Money Management

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If you’ve been basking in the sun of high savings APYs, you might be disappointed that the Fed’s started to cut rates. However, I’d argue the changing tides are actually an opportunity. Top CDs offer rates near 5%, which is solid. But these rates can distract people from other higher-paying investments.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Depending on when you might need to touch your money, here are three better places to park your cash.1. Invest in the S&P 500There is a difference between investing and saving. Investing is riskier but has the potential to generate higher returns over time. For example, the S&P 500 — which tracks the performance of 500 of the biggest U.S. companies — has generated average annual returns of around 8%.If you were to invest $1,000 a month for 30 years, being able to earn annual returns of 8% would give you over $550,000 more than a CD paying 5%.Savings are a safe place to put cash you might need in the near term. Both savings and investments are essential if you want to build wealth. So before you invest, make sure you have three to six months’ worth of living expenses in a high-yield savings account. Think of it as your safety net in case things go wrong.In the market for a high-yield savings account to stash your emergency fund, but not sure where to start? Check out this list of our favorite high-yield savings accounts to open one and get started saving today.Once you’re good on emergency savings, check out ETFs that track the S&P 500. The index has a strong track record and you don’t need to worry about picking individual stocks. ETFs are often a great low-fee way to get exposure to a particular index, industry, or other group of assets.2. Invest in REITsREITs are companies that own and manage a mix of income-producing real estate. They focus on different types of properties, such as offices, shopping malls, data centers, and more. They offer a way to invest in real estate without having to get a mortgage and take care of the property.The great thing about REITs is that they have to pay out at least 90% of their taxable income to investors in dividends. According to NAREIT, the average dividend yield for all equity REITs in 2023 was 3.9%. Dividend payments are separate from any investment gains (or losses).Not all REITs were created equal. Before you jump in, research the different segments of the industry and look at the performance of individual trusts. In addition to yields, look at factors like what property the trust owns and who manages the company.3. Pay down high-interest debtStrictly speaking, paying down debt is not an investment. But few investments can guarantee a return of 20% or more. Data from the Federal Reserve shows the average credit card APR on interest-paying accounts is over 23%. If you’re paying much in credit card interest, paying down your balance is one of the best investments you can make.According to data from the St Louis Fed, almost 50% of Americans carry a balance on their credit card. If you’re one of them, decide how you’re going to tackle that debt. Look through your spending and work out how much you can realistically put toward debt repayment each month.You might prioritize paying down cards that carry the highest interest first (called the debt avalanche method). Another route — called the debt snowball method — is to focus on the smallest balance first, so you get a psychological win when it’s paid off. It’s also worth seeing whether debt consolidation could help you reduce your interest rate and simplify payments.Once you’ve paid down your credit card balance, you’ll have more available cash to put toward your savings and investment goals.Bottom lineEvery investor has a different tolerance for risk. The investments above may have good and bad years, but they also have proven track records of outperforming savings accounts over time. The biggest risk of all is to wait on the sidelines earning decent rates from a CD. If you want to build wealth, you need to do more than beat inflation.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

If you’ve been basking in the sun of high savings APYs, you might be disappointed that the Fed’s started to cut rates. However, I’d argue the changing tides are actually an opportunity. Top CDs offer rates near 5%, which is solid. But these rates can distract people from other higher-paying investments.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Depending on when you might need to touch your money, here are three better places to park your cash.

1. Invest in the S&P 500

There is a difference between investing and saving. Investing is riskier but has the potential to generate higher returns over time. For example, the S&P 500 — which tracks the performance of 500 of the biggest U.S. companies — has generated average annual returns of around 8%.

If you were to invest $1,000 a month for 30 years, being able to earn annual returns of 8% would give you over $550,000 more than a CD paying 5%.

Savings are a safe place to put cash you might need in the near term. Both savings and investments are essential if you want to build wealth. So before you invest, make sure you have three to six months’ worth of living expenses in a high-yield savings account. Think of it as your safety net in case things go wrong.

In the market for a high-yield savings account to stash your emergency fund, but not sure where to start? Check out this list of our favorite high-yield savings accounts to open one and get started saving today.

Once you’re good on emergency savings, check out ETFs that track the S&P 500. The index has a strong track record and you don’t need to worry about picking individual stocks. ETFs are often a great low-fee way to get exposure to a particular index, industry, or other group of assets.

2. Invest in REITs

REITs are companies that own and manage a mix of income-producing real estate. They focus on different types of properties, such as offices, shopping malls, data centers, and more. They offer a way to invest in real estate without having to get a mortgage and take care of the property.

The great thing about REITs is that they have to pay out at least 90% of their taxable income to investors in dividends. According to NAREIT, the average dividend yield for all equity REITs in 2023 was 3.9%. Dividend payments are separate from any investment gains (or losses).

Not all REITs were created equal. Before you jump in, research the different segments of the industry and look at the performance of individual trusts. In addition to yields, look at factors like what property the trust owns and who manages the company.

3. Pay down high-interest debt

Strictly speaking, paying down debt is not an investment. But few investments can guarantee a return of 20% or more. Data from the Federal Reserve shows the average credit card APR on interest-paying accounts is over 23%. If you’re paying much in credit card interest, paying down your balance is one of the best investments you can make.

According to data from the St Louis Fed, almost 50% of Americans carry a balance on their credit card. If you’re one of them, decide how you’re going to tackle that debt. Look through your spending and work out how much you can realistically put toward debt repayment each month.

You might prioritize paying down cards that carry the highest interest first (called the debt avalanche method). Another route — called the debt snowball method — is to focus on the smallest balance first, so you get a psychological win when it’s paid off. It’s also worth seeing whether debt consolidation could help you reduce your interest rate and simplify payments.

Once you’ve paid down your credit card balance, you’ll have more available cash to put toward your savings and investment goals.

Bottom line

Every investor has a different tolerance for risk. The investments above may have good and bad years, but they also have proven track records of outperforming savings accounts over time. The biggest risk of all is to wait on the sidelines earning decent rates from a CD. If you want to build wealth, you need to do more than beat inflation.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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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Savings accounts can be a great place to keep your cash. The best high-yield savings accounts are currently offering yields around 4.00% while keeping your money safe, so you can grow your wealth effortlessly without any real risk.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Unfortunately, there are times when you can have too much of a good thing. In fact, there are three situations where it would make absolutely no sense to add money to your savings account.1. You won’t need the money for at least five yearsIf you have money you won’t need for at least five years and you are thinking of putting it into a savings account, you should think again.At best, your savings account is probably going to provide returns somewhere around 4.00% and there’s a good chance that sometime in the next five years, it’ll provide an even lower return on investment (ROI). Interest rates on savings accounts are variable and rates are widely expected to go down across the board for the foreseeable future.If you invest in an S&P 500 index fund, on the other hand, it’s reasonable to expect you’d earn somewhere in the 10% range annually as long as you keep your money invested for several years. This is because the S&P 500 has averaged 10% annual returns over the long term.While there’s a risk of loss if you mistime your investment, buy high, and must sell shortly thereafter, that risk is minimized with an investing timeline of five years or more. You’d have time to wait out the inevitable recovery even if you bought right before a market crash.You can sign up for a brokerage account with no minimum balance and buy an S&P 500 index fund really easily. Click here for a list of our favorite brokerage accounts to get started today.2. The money is earmarked for retirement savingsYou don’t want to put cash into a savings account if it is money you are saving for retirement.Instead, you should put that money into a 401(k), IRA, or other tax-advantaged account.You can get tax breaks for contributions to these accounts and, in the case of a 401(k), may also be able to earn an employer match on the money you put in. This is a huge benefit that makes it easier to hit your retirement goals.Plus, if retirement is a long time away, getting the money into a 401(k) or IRA will also open the door to investing it, which, as we learned above, could help you earn a far better ROI than a savings account could offer.3. The money is for everyday spendingFinally, if the money is your spending money that you’ll be using to pay bills or cover other expenses, it doesn’t belong in savings. Many savings accounts limit monthly withdrawals, so it makes little sense to put money in only to have to start taking it out again on a regular basis. A checking account is the best place for money you’ll need regular access to.As you can see, in these three situations, you don’t want your money in savings. It’s better off in a checking, retirement, or brokerage account instead.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Savings accounts can be a great place to keep your cash. The best high-yield savings accounts are currently offering yields around 4.00% while keeping your money safe, so you can grow your wealth effortlessly without any real risk.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Unfortunately, there are times when you can have too much of a good thing. In fact, there are three situations where it would make absolutely no sense to add money to your savings account.

1. You won’t need the money for at least five years

If you have money you won’t need for at least five years and you are thinking of putting it into a savings account, you should think again.

At best, your savings account is probably going to provide returns somewhere around 4.00% and there’s a good chance that sometime in the next five years, it’ll provide an even lower return on investment (ROI). Interest rates on savings accounts are variable and rates are widely expected to go down across the board for the foreseeable future.

If you invest in an S&P 500 index fund, on the other hand, it’s reasonable to expect you’d earn somewhere in the 10% range annually as long as you keep your money invested for several years. This is because the S&P 500 has averaged 10% annual returns over the long term.

While there’s a risk of loss if you mistime your investment, buy high, and must sell shortly thereafter, that risk is minimized with an investing timeline of five years or more. You’d have time to wait out the inevitable recovery even if you bought right before a market crash.

You can sign up for a brokerage account with no minimum balance and buy an S&P 500 index fund really easily. Click here for a list of our favorite brokerage accounts to get started today.

2. The money is earmarked for retirement savings

You don’t want to put cash into a savings account if it is money you are saving for retirement.

Instead, you should put that money into a 401(k), IRA, or other tax-advantaged account.

You can get tax breaks for contributions to these accounts and, in the case of a 401(k), may also be able to earn an employer match on the money you put in. This is a huge benefit that makes it easier to hit your retirement goals.

Plus, if retirement is a long time away, getting the money into a 401(k) or IRA will also open the door to investing it, which, as we learned above, could help you earn a far better ROI than a savings account could offer.

3. The money is for everyday spending

Finally, if the money is your spending money that you’ll be using to pay bills or cover other expenses, it doesn’t belong in savings. Many savings accounts limit monthly withdrawals, so it makes little sense to put money in only to have to start taking it out again on a regular basis. A checking account is the best place for money you’ll need regular access to.

As you can see, in these three situations, you don’t want your money in savings. It’s better off in a checking, retirement, or brokerage account instead.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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 

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The final couple of months of the year tend to be a time to embrace the holidays, shop for gifts, and focus on year-end financial planning. Buying a home may not be on your radar. Or, it may be something you very much want to do, but aren’t expecting to check it off your list in the coming weeks.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. But actually, buying a home before the end of the year could work to your benefit. Here’s why.1. Inventory is upFor too long, home buyers struggled due to a combination of high prices, expensive mortgages, and a serious lack of inventory. Unfortunately, home prices are still pretty high, and that may not change for a while. And mortgages aren’t exactly cheap these days, either (though things are better than they were — more on that in a bit).But one aspect of the housing market that has improved is inventory. In September, there were 1.39 million housing units available for purchase, according to the National Association of Realtors. That’s a 23% increase from September 2023.The more inventory you have to choose from, the greater your chances of finding a home that checks off the right boxes and fits into your budget. Plus, an uptick in inventory gives you more bargaining power as a buyer.When inventory is low, sellers get the upper hand. Now that inventory is improving, things are evening out, which means you may have more wiggle room to negotiate a lower sale price. And if you happen to find a seller who really wants to close by the end of the year, they may be even more willing to come down on price.Ready to get out there and see what’s available? Click here for a list of the best mortgage lenders.2. You may have minimal competitionA lot of people can’t fathom the idea of buying a home at a time when they’re busy making holiday travel plans, hosting family meals, and hunting for bargains to tackle their gift-buying needs. But if you’re able to manage the holiday season in conjunction with house-hunting, it could work to your benefit.If you buy a home in the coming months, you may find that you’re competing against fewer buyers. That could make the process less stressful. It could also give you more room to negotiate with sellers.3. Mortgage rates aren’t quite as high as a year ago — and they could fall before year-endAs of Oct. 31, the average 30-year mortgage rate was 6.72%. At around the same time last year, the average 30-year loan rate was 7.79%. So even though mortgages aren’t inexpensive per se, there’s a bit of relief on the borrowing front.Also, there’s a good chance mortgage rates will creep downward before 2024 ends. We already saw rates plunge quite a bit in September before creeping back upward. Lenders may very well lower their rates beyond current levels, resulting in more savings on your part.Plus, if you shop around for a home loan, you could snag an even lower interest rate on your mortgage — especially if you have great credit.You may not think of November and December as great months to buy a home. But you may find that buying before the end of the year leaves you paying less. And that way, you get to kick off the new year having achieved a major financial milestone.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

The final couple of months of the year tend to be a time to embrace the holidays, shop for gifts, and focus on year-end financial planning. Buying a home may not be on your radar. Or, it may be something you very much want to do, but aren’t expecting to check it off your list in the coming weeks.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

But actually, buying a home before the end of the year could work to your benefit. Here’s why.

1. Inventory is up

For too long, home buyers struggled due to a combination of high prices, expensive mortgages, and a serious lack of inventory. Unfortunately, home prices are still pretty high, and that may not change for a while. And mortgages aren’t exactly cheap these days, either (though things are better than they were — more on that in a bit).

But one aspect of the housing market that has improved is inventory. In September, there were 1.39 million housing units available for purchase, according to the National Association of Realtors. That’s a 23% increase from September 2023.

The more inventory you have to choose from, the greater your chances of finding a home that checks off the right boxes and fits into your budget. Plus, an uptick in inventory gives you more bargaining power as a buyer.

When inventory is low, sellers get the upper hand. Now that inventory is improving, things are evening out, which means you may have more wiggle room to negotiate a lower sale price. And if you happen to find a seller who really wants to close by the end of the year, they may be even more willing to come down on price.

Ready to get out there and see what’s available? Click here for a list of the best mortgage lenders.

2. You may have minimal competition

A lot of people can’t fathom the idea of buying a home at a time when they’re busy making holiday travel plans, hosting family meals, and hunting for bargains to tackle their gift-buying needs. But if you’re able to manage the holiday season in conjunction with house-hunting, it could work to your benefit.

If you buy a home in the coming months, you may find that you’re competing against fewer buyers. That could make the process less stressful. It could also give you more room to negotiate with sellers.

3. Mortgage rates aren’t quite as high as a year ago — and they could fall before year-end

As of Oct. 31, the average 30-year mortgage rate was 6.72%. At around the same time last year, the average 30-year loan rate was 7.79%. So even though mortgages aren’t inexpensive per se, there’s a bit of relief on the borrowing front.

Also, there’s a good chance mortgage rates will creep downward before 2024 ends. We already saw rates plunge quite a bit in September before creeping back upward. Lenders may very well lower their rates beyond current levels, resulting in more savings on your part.

Plus, if you shop around for a home loan, you could snag an even lower interest rate on your mortgage — especially if you have great credit.

You may not think of November and December as great months to buy a home. But you may find that buying before the end of the year leaves you paying less. And that way, you get to kick off the new year having achieved a major financial milestone.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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 

[[{“value”:”Image source: Getty Images
Have you ever looked at your checking account and wondered if someone’s playing a cruel joke? Like, how is it possible to work full-time, raise kids, and somehow still be staring down the barrel of debt — or worse, delaying retirement until you’re 80?Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. TikTok star Paige Turner has done the math, and it’s worse than you think. It’s nearly impossible for most Americans to budget to raise kids, avoid debt, and retire on time. And honestly, she’s not wrong.Let’s break it down, starting with the school schedule, because, spoiler alert, it’s a nightmare.School schedules are a financial nightmareIf you’ve got kids in elementary school, you already know the chaos of juggling work and school schedules. Turner’s kids recently brought home their school calendar, and what she saw sent her into a panic. “They’ve got 12 half-days and seven no-school days this year,” she explains, “and that’s not even counting holidays like Veterans Day or Memorial Day.”So, for 19 random days throughout the year, Turner is either burning through her PTO or shelling out money for child care — $90 per kid for a half-day and $120 for a full day. And Turner’s got two kids. “That’s $3,800 just to cover those days off,” she says, “and it doesn’t even include school vacations.”Want to view all your child care (and other) expenses in one place? Check out our list of the best budgeting apps to help organize your finances.Vacation days are a hidden expenseThen, there’s the dreaded school vacation weeks. Turner counted up 18 vacation days scattered across the calendar, including winter and spring breaks. “My husband and I combined have 35 PTO days,” she says, “but we need 37 to cover all these school days off!” And that’s not even factoring in the inevitable sick days when a kid comes home with the flu, and you’re scrambling to juggle work, child care, and your own health.After-school care can be $19,000Let’s not forget after-school care. Most working parents can’t clock out by 3 p.m. to pick up their kids, so they rely on after-school programs. Turner estimates that after-school care sets her back about $19,000 per year. Add that to the no-school days and holidays, and she’s already looking at a $22,800 bill for child care just to keep her kids safe while she works.Don’t forget about summer campAnd then there’s summer camp. Turner points out that her kids’ summer break is 10 weeks long. “We’re looking at $7,000 just for camp,” she explains, “and that’s on the low end!” Combine that with the school-year child care costs, and Turner is spending over $30,000 annually on child care alone — and that doesn’t even include extracurricular activities or unexpected expenses like field trips.Crunching the numbersThe average dual-income household earns about $127,590 per year before taxes. After tax, that leaves a typical family around $112,279 in take-home pay.Next, subtract $30,000 for child care expenses, leaving $82,279.After accounting for average living expenses for a family of four, which is about $58,000 annually, you’re left with $24,279 for the year.Financial experts suggest saving 15% of your income — about $19,139 for this family — for retirement, which leaves $5,140.If you’re saving for college, you may need to contribute several thousand per year to fully fund a four-year degree. That could either leave you with a small cushion or could exceed your remaining budget, potentially leaving you short on funds for unexpected expenses like medical bills, car repairs, or family vacations.Of course, saving for college is optional, and there are scholarships, financial aid, and more to help bring those costs down. Saving for retirement is a higher priority, so be sure that’s budgeted first before saving for college.Looking for a good plan to get started with retirement savings? Check out our list of the best IRAs.Managing school schedules without breaking the bankIf you’re a parent, you know the headache of balancing work and your kids’ school schedules. Half-days, no-school days, and unexpected closures can send your budget into a tailspin. Here’s how you can take control:Plan ahead for no-school days: Look at the school calendar early. If your workplace offers flexible scheduling, try banking your PTO strategically for those 19 random days off. Or, team up with other parents to share child care duties.Budget for after-school care: With after-school options costing up to $19,000 annually, shop around for more affordable options. Consider alternatives like nanny-shares or asking a trusted neighbor if they can pitch in.Get creative with summer camps: Summer camp costs can be brutal, often exceeding $7,000. Look for discounted or city-sponsored programs and book early to get better rates. Also, mix in lower-cost activities like local day camps or sports clinics to spread out the expense.Maximize PTO and sick days: If you’re running low on PTO, check if your company allows unpaid leave or flexible hours. Create a backup child-care plan for sick days, like a family member or alternate sitter.The math just doesn’t workSo when Turner says it’s nearly impossible to raise kids and avoid debt or retire on time, she’s not exaggerating. The math simply doesn’t work. Even with an average dual-income household, you’re left scrambling between covering child care costs, managing daily living expenses, and trying to save for both retirement and your kids’ college tuition.Most families are left with no choice but to cut corners, take on debt, or delay retirement well beyond their 60s. Until we fix the skyrocketing child care costs and overhaul the system to support working parents, families will continue to struggle with this impossible equation.In the meantime, Turner’s viral TikTok video is a reality check for all of us doing the mental math on how to survive modern parenthood without sinking into debt.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Have you ever looked at your checking account and wondered if someone’s playing a cruel joke? Like, how is it possible to work full-time, raise kids, and somehow still be staring down the barrel of debt — or worse, delaying retirement until you’re 80?

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

TikTok star Paige Turner has done the math, and it’s worse than you think. It’s nearly impossible for most Americans to budget to raise kids, avoid debt, and retire on time. And honestly, she’s not wrong.

Let’s break it down, starting with the school schedule, because, spoiler alert, it’s a nightmare.

School schedules are a financial nightmare

If you’ve got kids in elementary school, you already know the chaos of juggling work and school schedules. Turner’s kids recently brought home their school calendar, and what she saw sent her into a panic. “They’ve got 12 half-days and seven no-school days this year,” she explains, “and that’s not even counting holidays like Veterans Day or Memorial Day.”

So, for 19 random days throughout the year, Turner is either burning through her PTO or shelling out money for child care — $90 per kid for a half-day and $120 for a full day. And Turner’s got two kids. “That’s $3,800 just to cover those days off,” she says, “and it doesn’t even include school vacations.”

Want to view all your child care (and other) expenses in one place? Check out our list of the best budgeting apps to help organize your finances.

Vacation days are a hidden expense

Then, there’s the dreaded school vacation weeks. Turner counted up 18 vacation days scattered across the calendar, including winter and spring breaks. “My husband and I combined have 35 PTO days,” she says, “but we need 37 to cover all these school days off!” And that’s not even factoring in the inevitable sick days when a kid comes home with the flu, and you’re scrambling to juggle work, child care, and your own health.

After-school care can be $19,000

Let’s not forget after-school care. Most working parents can’t clock out by 3 p.m. to pick up their kids, so they rely on after-school programs. Turner estimates that after-school care sets her back about $19,000 per year. Add that to the no-school days and holidays, and she’s already looking at a $22,800 bill for child care just to keep her kids safe while she works.

Don’t forget about summer camp

And then there’s summer camp. Turner points out that her kids’ summer break is 10 weeks long. “We’re looking at $7,000 just for camp,” she explains, “and that’s on the low end!” Combine that with the school-year child care costs, and Turner is spending over $30,000 annually on child care alone — and that doesn’t even include extracurricular activities or unexpected expenses like field trips.

Crunching the numbers

The average dual-income household earns about $127,590 per year before taxes. After tax, that leaves a typical family around $112,279 in take-home pay.

Next, subtract $30,000 for child care expenses, leaving $82,279.

After accounting for average living expenses for a family of four, which is about $58,000 annually, you’re left with $24,279 for the year.

Financial experts suggest saving 15% of your income — about $19,139 for this family — for retirement, which leaves $5,140.

If you’re saving for college, you may need to contribute several thousand per year to fully fund a four-year degree. That could either leave you with a small cushion or could exceed your remaining budget, potentially leaving you short on funds for unexpected expenses like medical bills, car repairs, or family vacations.

Of course, saving for college is optional, and there are scholarships, financial aid, and more to help bring those costs down. Saving for retirement is a higher priority, so be sure that’s budgeted first before saving for college.

Looking for a good plan to get started with retirement savings? Check out our list of the best IRAs.

Managing school schedules without breaking the bank

If you’re a parent, you know the headache of balancing work and your kids’ school schedules. Half-days, no-school days, and unexpected closures can send your budget into a tailspin. Here’s how you can take control:

Plan ahead for no-school days: Look at the school calendar early. If your workplace offers flexible scheduling, try banking your PTO strategically for those 19 random days off. Or, team up with other parents to share child care duties.Budget for after-school care: With after-school options costing up to $19,000 annually, shop around for more affordable options. Consider alternatives like nanny-shares or asking a trusted neighbor if they can pitch in.Get creative with summer camps: Summer camp costs can be brutal, often exceeding $7,000. Look for discounted or city-sponsored programs and book early to get better rates. Also, mix in lower-cost activities like local day camps or sports clinics to spread out the expense.Maximize PTO and sick days: If you’re running low on PTO, check if your company allows unpaid leave or flexible hours. Create a backup child-care plan for sick days, like a family member or alternate sitter.

The math just doesn’t work

So when Turner says it’s nearly impossible to raise kids and avoid debt or retire on time, she’s not exaggerating. The math simply doesn’t work. Even with an average dual-income household, you’re left scrambling between covering child care costs, managing daily living expenses, and trying to save for both retirement and your kids’ college tuition.

Most families are left with no choice but to cut corners, take on debt, or delay retirement well beyond their 60s. Until we fix the skyrocketing child care costs and overhaul the system to support working parents, families will continue to struggle with this impossible equation.

In the meantime, Turner’s viral TikTok video is a reality check for all of us doing the mental math on how to survive modern parenthood without sinking into debt.

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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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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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[[{“value”:”Image source: Getty Images
Everyone talks about passive income — how to earn it, how to maximize it, and so on. But the truth is, if you have never generated passive income before, it can seem a bit daunting, bewildering, even overwhelming. This is especially true if you may be looking to generate significant passive capital that you might like to then more actively invest.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. But before thinking so big, consider thinking small instead. Starting small is a better, smarter, and easier passive investment strategy, especially for beginners.The key here is to focus on a few approaches that do not require ongoing effort once set up. Once you learn how to generate small amounts of passive income, then you can graduate to pursuing larger amounts. But to get started, let’s keep it modest.Invest in dividend-paying stocksOne of the most reliable simple ways to build passive income is through buying and holding stocks that pay dividends. By investing in companies that have a history of paying consistent dividends, you can start earning passive income with minimal effort.We’ve done the hard work of evaluating brokers. Click here for our picks for the best online stock brokers to help you get started with investing.For example, if you invest $10,000 in a stock that pays an annual 4% dividend, you would earn $400 annually, essentially by doing nothing. To reach $1,000 a month, all you need do is:Invest more money, orReinvest your dividends to grow your principalThe key to success here is in selecting stable, reliable, stocks that have a solid track record of paying dividends. Do your homework and look for blue-chip companies (i.e. established, financially stable, profitable companies that are publicly traded).Rent out your spare spaceIf you have an extra room, garage, or storage space, you can generate passive income simply by renting it out. Websites like Airbnb make it easy to connect with renters (indeed, 4 million people globally rent out spaces using Airbnb). Depending on your location, renting out a spare room could bring in $100 per night or more. Even at a conservative rate, renting out space for a few weekends a year could quickly add up to $1,000.Or, what if you have a garage or storage shed that you do not really use? You could rent it out for $100 per month and make $1,200 in a year, really by doing nothing. See? Simple!High-interest savings accounts or government bondsSimilar to the investing in dividend stock strategy above, here you would put money away in high-interest savings accounts or buy government bonds. No, these do not generate “wow” returns, but we are not looking for that; we are looking for modest, easy, simple, passive returns.High-interest savings accounts and government bonds fit that bill. They are low-risk ways to earn passive income. Click here for our favorite high-yield savings accounts.If, for instance, you find a savings account that offers 4% interest, and deposit $25,000 in it, it will generate, yep, $1,000 annually.Similarly, U.S. Treasury bonds also offer stable returns with minimal risk, making them ideal for this type of investment. While Treasury bonds are subject to federal income taxes, the good news is that they are exempt from state and local income taxes. They can be bought through your own brokerage account or directly from the government at Treasurydirect.gov.So yes, generating $1,000 in passive income is a realistic goal if you start small and approach it strategically. Create a few of these and before you know it, your passive income streams will grow and help make you some significant money while you sleep.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Everyone talks about passive income — how to earn it, how to maximize it, and so on. But the truth is, if you have never generated passive income before, it can seem a bit daunting, bewildering, even overwhelming. This is especially true if you may be looking to generate significant passive capital that you might like to then more actively invest.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

But before thinking so big, consider thinking small instead. Starting small is a better, smarter, and easier passive investment strategy, especially for beginners.

The key here is to focus on a few approaches that do not require ongoing effort once set up. Once you learn how to generate small amounts of passive income, then you can graduate to pursuing larger amounts. But to get started, let’s keep it modest.

Invest in dividend-paying stocks

One of the most reliable simple ways to build passive income is through buying and holding stocks that pay dividends. By investing in companies that have a history of paying consistent dividends, you can start earning passive income with minimal effort.

We’ve done the hard work of evaluating brokers. Click here for our picks for the best online stock brokers to help you get started with investing.

For example, if you invest $10,000 in a stock that pays an annual 4% dividend, you would earn $400 annually, essentially by doing nothing. To reach $1,000 a month, all you need do is:

Invest more money, orReinvest your dividends to grow your principal

The key to success here is in selecting stable, reliable, stocks that have a solid track record of paying dividends. Do your homework and look for blue-chip companies (i.e. established, financially stable, profitable companies that are publicly traded).

Rent out your spare space

If you have an extra room, garage, or storage space, you can generate passive income simply by renting it out. Websites like Airbnb make it easy to connect with renters (indeed, 4 million people globally rent out spaces using Airbnb). Depending on your location, renting out a spare room could bring in $100 per night or more. Even at a conservative rate, renting out space for a few weekends a year could quickly add up to $1,000.

Or, what if you have a garage or storage shed that you do not really use? You could rent it out for $100 per month and make $1,200 in a year, really by doing nothing. See? Simple!

High-interest savings accounts or government bonds

Similar to the investing in dividend stock strategy above, here you would put money away in high-interest savings accounts or buy government bonds. No, these do not generate “wow” returns, but we are not looking for that; we are looking for modest, easy, simple, passive returns.

High-interest savings accounts and government bonds fit that bill. They are low-risk ways to earn passive income. Click here for our favorite high-yield savings accounts.

If, for instance, you find a savings account that offers 4% interest, and deposit $25,000 in it, it will generate, yep, $1,000 annually.

Similarly, U.S. Treasury bonds also offer stable returns with minimal risk, making them ideal for this type of investment. While Treasury bonds are subject to federal income taxes, the good news is that they are exempt from state and local income taxes. They can be bought through your own brokerage account or directly from the government at Treasurydirect.gov.

So yes, generating $1,000 in passive income is a realistic goal if you start small and approach it strategically. Create a few of these and before you know it, your passive income streams will grow and help make you some significant money while you sleep.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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 

[[{“value”:”Image source: Getty Images
Credit cards can be a double-edged sword. They offer convenience, consumer protections, and built-in benefits, and some of the best credit cards pay cash back and other fun rewards.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. But just like with any financial product, you need to be a well-informed consumer before you open a credit card account. Credit card companies make money by getting people to spend money with their cards. And these companies use psychologically tempting offers to motivate people to spend. Some people end up spending too much and get into credit card debt.Let’s look at a few of the powerful and sometimes-sneaky tricks that credit card companies use — and how you can get the best value out of credit cards while avoiding debt.1. 0% introductory APRMany credit cards offer a special 0% introductory APR period when you open a new account. For example, some cards might offer 12 months of 0% APR on new purchases.Why this is a trick: If you’re not careful and run up a big balance, you’ll owe interest on that entire balance as soon as the introductory 0% APR period ends. This can cost you much more money in interest than you expected.How to avoid this trick: Pay off your credit card balance in full each month. Just ignore the 0% APR and pay your credit card bill on time, like normal. If you never run up a credit card balance, it doesn’t matter what the APR is — because you’re not paying interest!One situation when 0% APR on a credit card can be a good thing? When you use a 0% APR balance transfer credit card. These credit cards can be a smart way to pay off credit card debt if you transfer higher-APR balances to your new 0% APR credit card.Ready to get out of credit card debt? Click here to see our picks for the best 0% balance transfer credit cards — and start paying off credit card debt faster. But make sure you have a plan to pay off your entire debt before the end of the 0% APR period. And be aware of balance transfer fees.2. Big-spending welcome offersMany of the best credit cards have special welcome offers that give you reward points or cash back if you spend a certain amount of money on the new card.Why this is a trick: Some people might spend too much money chasing after that welcome bonus. For example, let’s say you have a new credit card welcome offer that requires you to spend $6,000 in three months. If you normally spend $500 per month on your credit card, having to hit that $6,000 target might cause you to make some big, extravagant purchases like a new TV, expensive clothes, or a big trip that you can’t actually afford.How to avoid this trick: You don’t have to overspend to earn a welcome offer. Instead, just spend like normal, but use your new credit card to pay for monthly bills that you already pay for with your checking account or debit card.For example, you can pay for utilities, cellphone service, home internet, auto insurance, groceries, and many other monthly expenses with your new rewards credit card. No outlandish purchases or extra spending required!3. Credit card rewardsMany credit cards offer cash back rewards, or travel reward points that can be redeemed for cheap flights, free hotel stays, and other valuable experiences.Why this is a trick: People might get so dazzled by earning 1% cash back or 3% travel rewards on a credit card that they go into credit card debt that costs them a lot more than they earn.How to avoid this trick: If you can avoid it, never, ever go into credit card debt. Pay off your credit card balance in full, on time, every month, and your credit card rewards will be worth it. If you pay interest on your credit card, the credit card company makes money off of you. But if you always pay off your credit card balance, credit card rewards let you make money off of your credit card.Bottom lineThe key to having a good experience with credit cards is to always pay off your credit card balance on time. Never go into credit card debt. Try to avoid owing interest on your credit card.Being a well-informed credit card customer can help you maximize the rewards of credit cards while avoiding the expensive downsides of high-interest debt.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Credit cards can be a double-edged sword. They offer convenience, consumer protections, and built-in benefits, and some of the best credit cards pay cash back and other fun rewards.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

But just like with any financial product, you need to be a well-informed consumer before you open a credit card account. Credit card companies make money by getting people to spend money with their cards. And these companies use psychologically tempting offers to motivate people to spend. Some people end up spending too much and get into credit card debt.

Let’s look at a few of the powerful and sometimes-sneaky tricks that credit card companies use — and how you can get the best value out of credit cards while avoiding debt.

1. 0% introductory APR

Many credit cards offer a special 0% introductory APR period when you open a new account. For example, some cards might offer 12 months of 0% APR on new purchases.

Why this is a trick: If you’re not careful and run up a big balance, you’ll owe interest on that entire balance as soon as the introductory 0% APR period ends. This can cost you much more money in interest than you expected.

How to avoid this trick: Pay off your credit card balance in full each month. Just ignore the 0% APR and pay your credit card bill on time, like normal. If you never run up a credit card balance, it doesn’t matter what the APR is — because you’re not paying interest!

One situation when 0% APR on a credit card can be a good thing? When you use a 0% APR balance transfer credit card. These credit cards can be a smart way to pay off credit card debt if you transfer higher-APR balances to your new 0% APR credit card.

Ready to get out of credit card debt? Click here to see our picks for the best 0% balance transfer credit cards — and start paying off credit card debt faster. But make sure you have a plan to pay off your entire debt before the end of the 0% APR period. And be aware of balance transfer fees.

2. Big-spending welcome offers

Many of the best credit cards have special welcome offers that give you reward points or cash back if you spend a certain amount of money on the new card.

Why this is a trick: Some people might spend too much money chasing after that welcome bonus. For example, let’s say you have a new credit card welcome offer that requires you to spend $6,000 in three months. If you normally spend $500 per month on your credit card, having to hit that $6,000 target might cause you to make some big, extravagant purchases like a new TV, expensive clothes, or a big trip that you can’t actually afford.

How to avoid this trick: You don’t have to overspend to earn a welcome offer. Instead, just spend like normal, but use your new credit card to pay for monthly bills that you already pay for with your checking account or debit card.

For example, you can pay for utilities, cellphone service, home internet, auto insurance, groceries, and many other monthly expenses with your new rewards credit card. No outlandish purchases or extra spending required!

3. Credit card rewards

Many credit cards offer cash back rewards, or travel reward points that can be redeemed for cheap flights, free hotel stays, and other valuable experiences.

Why this is a trick: People might get so dazzled by earning 1% cash back or 3% travel rewards on a credit card that they go into credit card debt that costs them a lot more than they earn.

How to avoid this trick: If you can avoid it, never, ever go into credit card debt. Pay off your credit card balance in full, on time, every month, and your credit card rewards will be worth it. If you pay interest on your credit card, the credit card company makes money off of you. But if you always pay off your credit card balance, credit card rewards let you make money off of your credit card.

Bottom line

The key to having a good experience with credit cards is to always pay off your credit card balance on time. Never go into credit card debt. Try to avoid owing interest on your credit card.

Being a well-informed credit card customer can help you maximize the rewards of credit cards while avoiding the expensive downsides of high-interest debt.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

“}]] Read More