When we invest finances into our lives, external pursuits, and even other people, we often fail to appreciate the extent to which we equally invest our emotions. Despite its logical, numerical facade, money is supercharged with feelings, from joy and comfort to stress and anxiety. 

In today’s money-driven society, financial well-being is just as critical as our physical, mental, and emotional states. When significant events alter these states of being for the worse, it can result in trauma. Financial trauma is certainly no exception. 

And in many ways, Gen X women are more susceptible than most to this type of severe stress. I sat down with Seattle-based money coach Mikelann Valterra to discuss what financial trauma (FT) is and how to identify and remedy it.

The Emotion-Money Connection

As a money coach, this connection is Valterra’s bread and butter. “It’s not just numbers,” she begins. “[Money] is more emotional for women than men, and that’s not a bad thing. We are emotionally wired as women—why would that stop at the door of finance?”

However, this increased sensitivity also makes women more susceptible to financial trauma. Trauma, Valterra continues, “is usually defined as a large, negative event that causes a lot of negative consequences that go into your psyche and affect you psychologically and emotionally.”

Identifying Causes Of Financial Trauma

Valterra says that there are many examples of financial trauma, but some of the most common include:

• Divorce
• Bankruptcy
• Losing money on investments
• Gen X upbringing: sandwich generation, latchkey kids
• Early or childhood exposure to severe financial stress

Additionally, Forbes defines financial trauma as “when expenses outweigh income for an extended period of time. It is not the inability to pay that creates the trauma; it is often the string of events that follow.” 

“It really builds on itself,” Valterra adds. “People say, ‘oh, but money isn’t emotional.’ You feel like you’re crazy, like, what’s wrong with me that I feel so icky and bad and stressed about money? But I would say you’re completely normal and human to feel emotional around money.”

Financial Trauma Or Regular Stress?

Of course, not everyone who experiences one of the above situations will experience financial trauma. Moreover, not all money-related stress is traumatic. “The way that you know something is traumatic is that you can’t let it go,” Valterra explains.

She offers some additional signs that you might be suffering from financial trauma (and not plain old stress):

1. It Triggers A Fight Or Flight Response

For some financially traumatized individuals, their response to money management would be to flee or freeze. “I know I should deal with this—maybe move money around, talk to a friend about borrowing, look at financing, and I don’t,” Valterra explains.

“I completely freeze, put my head in the sand, and I disappear, and more negative things happen as a result of that. That would classify as trauma because we don’t feel resilient enough to deal with something.”

2. You’re Self-Isolating

“As women, we have a huge strength in reaching out to people and talking to people. But when you find yourself isolating, that can be a sign that, emotionally, you’re feeling very traumatized,” she continues. “Hiding it, isolation, secrecy—there are so many different examples of how people handle it.”

3. You Pretend The Problems Aren’t There

Valterra says another indicator of financial trauma is an inability or unwillingness to acknowledge financial hardships. “If I pretend it doesn’t happen, I’m going to continue my spending in other areas,” she explains.

“I have this huge financial trauma happen, and yet I still pull the trigger in buying international airplane tickets. I don’t look at changing what I’m doing with my money in light of this big event. A lot of people cope with trauma by not coping with trauma.”

How Gen X Women Can Overcome FT

As a self-described “personification of Generation X,” Valterra is acutely aware of how FT can manifest in the demographic that was constantly told ‘women can have it all.’ “We are the DIY generation—the latchkey kids,” she says.

However, “the dilemma of ‘you can have it all’ is just because you can have it all doesn’t mean you should have it all. There’s this sense that A.) we should do it all, and B.) we should be able to figure it out. You’re not going out and trying to get help.”

So, how do the self-sufficient (s)heroes of the world overcome a problem as big as FT? Valterra offers this advice to her fellow Gen-Xers.

1. Start By Talking To Someone

Valterra says the first step in conquering FT is to acknowledge it. “When people come out of secrecy and start sharing [their FT], it is one of the things that dissolves it. We know this is true from talk therapy. Every time you retell it, some of the charge comes off. It gets easier and easier.”

Talking to other people about your FT can help lead you toward the grieving process, which Valterra says is necessary for overcoming these emotional events. “You’ll move through the anger, bargaining, acceptance—but as long as you’re in silence, it’s very hard to move into the grieving process.”

2. Be Kind To Yourself

“Women, more so than men, beat themselves up,” Valterra continues. “When something happens, women blame themselves. Men blame something outside of themselves.”

“It also applies to money. Talking with people helps you go, okay, you know what? It’s not all my fault. How do we get out of beating ourselves up?” Valterra suggests the third step as a good starting point.

3. Normalize The Money-Emotion Connection

Valterra says the misconception that everyone else knows what they’re doing with their finances only exacerbates the traumatic experience. “Guess what—you all think that everybody else has it figured out, and the reality is most people don’t.”

“Everybody thinks that everyone else has the secret key,” she continues. “[It’s important to normalize] that A, money is emotional, and B, there is help that’s out there. One of the downsides of Gen X is we’re not as plugged into the resources that are available. Millennials are much better at seeking out and asking for help.”

4. Aim For Elegant Simplicity

How can you start translating this guidance to your cold, hard cash? Valterra suggests aiming for elegant simplicity around money. “People have complicated their finances so much. Just because you can open a special account online doesn’t mean you should. People have so many accounts and think they should have a dedicated account for everything, and they’re overwhelmed.”

Valterra says that while these extra accounts (savings, fun, groceries, etc.) are good-intentioned, “we have no idea how much money we need to earn because we can’t figure out where our resources are going. The more accounts you have, the more financial anxiety is just free-floating.”

5. Keep Your Money Personality In Mind

Valterra ended our conversation with a final warning regarding online research (read: panic Googling). “A lot of people writing about money are of a very particular personality type. They’re the savers—the security-, numbers-minded people.”

If you don’t feel like you can relate to these articles, it’s likely because you’re part of the other half of the population that isn’t wired that way. And Valterra says that’s okay, too. Seeking out support, talking about your problems out loud, and simplifying finances are all great ways to start overcoming your financial trauma. 

With time, patience, and practice, you can get to a point where you can use your finances to bolster your overall well-being as opposed to having it be an anchor weighing you down.

It’s not unheard of for spouses to keep a secret stash of cash as a means of escape or in anticipation of a divorce. But for many, especially women, finding the means to save up or secure funding to get away from an abuser seems almost impossible.

Leaving an abusive relationship is incredibly challenging on its own, and that’s only compounded by the need to pay for transportation, housing, and other basic needs to start over.

Luckily, changes are underway to better empower and support victims of abuse. These changes are included in a set of retirement reforms referred to as Secure 2.0.

Withdrawals from retirement plans before age 59½, regardless of the reason, are allowed but not generally recommended. Early withdrawals come with a heavy tax penalty of 10%, which is enough to deter anyone. But depending on your circumstances, these changes to the tax code may waive that penalty.

Relief For Domestic Abuse Victims

In 2024, victims of domestic abuse will be able to withdraw up to $10,000 or 50% of their account balance (whichever is lower) from their retirement savings without penalty within a year of the abusive incident. The maximum withdrawal amount will be adjusted according to inflation as needed.

The legal definition of domestic abuse is “physical, psychological, sexual, emotional, or economic abuse, including efforts to control, isolate, humiliate, or intimidate the victim, or to undermine the victim’s ability to reason independently, including by means of abuse of the victim’s child or another family member living in the household.”

Although it might seem like a minor change to the tax code, this financial cushion could provide abuse victims tremendous relief—and a way out of their situations. But they’re not alone; this new legislative package also provides exemptions to the early withdrawal tax for a few other circumstances.

Terminal Illness

Per this new legislation, you won’t be penalized for withdrawing retirement funds before the age of 59½ if you have a terminal illness (a condition expected to end in death within 84 months).

Financial Emergency

Although the new legislation waives the early withdrawal penalty fee in case of “unforeseeable or immediate” financial emergencies, you are only permitted to make one withdrawal of up to $1,000 per year. Additional caveats to this exemption prevent participants from making an additional withdrawal within three years unless they pay back their initial withdrawal or make regular deposits equivalent to the amount taken out.

Natural Disasters

It will be possible for participants to withdraw up to $22,000 from their retirement accounts without penalty in the event of a federally declared natural disaster. As an alternative to making the withdrawal all in one year, savers can receive their funds as gross income over a three-year period.

Although these financial boons exist, the government still advises against withdrawing retirement funds early. Keep in mind that taking your retirement early should always be used as a last resort, as you may limit your future financial options.

To be a comfortable member of the middle class is as integral to the American dream as a house with a white picket fence and an apple pie cooling in the window.

Since the early 1900s, the middle class has served as an attainable lifestyle goal that allowed those who were not quite destitute but not quite wealthy to thrive. 

However, according to data from the Pew Research Center, the middle class has been in a steady decline over the last five decades. As the wealth gap widens between rich and poor, those on the outskirts of the middle class either rise or fall into new tax brackets.

So what does being middle class really mean? 

That answer depends on who you ask. Let’s break down the various definitions of “middle class” and use those to explore how much money you need to make to be considered a member of the middle class in major U.S. cities.

Defining The Middle Class

The Pew Research Center defines the middle class as having an annual household income that is two-thirds to double the national median income after adjusting for household size. According to 2021 data from the U.S. Census Bureau, the country’s median income is around $70,784. 

By that definition, the American middle class currently sits between $47,189 and $141,568. But these numbers vary depending on which institution pulls the data.

For example, the Urban Institute defines the middle class as somewhere between 150 to 499% above the federal poverty line—that shakes out to $66,250 to $158,735 for a family of four. 

Moreover, some economists argue that middle-class status is more cultural than financial. This relates to a perceived sense of wealth and financial stability.

Who Is Considered Middle-Class By City

According to an analysis done by CNBC using the Pew Research Center’s definition of the middle class and data from the U.S. Census Bureau, the annual income range can vary greatly by where you live.

Metropolitan areas are notorious for being pricier than their rural counterparts, so we expected the definition of the middle class to vary by state and city. However, it’s more surprising to see just how significant those differences are. Sometimes there’s a difference of tens of thousands of dollars within the same state. 

Take northern and southern California. While middle class in the Bay Area clocks in at around $77K to $232K, middle class in southern California is far lower at $55K to $165K. Midwest metros like Chicago boast ranges from $52K to $156K, while smaller cities on the East Coast, like Washington, D.C. and Arlington, VA, range from $74K to $221K. 

Floridian cities seem to have the cheapest middle-class range, with northern and central cities ranging from $42K to $126K and southern cities closer to the Keys ranging from $43K to $128K. New England, the Bay Area, and the Pacific Northwest boast the largest gaps between lower- and upper-middle-class incomes.

Where Does Your Income Fall?

Gallup polling reveals around 38% of Americans think of themselves as middle class, and 14% consider themselves upper middle class. Before the Great Recession in 2008, around 9% more Americans classified themselves as middle class.

Since 2008, middle-class identification has decreased while working- and lower-class identifications have increased. The number of those who identify as upper-class has remained at 2%. Gallup stated that this data could indicate a widespread unfamiliarity with social class definitions. 

However, Gallup added, it could also mean that “many working Americans today don’t see their work efforts as yielding sufficient income for them to believe they have achieved middle-class status.” This perception could be skewed in either direction—those who believe they are middle class might not be, and vice versa. 

Generally speaking, many believe someone to be middle class if they’re not living paycheck to paycheck but can’t financially withstand an extended absence from work. But depending on where you live, that might not be the whole picture.

How do your paystubs compare to the rest of the country?

Almost all home sellers—around 90%—use a real estate agent, according to the National Association of Realtors. But new research looking into the major real estate markets of Minneapolis, Houston, and Charlotte found that sellers can actually get a better price when they sell their home on their own. 

Three economists for the Federal Reserve Bank of Atlanta built a huge database compiling more than 2.3 million real estate transactions between 2000 and 2019. That’s two decades of data from the pre-crazy pandemic real estate era. 

They found that owners consistently beat agents on sales price, earning 1% to 4% more than agents for similar properties (depending on the market)—and that’s not even including the owner’s savings of up to 6% by not paying a commission to the listing agent. Additionally, the buying agent’s commission (around 3%) is also typically paid from the final sales price. With home values on the rise, that all can add up quickly for a seller.

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While the researchers did note that sellers who did not use an agent typically had their homes on the market for longer and were also more likely to not complete a sale, their final conclusion was that the quickness of the agent ultimately resulted in a lower selling price.

To give an example, researchers noted that for a home sale of $286,000, assuming the seller pays a 3% commission to the buyer’s agent, a $400 flat fee to list the property on MLS (Multiple Listing Service), and earned a 4.3% premium on the home without using a selling agent, the resulting savings would be $19,740.

The Usefulness (Or Not) Of Selling Agents

In the opening of the paper, the researchers noted that despite the rise in technology that has made it easier than ever for people to buy and sell homes, agents’ commission rates haven’t declined over the years. Moreover, they noted the low barriers to entry into the field, as most agents simply need a license obtained by an exam and background check.

For the study, the three economists—Chris Cunningham and Kristopher Gerardi of the Atlanta Fed, and Lily Shen of Clemson University—focused on the performance of 16,000 individual real estate agents in the three markets earlier defined.

They figured out who were full-service realtors in each market, like ReMax and Century 21, and which companies were “flat free” brokers, who pretty much just list the property on MLS and that’s it. 

When breaking down the numbers, the researchers found that your choice of real estate agent has tremendous consequences when it comes to selling your home. The numbers are actually quite shocking. Switching from one of the worst agents in the market, a listing agent in the bottom fifth percentile, to one of the best in the 95th percentile, would increase the sales price of a home by 15% to 20%.

They also found that only the very best agents in the market could actually beat an owner who was selling their own property. As we noted, the first financial win for a seller who chooses For Sale By Owner (FSBO) instead of using an agent is the 3% to 6% commission savings. The second win is that an owner will likely get a higher price from the buyer.

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The study also found that it’s challenging to identify the “super agents” in your real estate market who can actually get you a higher price for your home than you could on your own. Seniority isn’t predictive of performance, and neither is the size of the real estate firm they work for.

According to this research, experienced listing agents actually get slightly lower prices for their clients because they are selling homes as fast as possible to get their commission and they are spreading their efforts over a large client database.

Is There Any Benefit To Using A Selling Agent?

This data seems to contradict figures provided in 2021 by the National Association of Realtors. In their November highlights report, they indicated FSBO sellers sold at a median of $260,000 in 2020 compared to the median sales price of $318,000 for agent-listed homes.

Of course, the single year of analysis in 2020 when the market was taking a drastic turn in a seller’s favor could account for this difference, as well as accounting for more than three markets in their analysis. Additionally, the median sales price still doesn’t factor in the cost of the selling agent’s commission that is paid from that figure. A 3% commission on $318,000 would be $9,540, while 6% is $19,080.

As the economists pointed out, there are highly skilled selling agents out there that truly can negotiate a higher selling point for your home that would offset the commission paid to them.

Beyond finances, a good selling agent can be a valuable resource when it comes to determining a sales price, providing market knowledge, and saving the seller time.

When it comes time to sell your home, there are many factors to consider, but you may want to take a more serious look at selling your home on your own. If you do decide to use an agent, always be sure to shop around. Reading agent reviews, looking at previous sales, and ensuring good synergy is essential to make this stressful time as easy as possible.

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After recently learning of its link to improved heart health, there’s even less reason to feel guilty about our daily coffee habit. Especially around the holidays as for many, it’s a habit to grab a quick coffee before or during a shopping trip. But it turns out this seemingly harmless ritual could be costing you a pretty penny.

Research published this year in the Journal of Marketing has linked caffeine to impulsivity, which might explain why coffee-loving shoppers have trouble controlling their spending. Here’s what you need to know about your pre-shopping Starbucks run and how it may be causing you to shell out extra cash.

The Dark Side Of A Pre-Shopping Coffee

Researchers from the University of South Florida (USF) performed three studies that looked at more than 300 shoppers in home goods and department stores in France and Spain. Half of the shoppers received a complimentary cup of caffeinated espresso, while the other half received decaf espresso or plain water. 

The researchers asked customers if they could check their receipts as they exited the stores.

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The researchers performed their experiments at different times of day and also questioned the study subjects about their moods, to make sure these factors didn’t skew results.

After factoring in all of their data, the researchers found that consumers who drank coffee containing between 25 and 200 mg of caffeine overspent by a whopping 50% and bought 30% more on average than those who drank decaf coffee or water. In addition, they found that caffeine affected the types of products shoppers opted for: The coffee drinkers were more likely to be drawn to nonessentials (e.g., candles and fragrances). 

Interestingly, a fourth arm of the study produced similar results with online shopping.

In the online experiment, half of 208 student participants received caffeinated coffee while the other half received decaf. After waiting 10 minutes for the caffeine to kick in, they asked the students to select items they’d purchase from a list of 66 products.

Much like the previous experiment, caffeinated coffee drinkers tended to buy nonessentials like massagers whereas decaffeinated coffee drinkers went for more practical items such as notebooks. 

So why does coffee seem to cause this impulsivity? According to Dipayan Biswas, the Frank Harvey Endowed professor of marketing at USF, it’s directly related to how caffeine affects dopamine levels in the brain.

“Caffeine, as a powerful stimulant, releases dopamine in the brain, which excites the mind and the body,” he said in a USF news release. “This leads to a higher energetic state, which in turn enhances impulsivity and decreases self-control.”

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Basically, caffeine makes you spend a latte (sorry, we had to). 

How To Avoid Caffeinated Overspending

Avoiding a caffeine pit stop is easier said than done, especially if you’re in dire need of a little energy boost before or during your shopping trip.

If you’d rather not opt out of the habit, being mindful of how caffeine can affect your shopping decisions and mentally curbing those impulses can help. Simply being aware of caffeine’s potential effects might allow you to make more responsible, well-informed choices.

But if you can manage it, rewarding yourself with a cup of coffee after shopping might be better. Eating a healthy snack before leaving the house can also help stave off any cravings. Getting enough sleep, creating a budget, and shopping with a basket instead of a cart are other ways to avoid buying anything that’s not on your list.

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Finding the perfect partner and working together on financial goals, like buying your dream home, is a goal many of us have. But when you finally meet the right person and the time comes to go house hunting and get that mortgage preapproval letter, many of us assume that both names should go on the loan application.

But according to UMB Bank’s national mortgage sales manager Matthew Locke (speaking with GoBankingRates), there are a number of scenarios where it makes more sense for someone to exclude their partner from a mortgage loan application.

Reasons Not To Take On A Joint Mortgage

While some may assume that leaving a partner off a mortgage might be indicative of a troubled relationship, that is definitely not always the case. There are four solid reasons that Locke touched on.

1. One Of You Has A History Of Bad Credit

The credit history of both applicants is factored into your mortgage interest rate. If one of you has a significant history of not making payments on time, this could lead to a much higher monthly payment due to a higher interest rate.

2. One Of You Has A Large Amount Of Debt

Your front-end and back-end debt-to-income (DTI) ratios are crucial to getting approved for a mortgage. The front-end ratio shows what percentage of your income would go toward your housing expenses (mortgage, insurance, property taxes). The back-end ratio shows how much of your income is needed to cover all of your monthly debt obligations.

Ideal front-end ratios are around 28% or less, although some lenders will approve an application with a ratio as high as 45%. On the back end, the ideal ratio is 36% or less.

If one of you is carrying a large debt load, that could make your debt-to-income ratio too high to secure a mortgage. That debt load could also put your DTI too close to the limits and trigger a higher interest rate.

3. One Of You Has A Lower Credit Score

A history of bad credit and/or a large amount of debt will likely cause a low credit score. Including a partner with a low credit score on a mortgage application is a bad idea, because the interest rate for which mortgage applicants qualify defaults to that lower score. That higher interest rate could end up costing you thousands over the life of the loan.

4. One Of You Has Little Or No Income

Excluding a partner who has little or no income from a mortgage application can also be advantageous. This strategy makes it easier to qualify for a down payment assistance program and could end up saving you some money. 

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Also, if one of the partners is self-employed, you may want to leave them off the application because self-employed individuals require more complicated documentation. Just another thing to keep in mind.

Even If You’re Not On The Mortgage, You Can Still Own The House

The thought of not being listed as a borrower on your home’s mortgage can definitely cause an emotional reaction, but it doesn’t mean you don’t own your home just as much as your partner. 

Suggest’s managing editor Kristen Philipkoski bought a house with her husband in 2021. She was self-employed at the time, and their mortgage broker recommended that only her husband be listed on the mortgage.

She’s still on the title along with him, so she owns the home regardless of who technically owes money to the bank. 

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“I did feel slighted initially, but then I realized that I kind of have the best of both worlds. I’m not responsible for the mortgage, but I still own the house,” she said.

We should note that the ability to do this varies from state to state, so it won’t always be an option.

When It’s A Good Idea To Put Both People On The Mortgage

In a perfect world, both partners would be on the mortgage. It’s the way to go if you both have high incomes and good credit.

That way you’ll likely get approved for a higher mortgage amount with a decent interest rate since your combined income and assets will be considered. It’s a more straightforward, better way to make buying your dream home a reality.

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The job market in recent years has been unlike anything we’ve seen in the past. The response to the pandemic changed how we work and where we work, and the ongoing effects are showing up in the data.

According to Zippia, 37% of the U.S. labor force changed or lost their job in 2020, the average tenure with a single employer is just 4.1 years, and 65% of American workers are actively searching for a new full-time job right now.

Clearly our generation doesn’t stick with one employer for life and retire with a pension the way our parents and grandparents might have.

If you have changed jobs multiple times over the course of your career, that probably means you have retirement savings with more than one bank or investment firm. But if you have multiple 401(k)s and IRAs scattered throughout your employment history, there’s a surprising reason you should be consolidating—you could be leaving money behind.

According to the Government Accountability Office—which analyzed data between 2004 and 2013—approximately 25 million Americans left behind money in a 401(k) account after leaving a job. That equates to roughly 37% of all workers actively saving in an investment plan through their workplace, according to figures from the labor department.

More and more employers are automatically enrolling their workers in 401(k) plans. Some may not even realize they’ve been enrolled. This increases the likelihood of employees forgetting about a retirement account when they change jobs.

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If you don’t leave updated contact information with your former employer, you probably aren’t going to receive any updates or information about that retirement plan or your account. What’s more, current law allows businesses to move old accounts with a balance under $5,000 out of their plan, making it even easier to lose track of your money.

“From a consumer perspective, the default should be 100% of the time to move your money [when changing jobs],” Spencer Williams, president and CEO of Retirement Clearinghouse, told CNBC.

The Benefits Of Consolidating Accounts

There are numerous benefits to consolidating your retirement accounts, but here are a few of the most notable.

1. It’s Easier To Keep Track Of Your Money

Attempting to keep track of multiple accounts attached to a variety of former employers is a waste of time and effort. When you consolidate everything into one account, it’s easier to track your progress toward your savings and investment goals and manage your options. Having one statement, one account number, and one password is optimal for not allowing anything to slip through the cracks.

2. Fewer Fees

Retirement plans usually incur investment, custodial, and administrative charges. Therefore, fewer accounts should mean fewer fees—which could mean much better growth for your money.

Some fees are even based on the amount of assets you hold. If you combine your accounts, that total balance might meet minimum asset thresholds, which could qualify you for a fee reduction

3. It Makes Things Simpler For Your Beneficiaries

Retirement accounts are often left behind when you die, and having multiple accounts could make things difficult for your loved ones who administer your estate. Consolidating accounts should make it easier to coordinate payments for your heirs, without the hassle of tracking down multiple statements and contacting multiple custodians.

4. Reduce The Risk Of Missing Required Minimum Distributions

The IRS requires you to take a minimum distribution from your retirement accounts—known as an RMD—when you turn 72. If you don’t, there is a heavy penalty equal to 50% of the amount you don’t withdraw. Having multiple accounts makes for multiple RMDs and increases the risk of making a costly mistake.

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The Potential Cons Of Consolidating Accounts

Consolidating retirement accounts might not be the best option for everyone. It may limit your investment options and your flexibility. Rolling your money over to another investment could also incur fees.

Cutting down to just one account might not be the right move for your investment goals, either. Depending on the amount and frequency of your contributions, it might be best to have at least one 401(k) and one IRA.

The Best Thing To Do For Your Retirement

Finances are intensely personal, as we all have different needs and goals. The best thing to do when planning for your retirement is to make a monthly budget and talk with your family/partner. It’s also a good idea to consult a professional so you can be informed of your different investment options and receive guidance when weighing your choices.

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Rising costs due to inflation have affected all of our lives, most notably when it comes to our weekly grocery bill.

The reasons for increasing costs at the grocery store are numerous and complicated. Rising fertilizer costs are causing some farmers to increase their crop prices. Consumer demand, workplace conditions, the pandemic, and food shortages have all contributed to the soaring prices at the grocery.

According to the USDA, 2021 grocery store food prices had increased 3.5% from 2020, which was 75% above average from the 20-year average inflation rate. In fact, food inflation prices from 2017 to 2021 are only slower than increases in housing and transportation.

The current data for 2022 looks even worse. According to the U.S. Bureau of Labor Statistics, food prices are up 10.8% for the year ended April 2022, the largest 12-month increase since November 1980.

You probably don’t need official studies to know your dollar is not going as far during your weekly grocery run. But you may be curious how your spending compares to the national average.

Average Monthly U.S. Grocery Bill

The personal finance company SoFi recently provided a breakdown of the average monthly grocery bill for single, two-person, and four-person households.

Of course, there are a number of factors that influence these numbers, such as age, gender, and region. For example, the most expensive city for groceries was listed as Honolulu, Hawaii, while Manchester, New Hampshire averaged the least expensive.

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SoFi also noted that men and younger people tend to have higher average bills. Additionally, the age of children in the household can have a big impact on the monthly total. For children under 12, an additional $143-$357 may be added to the monthly bill. For teenagers, the estimate ranges from $233-$344 additional per child.

As noted above, the average gets more complex based on the age of those in the household. For the figure tied to a four-person household, the estimate is based on two adults (ages 20-50) and two children (one 6-8, one 9-11).

Additionally, these figures only look at prices for meals prepared at home and snacks and don’t include meals eaten out. Depending on the person or family, it’s not surprising that in 2020, Americans spent an average of 8.6% of their income on food according to the USDA.

If you’re worried about your monthly grocery bill, things like making a clear budget and consulting with a financial specialist can ensure you keep your spending manageable. There are other more creative ways to save as well.

Ways To Save On Your Grocery Bill

Most people know not to go shopping on an empty stomach, that’s obviously a rookie move. But figuring out creative ways to save on your grocery bill will help you in the long run.

1. Make More Frequent Trips

If you live close to a grocery store or there’s one on the way home from work, you could make more frequent trips to the store. Instead of stocking up on perishable items that might go bad before you consume them, just grab what you need for the next few days.

2. Keep Your Kitchen Organized

Finding a kitchen organization method that works for you, your family, and your lifestyle is another way to keep money in your account. Having effective organization techniques can ensure that you don’t overbuy or double up on food that you already have. A functional kitchen will also ensure that your food is visible and used before the expiration date.

3. Make Sure You’re Storing Food Correctly

For perishable foods, how you store these items can be the difference between them ending up on your table or in the trash. Remove berries from their plastic containers and store them in mason jars instead. Only keep butter you plan to use in the next day or two on the counter and the rest in the fridge. Invest in a herb saver or produce savers to keep items fresher, longer.

4. Get Creative With Leftovers

Have a bunch of leftover celery you bought for that one recipe? Turn it into a creamy celery bisque! Made too many deviled eggs for that dinner party? Smash it up into a quick egg salad and serve on crusty bread. A little creativity (and help from a quick internet search) can also ensure you aren’t throwing your hard-earned money away.

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According to the Federal Reserve, the average retirement savings of a person aged 45-54 is roughly $250,000. For someone between 55 and 64, it’s closer to $400,000. How does your bank account line up with these numbers?

If the answer is “not great,” there’s still time to start racking up major retirement savings, especially if you’re in a two-income household. One strategy recommended by financial planners is to live off of a single income and devote the entirety of the other to savings and investments.

It might sound like a nightmare to pair down your lifestyle to bare bones, but after speaking to several experts, it’s actually a pretty feasible plan. From CPAs to financial planners to debt relief lawyers, the consensus is clear.

Not only is paring two-income households down to one a highly effective way to boost retirement savings—particularly in midlife and beyond—it’s also surprisingly possible. Here’s how to get started.

1. Plan And Delegate

“The basic idea is that, even in a dual-income household, you can live on one income while keeping the other to pay off your high-interest credit cards, build an emergency fund, invest it, or keep it as savings,” explained Lyle Solomon, a finance attorney in Auburn, California. “Keep the higher income to cover all the expenses for your living, and keep aside the lower paycheck for your financial goal.”

Consider which income you and your partner will use for living expenses and savings. This will give you a more accurate baseline for the following steps.

2. Consider Your Likeliest Hurdles

Jason Ramage, a financial advisor in Cincinnati, Ohio, stressed the importance of anticipating hurdles based on your income level. “For higher earners, the main roadblock will be lifestyle. That’s not just spouses and partners—expectations for gifts to family and how you spend time with friends may need to be communicated.”

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3. Start Splitting It Up

Once you’ve assessed where each income will go (and the obstacles you might face as a result), you can start divvying up funds. “A good starting point is looking into the 50/30/20 rule,” said Julien Brault, CEO of Hardbacon, a Canadian finance management app.

“Take the one income, allocate 50% to basic needs, 20% to savings and debt repayment, and 30% to pleasure. Now, this may seem like a really tight budget at first, especially if there are other dependents, such as children. However, a couple will have some wiggle room with the 20% because they already have 100% of the additional income going into savings.”

The graph above illustrates how Brault advises couples to split their finances according to the 50/30/20 rule.

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4. Keep It Transparent

Brault also suggests keeping the reserved income as transparent and accessible as possible. They recommend both partners have access to the accounts “so that it’s not one person spending all their money, while the other accumulates a chunky bank account. Life can be unpredictable, and this arrangement should remain fair for both parties.”

“Consider the second saved income as an agreed-upon amount to save amongst one shared separate account,” Brault continues. “Then, divide the 50/30/20 spending among the personal accounts. For example, if one person pays the bills, the other buys groceries and gifts. This will help avoid strife and keep everyone happy in the long run.”

5. Ease Into It Slowly (And Stick To It)

Nearly every financial expert I spoke to emphasized the importance of easing into this lifestyle shift slowly. “A cold-turkey approach when it comes to finances will never work effectively,” warns Paul Sundin, CPA. “Start the process slowly, and have a plan in place.”

“Staying committed can be challenging,” adds Solomon. “It’s natural to feel burdened when you suddenly switch to living with one income. To make this more bearable, I recommend following it for a minimum of six to eight months, even when you want to give up. By the end, when they see the result, it becomes more of a habit and interest.”

6. Remind Yourself Of The Benefits

Switching from two incomes to one is a tough sell and a difficult process. Whether you need extra convincing or are experiencing some one-income woes, it’s important to continually remind yourself of this lifestyle’s benefits.

“Added flexibility, starting to feel financially free long before you reach any target savings number, possibly opening doors to a move, career change, or starting a business that felt too risky when you were spending both incomes,” are a few of the perks of this approach, Ramage said.

Saving for retirement can seem daunting, but there are ways to make it easier. Paring down to one income is a significant adjustment and, for some, not financially feasible. But if you can try to pinch pennies, hunker down, and live on one income, you might be surprised how fast the savings pile up.

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Less than 50 years ago, women weren’t allowed to open a line of credit without a husband or male co-signer. The traditional expectation of a woman getting married, homemaking, and having children might seem antiquated—but it’s not that old. 

Still, an increasing number of women are choosing a single, child-free life. These women have focused on their careers, friendships, and personal growth, and their priorities fly in the face of outdated, misogynistic stereotypes. 

And as it turns out, these women are thriving. A 2019 report from the St. Louis Federal Reserve Bank showed the median wealth for single men and women—both with children and without—and the results were surprising.

While single men without children have a median family wealth of $57,000, single women without children’s media family wealth is $65,000, according to the Reserve’s research.

Childless women have greater earning power, more disposable income, and are happier than ever. So it’s unsurprising that a 2021 Pew Research Center study found that 44% of Americans aged 18-49 likely or definitely won’t have children.

The more wealth families have, the more secure they are in terms of housing, food, and overall financial well-being. So these numbers are exciting for single women without kids. But the results are tempered by what the study found about women with children.

How Children Affect Women’s Wealth

Gender inequality is nothing new in this country, but the disparity between single mothers and fathers is staggering. While single men with children have an average wealth of $59,000, a single mom’s average median wealth is $7,000. 

No, that’s not a typo, and we didn’t forget a number. A single mother’s average wealth is less than 11% of a single, childless woman’s and 12% of a single father’s. For minorities, it’s even worse—single white mothers had around $46,000 in median wealth in 2019. Meanwhile, Black and Hispanic/Latina mothers had about $4,000. 

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Considering all this data, there appears to be little to no professional penalty for men with children. But when it comes to single moms, there is a noticeable motherhood penalty that disproportionately affects marginalized communities. 

“Motherhood penalty” refers to the professional and financial setbacks experienced by women who have children. This can range from something as severe as getting fired to something as passive as being passed over for raises and promotions.

Julie Kashen, director for women’s economic justice at the Century Foundation, told Bloomberg that the motherhood penalty shakes out to around 15% of a woman’s annual income for each child under the age of five.

A Woman’s Right To Choose Shouldn’t Affect Her Wealth

The motherhood penalty is a double-edged sword. It’s also far more pervasive and complex than a simple “men vs. women” argument. While the gender pay gap is very real, the stark difference between women’s wealth with and without children is even greater. 

This all but strips many women of the right to have both children and a career—or, at the very least, financial stability. The Brookings Institution estimates that the cost of raising a child through 17 is around $300,000. So, with a median wealth of $7,000, how can a single mother ever get ahead? 

On the other hand, this alleviates pressure from the women who opt not to have kids. Society has long-judged women who remain single and/or childless. Indeed, motherhood has its fair share of guilt, but the guilt of not having kids is a heavy burden, too. The Reserve’s report shows that childless women aren’t just surviving—they’re flourishing. 

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Considering just how recently women earned the right to professional and financial autonomy, it’s emboldening to see single, childless women outpacing their male counterparts. Hopefully, society can move toward closing the gap for those with children as well.

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In the early 2000s, Mikey Taylor was a professional skateboarder. Brands sponsored him, but he was at the beginning of his career and not making much money. So he decided to take what money he had and invest, particularly in real estate.

He continued to invest, started a few businesses, and is now president of Commune Capital, a private equity real estate investment firm. His educational platform and podcast, Avni Intelligence, help entrepreneurs become more knowledgeable about startups, business plans, and the financial aspects of running a successful business.

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Taylor posts to TikTok regularly and his reels cover everything from the biggest money mistakes to how to retire by 40. But you’re already approaching or past that age and your savings aren’t where you’d like them to be, he has three tips on how you can catch up, and one big don’t.

1. Bump Your Savings Percentages

His first tip is to save more. Many people put between five and eight percent of their paycheck into savings; he recommends upping that to ten or 15 percent.

2. Work For A Few More Years 

He also recommends eschewing retirement for a few years. It may sound like a bummer if you dream of diving into your hobbies full-time at 62. But if you work longer, you can increase your savings and enjoy your golden years to the fullest.

3. Create A Side Hustle 

Lastly, creating a side hustle while you still work your day job could increase your income. This might mean diving into a passion you’ve always wanted to pursue, or picking up something easy to do from home. Walk dogs on the weekend, snag some customer service hours, or start an Etsy store selling the jewelry you’ve been making as a hobby. You never know, your side hustle might even turn into a later-in-life career change!

4. Don’t Take On More Risk

A big risk with the small chance of a windfall payoff is not the move here. Investments like gold, commodities, and cryptocurrency a retirement plan do not make. At this time in your life, you want more predictability, not less.

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While TikTok is certainly chock-full of entertaining, albeit sometimes strange videos, there are also a number of content creators using the platform to drop some seriously helpful advice.

One financial advisor has taken center stage in this turbulent economy after revealing the top 10 things he never does when it comes to wealth.

Russell Maltes has been a Certified Financial Planner and an investment advisor representative for 19 years. He also provides financial literacy tips through his TikTok videos, including this two-part series listing the ten things he would never do.

Don’t:

1. Use debit cards for online purchases.
2. Buy a car for the next 6-12 months.
3. Pay credit card interest—don’t live beyond your means.
4. Miss out on your employer’s 401K match (it’s free money!).
5. Borrow money to buy depreciating assets (like cars and vacations).

Also Don’t:

His Advice Received Mixed Reactions

It stands to reason that financial advisors, by definition, are pretty good at managing money. Still, TikTokers are nothing if not opinionated, and his followers had an array of differing responses.

Many items on the list received positive feedback. While it may seem like young people have no choice but to take out loans for college, Maltes received resounding support for his recommendation to take on as little debt as possible or consider taking up a trade instead.

One user noted: “To #8 I think vocation, trade & blue collar jobs are severely underrated and passed up on too much these days.” The financial advisor confirmed the sentiment, “I know several ‘Blue Collar’ guys earning $100k+. You are absolutely right.”

When it came to paying credit card interest, commenters were less agreeable. “You don’t use credit cards? What if your roof needs replacing or your AC goes out? Or you have big medical bills that you have to pay?” one user said. To which he replied, “Part of having a good financial plan is having an emergency fund for the unexpected. When something bad happens like what you’re talking about, I don’t want to compound the problem by paying interest on those unexpected expenses.

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A point about PMI (private mortgage insurance) was also well received and seemed insightful to many home buyers and homeowners. “Wait wait wait. I can just call my lender and ask for PMI to be removed if I have enough equity?? Tell me more!” one user commented in disbelief. Maltes was delighted to oblige, saying, “In some instances yes based on equity. It can’t hurt to ask.”

Other commenters highlighted pain points about having enough cash to buy a car outright. One user even said Maltes could operate according to his own rules because he’s rich. He then quickly clarified: “Trust me, I’m not rich. Please watch my video paying cash is a worthy goal. I pay cash because I don’t buy fancy things.”

One comment was so challenging and spicy that it got a video reply. “Stupid advice really. Like most people can buy vehicles [with] cash. You’re only talking to people with hundreds of thousands of dollars in their checking account.”

Maltes laments our consumerist society. People showing off their fancy purchases on social media is not real life, he says, but a highlights reel. That “keeping up with the Joneses” mind frame will keep you in debt when you could be building wealth.

It’s tough to digest this advice when you feel you can’t make ends meet—especially if you’re already breaking some of these 10 tips. But it’s important to evaluate your budget, see where you can chip away at debt or other financial burdens, and start paying in cash more often, even if it seems impossible now.

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Think of your annual budget. What comes to mind? You likely went through the neverending Rolodex of essentials: mortgage, utilities, groceries, insurance, student loans, kids’ expenses, etc., etc. You might also budget for savings and emergency funds if it’s within your means. 

But when’s the last time you included “joy” in your monthly budget plans? I’m not talking about a spare hundred or two to go shopping for someone else. I mean pure, unfiltered, all-for-you joy. Sound frivolous? According to the experts, it’s actually crucial. 

From financial coaches to mental health counselors, the consensus is clear. Budgeting for joy in midlife and beyond is absolutely essential—here’s why.

1. It Normalizes Feeling Good

“We grew up with that ‘women are expected to do it all mentality,’” says Jen Lawrence, certified master life coach and financial analyst. Most of us were so busy juggling parenting, working, and volunteering that we had little time, money, or energy to do what we loved.”

“Women in their 50s and beyond often feel financially and energetically squeezed as they balance the complex needs of their young adult children and elderly parents,” she continues. “Marriages and jobs may not bring you the same joy they once did. If you do not build joy into your life, you can go for days, weeks, or months without doing anything that you love.”

“Midlife and beyond is a chance to make joy a part of our lives. Happy people are healthy people, and budgeting for joy is as important for our health as budgeting for healthy food, medical appointments, and gym memberships. By including things that make us happy in our budgets, we are normalizing the importance of feeling good.”

2. It Builds Much-Needed Resiliency

Budgeting for joy also helps us during times that feel decidedly not good. Rachel Cavallaro, licensed psychologist, explains that this is because joy is a building block for resilience. “As we get older, we will experience more losses related to death and transitions.”

“This can create feelings of loneliness and sadness, which are not helpful for mental well-being. In fact, this is how many people go on to develop depression or anxiety. Creating positive emotional experiences related to joy can enhance mental well-being and reduce stress.”

“Working to reduce symptoms related to anxiety and depression can make life feel as though you are just getting by,” Cavallaro continues. “On the other hand, by creating rewarding and meaningful experiences, you can go from surviving to thriving.”

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3. It Reminds Us To Value Ourselves And Others

While budgeting for personal joy might seem selfish at first, it’s actually incredibly thoughtful of others. “Joy is contagious, and it will be shared,” says Robin Shear, public speaker and joy coach. “Whenever we have joy in our buckets, we have something to give from, making the prioritization of joy a very giving thing.”

Moreover, it pushes back against the societal devaluation of older women. “Older women have a lot to offer, but they often struggle with the idea that they are worth less than their younger counterparts,” Monica Miner, mental health counselor, explains.

“Many older women feel undervalued because society doesn’t see them as capable of doing what a younger woman can do,” Miner continues. Of course, this is inherently false, and including joy in your budget reaffirms that fact.

4. It Keeps Things Interesting (And You Healthy)

Finally, budgeting for joy keeps life fun. It can be all too easy to fall into a routine of “work, chores, errands, mindless scrolling or streaming, and repeat.” While it might be relatively productive, it’s also monotonous—and not very conducive to maintaining mental and physical health in and after midlife.

“Participating in fun activities, as well as learning something new, can help you to feel better physically and mentally. Ongoing learning helps to improve memory and offset dementia,” Cavallaro explains.

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Finding Your Version Of Joy

Examples of joy-inducing physical investments include yoga, tai chi, or dance classes. Taking an art class, learning a new language, traveling, learning to play an instrument, and participating in immersive learning experiences are all viable options, too.

But really, the best way to budget for joy is to figure out what causes you to feel the warmest and fuzziest on the inside. Shear poses a few prompts to determine what makes joy bubble up in your heart.

“Is it relationships with people she cares about? Budgeting a few dollars to take a loved one out for ice cream and great conversation is a fantastic money move.” Additionally, “does she find joy in the way movement makes her feel? Does she find joy in generosity? It’s a fun idea to have a giving fund ready and waiting to dip into when ideas bubble up.”

No matter what joy looks like for you, it’s imperative that you include it in your budget. It might not be as tangible as the electric bill, but it’s what will keep your inner light on—and that’s arguably the most important.

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Life seems to be one giant cycle of thinking you know best, then realizing years later that you most definitely did not. We are constantly learning and evolving, whether in love, friendship, careers, or money. 

Midlife is a time when the mistakes of our past become painfully clear. Time feels limited, and we want to avoid wasting any of it by making the wrong decisions—especially when it comes to money.

One way of doing that is by learning from other women’s hard-earned wisdom and experiences. And we can reciprocate by sharing our experiences so other women can avoid our mistakes. 

Reddit’s Ask A Woman Over 40 community recently shared advice they picked up along the way. Specifically, they discussed financial wisdom that didn’t sink in until after their 40th birthdays.

1. Visualize Your Goals (Like, Really)

Entering midlife can feel uncomfortably murky, and it’s difficult to push forward without feeling like you have a firm handle on the future. So, one woman suggests creating a physical vision board.

“Add your goals (health, wellness, travel, study, career, love, lifestyle, etc.) on top. [Then, add] every step to reach them from top to bottom. Keep the visual closer to you, and follow every step.” Moreover, don’t forget to “take time off for yourself. Do self-care by doing things that give you joy.”

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2. Put A Cap On Your Generosity

Generosity is an admirable virtue. But it can also be dangerous if you don’t know when to slow down your spending. As tempting as it might be to shower those closest to you with gifts—especially if gift-giving is your love language—be sure to do so mindfully.

“As a 43-year-old who is in a bit of a financial fix because I gave away more money than I could truly afford in the past few years, ‘love within your means’ strikes a chord with me,” one woman wrote.

“I strive to practice. I still give or spend a lot of money on other people. Birthdays, invitations, donations, etc., but not as much as I used to. People who love you will understand that a free get-together for an outdoor game is as good as an ‘epic’ bar or party night,” another added.

3. Use This Shift To Your Advantage

Entering midlife is a transition, but it’s not an inherently negative change. One commenter suggested asking yourself some of the questions below to make sure the second half of your life will be productive and joyful.

“Do you want to move somewhere new? Do you want to start over with your career? What if you got a work visa and moved to a different country? What kind of things would you want to accomplish?” one woman suggested.

“I think focusing on what YOU want and doing things for self-care and self-love will benefit you in such a difficult chapter in your life and help you push through to the other side. Even though life is changing, it doesn’t have to mean it’s negative. This is the part where you can really have fun and go for things that sound exciting for you.”

“You’re old enough that you’ve learned from some mistakes,” the writer continues, “but young enough to know what you want in life and have time to make that happen.”

4. Even If You Can’t Travel, Find Adventure

Additionally, as one Redditor pointed out, you don’t need to fly across an ocean to get the most out of life. “At the risk of sounding like an ‘eat, pray, love’ cliché, traveling is pretty awesome,” the woman writes.

“But if you don’t have the means to do a lot of that, just try to do something different sometimes. I spent far too much time going to the same restaurants and clubs and, in general, doing the same things.”

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5. Ask For Help

Finally, one woman added that the best thing she did in her mid-thirties was to visit a financial planner who specialized in helping women.

“It was like the most practical, eye-opening, and motivating advice I’ve ever gotten. It was not just about money but about determining your goals, values, and setting up a truly practical plan to help me attain those goals.”

“The person I worked with did not charge very much,” she continues. “She had found herself in both a professional and personal crisis after divorcing in her late 40s, early 50s, and worked with a planner, and ultimately, wound up completely switching careers to become a planner herself to help young and older women alike.”

The midlife transition and beyond can be intimidating, especially when it comes to finances. But with the lessons you’ve already picked up along the way—and the support of women who have done the same—it can also be an exhilarating, joyful, and profitable time of life.  

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From the mid-’60s to now, Gen X has arguably witnessed more significant societal transformations than any other generation. Modern life today is almost indistinguishable from the lives many remember from childhood. 

And while this can be positive or negative, depending on where you shift your focus, there’s one area where this change is decidedly good: Money. Because, as it turns out, your Gen X childhood just might be making your financial life miserable. 

Financial coach Mikelann Valterra sat down with The Mean Show to discuss how growing up in the ‘70s and ‘80s is still disaffecting us today.

Old School Ideas About Money

Financial wellness is by no means a cut-and-dry topic. From lifestyle to mental health and everything in between, a lot can affect—and disaffect—your bank accounts. But Valterra suggests that a large part of these struggles are rooted in antiquated ideas about money, both in regards to gender and etiquette.

Valterra explains that while researching middle-aged women’s relationship to money, she found that, “if you had a brother, it is far more likely that your parents would have talked with him about money. There was this assumption that, of course, boys need to learn how to handle money. Boys were not only given more opportunities than girls around earning money but also, there was just more conversation.” 

Moreover, “regardless of the gender piece, a lot of families have this belief [that it’s] wrong to talk about money,” Valterra continues. “At some point, every kid will say to their parents, ‘how much money do you make?’ That’s the moment where it’s really interesting how a family will respond to something like that.”

“A lot of families will say, ‘we don’t talk about that,’ and just shut the whole conversation down. There’s this belief that many of us inherit from early childhood that says you don’t talk about money. And if you do, things happen, and people get mad. There’s conflict around money.”

Moving Into A New Money Mindset

“Here we are as these awesome adult women, and it’s hard for us to talk about money with our partners. Or our friends,” Valterra says. This discomfort manifests in everyday situations—paying for the check after a group meal, planning vacations, or managing budgets. 

Luckily, these stigmas and genderizations of finances are starting to faze out, and Valterra contributes this important transition to the simple act of talking about it. Throughout the rest of her interview, Valterra explains that the key to diminishing anxiety around money is to face it head-on. 

While it might seem counterintuitive at first, this discomfort is a good sign. As our society breaks down the taboo around money, it can become a normal part of daily conversation—not a scary subject reserved for serious occasions. 

Moreover, as we start to unlearn the misogynistic genderization of money, we can become more in control of our financial well-being. As the host of The Mean Show states at the beginning of the interview, “turning 50 doesn’t mean it’s time to fade into the background; it means we know what we’re doing, and we’re not afraid to do it.”

Taking Control Over Your Finances (And Happiness)

Releasing the preconceived notions about money you learned in childhood is no small task, but it isn’t impossible. There are several ways to regain control over your finances, including seeking help from a financial coach like Valterra. 

And since most of us cohabitate with a partner, relative, or other close loved one, it’s also essential to identify your financial roles in the relationship. An honest assessment of everyone’s spending habits can help determine a more successful dynamic balance. 

Another way to keep the finance talk free-flowing is to have regular monthly dates with your partner. These scheduled times for discussing money can help clear up miscommunications, streamline your budget, and better prepare for the future. 

Finally, it’s important to remember that these things take time. Even the best-intentioned budgets can sometimes fail. That’s not an excuse to stop trying; it’s just an opportunity to try another course of action. 

While your Gen X upbringings might have brought about some not-so-savory habits and beliefs, those same upbringings equipped us with the perseverance, flexibility, and wit to change for the better.

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The average retirement age in the US varies by state. But, by and large, the typical retirement age range falls somewhere between 60-70. Usually, men retire a little later than women.

The country’s current state of affairs hasn’t made anything easier, particularly saving money. According to the Pew Research Center in 2020, a third of Americans had to dip into savings or retirement funds to pay bills. It’s even worse for low-income families.

If you’re panicking, take a deep breath. I mean, I’m panicking too, but we can all start taking steps to ensure our financial future. 

Average Retirement Savings By Age

According to a survey from the Federal Reserve, the average amount of retirement savings varies widely depending on your age. Looking at consumer finances from 1989 to 2019, here was the average breakout of retirement savings by age group:

• < 35: $30,170
• 35-44: $131,950
• 45-54: $254,720
• 55-64: $408,420
• 65-74: $426,070

In terms of savings goals, it is recommended by the personal finance company SoFi that you should have equal to the amount of your current salary saved by the time you are 30. At 40, it’s recommended to have three times your annual salary in savings. 50-year-olds should have six times their salary, and at 60, the recommendation is to have eight times your annual salary. By 67, experts recommend savings ten times your annual salary.

What If I’m ‘Behind’ Or Have No Savings At All?

Despite the recommended savings, Americans typically don’t have that much saved, if anything. In fact, a report released in 2019 by the U.S. Government Accountability Office outlined that 48% of Americans over 55 didn’t have anything saved for retirement. The data for younger Americans doesn’t look any more promising.

There’s a difference when it comes to gender and retirement savings, too. “In terms of gender, on average women have about $23,000 in retirement savings; men have $76,000. Fewer than 50% of women say that saving for retirement is a priority for them, as opposed to 62% of men,” according to research from SoFi.

It’s important to note that women typically make less than men in the workplace. Plus, some women leave the workforce to care for children and spend less time contributing to their personal retirement funds, which further can put them behind.

RELATED: A Financial Planner Shares The Top Reason’s Most People Fail With Their Budget

While it might seem like you’re falling behind in the savings game, it’s very common to have less than the recommended amount saved. It’s also common to feel stressed about catching up.

What Women In Their 40’s And 50’s Should Focus On When Saving For Retirement

Being in midlife presents unique benefits and challenges when it comes to finances. According to the U.S. Bureau of Labor Statistics, workers earn the most between the ages of 34 and 54. If you started saving later in life or weren’t able to save much when you were younger, taking advantage of increased earnings in midlife to contribute to retirement savings could be a strategy for some.

For mothers in their 40’s or 50’s, the daunting costs of your child’s college education can be a tempting reason to cut back or lapse completely on retirement savings. On top of that, if you have parents that are now requiring more help or medical assistance, the instict to put your family first can become overwhelming. While every situation is unique, the first step should be seeking the advice of a financial planner. They can assist with creating or reviewing estate plans, as well as formulating strategies to tackle all your specific saving and spending needs.

For those getting closer to retirement themselves, it can be all too easy to assume the strategies you set up earlier in life is still serving your future goals and current situation. While checking in frequently with a financial planner to ensure your strategies are on track is always a good idea, it never hurts to take a look at what lifestyle or savings changes can be made to get you where you would like to be.

If you’re over 50, the IRS allows catch-up contributions to 401ks and IRAs. According to a study from the Center for Retirement Research, once parents are empty-nesters, retirement savings rarely increase. While you very well may be supporting a child outside the home, it could be a good strategy to reroute those extra funds spent on the kids to your retirement. Speaking of, if your children have moved out, now might be the time to downsize your home or move to an area without a heavy focus on a good school district. A good retirement strategy should focus both on boosting savings and controlling costs.

At the end of the day, feelings of “it’s too late” or “where would I start now” are very common, but it shouldn’t prevent a retirement savings strategy altogether. Having conversations about finances, even if they may be stressful, are all too important. If married or in a long-term relationship, speak with your spouse frequently. If you have children or parents that need assistance, speak to them and those family members involved to formulate a plan. And regardless of your circumstances, seek out a professional who can give you guidance on budgeting and savings.

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Mikelann Valterra is a financial psychologist and author who helps women transform their relationship with money to create a life they love.

My biggest takeaway from this conversation was that the more you know about your spending, the less you will have to think about money. If you get clear on exactly where your money is going, and then decide what is most important to you, you can create a life where you get everything you need. At the same time, you won’t waste money on things you don’t care about, and you’ll think about money less.

What a blessing that would be, right?

She combines emotional intelligence with practical money strategies help her clients feel in control of the money, while escaping financial stress and anxiety.

We talk about how to get control of your money, the importance of having a passion that brings you joy (hers is Argentine tango), why opposite money personalities tend to partner up, and so much more.

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It’s been announced that January 24th is the official start of the tax filing season. This means it’s that time of year again to buy some pricey tax software and prepare your return on your own, hire a tax prep pro, or take advantage of the Free File Program from the IRS.

If you are one of the many American taxpayers who use the IRS Free File Program, though, the tax prep process will look a bit different in 2022. TurboTax—which has been criticized in the past for some questionable tactics—has exited the IRS Free File Program.

TurboTax is the second big brand name in the tax world to end its participation in the Free File Program in just two years, as H&R Block dropped out in October 2020. The news of TurboTax’s decision was actually released last summer. But since most people’s minds weren’t on taxes at that time, many taxpayers are learning about this surprising news now.

“Intuit has elected not to renew its participation in the IRS Free File Program and will no longer be offering IRS Free File Program delivered by TurboTax,” the website claimed.

What Is The IRS Free File Program?

The IRS Free File Program is a tax prep and filing option that gives eligible taxpayers access to brand name software programs–without the costly fees.

If you qualify, you can skip out on paying $50 or more for tax software to prepare your return. Instead, you get access to online software for free that prompts you with key tax questions, calculates the bill or the refund, and allows you to file your return electronically.

According to the IRS instructions, if your adjusted gross income was $73,000 or less in 2021 then you can use free software to prepare and electronically file your tax return. If you make more than $73,000, you still have the option of using free file forms.

According to USA Today, approximately 70 percent of American taxpayers qualify for at least some of the services offered by the IRS Free File Program. But, just a tiny fraction of those who qualify actually use the program.

IRS data showed that just 4.2 million taxpayers used one of their free online partner products that were available via the Free File Program in 2020. 4.2 million is a low number considering that year the IRS processed more than 150 million individual electronically filed returns.

Why Is Participation In The Free File Program So Low?

It’s been two decades since the IRS began partnering up with tax software companies for the Free File Program. In the special deal, the IRS agreed that it would not compete with these companies by offering up its own tax prep software. In exchange, the participating companies offered free tax return software to a percentage of the American tax-paying population.

Participation in the program has always been relatively low, though. Intuit’s TurboTax, H&R Block, and other partners of the Free File Program have faced criticism thanks to a 2019 ProPublica investigation.

This investigation detailed how TurboTax was limiting the reach of the program because they were making it difficult to find online. Instead, these companies were directing users to products that weren’t free. What’s more, the report revealed how Intuit added code to TurboTax’s Free File Program landing page that actually hid it from Google and other search engines.

In response to the ProPublica report, the IRS announced changes to the program. One of those changes was tax prep firms agreeing to no longer exclude “Free File” landing pages from internet searches.

How To File Your Taxes For Free

The IRS recommended that taxpayers use the term “IRS Free File Program delivered by (software provider)” when searching for the Free File Program. Or you can simply click here to access the IRS Free File Program and their fillable forms.

If you’ve used IRS Free File in the past, you will receive an email this tax season from the company you used. This email is required for returning customers and includes a link that will direct customers back to their official IRS Free File services.

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As the old idiom goes, nothing is certain but death and taxes. But what about death taxes? Can those be avoided? Taxes are part of daily life in America—from sales tax to gasoline tax to the FICA tax. There’s also income taxes, property taxes, sin taxes… the list goes on and on. When you add it all up, Americans spend an average of 29.2 percent of their income in taxes each year, according to Debt.org.

Even though you are already giving the government more than 29 cents of every dollar you earn during your lifetime, your heirs might end up getting taxed again when you die.

Depending on what state you live in, your heirs or your estate can get hit with a death tax bill—either an inheritance or an estate tax. Or vice versa, you can get hit with a death tax bill if you receive assets from a family member or friend’s will.

What Are Inheritance And Estate Taxes?

Inheritance and estate taxes are related to wealth transfer after death. They are essentially the same thing, the only difference is who pays the bill.

According to Investopedia, an inheritance tax is imposed on someone who receives assets from the estate of a deceased person. However, an estate tax is levied on the actual estate before assets are distributed.

These taxes have a reputation of being the last twist of the taxman’s knife, since they are imposed on your assets or heirs after you die.

Inheritance and estate taxes—aka “death taxes”—have been legislated in a number of states across the country. At the federal level, there is only an estate tax. But that won’t be an issue for 99.9 percent of us.

The federal estate tax exempts the first $11.7 million in assets for an individual and $23.4 million for a married couple. It doesn’t kick in until after those levels, and the federal estate tax can have a rate as high as 40 percent. The idea behind the federal estate tax was to prevent tax-free wealth in perpetuity among America’s wealthiest families.

Instead of dealing with the IRS, the inheritance and estate taxes that non-multimillionaires encounter are at the state level. Each state has different rules. And, depending on the size of the inheritance, each beneficiary could possibly have a different tax bill to take care of.

This is because inheritance tax rates also depend on the beneficiary’s relationship to the deceased, not just the state they are in. In each state, there are certain types of relationships that are exempt for an inheritance tax.

These States Don’t Collect Death Taxes

There are 32 states that do not collect any sort of death-related taxes. If you and your beneficiaries live in any one of these states, there are no inheritance or estate taxes imposed on wealth transfer. They include:

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Indiana, Kansas, Louisiana, Michigan, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, Wisconsin, and Wyoming.

However, if you live in one of these states and you inherit a home, business, or bank account that is located in a death-taxed state, an inheritance or estate tax might still apply.

The State Details

Currently, 16 states and Washington, D.C. have either estate or inheritance taxes. Only five have inheritance taxes—New Jersey, Nebraska, Iowa, Kentucky, and Pennsylvania. But that number will fall to four by 2025 because Iowa is eliminating its inheritance tax.

Twelve states have an estate tax: Washington, Oregon, Minnesota, Illinois, New York, Maine, Vermont, Rhode Island, Massachusetts, Connecticut, Hawaii, and the District of Columbia. Maryland is the only state that has both an estate tax and an inheritance tax.

The two states that have the lowest threshold for estate taxes are Massachusetts and Oregon. They impose taxes on all estates worth $1 million or more.

The highest estate tax rate in the country is in Washington at 20 percent. However, it’s only applied to the portion of an estate’s value greater than $11,193,000.

Organization Is Key

When you know that you will be receiving an inheritance—or if you are planning for your retirement and don’t want your kids getting hit with a massive tax bill—organization is key. Wealth transfers can be a huge blessing. But if they aren’t planned for properly, they can end up leaving a huge tax burden.

Holding an intergenerational family meeting with an estate planner and legal advisor—when everyone is healthy and in good spirits—is a smart move. They can explain to everyone what the implications are for the wealth transfer in each state where an asset is held. Then, you and your family can plan accordingly.

Trying to discuss financial matters while in mourning isn’t wise. And this kind of topic requires research, planning, and consultation with professionals.

Planning For Death Taxes

Including a strategy for death taxes as you build your wealth and plan for retirement is a good idea. Options like establishing a trust, donating to charity, and gifting assets can help you and/or your family avoid probate court and minimize disputes.

There is no one-size-fits-all approach when it comes to planning for your retirement and a wealth transfer. However, putting together a plan for your assets to end up with the most important people and causes in your life—instead of with the taxman—is a smart financial move. Especially if you and your beneficiaries live in a death tax state.

We’re almost two years into the pandemic’s new “normal.” Once rare occurrences are now routine. We conduct most of our business at home–from work to leisure to shopping. As a result, the need for delivery drivers and at-home service providers has skyrocketed.

But the pandemic didn’t just change our way of life. It also altered how we keep things running. 

Under these new circumstances, tipping culture has also changed. This may come as a surprise to some, but in a post-pandemic world, tipping isn’t just for bartenders and hairstylists anymore.

Adjusting To The New Normal

Despite early fears, COVID-19 has not deterred us from spending money. In fact, June 2021 marked the ninth consecutive month of US retail growth. Additionally, e-commerce sales have grown a whopping 95 percent since June 2019. 

However, this surge isn’t good news for some industries. The delivery industry, which was already stretched thin, is especially feeling the brunt of this sales spike.

As we enter the second year of the pandemic, it would appear that this new normal is here to stay. And with that new normal comes a new tipping culture.

The New Normal Tipping Culture

Even before the pandemic, the US had a strong tipping culture. We were already used to tipping servers, bartenders, hairstylists, nail techs, and other special service providers. In fact, the US tips more than any other country. So, it’s unsurprising that we carried this tradition over into the pandemic. Except this time around, there seemed to be even less rhyme or reason. 

As Toni Dupree, professional etiquette coach, told Reader’s Digest, “we were just tipping based on emotion. That may or may not have had anything to do with the actual service.” 

Indeed, the early days of the pandemic were emotional. The restaurant industry saw a slight rise in tips when we first started calling essential employees “heroes.” But pandemic fatigue quickly set in, further muddying the waters. Suddenly, our usual tipping culture was confusing and hard to navigate. 

Do we tip normally, or are we still under special circumstances? Do these new services require tips? Who shouldn’t I tip?

From Deliveries To Dog Grooming

According to etiquette professional Lisa Grotts, there’s a lot to catch up on. Grotts told Reader’s Digest that “the rules about whom, how, when, and how much you should tip have changed.” 

Tipping waiters and bartenders has always been good etiquette. But now, it’s also appropriate to tip food delivery drivers, personal grocers, and yes, even on take-out orders. 

For hospitality workers like valets, door hops, and housekeepers, Grotts suggested a $5-10 tip. Reader’s Digest also recommended tipping delivery drivers based on the frequency and size of the deliveries.

Tipping hair stylists, nail techs, and tattoo artists is also typical. In a post-pandemic world, this norm also extends to personal trainers, handypersons, and house cleaners. 

However, not everyone requires a tip. You don’t need to tip teachers, doctors, or lawyers. Nor do you need to tip government workers, who wouldn’t be able to accept anyway. 

Independent contractors often set their own prices. So, a tip isn’t entirely necessary. Still, tipping is an excellent way to express your gratitude if you feel the service was excellent.

To Tip Or Not To Tip?

These new tipping norms can seem overwhelming for the over 37 million people living below the poverty line. People who’re living paycheck to paycheck often don’t have the cash to spare. 

As a former waiter myself, I do find merit in the old adage, “if you can’t afford to tip, you can’t afford to eat out.” But in reality, it’s a bit more complicated than that. 

Not all of the services included in the new tipping culture are superfluous, like a trip to the bar. People in quarantine need personal grocers. Appliance and home repairs are necessary expenses. 

If the person obtaining these services can’t afford an extra tip, does that make them unworthy of the service? In a word: no.

Whose Responsibility Is It?

The responsibility of fair compensation shouldn’t be on the consumer alone. For most services that accept tips, the corporations who employ the workers also need to be accountable. They need to provide their workers with a living wage.

“One of my favorite quotes, by George Eliot, says, ‘what do we live for if not to make the world less difficult for each other?’” Dupree said. “Tipping well is one way to make things a little easier for someone else.”

Because we won’t win the fight against tipping culture by just not tipping. That only hurts the worker, not the cause. 

A recent TikTok video has fueled the long-running debate over tipping, which is quite the hot topic in our current economy. Who should be paying a server’s wages—the employer or the customer? And, if you can’t afford to tip a “proper” amount, should you go out to eat in the first place? The opinions are strong—and they are extremely mixed.

The Great Applebee’s Debate

In a TikTok video, an Applebee’s employee at the Staten Island, NY location showed off a credit card receipt left by a customer. It shows the server was given a tip of $6.55 on a $73.45 dinner bill, for a grand total of $80. On the receipt, the customer wrote, “You was great holidays are just rough right now.”

The tip amount was noticeably less than the “gratuity examples” of 18 percent ($12.14) and 20 percent ($13.49). In the caption, the user asked for thoughts about this tip amount.

It’s An American Thing

Tipping your server is a common practice that’s become expected in America, unlike other countries across the globe. Restaurant waiters and waitresses are legally recognized as “tipped employees,” which means they will receive what’s called a “server’s wage” from their employer.

This amount is usually just a small percentage of a state’s minimum wage. In my state, the server’s wage is $2.13 per hour. It’s been that way since I started waiting tables back in the mid ’90s.

If a server doesn’t earn enough tips to at least get to their state’s hourly minimum wage during the scheduled workweek, then the employer is responsible for paying the difference. That means all servers make at least minimum wage no matter what. But, there’s also the opportunity to make well above that rate.

In my serving experience, those Wednesday lunch shifts when I took home $20 bucks were forgotten during the Saturday dinner shifts when I took home $200.

Who Should Pay?

In the TikTok video’s comment section, opinions on tipping came pouring in. The two most popular were, of course, polar opposites. One side claimed tipping should be “banned” and that employers should be required to pay servers more.

“Ban tipping. Force the restaurants to pay servers living wages,” one user wrote. Another added, “Tips shouldn’t even be a thing. Waiters should be paid like other jobs and tipping should be banned like in other countries.”

The other side argued that servers know the compensation structure of their job and should find another job if they aren’t happy.

“Tips aren’t mandatory. They left a note. Be understanding. You chose this line of work. Roll with the ups and downs with waitressing. That’s life,” one user argued. Another added, “Tips are voluntary, not mandatory. People know the job they sign up for doesn’t guarantee tips. What a sense of entitlement.”

One server chimed in and wrote, “As a server, I love what I do. Sometimes you’ll get a bad tip. It happens, then someone else comes in and double tips and makes up for it.”

The pro-tipping side also argued that if you can’t afford to pay for service, then you shouldn’t be eating out.

Should servers have to depend on tips to make a living? Or, should employers be required to pay a higher fixed wage? For now, it’s up to their customers to give them a pay bump for performance.

As the holidays draw near, many people are feeling a strain on their wallets. Extra spending on gifts, decor, travel, and more can drain finances in the blink of an eye. But even factoring holiday spending out of the equation, creating and more importantly, sticking to a budget year round is no easy task.

While there are many tips and tricks out there to successfully keeping daily spend in check, sometimes it’s just as helpful to take a step back and look at where the process might not be as strong.

Turning to the experts, a professional financial planner shared the top reasons why his clients fail to keep their budgets. Spoiler: you’re likely guilty of a little of all three.

Budgeting Is Demanding

Malik S. Lee, financial expert and founder of Felton & Peel Wealth Management, recently spoke to Business Insider about budgeting.

“One of the most important parts of maintaining financial wellness is controlling your budget,” Lee began. “Although it may sound simple, maintaining a budget is not an easy task—physically or psychologically.” 

Physically, money can be at times be scarce and life doesn’t always stick to your budget. Between unplanned expenses, like a costly car repair, to rising costs, this can make the the situation all the more difficult.

Psychologically, saving money is difficult for similar reasons. Mental health is closely linked to how we spend our money. Avoiding that fact can set us up for failure and, surprise, worse mental health.

Lee’s job is to help others manage their finances. Throughout his career, he’s seen three common budgetary pitfalls. Luckily, he’s also found solutions to all of them.

Problem 1: Out Of Control Discretionary Spending

Investopedia defines discretionary expenses as costs a household can survive without. Also called non-essential spending, this category includes eating out, entertainment, vacation, gifts, and hobbies.

These expenses are often relatively small. Consequently, it can be easy to overlook just how much we spend on them each month. 

For example, a $6 cup of coffee on the way to work sounds okay. But at the end of the month, those daily trips to Starbucks could set you back $120 or more.

Solution 1: 50-30-20 Rule

Lee suggests using the 50-30-20 rule to get a handle on non-essential spending. With this rule, 50% of your net income goes toward essential costs. This includes utilities, housing, and groceries.

The next 30% of your net income can then go toward discretionary spending. The remaining 20% is reserved for savings, like emergency funds, 401k contributions, and 529 plans.

Lee also recommends constructing your budget in a way that starts with savings first, then housing, then transportation.

“By employing this top-down approach, you ensure that you pay yourself first and then attack two of the largest budget categories,” he explained.

Problem 2: The ‘Lifestyle Creep’

Accountant Thomas C. Corley defined lifestyle creep as increasing your standard of living to match your increased income. 

In a lifestyle creep, your monthly expenses increase at the same rate as your income. As a result, you notice no difference in the amount you can save—only the amount you spend. 

Lifestyle creeps can look like buying a new house or car with a pay raise. Or, it could be as simple as increasing the number of times you go out to eat per month.

Solution 2: Conduct Budgetary Reviews Bi-Annually

It’s called a lifestyle creep, not a lifestyle sprint. As such, the only way to see if your monthly habits have changed is to review your spending over a large period.

“By conducting reviews of your budget at least bi-annually, you can ensure that you are paying optimal prices, monitor inflation, and temper any temptation,” Lee suggested. 

“While I am a firm believer in enjoying the fruits of your labor, I will caution you to do so in moderation,” he warned. This brings us to our final, most common budgetary failure.

Problem 3: Too Much Impulse Spending

A recent survey found that the average American will make 12 impulse purchases a year. However, I think this data is likely on the conservative side. 

Many people succumb to impulse purchases not in spite of their financial situation but because of it. “Impulse spending offers a sweet hit of dopamine,” Lee explained, “which might soothe [financial] stress.”

This makes people living paycheck to paycheck especially prone to impulse buys. Add in the stress of a global pandemic and generally poor mental health, and it’s no wonder that Americans are turning to retail therapy.

Solution 3: Waiting Periods, Financial Apps, And Staying Offline

Lee offered several solutions to this tricky issue. Waiting periods for non-essential buys, anywhere from 48 hours to a week, can help save money in the long run. 

Financial apps like Mint and You Need A Budget are also useful for reminding yourself of short- and long-term goals. Keeping track of where your money should (and shouldn’t) go can ward off strong impulses to spend.

Finally, Lee recommends avoiding online shopping. It’s convenient but dangerous. Sure, you can buy things with the click of a button. You can also drain your bank account in the same way.

Buying non-essentials at a brick-and-mortar store can keep you more in tune with how much money you’re spending. 

And when you know how much you spend, you can get a better grip on how much you save.

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The holiday season inspires many of us to help others. We shovel driveways, bake cookies, and give to charity. But despite our best efforts, our good deeds might not go as far as we thought. 

Unfortunately, not all charities are created equal. Some charities leave a lot to be desired and don’t do as much good in the community as they claim. Some may even pocket your money for themselves, instead of passing it on to the cause they claim to support. To help your festive funds go further, we’ve collected some of the best and worst charities to donate to this holiday season. 

How To Tell If A Charity Is Good Or Bad

In a perfect world, charities would donate funds to the programs they claim to serve. However, a perfect world this is not. Luckily, there are several ways to grade a charity’s reliability. 

One such resource is CharityWatch, a nonprofit charity watchdog service. CharityWatch grades efficiency, accountability, and governance. The more reliable the charity, the better the grade. Another reliable resource is Charity Navigator, a nonprofit organization that strives to provide donors with all the necessary information when deciding where to donate.

“Charities that are A-rated generally spend at least 75 percent or more on their programs,” Stephanie Kalivas told Consumer Reports. “So, more of your money goes to the causes you want to support.” 

Where else would that money go? That depends. Some charities funnel money back into administrative and fundraising costs. Others are straight-up scams. 

Now we know where to find the facts. So, let’s see what they say.

Worst: Aid For Starving Children

At the risk of sounding like the biggest Scrooge of all time, let’s start with the Aid for Starving Children. Saving starving children around Christmas? There’s no nobler cause, right?

Er, wrong—this CA-based organization received a D rating by CharityWatch. The AFSC meets neither governance nor transparency benchmarks. Not to mention, only 44% of the funds it raises go toward starving children. 

And since the AFSC doesn’t provide financial records, there’s also no way of knowing how much of that extra 56% is going toward the top execs.

Best: Boys & Girls Club of America

Rather than filling the bellies of wealthy CEOs, opt for an organization like the Boys & Girls Club of America. The Boys & Girls Club is a top-rated organization on CharityWatch.

82% of the funds raised by the club go directly toward serving youth of all backgrounds. And that’s with massive operational overhead. There are currently over 4,300 clubs nationwide that serve nearly four million children.

Worst: Noah’s Lost Ark

Few things tug on the heartstrings quite like animals in need. (I’m looking at you, ASPCA commercials.) So, when the opportunity arises to help our four-legged friends, many of us are eager to do so. 

Organizations like Noah’s Lost Ark rely on that fact. Yet, only 51.3% of funds raised go toward the animals, according to Charity Navigator. The other 43.8% goes toward future fundraising. But to give credit where it’s due, only 4.9% is spent on administrative costs. 

Best: American Humane

If you’re a sucker for the Sarah McLachlan commercials, then you’ll be pleased to know the ASPCA received a 3-star rating from Charity Navigator. But if you want your dollar to go a bit further, try American Humane instead. 

American Humane is the country’s first national humane organization. Founded in 1877, it has a long history of improving the lives of domestic, exotic, and farm animals worldwide. 

American Humane received a 90.9 out of 100 rating (four stars) from Charity Navigator. Of the $21 million raised last year, 83.3% of that went directly toward the animals.

Worst: Disabled Veterans National Foundation

On the heels of Veterans Day, many of us feel extra inclined to serve those who have served their country. And while many reliable organizations do just that, the Disabled Veterans National Foundation is not one of them. 

The DVNF received a whopping F rating from Charity Watch and a zero-star rating from Charity Navigator. Considering only 4% of funds raised go toward veterans, this is certainly unsurprising. Meanwhile, its CEO is sitting pretty on a six-figure salary. Thank you, next.

Best: Gary Sinise Foundation

One of the best military-focused charities was started by a man who never actually served himself, though you might recognize him as Forrest Gump’s Lieutenant Dan. 

Gary Sinise started the Gary Sinise Foundation in 2011. It has since earned a 98.23/100, four-star rating from Charity Navigator. 89% of funds raised go toward honoring veterans, first responders, their families, and those in need.

Worst: Salvation Army

Last up on our “worst” list is none other than the Salvation Army. Its trademark red kettles and bell ringers are practically synonymous with the Christmas season. But to one community, in particular, the Salvation Army’s mission is anything but charitable. 

The SA is a religious organization, exempting it from tax data and, in turn, watchdog ratings. However, it doesn’t take a CPA to find the SA’s long history of LGBTQ discrimination disturbing. 

Trans activist and writer Zinnia Jones wrote a HuffPost piece in 2013 that stated, “Supporting the [SA] this season means assisting an aggressively anti-gay church in furthering its goals of discrimination.”

Suddenly, those scarlet buckets outside of Walmart seem a lot less festive.

Best: Housing Works Inc.

Like the Salvation Army, Housing Works serves the community with a chain of thrift stores, among other endeavors. The NYC-based nonprofit focuses on fighting AIDS and homelessness. 

Unlike the Salvation Army, Housing Works is a non-religious entity and boasts an impressive 100/100 Charity Navigator score. 89.7% of funds raised go toward finding stable housing, health care, job training, legal aid, and more to queer and trans people in need. 

Like any red-blooded American, I wait to go to the doctor until it’s an absolute emergency. (What am I, a Rockefeller?) 

But when it comes to my pets—or as I call them, my fur children—I try to keep their vet visits as regular as possible. After all, I want what’s best for my precious angel babies. 

Unfortunately, I can’t pay the vet bill in Crazy Cat Mom Love. So, I needed to find a way to keep my pets healthy without going broke. 

Enter PAWP, an online vet clinic that has changed the pet health care game forever. PAWP can save pet owners up to $5,000 in annual vet costs. 

And with all that money you saved, you can spoil your pets with all the treats and toys they rightfully deserve. 

What Is PAWP?

PAWP has brought quality but affordable vet care into the 2020s (finally) with its online two-for-one pet services. PAWP is a 24-hour online vet clinic, giving you access to qualified vet advice round the clock. 

Whether 2 p.m. or 2 a.m., PAWP members can utilize the Ask a Vet feature for fast, real-time medical advice without appointments or wait times. 

PAWP also offers an annual $3,000 emergency fund for unexpected vet bills. Just like humans, our pets can get sick or injured quickly and without warning. 

Too often, people have to choose between giving their pet adequate care and not draining their savings account. It’s a heartbreaking decision—one that no pet owner should have to face. Luckily, PAWP’s emergency fund eases that financial burden. So, you can focus on getting your pet happy and healthy again without breaking the bank. 

Get Peace Of Mind (And Save Some Pennies)

Being a pet owner can be stressful. Are they sick or just acting weird? What was that thing they just ate?! Are they mouthy because they need something, or are they being dramatic? 

PAWP helps answer these questions from the comfort of your own home. Their 24-hour Ask a Vet feature, in particular, helps save money by avoiding unnecessary vet trips. (Did you know 60% of pet issues could be solved with an online vet?!) This includes any health, behavioral or nutritional question you might have regarding your pet.

Take, for example, the time I rushed my cat to the vet because of an ear infection. It turns out she didn’t have one; she just smelled bad. Regardless, I had to pay a hefty bill for my stinky cat. 

Amira N. was able to avoid this snafu by using PAWP. “Our dog swallowed a mask on the playground. We were chatting with a vet within a minute,” Amira wrote. “Before PAWP, we took our dog directly to the animal hospital. This time, we confidently treated our dog safely at home.”

And in moments where emergency vet visits are necessary—luckily my cat hasn’t had a life threatening emergency (God forbid!)—it’s incredibly helpful to have some type of protection to offset costs.

Before PAWP, I never considered getting any protection for my pet. And because of PAWP, I now know PAWP is the only way to go. 

PAWP Vs. Pet Insurance

I have to admit, as a crazy cat mom, I was a little embarrassed to realize I never thought about pet insurance. I insure my car, my house, even myself—so, why not my pets? 

After I discovered PAWP, my skeptical cynic-self decided to look into pet insurance. If plain ol’ pet insurance was the more economical option, that would likely be the one to choose. 

However, as I sifted through various insurance companies and plans, I quickly realized that PAWP is an insanely better deal. 

According to Value Penguin, the average cost of dog insurance is $25 to $70 per month. For cats, the cost is around $10 to $40 a month. 

Forbes’ data agrees, citing up to $1,000 in annual costs for a large dog breed. Forbes also found that after the age of two, pet insurance rates steadily increase. By the time your pet is seven years old, your base insurance rate could increase by 58%. 

These insurance costs don’t factor in higher rates based on breed, age, and pre-existing conditions. (Yup, those exist for pets, too.) Moreover, $500 seems to be the average deductible across several major providers. PAWP doesn’t discriminate on those, and all pets are welcome for the same flat fee of $24/month. And yes, if they ever have an emergency related to a pre-existing condition, PAWP covers that, too.

With PAWP, you can protect up to six pets within a household for just $24 a month. That’s not $24 per pet; it’s $24 per month for all of them. There are also no deductibles, credit checks or copays. And most importantly, you don’t pay it back.

No pet insurance provider can offer that kind of deal—trust me, I’ve checked.  

Save Your Money With Their Emergency Fund 

PAWP’s monthly membership fee of $24 adds up to around $228 a year. That investment in turn provides you with an emergency fund of up to $3,000 in vet bills and thousands of dollars saved in unnecessary vet visits. 

It only takes one major catastrophe to drain a savings account. But with PAWP, pet owners don’t have to decide between giving their baby the care they need and paying the light bill. For some pets, this means life or death. 

“I never realized how cold a vet could be,” Patricia S. wrote. “They told me if I couldn’t pay that night, they would turn us away. In other words, send him home to die. If it wasn’t for you guys, he would be dead by now. I cannot thank you enough.”

Sometimes, PAWP is there to help with your pet’s journey across the rainbow bridge. For example, PAWP gave Susan W. the ability to take her 17-year-old dog to the emergency room where he could pass peacefully in no pain. (I’m not crying; you’re crying.) 

“PAWP’s doctor was absolutely correct and right on,” Susan wrote. “Thank you for being there when I need you.” 

And with PAWP’s emergency fund, the vet bill is sent directly to PAWP. The service works with any vet in the United States and they pay directly before you leave the vet clinic. PAWP even lets you see the letter they send to your vet explaining their coverage. 

Honestly, it’s pretty hard to beat $3,000 in coverage and countless unnecessary vet visits (and bills) for only $228 a year—that’s only 7.6% of your total coverage amount.  

Quality Care For Your Pet Is Priceless 

Depending on your pet’s health, PAWP can save you up to $5,000 in pet care costs in any given year. Using PAWP is like having a miniature vet right in your pocket.

This is especially helpful for new pet parents—looking at you, pandemic pet buyers. You’re not alone by the way—hundreds of people decided to adopt a new pet during the pandemic. 

PAWP brings invaluable peace of mind to pet owners, both new and old. Plus, your pets will be healthier, happier, and more likely to live a long, full life. How’s that for a win-win? 

Data shows that pets provide joy, companionship, compassion, and empathy in our lives. The least we could do is make sure we give them the best possible care. 

And thanks to PAWP, it’s never been easier to do so. Be sure to check out pawp.com to sign up and start saving today!

In retirement, one should plan ahead, and a 401(k) plan is one of the most solid, traditional options out there. But are 401(k)s the only avenue to post-retirement success? The answer may surprise you.

The good news is that even without a 401(k) plan, you can retire well off. Nevertheless, you’ll need to start putting your ducks in a row early. Also, some alternatives to a traditional 401(k) may have higher risks. But, before you let your mind wander, let’s delve into the varied options.

Individual Retirement Accounts (IRAs)

One ever-popular alternative to a traditional 401(k), and one you likely think of first when discussing retirement account alternatives, is the IRA. In terms of IRA formats, there are two to consider. The first is a traditional IRA, while the second is a Roth IRA. 

Investors will notice a few key differences between an IRA and a traditional 401(k). In contrast to 401(k)s, contribution limits are lower for IRAs. An additional consideration with IRAs is that they do not have company match options like many 401(k)s offered by employers. 

In spite of their downsides, both Roth IRAs and traditional IRAs offer several benefits to consider. IRAs offer more investment options than 401(k)s. With these popular accounts, you can choose how your investments are made. When it comes time to withdraw from an IRA, there are no mandatory minimum withdrawals at specific ages and qualified withdrawals are tax-free on Roth IRAs. 

By leveraging the company match on a 401(k) and investing any extra funds into an IRA or Roth IRA, investors can get the best of both worlds.

Individual, Non-Retirement Investing

By managing your own investment portfolio, you enjoy unparalleled control over your investments. Investors who do so can take advantage of a wide range of strategies, such as the seasonality of stocks. Additionally, investors should consider leveraging stocks with healthy dividends that typically pay out quarterly for each share held.

These types of investments come with a far higher level of risk since individual investors lack the same experience as professionals working for investment companies. Even so, investing on your own can be an excellent method for building wealth for your retirement. 

Health Savings Accounts

A health savings account could benefit your retirement budget in an unexpected way. HSAs, or health savings accounts, are tax-free investments designed to cover medical expenses throughout the year. 

Unless used, HSA funds roll over into the next year. Unlike a flexible spending account or FSA, it’s not a use-it-or-lose-it situation. In the event that you remain healthy or do not withdraw funds from an HSA, the account can grow substantially.

Similar to IRAs, they have a maximum contribution amount. If someone withdraws for medical expenses, they will not be penalized. Once you retire, you can withdraw at any time for any reason. Since the contributions to these accounts aren’t taxed when you make them, they are taxed as income when you withdraw them in retirement.

Those planning their retirement have several options to choose from. Investors no longer have to travel the 401(k) route exclusively. Combining a few of these retirement-saving strategies will have you sitting pretty when it’s time to leave the cubicle. 

It can be hard these days to tell the difference between a great deal and a scam. Especially when it comes to finding a great price on a product that you buy online. How do you know if everything is legit and that you’ll receive the actual product you ordered instead of a cheap knockoff? You don’t want to be handing out your debit card info to just anyone.

This is why you need to have the right tools when shopping online. Specifically, you need a browser extension that can instantly find you the best available prices where you’re already shopping online.

There Are A Lot Of Browser Extensions To Choose From

The most common ways to save money while shopping online are to compare prices across different sites and to use promo or coupon codes. But doing this on your own can take a lot of time and effort. And the process is often a waste because the price of an item is nearly identical on every site and the coupon codes you find don’t always work.

This is where free browser extensions like Honey, Ibotta, RetailMeNot and Capital One Shopping come into the picture. These different extensions can help you save money when you shop online. But which one saves you the most? Which one works with the most sites? And, which one is the easiest to use?

How Do These Free Browser Extensions Work?

Just in case you’re not familiar with the basics, these free browser extensions can easily be added with just one click. They all work with popular browsers like Chrome and Firefox.

Once the extension is added, all you have to do is create an account and shop online like you normally do. Honey, Ibotta, RetailMeNot and Capital One Shopping are all designed to help you save money on items you were already planning to buy.

When it’s time to checkout, the extension that you have added to your browser will automatically look for coupon codes for you to apply.

Honey and RetailMeNot Can Help You Find Coupon Codes

The Honey browser extension can help you find coupon codes on thousands of sites. When you’re shopping online, the extension will automatically start looking for codes. If Honey finds you a working code, it will apply the one with the biggest savings to your cart.

RetailMeNot works in a similar way by adding coupon codes at checkout when you buy an item that the extension can find a working code for. RetailMeNot will also show you the items and stores that they’ve found working codes for via their user data, so you can browse the app for current deals.

Honey and RetailMeNot can save you money, but the coupon code search process can be a hit or miss. In our experience, the opportunities to really save some cash didn’t come along as often as we would have liked.

Ibotta Gives You Cash Back

Ibotta works differently than Honey and RetailMeNot, but it can still save you money. Instead of searching for coupon codes, Ibotta is a free cashback app that offers cashback rewards when you shop both in store and online. The app works with more than 300 retailers, and you can cash out when you reach the $20 mark in rewards.

The offers are store-specific, and many are brand-specific. You have to add the offers before you shop, and you also have to upload receipts. When buying online, you must make your purchases through the Ibotta app to get the cashback reward.

Capital One Shopping Will Save You Time And Money

When you add the free Capital One Shopping browser extension, it will save you time and money when you shop online by instantly checking for coupons, better prices and rewards. This extension doesn’t have anything to do with Capital One credit cards, and you don’t have to be a Capital One customer to use it.

The Capital One Shopping extension applies available coupon and promo codes at checkout when you’re shopping at one of thousands of trusted online retailers like Amazon, Walmart and eBay.

But Capital One Shopping offers more than just coupon codes. It will compare prices across different sites while you shop to make sure you are getting the lowest price available. This includes shipping fees that you won’t see until checkout. If it finds you a better price, Capital One Shopping will show you the price difference. The extension will also provide you with a direct link to the other retailer so you can easily take the better deal.

When coupon codes and lower prices aren’t available, you can still save money with Capital One Shopping by earning Capital One Shopping Rewards that you can redeem for gift cards from a variety of top retailers.

What’s The Best Browser Extension?

After doing our research, we decided that Capital One Shopping really is the best free browser extension for us. It’s easy, convenient and you could save tons. So get shopping and start saving!

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Whether you’re saving up for a trip, gathering your dollars for a home upgrade or just want some extra cash, these four easy-to-follow steps will have you saving over $4,000 a year. And we’re being serious.

1. Switch To Reusable Items

Even though we try to be more eco-conscious in our homes, some things still get overlooked. For example, switching out our single-use items to reusable ones is a great way to save some cash while helping the environment. 

Paper towels are products we buy to ultimately throw away. Sure, sometimes paper towels are needed for a particular spill. However, using SWESEdishcloths is a great alternative. They can be cleaned and disinfected to use up to 200 times. Once they’ve done their fair share of cleanup, throw them in the compost to break down. According to their website, one SWEDEdishcloth equals 17 rolls of paper towels. If your family uses around two rolls a week, you’ll save about $6.30 weekly. 

2. Skip The Coffee Shop

Your morning cup of coffee is another place to save some cash.

When I worked at Starbucks, there was a woman who came in every day and ordered a venti caramel macchiato; sometimes I would see her twice a day! Regardless of your beverage of choice, brewing your own will save you lots, as an average coffee drinker will have a couple of cups a day.

Instead of spending $20+ a week at the coffee shop, us your Keurig or coffee pot.

3. Utilize Free Services For Entertainment

Finding free sources of entertainment is kind of my hobby! There are so many fun things to do outdoors, free places to visit and free services to benefit from. One thing I love to do is borrow movies, audiobooks and books from my local library using Libby and Overdrive. 

By renting free movies weekly and saving the theater as something for a special occasion, you’ll obviously save some major cash. A typical adult theater ticket costs $13, and that’s not counting refreshments. With a small drink and small popcorn, you’ll be spending $25 per person when it’s all said and done. Whether you go to the theater every week, attend an event or spend that $25 else where, save that money instead and help your bank account by looking into free entertainment. 

4. Make Meals At Home

Even if you only order take-out once or twice a week, it adds up in the long run. You could be spending $30 a week! Instead, try cutting it down to a couple of times a month and cook at home for the remainder of the days.

Start by creating a grocery list and stick to it! And if you can order online with a waived their pickup fee, that’s even better. This way, you stay away from impulse buys and save time and money.

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