Money Management

The U.K. is a great place to visit, unless you’re trying to use points to get there. Here’s the trouble, and what to do about it. [[{“value”:”

Glasgow, Scotland is one of my favorite cities in the world. Unfortunately, it’s one of the hardest places to get to using travel rewards — which is how I pay for most of my travel.

Why is it so hard to get to the 7th most populated city in the U.K.? The same reason as the other six: surcharges.

You see, many award flights to or from the U.K. (or sometimes just award flights with layovers in the U.K.) tack on outrageous “carrier-imposed fees” that can easily top $700 per flight for business class. And yes, that’s on top of the tens of thousands of miles you’re also paying.

Is this still less than paying cash? Sure. Should you suck it up and pay the surcharges? Absolutely not.

Pick your poison: Money, miles, or time

It’s worth noting here that not every carrier imposes those surcharges on the way there. In my experience, however, these types of award flights tend to have (at least) one of two issues:

Excessive layovers: Get ready to enjoy two separate layovers on what would otherwise be a six-hour direct flight! (I saw one flight from JFK to London that stopped in both Manchester, England and Dublin, Ireland before getting to London.)Very high miles cost: Who doesn’t want to fork over 245,000 for a one-way business class fare?!

If you don’t mind dealing with one — or both — of these issues, then feel free. Or, you can use my favorite workaround.

Fly into Europe and skip the nonsense

The simplest way to skip the stupid surcharges — be they in your money, miles, or your time spent in layovers — is to avoid having your destination in the U.K. entirely.

No, I’m not saying don’t visit the U.K. Instead, I’m saying you need to take a minor detour.

Instead of booking your award trip to a U.K. airport, choose to fly somewhere in Ireland or mainland Europe. You’ll miss out on a lot of the silly surcharges, and you may even open up some more award flight options (there are a lot more airlines going all over Europe than the few heading to the U.K. each day).

Once in Europe, you can take a cheap flight or train ride to your U.K. destination, all while spending less money out of pocket than your surcharges would have cost.

Myriad ways to get to the U.K.

How to travel that last leg to your destination in the U.K. will depend on a lot of things, including your budget, your timeline — and your sense of adventure.

For example, you can easily take a one-hour flight from Dublin to London if speed is your goal. Ryanair will take you there for $25 if you don’t need overhead bin access. British Airways and Aer Lingus will take you — and your bags — for around $85.

Flights from mainland Europe are a little more expensive, but not by much. Flying from Paris to London starts around $40 (no bags), and Amsterdam to London starts around $60 (no bags). Both cities have flights on non-discount airlines — i.e., you get overhead bin space — for around $130.

Consider the train for added adventure!

If you really want to make the detour memorable, consider taking the train. The trip from Amsterdam to London takes just four hours (Paris to London is only 20 minutes longer). Tickets start around $150, which is still less than your typical business class ticket surcharge. Plus, you’ll enjoy idyllic European scenery and a thrilling trip under the English Channel!

Enjoy your serendipitous detour

Another bit of advice: Choose a city you have yet to explore and make a destination of it in and of itself. Give yourself a day or two in the city before you move on to your eventual U.K. destination. (I really love the hop-on-hop-off tour buses for a quick-and-dirty way to see the sights!)

Remember: This trick works both ways

The surcharges we’ve been talking about this whole time aren’t limited to your flight to the U.K. In fact, they can be even worse on your way home.

Happily, you can use the same trick you used to get there without surcharges, to get back home without them. Instead of flying out of the U.K. directly, hop a quick flight or take a short train ride into a European country for a much cheaper experience.

Using travel rewards to fly for free is a great way to make travel accessible on any budget. But keep an eye out for extra fees and other gotchas that can sour the experience.

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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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Cash back cards are a valuable tool that can help parents save money. Check out some of the best ways to use cash back cards in this guide. [[{“value”:”

Life is expensive for most Americans, and especially for parents. Raising a child to age 17 is estimated to cost as much as $310,605, according to data on child-raising costs gathered by The Motley Fool Ascent.

You may find yourself looking for ways to get your expenses down so you can free up extra money to save. Cash back credit cards are a great way to do that — some earn as much as 6% back on certain purchases! Here’s what you can do to get the most value out of this type of credit card.

1. Get a card that earns bonus cash where you spend the most

This is one of the easiest ways to earn more cash back. Consider where you spend the most and get a card that earns bonus cash there.

You can find cash back cards with all kinds of bonus categories. For many parents, gas and groceries credit cards are the best choice. Those tend to be two of the biggest expenses in a typical budget, especially if you commute to work and you mainly cook at home.

Or, if you order through Amazon all the time, you could get a Prime Visa. It earns a high cash back rate on all Amazon orders.

2. Open a 2% card for all your non-bonus spending

Most cash back cards with bonus categories earn 1% outside of those categories. You get a great rate in the places you spend the most, but you don’t earn nearly as much everywhere else.

That’s why some people decide to carry multiple cash back cards. They’ll get one or two (or more) cards with useful bonus categories. And they’ll also get a card that earns a flat rate of 2%. Whenever a purchase isn’t going to earn bonus cash, you can use your 2% card.

3. Put your cash back toward your financial goals

Cash back adds up over time. You could end up earning over $500 and possibly even over $1,000 per year this way.

One of the most common cash back mistakes is not having a plan for how you’ll use it. People who fail to plan ahead often find that the cash back they earn doesn’t seem to make much of an impact on their finances.

When you redeem cash back, put that money toward a financial goal you have. For example, if you redeem $50 in cash back, and you’re working on building an emergency fund, then transfer $50 to your emergency savings. If you want to invest money for your child’s college fund, you could use the money you save with cash back to fund a 529 plan.

4. Redeem your cash back every month

Lots of consumers aren’t in any hurry to use the cash back they earn. In The Motley Fool Ascent’s survey on credit card habits, 49% of Americans said they let rewards accrue for as long as possible.

It’s not the end of the world, but it’s better to redeem your cash back regularly. Your cash back isn’t getting more valuable while it’s sitting around. In fact, it’s getting less valuable due to inflation.

You’re much better off doing something with your cash back, such as depositing it in a savings account. Some high-yield savings accounts currently earn over 5%.

5. Always pay your credit cards in full

Last but not least, don’t carry a balance on your cash back cards. If you do, your card issuer can start charging you interest. All that money you’ve made from cash back will effectively be wiped out by interest charges.

It only makes sense to use cash back cards if you’re able to pay the bill in full every month. This is a good rule to follow with credit cards in general, so you don’t get charged any interest on your purchases. But if you ever need to pay off purchases over time, credit cards with a 0% intro APR are the best option.

The best thing about cash back cards is how easy they are to use. You don’t need to make any big changes to start saving money with them. Just use cash back cards on all your regular spending, pay your credit card bill in full, and redeem your cash back every month.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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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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Want to get a great deal on a car? Don’t forget about EV tax credits. See how you can get a discount of $3,750, $4,000, or more. [[{“value”:”

It often seems like there’s a lot of negativity in the media coverage of the electric vehicle (EV) market, and especially EV tax credits. EVs have been hyped and criticized. Some people proclaim EVs to be the inevitable future of transportation, while others object to the rapid push by the federal government to subsidize EVs.

Good-faith concerns and criticisms about EVs deserve to be heard and answered. But some of the negativity is unfair. Let’s look at a few realities about EV tax credits and whether or not buying an EV is a good deal for your budget.

Reality: Lots of cars qualify for new EV tax credits

There’s been a lot of media coverage about how hard it is to get EV tax credits, or how few new EVs actually qualify for the full $7,500 EV tax credit. It’s true that not every new EV will qualify; the federal government is trying to encourage people to not just buy “green” vehicles but to buy vehicles made in the U.S. To get the full $7,500, a new car needs to have its final assembly in North America and have its battery parts sourced from certain places.

As a result, not all makes and models of EV qualify for the full $7,500 of new EV tax credits. But the negativity is excessive. The list of vehicles that qualify for new EV tax credits is longer than you might think. As of May 7, 2024, according to the U.S. Department of Energy:

13 car companies’ EVs and plug-in hybrid electric vehicles (PHEVs) qualify for new EV tax credits of at least $3,750; and24 vehicles (EVs and PHEVs) qualify for the full $7,500 of new EV tax credit

If the EV you want is not on the list to qualify for new EV tax credits, you still might get a discount from the dealership. Some car makers are offering competitive discounts to match the EV tax credits, even if their vehicles don’t qualify.

Reality: Used EV tax credits might be a better deal

Want to buy a used car? The used EV tax credits might be an even better deal than new EV tax credits. You can get a used EV tax credit of up to $4,000, based on qualifying model year and sale price of the vehicle. And there are no limits on where or how the car was made — you can choose a much wider range of makes and models if you get a used EV tax credit.

I’m not in the market for a car in 2024. But if I was, I would go buy a used EV or plug-in hybrid and get that $4,000 used EV tax credit discount. There are deals to be had!

Reality: You can get EV tax credits immediately at the dealership

Lots of people might not realize just how easy it is to get EV tax credits. You don’t have to fill out a bunch of complicated IRS paperwork. Instead, the dealership helps you figure it out. The dealer can tell you which cars qualify for the EV tax credits, and you can get the tax credit as an immediate discount on the day you buy your car.

Receiving EV tax credits is not a complex process. This is not an extra hassle; it’s free money to help buy a car and fight climate change. (Terms apply; your income must be below certain levels to qualify for new or used EV tax credits.)

Bottom line

If you’re looking to buy a car in 2024, don’t overlook your options among used EVs and plug-in hybrid electric vehicles — especially if you have a garage or easy-to-access outdoor outlet so you can charge your car at home. Used EV sales have been slow in the past year, and there might be some great deals on a car lot near you.

If you find the right used EV or plug-in, you might get a car with tens of thousands of miles left under warranty, plenty of miles left on the battery, and you can get up to a $4,000 discount with used EV tax credits. Plus, a used (lower-priced) EV might help you get cheaper car insurance than a new vehicle. Be sure to shop around for EV car insurance before you start car-shopping.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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.
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 recommends Maker. The Motley Fool has a disclosure policy.

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The savings on gas alone can cover membership fees at Costco, but only if you visit regularly. Find out how often you need to go. [[{“value”:”

A Costco membership costs $60 for an entry level membership. You get a lot for your money when you sign up, including access to Kirkland-brand items that have lots of devoted followers.

Of course, you’ll want to make sure you’re saving enough money to justify paying the membership fees out of your bank account. There are lots of ways to do that. One of them is buying gas.

If you get gas regularly at Costco, the savings on fuel alone may be more than enough to make paying the $60 for an annual membership a no-brainer. How often do you have to visit for that to happen though? Here’s what you need to know.

Getting Costco gas this often can pay for the membership by itself

It’s a well-accepted fact that Costco gas is cheaper than the fuel at most other places. While the exact amount of savings you’ll get depends on factors like where you live and which club you visit, you can reasonably expect to save around $0.15 to $0.20 per gallon. Let’s say you save $0.17 per gallon when you fill up.

Now, the exact amount you need to fill up your tank will depend on just how much gas you get each time you go. Typically, most vehicle gas tanks hold between 10.5 and 18.5 gallons of gas. Let’s say that you’re putting in around 14.5 gallons each time you fill up your tank.

If you’re able to save $0.17 on 14.5 gallons of gas, each fill-up at Costco saves you around $2.47 compared with getting gas elsewhere. If you’re looking to cover your membership fee with gas alone, you’d need to get gas at Costco between 24 and 25 times per year. If you go around twice a month, you’ll easily do that.

Costco gas is just one way to cover your membership cost

Costco gas is just one of many things you can buy at the warehouse club. There’s plenty of other ways that you can justify spending $60 on a membership. For one thing, Kirkland-brand products at Costco are typically about 20% cheaper than name-brand competitors. If you can sign up for Costco and buy generic store-brand items, you can slash your grocery bills as a result of your Costco membership.

The gas savings is a big deal, though, especially since Costco’s gas is Top Tier™ certified, which means it has all sorts of benefits for your vehicle’s engine, including keeping it cleaner and allowing your car to run more efficiently.

If you’re on the fence about whether to join Costco or keep your Costco membership, ask yourself whether it would be convenient to visit there regularly for gas and whether you’re likely to fuel up around 24 times a year. If the answer to these questions is yes, then getting a membership could be an easy decision.

Top credit card to use at Costco (and everywhere else!)

If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.

Click here to read our expert recommendations for free!

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.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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