Money Management

International vacations are already four-figure affairs. Avoid boosting the cost even more by skipping this nuisance fee. [[{“value”:”

Traveling abroad is a fantastic way to experience exciting new places, people, and foods. Unfortunately, it’s not the cheapest vacation you can take. A typical international trip can cost upward of $270 a day according to some estimates.

With the trip already running you four figures on necessities alone, the last thing you need is an extra credit card fee increasing your costs. Which is why you really need to avoid foreign transaction (FX) fees.

Using a credit card abroad

One of the fun culture shifts that happen abroad is you’re now in a different financial ecosystem. The country will have its own banking system and likely its own currency. The really amazing part, though, is that your U.S.-issued credit cards will still work just fine.

A Mastercard is a Mastercard no matter where you are. And the same is true of Visa, Amex, and Discover. As long as the merchant accepts that network, your card will work. (Some issuers don’t even require notification of travel, but check with your issuer just in case.)

However, depending on the card you have, you may have to pay an extra fee for using your card out of the country. That’s the foreign transaction fee.

Foreign transaction fees 101

Essentially, cards with a foreign transaction fee will charge the fee for any transaction that:

Is in a foreign currency, or;Routes through a foreign bank

So, if your card has an FX fee, simply making a purchase while in another country will trigger the fee whether you purchase in the local currency or in USD because the purchase will still route through the local banking system.

In other words, even your hotel bookings will likely trigger an FX fee because the hotel uses the local banking system. The same could be true of your airfare, as well, though sometimes you can avoid it by purchasing through a domestic airline or booking service.

A 3% fee can add up fast

FX fees can vary a bit, but the most common fee I see is for 3% of the transaction amount. While 3% may not sound like a lot, here’s how that adds up over the course of a pricey international trip:

Even — or, perhaps, especially — on a budget trip, that FX fee can mean you have to skip the fancy bon voyage dinner before you head back home. Why give that money to the banks if you can use it for yourself instead?!

Avoid the fees by picking the right cards

The only way to avoid foreign transaction fees while traveling is to use a credit card that doesn’t charge them. Happily, they’re not all that hard to find.

Ideally, choose a great travel rewards credit card. Not only will they nearly always skip the FX fees, but the rewards you earn on your travel purchases will help pay for your next vacation. Plus, the best travel cards include perks that can make your travel even better, like airport lounge access or hotel status.

You don’t need a dedicated travel credit card to save on FX fees, however. Several issuers don’t charge FX fees on any of their cards, including Discover. You can also choose any card from Capital One. If those don’t suit, check out card options from your local credit unions, which tend to charge fewer fees by design.

Traveling abroad is something everyone should do. Experiencing other cultures is a key part of expanding our worldview. But you don’t need to also expand your travel budget with nonsense fees, so long as you choose the right cards to pay for your journey.

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.American Express is an advertising partner of The Ascent, a Motley Fool company. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Brittney Myers has positions in American Express. The Motley Fool has positions in and recommends Mastercard and Visa. The Motley Fool recommends Discover Financial Services and recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.

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CDs can be a great place to put your money, but there are a few drawbacks. Read on to find out a few common pitfalls investors should look out for. [[{“value”:”

Many certificates of deposit (CDs) are currently paying high rates, which is likely enticing for many young investors looking for a safe place to put some of their money. In addition to their currently high annual percentage yields (APYs), CDs have many benefits, including being FDIC-insured, which makes them a very safe place to invest money.

However, investors can make some mistakes with CDs, especially if it’s their first CD and they don’t understand how they work. Here are three common mistakes and how to avoid them.

Mistake 1: Not shopping around for the best rate

There are many CD options available, and many young investors may not know that the CD rates that banks pay can vary dramatically.

The national average APY for a 1-year CD is just 1.76%. That might not seem like a bad deal, until you compare it with some of the highest-yield CDs that pay above 5%. As with any investment, the larger the percentage you earn, the more money you make.

For example, if you invested $3,000 in a 1-year CD with a 1.76% APY, you’d earn $52.80 in interest by the end of the term. But if you chose a 5% APY CD, you’d earn $150 — nearly three times as much!

How to avoid it: Spending just a few minutes comparing CD rates online will help you avoid getting stuck with a CD with a low APY. You can compare high-yield CDs on The Ascent’s list of best CD rates. The best CDs offer a variety of terms and minimum deposits that will fit many investors’ criteria.

Mistake 2: Paying an early withdrawal fee

When you put your money into a CD, you agree to leave it there for a set time. This is referred to as the term of the CD, and it can range from a few months to several years.

Choosing the right CD term is important because you’ll be charged a fee if you withdraw your money early. Most CDs with terms longer than two years charge an early withdrawal penalty of 180 days of simple interest on the money you withdraw. CD terms that are two years or less usually charge 90 days of simple interest.

Let’s assume you invested $3,000 in a 2-year CD that pays 5% APY. If you took the money out after just 12 months, you’d be charged an early withdrawal fee of $230.69, effectively lowering your APY to just 2.56%.

How to avoid it: Think about how long you’re willing to part with your money for, and don’t invest money that should be in your emergency savings. If you’re investing in your first CD, choosing a shorter term may be a good idea so you can get the feel of having your money tied up for a while.

Mistake 3: Ignoring the impact of inflation

One thing young investors may overlook is the effect that inflation has on their money. While inflation always impacts people’s money, its acceleration in the past few years means that investors should pay even more attention to how much money their investments earn.

For example, the current rate of inflation is 3.48%. Let’s assume the inflation rate remained steady over the next year, and you invested in a 1-year CD that paid you 3.5%. In this scenario, the interest you earn over that year in the CD is only barely helping your money keep up with inflation.

How to avoid it: If your goal is to earn more money than you have right now rather than just maintain what you have, you should choose a CD APY rate as far above the inflation rate as you can get. Thankfully, that’s relatively easy, as many CD rates are at 5% or higher right now.

CDs can be an excellent place for young investors to put their money, but it’s essential to understand their limitations and drawbacks. Only put money into a CD that you won’t need to use during the term, and make sure you shop around to find the best available CD rate.

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 has a disclosure policy.

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It turns out a Walmart+ membership isn’t right for me, and you may not need one, either. Read on to learn more. [[{“value”:”

Last year, in the course of doing research for an assignment, I wound up digging into the details of a Walmart+ membership. And I learned that there are many perks to signing up.

For a cost of $98 per year, a Walmart+ membership gives you access to:

Free shipping on orders from Walmart.com with no minimumFree grocery delivery for orders of $35 or moreDiscounted gas at thousands of fuel stations nationwideFree video streaming with Paramount+Cash back on travel purchases

And more!

For a brief moment, I was tempted to sign up for a Walmart+ membership, especially since it comes with a free 30-day trial. But here’s why I ultimately opted not to.

1. I already have access to free two-day shipping with an Amazon Prime membership

The idea of being able to place an order on Walmart.com of any size and not incur a shipping charge is appealing. There are times when Walmart has the lowest price on an item I want, but my savings are negated by having to pay to have the item shipped.

And believe it or not, I don’t live particularly close to a Walmart store. I’m looking at about a 25-minute drive, or close to an hour round-trip. So it usually doesn’t pay to go to Walmart for a single item. What I save on its price, I might spend on gas for my fuel-guzzling minivan.

However, because I’m already paying for Amazon Prime, I have access to free two-day shipping. So I don’t think I’d use that feature of Walmart+ all that often.

Plus, while Walmart sometimes has a lower price than Amazon, in my experience, we’re usually talking about a given item costing $1 to $2 less. It’s not worth it for me to spend $98 a year to save $1 to $2 a month.

2. I enjoy a lot of savings on gas by filling up at Costco

Since my minivan tends to gulp gas, I’m always looking for ways to save money at the pump. But I already have a solution for that — filling up my car at Costco.

I tend to do a Costco shopping run every week, so while I’m there, I’ll commonly fill up my car to not only enjoy savings on gas, but accomplish a second errand without having to make a separate trip to a fuel station. As such, I don’t really need this benefit from Walmart+.

3. I don’t need access to another streaming service

When you join Walmart+, you get access to streaming content with Paramount+ for free. That’s a nice perk, but I don’t need it.

First of all, my Prime membership already comes with streaming content. On top of that, we have the Hulu/Disney/ESPN bundle and a subscription to Peacock. Oh yeah, and did I mention that we also have cable? At this point, I really can’t see my family getting great use out of yet another streaming service.

Try Walmart+ before you commit

There are plenty of great reasons to sign up for Walmart+, and you may feel that the perks are more than worth the $98-per-year membership cost. But before you get yourself a membership, consider whether you’ll really get great value out of it.

If you already pay for Prime like I do, free shipping isn’t a novelty. And if you’re someone who insists on shopping for groceries yourself, then you’re unlikely to benefit from the free grocery delivery you get from Walmart+. Similarly, if you don’t have a car or already have a source of lower-cost fuel, the gas savings Walmart+ offers may not really matter.

So all told, look at the big picture before making your decision. Better yet, instead of diving in, try the program out for free for 30 days. You may be surprised at how much use you get out of it. Or, maybe you won’t use it at all. Either way, you’ll be in a better position to make an informed decision about whether to join.

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

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Unlock funding secrets for your business venture. Dive into our insights and start thriving today. [[{“value”:”

Hey there, fellow dreamer and doer! If you’re like me, navigating the journey of turning an idea into a thriving business, you know the excitement — and the headaches — that come with it. Small businesses are the backbone of many industries and communities today, yet they face significant financial challenges.

Recent data from the Federal Reserve Banks’ Small Business Credit Survey reveals that 59% of small businesses reported being in fair or poor economic condition. With 85% experiencing financial difficulties in 2021, this trend underscores small businesses’ ongoing struggles.

Moreover, only 42% have their financing needs met, emphasizing a significant gap in financial services for these businesses. Despite these challenges, my adventure in creating a line of travel-inspired diaper bags taught me valuable lessons about securing funding, navigating various options, and the importance of persistence. Let me share my journey and insights with you.

Tap into nonprofit organizations for loans

Believe it or not, nonprofits were a game changer for me. Organizations like the Greater Newark Enterprises Corporation are like unsung heroes for small businesses. They’re not just about the money; they offer mentorship and a community that can be priceless for aspiring small business owners.

When I approached them, armed with my business plan and a prototype of my diaper bags, they saw the potential in my idea. They loaned me $25,000, which was a substantial amount to kick things off. To catch the eye of such an organization, show them your passion and a well-thought-out business plan, and be ready to demonstrate how your business can make a difference and you could get funding, too.

Ask family and friends

Securing funding from family and friends represents one of the most traditional methods available to small business owners. This approach can potentially provide anywhere from a few hundred to tens of thousands of dollars, depending on the level of belief in the entrepreneur’s vision and the viability of the business.

These arrangements must be handled with utmost professionalism, however. Drafting a clear agreement that outlines loan terms and setting realistic expectations are steps that can help maintain relationships and ensure clarity. Transparency regarding business goals and progress is also essential, transforming close ones into supportive stakeholders.

Crowdfund

Crowdfunding platforms such as Kickstarter have emerged as powerful tools for raising funds directly from potential customers and supporters. This method allows entrepreneurs to present their business ideas to a global audience, securing small investments from a wide base of backers. Successful crowdfunding campaigns typically involve:

Setting a clear fundraising goalCreating engaging and high-quality contentOffering appealing rewards to backers

Such campaigns not only provide the necessary funds, but also help validate the market demand for the product or service being offered.

Look for venture capital and angel investors

Venture capital (VC) and angel investors represent critical funding sources for businesses with high growth potential across various sectors, not limited to technology. These investors are in search of opportunities that promise significant returns. Acquiring investment from VCs or angels often means ceding a portion of business equity in exchange for capital.

Effective networking, compelling pitches, and demonstrable evidence of potential business growth are vital to attracting these investors. For instance, presenting data on market trends and possibilities, such as the expected growth of the baby care market, can make a compelling case.

Apply for government grants and loans

Governmental bodies frequently support small businesses, especially those contributing to economic development or innovation. For example, the SBA 7(a) loan program is an initiative by the Small Business Administration to provide financial assistance with favorable terms compared to traditional bank loans.

This program caters to businesses looking to expand, purchase equipment, or improve cash flow, offering lower down payments and longer payment terms. To be eligible, companies must meet criteria including being a for-profit entity operating in the U.S. and demonstrating a need for the loan.

While the application process can be complex and demanding, securing government grants and loans can provide substantial financial support for specific projects or aid in the overall growth of the business. It requires diligent research and a well-prepared application that aligns with the grant’s objectives.

Exploring every possible funding source with an open mind, thorough preparation, and clearly communicating the business vision is essential for success. As the landscape for small business funding continues to evolve, entrepreneurs are encouraged to remain adaptable and proactive in their funding strategies.

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 has a disclosure policy.

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Prepping for summer doesn’t have to cost a lot, and a Costco membership can help you save on summer must-haves. Here are five Costco buys for under $100. [[{“value”:”

Some shoppers invest in a warehouse club membership to keep more money in the bank. They use their membership perks to access exclusive deals and stock up on essentials. A Costco membership card may be handy if you’re preparing for the summer months and plan to shop for essentials soon. Check out these summer finds that you can buy from Costco for less than $100.

1. Tommy Bahama Beach Chair, two-pack: $79.99

Investing in high-quality beach chairs can be worthwhile if you’ll be spending time at the beach this summer. A two-pack of Tommy Bahama beach chairs is available for $79.99. The chairs are available in several designs and can be positioned in multiple ways. This is an online-only buy, so you won’t find these chairs at your local club.

2. Feit Electric 48′ LED Filament String Light Set: $69.99

If you’re ready to spruce up your patio or porch area so you’re motivated to spend more time outdoors during the warmer months, a nice set of patio lights can help! Costco sells the Feit Electric 48′ LED Filament String Light Set. You can get a two-pack for $69.99 through May 5, 2024. Once this additional sale ends, you’ll spend $89.99 for a two-pack of lights. Each string of lights features a heavy-duty cord for added durability.

3. OFF! Deep Woods Dry Insect Repellent Set: $19.99

Many families spend more time outdoors in the summer, exposing them to more bugs. If your family likes to hang out outside, you may want to add bug spray to your summer shopping list. If you’re a Costco member, you can score a three-pack of OFF! Deep Woods Dry Insect Repellent products for $19.99 at Costco. You’ll get two six-ounce and one four-ounce container of dry spray. This spray can help you deter mosquitoes, ticks, and other bugs. Thanks to this affordable price, you won’t have to worry about a spendy credit card bill after shopping.

4. Harbor Bay 2-pack Beach Towel: $28.99

Another essential to have on hand this summer is beach towels. Costco is offering Harbor Bay beach towels for $28.99 for two. Each towel is made from 100% cotton and is a larger 40-inch by 72-inch size. Multiple designs are available. This is a solid deal if you want to stock up on extra beach towels for pool or beach days without draining your checking account.

5. Cascade Mountain Tech 2-person Travel Hammock: $24.99

Summer is ideal for relaxing in a hammock and reading a good book. The Cascade Mountain Tech 2-person Travel Hammock is available at Costco for $24.99. Typically priced at $29.99, it’s available for an additional $5 off through May 11, 2024. It’s made with durable, breathable nylon fabric and includes a storage bag, two carabiners, and two straps. Up to two people can comfortably lounge in this hammock. This deal is only available online.

Every dollar you save adds up

Now may be an excellent time to become a Costco member. Consider whether you’re planning to buy any big-ticket items and whether you can get a better discount by shopping at Costco. You’ll need to pay a yearly membership fee of $60 or $120, but the savings may be worth it if you live near a club. Every dollar you save when shopping can benefit 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.

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.Natasha Gabrielle 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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