More Americans have bank accounts than ever before but that doesn’t necessarily indicate a higher savings rate than in years past. In fact, household savings rates are hovering at only about 1/3 of the all-time high, which was reached during a period in the 1970s. Currently, household savings are just

If you read the headlines, you might not be sure what to believe. Many news blurbs indicate that saving and checking balances are at highs when compared to recent years. Others tell the story of the nearly half of American households that can’t cover a $400 emergency expense without borrowing

Whether you’re in school, planning for college, or are a parent of a college-bound student, it’s important to understand your options for paying for college. The cost of higher education has been rising steadily, putting pressure on families who want to provide a college education and capitalize on the potential

Growing your savings and having a dedicated emergency fund, in particular, can have a huge cumulative effect on your lifestyle and on your long-term quality of life. As we get older, life’s truisms tend to prove themselves true again and again, with one of the primary lessons being that nothing

There are times in life when renting is the best choice and while renting can be less troublesome than owning a home, there are some important considerations before signing the bottom line. Not every space is a good space, not every lease is a good lease, and no matter where

Most of us start our credit journey with credit cards or car loans before attempting to climb the Mt. Everest of loans, a home mortgage. Mortgage rates tend to be lower than the interest rates for other types of loans but with most mortgages being 30-year loans, the interest costs

It seems like the original Catch 22: You need a credit history to get credit but you can’t build a credit history until you’re approved for credit. This modern-day financial conundrum isn’t as insolvable as it might seem. There are ways to build credit even when you’re just starting out

Credit cards can be a great convenience but if you carry a balance, they can potentially cost you thousands of dollars in interest expenses and fees. Opening or closing credit card accounts can have a meaningful effect on your credit score, so it’s import to choose your steps wisely. This

Insurance has become an essential part of modern financial life. If you own a car or a motorcycle, your state requires that you carry insurance. Mortgage companies require homeowners insurance. Many landlords require renters insurance. Insurance is a necessary part of modern living but not everyone fully understands their policies

Life insurance can play many roles in financial planning, which is part of the reason that there are so many types of life insurance. Not all life insurance types are created equal, however, and depending on your needs, one type may be more appropriate than another for your goals. In

Some people refer to car buying as an art, but there may be more money to be saved by applying some math and science. Yes, negotiation plays a role in getting the right price, but math can point you toward the right type of vehicle and can save you tens

In other chapters, we discussed the cost per mile for buying new cars, for trading in new cars after 5 years, for buying used cars, and for leasing. Buying cars that were 5 years old provided the best value in the examples given. However, we only looked at the cost

Whether it’s a car or a home, if you’ve borrowed money to pay for an asset, your payments over time are working to build equity. The equity in your home is the difference between the appraised value of your home and the payoff amount of your mortgage. If you have

When thinking about a home as an investment, there are different ways to consider the topic. A house can be a place to live, a place to raise a family, and perhaps even a place to retire, hopefully increasing in value at a rate faster than inflation during your stay.

Opportunity cost is a term used frequently in business and in investing. If you think of opportunity cost in its simplest form, the loss of gain by choosing one alternative over another, you’ll realize that opportunity costs are all around us. The key to understanding opportunity cost is to view

If credit card companies were forced to indicate the cost of borrowing at the top of a credit card statement in large red print that filled half a page, we’d probably never carry a balance again. If you aren’t careful, over the course of a lifetime, credit card interest can

A 2017 study found that the average tax burden for US wage earners is nearly 32% of pretax earnings.[1] Let’s call it a third. While many might argue that taxes are necessary, taxes can also destroy your momentum when you’re building toward a secure future. Fortunately, there are a few

It’s a dream shared by most – finally hanging up our work hats and enjoying our retirement years. For many people, however, the dream of retirement can seem like an elusive oasis, a hazy, far-away spot on the horizon. Often, we don’t know how much money we’ll need or have

When you make the decision to start saving, you’ll find you have some options in addition to a traditional savings account. You can also choose a money market account, a money market fund, or even certificates of deposit (CDs). Each has its unique features and depending on the purpose of

We might not give much thought to interest rates on a day-to-day basis, but interest rates can have a tremendous effect on finances. Interest rates can make the difference between a month where you’re able to pay all the bills easily and put a bit of money aside as well

One of the easiest ways to understand how interest works is to think of the interest you earn as the speed at which your money grows. If you choose to keep your savings stashed away under a loose floorboard in your house, it’s like a car that’s parked, and your

Debt statistics can be misleading. For example, the average credit card debt per US household is about $5,700. However, that figure includes households that have credit cards, but which don’t carry a balance. If we focus our sights on the households that carry a balance, the average jumps to over

When it comes to investment strategy, there are nearly as many schools of thought as there are stocks traded on the New York Stock Exchange. Some people use stock picking systems or complicated strategies to choose which stocks or indexes to buy and even to divine when the best time

If you’ve ever watched investment shows on television, you’ve probably heard commentators mention fundamentals — but without ever explaining what stock fundamentals are and why they might matter to investors. Fundamentals are metrics for individual stocks that provide insight into the value of a stock. Among Warren Buffet’s famous investment

Carrying debt has become part of American life, although with consequences that may be hard to foresee. For most households, it’s difficult to remember a time when the family was debt-free. Ten years after the financial crisis brought panic and hardship to many families nationwide, US household debt is again

What if there was a way to build a secure future or even become a millionaire without the need to be an investment expert? There is a way, and it’s easier than you think. Like any great recipe, you’ll need a few key ingredients. Time is an important factor, as

When it’s time to decide whether to conduct your financial business at a bank or a credit union, you’ll need to make some decisions about your priorities. Both banks and credit unions offer valuable services, but there are some significant advantages and disadvantages to handling your finances at each type

Your credit scores help lenders make decisions about whether to say yes to your request for a loan or line of credit. While a mortgage company may take a closer look at your credit report’s contents, many lenders check your FICO credit score for a quick snapshot of your overall

If you feel like you spend too much money, you aren’t alone. Here are some painless ways to trim your budget. If you pay a monthly maintenance fee to your bank, it’s time to switch banks Cut fees you pay to your credit card company for late charges, overdraft fees

The average American taxpayer received a federal tax refund of more than $3,000 last year.1 That amount of money could help you reach financial goals much faster than you originally planned. Before you launch into a mental spending spree, make sure you’ve handled a few key tax-time tasks. Get the

When it comes to designing a budget that works, simple is best. The idea of a 50/20/30 rule for budgeting your personal finances comes from Massachusetts Senator, Elizabeth Warren. She worked with her daughter, Amelia Warren Tyagi, to publish a book that outlines the system in 2005. “All Your Worth:

Everyone makes mistakes with their money from time to time. The faster you can change course, the better. Saving Forgetting to save for seasonal expenses Christmas and back-to-school time are notoriously expensive for families. While many people choose to charge the costs to their credit cards, others put aside a

The portion of your budget that you spend eating out and buying groceries presents the opportunity to save a great deal of money. There’s no need to become a couponing expert or purchase large volumes of food at warehouse stores. You can spend a lot less money on meals without

When it’s time to decide whether to conduct your financial business at a bank or a credit union, you’ll need to make some decisions about your priorities. Both banks and credit unions offer valuable services, but there are some significant advantages and disadvantages to handling your finances at each type

In the United States, we have a “progressive tax system.” This means that the more money you make, the more taxes you pay. Of course, there are exceptions to this rule that come in the form of tax deductions. The federal government allows people who make money to exclude the

Everyone with a social security number or tax identification number who has a history of financial activity has at least one credit report. The information in this file, maintained by various credit reporting agencies, gives businesses a snapshot of your financial activity. They use this information to verify your identity,

Two out of every five American adults don’t have the financial means to cover a $400 emergency.1 Strangely, 74% of Americans indicated on the same survey that they were “at least OK financially”.1 To cover that hypothetical $400 emergency, two out of five Americans would be forced to sell something

Living a debt-free life isn’t immediately within reach for many people. For those working to lower balances on credit cards and paying extra each month to shrink their loan balances, it can be intimidating to throw a lot of money at debt while ignoring opportunities to invest. Before considering the

When you owe more money than you can pay, it can be difficult to understand how to negotiate with your creditors. The most important thing to remember is that if you ignore the problem, it will not go away. It may disappear for a while, but it will come back

When deciding whether a new pet fits into your life, it’s also crucial to consider whether you can provide for their material needs. There’s a financial burden associated with pet ownership that is easy to overlook when deciding whether to add an animal to your human family. Beyond considering the

If you don’t have much in savings and don’t have an aggressive investment plan in place, now is a perfect time to figure out how to put away money and let it grow for you. Whether you are in your 20s or 60s and no matter how much you have

Debt can make getting ahead in life feel impossible. It may prevent you from getting a mortgage, even with good credit. Making huge monthly payments on everything from your car to your credit cards creates a situation where even if you make more money than your peers, you feel poor.

Seeing the world doesn’t require unlimited funds. If you are saving money for a future full of adventure around the globe, you may be able to get started on your journey sooner if you understand the basic principals of traveling on a budget. Traveling with a family If you have

If your goal is to pay off your credit card debt, but you have a high interest rate, or multiple cards with balances, a balance transfer may be the ideal solution. You’ll need a decent FICO credit score to qualify, of course. According to Experian, here are the credit score

Forming and sticking to a budget is difficult enough, but when you add a significant other to the mix, it can quickly become difficult and complicated. It doesn’t have to be terrible for your bank account or your relationship, however. How to handle money when you move in together Your

When you are in the process of adding up the potential bill for higher education, it’s wise to start with a general calculator that can help you estimate the cost of college. The Vanguard College Cost projector factors in the number of years until college, the number of years you’ll

When your parent or spouse passes away, there are an overwhelming number of things that must be handled in a short amount of time. It’s not something that many of us have experience with, so it can be hard to know how to handle finances and what to expect where

Companies that offer their employees a pension are rare these days. Fortunately, it’s easy to access financial planning tools to help you design your own pension plan that will provide a steady source of income throughout your retirement years, no matter how long you live. The appeal of not being

The amount of money you can save and invest over time has much to do with brokerage fees and taxes. Paying even small amounts to a financial advisor, tax planner, or the federal and state government will have an exponentially more significant effect on your net gains. While many of