Money Management

Some of today’s newer cars are loaded with safety features. Read on to see why that may not translate to lower auto insurance premiums. [[{“value”:”

If you’re in the market for a car these days, you’ll probably notice that newer models have way more safety features than the models of years past. Many new cars have features that include backup cameras, lane departure warnings, brake warnings, and more.

The purpose of these features is to help drivers avoid accidents and damage to their vehicles. So if you’re spacing out a bit on the road and your car starts beeping at you to brake, you may be inclined to heed that warning and avoid rear-ending the driver who’s stopped in front of you. And if you use a backup camera, you may be less likely to back into another vehicle that happens to be exiting a parking lot at the same time you are.

You might think that having a car that’s loaded with safety features will result in you paying less for auto insurance. But actually, those features could end up costing you more for one big reason.

It’s all about the money

U.S. News & World Report puts the average annual cost of car insurance at $1,547 this year. But the amount of money you’re quoted for auto insurance will depend on different factors. These include:

Your driving record (think speeding tickets and such)How many years of experience you have drivingWhere you liveThe type of car you have

The last one makes sense, because if you’re buying a new car for $45,000, your insurer will have to spend more to replace it than a car costing $29,500. But it’s for this reason that you might spend more to insure a car that’s loaded with safety features.

Those fancy backup cameras and side-view cameras? They cost money. Auto insurers are aware of this fact. And while those features might play some role in preventing accidents, insurers know that in the event of an accident, they’re going to have to pay up to replace those features. As such, you might pay more to insure a car with these features than one without them.

Do safety features actually help prevent accidents?

Ultimately, paying attention on the road may be a better means of avoiding accidents than relying on your car’s various warnings. But Forbes reports that vehicles with blind spot monitoring have a crash involvement rate that’s 14% lower than vehicles without it.

As such, you could make the argument to your insurer that safety features reduce the risk of an accident and see if it results in a lower premium rate. But don’t be surprised if it doesn’t.

That said, you may be able to save money on car insurance by shopping around for quotes and doing things like taking a defensive driving course (though make sure any course you look into is approved by your insurer). You can also see if you’re eligible for a low-mileage discount, which may apply if you don’t use your vehicle for commuting purposes due to working from home.

Finally, if you own a place of your own, you can see if bundling your auto and homeowners insurance policies results in some savings. But don’t be surprised if choosing a car with safety features doesn’t.

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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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The Japanese yen is weak against the dollar, and that means Americans get a built-in discount on Japanese vacations. See why you should visit Japan. [[{“value”:”

Have you ever wanted to visit Japan? 2024 could be a good year for Americans to travel to the East Asian island country. That’s because the Japanese currency (the yen) is weak against the U.S. dollar. As a result of the strong dollar, the dollar-to-yen currency conversion gives American tourists extra buying power in Japan.

For example, five years ago, in April 2019, one U.S. dollar was worth about 112 Japanese yen. But today, $1 is worth about 151 yen — a 35% difference! When the dollar is strong and the yen is weak, that means all the costs of food, lodging, and fun things to do on vacation cost 35% less than they did five years ago. It’s like the entire country is “on sale” for international vacation travelers.

Let’s look at a few reasons why Japan is a cheap vacation destination for Americans, why you should go, and what to watch out for if you want to save money.

Why Japan is a cheap vacation destination

The Japanese yen has gotten weaker against the dollar in the past few years, largely because of different interest rates in both countries. While the U.S. Federal Reserve has raised U.S. interest rates to over 5% (this is why the best savings accounts and CDs have 5.00% APYs or more), the Japanese central bank, the Bank of Japan, has kept Japan’s interest rates low.

In fact, until March 2024, Japan’s interest rates were negative, to encourage consumer spending and try to create economic growth. Because U.S. dollars are earning so much higher interest rates than Japanese yen, that creates stronger global demand among investors for U.S. dollars. And a strong dollar is good news for any Americans who want to visit Japan.

Why Americans should vacation in Japan

Full disclosure: I have lived in Japan and have visited there several times; I have good friends in Tokyo. I have fond feelings for Japan, because it’s where I had my first job out of college (teaching English in the Japanese public schools) and it’s been a hospitable place for me. I believe there are a few good reasons why more Americans should consider breaking out their credit cards for a vacation to Japan.

Delicious food

I have never had a bad meal in Japan. Here are just a few top-of-mind food experiences you can have there:

Do you like sushi? You can have some of the best sushi of your life off of a conveyor belt in Tokyo. This style of restaurant is called “kaitenzushi” (“rotating sushi”) and you just keep grabbing plates off the conveyor belt, all you care to eat. At the end of the meal, you get billed based on the number of plates you’ve eaten.

Do you like ramen? Some of the best bowls of noodles you’ll ever have in your life can be found at tiny hole-in-the-wall restaurants in Japan. A hot bowl of spicy miso ramen, pan-fried gyoza dumplings, and a cold mug of Sapporo are some of my favorite comfort food memories of Japan.

Do you like French bakeries? I don’t know how or why, but Tokyo is full of really delicious French-style bakeries, cake shops, gourmet coffee shops, and patisseries. It’s like being in Paris, even though the staff are all Japanese.

Fascinating culture

I can’t begin to explain how it looks and feels to be in Japan. Tokyo is a neon future-city, where the lights at night from all the big buildings and vast screens seem bright as day. It’s easy to get around — the trains can get crowded but they run on time. There are fascinating museums and cultural sites in Tokyo, like the Meiji Jingu shrine and park, where you can write an “ema” (Shinto prayer card) to give thanks for your visit and make wishes for peace in the world.

And then a short walk away from this peaceful Shinto shrine in a forest is the Harajuku district, home of vibrant street art and a noisy, colorful hub of youth fashion. Japan can give you a wildly different range of experiences, subcultures, and local flavor, all within 30 minutes.

Warm hospitality

The word for hospitality in Japanese is “omotenashi” and Japan does hospitality extremely well. It’s kind of embarrassing as an American, how kindly I’ve been treated by my Japanese friends and Japanese restaurant staff; it makes me feel like I need to be a better friend and a better host. Japanese culture is all about politeness, hard work, being generous and warm-hearted to guests, and holding high standards for customer service.

You see this spirit everywhere in Japan. Even at lower-cost fast casual restaurants and chain coffee shops, there’s a sense that the staff are genuinely enjoying their jobs and happy to see you. There’s an earnestness to Japan. You see people working at train stations, diligently helping people with questions about their train tickets. Janitors sweep the floors with observant attention to detail. It’s humbling to witness, and it makes me want to do better and try harder in my own life.

Bottom line

Does Japan sound like a fun place to visit, especially now that it’s 35% cheaper against the dollar than it was five years ago? If this sounds fascinating to you, get your favorite travel rewards credit card and consider booking a flight to Japan in 2024.

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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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It’s important to make the most of a tax refund. Read on to see how. [[{“value”:”

Not everyone who files taxes ends up with a refund. But this year, the average tax refund is $3,011.

As a caveat, that number could change as more tax returns roll in (keeping in mind that not everyone submits a return by the April 15 filing deadline). But either way, the refund you get might constitute a nice chunk of money. And if so, it’s important to put it to good use. Here are some options to consider.

1. Build a financial safety net

If you don’t have enough money in savings to cover at least three months of essential expenses, then the most important thing to do with your tax refund is use it to pad your emergency fund. You never know when you might lose your job or encounter a large bill, like a home repair, that your paycheck can’t cover on its own.

Also, having a solid emergency fund could help you avoid debt in the event of an unexpected bill. And that could result in added savings.

Let’s say you need to make a $3,000 home repair you don’t have the cash for. If you’re forced to put it on a credit card charging 20% interest and it takes you a year to pay off your balance, you’ll spend an extra $335. Pay cash for that repair (or put it on your credit card for the points but pay the balance in full), and you can keep that money for yourself.

2. Pay off existing credit card debt

We just saw how costly a credit card balance can be. So if you have lingering credit card debt from the holidays or credit card debt in general, it’s a good bet to use your refund to pay it off.

If you owe money on multiple cards, use your refund to pay down the balance with the highest interest rate attached to it, and then work your way downward from there to cards with lower interest rates. You may also decide to consolidate your credit card balance into a personal loan and then use your refund to pay down its principal more quickly.

3. Invest in your career

A lower-paying job could make it difficult for you to get ahead financially and meet other long-term goals, like being able to retire comfortably. Now, it could be a good idea to use your tax refund to fund a retirement plan like an IRA. But if there’s a course you can take or a certification you can obtain that will set you up for considerably higher pay, then you may want to forgo that IRA contribution and instead invest in your career and earnings potential.

Let’s say you spend the money on continuing education and get a job paying $5,000 more by next year. From there, you might have the ability to fund an IRA every year, and do other things that lend to financial stability.

4. Invest in your quality of life

There’s nothing wrong with spending money to make your life easier or better. Maybe you can’t stand your slow-as-molasses clothes dryer that takes forever to run and inevitably still leaves its contents damp, forcing you to repeat the process after a long, tiring day of work. In that case, it’s perfectly reasonable to spend your tax refund on a new dryer.

What’s more, let’s say you work from home and have been having back pain due to not-so-great office furniture. It absolutely pays to use your refund to buy a chair with more support, and other features that lead to more physical comfort.

It’s important to use your tax refund mindfully rather than just blow it on a whim. All of the above items are worth considering once your money comes in from the IRS. But if there’s another important item on your agenda, you may decide to go a different route. And as long as you’ve thought things through, you may end up happy with your decision.

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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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