Why spend the time and expense to get a second opinion if your doctor recommends surgery or they diagnose a serious disease? After all, you’ve been examined, tested and evaluated by an expert with many years of training.

But the harsh reality is that misdiagnosis happens a lot — and sometimes with the gravest consequences. Each year, approximately 371,000 people in the U.S. die because of diagnostic error, according to a July 2023 study in the medical journal BMJ Quality & Safety.

A medical second opinion can increase the chances that you get the correct treatment from the start, saving money, distress and maybe your life.

“Second opinions are probably the single fastest way to address diagnostic errors today,” says Dr. David Newman-Toker, director of Johns Hopkins Medicine’s Center for Diagnostic Excellence.

Seeing the right specialist or subspecialist can make all the difference. “We know [from research] that if a patient with sarcoma is seen at a sarcoma center, their survival is longer,” says Kristen Ganjoo, a medical oncologist who teaches at Stanford University’s School of Medicine.

What is a second opinion, and why is it valuable to you?

Second opinions — whether to review a surgery recommendation or a cancer diagnosis — typically require a step-by-step reexamination of a patient’s case.

The first step is to review the existing diagnosis, according to Ganjoo. For example, patients may need a pathology review at an institution that has experts in sarcomas, she says. “We have a hundred different types of sarcoma, and they’re all treated differently. If a pathologist is not familiar with sarcomas, they may make a mistake in diagnosing patients.”

Next, Ganjoo determines whether the patient needs more tests, such as a scan or an assessment of a tissue sample for genetic mutations.

Finally, she reviews the treatment plan and makes any necessary changes to it, based on all test results and her diagnosis.

But second opinions aren’t only about coming to the correct diagnosis. They can be about “what’s the best possible treatment for this particular patient at this point in their life,” says Caitlin Donovan, a senior director at the nonprofit Patient Advocate Foundation, which works to educate and empower health care consumers.

“How can you incorporate quality-of-life concerns and still get the result you want?” says Donovan. “Physicians may differ on that.”

What does a second opinion cost, and does insurance cover it?

Charges for a second opinion vary widely, as does insurance coverage.

Some major medical centers offer a second opinion service at a fixed price. A virtual second opinion at the Cleveland Clinic costs $1,850. Stanford Medicine charges $700 for an online second opinion. The package of services provided — and the medical staff’s knowledge of particular specialties — vary by institution.

If you are insured by an employer or through a state or federal health insurance marketplace, contact your insurer to ask about your coverage for second opinions for people with your diagnosis.

Medicare may pay at least some of the cost of a second opinion when surgery is recommended. Medicaid offers some coverage of second opinions; call your state’s Medicaid office for details.

You may be able to pay any out-of-pocket costs of a second opinion through your health savings account (HSA) or flexible spending account (FSA).

Financial assistance for second-opinion expenses for certain diagnoses may be available through a variety of organizations, including the Patient Advocate Foundation and the Sarcoma Alliance.

If you are shy about asking for a second opinion

Some patients are embarrassed to let their doctor know that they’d like to get a second opinion. But if you do encounter resistance, know that you’re pursuing a reasonable course of action.

“Any good physician is going to encourage you to explore your treatment options,” says Donovan.

“Sometimes you just have the wrong clinician,” says Newman-Toker. “They’re overconfident or they’re not interested in asking deeper questions or hearing your concerns as a patient. Then, you just need a new doctor.”

Avoiding misdiagnosis

Newman-Toker offers these tips:

• Come to your appointments prepared with a simple, printed summary of your timeline of symptoms and problems, to leave more time for discussion and questions.
• Ask hard questions, such as, “What’s the worst thing that this could be, and why is my condition not that,” says Newman-Toker. If the doctor bristles, consider going to another. “You have to rely on asking probing questions to see if your physician is committed to getting it right.”
• After treatment begins, remain vigilant, Newman-Toker says. “Don’t assume that if you don’t get a good result, your treatment needs to be adjusted, rather than your diagnosis reevaluated. Maybe it’s time for a second opinion.”

The article Getting a Second Opinion Can Help Ward Off Misdiagnosis originally appeared on NerdWallet.

The delayed release of the 2024-25 Free Application for Federal Student Aid (FAFSA) could make it more difficult for “early decision” applicants to accurately gauge the cost of their college education.

Early decision is a binding process, usually with a November application deadline and a December admissions decision. Students may apply to only one college via early decision, and if accepted, they typically must attend or risk having to sit out of school for a year. An early decision application can boost a student’s odds of getting into their dream school, but it also means they lose the chance to compare and negotiate financial aid offers from multiple schools.

Because the 2024-25 FAFSA will be simplified — and the release delayed from Oct. 1, 2023, until sometime in December — many colleges won’t be able to provide accurate financial aid estimates or final packages alongside early decision admissions, says Connie Livingston, head of college counselors with admissions counseling group Empowerly and a former admissions counselor at Brown University.

“In years prior, you knew what your package was when you knew your decision,” Livingston explains. “Now you’re getting an estimate, which is better than nothing, but it’s not a guarantee.”

If you’re thinking about applying early decision this fall, here are six tips to help you navigate the FAFSA overhaul and your college financial aid prospects.

1. Apply to CSS Profile schools

About 250 universities use the more detailed CSS Profile alongside the FAFSA to calculate institutional aid, like scholarships and grants. The 2024-25 CSS Profile opened on Oct. 1. At CSS Profile schools, prospective early decision applicants may have better luck getting an accurate financial aid estimate before they decide to apply, says Shannon Vasconcelos, senior director of college finance for Bright Horizons College Coach, an admissions and financial aid counseling company.

However, students who apply early to FAFSA-only schools likely won’t have a reliable financial aid estimate before applying, Vasconcelos says.

The vast majority of institutions that use the CSS Profile are private, although a handful of public schools like the University of Virginia and the University of Michigan also use it.

2. Estimate your financial aid

In past years, colleges’ online net price calculators have been the best way to estimate how much your education could cost at an institution — but with a lack of clarity around the new FAFSA, many of these calculators have not yet been updated, Vasconcelos says. Early decision applications should use other calculators.

The Education Department recently released a new Federal Student Aid Estimator to help students gauge their eligibility for aid like federal student loans and the need-based Pell Grant for the 2024-25 school year. The College Board’s Expected Family Contribution (EFC) calculator can estimate the aid you may get through the CSS Profile.

If your family has an income below a certain threshold — check the income cap with the early decision school to which you’re applying — it’s more likely that you’ll get enough aid to attend. Most early decision schools meet 100% of demonstrated financial need, but they don’t offer merit aid, Livingston says.

3. Read the fine print

Students have the option to back out of early decision agreements if they can’t afford to attend. Carefully read the agreement at your school of choice before applying.

“I think that we’re going to see more families take advantage of that fine print this year and pull out of that early decision agreement, because they didn’t understand what they were getting into financially, or they did not have an accurate estimate of financial aid eligibility upfront,” Vasconcelos says.

Backing out from an early decision acceptance is a process. For example, at Columbia University in New York, families must consult with a financial aid officer and explain their circumstances before a student can be released from an early decision agreement. The timing can also be risky: When students finally get their delayed financial aid packages for the 2024-25 school year, application deadlines at other schools may have passed.

Make sure to print out and save any financial aid estimates you’ve received from schools, Vasconcelos advises. These records can come in handy if you need to request more aid or get out of your binding admissions agreement.

4. Request your FSA ID now

Each person — including the student and parents — who fills out the 2024-25 FAFSA will need a unique FSA ID. It can take up to three days to receive an FSA ID after you request it.

Request your FSA ID ahead of time so you’ll be ready to fill out the FAFSA right away upon its December release and get your financial aid package as fast as possible.

Everyone should fill out the FAFSA, regardless of whether or not they think they’ll qualify for aid, says Livingston. Many colleges use the application to help determine eligibility for scholarships and merit aid in addition to need-based aid.

5. Consider early action or regular decision

Roughly 87% of U.S. undergraduates received financial aid in 2020-21, according to the National Center for Education Statistics. For these students, applying early action (which is nonbinding) or regular decision may be a safer bet than early decision.

If you get multiple admissions offers, you can compare financial packages and costs of each school, and even try to negotiate your aid offers.

“When you apply early action or regular decision, then you’re not making a commitment,” says Vasconcelos. “You can go back to schools and say, ‘Thanks for this nice $5,000 scholarship but this other school gave me $10,000; is there anything else you can do?’ and some schools are amenable to that.”

That type of negotiation is off the table if you apply early decision, Vasconcelos says, but you might still be able to appeal for more aid after an early decision acceptance if your financial situation changes.

6. Reach out to financial aid offices

If you need more help understanding how the FAFSA simplification and delay could affect your plans to apply early decision, reach out to the financial aid offices at your target schools.

“They are expecting a lot of questions, and maybe some confusion, so they’re ready to help students and families through this process,” says Livingston.

The article Applying to College Early Decision? 6 Tips for the FAFSA Delay originally appeared on NerdWallet.

Interest rates on 30-year fixed-rate mortgages have hit yet another high, with lenders offering loans above 8% for the first time since 2000. Mortgage rates have gone up rapidly this year, rising two full percentage points from lows near 6% back in February.

That’s been brutal for home buyers, who have watched their buying power erode. At a 6% interest rate, a buyer looking to spend $2,000 a month on principal and interest could afford a loan of roughly $333,500. With interest rates at 8%, that same buyer can afford only $272,500. Their target home price has dropped $61,000 as more of that monthly payment has to go toward servicing interest.

Here’s why mortgage interest rates are so high, and why they could remain elevated. Still, there are ways that home buyers can contend with such a challenging housing market.

Why mortgage rates climbed so high

A year ago, many housing economists, including in forecasts from Fannie Mae and the Mortgage Bankers Association, were anticipating that today’s mortgage rates would be in the 5-6% range. Though that seems wildly off base now, at the time it looked pretty reasonable.

“Last year around this time, the Fed was in the midst of hiking interest rates very rapidly,” explains Chen Zhao, head of economic research at Redfin. “And most economic forecasters were really looking at this and saying, OK, this is most likely going to lead to a recession.”

A recession could have forced the Federal Reserve to cut interest rates, with mortgage rates likely falling, too. But that recession hasn’t arrived.

“Despite what the Fed has done, hiking rates at the fastest rate ever, the economy, especially the job market, has really just remained very resilient. As a result, investors are now expecting that the economy is going to avoid a recession and remain very strong for longer,” Zhao says. “And that means that the economy can sustain higher mortgage rates for a longer amount of time.”

Where are mortgage rates headed in 2024?

Looking at last year’s predictions for 2023, it’s clear that a lot can change in just a few months. With political upheaval in the U.S. and multiple wars overseas, there’s potential for tectonic shifts in markets and in economic policy.

“I would say that right now uncertainty is unusually high,” Zhao comments. “Maybe the most plausible forecast would be to say that rates are probably going to stay in this range for the near term or at least in the foreseeable future.” But Zhao also outlines scenarios for mortgage rates going lower — an economic downturn forcing the Federal Reserve to encourage economic activity by easing interest rates — or higher, if mortgage spreads remain elevated.

The mortgage spread is the difference between the 30-year fixed mortgage rate and 10-year Treasury rate. “Historically, the spread between the 10-year Treasury and the 30-year mortgage rates is about 1 3/4%,” explains Melissa Cohn, New York-based regional vice president and mortgage banker at William Raveis Mortgage. Because of economic and geopolitical volatility, “Those spreads have grown over the course of the past couple of years, and our mortgage rates are now trading at 3% or higher above the 10-year Treasury.”

That said, it’s also worth noting that while we haven’t seen mortgage interest rates this high in 23 years, prevailing interest rates are in line with longer-term historical averages. Interest rates collected by government-sponsored enterprise Freddie Mac, which go back to 1971, are widely used as the yardstick for mortgage interest rates. Over that half century, the average 30-year fixed interest rate has been 7.74%.

“Looking holistically at the entire history, we’re about where the average is,” comments Jessica Lautz, deputy chief economist and vice president of research for the National Association of Realtors. Lautz points out that recent history is fairly exceptional: “We don’t want to say that the interest rate of 18 is normal, but the interest rate of 2.5 is also not normal,” she says, referring to historic highs of the early 1980s and the low point of 2020. “Both of those were very unusual time periods for interest rates.”

How high rates might affect buyers’ plans

Higher interest rates have got home buyers scrambling to keep their budgets in line with costs. But buyers should also consider the wider effects that rates have on the housing market and how these could play out.

Cohn contends that those who can afford to buy now, despite high interest rates, are likely better off going ahead with a purchase, as home prices continue to rise. “Are you better off buying in the higher-rate environment today and paying hundreds of dollars more a month in a mortgage payment so that you can refinance in a year when rates are down instead of having to pay 5% more on the purchase price of that home in a year?” she asks. This argument assumes interest rates will drop, but it’s also worth noting that while today’s buyer waits for rates to fall, they’re building equity.

Lautz also leans toward acting now if you can, but for different reasons. With housing inventory limited, a drop in interest rates could bring currently priced-out buyers off the sidelines, driving up home prices. “I do think there is pent-up demand,” Lautz explains, “and so they may be facing a multiple-offer situation.” In other words, lower rates could lead to the return of bidding wars.

What home buyers can do now

If you’re in the position to buy a home despite today’s mortgage rates, there are a few steps you can take to buffer the effects of high rates.

Get all the help you can: If you’re a first-time home buyer, look into state and local programs that provide down payment and closing cost assistance. These can be no- or low-interest loans or even outright grants. You may not even have to be a true first-timer: Many programs consider you a first-time home buyer if you haven’t had an ownership interest in a home in at least three years.

Consider a variety of home types: Rather than a detached, single-family home, a condo or townhouse might better suit your budget. New construction is worth a look, as newly built homes are nearly one-third of the current market. Home builders with robust inventories are often able to provide incentives that make new homes more affordable.

Be interest-rate-aware: When you’re researching sample interest rates at various lenders, read the fine print. With rates so high, many lenders are including discount points — prepaid mortgage interest — to make their sample rates appear lower. Buying points can be a good strategy, but there’s an upfront cost, so you want to know if they’re included when trying to decide which lender has the best rates for you.

The article As Mortgage Rates Top 8%, What Home Buyers Should Know originally appeared on NerdWallet.

People who drive to work day in and day out have likely grown weary of hearing about the growth (and then partial reversal) of working from home. The rising costs of their commute no doubt add insult to injury.

The share of people working from home increased dramatically in 2020 and remains higher now than before the pandemic. But the overwhelming majority of U.S. employees — 77% of them — still commute. That’s 124 million workers on the road in 2022, according to recently released American Community Survey data from the U.S. Census Bureau.

In-person workers are less likely to be high earners. Jobs in lower-earning service and manufacturing industries can’t be done remotely like those in many tech and professional fields. Lower relative wages make increased commuting costs tough to handle.

Chipping away at your commuter expenses can feel a little like doing dishes or laundry — there will always be more. But there are a few relatively low-effort ways to ensure you’re not paying more than you need to be.

Shop around for car insurance

Auto insurance rates have skyrocketed over the past few years, but only about one-fourth of Americans shop for auto insurance on a regular basis, according to a March 2023 NerdWallet survey. Reevaluate your policy from time to time: Ask your current insurer about discounts you might be missing, and compare rates between insurers to ensure you’re not overpaying. Also, right-size your coverage to fit your needs. While you don’t want too little coverage, which risks a significant loss in the event of an accident, you likely don’t need a pricey policy if your car is paid off and on its last legs.

Fill up on gas discounts and rewards

Electric vehicle use is on the rise, but the overwhelming majority of drivers are fueling up at the pump. Because gas accounts for about half of vehicle ownership costs, according to NerdWallet’s analysis, consider using an app to ensure you’re frequenting the stations with the lowest prices. If you’re loyal to one gas station or grocery store/gas station combo, look into their loyalty programs. Exxon Mobil, for example, offers points for purchasing gas and in-store items, and the points can be redeemed for gas savings.

Use credit card reward categories

Rewards credit cards can provide cash back or points for your gasoline. Some offer bonus categories on a quarterly basis, where you can get as much as 5% cash back for fuel purchases. Others allow you, the cardholder, to choose the reward category so you can customize your own gas rewards card.

Carpool

Splitting the costs of the drive can have a dramatic impact. If you’re unsure what to charge, divide the amount you spend on gas per workweek by the number of passengers, and add a bit. After all, gas is just one of the costs of your commute. Sharing your vehicle with a friend or coworker is a tough sell for some folks, particularly those of us who use our drive time to catch up on podcasts or singing lessons. But 9% of U.S. workers carpooled in 2022, according to census data, so perhaps it’s a matter of finding the right passenger — one who can harmonize.

As someone who cares about my environmental impact and spending as little money as possible, life is full of fraught decisions.

Should I buy organic milk even though it’s twice as expensive? Or choose an electric car for $40,000 rather than a friend’s run-down Corolla for $3,000?

Should I make eye contact with the person on the street raising money to fight climate change or awkwardly pretend to be on a phone call?

The point is that my aversion to spending money often means I’m cutting corners environmentally. Yet when it comes to air travel, these preferences aren’t in conflict. In fact, reducing one’s travel carbon footprint can actually mean spending less on airfare.

The only downside: It means flying with airlines that pack you in (and treat you) like sardines.

The high cost of legroom

Flying burns a lot of fossil fuels — there’s no way around that fact. If the entire commercial aviation industry were a country, it would rank sixth (between Japan and Germany) in total emissions, according to an October 2019 report from the Environmental and Energy Study Institute.

But not all means of traveling by air have the same impact. More expensive seats, such as premium economy, business class and first class, burn more fuel per passenger than the sardine-like conditions at the back of the plane.

How much more? A lot.

Flying in first class on a widebody jet creates a carbon footprint nine times larger than flying in economy, according to a report from the World Bank’s Environment and Energy Team, Development Research Group.

That’s the first bit of good news for cheap, environmentally conscious travelers like me. You can save money and shrink your carbon footprint at the same time by choosing economy fares.

And that’s not all. Because not only does what cabin you fly in matter, but so does the plane’s layout.

Enter budget airlines

Imagine two types of bus: One that carries 50 passengers and one that carries 25. Assuming the fuel consumption is roughly similar for both, which bus would be more efficient in terms of gas burned per passenger mile?

Obviously, the more packed bus is more efficient.

Yet we often overlook the parallel with air travel. Some Boeing 737s, operated by low-cost airlines, carry far more passengers than the same 737s operated by airlines with first- and business–class seats, simply because they lack a first-class cabin.

That’s why budget airlines Frontier and Spirit ranked best regarding carbon dioxide emissions per seat mile (in grams) in a 2022 analysis by IBA, an aviation consulting firm.

In fact, the report specifically cites the high density (i.e., sardine-like) seating of Frontier’s aircraft as a major reason why the airline ranked so well.

Another reason budget airlines are dark-horse climate winners: They offer several nonstop flights.

For example, the new low-cost airline Zipair offers four routes from the U.S. directly to Tokyo. Flying direct in this way reduces emissions simply because it covers less distance and burns less fuel.

Flying direct often means paying more, but these low-cost airlines have turned that logic upside down. That means you can spend less, emit less and spend less time in the air.

So what’s the catch?

No such thing as a free soda

Low-cost airlines might be more environmentally friendly on the whole, and their fares can be cheaper on the surface, but actually saving money with them can be challenging. That’s because they generate much of their revenue through add-on fees on top of the base fare.

Expect to pay for everything from a can of soda to the opportunity to select your own seat. In fact, the cost of a flight with an airline like Spirit can quickly balloon past the cost of the same flight with a traditional carrier if you’re not careful.

That’s where stoicism comes in. Yeah, you’re paying and emitting less, but only because you’re giving up on “frills” like legroom and free drinks. That might be fine for a two-hour flight, but it will test even the steeliest nerves for a trans-Pacific one.

The trick is to pay for only the frills you actually care about. Budget airlines will try to push countless add-ons during checkout, from bundles to trip cancellation protection.

Some of these might be important to you, others less so. Being ruthless in turning down the latter is the only way to keep these costs low, and keep budget airline travel something you will want to continue doing in the future.

I like to treat this add-on fee system like a game that I’m winning by refusing to bite on needless add-ons. The fact that I’m reducing my carbon footprint while saving money is just the cherry on top.

The article Ask a Travel Nerd: Environmentally Friendly Air Travel for Cheap Stoics originally appeared on NerdWallet.

Forget the ghouls and ghosts — inflation is spooky enough. And it’s coming for your Halloween candies.

Candy and gum prices rose 7.5% between September 2022 and September 2023, according to the Bureau of Labor Statistics. For context, the broader category of grocery prices increased 3.7% over that time frame.

Why is candy so expensive?

Beyond overall inflation, which rose 3.7% year over year since September 2023, there are a few more reasons why candy is so expensive right now. The cost of raw sugar reached an 11-year high in April, per CNBC, due to the effects of extreme weather on the crop, as well as rising demand.

And a U.S. agricultural policy that requires 85% of sugar purchases to come from domestic processors is further tightening an already strained supply, according to The Wall Street Journal.

Consumers are taking notice. In a survey of 1,000 U.S. households that celebrate Halloween, 41% of respondents said that inflation has impacted how much they plan to spend on Halloween candy this year, according to Advantage Solutions, an e-commerce analytics firm.

Go for this cheap Halloween candy in 2023

Thankfully, there are some candies whose prices actually fell year over year, according to a new report from Pattern, an e-commerce analytics firm. So you can still indulge in some sweet treats without exceeding your budget.

Pattern tracked the price changes of more than 30 types of candy on Amazon every day for one year. First, Pattern data scientists calculated a baseline price for specific candies — such as Twix, Milky Way or Skittles — by taking the average of the 10 most popular versions of those candies.

For example, Milky Way’s 10 most popular products may include a two-pack of candy bars, a 36-pack of candy bars and a bag of Milky Way “Fun Size” minis. Those prices, as well as the prices of the seven other most popular products, would then be averaged. That average would represent the Milky Way baseline price.

Then, Pattern compared that initial baseline cost from October 2022 with each candy’s baseline price one year later.

By measuring how each candy’s baseline price changes over time, a picture emerges of how each candy’s price rose or fell over a given time period — regardless of product.

In the 12 months leading up to Oct. 9, 2023, the analysis found that prices fell on Amazon for these candies:

• Hot Tamales (-44.90%).
• Mounds (-13.23%).
• Heath (-10.24%).
• Rolos (-9.83%).
• Milk Duds (-7.58%).
• Whoppers (-6.9%).
• Reeses (-5.13%).
• Milky Way (-4.28%).
• Nerds (-2.96%).
• Kit Kat (-1.63%).

Those percentages translate to significant real-world savings. Last year, Hot Tamales’ baseline cost on Amazon was $45.69 on Amazon. Today, that figure is 44.9% less, at $25.32, per Pattern. Even Milky Way’s much smaller percentage change of -4.28% means the candy’s average price dropped from $21.70 in 2022 to $19.01 in 2023.

To avoid inflation’s hardest-hit treats, stay away from these candies, whose prices rose the most dramatically over that time period: Airheads (+26.34%), Baby Ruth (+13.51%), candy corn (+13.24%), PayDay (+12.0%) and Tootsie Rolls (+11.36%). Airheads’ average cost was $10.15 in 2022; today, that figure is $15.32.

How to save money on Halloween

With expensive winter holidays like Christmas and Hanukkah just around the corner, here’s how to spend less on Halloween, beyond avoiding the priciest treats.

Avoid buying your favorite candy. Seems counterintuitive, right? But, as Fortera Credit Union notes, you’re more likely to munch on your favorite treats before Halloween, leaving you in a pinch on the big night. Stock up on sweets you won’t be tempted to eat.

Make your own costume. You can also ask friends if they want to trade costumes, recommends Farmers Trust & Savings Bank. If you’re responsible for kids’ costumes, reach out to other families in your social circle and see if any parents would be interested in a costume swap.

Trade home and yard decor with friends and family. For decorations, buy art supplies from a dollar store, per Advisors Management Group, an investment firm in Wisconsin.

The article Candy Prices Are Up. Here’s Why, and How to Save on Halloween originally appeared on NerdWallet.

Adopting a rescue or shelter dog doesn’t just give a needy animal a home. It can provide a playmate for your kids, a jogging buddy for you and a loyal companion for everyone to cuddle with on the couch. But a new pet can also come with unexpected vet bills, which is why you might want to consider pet insurance.

Pet insurance policies can help pay for treatment if your furry friend gets sick or hurt. In some cases, they may also cover vaccinations and other routine care. Here’s how to decide whether pet insurance is right for your rescue dog.

Estimate the cost of vet care

It’s impossible to know which medical problems a given pet may have in the future. However, researching the breeds you’re interested in can help you get a sense of which health conditions are most likely to crop up, says Dr. Antonio DeMarco, chief medical officer at GoodVets, a chain of animal hospitals with locations across the U.S. Some of these conditions can be both serious and expensive to treat, he says.

For example, large-breed dogs like golden and Labrador retrievers are prone to hip dysplasia, a deformity of the hip joint. Some dogs may need surgery to treat it, costing thousands of dollars.

A local vet can advise you on potential health concerns and how much it might cost to manage them. They can also help you estimate the price of routine care.

Understand pet insurance

Pet insurance likely won’t reimburse every dollar you spend at the vet. For example, most plans won’t cover pre-existing conditions that your dog had before you bought the policy. So if you adopt a senior dog with diabetes, you’ll need to pay for the treatment yourself.

For the same reason, you can’t simply wait to get a policy until your vet diagnoses an injury or illness. DeMarco has had pet owners ask him if they can buy insurance after their dog tears an ACL. “[You] sure can, but this isn’t covered,” he tells them.

Most pet insurance plans pay to treat illnesses and injuries but won’t help with routine care unless you buy extra coverage. That coverage may be worth adding for certain dogs, says Maureen Sosa, director of pet support at the Humane Rescue Alliance in Washington, D.C. Smaller dogs are more prone to dental disease and benefit from regular cleanings, which wellness plans can help pay for.

When shopping for pet insurance, check for deductibles and copays. Say your plan will pay 80% of your expenses after you’ve met the $500 annual deductible. That means you’d have to spend $500 on your pet’s treatment in a given year before your plan would start reimbursing you.

Your policy may also have a maximum payout limit, such as $5,000 or $10,000 per year.

Get pet insurance quotes

The average cost of accident and illness coverage for a dog is about $640 per year, according to the North American Pet Health Insurance Association. However, you might pay more or less depending on where you live, the coverage options you choose and the breed and age of your dog.

You can get online quotes from most pet insurance providers. Check rates from at least three companies to make sure you’re getting the best price for the coverage you want.

Pet insurance isn’t worth the cost for every rescue dog. Policies may be prohibitively expensive for older dogs, especially if they already have chronic conditions that the policy won’t cover. In these cases, you may be better off skipping insurance and setting up an emergency fund for vet expenses.

Consider your peace of mind

One of the biggest benefits of pet insurance is avoiding heart-breaking financial decisions. Sosa has seen owners forced to surrender pets because they couldn’t afford to treat their medical conditions. “The economy is in a really bad place,” she says. “That’s trickling down and affecting what people are able to afford.”

Even worse, some owners may have to euthanize their dogs if the treatment for a serious condition is simply too expensive, DeMarco says. “As veterinarians, that is the worst-case scenario for us.”

You may go years without having to use your pet insurance. But in a crisis, having the policy can give you peace of mind, DeMarco says. You’ll know that “if those situations arise, you’re going to be able to handle them financially and not have to make decisions based on finances rather than what’s best for your animal.”

This article was written by NerdWallet and was originally published by The Associated Press.

The article Adopting a Rescue Dog? Here’s What to Know About Pet Insurance originally appeared on NerdWallet.

Open enrollment is no one’s idea of a good time, but health coverage is a crucial part of your financial health. Whether you’re getting insurance through an employer or the Affordable Care Act marketplace, it’s important to ask the right questions before you choose a health plan for 2024.

“Open enrollment is a great time to do a personal health audit,” says certified public accountant Charlene Rhinehart, a personal finance editor at drug savings site GoodRx. “Understanding your current and anticipated health care needs will help you decide which plan is the best fit.”

Here’s how to weigh your options.

Are your doctors in network?

Plan networks change from year to year. If you love your doctor or specialist, make sure they’re still in the network of the plan you’re considering for 2024.

You should also consider whether you want the option to go out of the network — which you can usually do in a preferred provider organization, or PPO, plan, although it will cost more. Health maintenance organizations, or HMOs, tend to be cheaper but lack the out-of-network flexibility.

Are your medications covered?

If you’re on prescription medications, check plan formularies to make sure you understand how your drugs will be covered in 2024. Drug coverage can change from year to year, even if you stick with the same plan.

“Even if you were in an Aetna plan before, and you say, ‘Well, I’ll stay with Aetna again,’ you still want to look and make sure the medication you’re taking is still on the formulary,” says Abbie Leibowitz, chief medical officer and co-founder of Health Advocate, which provides integrated health advocacy and health benefits programs.

What are the out-of-pocket costs?

Every plan has set costs, like the monthly premiums, plus the costs of care, which include the deductible and any copays and coinsurance. Comparing plans means estimating how much health care you’ll use next year.

On the one hand, you have the costs you’d pay if you don’t use the plan much beyond preventive care. On the other hand, you have the maximum amount you could pay in each plan if you’re a heavy health care user. You can easily compare these situations.

There’s a squishy middle ground, however, where the best plan for you depends on the amount and type of care you’ll need next year.

“The tricky part is we never really know how much we’re going to spend in a given year if we’re in the middle,” says Adam Rosenfeld, a health care benefits expert and president of employee benefits company Rubicon Benefits. The best thing, he says, is to look at your current claims information and imagine that the next year will be identical. On which plan would you be better off?

“It’s the best predictive modeling you can do at this point,” Rosenfeld says.

Is a high-deductible plan right for you?

A high-deductible health plan, or HDHP, in 2024 is defined as a plan with a deductible of at least $1,600 for individual coverage or $3,200 for family coverage, with out-of-pocket maximums of no more than $8,050 or $16,100, respectively. HDHPs usually have lower premiums, and sometimes companies kick in a contribution to a health savings account, or HSA, to help cover the deductible.

An HDHP can be an appropriate plan for people in a variety of health situations, as long as they’re prepared to pay the deductible if they need health care.

“The question is, ‘Can you afford it?’” says Adria Gross, an insurance broker, consultant and founder of MedWise Insurance Advocacy, which helps clients and attorneys with medical claims issues. If you’re healthy, Gross says, go for the HDHP. But in the case of a bad accident, you’ll want to make sure you have the means to pay the full deductible.

Can you stack benefits?

You might have access to voluntary benefits through your employer that can help cover costs that your insurance doesn’t cover. For example, Aflac policies can help pay expenses if you have an accident or get cancer.

You may find that you can get a high-deductible health plan plus a supplemental plan that would help you cover your deductible for less than the cost of a traditional health plan. “It can be a lot less than moving to the next tier where the deductible is lower,” Leibowitz says.

Do you have special care needs?

Some insurance plans cover things like weight loss surgery or infertility treatments — but some don’t, and the exclusion can make a huge difference if it’s a procedure you’re considering. You might find that one insurance company covers a certain surgery or test while another views it as investigational and not medically necessary.

“I call them the fringes,” Leibowitz says. “They’re beyond the typical medical and surgery coverage.” The focus is narrow, he says, but the coverage can be important.

The underlying message, he says, is that just because it looks like the same plan from the same company you were with this year, don’t assume that it hasn’t changed in ways that are important to you. “Network, formulary, benefits,” Leibowitz says, “you have to do your homework.”

This article was written by NerdWallet and was originally published by The Associated Press. 

The article Questions You Aren’t Asking (but Should) During Open Enrollment originally appeared on NerdWallet.

Inheritances aren’t just for the rich: Less than half of the total volume of transfers is expected to come from high-net-worth households.

“It’s a really unique point in history because of the amount of wealth,” says Chayce Horton, senior analyst on the wealth management team at Cerulli. “It’s something we haven’t seen before.”

As a result of that magnitude, inheritance recipients might not know what to do with one, and whether to count on the windfall before it arrives.

If you’re wondering whether to broach the topic of a potential inheritance with your own parents or grandparents, here are some guidelines financial experts recommend:

Talk about inheritance early

“If parents haven’t brought it up with you, you need to bring it up with them,” says Isabel Barrow, director, financial planning at Edelman Financial Engines, an independent financial advisory firm. “We know if you don’t talk about it ahead of time, there are going to be problems.” She says these can include fights between family members, confusion over what to do with the money or even uncertainty about where to find the most updated version of a family member’s will.

Barrow suggests raising the topic while the entire family is together at holidays or birthdays when everyone is in a good mood. “That might be an opportunity for you just to mention, ‘Hey, I’m doing my financial planning and they suggested I talk to you about your plan,’” she says.

Mitch Mitchell, products counsel with Trust & Will, an online estate planning company, says it can be helpful to tell your parents that you are trying to plan for something that is going to be hard for you. He suggests saying something like, “It would be a gift if you can map this out.”

Respect cultural differences

Some cultures and generations are less comfortable talking openly about money than others, says Leo Chubinishvili, a wealth advisor at Access Wealth in East Hanover, New Jersey. Respecting those differences can help prevent unnecessary tension and discomfort. “It depends on the cultural setting of your family and how you were brought up,” he says.

While Chubinishvili says all families should talk about money in some capacity, some families might take longer to warm up to the subject or might benefit from the help of a financial professional leading the conversation.

Make sure the money is safe

Another benefit to talking about a potential inheritance with your parents is that it gives you the chance to offer assistance, should they need it. “Every parent should start disclosing assets and accounts to their kids for multiple reasons, but number one, for safety and security,” says Walter Russell, chief executive of Russell and Associates, an investment firm in New Albany, Ohio.

“As parents start aging, they might forget about an account,” Russell says, and seniors are also targets for scam artists. If you know more details about your parents’ finances, then you can more easily notice discrepancies and help keep their money safe.

Plan to spend it wisely

Whether it’s $5,000 or $500,000, an inheritance can open up possibilities that you hadn’t previously considered, like a vacation or dream home. But financial experts recommend first focusing on less exciting financial expenditures, like paying off debt and shoring up savings.

“You can start cleaning up your financial house if you’ve paid off debt and build yourself a good emergency fund with six to 24 months of living expenses,” Barrow says. After that, she suggests thinking about funding your intermediate and longer-term goals around housing, cars, education and retirement. She adds that using part of an inheritance to celebrate your loved one’s life in some way, whether it’s a trip or nice dinner, can also be a way to honor them.

Don’t bank on it

“The market could turn, the family business could go bankrupt. You don’t want to plan your retirement or entire financial plan on that inheritance,” says Laurie Smith, a partner at Wiss, an accounting and tax firm in New Jersey.

There’s also the possibility that your parents will need that money while they’re still living. “What if, 10 to 15 years from now, one of your parents has dementia and needs to go into a nursing home? You’re talking $200,000-plus a year that the parent might need to be using. Or your parent might decide to leave their money to their favorite charity,” Barrow says.

In other words, an inheritance is never guaranteed. That’s why it makes sense to talk with your parents about their plans while continuing to make sure your long-term goals — such as saving for retirement — don’t rely on a windfall, since one may never come.

This article was written by NerdWallet and was originally published by The Associated Press. 

Kimberly Palmer writes for NerdWallet. Email: kpalmer@nerdwallet.com. Twitter: @kimberlypalmer.

The article How to Plan for a Potential Inheritance originally appeared on NerdWallet.

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

When I wrote about employer-provided emergency savings accounts four years ago, the idea was still pretty novel. Some companies were experimenting with ways to help their workers save for short-term needs, but the concept wasn’t even on the radar for many employers.

What a difference the pandemic made. Millions were thrown out of work with little warning, and few had the financial reserves to survive even a few months of unemployment. Big employers, and lawmakers, took notice, says Claire Chamberlain, global head of social impact for investment manager BlackRock. The result: Hundreds of thousands of workers now have options to build emergency savings through their employers, and Congress passed laws to encourage more companies to add short-term savings options.

“I think a lot of people woke up,” Chamberlain says.

Pandemic highlighted Americans’ financial fragility

Employers tend to overestimate their workers’ financial stability, says Timothy Flacke, co-founder and executive director of Commonwealth, a nonprofit that promotes financial security. The pandemic brought home the reality that most Americans live paycheck to paycheck, and many have little or no emergency savings.

“COVID really changed a lot of things in terms of an employer’s understanding of the day-to-day financial challenges of their people,” Flacke says.

But there’s also been a growing awareness that emergency savings are key to financial health, he says. Even a small amount of savings can help families avoid falling behind on bills or turning to high-cost loans. Workers without emergency savings are less likely to contribute to retirement plans, and those with savings are less likely to tap the retirement savings they have, Flacke says.

In addition, companies are aware that financial stress takes a toll on workers’ productivity by distracting them during working hours, Chamberlain says.

“It’s that productivity drag that I think at its core is motivating employers,” Chamberlain says.

Push for emergency savings picks up steam

In 2019, BlackRock launched its Emergency Savings Initiative in partnership with Commonwealth, the Financial Health Network and a third nonprofit, Common Cents Lab. The initiative started with a handful of employers and financial services firms experimenting with emergency savings programs.

Since the pandemic began, those companies have been joined by several big employers — including UPS, Starbucks, Delta Air Lines and Best Buy. Some provide incentives to encourage savings: Delta will chip in up to $1,000 for workers who complete a financial education program, for example, while Starbucks contributes up to $250.

One of the biggest hits so far is a savings feature that payroll processor ADP added to its Wisely prepaid debit card and app. Wisely can be used by employers to pay workers as an alternative to checks or direct deposit. The savings feature allows users to set up automatic transfers to a “savings envelope,” and transfer savings back to their available balance whenever they need to spend the money. By the end of 2022, Wisely users had saved more than $1.55 billion, Chamberlain says.

Don’t expect an emergency savings plan at open enrollment

We’re a long way from employer-provided emergency savings accounts being as common as employer-provided health insurance or retirement plans. But momentum seems to be building.

“It is rare that I have a conversation with an organization of any size that is not thinking about emergency savings,” says Matt Bahl, Financial Health Network’s vice president and head of workplace financial health.

It doesn’t hurt that SECURE 2.0, the retirement legislation that became law late last year, includes provisions that encourage employers to offer emergency savings options.

Starting in 2024, employers can add an after-tax emergency savings option to their retirement plans, allowing workers to put aside up to $2,500 — an option often referred to as a 401(k) “sidecar.” In addition, employers can opt for automatic enrollment to increase participation. Another provision allows companies to let workers take penalty-free withdrawals of up to $1,000 from their 401(k)s and other workplace retirement accounts.

But employers may be more likely to offer emergency savings programs in addition to, rather than as part of, their retirement plans, Bahl says. Standalone savings plans could be easier and cheaper to implement, and could attract some of the most financially fragile workers who may not feel able to contribute to retirement, Bahl says.

“We work with some of the largest employers in the country. Not a single one of them is doing a sidecar program, but more than half of them have or are planning to deploy an out-of-retirement-plan emergency savings option,” Bahl says.

Still, having Congress’ blessing on the concept of employer-provided emergency savings plans was a watershed moment, Bahl and Flacke agree.

“Certainly having policymakers who can’t agree on much these days pass a bill that includes these provisions is a pretty clear signal,” Flacke says.

In the past, workers may have been reluctant to ask for emergency savings options, concerned that they would be stigmatized for struggling financially, Flacke adds. Greater awareness that most workers live paycheck to paycheck could ease that fear.

“I think there’s more space for people to say, ‘That’s my reality. And it would really be helpful if you can put systems in place to allow me to have a buffer,’” Flacke says.

The article How Your Employer Can Help You Save for Emergencies originally appeared on NerdWallet.

Travelers encountered many weather surprises this summer, from wildfires in Europe to knee-deep mud at Burning Man. Indeed, it was the hottest summer on record around the globe, according to the European Union’s Copernicus Climate Change Service.

“The dog days of summer are not just barking, they are biting,” said U.N. Secretary-General António Guterres in a prepared statement published Sept. 6. “Our planet has just endured a season of simmering — the hottest summer on record. Climate breakdown has begun.”

Shifting weather patterns are raising questions about where, when, how and whether tourists will travel.

For example, does it still make sense to visit Italy in July, despite high temperatures, large crowds and minimal air conditioning? Or should “peak” travel season move to the more hospitable autumn or spring months?

Tourism destinations are starting to take note — and get worried — about the toll climate change could take on this enormous industry.

Hot destinations

Escaping to the Spanish coast for the summer used to sound like a dream. This year it turned into more of a nightmare for Mediterranean travelers. The coastal city of Valencia, Spain, saw temperatures reach 116 degrees Fahrenheit in August, a record high. That came amid Spain’s limits on air conditioning use in public spaces, leaving tourists to sweat it out.

These trends are only likely to get worse, driving travelers away from hot beachside destinations in Europe, according to a July report from the European Commission’s Joint Research Centre. Southern coastal regions such as Greece, Italy and Spain are expected to see a drop in tourism if temperatures continue to increase.

On the other hand, colder destinations in Northern Europe could actually see more vacationers. Denmark, France and the United Kingdom could receive more tourists because of higher temperatures, according to the report. Greenland, which is mostly covered with ice, is expecting to see far more tourists in the coming decades, with a new airport set to open in 2024.

Closer to home, many popular destinations have already been affected by rising temperatures. The namesake glaciers of Glacier National Park have lost an average of 40% of their size between 1966 and 2015, according to the National Park Service. Florida’s coral reefs were bleaching and dying under the stress of record ocean temperatures this summer.

Peak travel seasons

Summers are for vacations — that’s a truth so universally acknowledged as to be almost self-evident. Families travel while kids are out of school, and office workers flee to vacation in ideal weather.

Yet, as summers continue to warm, these vacations could give way to “shoulder season” alternatives in spring and autumn months. In other words, tourists could change when (rather than where) they visit.

Indeed, this change may already be taking place. Short-term rental analytics platform AirDNA reported that occupancy rates at mountain and lake destinations in October 2022 were nearly as high as 2019’s peak occupancy (in July), bucking the typical sharp downward trend after the summer.

Cherry blossoms in Japan are flowering 11 days earlier than they used to, according to a 2022 report in the journal Environmental Research Letters. This has shifted the tourist-attracting cherry blossom festival from April into March.

Changes in flexible working conditions, as well as pent-up demand from the pandemic, could also be contributing to the rise of shoulder season travel.

Yet as more travelers take stock of changing weather patterns, they will likely adjust their schedules to avoid stifling summer heat. The European Commission’s Joint Research Centre estimates that southern coastal regions could lose as much as 10% of tourists during peak summer months.

A climate catch-22

A changing climate will affect how and when tourists travel. Yet this causation runs the other way, as well: Tourism is itself affecting the climate.

Tourism accounts for about 8% of global emissions, according to some estimates. A single trans-Atlantic flight would require an acre of forest to absorb its carbon emissions. Although the airline industry is racing to reduce emissions, it lags far behind other major emitters, such as passenger vehicles, in making meaningful change.

What does that mean for airline passengers? Either they must begin reducing the number of miles they fly, or governments may begin imposing restrictions in order to reduce emissions.

For example, France has already banned short-haul domestic flights for routes already serviced by rail. That is, if travelers can get there in less than two and a half hours on a train, they can no longer fly. Similar bans could appear throughout Europe as countries get more aggressive on combating climate change.

Some advocates have even proposed a frequent flyer tax that scales with the number of flights a traveler takes — an effort to curb these large carbon footprints.

Whether these or similar measures take off in coming years or not, this much is clear: The days of unfettered jet-setting could be coming to an end.

This article was written by NerdWallet and was originally published by The Associated Press.

The article How Climate Change Could Affect When and Where People Travel originally appeared on NerdWallet.

As borrowers gear up for federal student loan bills resuming this fall, they face a revamped landscape that includes a new repayment plan, servicer switches and long call wait times. Another imminent concern: scammers who want to take advantage of the moment.

“Whenever there’s confusion in the marketplace, that’s when the criminal fraudsters get active,” says Clayton LiaBraaten, senior executive advisor at Truecaller, an app that blocks spam calls.

Borrowers need to protect themselves, even as regulators crack down on scammers. In August, the Federal Trade Commission (FTC) caught a group of scammers who brought in roughly $8.8 million with false promises of “Biden Loan Forgiveness” in exchange for hefty upfront fees. The group claimed to be affiliated with the U.S. Department of Education and primarily targeted borrowers via calls and texts, the FTC said.

If you receive an unsolicited call or text about your student loans, it’s probably a scam. Here’s how to spot and avoid a student loan repayment scam — and what to do if you think you’re a victim of one, according to experts.

What to watch out for

Student loan scams vary widely, but they often contain a few key ingredients. Here are some common red flags.

Advertising from the ‘government’

Scammers will often use the word “federal” in their communications, LiaBraaten says. They might claim federal or government affiliation, or they could claim to be connected with the Education Department or your student loan servicer.

Aggressive advertising language can also indicate that communication isn’t from the government.

“If you are a student loan borrower, you need to be aware that the federal government isn’t soliciting you,” says Leslie Tayne, a financial debt attorney. “If it sounds like a sales pitch with guarantees and promises, that’s not coming from the federal government.”

Relief that costs money

If someone asks you to pay an upfront or monthly fee to access debt relief, it’s a scam.

It’s always free to enroll in or benefit from any legitimate federal student loan relief, such as income-driven repayment (IDR) plans, borrower defense to repayment, Public Service Loan Forgiveness and the IDR account adjustment.

And if you have questions about your loans or repayment options, you can call your servicer for free guidance.

Promises that are too good to be true

Keep your guard up if you receive calls with promises of instant student loan relief. Most federal relief programs require at least a decade of payments to qualify — and no company or person has the ability to negotiate a special deal with your loan servicer or the government, warns the Education Department.

“Legitimate loan forgiveness programs usually have these strict eligibility criteria, so any sort of instant forgiveness is a red flag,” says Ally Armeson, program director of the nonprofit Cybercrime Support Network. Scammers see an opportunity with people panicking around repayment and try to position themselves as saviors, she says.

How scammers reach you

Student loan scammers can get creative with their contact methods. Here are a few to watch out for.

Robocalls

Think twice if your phone rings with an unknown number. In the first half of September, scammers placed more than 350,000 student loan-related robocalls, according to Transaction Network Services, a financial infrastructure firm.

“Beware of unsolicited calls or communication,” Armeson says. “That is the number-one way that a scammer will weasel into your life.”

Snail mail

Scammers may also send letters through the mail. Read them closely. Even if it seems official or formal, a scam letter will often include grammatical or spelling errors, the Education Department says.

Texts and social media

Increasingly, scammers are also targeting borrowers with texts and social media messages, Tayne says. Scams that began on social media have accounted for $2.7 billion in reported losses since 2021, more than any other contact method, the FTC said earlier this month.

Official Education Department text messages will only come from the numbers 227722 or 51592.

Email

Scammers may try to sneak into your inbox. If an email looks suspicious, double-check the sender.

Legitimate emails from the Education Department will only come from these senders:

• noreply@studentaid.gov.
• noreply@debtrelief.studentaid.gov.
• ed.gov@public.govdelivery.com.

Protecting yourself from a student loan scam

Don’t engage if you receive a call about your student loans out of nowhere. Hang up if it’s a robocall; if a person is on the other side, quickly end the call.

“If someone says they are from a specific agency, department or loan servicer, just say, ‘you know what, let me hang up and do my research, and I’ll go from there by myself,'” Armeson says.

If you get an email or text about your student loans, don’t click on any links.

Use strong passwords and enable two-factor authentication on all of your online financial accounts, including your StudentAid.Gov and student loan servicer accounts, LiaBraaten says.

Never share your login information. With just your username and password, scammers can sign legally binding student loan documents electronically and make changes to your federal student loan account.

The Education Department and your servicer will never ask for your password.

What to do if you’re a student loan scam victim

If you believe a scammer has targeted you, immediately stop communicating with them. Then, take the following steps to get help and protect yourself from any further harm:

• Contact your student loan servicer. Call your servicer and tell them what happened. Check the status of your loan and ask if the scammer did anything to your account.
• Call your bank and credit card company. Ask them to stop any payments to a scammer.
• Change your passwords. Change all passwords associated with your financial accounts and student loans, like your StudentAid.gov and servicer accounts.
• Monitor your finances. Check to see if anyone has opened an unauthorized account or line of credit in your name. You can check your credit report for free each week on AnnualCreditReport.com.
• Consider freezing your credit. If you think the scammer may have personal information, like your Social Security number, freeze your credit to prevent identity theft and fraud.
• Save all communication records. If the scammer has texted or emailed you, save these records to send the information to the FTC and other law enforcement agencies.

Report possible scams to the FTC, which may use the report to spot trends, educate the public and bring cases against fraudsters in partnership with more than 2,800 law enforcement organizations.

If scammers took your money, the FTC will also give you advice on how to recover it. “The quicker you act, the better your chance of getting your money back,” the FTC website says.

You can also report the student loan scam to your state’s attorney general’s office or the Consumer Financial Protection Bureau for further assistance and investigation.

The article How to Protect Yourself From Student Loan Scams as Bills Resume originally appeared on NerdWallet.

People who drive to work day in and day out have likely grown weary of hearing about the growth (and then partial reversal) of working from home. The rising costs of their commute no doubt add insult to injury.

The share of people working from home increased dramatically in 2020 and remains higher now than before the pandemic. But the overwhelming majority of U.S. employees — 77% of them — still commute. That’s 124 million workers on the road in 2022, according to recently released American Community Survey data from the U.S. Census Bureau. This is at a time when vehicle ownership costs are up considerably.

In-person workers are less likely to be high earners. Jobs in lower-earning service and manufacturing industries can’t be done remotely like those in many tech and professional fields. Lower relative wages make increased commuting costs tough to handle (along with sharing the road again with higher-earning workers getting called back to their perk-rich offices).

Commuter numbers rise by 7.5 million in 2022

The number of commuters — those driving themselves or carpooling — has begun recovering from the pandemic decline but hasn’t reached pre-pandemic levels, according to American Community Survey data. In fact, though the total number of workers in 2022 exceeded the number of workers in 2019, the number of commuters still remains lower.

That said, more than 124 million Americans commuted in 2022, accounting for 77% of workers. Though some remote workers are being called back to the office, it’s widely believed that working from home will remain more common now than it was before 2020. Even so, commuters will long outnumber telecommuters.

Commuter vehicles reach 116 million as ownership costs rise

In 2022, Americans used 116 million vehicles in their commuting, up from 110 million the year prior, according to the U.S. Census Bureau data. And during that time, the costs associated with those vehicles were growing considerably.

The costs of owning a vehicle grew at a double-digit rate every month from April 2021 to November 2022, according to this NerdWallet Vehicle Ownership Costs Index. That growth has slowed in 2023, but fuel prices continue to hold it aloft. Ownership inflation was 11% in September. And since 2019, the costs — including gas, repairs and maintenance, parking, insurance and licensing costs — have risen 35%.

Commuter cost-saving strategies

If you’re among the millions of commuters on U.S. roadways, you’ve likely seen these trends in real time, as morning traffic during COVID ebbed to nonexistent, and slowly rebuilt to nearly pre-pandemic congestion. While we don’t have the census data for 2023, if you’re driving in rush hour, you can likely guess what those numbers will show.

Commuting costs money and valuable time. Obviously, if your employer is agreeable to a hybrid arrangement of some work-from-home days and some in the office, you can cut a portion of all of these costs. But that isn’t always possible, and the cruel irony is it’s often the lower-paying jobs that require a commute.

Chipping away at your commuter expenses can feel a little like doing dishes or laundry — there will always be more. But there are a few relatively low-effort ways to ensure you’re not paying more than you need to be.

1. Shop around for car insurance

Auto insurance rates have skyrocketed over the past few years, but only about one-fourth of Americans shop for auto insurance on a regular basis, according to a March 2023 NerdWallet survey. Reevaluate your policy from time to time: Ask your current insurer about discounts you might be missing, and compare rates between insurers to ensure you’re not overpaying. Also, right-size your coverage to fit your needs. While you don’t want too little coverage, which risks a significant loss in the event of an accident, you likely don’t need a pricey policy if your car is paid off and on its last legs.

2. Fill up on gas discounts and rewards

Electric vehicle use is on the rise, but the overwhelming majority of drivers are fueling up at the pump. Because gas accounts for about half of vehicle ownership costs, according to NerdWallet’s analysis, consider using an app to ensure you’re frequenting the stations with the lowest prices. If you’re loyal to one gas station or grocery store/gas station combo, look into their loyalty programs. Exxon Mobil, for example, offers points for purchasing gas and in-store items, and the points can be redeemed for gas savings. Kroger, a national grocery chain, offers one fuel point per dollar spent in their stores, and every 100 fuel points earn a 10-cent discount per gallon of gas.

3. Use credit card reward categories

Rewards credit cards can provide cash back or points for your gasoline. Some offer bonus categories on a quarterly basis, where you can get as much as 5% cash back for fuel purchases. Others allow you, the cardholder, to choose the reward category so you can customize your own gas rewards card.

4. Carpool

Splitting the costs of the drive can have a dramatic impact. If you’re unsure what to charge, divide the amount you spend on gas per workweek by the number of passengers, and add a bit. After all, gas is just one of the costs of your commute. Sharing your vehicle with a friend or coworker is a tough sell for some folks, particularly those of us who use our drive time to catch up on podcasts or singing lessons. But 9% of U.S. workers carpooled in 2022, according to census data, so perhaps it’s a matter of finding the right passenger — one who can harmonize.

The article Commuter Snapshot: Most Workers Hit the Roads as Costs Increase originally appeared on NerdWallet.

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

“Two is better than one” is an old adage that translates to finances, too. Two incomes can go much further than one, especially between married couples.

People who say “I do” also have access to various tax breaks that can give them a financial edge when it comes to building wealth. For instance, married couples filing their taxes jointly get a standard deduction of $27,700 in 2023, while single filers get a $13,850 deduction.

How can married couples act on the many tax breaks they have access to and use them to build wealth? Two certified public accountants share a few strategies for couples to consider.

Strategy 1: Investing

When married couples get a tax deduction or tax credit, there’s an opportunity to invest that extra money. There are a string of ways to invest the money, but couples could benefit from investing in themselves, says Sheneya Wilson, a CPA and founder of Fola Financial in the Bronx in New York City. Couples may choose to use their tax savings to invest in courses that improve their skills, market value and salaries, she says.

Retirement accounts like 401(k)s, IRAs or regular brokerage accounts are also an option for couples. Investing those extra dollars from tax breaks means couples have more money that can potentially grow and enjoy the benefits of compound interest.

Wilson adds that married folks can also consider alternative investments, such as commodities, gold, silver, royalties or music catalogs.

Ultimately, couples can choose investments that align with their goals and legacy.

“The best investments are going to be in line with how that person wants to leave an influence on the world,” Wilson says.

Strategy 2: Real estate

Married couples who own a property may be able to sell it and exclude some of the real estate capital gains tax from their income. For married couples filing jointly, that means they can keep up to $500,000 of the profit tax-free. Single filers, on the other hand, are capped at $250,000.

“Now think about what you can do with around $500,000 of tax-free income,” says Williams. That extra money could go toward investing in another property, she adds.

Note that couples have to own the house, use it as their main home, live there for at least two of the five years before selling and meet other rules in order to qualify for the exclusion.

Strategy 3: 529 plans

529 plans — investing plans for education that allow tax-free growth and withdrawals — are another way couples can use tax breaks to build wealth, says Jasmine Young, a CPA and founder of Southern Heritage Financial Group in Atlanta.

“It could be your niece, your nephew, your cousin, it could be you, whoever’s gonna use the money for educational expenses,” Young says. ”That’s one way for you to reduce your tax liability and put the money somewhere that’s going to give you a resource to build generational wealth.”

Some states offer deductions or credits for 529 plan contributions. A perk for married couples is that in many states, joint filers can deduct double the amount than single filers, lowering their taxable income. The amount joint filers can deduct varies from state to state.

Another way married people can benefit from 529 plan tax benefits is with the federal gift tax exclusion. While 529 plans don’t have an annual contribution limit, contributions are considered “gifts” by the IRS, which means gifting over a certain amount could lead to extra paperwork at tax time. In 2023, those married filing jointly could gift $34,000 without needing to file a gift tax return versus $17,000 for single people.

Married couples who take advantage of this larger limit can save more annually for their kids or loved one’s kids and potentially help them grow wealth faster.

Another wealth-building strategy couples can potentially use beginning in 2024 is rolling unused funds in a 529 account into a Roth IRA account for the beneficiary. By rolling unused funds into a Roth IRA, the beneficiary — be it a child or family member — can get a head start on saving for retirement. There are several conditions account owners must meet to do this, so consult a financial advisor beforehand.

Strategy 4: Entrepreneurship

If one spouse is an entrepreneur, or a couple runs a joint venture, there’s an opportunity to write off business losses during tax season, Wilson says.

“If you are married, filing jointly and your spouse is investing in starting a business, there may be a net loss from that business venture on the joint tax return because that spouse was investing in maybe educational courses [to] start their business,” she says.

In 2023, married couples with their own business can take a loss of up to $524,000, compared with $262,000 for single filers. The dollars that may have gone to paying taxes can be funneled into growing an existing business, starting a new one, or paying down debt.

Couples curious about exploring more strategies they can implement may want to speak with a finance professional like a tax advisor or financial planner.

This article was written by NerdWallet and was originally published by The Associated Press.

The article 4 Ways Married Couples Can Use Tax Breaks to Build Wealth originally appeared on NerdWallet.

In one sense, making work a smaller part of life is a permanent shift that people working from home experienced during the COVID-19 pandemic, says Cristina Banks, an industrial and organizational psychologist and director of the Interdisciplinary Center for Healthy Workplaces at the University of California, Berkeley Haas School of Business.

While working from home, people had more autonomy. They also had a clearer idea of the value of their time, which they could spend exercising or playing with their kids rather than sitting in traffic on their way to the office.

After many workers had that experience and are now being pushed to return to pre-pandemic norms, Banks says it’s hard for them to give up control over when or how much they work.

So, some workers embrace trends like Bare Minimum Monday, which suggests doing only the most important tasks at the start of the week, in order to retain that control.

But people’s choice to devote less time and energy to work may also have a more worrying root. Surveys repeatedly show that a large share of workers are teetering on the edge of burnout.

Roughly 3 out of 4 workers said they experienced work-related stress in the last month, according to the 2023 Work in America Survey by the American Psychological Association. More than half said that stress resulted in an array of negative effects, including emotional exhaustion, lack of motivation, a desire to quit, lower productivity and irritability, among others.

The statistics around mental health at work are so bleak that workplace well-being has become one of the highest priorities of public health and business organizations alike over the past two years.

For example, the surgeon general’s office has made addressing workers’ well-being one of its top priorities, saying the pandemic highlighted the link between people’s health and their work.

Bare Minimum Monday is a trend started on TikTok by Marisa Jo Mayes, a content creator and co-founder of Spacetime Monotasking, a startup providing virtual coworking space and productivity tools.

Mayes coined the term Bare Minimum Monday to describe her slowed-down start to the workweek. Instead of feeling paralyzed over an impossibly long to-do list, she focuses on doing only the most necessary work tasks.

When she’s done with those, she allows herself to set work aside in favor of self-care, creative pursuits, cleaning or anything else that feels good to do (which can also be more work).

“Before I started doing Bare Minimum Monday, I was physically making myself sick with stress,” Mayes says in one video. “I couldn’t produce anything because of the level of burnout I had reached.”

It turns out that lowering expectations for what you should accomplish in a day can have the unintended effect of making productive work easier to do.

While she started Bare Minimum Monday so she’d feel better, Mayes discovered that cutting herself some slack made her, “more productive than [she] ever thought possible.”

With holiday travel, I’ve always been a Grinch. Paying too much for airfare rubs every cell in my body the wrong way. Shelling out $1,000 for a domestic round-trip ticket for a route that usually costs half that just feels wrong, you know? So, while I’m happy to travel the world the other 49 weeks of the year, I typically try to stay home at the end of November and December.

For years I’ve waged a campaign within my family to observe Thanksgiving a week or two early. Shifting our calendar slightly would mean we could all feast together without all the headaches of holiday travel. So far my campaign has, well, failed.

I’m slowly coming around to the idea that holiday travel is important for a reason. Yes, it’s inconvenient. Yes, airports are clogged with screaming kids (including, now, mine). And yes, it’s just plain expensive. But it’s about something bigger than budgets — it’s about family.

OK, my small Grinchy heart hasn’t grown big enough to ignore price tags altogether. I still try to spend as little as possible when traveling for the holidays, even if it’s more expensive than a regular trip. Here’s how I think about it.

Step 1: Book right about … now

Recently, it’s been hard to know when is the right time to book holiday travel. The pandemic messed with how and when people traveled, leading experts to disagree about when airfare prices would be lowest.

Those data wrinkles have been ironed out, and now the picture is coming into focus. The best time to book mid-to-late December travel is right now — about 10 weeks before departure, according to a recent report from Google Flights. That’s true for domestic flights as well as those to Europe.

That’s right, despite what your high-strung parents might have told you, booking months in advance doesn’t actually save money. According to data from Hopper, a travel booking platform, prices for December trips have dropped about $40 since this summer. But they won’t drop much longer: After bottoming in October, Hopper expects fares to rise rapidly through November and by as much as $40 per day in the week leading up to the holidays.

Another factor that could affect airfare prices moving forward: Fuel costs. After bottoming early this summer, oil prices have been on the rise. This could put even more pressure than usual on prices for holiday travel.

All the more reason to book soon.

Step 2: Travel when others won’t

Everyone wants to know the secret to scoring cheap airfare during the holidays. The secret is that there is no secret: Prices are high throughout Thanksgiving week and the last two weeks of December, period.

Even using points and miles doesn’t always help. In fact, based on a NerdWallet analysis of hundreds of airline routes, booking award travel during the holidays usually yields a lower cent-per-mile value than booking award travel at other times.

Put simply: Using miles during the holidays is not a good way to avoid high prices. You’ll just spend a ton of miles rather than a ton of cash.

There’s really just one option: Do something inconvenient that other travelers are unwilling to do. Options include:

• Booking on the holidays themselves. Hopper estimates that flying on Christmas Eve or Christmas Day can save about $114 per ticket on domestic routes, for example.
• Taking a long trip. Flying the Monday of Thanksgiving week and returning any weekday of the following week can save you over $100 on flight costs, according to Hopper data.
• Pitching a new holiday for your family in early December, when airfares are low. This has a roughly 0% success rate, according to my own data.

Step 3: Consider total costs

It’s easy to get hyper-focused on airfare costs around the holidays and do everything possible to avoid high fares, even if it means an overnight layover at LAX or extending your trip to three weeks.

But airfare is only one of many travel expenses during the holidays. It might sound great to save $100 per ticket by leaving a few days early, but what about the additional costs of the trip?

For example, if you’re not staying with family, two days of lodging costs will easily eliminate (and potentially exceed) those airfare savings. And then there’s the pet sitter, the restaurant dinners you might buy to avoid another awkward meal with your family, etc.

The point is, the sticker shock of $1,000 fares in December can cause some people (OK, me) to find elaborate workarounds, but the workarounds can end up costing more in real dollar terms, or mental health expenditures. Do you really want to stay on a futon for three weeks?

Grinching pennies

You could be a Grinch like me and avoid holiday travel altogether. Or you could book travel willy-nilly and accept whatever ludicrous fares are available.

Better to take a middle road: Being cost-aware without getting lost in the weeds. Book travel in October if you can, avoid the absolute peak dates and consider traveling when others won’t, like Christmas Eve. Keep total travel costs, including accommodations and pet sitter in mind and remember that airfare isn’t everything.

Most of all, focus on what matters: Connecting with family.

But not, you know, too much.

The article Ask a Travel Nerd: 3 Steps to Booking Holiday Travel originally appeared on NerdWallet.

Holidays are meant to be full of love, but sometimes they’re full of stress and anxiety. One of the culprits can be the unspoken financial commitment of family dinners, travel and chaotic gift-buying. Sometimes the stress is beyond your control, but there are some things you can champion like planning and budgeting.

We asked a few of our Nerds to write down their best strategies for managing holiday stress and spending. Here are their responses.

Set a gift budget

If money wasn’t a thing, we could buy our loved ones anything they want or need. But money is a factor, so it’s ideal to work within a budget, which means having a limit for how much you spend on gifts. You can also take it a step further by agreeing on a spending cap with your loved ones, something senior copy editor Jim McNett does.

“The small circle of people I exchange gifts with have a quiet understanding to keep gifts under about $100,” he said.

Give secondhand gifts

It can feel taboo to give loved ones used gifts, but giving secondhand gifts is a cost-effective option. Copy chief Erica Harrington sometimes buys gifts for her loved ones secondhand.

“I shop on Etsy and eBay. For instance, my mom liked one of my purses I bought several years ago, so I searched for the brand on eBay and found her something similar from the same brand,” Harrington said.

To give it a new feel, get nice packaging for the gift. If you’re not sold on the idea of secondhand gifts, start with small, slightly used items like books. It’s also possible to find new items for less in charity shops and on online platforms like eBay, although you may have to bid for them.

Aside from buying gifts secondhand, you could also get holiday decorations from charity thrift shops.

Take a break from spending in the new year

It’s possible to spend more during the holidays than you do the rest of the year. Gifts aside, you could end up going out to dinner with friends more often or doing holiday activities with family. Spending more during the holidays isn’t a terrible thing if you financially plan for it. Spending big chunks of money can feel stressful, however, especially if you don’t have a surplus of funds. To help you recover from large holiday expenses, consider minimizing spending a few months after the holidays.

“If I know I’m going to be traveling or spending a lot over the holidays, I also plan to have a lot of downtime in January and February and even March, when I know I won’t be planning any big purchases,” said editor Chris Davis. He explained that taking time to financially recover post-holidays requires discipline, but it can help you get back on track for the rest of the year.

Try wish list apps

Not being sure what to buy a loved one can be stressful and lead to last-minute shopping. Last-minute purchases can sometimes be more expensive, especially if retailers mark prices up. To save yourself time and eliminate worry around whether your loved one will like the gift, consider using a platform like Giftster to share gift ideas. You can create a wish list, add items to it and share it with loved ones. There’s even an option to create a group wish list, which can be helpful for families or friend groups. Other apps you can use for wish lists include Giftbuster and WishSlate.

If you aren’t into apps, there are other ways to go about sharing wish lists with your loved ones like creating a spreadsheet to exchange gift ideas. iPhone users can also use the Notes app to collaborate on gift ideas.

Don’t feel pressure to buy gifts

While it is nice to give people gifts, it’s not a necessity, especially if it’s overwhelming or you can’t afford it. Editor Pamela de la Fuente experiences anxiety around the holidays, but “takes it in stride.” The mom of two has a busy life, so she doesn’t get around to doing meticulous financial planning for the holidays.

“I just try to limit the amount of toys I buy, I don’t exchange gifts with my husband or in-laws anymore, and I ask my sister what she wants and try to keep that gift-buying budget in check,” said de la Fuente. “I also try to do some experiences. Maybe instead of a gift, here’s money to go on a trip together or something like that.”

Use apps to budget

Holidays are a great time to blow the dust off your budgeting apps if they’ve been inactive. Creative producer Amanda Deisler uses an app to help her stay organized and plan spending.

“I actually use YNAB and set aside a specific amount for all holiday spending,” Deisler said. She also tracks her holiday expenses in the app.

Consider using apps to create a holiday budget, then throw funds in there weekly or monthly, using the apps to keep track of your savings. For instance, if you’ll be spending Hanukkah out of town with loved ones, you may want to create a budget for food and travel.

Repurpose or DIY decor

Buying new holiday decor every year can be expensive, especially if you go all out on ornaments and lights. Think about reusing or repurposing existing decorations. You may also add a festive touch by creating something new using items you have at home. For instance, you can make ornaments out of copper, foil and paper mache.

“I save money on the Christmas tree by having some fun using substitutes sometimes,” McNett said. He once decorated a ladder with lights and that served as his Christmas tree.

Track spending

When you’re spending with multiple credit and debit cards during the holidays, it’s easy to lose track of how much you’re charging. Consider taking a page out of writer Tommy Tindall’s book.

“I use just one credit card for all purchases and pay closer attention to my bank app during the spending season,” Tindall said.

Using a credit or debit card that gives you cash-back rewards or points may also be a clever way to get money back during the holidays.

Plan travel and gifts early

You don’t have to wait until the holidays to start shopping. Consider buying gifts throughout the year like content management specialist Sabrina Parys does.

“If I know I’m going to be spending money on presents, I try to remember this throughout the year and purchase things for later to relieve the pressure of purchasing something that’s probably marked up around the holidays,” she said. Major sales on days like the Fourth of July and Black Friday are great times to buy gifts at a discount.

The same applies to travel — think about deciding who is spending the holidays where early in the year so you can buy tickets while they’re cheap. It’s also OK to skip traveling during pricey periods such as Thanksgiving or New Year’s if you can’t afford it.

Bottom line — focusing on the things you can control like your budget and spending can hopefully make the season less stressful.

The article Finance Nerds Share Tips for Managing Holiday Budgets and Stress originally appeared on NerdWallet.

Retailers once again have begun their bid for consumers’ attention with big sales early in fall, such as what amounts to a second Amazon Prime Day sale. A longer holiday shopping season lets you spread out expenses, but it also could lead to overspending.

Danetha Doe, founder of financial education company Money & Mimosas, said in an email, “It’s easy to go into unplanned debt during this time because many of us show love to those we care about by buying gifts or by spending money on travel to be with loved ones.”

NerdWallet’s 2023 holiday shopping report bears that out: 52% of Americans incurred credit card debt from holiday shopping last year, and 31% of them still have lingering balances. Survey results also show that nearly 2 in 5 2023 holiday shoppers (39%) feel pressure to spend more on buying gifts than they’re comfortable spending this year, and 12% of 2023 holiday shoppers say they will likely use some of their emergency savings to buy gifts.

Whether you’re dealing with debt or trying to avoid it, here are some strategies that can help.

1. Create a spending plan

Take a good look at your finances before you do any spending, and figure out how much you can afford to put toward gifts and other costs. That can help you avoid a financial shock later.

“Developing a spending plan before you enter the holidays will help you avoid waking up on New Year’s Day with a financial hangover,” Doe said. “Your plan could include a list of all of the people you wish to buy a gift for and/or your estimated travel costs if you are visiting loved ones.”

2. Set financial boundaries

A financial boundary is a limit that you set to protect your money. Boundaries can be especially helpful during the holidays as you navigate the pressure to spend.

“Your financial boundaries may mean that you won’t participate in gift-giving because your money has other priorities,” Doe said. “Perhaps you’re saving up for a home, paying down debt or starting a business.”

Aim to set boundaries before getting into the thick of holiday shopping. For example, you might set a rule of waiting at least a day before completing an online purchase.

“The key to sticking to your financial boundaries is mindfulness,” certified financial therapist Celia Hughes said in an email. She suggested holding items in your online shopping cart for at least 24 hours. “Come back and see if you still want to make the purchase.”

“Slowing down decision-making supports holding down your boundaries,” Hughes said. “If you’re shopping in a store, take pictures of what you want to buy and then go home and sleep on it.”

3. Spend time rather than money

Money is a source of stress for many people during the holidays. Prioritizing experiences and your relationships can lift worry from you, and your family and friends, by shifting the focus away from spending.

“My advice to everyone, even if you are in a financially healthy place, is to focus your holidays on experiences and relationships,” Hughes said. “It may feel like a leap to move away from extreme consumerism, but when your loved ones remember time together and time with you, it will be easier for that to become the norm.”

4. Opt for low-cost gift-giving

Choosing to focus on lower-cost gifts is another way to capture the festive spirit without deepening debt or adding financial stress.

“For example, you could exchange handwritten letters of appreciation to each other rather than buying each other gifts,” Doe said. “If you’re feeling artsy, you could offer a DIY gift such as a candle, a hand-drawn card, an air freshener made with fresh spices placed in a Mason jar, ornaments, a candle holder or homemade jam.”

And if you still want to experience some holiday shopping, Hughes suggests: “Consider a gift exchange, where each person secretly draws the name of another family member, and sets a low spend amount, with the task of finding something that reminds you of your favorite thing about that person.”

5. Use cash

Using cash over cards may help you to be more mindful of your spending — especially during sales.

When you use a credit card, Doe said, “It is so easy to swipe it and forget it, but if you have to pull out the cash, you will be less likely to impulsively spend.”

6. Make a debt paydown plan

As your spending plan and boundaries help you keep holiday costs down, think about pushing those savings into debt paydown to give yourself the gift of lower balances.

If you need inspiration to stick with it, try the debt snowball method. Focus that extra money on your smallest debt first (still pay at least the minimums on your other debts). Because you’re starting small, you’ll have a shorter time until payoff. When that debt is paid off, turn to the next-biggest.

Or if you’re worried about interest costs, try the debt avalanche method. With this strategy, you focus on the debt with the highest interest rate first.

Also, debt consolidation can help by combining multiple debts into one payment — ideally with a lower interest rate. If you have good credit, you could look into a 0% interest balance transfer credit card or a debt consolidation loan.

The article Head Into Shopping Season Ready to Manage Spending and Debt originally appeared on NerdWallet.

With the holiday shopping season just starting and prices of many consumer goods continuing to rise, saving money can seem impossible. But those financial pressures also make doing so even more important.

“Saving is your margin,” says Eric Maldonado, a certified financial planner and owner of Aquila Wealth Advisors. “When things happen — your car breaks down or there’s a layoff, or smaller stuff like gifts for the holidays — you have something to fall back on.” Maldonado notes that saving can also allow you to have money for fun things.

The personal savings rate for Americans has been dropping in the last few months, and as of July was 3.5%, according to the U.S. Bureau of Economic Analysis.

Maldonado recommends aiming for a savings rate closer to 20% of your take-home income. “You can live off of 80% and put 20% toward deferred gratification,” he suggests.

That guidance matches the popular 50/30/20 budget, which suggests putting 50% of your take-home income toward needs, 30% toward wants, and 20% toward savings and any debt payments. “If you’re just starting out, then it can be too daunting, but you can work toward it,” Maldonado adds.

If you’re looking for ways to power up your savings, consider these strategies:

Pause before buying

“One of the biggest mistakes people make is buying things you don’t need,” says Vivian Tu, author of the forthcoming book “Rich AF: The Winning Money Mindset That Will Change Your Life” and a TikTok influencer who posts as @YourRichBFF. To counter that tendency, she recommends “taking a beat” before making any purchase. “Really ask yourself, ‘Why do I want that thing? What makes it special?’ she suggests.

Tu says asking herself that question helped her scale back on material purchases so she had more money for experiences, like vacations and brunches with friends.

Spread out the impact of big expenses

For big expenses that are on the horizon, Cary Carbonaro, a CFP and senior vice president at financial advisory firm ACM Wealth, recommends setting aside a small amount of money each month so the final cost doesn’t overwhelm your budget.

“If you know you’re going to spend $1,200 at Christmas, then put aside $100 a month for the whole year,” Carbonaro suggests. “Everybody overspends in December unless you budgeted for it.”

Try curbside pickup

When Ryan Greiser, a CFP and founder of the financial firm Opulus, and his wife noticed their credit card bill going up with inflation, they brainstormed ways to cut back. One of their most successful ideas was relying on online grocery ordering with curbside pickup.

“We noticed that if we did curbside pickup, our bill was $50 to $100 less than if we went into the store because we only bought the things on our list. It reduced impulse buys and allowed us to easily compare prices and coupons that popped up on the screen,” Greiser says. Given their weekly shopping needs for a family with three young children, that shift allowed them to save $200 to $400 a month.

Rotate subscriptions

Greiser and his family also started saving $10 to $30 a month by rotating their streaming subscriptions based on what shows they were currently watching. “We keep one or two active subscriptions and cancel the rest or pause it when a show wraps up so we can rotate to the next one,” he says, adding that he sets a reminder on his calendar so he doesn’t forget to cancel.

Similarly, he pauses his fitness subscriptions when the weather is good enough to exercise outside. “They are month to month, so easy to pause and restart,” he says.

Ask for discounts

Speaking up for yourself is another saving strategy. “You have power as a consumer,” Tu says.

That means you can ask your bank to waive late fees or overcharge fees, or ask for a discount on shoes that have a scuff on them. “Be polite, be kind, but you can be entitled and understand that your business has value,” she adds. The answer might be “no,” but there’s no reason not to ask, and it might just save you some money.

Shop around for insurance

Find discounts on the bills you don’t look at very often, too. Instead of letting your home and auto insurance auto-renew each month, consider taking time to shop around through an online comparison tool. When Greiser did that, he ended up saving a total of $1,000 on his bundled auto and home insurance plan.

Sign up for cash-back apps

Popular cash-back apps like Rakuten, Ibotta and RetailMeNot allow you to earn cash back for online shopping after you set up an account. “I highly recommend using cash-back apps,” Tu says. “I know it seems like kind of a pain to sign up, but you can save hundreds of dollars a year because it lets you get cash back on purchases you were already making.”

Sometimes making the extra effort pays off, right into your savings account.

This article was written by NerdWallet and was originally published by The Associated Press. 

The article 7 Saving Strategies You May Not Have Tried Yet originally appeared on NerdWallet.

Having access to trustworthy financial institutions is a critical part of building generational wealth. Families of color, including Latino families, face unique challenges in accessing these institutions.

We asked eight Latino financial professionals about how financial institutions can better serve Latino consumers, and how individuals can break cycles within their families and communities.

Responses have been edited for length and clarity. Learn more about each financial pro below, following the questions.

Latino communities are some of the most at risk when it comes to predatory lending. How can they break cycles?

Cindy Zuniga-Sanchez (founder of Zero-Based Budget Coaching): “I grew up in a low-income, predominantly Black and Latino community in the Bronx, where it was all too common to see advertisements for “fast cash” and payday lenders. I witnessed members of my community frantically turn to these options to cover their bills and other necessities which, thanks to predatory interest rates, resulted in them being trapped in a seemingly never-ending cycle of debt.

“Two ways that our community can break these predatory lending cycles are to bank with reputable and insured institutions and build a healthy credit history. Doing business with local credit unions and banks that are National Credit Union Administration (NCUA) or Federal Deposit Insurance Corporation (FDIC) insured not only safeguards deposits made (for example, in savings or checking accounts), but it also provides customers with access to other financial products, including personal loans. Building a positive credit history by making timely payments and responsibly using credit cards can offer even more options for those moments when you need to quickly access cash.”

Valerie Rivera (certified financial planner and founder of FirstGen Wealth): “Payday lenders perpetuate a cycle of poverty by taking advantage of people in a vulnerable position.

“If someone is in a bind and needs cash fast, this is a sign of a larger issue to address. The first step is to transition from this reactionary state to a proactive one where you are taking agency over your situation. First, take inventory of every single expense. What is needed? What can be cut? Look to see where there is flexibility. Then, open a free online savings account to start an emergency fund.”

Delyanne Barros (Delyanne the Money Coach): “Ending predatory lending at the source is essential but it’s not the responsibility of those being targeted. Thankfully, there are organizations like the American Civil Liberties Union (ACLU), the Center for Responsible Lending, and Public Citizen, which are all fighting for stricter regulations of financial industries in order to protect consumers. It’s going to take a concerted effort by many organizations to combat the lobbying efforts of the financial industry, which allows for the current predatory practices that we see today.

“A better option for lending would be using a credit union or community bank. These are much more likely to offer individuals lower interest rates with reasonable loan terms. If that’s not possible, consider government assistance programs on USA.gov or those offered by the state or the city where you live.”

How can Latino individuals and families help build trust in financial systems within their communities?

Yanely Espinal (author of “Mind Your Money”): “There is simply no other way to build trust than to earn it! There is so much talk of community outreach and cultural sensitivity and inclusivity, but we need to see action behind all these words!

“The credit scoring system in America is long overdue for improvements. My immigrant parents have no credit scores today due to their ‘thin file’ with the credit bureaus. However, they’ve made monthly payments for over 30 years to companies providing electricity, gas, water, phone and internet services, and more. They were told that these companies don’t report payments to credit bureaus because they’re considered ‘nontraditional’ credit types. Rent payments, layaway accounts and child care payments also do not get reported to credit bureaus. To establish trust within our community, financial institutions need to choose to value our ways of life and include them in traditional financial models.”

Rivera: “The real question is, ‘How can financial systems build trust within the Latinx communities?’ One step includes transparency and fair practices, including eliminating abusive fees.

“Another step is for financial institutions to engage with the community to understand Latinx needs and concerns. Hire staff who are fluent in Spanish and knowledgeable about the specific financial needs and challenges Latinx individuals and families face. Foster a diverse and inclusive workplace by hiring Latinx employees in various roles, including leadership positions.

“Financial institutions can develop and promote financial products that are affordable and accessible to low-income and underserved Latinx communities. Sites like NerdWallet are critical because they provide education in an unbiased and accessible format. One of the key elements in building trust is acknowledging where the large banks have missed the mark instead of leaving the onus on the individual to ignore the bad taste in their mouth.”

Carlos Hernandez (founder and CEO of Crediverso): “Building trust in financial systems within the Hispanic community is a multi-faceted endeavor. I’ve worked in finance in both Latin America and the U.S., including roles on Wall Street and as the head of a venture-backed financial technology startup serving the Hispanic community, and I can attest that the challenge arises from a mix of historical, cultural and practical reasons.

“Community-oriented strategies can help address these unique challenges at a local, institutional and regulatory level.”

Should generational wealth remain at the core of conversations about finances and the Latino community?

Maribel Fransisco (founder of Our Wealth Matters): “I believe the topic should be transitioned to ‘family wealth.’ Latinx communities are all about family — it is at the core of major decisions. Many families are more concerned with the ‘here and now’ — how are we paying for food, how are we paying the rent, what’s for dinner? By focusing on ‘family wealth’ we focus on the here and now within the community.”

Jannese Torres (creator and host of the “Yo Quiero Dinero” podcast): “If you’re first- or second-generation, your parents’ monetary goals may not have been growing their assets, but rather surviving in a new country and even supporting relatives abroad. So, the idea of generational wealth, or leaving money for the next generation, is relatively new. But it’s possible for us, too, and we have many more resources at our disposal than previous generations, thanks in large part to the internet.”

Louis F. Rosa (creator and host of the “On My Way to Wealth” podcast): ​Generational wealth should remain as a core topic in conversation about finances within the Latinx community, but it should be paired with building wealth in the first place, and then focus on how to continue that through generations to come. You can’t pass the baton if you’re not in the race, so we should focus on how to build wealth and protect it first, then focus on strategies to pass it down to future generations.”

Espinal: “While building generational wealth is a worthwhile goal, I find that it has become a buzzword that gets used to promote all kinds of financial products and services, particularly on social media.

“A 2022 Life Happens report found that 42% of Hispanics in America have life insurance, meanwhile data from the U.S. Census Bureau shows that only 28.3% own retirement investment accounts. This means our community is more prepared for death than we are for life! This motivates me to continue to educate my community and help them understand that generational wealth starts with you taking care of yourself financially so that your children are not burdened by your needs in retirement.

“I pride myself in prioritizing the cultural values I was taught, like generosity, community support, and loving and caring for my family. At the same time, I recognize the importance of being transparent with my family about what I can’t do for them financially because of my own goals and plans for my financial future. In my opinion, we need to balance out the concept of generational wealth with a comprehensive approach to financial planning, which includes not only securing our family’s future through life insurance, but actually prioritizing our present and individual financial well-being! This means building a tax-advantaged retirement plan, investing early and often to grow our wealth during our lifetimes, and actively seeking out economic opportunities and education to advance our income potential and entrepreneurial goals.”

NerdWallet staffers Cara Smith and Pamela de la Fuente contributed to this report.

More about the influencers

Delyanne Barros: Delyanne the Money Coach

Barros is the host of the “Diversifying” podcast on CNN. Like many people, she found herself confused and frustrated when it came to managing money. She had racked up $150,000 of student loan debt and barely understood her 401(k). In 2020, she became debt-free and launched Delyanne the Money Coach LLC to help others build generational wealth. Instagram: @delyannethemoneycoach

Yanely Espinal: MissBeHelpful

Yanely Espinal is a Brooklyn-born ball of energy! Her book, “Mind Your Money: Insightful Stories and Strategies to Help You Reach Your #MoneyGoals”, was published in May of 2023. Yanely serves as the Director of Educational Outreach for NGPF.org, a nonprofit working to ensure that every high school student gets a full semester of personal finance education. She is also an Advocate for the NGPF Mission 2030 Fund where she champions bills that propose a high school personal finance requirement at the state level. Yanely is a member of CNBC’s Financial Wellness Advisory Council, and the host of “Financially Inclined from Marketplace,” a video podcast for teens about money lessons for living life your own way. After working as an elementary school teacher, she parlayed her own financial journey into an educational platform, called MissBeHelpful, on YouTube and Instagram. Instagram: @missbehelpful

Maribel Francisco: OurWealthMatters

Francisco launched OurWealthMatters to empower and advocate for her community to plug in to financial institutions and become investors — regardless of immigration status. After cashing out her 401(k), unaware of the repercussions, she began creating English and Spanish, undocumented-friendly content to help others pursue financial independence and generational wealth. Instagram: @OurWealthMatters

Carlos Hernández: Crediverso

Carlos “Charlie” Hernández is the founder and CEO of Crediverso. Carlos launched Crediverso to help the U.S. Hispanic community and beyond achieve financial and legal literacy. Carlos is a graduate of Harvard University, Harvard Law and Business school, a registered attorney with the American Bar Association in California and a Licensed Real Estate broker with the California Bureau of Real Estate. Instagram: @creditcarlos

Valerie Rivera: FirstGen Wealth

Valerie Rivera, named one of Investopedia’s 100 Top Financial Advisors of 2023, has 15 years of experience empowering individuals/families to build and grow wealth. As one of only 1% of Latinas holding the Certified Financial Planner (CFP) designation, she founded FirstGen Wealth — a financial planning practice dedicated to early- to mid-career first-generation wealth builders nationwide. Twitter: @1GenWealth

Luis F. Rosa: On My Way to Wealth

Luis F. Rosa is the creator and host of the “On My Way to Wealth” podcast. He’s also the founder of Build a Better Financial Future LLC, a fee-only financial planning and investment management firm helping first-gen wealth creators. Instagram: @luis_f_rosa

Jannese Torres: Yo Quiero Dinero

Jannese Torres is an award-winning Latina money and business expert. With over a decade of experience in digital entrepreneurship, she teaches marginalized communities about starting a business, investing and financial independence through her three-time award-winning personal finance podcast and platform, “Yo Quiero Dinero.” Instagram: @yoquierodineropodcast

Cindy Zuniga-Sanchez: Zero-Based Budget Coaching

Cindy Zuniga-Sanchez is the founder of Zero-Based Budget Coaching LLC and author of “Overcoming Debt, Achieving Financial Freedom: 8 Pillars to Build Wealth.” She has spoken to thousands and coached hundreds on creating a realistic money plan to achieve financial freedom. Instagram: @zerobasedbudget

The article 8 Latino Financial Influencers to Follow in 2023 originally appeared on NerdWallet.

Only 3 in 10 Medicare beneficiaries shop around during open enrollment, according to a 2022 analysis from KFF, a health policy nonprofit — and only 1 in 10 Medicare Advantage enrollees voluntarily switch plans. But a 2020 analysis of Medicare Advantage plan choices by the National Bureau of Economic Research found that more than half of beneficiaries overspent by more than $1,000 due to the plan they selected.

Medicare open enrollment is Oct. 15 to Dec. 7, giving people with Medicare a chance to change plans for the upcoming year. Although potential Medicare Advantage enrollees may be swayed by $0 premiums and extra perks like vision and dental coverage, there are more important features to explore when you’re choosing next year’s coverage.

Here are some practices to avoid as you shop for Medicare Advantage this fall.

1. Thinking Medicare Advantage is Medicare

If you’re considering Medicare Advantage, understand that it’s not the same thing as government-provided Medicare. It offers the same benefits, but Medicare Advantage is run by private health insurance companies and it operates differently.

“You are essentially taking the Medicare coverage that you’ve been provided by the government and turning that in,” says Melinda Caughill, co-founder and CEO of 65 Incorporated, which offers Medicare guidance.

You can switch back to Original Medicare during each year’s open enrollment period, but you may not be able to qualify for an affordable Medicare Supplement Insurance, or Medigap, plan once you’re past the one-time Medigap open enrollment period. (Medigap helps with certain out-of-pocket costs not covered by Original Medicare.)

2. Assuming your doctors are in network

Medicare Advantage plans operate within networks of medical providers, and you usually must see in-network doctors for covered care.

“A lot of people don’t realize that — especially those $0-premium plans — they tend to have fairly confined networks,” says Emily Gang, CEO of the Medicare Coach, a site that provides Medicare guidance. “You want to double-check that your doctor is actually an approved provider in that network.”

Ask your providers what insurance they’ll be accepting in 2024, suggests Sarah Murdoch, director of client services for the Medicare Rights Center, a nonprofit consumer advocacy organization. It’s easier than trying to check each plan’s network individually.

3. Not checking your drug coverage

Like network providers, Medicare Part D prescription drug coverage can also change each year. Your drug plan might cover one of your medications differently in 2024, leaving you with more out-of-pocket costs than you expected.

“If you take even one brand name medication, your need to compare plans is incredibly high,” Caughill says. No brand names on your list? Shop around if you take five or more medications in general.

4. Buying for the dental benefits

Medicare Advantage plans usually include benefits that aren’t part of Original Medicare, such as dental, vision or hearing coverage. These extras may be appealing, but don’t let them steer your plan choice.

“First of all, it’s health insurance — so how is it going to cover your health care providers and your medications?” says Katy Votava, who holds a doctorate in health economics and nursing and is president and founder of Goodcare, a consulting firm focused on the economics of Medicare. “If you pick [your plan] for a benefit that isn’t health insurance, you’re often picking wrong. And the dental benefit is pretty limited in all these plans — it’s a couple of cleanings and some bite wings.”

5. Looking at the premium only

The majority of Medicare Advantage enrollees are in plans with no premium, meaning you pay nothing each month for the plan. “People see that $0 premium and they’re like, ‘Oh, it’s free,’ Gang says. “And it’s not.”

Research the rest of the plan’s costs before you sign up, including deductibles, copays, coinsurance and the out-of-pocket maximum, which is the most you might have to spend on covered care in a year. In 2023, the out-of-pocket max can be as high as $8,300 for in-network care.

6. Buying because your friend has it

People eligible for Medicare are bombarded by information during open enrollment, and it can be overwhelming. “They don’t shop,” Votava says. “They go with name recognition or what their friend has.”

The better choice: Focus on your own situation and find the plan that meets your needs.

If you need help, contact your State Health Insurance Assistance Program, or SHIP, for free Medicare guidance. Just don’t wait until the last minute, because appointments fill up, Votava says. “If you need individual help, you’d better get on the list.”

This article was written by NerdWallet and was originally published by The Associated Press. 

The article Shopping for Medicare Advantage: 6 Pitfalls to Avoid originally appeared on NerdWallet.

Lauren Gumport was en route to a vacation on the island of Chios, Greece, in July, where she was set to stay in an Airbnb for five nights with her best friend.

But upon her arrival in Athens to connect to her flight to Chios, she received a WhatsApp message from someone stating that their dad owned the Airbnb property, but that they managed it. The son said they’d be out of town — and that their dad didn’t speak English — but that Gumport would still be able to check in with the dad.

Gumport, who works for the travel insurance company Faye, is no stranger to stories of travel mishaps. She sensed something was off but forged ahead with the Chios flight. When she arrived at the meeting spot near the Airbnb, no one was there.

“It was hot and not in a touristy area, so it didn’t feel great,” she says. “We were exhausted from the flights and just wanted to drop our bags, so that was frustrating.”

She had an international cell phone plan, so after 15 minutes of waiting for the owner, she called Airbnb customer service. An hour later, an Airbnb customer service agent finally offered to rebook them elsewhere. But with no other suitable Airbnb listings, Gumport declined the offer. Airbnb then offered to pay for two nights at a hotel.

“Airbnb didn’t give any type of nightly cap on cost, and frankly the island didn’t have a ton of options,” she said. “We found a great hotel and sent Airbnb the receipt.”

The two-night hotel stay came out to $443.50, and Gumport received a reimbursement from Airbnb to her bank account in a few days. Airbnb also refunded the $434.22 cost of her original five-night reservation.

As for the other three nights they were supposed to spend in Chios? Gumport took the opportunity to check out another Greek island, where she booked a last-minute stay.

What happens if your host doesn’t show up?

Gumport contacted Airbnb as soon as she realized her host wasn’t there and says Airbnb appropriately compensated her for the inconvenience.

“Luckily, my friend and I have traveled so much that when things go wrong, we just quickly pivot and laugh it off,” she said. “We stayed two nights in the other hotel, had a great time, then hopped on a ferry to Samos, Greece, for the rest of our trip.”

But not all vacation rental companies have robust customer support, and not all will be as generous with compensation. Plus, not all travelers will be able to pivot like Gumport.

And it’s not just vacation rental companies, like Airbnb or Vrbo, where ghosting is a risk. It’s a challenge facing the ever-growing list of peer-to-peer travel platforms. That includes RV rental companies like Outdoorsy or RVshare, and rental car companies like Turo. There’s also a boat equivalent called GetMyBoat.

Each company has its own set of policies to mitigate mishaps. Some immediately rebook the closest alternative, which can often entail an upgrade. If the owner of the Toyota you booked through Turo doesn’t show up, the company might instead send a Tesla.

But even an upgraded Tesla might not come without some stress. Turo says you need to wait at least 30 minutes past the trip start time before you can contact customer support, according to a note on its help page. That’s 30 minutes you might be sitting on a curb in a foreign city, followed by the transport time hauling your bags to a different location once the company has found an alternative.

Also, the second option might not be exactly what you wanted. You may have to sacrifice features found in your initial vacation rental booking, like laundry or a kitchen, given the last-minute arrangement. Potential “upgrades” might not be much better, such as a larger car that just proves harder to park.

For what it’s worth, many sites that facilitate peer-to-peer rental services have increasingly cracked down on hosts who cancel reservations. In September 2023, vacation rental site Vrbo began instituting financial penalties for hosts. The amount of the fee is based on the overall cost of the listing, as well as how far out they cancel.

Have a plan in case you get ghosted

What if you make it to the check-in time and the host hasn’t canceled but also hasn’t materialized? Sometimes careful pre-trip research can’t prevent ghosting, but backup plans during the trip are critical.

• Understand the booking company’s policies. For example, Airbnb promises to help rebook guests into a similar place if the host cancels, but the promise only applies to cancellations made by the host within 30 days of check-in. So, if the host cancels 31 days before Super Bowl Sunday for a home in the host city, good luck finding affordable alternative lodging.
• Carefully read the reviews and only book listings that have plentiful, positive reviews. Previous guests might offer insights into the host’s reliability and help indicate which rentals to skip.
• Have contact information handy for the host and customer support. Should you be abroad, consider purchasing an international phone plan or at least know where to find free Wi-Fi (such as train stations or cafes).
• Research nearby alternatives, including other available listings. Be prepared to be flexible and change plans if necessary.
• Take advantage of last-minute deals. Just as Gumport ferried to another Greek island for part of her stay, you could be similarly flexible. Hotels can often be cheaper when booked last minute anyway. Jamie Lane, chief economist at vacation rental data platform AirDNA, says the same holds true with lodging beyond hotels.

“Ask for last-minute deals,” Lane says. “Unbooked weeks or recent cancellations can lead to big discounts to fill open nights.”

This article was written by NerdWallet and was originally published by The Associated Press.

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When you need to borrow cash, the last thing you want to encounter is a fraudster plotting to steal money from you. But as people increasingly shop for personal loans online, scammers are ready to take advantage.

Consumers reported losing nearly $8.8 billion in losses to fraud in 2022, according to the Federal Trade Commission. Those reports included imposters and scammers claiming to provide loans in exchange for information or money.

“Separating the legitimate lenders from the fakes can be really hard, and the scammers get better every day at making their pitches look more convincing,” says John Breyault, vice president of public policy, telecommunications and fraud at the nonprofit National Consumers League.

Before you provide personal or financial information, here are five signs the loan you’re considering may be a scam.

1. Text messages and robocalls

An out-of-the-blue robocall or text message inviting you to apply for a loan should give you pause, especially if you’ve had no prior contact with the lender.

The borrower usually makes the first move to get a personal loan by pre-qualifying or directly applying. In some cases, your bank or credit card issuer may send you a preapproved loan offer or an online lender may send follow-up emails after you check for offers with them.

But if the message makes you wonder how the lender found you, don’t trust it. Delete suspicious text messages and hang up on robocallers, Breyault says. Even saying “don’t contact me” could signal that you’re likely to respond, so the calls and texts may persist.

2. Advertisements of ‘guaranteed’ approval

A trustworthy lender can’t guarantee you’ll get a loan without reviewing your credit and finances, so avoid those that promise approval before you’ve even applied, Breyault says.

“Any legitimate lender is going to want to do a credit check on you to know if you’re going to be able to pay them back,” he says.

A high-interest lender may provide a loan with no credit check, but many at least do a soft credit pull and review your bank accounts before approval.

3. No state registration

Lenders are required by law to register in the state where they do business.

So if you have doubts about a lender, check to see if it’s licensed. The Consumer Financial Protection Bureau (CFPB) maintains a list of state bank regulators, and the National Association of Attorneys General has a list of states’ attorneys general, which are good places to start your search.

Just because a lender posts a license on its website doesn’t mean it’s real, Breyault says, so it’s best to confirm.

If you can’t find the license, treat it like a red flag and report it to your state regulator, says Suzanne Martindale, senior deputy commissioner for the consumer financial protection division at the California Department of Financial Protection and Innovation (DFPI).

4. A bad online reputation

Research a lender’s online reputation to confirm (or quell) your suspicions. Enter the company’s name into the CFPB’s complaint database and the Better Business Bureau’s directory to see what others are saying about it, Martindale says.

You can also search online for the lender’s name and the word “scam,” which may surface regulatory actions against a legitimate lender or links to the community website Reddit where other people have shared their experiences. Even California’s DFPI uses Reddit to research companies, Martindale says.

“Online communities do tend to form when there have been red flags, and so it does pay to slow down, think before you click and do a little online research,” she says.

5. Asking for money or gift cards

Legitimate lenders never require payment in exchange for a personal loan. Personal loan scammers may request an Apple or Google Play gift card, or payment via an app like Venmo, Breyault says. Recently, payment requests via cryptocurrency have also become common, he says.

“The fact that you’re being asked to pay is a red flag,” he says, and “the fact that you’re being asked to pay in an unusual way is a really big red flag.”

What to do if you’ve been scammed

Learning you may have been swindled can leave you feeling embarrassed and frustrated, but keep in mind that people make millions of fraud reports each year.

Here are some steps to take if you suspect you’ve been scammed, and ways to find the cash you sought in the first place.

1. Try to get your money back. Your debit and credit cards have certain protections that may help you recoup some or all of the stolen funds. Reach out to your bank card issuer immediately for the best chance of fast reimbursement. You’re less likely to get the money back if you sent it via gift card or digital wallet.
2. File a report. Investigators prioritize scams that affect many people, so filing a report could get the scammer on their radar and help others avoid the same fate. Report fraud anonymously to the National Consumers League at fraud.org.
3. Get support. If you’ve lost money, a nonprofit credit counseling service may help get you back on track. These organizations can help you budget, manage debt, negotiate bills and find community resources that may provide funds or other assistance.
4. Find the cash you need. There are legitimate ways to borrow money, whether it’s from a loan company or friends and family. If a personal loan is your best option, compare loans from multiple reputable lenders to find affordable financing.

The article How to Spot — and Avoid — Personal Loan Scams originally appeared on NerdWallet.

October mortgage rates forecast

Die-hard home buyers, driven by life circumstances, will press forward in October. Everyone else will be inclined to wait for mortgage rates to fall, making homes more affordable. They’ll have to bide their time for months, not for weeks. In September, mortgage rates reached their highest levels since 2000, and they could inch upward in October.

Intrepid home shoppers might discover that more sellers are reducing their asking prices, but most would-be buyers will struggle to find suitable places to make offers on.

Rates rose after the Fed meeting

The Federal Reserve’s monetary policy committee met Sept. 19 and 20. Its updated summary of economic projections included Fed members’ forecasts about the direction of short-term interest rates for the next three-plus years. Mortgage rates didn’t move much in the three weeks before the Fed meeting as the market waited for the summary of economic projections to drop.

The projections surprised the mortgage market. The Fed members signaled that they expect to keep short-term interest rates higher for longer than the mortgage market had expected. Mortgage rates played catch-up after the Fed meeting, with the 30-year fixed-rate home loan rising past 7.25% for the first time since late 2000.

Home affordability fades

Rising mortgage rates chip away at home affordability, which has been declining since early 2021. The Federal Reserve Bank of Atlanta has a home affordability index with data going back to the beginning of 2006, and July’s affordability (the most recent available) was the lowest in the index’s 17-year-plus history. And mortgage rates have gone up since July, making a home even harder to afford.

Mortgage rates have gone up five months in a row, making mortgage payments higher for a given loan amount. The impact on affordability has motivated almost 40% of home sellers to reduce their initial asking prices, according to Mike Simonsen, president of real estate analytics firm Altos Research, in a weekly commentary posted to YouTube. In spring, when mortgage rates were lower, about 30% of the homes on the market had taken a price cut.

Home buyers might rejoice at the news that more sellers are reducing their asking prices. But the lack of properties to choose from remains a drag. According to the National Association of Realtors, 1.1 million homes were for sale at the end of August, the latest available data. In August 2019, a closer-to-normal, pre-pandemic market, 1.83 million homes were for sale.

What other forecasters predict

Fannie Mae and the Mortgage Bankers Association disagree in their mortgage rate forecasts for the last three months of the year. Fannie Mae predicts a slight increase at year end, while the MBA expects a sharp decline foreshadowing a recession in the first half of 2024. Both organizations published their forecasts before the Sept. 19-20 Fed meeting that hinted at a sustained level of higher interest rates.

What happened to mortgage rates in September

At the end of August, I predicted that mortgage rates might rise in September because of uncertainty about what the Federal Reserve will do.

Indeed, mortgage rates rose after the Sept. 20 Fed announcement. Freddie Mac reported that the average rate on a 30-year mortgage climbed to 7.31% in the week of Sept. 28, the highest since the week of Dec. 15, 2000.

The article October Mortgage Rates Forecast: Highest in 2 Decades originally appeared on NerdWallet.

More than 1.4 million people have lost Medicaid coverage in 2023 because they no longer meet the eligibility requirements, according to August tracking data from KFF, a health policy nonprofit.

After a pause on disenrollments during the COVID-19 public health emergency, beneficiaries now must prove that they still meet the income limits for Medicaid. People whose income has gone up risk losing their coverage.

What some beneficiaries might not realize is that even if their income seems too high for Medicaid, they might be able to spend down some income to qualify. For certain beneficiaries, spending on medical bills, including Medicare premiums, can be subtracted from their income when applying for Medicaid.

What is a Medicaid spend-down?

A spend-down is like a health insurance deductible, according to Catrice Simpson, a supervisory social service representative for the Washington, D.C., Department of Health Care Finance. “It is the amount you must show proof of meeting or exceeding before the insurance plan starts to pay, in this case it’s before Medicaid starts to pay,” Simpson wrote in an email.

For example, someone with income $200 above their state’s limit for Medicaid might become eligible if they have at least $200 in qualifying medical bills.

People who qualify as “medically needy,” such as those with certain disabilities, children or people age 65 and older, are eligible to spend down income to qualify for Medicaid.

Rules for who counts as medically needy vary by state. For example, in Washington, D.C., parents or caretakers of children under 21 years old, pregnant people and people living in nursing homes can also spend down to become eligible for Medicaid.

How does spending down affect medical bills?

Spending down to meet the income requirements for Medicaid means that Medicaid can cover some of your medical bills. But it won’t cover the bills you used to qualify.

For example, if you pay $300 out of pocket for a doctor’s visit and subtract that amount from your income, Medicaid won’t reimburse you for it later. But additional bills you didn’t use for the spend-down could be covered by Medicaid.

If you have both Medicaid and another kind of coverage, they can work together to pay for your care. For example, if you have both Medicare and Medicaid, Medicare pays for services first, and then Medicaid pays for additional costs that Medicare didn’t cover, such as certain copays, coinsurance and deductibles.

Benefits for Medicare beneficiaries

For people age 65 and older and those with certain disabilities, Medicare covers most health care, but not everything.

“There’s often the misconception that Medicare will pay for long-term care, and it will not,” says Connecticut elder law attorney Daniel Tully.

Medicaid does cover long-term care, Tully says, and could be an option for those facing high costs Medicare won’t cover. Those beneficiaries might be able to qualify by spending down or taking other estate planning actions such as establishing a Medicaid-compliant trust, Tully says.

Medicare beneficiaries who spend down to qualify for Medicaid get an additional benefit: the “Extra Help” subsidy. Extra Help pays for the premiums, deductible and most of the out-of-pocket costs for Medicare Part D, which covers prescription drugs. The government estimates that it’s worth about $5,300 per year.

Help for the spend-down process

Your Medicaid agency can provide the details on Medicaid eligibility rules, including the spend-down process, in your state. Find eligibility and enrollment details and contact information by selecting your state on Medicaid.gov.

Tully describes the laws for Medicaid planning as “very complicated.” “You really want to take the time to make sure you’re being advised by a professional,” he recommends.

You can get free, personalized counseling from your State Health Insurance Assistance Program, or SHIP. SHIPs have offices and counselors who can speak to the specifics of your state and your situation when it comes to Medicare, Medicaid and related programs. Find your local SHIP office at shiphelp.org.

Most people find the spend-down overwhelming at first, Simpson wrote, but once it’s explained to them, people with medical bills usually don’t hesitate to start the process.

This article was written by NerdWallet and was originally published by The Associated Press.

More From NerdWallet

Amazon’s Prime Big Deal Days event is next week: Oct. 10-11. Call it “Prime Day 2.0” if you agree the name doesn’t roll off the tongue. The event promises another round of lowered prices on all sorts of products and an opportunity to cross-shop competing retailers.

October sales at a glance

Black Friday in October may be Amazon’s idea, but other retailers aren’t to be out-dollared. Here’s a rundown of the deal dates and some need-to-knows.

Target Circle Week is already on, running Oct. 1-7.

• Deals are exclusive to Target Circle members, but Circle is free to join and use.
• Get discounts online or in-store on items ranging from toys and kitchen supplies to everyday essentials like diapers and wipes.

Walmart’s Deals Holiday Kickoff begins at 7 p.m. ET on Oct. 9 and runs through Oct. 12.

• This sale isn’t exclusive to Walmart+ members, so all shoppers can access the deals.
• Expect discounts on giftable items like electronics, apparel, home decor and more.

Amazon’s Prime Big Deal Days begins at 3 a.m. ET on Oct. 10 and runs through Oct. 11.

• Deals are exclusive to Amazon Prime members; Prime costs $14.99 a month or $139 a year. (There’s a 30-day free trial option for newbies.)
• Expect deal drops throughout the event, and Prime members can request special invites ahead of time to doorbusters that may sell out.

Oh, and Best Buy has a 48-Hour Flash Sale on Oct. 10-11.

It’s like “shopping Armageddon,” says Charles Lindsey, associate professor of marketing at the University at Buffalo School of Management. “Retailers are going earlier and earlier every year in the hopes of locking in a certain percentage of consumers’ ‘holiday wallets’ before other retailers can,” he says.

Similar sales at the same time last year gave people a good reason to jump into Black Friday shopping early. Prices on popular products monitored by NerdWallet hit or matched year lows.

But the extended season of sales creates more opportunities for shoppers to bust their gift-buying budgets, says Lindsey.

Try these methods to shop the onslaught of early sales in a way that preserves your holiday wallet.

1. Make a game plan

Approach internet sales with a plan, says Lars Perner, assistant professor of clinical marketing at the University of Southern California. “If you go online and look at all of these great deals, you’re going to be tempted, and you may end up buying things that you otherwise wouldn’t have bought,” he adds.

Amazon shoppers can likely relate. You go online for a specific item, say a wireless mouse for your laptop, and you check out with the mouse, plus a massage gun and a DIY home security system because of the in-your-face markdowns.

Make a list of what you need and know your gift-buying and fun money budget before you browse.

“We only have a limited amount of money to spend,” says Perner. So be ready to be enticed and understand the implications of overspending, he adds.

2. Shop intentionally and set a time limit

Maybe you’ve heard of timeboxing work tasks. It’s a strategy where you schedule time for a task, stay with it for a short burst, then move on. The concept promotes focus and clarity of objective, according to the Project Management Institute. You can use this method for a more focused and budget-conscious online shopping experience.

If you plan to peruse, resist the urge to check Amazon like a social media app, and pick a finite time of day to do it. Maybe you end your day with a half-hour online to browse the deals when your mind is clear and guard is up against overbuying.

3. Get a good price and know it

With deals happening all the time, it’s no longer enough to take the sale price at face value. Perner points out how markdowns can be misleading.

“The deal might say 45% off, but that’s not going to be 45% off the regular price,” he says. Instead, it’s more likely to be a percentage off the item’s list or suggested retail price, which might not reflect what the retailer typically charges.

“It may still be a nice deal, you know, 15% off, say, the regular price. But again, some of the discounts are going to seem bigger than they really are,” says Perner.

You can easily get a feel for the going rate before you buy. Lindsey encourages shoppers to use a site like Camelcamelcamel, which tracks the price history of products sold on Amazon, or other browser-based coupon finders to confirm the quality of deals. The Honey extension, a software add-on for browsers like Chrome, also displays the price of products over time.

4. Wait for Black Friday if you want

Of course, you can roll the dice and wait for the day after Thanksgiving. NerdWallet’s data shows Prime Day and early October sales like Prime Big Deal Days present prices competitive with Black Friday, but there’s no substitute for the real thing. Actual Black Friday (and Cyber Monday) sales events still rock, and there’s less threat of disruption this year.

“The last few years [of] Black Friday sales might have been more limited during the pandemic,” says Perner. He recalls the supply chain challenges and backlog of ships coming into ports.

“But we’re past that now, and the Chinese economy is slowing down,” he adds.

Perner says those factors could lower the cost to produce imported goods. That could lead retailers to offer even better deals.

5. Skip the deal days altogether

Perner says sometimes he’ll check out Amazon’s deal of the day when he needs a break, but he has become better able to resist buying things over time. One tactic he suggests: Let the delivery boxes accumulate in the hall or garage as “visual evidence of how much you might be buying.”

Maybe you don’t need all that stuff.

It certainly is hard to put down the phone or close the laptop when holiday sales kickoff days have a regular place on the calendar and in the culture. But if you can resist the temptation, you could save the most money by skipping the deal days altogether.

The article 5 Tips to Get Primed and Ready for Amazon’s October Prime Day originally appeared on NerdWallet.

Thanksgiving week tends to draw major airport crowds, and coupled with inevitable weather delays, it can be a brutal time to travel. Not to mention, the conventional wisdom to fly on Tuesdays won’t necessarily save you much money.

But some days within Thanksgiving week are significantly busier than others. If you can afford to be flexible with scheduling, you’ll not only save money, but you might also avoid chaos.

The best and worst days to fly around Thanksgiving

NerdWallet analyzed the past four years of checkpoint travel numbers provided by the Transportation Security Administration, which tracks the number of passengers screened daily in the U.S. at its checkpoints.

In each of the past four years, the Sunday after Thanksgiving was the most crowded day to travel from the seven days before and after Thanksgiving.

As far as the least crowded? Thanksgiving Day itself.

When averaging over the past four years, here were the most to least crowded days for Thanksgiving flying:

1. Sunday after Thanksgiving (most crowded).
2. Wednesday before Thanksgiving.
3. Friday before.
4. Monday after (Cyber Monday).
5. Saturday after.
6. Sunday before.
7. Tuesday before.
8. Thursday before.
9. Monday before.
10. Saturday before.
11. Thursday after.
12. Tuesday after (Giving Tuesday).
13. Friday after (Black Friday).
14. Wednesday after.
15. Thanksgiving Day (least crowded).

When broken out by pre- and post-holiday travel, here are the three least-crowded days to travel ranked from least to most crowded. Because they’re less crowded and likely less expensive, it makes them some of the best days to fly around Thanksgiving.

Pre-holiday:

• Saturday before (least crowded).
• Monday before.
• Thursday before.

Post-holiday:

• Wednesday after (least crowded).
• Black Friday.
• Tuesday after.

Why flying the Sunday after Thanksgiving is so terrible

By almost all metrics, the Sunday after Thanksgiving is pretty much the worst day of the year to fly. In 2019, 2021 and 2022, it was the busiest single day of the entire year in terms of U.S. passengers, based on TSA passenger data.

(The post-Thanksgiving Sunday wasn’t the busiest day of the year in 2020 because, well, you know why. The most-crowded-day award in 2020 went to Friday, Feb. 14, which preceded the Presidents Day weekend and pandemic-related travel restrictions.)

Here’s a breakdown of the number of people flying on Thanksgiving Day versus the Sunday after Thanksgiving in three recent years:

For every 100 people who were flying on Thanksgiving Day 2022, there were 183 people flying on the Sunday after.

The smarter, cheaper Thanksgiving weekend itinerary

If you work a standard Monday-Friday workweek, with two days off for the holiday, then leaving Wednesday after work and flying home Sunday night might make sense. That’s the schedule most people follow to avoid taking extra time off, and if you join in, then you’ll pay — both in terms of cost and crowds.

Beyond crowds, expect to pay big this year. Sure, average airfares are actually cheaper this year versus last (and are even cheaper this year versus pre-pandemic), with average airfares for the first six months of 2023 down 7.2% versus the same period in 2022, according to a NerdWallet analysis of consumer price index data released by the U.S. Bureau of Labor Statistics (BLS).

But airfares can still feel incredibly high. That’s for a few reasons, including that basic economy seats have lowered overall prices. But for folks who end up paying a la carte for benefits that were typically included in the past (e.g., checked bags or the ability to select your seat), the total cost can end up sometimes more expensive given all those ancillary fees.

So how can you choose a better Thanksgiving travel itinerary to save money? Avoid the Wednesday-Sunday itinerary and try these travel days instead.

Travel on Thanksgiving Day

Across travel days for the week before and after Thanksgiving, the holiday was the lowest-traffic day every year over the past three years. Book the first flight out for the day — a practice NerdWallet recommends anyway to reduce your odds of a flight delay — and you might even land in time for Thanksgiving dinner.

Stay longer

If you can extend your trip, the Wednesday after Thanksgiving is, on average, the second-emptiest day to travel. Especially if you have the option of remote work, you might be able to avoid taking vacation days, despite the longer trip.

Fly on Black Friday

If you must travel during the weekend, consider having Thanksgiving dinner at your own home, then flying somewhere on Black Friday, which is the third-least crowded day to fly on average.

Look at it as a great way to not only avoid airport crowds but also retail crowds since you won’t be out shopping.

The standard rules around the best (and worst) days to fly don’t necessarily apply. Coupling that with conventional wisdom around saving money on flights, flying for Thanksgiving might not be as painful a proposition as you once thought.

The article The Best Days to Fly Around Thanksgiving in 2023 originally appeared on NerdWallet.

If Congress cannot reach a spending deal by Oct. 1, a resulting government shutdown could significantly impact travel and not in the best way.

The U.S. Travel Association warns a shutdown could come with “dire consequences,” costing the industry an estimated $140 million per day.

Some of the aviation industry’s most essential workers — air traffic controllers and Transportation Security Administration officers — would be required to work without pay. Past shutdowns have led to more federal employee absences, longer security lines and more flight delays.

“The federal government is already failing the traveler,” U.S. Travel Association President and CEO Geoff Freeman said in a statement. “A shutdown would be further proof of Washington’s inability to find reasonable solutions to problems that affect Americans nationwide.”

How would a government shutdown affect air travel?

Even though thousands of federal workers would be furloughed in the event of a government shutdown, air travel is supposed to continue like normal. Both TSA officers and air traffic controllers would continue working. However, those workers would not get paid during a shutdown.

That shouldn’t lead to delays for travelers immediately. But if the shutdown drags on for weeks, some federal workers may refuse to work without a paycheck.

One day during the nation’s longest-ever shutdown from December 2018 to January 2019, TSA reported that 10% of its officers were missing work for an unscheduled absence.

The saga forced some airports to close security checkpoints and caused long waits for some travelers.

Some air traffic controllers also missed work during the 2019 government shutdown, which led to a temporary halt at New York-LaGuardia airport, as well as major delays at Newark, Philadelphia and Atlanta airports.

The Federal Aviation Administration (FAA) already faces a nationwide shortage of air traffic controllers, which airlines blamed for delays and cancellations earlier this year. With more unscheduled absences, flight delays and cancellations could only worsen during a government shutdown.

Long-term consequences for air travel

A government shutdown could also have more long-term ramifications for air travel. For example, training new controllers, which takes up to three years, is crucial to closing that staffing gap and getting air travel fully back on track.

“If there is a government shutdown, that is going to disrupt that process, and the disruption is profound,” Acting FAA Administrator Polly Trottenberg told reporters on Sept. 13. “If we shut down for a couple of weeks, it takes a lot more than a couple weeks to recover.”

However, she emphasized the agency is “not going to compromise on safety” if there is a shutdown.

Would national parks close during a shutdown?

It’s not entirely clear what a shutdown would mean for national parks, which are overseen by the Interior Department. At this point, the National Park Service isn’t commenting on specific contingency plans in the event of a shutdown.

During the 2013 federal government shutdown, all 400-plus national park sites were closed, according to the nonprofit National Parks Conservation Association. But it was a different story in 2018 and 2019, when some parks remained partially open, albeit not functioning like normal.

“We witnessed unnecessary damage to resources and wildlife because parks were left open without adequate staff,” Angela Gonzales, the organization’s associate director of communications, said in an email, noting overflowing trash cans, human waste, vandalism and looting in parks.

Given the uncertainty, if a shutdown occurs and you’re considering going to a national park, your best bet may be to check your specific park’s website or social media feed. However, they may not be updated regularly with employees furloughed. If you do attempt to visit a park or site, don’t count on access to restrooms or a visitors center.

Can I get a passport during a shutdown?

It appears passport processing would continue during a shutdown.

Passports are handled by the State Department, and the department’s shutdown contingency plans online say consular operations, including passports and visas, “will remain 100% operational as long as there are sufficient fees to support operations.”

However, keep in mind a government shutdown may further delay processing times. Currently, the State Department estimates a routine passport application takes 10 to 13 weeks, but it’s wiser to give yourself six months of lead time before an international trip.

Can I still get Global Entry and TSA PreCheck during a shutdown?

Applications for Global Entry and TSA PreCheck will remain open during a government shutdown. TSA PreCheck is a fee-funded program, so it will continue to enroll members.

Global Entry is a different story. During the 2018 to 2019 shutdown, Global Entry appointments at some enrollment centers were canceled with no rescheduled date in sight. Any disruption could be painful for new applicants because U.S. Customs and Border Protection is still working through a continued backlog of Global Entry applications from recent years.

The article How a Government Shutdown Could Affect Travel originally appeared on NerdWallet.

“Sheer panic.” That’s what Teddy Mars of Louisiana felt when his homeowners insurance company didn’t renew his policy in early 2023. The last remaining option left him and his family paying more for homeowners insurance than their mortgage.

To cover costs, Mars had to dip into his nest egg and withdraw $12,000 from his individual retirement account. “We’re not sitting on a huge mountain of cash here,” Mars says. And opting out of insurance isn’t an option when you have a mortgage.

“It’ll break my heart, but I think we’re going to have to leave,” says Mars, who grew up in Louisiana. But with a son in high school, it’s not easy to pack up and leave town. Plus, Mars worries about the saleability of his home. “Who wants to buy a house in our area when they can’t insure it?”

Mars’ story is becoming all too familiar among Americans as climate catastrophes tear through the country with greater frequency and ferocity. Combined with inflation and an increase in auto accidents and thefts, many people are facing a crisis of affordability with home and car insurance.

Homeowners are stuck between a rock and a hard place

A recent NerdWallet survey found that about 3 in 5 people with homeowners insurance say their premium has risen over the past 12 months. And around 1 in 10 are worried their insurer will stop doing business in their state.

It’s a valid concern. In Florida, for example, private homeowners insurance has gotten so scarce that Citizens, the state-funded “insurer of last resort,” is now its top property insurer by number of policies.

Many homeowners are even forgoing insurance altogether. A 2023 survey from the Insurance Information Institute found that 12% of homeowners don’t have homeowners insurance. Of those homeowners, roughly half have a household annual income of less than $40,000.

“It’s a bloodbath,” says Dori Einhorn, owner of California-based Einhorn Insurance, which specializes in wildfire insurance. “I’ve never seen anything so awful.” Einhorn is referring to the growing number of insurers no longer writing policies in the Golden Gate. “As long as global warming persists, I don’t see how this is going to stop.”

Auto insurance rates are skyrocketing

It’s not just homeowners insurance that’s more difficult to lock down. Car insurance companies are scrutinizing the cars they insure while increasing the prices they charge. Just ask Gail Harlan of Florida.

After Harlan signed the papers to lease a 2023 Kia Seltos, she received new policy documents from her insurer. “I was in absolute shock,” Harlan recalls feeling after discovering she was paying much more for her new policy than she was for her last vehicle.

Harlan had been on a pay-per-mile car insurance program with her last car, a 2022 Honda CR-V. She was able to keep rates low since she didn’t clock many miles. Because Harlan couldn’t get on the same program with her new Kia Seltos, she had to get a regular, flat-rate policy. So, she went shopping.

Harlan got quotes from multiple insurance companies for much more than she was paying before. The highest quote she got was for more than $2,200 for a six-month policy. One large insurer even refused to give her a quote, citing a recent string of Kia and Hyundai thefts. This response came despite Harlan presenting an email from Kia explaining that her 2023 Kia Seltos was not considered at risk for those same types of thefts. “I figured this was going to be easy,” Harlan says.

And Harlan’s not alone. More than 1 in 6 car insurance owners say their premiums increased a lot in the past 12 months, according to the NerdWallet insurance survey. Car insurance costs rose 19% in August compared to the year prior, according to the latest data from the U.S. Bureau of Labor Statistics. Meanwhile, a growing number of Americans are simply opting out of car insurance.

America’s risk pool is leaking

When you buy insurance, your premiums go into a pool, along with everyone else’s premiums. Insurers draw from this pool to pay claims for the unfortunate few. The problem is, this pool is drying up for a lot of companies, forcing them to refill it by raising rates or kicking people out.

Here are a few things causing the leak:

• Pricier claims. With the rise in extreme weather events and traffic deaths across much of the U.S., insurers are having to dig deeper in their pockets to cover claims. Inflation, supply chain snags and labor shortages have all added fuel to the fire.
• The rising cost of “reinsurance.” Reinsurance — insurance for insurers — is becoming harder to get, pressuring home and auto insurers to steer clear of high-risk markets.
• Friction between insurers and states. Home and auto insurance are regulated at the state level, so carriers are at the mercy of state legislation. For example, insurers face outsized losses in Florida because of a disproportionally high number of lawsuits. And many insurers have cited state-imposed rate hike limitations as a reason for pulling out of California.

There are faint glimmers of hope that insurers could plug the leak, including a recent U.S. Senate hearing on the property insurance market, signs of taming inflation and insurance reform in Florida.

But that’s probably not much comfort to the many Americans just trying to make ends meet. According to a 2023 survey from LendingClub, 3 in 5 Americans live paycheck to paycheck.

What you can do about it

If you’re having a hard time affording insurance premiums, or you’re worried your insurance company will drop you at renewal, here are six things you can do:

1. Shop around

Home and auto insurance premiums can vary dramatically by company. If you think you’re paying too much, do some shopping. Gather quotes from at least three different companies to make sure you’re getting the best deal possible. This approach worked for Harlan, who ultimately found a car insurance price she’s happy with.

2. Seek help

If your insurance options are limited, it may be time to recruit the help of an independent insurance agent. Local agents are familiar with your area and the companies still writing policies. “You need to find someone who knows what they’re doing,” Einhorn cautions. “Find an agent who is responsive and who’s not just looking to make a commission.”

3. Adjust your coverage

You can lower the cost of insurance if you’re able to assume more of the risk yourself. For example, you may be able to raise deductibles or drop optional coverages you no longer need. Just don’t reduce coverage to the point where you’d be wrecked financially if catastrophe strikes.

4. Get ahead of the problem

Insurers periodically inspect the homes they insure (or plan to insure). This is especially true for older homes in high-risk areas. Don’t give them a reason to drop or deny you coverage. Protect your home by clearing away nearby brush or overgrown trees, and make sure your roof and electrical, plumbing and HVAC systems are in good shape.

5. Research before you buy

If you’re thinking about buying a new home or car, check insurance quotes before you sign on the dotted line. That way, you won’t be caught off guard by an expensive policy you can’t afford. You can also gauge a property’s risk to climate change by plugging its address into riskfactor.com.

6. Don’t let your insurance lapse

While it may be tempting to skip paying a high premium, letting your insurance lapse can make a bad situation worse. Not only would you be fully responsible for any damages to your home or car, but future insurers may deem you risky to insure. This will likely translate into higher premiums when you decide to get insurance again, even if you had a valid excuse for the lapse. Not to mention, insurance is required if you have a car or mortgage.

More From NerdWallet

Ryan Brady writes for NerdWallet. Email: rbrady@nerdwallet.com. Twitter: @reallyryanbrady.

With days left until a possible federal government shutdown, you might be wondering what this has to do with you.

Every year Congress approves 12 appropriations bills to keep the government going before the fiscal year ends after Sept. 30. This year, House Speaker Kevin McCarthy, R-CA, wanted to negotiate, leaving the fate of federal services operations in limbo.

If Congress doesn’t act quickly to approve a new spending package or agree on a stopgap to delay the shutdown, the government will close up shop as of Sunday. But even a full shutdown doesn’t shut every door.

A government shutdown would play havoc with several federal government agencies and operations. That means nonessential services would be suspended, while other programs that receive mandatory funding would be spared. You don’t have to worry about things like air traffic control or power grid maintenance, for example.

Overall, the brunt of the disruption will fall on furloughed federal workers. The shutdown only ends when Congress can reach a funding agreement.

In the meantime, here’s how a government shutdown could impact the following:

Social Security payments

People receiving Social Security benefits will continue to get their payments.

However, Social Security Disability Insurance (SSDI) applicants who are still waiting for a decision might have to wait longer due to possible delays at the state agencies that handle the decision-making but that are funded by the Social Security Administration. But it will continue handling applications for benefits, issuing Social Security cards and tending to administrative requests such as direct deposit setups and address changes.

Food stamps/SNAP benefits

Delivery won’t be interrupted for benefits like the Supplemental Nutrition Assistance Program (SNAP) — once known as “food stamps” — as well as the Special Supplemental Nutrition Program for Women, Infants and Children (WIC).

Both programs have contingency funds, but if the shutdown lasts longer than 30 days, it could become difficult for the Department of Agriculture (USDA) to continue operations. WIC would shut down entirely a few days after the federal contingency fund runs out, according to the White House.

SNAP delivery could last longer, but for how long will be up to the USDA. During the 34-day partial shutdown in 2018-2019, the USDA worked with state agencies to keep the program running for the entire duration.

Medicaid and Medicare

Delivery of both Medicaid and Medicare benefits would continue, according to the Social Security Administration’s (SSA) contingency plan.

However, some administrative functions of the programs may be suspended like:

• Receiving replacement Medicare cards.
• Benefit verifications.
• Responses to third-party information or Freedom of Information Act requests.
• Overpayments processing.
• Prisoner activities.

If needed, the SSA would increase the number of employees exempt from furlough to keep operations going, as it did during the 2013 shutdown, according to the SSA.

Unemployment benefits

Unemployment benefits will continue during a shutdown. The Department of Labor oversees the program, but unemployment compensation is administered through states. The federal government does pay administrative costs, so if the shutdown drags on, there could be a delay in processing applications.

Furloughed employees will still have access to unemployment benefits in certain states, but they may be required to return any funds they receive when the shutdown ends and they receive back pay. Those required to work without pay aren’t eligible for unemployment.

Student loans and college aid

Plan to pay your federal student loan bill in October, even if a shutdown happens. The repayment system is managed by servicing companies — not the government itself — so it should keep chugging along. Borrowers applying for loan forgiveness programs or consolidation could face delays because those requests go directly to the Education Department.

Federal financial aid for current students isn’t likely to be affected because students typically receive grant and loan money at the start of the semester.

A shutdown could impact borrowers who plan to attend school next year by further delaying the Free Application for Federal Student Aid (FAFSA). Currently, the Education Department aims to open the newly simplified 2024-25 FAFSA sometime in December, already a delay from the usual Oct. 1 release.

Air travel

Federal Aviation Administration air traffic controllers, like Transportation Security Administration officers, are federal employees who are expected to continue to work without pay during a government shutdown. Some workers inevitably will not report to work without a paycheck, and even a few absences can bring the nation’s aviation system to a standstill.

During the 2019 government shutdown, the absence of 10 air traffic controllers led to a temporary grounding at New York’s LaGuardia airport, as well as delays at other major airports on the East Coast.

Air travelers will likely face more flight delays and cancellations if the shutdown drags on. It could also delay the FAA’s hiring and training of new air traffic controllers, meaning airline reliability may not improve significantly even after the shutdown is over.

Meghan Coyle, Eliza Haverstock and Tina Orem contributed to this article.