regarded investing books.Check economic and investing news every morning so you know what’s going on in the world.Read expert stock picks, not just for ideas on what to invest in, but to see how successful investors decide what to buy.

Or, go with a more passive investing approach

It’s worth mentioning that O’Leary’s tips on being a successful investor primarily apply for active investors. Active investing refers to managing your portfolio yourself. You decide which stocks to buy, when to buy them, and when to sell.

This isn’t your only option, though. There are also passive investment products that invest your money for you. Options include:

Index fundsExchange-traded funds (ETFs)Mutual fundsTarget-date retirement funds

These types of funds pool money from investors and use that money to buy a large number of stocks. Some also include bonds as part of their holdings. You can invest in them through online stock brokers, as well as with retirement accounts.

The advantage of these funds is that they take most of the work out of investing. All you need to do is choose a fund you like. Target-date retirement funds are a popular choice, and so are index funds tracking the S&P 500. Then, you just invest more every month.

O’Leary is more or less right about what makes a successful investor. If you’ll be actively investing, then you will need to be alert, curious, and in tune with what’s going on in the world. But you could also do well with a passive investment product, so there are multiple paths to success.

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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.Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

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7 of the Best Deals You Can Get in January

By Money Management No Comments

Start the year off with deals! 

Image source: Getty Images

Although we’re trained to think of the holiday sales as the best of the best, the reality is that you can find good deals all year long. And while you may be a bit shopped out this month, your budget will appreciate any deals you can get for the things still on your to-buy list.

For example, January is a great time to take advantage of deals from retailers who overstocked their shelves during the holidays. It’s also a great time to start prepping for the year to come. Here are some of the best deals you can find this month.

1. Holiday leftovers

The holiday shopping season brings a flood of themed gift sets, decor, and other festive goodies. And the second the holidays are over, all of that stuff goes on sale.

While a lot of the best Christmas decor deals are already picked clean before the ball drops, January will see all the rest get their prices slashed. Need a new tree? Now is the time. Have a deep need for holiday home goods? That Santa tea towel set now on clearance may just have your name on it.

2. Linens and things

Named for the crisp white linens it was created to sell, the White Sale is an ancient (all right, not ancient — but it is more than 100 years old!) retail tradition still celebrated by many companies today. As such, January is a great time to find deals on all of your household linens and other fabric goods, including sheets, comforters, and towels.

3. Televisions

At first glance, January may seem like an odd time to see television deals. But if you’re a football fan, it makes perfect sense. Why? Well, the Super Bowl, of course.

As millions of people prepare to watch the Big Game, football fans around the country are starting to compete with friends and neighbors over who gets to host the party. And this is one place where size matters; the largest TV often wins.

Retailers know all about this sacred battle — and they’re more than happy to help you win by selling you a big-screen TV, on sale, of course. Even if you’re not a football fan yourself, if you’re considering an upgrade to your home electronics, January could be the best time to buy.

4. Home fitness gear

Ah, yes, New Year’s Resolution season. The time of year when we all make ourselves big promises about how much better we’re going to be this year. (Followed by February, when motivation wanes and Real Life kicks those resolutions in the face.)

If your resolution this year is to get into better shape — or if you simply want to upgrade your existing home gym — now is a great time to find tons of sales on home fitness gear. You’ll find deals on everything from exercise equipment to the finest of fitness frocks. (Just maybe save the receipts, yes?)

5. Winter clothing

It may not seem like it when you’re shivering in six feet of snow, but for retailers, spring is practically around the corner. And with their eyes already on next season’s fashion, the current collection of winter trends is starting to go on sale. While the absolute best prices won’t be around until the spring thaw hits, you can still find some pretty good sales for winter jackets and other cold weather gear.

6. Air conditioners, servicing, and repair

While January may be the worst possible time to have a heater malfunction, it can actually be a great time to get that old air conditioner replaced. Even if your machine is in good shape, now could be the best time to have your system serviced and your ducts cleaned. Not only will you be ahead of the game when the weather turns, but you’ll likely score a deal as many air conditioning service companies are slowest during the winter.

7. 2023 travel

Can you find last-minute travel deals? Absolutely. Do most of us have the schedule flexibility to book travel at the last minute? Not so much.

In general, the very best time to book your travel is as soon as possible. Not only will this typically mean you get the best prices — airline tickets tend to get more expensive as your travel dates get closer, not less — but you’ll also see the most availability.

And this goes double for folks who are looking to book summer travel with credit card rewards. Want to go to Europe in business class for free with points this year? You’re going to need to start looking for award seats now.

Be sure to book refundable travel, especially if you’re booking well in advance. Not only does this help if something unexpected occurs, but it can also be good for comparison shopping along the way. Find a lower price in a few months? Jump on the deal and cancel your existing booking.

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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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The 7 Worst Things to Buy in January

By Money Management No Comments

Patience often pays off. 

Image source: Getty Images

It can take weeks to recover from the holiday season. And that goes for your personal finances, too. But just because you spent a little too much in December doesn’t mean your needs — or wants — disappear in January.

Once you’re done buying for everyone else, it can feel like it’s finally time to tackle a few things on your own to-buy list. But while January can be a great time for some purchases, you may want to avoid buying any of these seven things.

1. Large appliances

The holiday entertaining season can certainly highlight any deficiencies in your home appliances. But while your oven may have limped through Christmas cookie season, it’s not — quite — time to buy a new one. Instead, you should consider waiting just a few more weeks.

Why? Three words: Presidents’ Day sales.

What our previous leaders have to do with home appliances, we may never know. But February’s nationalist holiday is one of the best times to find deals on everything from dishwashers to washing machines.

2. Furniture

This is another area where it could pay off big to wait a few more weeks. As with home appliances, furniture stores frequently have huge sales around Presidents’ Day. A little bit of patience this January can save you hundreds, if not thousands, in February.

3. Mattresses

Yep, you guessed it: Mattresses are another big sale item in February, so hold out on replacing yours until the sales hit next month.

4. Snow tools and gear

We’re just a few weeks from peak winter for most of the country (yes, even in the South). And that means peak demand for snow gear and tools. Unfortunately, it also makes now perhaps the worst possible time to pick up any winter gear you may need to replace. If you don’t have a pressing need for new skis or a snowblower, you may be better served waiting until March when end-of-season deals start to drop.

5. Jewelry

Before the wrapping paper hits the ground Christmas morning, your favorite stores have already started to stock up on Valentine’s Day essentials. But while the aisles may be full of pink hearts and chocolate everything, the big sales events likely won’t kick in until February.

At the very least, it may be late January before we start seeing the best deals on Valentine’s Day go-tos like fine jewelry. If you have your eye on something sparkly this year, you’ll likely get the best price by waiting until next month.

Pro tip: Don’t blow your budget on jewelry, and never buy fine jewelry on credit. Most jewelry is like a new car: It will never be worth as much as it is the moment you buy it. And that goes double if you’re paying interest fees on it! A thoughtful, carefully chosen gift is always better than an expensive piece of bling you had to go into debt to buy.

6. Luggage

Some things, like televisions, go on sale during high-demand times (think Superbowl sales). Other things — well, don’t.

Luggage is at its best price when travel demand wanes, which is typically during the shoulder seasons (that’s March/April and August/September). And with most holiday deals at an end, you’re unlikely to get your best price if you pick up new luggage this month.

So unless you’re one of the many folks whose airline lost their luggage last year, wait until the end of the season to pick up your new set.

7. Gym memberships

All right, so this one isn’t so simple as “don’t buy this.” That’s because January can actually be a great time to join or renew a gym membership if you’re already someone who regularly goes to the gym. There are usually some great promotions as gyms try to capture the New Year’s Resolution crowd.

But — if you’re a member of the New Year’s resolution crowd? You may want to wait.

Many folks (and I’m not saying this will be you, but I’m not not saying it, either) tend to jump headfirst into a pricey gym contract while their motivation is high. Then, as the enthusiasm for the “brand new you” wears off, that gym membership will see less and less use. But if you signed on the dotted line, you’re still on the hook for the fees — likely until the next new year.

Skip the January gym membership unless you know you’ll put it to use. And good news! January happens to be a great time to pick up some home fitness gear. You can do a lot with a few exercise bands and some weights.

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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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