Money Management

Costco doesn’t always have the cheapest prices. But buying these specific items there is generally a good bet. [[{“value”:”

Some people don’t like the idea of having to pay to shop at a store, and as such, refuse to pay for a Costco membership. But many Costco members find that the savings they’re able to reap via Costco’s low prices more than make up for their membership costs.

In fact, there are certain items whose prices are pretty darn legendary at Costco. Here are some items where Costco’s prices generally can’t be beat.

1. Maple syrup

Because of the way maple syrup is sourced, it tends to be a pricey supermarket item. At Costco, however, you can buy a 33.8-ounce jug online for just $14.99, bringing your cost per ounce to $0.44. At a regular supermarket, you might pay roughly double per ounce.

And remember, $0.44 per ounce is the online price. Costco’s in-store prices tend to be even cheaper than its online prices because with the latter, it builds in the cost of shipping and handling. So if you’re a pancake aficionado, you may want to put maple syrup on your Costco shopping list.

2. Rotisserie chicken

These days, it’s hard to put a main course on the table for under $5. But thanks to Costco, you can serve up an entire rotisserie chicken for just $4.99.

One nice thing about rotisserie chicken is that it’s pretty versatile. You can whip up some rice or potatoes on the side, or take your leftover chicken, slice it, throw it on a bun, and make it lunch for the next day.

3. Gas

There’s a reason it pays to fill up your car during your Costco shopping. Costco’s gas prices are often the cheapest in town. And if you use your Costco credit card, you can score 4% cash back on your fill-ups.

That said, it’s a good idea to use apps like GasBuddy to compare the cost of fuel at nearby stations. And if you need a fill-up and don’t have plans to go to Costco, it may not make sense to drive miles out of your way to save a little money per gallon. What you save at the pump, you might waste by driving around and using fuel.

4. A hot dog and soda

Costco’s legendary $1.50 hot dog and soda combo has not risen in price since its introduction in 1985. If Costco were to adjust the price of that menu item for inflation, it could cost $4.50 today. Instead, Costco had pledged to leave the price of its combo intact for the foreseeable future.

And while it may not be the healthiest meal, it’s hard to beat the price. You’ll be hard-pressed to find as filling a meal for $1.50 elsewhere, even if you hit up various local fast food joints in town.

5. Gift cards

Most of the time, the cost of a gift card will match its face value. A $100 gift card to your local spa, for example, will usually have a $100 price tag.

At Costco, though, you can commonly find gift cards at below face value. Case in point: Right now, you can purchase $75 worth of Subway gift cards for only $59.99. That’s a fantastic deal if you’re someone who buys lunch from Subway twice a week.

In the course of your shopping, you may come across items that are more expensive at Costco than a competing retailer. But for the most part, these five items are likely to be cheaper at Costco than anywhere else.

However, if you’re buying big-ticket items, it’s always a good idea to compare prices rather than assume that Costco’s price point will always be the lowest. It’s OK to spring for a $1.50 Costco lunch without exploring outside options. But if you’re buying things like furniture, a laptop, or a vacation, always do your research to make sure you’re getting the best deal for your personal finances.

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.

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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.Maurie Backman 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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High-yield savings accounts can help upcoming college students maximize their savings. Here are four tips to get it done. [[{“value”:”

Traditional savings accounts, to put it lightly, tend to offer a paltry interest rate. Really, they’re just there to act as a virtual piggy bank, holding that cash until you need it, rather than offering perks. Luckily, there is something better: High-yield savings accounts (HYSAs). These offer much higher APYs than traditional savings accounts, as long as you meet the requirements.

If you’re looking for a way to maximize your savings with a HYSA, here are the top hacks to employ as an incoming college student.

Shop around for HYSAs

If there’s one universal truth about banking products, it’s this: You have to shop around to get the best deal. That’s because every bank that offers a HYSA will have their own requirements to get that elevated APY, and some may offer more perks than others. So it’s important to understand exactly what you’re getting out of the deal before signing up.

You should look closely at the requirements portion, since it will dictate the rate you’re eligible for. As an example, one bank might require you to have at least $100 to open the account, while another might require a $300 direct deposit each month to actually get the high rate that’s often presented as a perk of these accounts. Make sure you can qualify for the higher APY, and that there aren’t fees that will eat into your cash, then consider any other offered perks to narrow down your account search.

Keep the HYSA with a different bank

Assuming you already have a checking account, you should consider keeping that cash and your savings in separate banks. This will make it just a bit less convenient to access that saved money, allowing it to grow. For example, using two different banks might require you to initiate an online transfer that will take a day or two to go through, which can give you more time to make important spending decisions. So if you’re just getting started with managing money and you’re worried about handling it responsibly, this can be useful.

Of course, expenses may come up that necessitate withdrawing money from your high-yield savings account, so you’ll want to consider that when figuring out how much to put away into savings, versus how much to keep in your checking account as an immediate buffer.

Make a plan for that cash

Saving money is always a good idea, especially when you’re earning a high interest rate. But you need to have a clear vision for how you’ll use it if you want to make the most of it, and stay motivated. Typically, it’s best to create an emergency fund that you can tap into if something urgent and necessary comes up. (Think: A hospital visit, a car repair, or weathering a job loss.) In general, it’s best to aim for at least three to six months’ worth of necessary expenses. So if you need $500 a month to ensure that your needs are met, you’d want a $1,500 to $3,000 emergency fund.

Keep in mind that this is meant to be a long-term goal. And you should expect that your emergency fund balance will fluctuate over time, because life can get unexpectedly expensive.

But you may also have financial goals that you want to save for along the way. In that case, be sure to figure out exactly how much each goal will cost, and divide that by your timeline to figure out how much money to put toward that goal each month.

Embrace automatic transfers

Even if you have a variable income, auto transfers can be a fantastic way to ingrain the habit of saving money. And that’s a habit that you’ll need for the rest of your life — take it from someone who lived on credit cards all through college, and paid for it for years after. Because the money is going to your savings account automatically, you don’t have to worry about making the decision to save every single month. (Plus, this may even be part of the requirement to get that higher rate.)

The key here is selecting the amount you can realistically afford to automatically transfer from your usual account. That means you’ll have to take a close look at your budget to see how much wiggle room there is, and if you need to make any changes to your spending habits to make it work. Even if you can only swing a $25 monthly transfer, that’s going to be much better than skipping it. And remember: You can always adjust it to match your needs later on.

A high-yield savings account can be a great financial tool, especially for future college students. As long as you make sure that your money has been given a purpose and the opportunity to grow, you’ll be setting yourself up for long-term success.

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Car insurance rates vary by driver and state. Here are the 20 states where drivers pay the most. [[{“value”:”

Car insurance rates continue to creep up, and in some states, drivers could buy a used vehicle for less than it’ll cost them to insure it for a year. Right now, there are 20 states with average annual premiums over $3,000 — and drivers in one state pay close to double that.

This isn’t always due to factors that residents can control. No one has the power to stop natural disasters or reduce the population density of their city. But with smart shopping behavior, it’s still possible to get affordable car insurance, even in the most expensive states.

Twenty states with the highest average auto insurance premiums

The following 20 states have the highest average annual car insurance premiums:

A lot of the states here are concentrated in New England and the eastern seaboard. These tend to be more densely populated states, and more drivers in a small area leads to an increased risk of accidents as well as theft and vandalism. Close proximity to the coast also increases the risk of loss from natural disasters, like flooding or hurricanes.

But other factors influence auto insurance rates as well. Michigan tops the list in part because it has a no-fault system. This means that all drivers bill their own insurance for injuries following a crash, regardless of who was at fault. Michigan is the only no-fault state that requires its drivers to carry coverage that provides unlimited lifetime medical benefits, which raises bills significantly. To make matters worse, the high costs lead many to skip insurance. That increases the risk of getting into accidents with uninsured drivers, which raises average premiums even more.

It’s also worth pointing out that rates vary considerably even within the above states. Urban areas tend to have higher rates than rural areas, largely due to population density and the risks it brings.

How drivers can save

There are three important steps drivers can take to reduce their auto insurance costs, whether they live in one of the 20 above states or not.

1. Shop around

Each insurer evaluates risk differently and that leads to different rates. Some companies penalize drivers more harshly for accidents or DUIs, while others put more weight on a driver’s age and experience behind the wheel. These formulas are proprietary, so the only way to know which companies offer the best deals to a specific person is to get quotes.

Most car insurance companies have online quote tools, so it’s possible to get a rate estimate in just a few minutes. Compare prices, coverage, and customer service from at least three to five insurers before settling on one.

2. Claim discounts

Nearly all auto insurers have discounts to help select drivers save, but they vary in terms of which discounts they offer. Those belonging to specific groups, like veterans or EV owners, could do better by seeking out insurers that have car insurance discounts tailored to them.

Companies usually apply discounts automatically, though there are a few discounts drivers may need to apply for. Driver monitoring programs, for example, require policyholders to opt in for an immediate discount and a chance at future savings. This is an option worth considering for those comfortable with these programs.

3. Raise the deductible

Car insurance deductibles affect premiums. A lower deductible leads to a higher premium while a high deductible lowers premiums. Raising the policy’s collision and comprehensive deductible to $1,000 can lower premiums by 40% or more, according to the Insurance Information Institute.

The downside to this is that drivers will have to pay more out of pocket in the event of an accident. But this might not be a problem for those able to save for this deductible in an emergency fund.

Taking the above steps will almost certainly help drivers find cheaper car insurance, but every person’s mileage will vary. Factors like the driver’s age, vehicle make and model, and accident history still have a big influence on the final rate.

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CDs require you to stay invested to avoid penalties, which means giving up liquidity for your money. Read on to learn why that can be a good thing. [[{“value”:”

When you consider opening a certificate of deposit (CD) and you’re evaluating the pros and cons, one big disadvantage is the fact you give up liquidity in the process. Basically, that means you can’t just take your money out whenever you want. You must agree to leave it invested until the CD matures — which could be months or years depending on the CD term you choose.

Obviously, agreeing to leave your money locked up and not being able to take it out when you want it isn’t ideal. It means giving up flexibility. But while this is one big reason why some people opt to keep their money in a savings account rather than CDs, there are times when it can actually be a huge benefit. Here’s why.

CD penalties could help you make the right choices

There’s a simple reason why the lack of liquidity can sometimes be a big benefit of putting money into CDs: The fact that you’ll be penalized if you withdraw your money earlier could serve as a really strong incentive to actually leave your money invested for the time you have planned.

When you keep your money in a savings account and can take it out any time, it can be tempting to do that if you have expenses you want or need to cover. If your car goes on the fritz and you don’t have the cash to pay for repairs, or if a really great deal on an amazing vacation comes up, you might be inclined to just pull money out of savings and say you’ll put it back later.

There’s no real consequence to doing that — other than you end up using money that you had earmarked for savings. And that may not be enough of a deterrent to stop you.

When you know you’ll face a financial penalty if you withdraw your cash early, though, that’s a different story. Instead of pulling that money out of a CD and paying a big fee that could equal as much as 90 or 180 days of simple interest, odds are good you’ll look into other solutions. This could mean waiting to buy the items if you can, or maybe even picking up some overtime or a side gig to earn the money rather than taking the financial hit of breaking your CD’s term early.

Take advantage of the extra motivation that a CD penalty can offer

Obviously, you don’t want to put money in CDs if you know there’s a good chance you’ll have to take it out. That’s why your emergency fund doesn’t belong in a certificate of deposit. It doesn’t make sense to set yourself up to have to pay a penalty.

But if you have money you want to save for something you won’t need until at least three months in the future, you should seriously consider investing it in a CD. By doing so, you create some added protection against impulsive decisions that could lead you to fall short of your goal. The other benefits CDs offer, like a higher rate than you’ll find on most savings accounts, are an added bonus on top of the fact that the penalty will help you find the willpower to stay the course.

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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.
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There’s one accounting move that could do a world of good for your company. Read on to see what it is. [[{“value”:”

When you open a small business, you may quickly reach a point where you need to hire outside help for various tasks. If you don’t have a marketing background, for example, you may need to bring in a consultant to run campaigns or set up a social media page for your business. And if you don’t have a human resources background, you may need to hire a benefits coordinator who can do things like set up health insurance for your company and implement time off policies.

Similarly, if you’re not an accountant but have a good head for numbers, you may be inclined to purchase accounting software and oversee your company’s finances yourself. But you might soon realize just how much you’re spinning your wheels.

Not only is small business accounting a time-consuming task, but there are many nuances involved. And even if you manage to make the numbers match up, you risk running into issues with reporting and compliance if you’re not an actual accountant yourself. That’s why it pays to outsource your small business accounting — but not just to any professional.

Find someone with actual small business experience

There are plenty of professionals out there who, technically speaking, have the knowledge and certifications to do small business accounting work. But if you want the best results for your business, aim to hire an actual small business accountant — meaning, someone who largely focuses on small businesses and has extensive experience in that arena.

Now in the course of hiring an accountant, it’s important to check for credentials. And you probably know to look for a CPA. But you may want to take things a step further and find someone with a CMA (certified management accountant).

While a CPA is a respectable credential in its own right, having a CMA credential generally reflects a deeper understanding of matters related to businesses. An accountant with a CMA designation can help you do more than just manage cash flow and file your taxes accordingly — they can also help you budget more efficiently and make savvy decisions to maximize your business income.

It pays to start by asking around

Finding a small business accountant may be a process. And it’s important to interview different professionals and identify the best person for the job.

To get started, though, reach out to your network of small business owners and ask for recommendations. From there, should you choose to focus on a CMA professional, that’ll be one way to whittle down your options.

It’s also important to understand how different professionals operate. Ask questions that include:

What’s your fee structure?How much time will you be able to dedicate to my business each month?What strategies do you use to save companies like mine money?What are some of the biggest tax challenges small businesses face, and how do you address them?

All told, hiring the right accountant could truly make or break your business. Take the time to find the ideal person, so your business can be as successful as you want it to be.

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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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CDs have great perks for retired folks. Keep reading to learn why they’re worth considering if you’re no longer working. [[{“value”:”

You did it — you successfully concluded your career, and now you’re no longer earning a regular paycheck from a job. Instead, you’re relying on Social Security, your investments, and maybe a pension (if you’re lucky).

Is it worth putting some of your hard-earned cash into certificates of deposit (CDs) at this point in your life? Absolutely — and here’s why.

1. CDs are basically risk-free

Assuming you’re opening them with FDIC-insured banks (or NCUA-insured credit unions), CDs are a risk-free way to grow your money over time. Standard FDIC limits protect up to $250,000 of your cash in a deposit account like a CD. This means that if your bank goes under, you won’t lose your money. This will surely help you sleep better at night.

In addition to this protection, the cool thing about a CD is that you can do the math when you open the account and figure out (based on the term, rate, and your deposit) how much money you’ll have at the end of the account’s term. You can’t say this about, say, stock market investing — especially not over a short period. For example, if you open a 1-year CD paying 4.5% and put in $5,000, after a year, you stand to earn $225, and will then have $5,225.

2. A CD ladder can give you predictable income

If you’ve got a good-sized chunk of money you want to earn predictable and risk-free interest from, why not consider building a CD ladder? Let’s say you have $50,000 you want to put into CDs. You could divide up that money in five $10,000 chunks and use it to open:

A 1-year CDA 2-year CDA 3-year CDA 4-year CDA 5-year CD

This way, you’ll have some money freeing up every year. And when it does, you can use it — or put it into a new 5-year CD and let it continue growing. You can also build your CD ladder with shorter-term CDs alongside longer-term ones if you’d rather have money coming available more often. Interestingly, these are the CDs paying better lately, thanks to the higher federal funds rate. According to the FDIC, the average rates on CDs with terms ranging from three to 24 months are higher than those on CDs with longer terms.

3. CDs are easy to open

Finally, you should consider CDs as a retiree because your time is precious. The odds are you have a million better things to do than make a trip to the bank and wait around to speak to a representative about opening a CD account.

Thankfully, many of the best CD accounts available these days are offered by online banks, which don’t have physical branches. This means you can easily open an account on your computer, without even putting shoes (or pants) on. It’s also easy to compare rates, since they’re available online; we rate the best CDs here at The Motley Fool Ascent.

It’ll be easier to open a CD with a bank you already do business with since that bank already has your information and if you have money at that bank, you can quickly transfer it to fund your new CD. But even if the bank is brand new to you, it’s still not difficult to link a savings or checking account at another bank and move the cash over. In short, investing in CDs can save you a lot of time — once the account is open and funded, all you have to do is sit back and wait for your interest to grow.

CDs are certainly worth your time and money as a retiree. It’s a good idea to diversify your income streams, and if you already have a 401(k) or individual retirement account (IRA) alongside Social Security payments, CDs will provide one more way to ensure your financial needs are met. Why not give CDs a closer look today, since rates are higher than we’ve seen in years?

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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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