Money Management

If you make between $58,021 and $94,000, you’re middle class. Find out what the earning distribution looks like for upper, middle, and lower class. [[{“value”:”

The amount of money you earn is impacted by many factors, including the educational achievements you have, the job you choose, and even whether you decide to get married or stay single.

Your annual earnings can also impact every aspect of your life, as those who make more money will have a far easier time putting some of it into savings compared with people who are just getting by.

It can be helpful to understand where you fall in terms of income distribution in the United States so you can get an idea of how difficult or easy it will be to manage your personal finances. This data from the U.S. Census Bureau can help you to understand whether you are upper, middle, or lower class based on your earnings.

Here’s how much you have to earn to be in the upper, middle, and lower classes

According to the U.S. Census data, here’s how income is divided up in the United States. These numbers are based on household income for 2022, the most recent year for which data is available:

If you make $153,001 or more, you’re in the highest quintile and are considered upper class.If you make between $94,000 and $153,000, you’re in the fourth quintile and would most likely be described as upper middle class.If you make between $58,021 and $94,000, you’re officially in the middle class, as you’re in the third-highest quintile with two groups above you and two groups below you.If you make between $30,001 to $58,020, you are in the second quintile and are in the lower middle class.If your earnings are $30,000 or under, you’re in the lowest quintile and would typically be considered to be in the lower class based on your income.

Of course, there’s a wide range within that top quintile. The top 5% of households have an annual income of $295,001 or more, which means they make almost as much in a month (or more in a month) than people in the lowest quintile make all year long.

Still, it can be helpful to look at these numbers and see where you stand — especially as things like your geographic location and family size may make you feel differently about your buying power. For example, if you live in one of the most expensive cities in America but make $94,000, you may not feel middle class — you might feel poor. But if you live in one of the poorest areas and make that much, you’ll likely feel like you have plenty.

Income matters — but what you do with it also matters

Your income absolutely matters when it comes to your financial success, and those in the middle or upper class are going to have a much easier time making ends meet compared with people who make $30,000 a year or less.

But, for the most part, most people can find ways to succeed financially even if they aren’t in the top 5% or even in the top 25%. You can do that by taking the following steps:

Keep fixed costs to 50% or less of your incomePrioritize saving as much of your income as possible and starting to save early so you can take advantage of compound growthMaintain a budget so you use your income wiselyWork to increase your income through the development of job skills or by working extra hours

If you save around 15% to 20% of your income and start early, and if you are continually working throughout your life to increase your income, you have a good chance to build wealth, no matter what class you start in.

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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 save big money on buying a car in 2024? Here’s a quick hack: choose a plug-in hybrid. Here’s why they’re worth considering. [[{“value”:”

Are you in the market to buy a car in 2024, but not sure you’re ready for an electric vehicle (EV)? If you’re worried about home battery charging and suffer from range anxiety, there are ways to get a good deal on a car in 2024 — and even qualify for EV tax credits — without committing to a fully electric vehicle.

Here’s a car you should consider buying in 2024: the Toyota Prius Plug-in Hybrid. Used Toyotas of this model will qualify for used EV tax credits of up to $4,000. This could be a great way to get an affordable car in 2024.

Let’s look at a few reasons why the Toyota Prius Plug-in Hybrid is a great choice for a car to buy in 2024, and how you can save thousands of extra dollars at the dealership.

Why buy a Toyota Prius Plug-in Hybrid

I drive a Toyota Prius Plug-in Hybrid, and this is my favorite car that I’ve ever owned. It’s sleek, it’s comfortable to sit in, it’s easy to park, and it’s fun to drive: it accelerates from zero to 60 really fast when I need to get onto the freeway. And its plug-in hybrid technology combines the best of gas-powered hybrid cars and fully electric vehicles.

Here’s how it works: the Toyota Prius Plug-in Hybrid has a gas tank, just like a regular gas-powered car or other Toyota hybrid cars. But along with this gas engine, it has an all-battery electric mode, with a plug-in port where you can plug the car into a standard household outlet (like in your garage) to charge. My 2017 Toyota Prius Plug-in gets about 22 miles of battery range when fully charged, and it takes about six hours to recharge. So depending on your commute or other daily driving needs, you might be able to do most of your driving with battery-only power.

But you don’t have to worry about range anxiety! When your Toyota Prius Plug-in Hybrid battery runs down after that 22 miles (or so) is up, the car switches to its gasoline hybrid engine and you burn gas instead. Between the two modes of propulsion, my car gets about 100 miles per gallon of gas. And while this car doesn’t rank as one of The Ascent’s picks for cheapest cars to insure, the insurance is not expensive — I pay about $90 per month to insure my Prius Plug-in. (Of course; your car insurance rates will vary based on your age, location, driving record, and more.)

And did I mention that this car is fun to drive? It feels like driving a happy, zippy little electric spaceship.

How to get used EV tax credits for a Toyota Prius Plug-in Hybrid

Another benefit of the Toyota Prius Plug-in Hybrid is that it qualifies for EV tax credits! That’s right: EV tax credits aren’t just for fully “electric” vehicles. You can also get tax credits for buying some models of plug-in hybrid vehicles — and used Toyota Prius Plug-ins are part of this deal!

As of March 29, 2024, Toyota Prius Plug-in Hybrids from model years 2017-2022 can qualify for up to $4,000 of used EV tax credits. The car must have a sale price of $25,000 or less, and you also must have qualifying income that’s not above a certain limit.

If you and your choice of vehicle qualify for a tax credit, you can get it at the car dealership in the form of an immediate discount. The dealership will help you process the paperwork, and you’ll have to file a form with your taxes next year.

Other hybrid cars that get EV tax credits

The Toyota Prius Plug-in Hybrid is not the only plug-in hybrid on the market. Here are a few other plug-in hybrids that qualify for new EV tax credits of up to $7,500, with the amount of tax credit that each vehicle can get:

Audi Q5 PHEV 55 TFSI e quattro ($3,750)Chrysler Pacifica PHEV ($7,500)Ford Escape Plug-in Hybrid ($3,750)Jeep Grand Cherokee PHEV 4xe ($3,750)Lincoln Corsair Grand Touring ($3,750)

If you choose a used plug-in hybrid, you can qualify for EV tax credits on a much wider range of models and makes. Here are a few other plug-in hybrids that qualify for used EV tax credits of up to $4,000:

Audi A3 e-tron (2016-2018 model years)BMW 330e (2016-2018, 2021-2022)Ford Fusion Energi (2013-2020)Hyundai Ioniq Plug-in Hybrid Electric Vehicle (2018-2022)Kia Nero PHEV (2018-2022)Lexus NX Plug-in Hybrid (2022)Mitsubishi Outlander PHEV (2018-2022)Volvo XC90 (2016-2022)

Sales of used EVs have been slow in the past several months. You might find some really competitive pricing at your local dealership, on cars that still have lots of miles left under warranty. If you qualify for an extra $4,000 discount with a used EV tax credit, this could make a pre-owned plug-in hybrid into a good move for your personal finances.

See the full details about EV tax credits at FuelEconomy.gov.

Bottom line

If you like the reliability of the Toyota brand and want a car that’s already been on the road for a few years (not “the first” one of its model), the Toyota Prius Plug-in Hybrid can give you the best of both worlds: Electric Vehicle efficiency without range anxiety. Use the gas-powered hybrid engine as your back-up plan for road trips or for everyday driving. Whatever car you buy in 2024, be sure to shop around for cheap car insurance before you go to the dealership.

Our best car insurance companies for 2024

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

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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If you’re the outdoorsy type, Costco is running a sale for you. Check out the five best items from its epic sales event. [[{“value”:”

Getting a Costco membership could be one of the smartest financial decisions you ever make. Not only do you get the opportunity to save on groceries and household items, but you also get access to special seasonal discounts that can help you budget for purchases you might not otherwise afford.

During spring and summer, for example, Costco frequently runs epic savings events on outdoor equipment, furniture, and hiking gear. Often, these discounts are for big purchases, not bulk products or grocery items you’d purchase monthly. In fact, from April 15 through April 19, Costco is running a sale on certain outdoor products. If you’re the outdoorsy type, these five Costco deals might just inspire you.

1. Mountain bike

Price: $439.99

The Diamondback Overdrive 27.5″ bike is built to ride on unpaved, off-road trails. Normally, the bike costs $549.99, but if you buy it on Costco.com, you’ll get a discount of $110. According to reviews, the bike comes mostly put together, though you may need to do some minor assembly once it’s out of the box.

2. Travel hammock

Price: $19.99

The Hidden Wild Bugnet Travel Hammock comes in a carry bag, can be suspended on two tension lines, and has a fine net bug screen over top to protect you from mosquitoes and other creepy insects. The tension lines are attached by carabiners to two tree straps on both sides, which makes it super easy to assemble and disassemble. The hammock normally sells for $29.99, but if you buy it before April 19, 2024, you’ll get $10 off.

3. Folding camp cot

Price: $45.99

If you like the idea of camping, but hate the idea of sleeping on the ground, a folding camp cot could give you the feeling of a bed but with the sounds of the outdoors. This particular Hidden Wild XL Folding Camp Cot folds out and locks into place, thus requiring almost no setup. It can accommodate one person (maximum weight of 350 pounds) and fit in most two person tents. This cot would normally sell for $56.99, but you can get $11 off when you purchase it before the epic savings event ends.

4. Kids’ swing set

Price: $1,699

DIYers out there looking for an epic playset might want to get a load of this. The Backyard Discover Eagle’s Nest Elie Playset is a premium swing set with a 10-foot wave slide, a crow’s nest, a rock climbing wall, and a long swing beam that can fit three swings. You can save $700 (retail price: $2,399.99) when you purchase this playset on Costco’s website.

Buyer beware: You (or your buddies) have to assemble this yourself. You’ll receive five different boxes with 3D instructions for each box provided through the BILT app. If you’re up for a challenge, this could be a fun way to inaugurate summer for your kids.

5. Rooftop tent

Price: $1,599.99

Lastly, for those campers who really don’t want to be on the ground, the Trustmade Scout Max Black Hard Shell Beige Roof Top Tent with Roof Rack (say that a few times fast) is made for sleeping on top of your car. The price might make you do a head tilt, but it comes with some luxury features: a 7′ 6″ ladder, a built-in mattress (!), interior LED lights, mosquito nets on the sides, and a rain hood. It can also be conveniently stored on your roof racks, thus becoming operable when you park your car and assemble it. The rooftop tent usually sells for $1,799, but when you buy it online you get $200 off.

Again, these deals are available April 15 through April 19. But keep in mind Costco will have plenty more spring and summer sales. So, if these outdoor items don’t interest you, keep your eyes peeled for more great savings opportunities in the future.

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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 positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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If you’re a parent, you may want to consider a Costco membership. Read on to see why. [[{“value”:”

It’s hardly a secret that being a parent has the potential to be a very expensive prospect. And while I love my kids immeasurably, there are times when I can’t help but bemoan their impact on our household budget.

Thankfully, though, some of the expenses I incur as a parent aren’t as painful as they might otherwise be thanks to my Costco membership. Here are a few ways that membership makes it possible for me to save money on the items I’m constantly buying for my kids or because of my kids.

1. I’m able to reap savings on laundry detergent

As a mom of kids who all happen to play sports, laundry is a constant thing in my house. It’s not unheard of for me to do five to six loads a week, and that doesn’t include sheets and towels.

As such, I go through a lot of laundry detergent. So it’s helpful to be able to buy it at low cost.

Sometimes, what I’ll do is buy whatever brand Costco has on sale. Otherwise, I find that Costco’s Kirkland Signature detergent is a great deal.

The online price for a 194-fluid ounce container is $19.99, or $0.14 per ounce. But Costco’s in-store prices are pretty much always cheaper, so usually, I spend less. And I find that buying bulk detergent at Costco is less expensive than buying it in bulk at my local supermarket.

2. I can buy paper towels at a low price point

As a parent, I’m constantly cleaning up spills. At this point, it’s something I’m resigned to, because even when they’re trying to be helpful, my kids often end up leaving me with a mess.

Case in point: My 9-year-old recently started making her own lunch, which is a good thing. The skill she’s yet to master, though, is scooping the jelly for her sandwiches onto bread slices without leaving a sticky pile of it on the counter.

Because of this, paper towels are a mainstay on my shopping list. But I find that Costco helps me save money on them.

When it comes to paper towels, I’m particularly loyal to Bounty. And I find that the price at Costco is generally cheaper than what my local grocery store has available. Plus, because paper towels are non-perishable, I can stock up on Bounty when Costco has it discounted for extra savings.

3. I can consistently replenish my supply of snacks without breaking the bank

My kids have a tendency to be picky eaters, so they don’t always consume that much food at dinnertime. That’s OK, though, because they make up for it in the form of snack consumption.

The moment my kids get home from school, they’re begging for a snack. And that’s on top of the snack they take to school.

On weekends, the snack requests are even more frequent. And when their friends come over, those requests are multiplied by however many kids have invaded my home.

Clearly, I can’t afford to fall down in the snack department. Not only do my kids want to snack frequently, but they insist on variety.

But Costco makes that easy. I can buy cases of chips, popcorn, and crackers at a much lower cost than what I’d pay at the supermarket. Also, some of Costco’s bulk chip offerings come in a variety pack, which helps me avoid the “this again?” complaints that tend to arise when my kids decide they’re bored of an item they once loved.

If you’re a parent, consider a Costco membership

My Costco membership definitely saves me money as a parent. If you’re a parent who’s struggling to keep up with your expenses, it pays to see if a Costco membership might do the same for you.

A basic Costco membership costs $60 a year. One thing it pays to do is tag along with a friend or family member to Costco, check out the inventory, jot down prices for the items you normally buy, and then compare those to what your area supermarkets charge.

Let’s say you do the math and determine that shopping at Costco twice a month will save you $20 each month. That’s a savings of $240 per year. So even when you subtract the $60 a membership costs, you end up a winner.

Remember, too, that Costco will allow you to cancel your membership at any time for a refund if you’re not satisfied with it. So joining is a pretty low-risk proposition. And you may find that being able to load up on bulk purchases saves you time — something parents don’t tend to have a lot of to spare.

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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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Despite how male-dominated the financial industry is, women have the edge for picking investments and earning higher returns. Read on to learn why we excel. [[{“value”:”

If I asked you to tell me what a successful investor looks like, would you describe a woman? Or would your mind immediately go to the type of people you see on TV — most often white and male? Well, the data is in, and as it turns out, women are better investors than men. Let’s take a closer look at research about women and investing (helpfully compiled by our friends at The Motley Fool), and see how women can get started in the investing space.

Women have the edge

A 2021 Fidelity study found that women outperform men in investment returns by 0.4%, and an old study from UC Berkeley found that gap was nearly 1%. Wells Fargo data added more weight, showing that we earn higher returns on our investments while managing risk more effectively — the difference in returns between individual investment accounts owned by women vs. men was 0.12%.

What accounts for these differences? Well, that same Wells Fargo study noted that more women identify as conservative or moderate investors than men — who were more likely to be aggressive investors (55%). Noted voices in the investing space have spoken about women’s predisposition to approach the newest investments (like cryptocurrencies) or riskier options (speculative stocks) with a lot more caution. Finally, we also approach market volatility with a calmer reaction — Fidelity’s study determined that 51% of us will wait out any market hiccups, vs. 43% of men.

These qualities make us more successful investors — when we actually have the money and ability to invest. Unfortunately, the news isn’t all good, due to women’s weaker financial standing overall.

Wanna be an investor?

Thanks to the persistent gender pay gap, women have less money to invest. The gap is slowly shrinking; new data released by the U.S. Census showed that the average is now $0.84 for women for every $1 earned by men (the gap is larger for women of color). And the gap also widens when you include seasonal and part-time workers — they earn an average of just $0.78 per $1. A 2021 Vanguard study found that the median retirement account balance among women was just $31,291, vs. $45,106 for men — a difference of 44%.

To add insult to injury, women are also less confident in our investment and money management skills. I’m convinced that a lot of this is social conditioning — when you don’t see people like yourself talking about investing, you might assume it isn’t for you. Well, that’s not the case! If you’re new to investing, you’re not alone — here are a few moves to consider as you dip your toes:

Research brokerage options: Good news, you’re already in the right place for this step. Check out The Ascent’s reviews of the best online brokers for beginners to see which might be a fit for you. As a bonus, these brokers won’t bury you with fees.Keep it simple: While you can buy shares of varied individual stocks, that isn’t the only way to grow your money. Consider putting money into ETFs, or exchange-traded funds — these are sort of like baskets of different stocks across market sectors or even the whole market. They’re a good way to instantly diversify your portfolio.Commit for the long term: Investing is best done over a long period — day trading isn’t a great idea. The S&P 500’s average annual return over the last 50 years is 10%, but individual years can see wild swings.Minimize risk: If you’re interested in, say, cryptocurrencies, keep your holdings to 5% or less of your portfolio. Keep the bulk of your money in boring, predictably successful investments (like those ETFs we discussed above).

Investing is for everyone, and if you approach it with knowledge, strategy, and an eye toward the long term, you’re more likely to come out ahead. Why not get started today?

Alert: our top-rated cash back card 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 lengthy 0% intro APR period, 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.Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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