Instead, they put their extra cash toward their mortgage payment, which they paid off in 7 years, and invested Chris’s entire paycheck. This allowed Chris’s wife, Kim, to cut back to part-time work in 2012 after their daughter was born. It also gave Chris the freedom to retire from his career as a physical therapist at the age of 41.

While it was tempting for the Mamulas to succumb to lifestyle inflation when their income almost quadrupled, they knew doing so would keep them from achieving their most important goal: becoming financially independent at a young age.

How Lifestyle Inflation Works

Lifestyle inflation occurs when your spending increases as your income grows. It usually happens gradually over a period of time, making it difficult to notice.

You get a promotion or a raise, so you decide to buy a new car. The payment eats up most of the difference between your old paycheck and your new one. Or maybe you take a new job with a better salary and think, “Now I can finally move into my own place.”

Every level comes with new expenses and things to buy. You kick the savings can further down the road and tell yourself you’ll start to save and invest later when you have more money. But later comes with new financial demands, and the cycle continues.

Lifestyle inflation can make it difficult for you to get ahead financially and meet your long-term goals.

“People who are subject to lifestyle inflation are never able to save a substantial amount of money,” said Taylor Venanzi, Certified Financial Planner and Owner of Activate Wealth, LLC. “They may appear successful on the surface (given their career growth), but they are often unhappy or frustrated internally.”

If you save your pay increases instead of spending them, you can give yourself and your family options that you may not have otherwise.

Tony LeClaire, Certified Financial Planner and Principal at Caliber Wealth Advisory, has worked with many clients with high-paying careers who were diligent about investing their money, rather than spending it when they earned more.

“They woke up one day with a robust portfolio, nice home, and the choice to live a life they wanted to when it came time to retire,” he said.

Related: What is a Financial Plan and How Do You Make One?

5 Ways to Avoid Lifestyle Inflation

As you grow in your career and earn more money over the years, there are several strategies you can implement to keep your spending in check and lifestyle inflation to a minimum.

1. Direct raises to savings and retirement

Any time you get a raise, put all or most of it into your savings or retirement accounts. This strategy is effective because you won’t ever “see” the money in your checking account, so you won’t miss spending it. It’s a behavioral trick that can keep you from getting accustomed to a larger lifestyle.

 

 

 

 

 

 

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“If saving for retirement is your top priority, and you just landed a 5% raise, then immediately bump up your 401(k) contributions by that exact percentage,” said Jeff Rose, Certified Financial Planner. “If credit card debt is haunting you, then direct the raise into your emergency fund and knock out that debt at an accelerated pace.”

2. Follow a plan

Take the time to think about what’s important to you and where you want to be financially 5, 10, and 20 years from now. This can help you resist lifestyle inflation and allocate your extra funds towards your goals.

Avery Breyer, author of multiple personal finance books, said her annual income doubled early in her marriage. But she and her husband saved most of that money and were able to pay off their house in fewer than 5 years. Breyer revealed that this was no easy feat, especially when her high-earning friends were going on exotic vacations each year.

 

 

 

 

 

 

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Once you’ve figured out how much you need to achieve your goals, lifestyle inflation can suddenly become unappealing because you know it would sabotage your chances of success. One key element of financial planning is your budget.

A budget shows how much money you have coming in, what you’re spending it on, and how you can make changes to save more. Kyle Kroeger, personal finance blogger at Financial Wolves, earned a raise and promotion, which resulted in a 20% increase over the last year.

“Even though we make more money than we have in the past, my wife and I stay disciplined on a spending plan,” he said. “We keep eating out and luxuries to no more than $750 per month.”

3. Avoid the comparison trap

While it’s easier said than done, focus on yourself and disregard what your peers are doing.

Venanzi said there’s no way of knowing all of the things that got your peers into a given situation. Are they spending all of their money on nice things without saving a dime? Do they come from wealth? Do they love their work?

“Don’t worry about what others are doing and focus on yourself and your own progress,” he said.

 

 

 

 

 

 

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Some level of lifestyle inflation is okay. In fact, it can be motivating. But the key is balancing your goals with luxuries like a new laptop or trip to Europe. However, trying to keep up with friends or neighbors can sabotage your financial future.

Venanzi encourages his clients to buy a house that’s below their budget, go for the car that’s a little cheaper, and try to avoid high-end department stores. These things compound over time and can keep you from meeting your goals.

If you share finances with your partner, try to live off of one salary and save the other. The Mamulas lived off of Kim’s salary and used Chris’s income to save, pay off their mortgage quickly, and invest. This allowed the couple to buy way less house than they could “afford” and drive cheaper used cars.

4. Evaluate your life before the income increases

Once you earn more money, you may be tempted to inflate your lifestyle because you can. However, according to the hedonic treadmill theory, you won’t necessarily experience long-term happiness.

This theory posits that we, as humans, operate at a baseline happiness level. When good or bad things happen, we experience a spike or drop, but we always return to our baseline.

Prior to starting their own firm, Natalie Slagle, Certified Financial Planner and Founding Partner of Fyooz Financial Planning, said she and her husband took jobs that nearly doubled their income. As a result, they doubled their restaurant and clothing expenses.

Finally, she and her husband sat down and asked themselves questions like: Is it necessary to spend $400 a month on clothes? Or $800 a month on going out to eat?

They reflected on what their relationship and lives were like right out of college and realized they were happy when they didn’t have a lot. They already had a wonderful life, so there was no need to double their spending in categories that didn’t bring them much value or joy.

From that point forward, Natalie and her husband were able to reduce their expenses and put those dollars toward their dream of owning a business together.

5. Build your financial support system

Just because it’s your personal financial journey doesn’t mean you have to go it alone. It’s helpful to have a team of people to support and encourage you to reach your goals.

 

 

 

 

 

 

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This can be a friend or spouse who’s working alongside you. You can meet regularly to check-in and update one another on your progress.

A financial coach or Certified Financial Planner can also make an invaluable addition to your financial team. Both can guide you through the process of defining your goals and creating a strategy to accomplish them.

Venanzi compares this to going to the gym. Some people need a trainer or classes to stick to their plan. Don’t think of this as a weakness if it helps you achieve your goals.

Good Times Aren’t Guaranteed to Last

It can be exciting to get a raise or promotion or land a higher-paying job. When you do, it’s all too easy to go to Nordstrom instead of T.J. Maxx, splurge on five-star restaurants six nights a week, and buy the most expensive house and cars you can afford. Doing all these things at once can interfere with your long-term financial goals.

Lifestyle inflation can also lead to hardship if your financial situation changes and you no longer make as much money. The money you earn today may not be the money you earn tomorrow.

Take advantage of today’s good times by saving as much as you can, treating yourself in moderation, and focusing on your long-term strategy.

The post Lifestyle Inflation: 5 Tips for Avoiding the Silent Budget Killer appeared first on DollarSprout.

Kat Tretina learned this firsthand. Five years ago, she was earning a lucrative salary, including bonuses, at a major pharmaceutical company.

While the money was great, she worked long hours and was constantly exhausted and burnt out. She spent every morning miserable and realized that the lifestyle that accompanied her high-paying job wasn’t sustainable. So she and her husband cut their expenses to the bare minimum and saved as much as they could.

Eventually, Kat quit her job, moved from Pennsylvania to Florida, and accepted a position with a small non-profit that paid 50% less. At the time, people thought she was crazy, but she’s never regretted her decision. She found the work to be fulfilling and finally had the healthy work-life balance she always wanted.

When Taking a Lower Paying Job Is a Good Idea

Even though more money may sound like the dream, there are many instances where taking a pay cut makes sense.

You want to improve your mental health.

Unfortunately, there are countless jobs out there that can wreak havoc on your mental health. They can deprive you of energy, motivation, and happiness. After Kyle Kroeger realized that his job as an associate at an investment banking firm took a serious toll on his mental wellbeing, he looked for a new role in the industry.

Kroeger accepted a job as an investment manager that came with a 15% pay cut. He was no longer spending 70 to 80 hours per week in the office. As a result, he experienced much less stress.

“I felt like I had my life back,” he said. “I was able to go to happy hour, exercise more, and actually spend time with my family.”

If you’re mentally drained, have physical symptoms attributed to stress, or dread going to work most days, getting a less taxing job, even with a pay cut, can be the first step to improving your mental health and overall quality of life.

Related: How One Woman Turned a Financial Crisis Into a Successful Business

You want to transition to a new position or industry.

After you spend some time in a job, you may discover that it’s not for you. Maybe the work doesn’t interest you. Or you don’t like the hours or the stress it brings. No matter what the reasoning, you may want to transition to a new position or industry and have to take a pay cut.

Vicki Cook was an assistant principal at a school earning $80,000 per year. She worked 50 to 60 hours per week, but wanted a job that gave her more free time and allowed her to focus on her health. So she took the plunge and accepted a position as a college professor for a salary of $55,000.

The 40% pay cut came with a much lighter workload and more flexibility.

“I have absolutely no regrets at all,” she said. ”I had saved enough money and diversified my income streams (with real estate investing) so that our budget could easily support a lower salary from my career choice.”

You want to pursue your passion.

When you work full time, you spend most of your time at work. If you’re not passionate about or fulfilled by your job, taking a pay cut to do something you love may be a good idea.

Alina Adams is an example of someone who settled for less money to follow her passion. She went from a high-paying corporate position at Procter & Gamble to the instability and lower pay of a freelance writer.

She wanted a job that gave her more time to take care of her three kids, and allowed her to spend her days doing something that she actually enjoyed.

“The pay cut was definitely worth it because I was able to show my children that it’s more important to pursue your passion than to make a lot of money,” Adams said.

You want to land a higher-paying job in the future.

Some people take a pay cut because they believe their new role will set them up for a higher-paying, more fulfilling career in the future. For example, Eryn Lueders took a job at a tech startup as a Digital Marketing Specialist. Although it paid 15% less than her previous position, she knew it would give her the hands-on experience she needed to earn more down the road.

“Taking this job was a step back in both title and pay, but not in the responsibilities or skills necessary to do the job well,” Lueders said.

After about a year, she received a raise that paid more than the position she left. She doesn’t regret this move because the growth and advancement she wanted actually came. Plus, she quickly made up the money she lost.

Related: How to Write a Resignation Letter that Leaves a Good Impression

When Taking a Lower Paying Job Is a Bad Idea

Sometimes, accepting lower pay isn’t a financially smart decision and can have drastic consequences for your future.

You don’t want to adjust your lifestyle.

Lindsay Martinez, Certified Financial Planner at Xennial Planning LLC, said you have to financially prepare to take a lower-paying job. If you’re not willing to adjust your lifestyle to account for a pay cut, you may be better off staying at your higher-paying job.

“You should not be taking money from your 401(k), racking up your credit cards, or relying on personal loans if you take a pay cut,” Martinez said. “It’s acceptable to do these things in emergency situations, but not because you’re making the personal choice to accept a lower wage.”

If you’re a natural saver with little to no debt, have a 6-month emergency fund, and have a spouse who can help you financially, taking a pay cut is much more realistic.

You’re nearing retirement.

If you’re early in your career and can handle the financial ramifications, it may be worth taking a lower-paying job if you’re going to learn valuable skills that will boost your resume. A pay cut may also be a smart move if you have young children and need a more flexible position that allows you to care for them.

But if you’re older, taking a pay cut can keep you from meeting your retirement goals. If you’re paying your child’s college tuition or taking care of your parents, then you need more income, not less.

“If you’re in the latter portion of your career or nearing retirement, then it’s wise to prioritize income over other factors in a job,” said Biron Clark of CareerSidekick. “You should avoid taking a lower salary unless forced to do so.”

You have benefits you can’t give up.

Some high-paying jobs come with benefits that can be difficult to find elsewhere. Your company may cover 100% of your health care costs, match all of your retirement contributions, or reimburse you for earning your Master’s.

If you have a job like this, you may want to think long and hard before choosing a position without these types of benefits. This is particularly true if you have a costly health condition that requires excellent insurance coverage and have no other way of getting these benefits.

Related: How to Quit Your Job the Right Way

Taking a Pay Cut Can Be a Wise Decision

In most cases, you can benefit from taking a pay cut. Just make sure you exchange the lower pay for something in return. It’s also smart to make a budget before you switch jobs so you know what you’re giving up. Try living on the lower income for a couple months to see if it’s sustainable.

If you’re unfulfilled by your job, wish you had more time to pursue your hobbies or interests, feel stressed out by work, or want to gain some valuable experience, a pay cut may be the ultimate solution.

The post When Is It Okay to Take a Pay Cut for a New Job? appeared first on DollarSprout.

It requires discipline, dedication, and repeated sacrifice. It means setting short- and long-term financial goals and then following through on them. Unfortunately, these are things with which the majority of Americans seem to struggle.

Research, however, suggests that simply writing out a list of financial goals makes a person 42% more likely to achieve them._[1]

Although some people do win the lottery or come into a large settlement, odds are that person won’t be you. Don’t wait for financial success to come knocking. Affording a house, the kids’ college tuition, and, ultimately retirement, will most likely be on you.

Lucius Seneca’s quote is as true today as it was in ancient Rome: “Luck is a matter of preparation meeting opportunity.” It means that every person is responsible for creating his or her own fortune.

Opportunities for success are more likely to come to those who have a clear financial roadmap and who set realistic financial goals.

18 Smart Personal Finance Goals to Pursue This Year

Whether the objective is to get personal finances back in check or to save more money, consider the following examples of personal financial goals. Many of these can be started immediately.

1. Build an emergency fund.

A money goal won’t be worth anything unless you first set aside funds in case of an emergency. Since it’s impossible to know what life will bring, keep a little extra stashed away at all times.

According to Certified Money Coach Megan Robinson, an emergency fund is “a savings account set aside specifically for those ‘just in case’ situations.”

Most experts recommend keeping at least three months’ worth of living expenses in separate high-interest savings account online – more, if possible. Don’t let an unforeseen expense ruin an otherwise healthy financial outlook.

2. Boost a low credit score.

One of the most popular items on this list of financial goals is to improve a low credit score. That’s not as hard as it might sound – but it is a long-term financial goal that is going to take some time.

First, check your credit score for free. Once you know where you stand and what’s impacting your credit score, you can work on improving it.

These four things can help raise a credit score quickly:

1. Pay off a chunk of a credit card or loan balance to reduce the utilization ratio (UR)
2. Ask for a limit raise – ironically, this can also reduce the UR
3. Correct report errors – according to the FTC, nearly 20% of credit reports contain errors
4. Join another cardholder’s existing account (this further reduces the UR, and that person’s score may give you a boost)

3. Get a side hustle.

In our 2021 side hustle study, we found that 76% of Americans think side hustles will continue to get more popular in the new year; with 14% now reporting they’re making over $1,500 per month with their own._[2] That’s a decent amount that could put a big dent in the average person’s monthly bills.

Before you choose a side hustle, think about how much money you want to make and the amount of time you’re willing to commit. A side gig that brings in some extra spending money is very different from one that can grow enough to replace your full-time income.

If you’re just looking to bring in some extra money for now, then consider a side hustle that’ll help you make money fast.

On the other hand, if your goal is to eventually replace your full-time salary, then you’re probably better off with a more long-term venture, like freelance writing, working as a virtual assistant, or launching your own affordable online business. 

4. Read three personal finance books.

Make it a short-term goal to read a few good personal finance books. If you’re not much of a reader, then listen to some personal finance podcasts instead. Knowledge truly is power.

5. Automate your investing.

Technology has come a long way in the 21st century. Simple smartphone apps like Acorns (which is currently offering a free $5 signup bonus) are completely automated, and help take care of investing and saving.

If you’re looking for more robust options, check out our list of the best investment apps.

6. Be health-focused.

According to Investopedia, the average American spent $10,671 on healthcare in 2020._[3] That is an incredible amount of money to pay to stay in good health. But choosing a healthy lifestyle can actually reduce overall spending, as well as being a wise physical choice.

Those who are hoping to lose a few pounds should check out HealthyWage, which will pay users to lose weight. The only catch is that customers will owe the company if they are unable to reach their health goals. People who are looking for a little extra motivation could win up to $10,000 through this app.

7. Get out of debt.

It is vitally important to focus on getting out of debt. This doesn’t mean that everything else on a list of financial goals is unimportant, but debt can be truly damaging to the goal of achieving financial independence.

Don’t become a victim to a vicious loop of minimum payments and accrued interest. Putting off the bills will only make them harder to eliminate – and worse yet, be ruinous to a credit score, in the meantime.

Jeff Rose, a certified financial planner at Good Financial Cents, has listed some no-brainer reasons for getting out of debt:

• “Getting out of debt means that you will have full control over your income
• “It will leave you with more money for savings and investing – and even more for spending
• “It will make it easier to quit a job you don’t like
• It will free your mind of the worry and stress that come with debt.”

8. Keep accurate records.

If merely writing down your financial goals makes you 42% more likely to achieve them, it goes without saying that accurately tracking spending creates a further sense of accountability. Creating a money journal of sorts will help you track past successes (and failures), learn from past mistakes, and identify areas for improvement.

Plus, tracking goals will then be a breeze because you have reference points and objective data from which to draw conclusions.

9. Create (and follow) a budget.

According to a recent Gallup poll, 32% of people have actually attempted to create a budget._[4] What’s stopping the other 68%?

Taking the time to categorize spending can be a huge eye-opener.

A good budgeting guide is the 50/20/30 rule. According to this plan, 50% of all regular income should go toward essential spending (rent, transportation, utilities); 20% should be put toward personal financial goals (saving or paying off debt); and 30% is flexible (expenses that can vary from month to month, like eating out, groceries, shopping, hobbies, entertainment, or gas).

10. Avoid large, unnecessary purchases.

Stop making large, unnecessary purchases. Be willing to use an older phone, for example, instead of buying the new one as soon as it comes out. Define what is important and cut out the rest, instead of adding to your rising debt. Saying no to a want that isn’t a true need is hard, but is the sort of discipline that will truly change your financial outlook.

Pro tip: If/when you are shopping online from your computer, make sure you are using the DollarSprout Rewards cash back browser extension. This is a free tool for Chrome and Safari that hooks you up with up to 25% cash back at over 15,000 retailers. 

Related: 10 Reasons You’re Always Broke (And How to Fix Them) 

11. Save on utilities.

Just because everyone needs to spend money on utilities doesn’t mean that utilities have to be high.

Look for easy ways to save on electricity by slashing those heating and cooling costs. Reduce your cable bill and get rid of infrequently used paid channels like HBO or sports packages.

If you don’t want to spend time negotiating your bills, try a service like Trim that does it for you. Once you link your accounts to Trim, the app will track your spending, negotiate cable and internet bills on your behalf, cancel your unwanted subscriptions, and more.

Related: Advice from 3 People Who Use Trim to Save Hundreds

12. Learn a new skill.

Accepting the status quo will never help to change negative circumstances. You have to want change enough to make it happen. And learning a new skill will provide just that opportunity.

Improve your skills at work – or switch to a new area of expertise entirely. There are many opportunities to learn a second skill at home while holding down a full-time job. This can be time-consuming and will require a lot of hard work, but it will pay off.

Example:

Caitlin Pyle of Proofread Anywhere made more than $43,000 by working as a freelance proofreader in her spare time. She even had the time (and money) to go on several fun vacations when she wasn’t working.

After she found success in that line of work, she decided that she wanted to teach others how to do the same thing; so she started up Proofread Anywhere. Learn more about Caitlin and her story in our guide to getting started as a proofreader.

13. Set up appropriate overdraft protection.

Not much is more reckless than over-drafting and having to pay a fine. Avoid this loss by spending 10 minutes at the bank and linking your savings and checking accounts to provide a little added cushion in case things get tight.

14. Set a loan in repayment to autopay.

Financial automation is a beautiful thing. It doesn’t make mistakes. It takes the human (emotion-based) part of money attachment out of the equation and operates with objective efficiency.

Lenders often offer a reduced interest rate on loans merely for setting up auto-pay. Rather than write a check to the lender each month, they will automatically deduct the loan payment from a linked checking or savings account.

15. Automate your savings.

Employers almost always offer the option of splitting direct deposit payments into multiple accounts.

Draft a budget and determine the amount to place into savings; then ask human resources to allot a certain percentage of each paycheck to a high-yield savings account that is separate from the traditional spending account.

The reduced ease of access to the money will help resist the urge to spend.

16. Set your bills to autopay.

Setting bills to auto-pay is a great way to save time, money, and hassle – provided a good budget has been put in place to accommodate it.

This will mean no more utilities’ threatening to cut services for missed payments, as well as fewer credit hits for forgetting to pay monthly credit card bills. Knowing that bills are paid on time – and in full – every month will offer great peace of mind.

An hour’s worth of work on this could eliminate a lifetime of headaches. And, since many companies often incentivize users to sign up for auto-pay by advertising reduced rates and discounts on future products, why not get a discount for doing it automatically?

Every little bit counts.

17. Eliminate expensive habits.

Alcohol, tobacco, firearms, and gambling are four things that many people just can’t avoid. They are all addicting to various degrees, and are all pretty expensive (per the ATF, the average American household owns 8.1 guns).

Check out these surprising figures:

• The average smoker spends more than $2,000 per year ($5,000-plus in New York).
• The average adult spends more than $500 per year on alcohol.
• American households spend $162 yearly on lotteries on average; for low-income households, that figure is $289, and for those who make less than $10,000, it’s $597, or approximately 6% of their yearly income.

If money seems to be disappearing at an alarming rate, start by looking at this category to see what can be eliminated.

18. Get more organized.

Tools like Personal Capital track and organize finances while providing the most advanced technology in personal finance. Get a transparent view of all accounts through the Personal Capital Dashboard, coupled with expert advice and financial planning services – all in real time.

The biggest benefit to a tool like this is that it provides a great overview of the individual’s overall financial health. From net worth tracking and fee elimination to retirement planning, goal achievement becomes a lot easier when it’s possible to eliminate separate logins for each account.

The most important takeaway from this discussion is this:

Merely writing down your money goals makes you 42% more likely to achieve them.

Drafting a list of financial goals is a great way to prepare for financial success. Stop wishing that finances were better, and actually do something to make them so by setting different types of financial goals.

Related: 74 Creative Ways to Save Money On Everyday Life 

The post 18 Financial Goals to Set and Achieve This Year appeared first on DollarSprout.

It’s difficult to get to work, school, or raise children without a safe and dependable vehicle. And in many areas, public transportation isn’t available, affordable, or reliable, making a car the only plausible way to get around.

Many people, like single moms, low-income workers, and disabled individuals, find themselves needing a car but unable to afford one. Fortunately, there are organizations that recognize this and try to bridge the gap by giving away free cars.

NEW: Get free cash back online with DollarSprout Rewards:

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Does the Government Have Free Vehicle Programs?

There are a number of government programs and grants available to help cover your basic needs if you can’t provide for yourself or your family. Unfortunately, there isn’t a way to get a free car from the government. You’ll need to go through private charities, organizations, or individuals to find one.

Even though you can’t get a free car from the government, you can receive assistance with food, healthcare, housing, and, in some cases, financial support. Help covering these basics may free up room in your budget to save for your next vehicle, especially if you’re able to get a grant to help offset the cost or find special financing for low-income households.  

If you are on government assistance, then you need to be careful. Receiving a free car could count as “additional income” and make you ineligible for government support. You don’t want to get disqualified from your food or housing assistance, so check the income and asset rules and regulations for those programs before accepting a free car. 

Related: 25 Programs to Get Free Money from the Government

Charities That Donate Vehicles to Disabled or Low-Income Individuals

While these organizations receive thousands of applications a year, and you do have to demonstrate financial need to qualify for one, if you do, it can make all the difference in your financial situation. Check the eligibility requirements of each organization and do some research to find the one that is the best fit for your needs. 

1. Cars4Heroes

Cars4Heroes is a 501(c)(3) that provides free used cars to first responders, military veterans, and their families who can’t obtain transportation for themselves. To apply, you need to fill out an application with information including your years of service, the branch of the military or first responder you served in, why you need the car, and some other personal information. 

After you apply, your application is kept on file for three years, so if you don’t receive one on your first try, you might at a later date. 

Related: 26 Practical Ways to Make $500 Fast

2. Cars4Christmas

Cars4Christmas is operated by the same people who operate Cars4Heroes, but it provides free and basic transportation to all individuals rather than exclusively military veterans and first responders. The organization helps people whose lives have been turned upside down by illness, death, tragedy, disability, and even natural disasters.

They receive over 20,000 applications per year, and give away around 20 vehicles, based on donations. Even though the odds are slim for you to receive a car through this organization, it’s still worth applying. You might get connected to a private donor who takes an interest in your story or find connections to another organization that can help you with a car.

3. 800-Charity Cars

1-800-Charity works with FreeCharityCars to provide free cars to people in need. The former focuses on accepting donated cars and raising the funds to provide free cars to people in need while the latter is where those looking for a car can apply.

FreeCharityCars is currently overwhelmed with applications and not accepting new ones, but check their website periodically to see when applications open again. However, for those looking to donate a car, you can still do that. 1-800-Charity offers free towing and make sure that 100% of the donations go towards helping people.

Cars that don’t work will be sold or repaired to working condition and given away.

4. OnlineCarDonation.org

Part of the WithCauses.org network, Online Car Donation is another charity providing free cars to those in need, including: 

• Domestic violence victims
• People with disabilities
• Homeless families living in shelters
• Families trying to become self-supporting (getting off government assistance)
• Military families and veterans
• Other non-profit organizations

Their application process is simple. You only need to provide some basic biographical information and a description of your need. After you submit your application, it is reviewed by their staff who also look at the available inventory to determine if they can help.

If you are selected for a free car, you will be contacted within 30 days. If you do not hear from them, they encourage you to reapply. 

5. OnlineCarDonation.com

Online Car Donation aims to provide free cars to as many people and families in need as possible. If you want a free used car that is reliable, this is a great option. They also try to give away trucks or vans, and are sometimes able to provide modified vehicles for those with special needs.

You can apply for a free car online, and they request that you fill out the application as completely as possible so they can make the best determination. They will notify you within 30 days of receiving your application if you were selected. If you do not hear from them, they ask that you do not call and instead apply again to be reconsidered. 

6. Vehicles for Change

Vehicles for Change is a charity that partners with social service agencies to help those who are on the road to self-sufficiency but need a vehicle to gain access to job opportunities. 

If you want to apply for a donated car, the organization has a lengthy list of requirements that includes: 

• Having a verifiable job offer or working at least 30 hours a week
• Having a driver’s license in the state in which you reside
• No DWIs or DUIs on your driving record
• Ability to afford the ongoing cost of car ownership (insurance, fuel, repairs, etc.)
• Ability to cover the fees for taxes, tags, and title

Vehicles for Change also operates a car award program for those who are members of their partner social service and job readiness agencies. The program provides vehicles to qualifying low-income families and guarantees low-interest loans. Note that you cannot apply for this program; your caseworker or cooperating agency must apply on your behalf. 

If you live in the states they partner with (Maryland, Virginia, and Michigan), take some time to explore the links on the Vehicles for Change website. They list a number of additional options for finding a free or cheap car in those areas. 

7. Good News Garage

Good News Garage is another location-specific option for finding free cars, serving those in need in Massachusetts, New Hampshire, and Vermont. If you’re interested in their state-funded Wheels to Work programs, you’ll need to check with each state’s criteria to see if you qualify. 

They also operate a JumpStart program to provide “refurbished, donated vehicles to qualified working individuals at an affordable, subsidized cost,” and it was created to help those who don’t qualify for Wheels to Work. Unfortunately, JumpStart is not accepting new applications at this time, but you can periodically check the website to see if they’ve opened up the application process. 

Additionally, they provide an “Other Transportation Resources” page, which shares links to other organizations that can help you find free or affordable transportation options. 

8. Working Cars for Working Families

Run by the National Consumer Law Center, Working Cars for Working families strives to ensure that working families “can get, keep, and use a reliable car at fair terms.” They collaborate with a number of different organizations to improve public policy, data collection, and promote nonprofits that help struggling families secure transportation. 

They have a searchable database you can use to find programs in your area that might be able to provide you with a free or low-cost vehicle. You will need to review the requirements of each program to find out if you’re eligible and what the application process looks like. 

Other Ways to Get a Free Car

If you don’t meet the criteria for the charities above, you might need to get creative in how you find yourself a car. These options will require you to get out of your comfort zone and ask people in your community or those closest to you for help.

Related: Need Money Now? 40 Ways to Earn Cash When You Urgently Need It

9. Contact your local church

Many local churches have a line item in their budget for benevolence and could be one way to get a free car now. Churches have helped people whose homes have flooded, roofs have caved in, cars have stopped working, or for members who are down on their luck.

This option will work best if you’ve been involved with the church before coming to them in need. If you also need free clothes or help with food or utilities, your local church can likely help you.

10. Request a donation from a local dealer

Local dealerships usually don’t donate cars directly to individuals, but you may get lucky if they have an older model or a trade-in that they believe will sell. If you’re facing hard times, try writing a letter to the manager of your local dealership explaining your circumstances.

Try doing this at the end of the year during the holiday season when people are feeling more charitable. The dealership may be more open to helping you out, especially if you’re willing to share your story publicly.

11. Find a job that provides a car

Although you might have to do a little searching, there are jobs that will provide you with a vehicle, and some of those might let you use it for personal reasons. Jobs like service technician, in-the-field social worker, utility and cable worker, and truck or delivery driver are all options to consider.

If you do find a job with this perk, make sure you check with your employer about their rules for personal use. Find out if you can take the car out of state, who’s responsible for routine maintenance, gas and tolls, and if you’re allowed to have passengers. 

Related: 13 Ways to Make Money Delivering Food, Packages, and More

12. Ask friends and family for assistance

If you’re having a hard time finding a free car from charities or social service agencies, consider asking your friends and family for help. It might be a big request to ask people you know for a free car, but they may be able to loan you a vehicle or sell you one for a low price. 

If you’re handy, you might even offer to fix up someone’s old car in exchange for them selling it to you at a reduced cost.

13. Check Craigslist

People often try to get rid of old, broken-down vehicles on Craigslist or Facebook Marketplace. Many times it’s more work or not worth the time for them to sell to a dealer, but a private sale can net them a few hundred dollars. If you’re good with cars or know someone who is that can assist you, this might be one way to get a free or cheap used car.

If the car is completely unsalvageable, you can always sell it for parts or scrap metal and put that money towards a car. Just make sure you’ll get more than you pay before considering this option.

14. Check Goodwill

When most people think of Goodwill, they think of clothes, books, or baby items. However, people are also able to donate their old cars. You can call your local Goodwill to see if they have any available or check out their car auction inventory.

Through the online auction, you can live anywhere in the country and purchase a car from Goodwill. You will need to arrange transportation to pick up the car you purchase; they do not ship or transport cars to you. 

15. Start a GoFundMe

GoFundMe is another option for buying a car for cheap. If you feel comfortable, share your story about how you ended up on hard times. Emphasize how buying a car, or getting a free car, will help you start fresh. Be honest about the car’s impact on your life, but don’t stretch the truth. You don’t want to take advantage of people’s generosity. 

You can also post a request for donations and grants on sites like ModestNeeds.org. Make sure you read their eligibility requirements thoroughly before submitting an application.

A Free Used Car Could Change Your Financial Situation 

When you’ve fallen on hard times financially, it can often feel like you’re stuck in a cycle. You don’t have the money to buy a car, and without a car, you can’t get to work. You’re stuck in a loop.

Finding a cheap or free car may be the solution you need. With a bit of research and hard work, you might find a free car that helps break the cycle and change your financial situation. The jobs that were once out of reach become possible with access to a vehicle.

But remember that even a free car isn’t truly free. There may be parts you need to fix or refurbish. Furthermore, make sure you have money to cover essentials like car insurance, properly registering the vehicle, routine car maintenance, and lastly, cash for gas and tolls. 

The last thing you want is to get a car but have no means to keep it running.

The post 15 Places to Get a Free Car for Those in Need appeared first on DollarSprout.

And the U.S. is still the only first-world country that doesn’t mandate paid maternity leave on a federal level. What’s even more overlooked is the small things that women pay more for just because they’re women.

These financial disadvantages are widely referred to as the “pink tax”.

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What is the Pink Tax?

The pink tax is the tendency for products and services marketed to women to cost more than those marketed to men.

The New York Department of Consumer Affairs (DCA) compared the prices of almost 800 different male and female versions of products. From baby onesies to adult diapers, the study found that women’s products cost 13% more than comparable men’s products._[2]

Hey Ace, tell me what’s wrong with this picture. @AceHardware #pinktax pic.twitter.com/l4kqZUu6ky

— Tom McDermott (@TomKatMPLS) August 13, 2018

That means that not only do women make only 85 cents for every dollar a man makes, but gender pricing causes them to pay an average of 13 cents more per dollar for basic necessities._[3]

Why does a “gender tax” exist?

Part of why the pink tax exists is from data that shows women enjoy and do more shopping than men._[4] Because women are doing more shopping, they’re buying more female-centric products and companies drive up prices based on supply and demand.

Another part comes down to logistics. Female military uniforms cost more than male uniforms because of lower production quantities and higher material costs._[5] And the average tariff on imported women’s clothing is 15.1% compared to 11.9% for men’s clothing._[6]

There’s also the literal tax on female hygiene products. Even when legislation is introduced that would eliminate it, it’s difficult to pass due to the revenue it would cost the state.

When New York eliminated its tax on menstrual products, the state lost $14 million a year in tax revenue._[7] And in California, former Gov. Jerry Brown vetoed a bill in 2016 that would have eliminated the state’s tax on menstrual products for fear that the state would lose $20 million in annual taxes._[8]

Some people also argue that the pink tax isn’t real or exists because women’s products have more ingredients, use more expensive components, or require more skilled designers to create.

That myth has been consistently debunked by product researchers who’ve found many items are the same or have variances so slight they wouldn’t warrant a significant price difference.

Pink Tax Examples: What Products & Services are Affected?

Whether you’re buying safety gear or ordering office supplies, every industry, service, and product is affected by the pink tax in some way.

Clothes & dry cleaning

The DCA study found that clothes for adult women cost an average of 8% more than similar men’s garments. The greatest disparity was in shirts. For every two analogous shirts from the same retailer, the women’s cut version cost an average of 15% more than the men’s. Even school uniforms for girls are more expensive than those for boys._[9]

And as a woman, if you want your clothes dry cleaned you’ll also pay more. A study in Gender Issues found that women pay an average of $3.95 per shirt while men pay $2.06._[10]

 

 

 

 

 

 

View this post on Instagram

 

 

 

 

 

 

 

 

 

 

In case y’all didn’t know, women’s things cost more than men’s. Take these tops for example. The left is men’s. The right is women’s. I took the screenshots myself. It makes no sense. Women’s clothing uses less fabric. It’s frustrating. #axthepinktax @americanaf

A post shared by j_warren90 (@j_warren90) on Jun 8, 2019 at 8:23am PDT

Personal hygiene

56% percent of all personal care products marketed for women are more expensive than those marketed toward men. Shampoo and conditioner alone cost 48% more than comparable men’s products.

Women also have the added expense of having to buy makeup and specialty hair care products. This is an expense that some argue is optional, but studies have found that women who wear makeup make more money._[11]

 

 

 

 

 

 

View this post on Instagram

 

 

 

 

 

 

 

 

 

 

#axthepinktax

A post shared by Tessa Elizondo (@tessaelizondo) on May 6, 2019 at 7:40pm PDT

Healthcare and insurance

Medically necessary products such as prescription drugs and braces are tax-exempt as are some predominantly male products like Rogaine and Viagra. Yet, 35 states still charge sales tax on tampons and pads._[12]

“Pads and tampons are an essential feminine hygiene product for more than half the population, so one would think it would be a bigger issue,” said Katie Utterback, host of the Talk Wealth To Me podcast.

Women also have extra healthcare costs that men don’t have to think about. This includes things like birth control, pain relievers for menstrual cycles, and breastfeeding supplies.

Before the Affordable Care Act, women paid monthly premiums up to 50% more than men for healthcare coverage due to the fact they have babies, live longer, and generally visit the doctor more often._[13] And women are still less likely to be insured than men, most likely because their incomes tend to be lower.

Even with insurance, Tana Williams experienced the extra cost of being a woman when she got the bill for her gallbladder removal and found an unexpected $111 charge for a pregnancy test.

“I didn’t think twice about questioning if I had to have the test and did as requested,” Williams said. “I didn’t think about it again until I got the final bill for the surgery.” At that time she tried to negotiate it off the bill but was unsuccessful.

When getting other types of insurance, women can pay premiums up to 29% less for life insurance than men of comparable age, but pay an average of 40% more for disability insurance.

Toys

The pink tax isn’t reserved for adult products. The DCA study found that girls’ toys and baby items are consistently priced higher than those for boys.

Vehicle repair & transportation

Getting around town can prove to be more expensive for women as well. Researchers at Northwestern found that women who had no idea what a radiator replacement should cost were quoted a higher price than men who also didn’t know._[14]

Women who primarily use public transportation are likely to spend an extra $26 to $50 per month on alternative modes of transportation at night to avoid harassment._[15] If the woman is a mother with multiple children or is a caretaker to elderly relatives, she can spend up to $100 per month in addition to regular travel.

What Places Charge the Pink Tax?

The pink tax is everywhere, in-store, online, domestic, and international. It’s even in your home. Kara Perez of Bravely Go is a woman working in a male-dominated field. During the time in the morning a man could spend sleeping, meditating, or arriving to work early, she has to spend it on her appearance.

“The time I take to ‘get ready’ because the grooming expectations are different for women than men, that’s the pink tax that I pay,” Perez said. “My time is literally taxed.”

Related: How to Overcome the Challenges of Being a Female Breadwinner

How Much Does the Pink Tax Cost Women Annually?

A 13% markup doesn’t sound like a lot, but it adds up when it’s on almost everything you buy. A 1994 study from California estimated that women pay an average of $1,351 more per year on female marketed products and services._[16] With inflation, that number today would be over $2,300 annually.

That’s almost $200 per month a woman can’t put toward saving, paying off debt, or investing for retirement.

How To Avoid the Pink Tax and Save Money

If a woman wants to pay a premium for ruffles, bows, and glitter that should be her choice, but not her only choice. The solution to the pink tax isn’t to take these things off the market but to prioritize making identical products cost the same, no matter what color the box is.

Lowering the cost of being a female consumer won’t start with manufacturers, it has to begin with us.

Compare prices & products

You already know checking the price per ounce (or unit) can help you save, but you should also compare the products in your cart with similar versions for the other gender.

Don’t automatically assume the men’s version is cheaper, sometimes you’ll find it’s the same price or more expensive. Other times you may find an ungendered version of the product for less than both. Do your research so you can choose the lowest-priced items and show companies where you’re willing to spend your money.

Shop retailers that don’t charge a pink tax

Because prices are set by manufacturers, there are still very few brands that have chosen to absorb the price difference to eliminate the pink tax on their products. Companies also know that if they raise prices on comparable men’s products, they’ll lose male buyers.

That’s why you should shop with companies that have been bold enough to eliminate the pink tax. This will encourage other brands to do the same. Boxed was one of the first brands to eliminate its pink tax and offer select items at the same price no matter the gender they’re marketed toward.

Europen Wax Center, EWC, is a chain of hair removal salons in the U.S. It started the #AxThePinkTax campaign to bring greater awareness to the effect the pink tax has on the majority of its clients and employees. EWC charges the same prices for services on men and women.

The pink tax has even spurred new businesses. Billie, a subscription shaving and body care company, was started out of frustration because women’s razors were so much more expensive than those for men. Billie now offers razors, body wash, and more at prices comparable to men’s razor subscription services.

Related: Should Chores and Allowance Go Together?

Check to see if a company is EDGE Certified

EDGE Certification is an assessment methodology and business certification for promoting gender equality in the workplace. More than 200 organizations in 50 countries are EDGE certified including L’Oreal, Stella McCartney, and Uber.

By openly choosing companies with EDGE certification you’re telling other companies that not only is eliminating the pink tax important, but equality in the workplace is also essential to earning your business.

Buy reusable products and avoid others

Purchasing reusable feminine products not only saves you money, but it’s also better for the environment. A Diva Cup, a reusable menstrual cup, costs $25 and lasts for a year or more. There are also reusable pads and menstrual underwear that eliminate the need for pads and tampons.

You can also reuse toys and clothes. Get the styles (and colors) you want for far less than retail by shopping secondhand or trading with friends. You’ll also be fighting the fast fashion industry and keeping more fibers and plastic out of landfills.

Sometimes you should avoid certain products completely. Using fewer makeup products, hair care goods, or accessories may not be the ultimate solution, but it will save you money. It may also make an impact on the items companies produce and possibly the prices they charge for them.

Use coupons and sales

If there are products you just can’t live without, learn to save by couponing or commit to only shopping when the item is on sale.

You don’t need to deprive yourself to make a statement. There are plenty of discounts available on sites across the web that will eliminate the pink tax from your favorite product.

Raise awareness

When you see the gender tax at work, post about it on social media and tag the brands and stores perpetuating it. Sometimes stores are unaware of the price discrepancy and will change it once it’s brought to their attention.

You can also raise awareness by educating people not affected by the pink tax.

“I used to have my boyfriend buy me specific items and cost compare them to his own, so he could see the difference,” Perez said. “People who are not affected by things are much less likely to act on them. But if you can show someone in your life that it’s real and that it’s impacting you, they’re more likely to support the cause because they care about you.”

The Pink Tax is a Problem for Everyone

Fortunately, there’s proposed legislation that might eliminate the pink tax. This gives men and women the opportunity to both support a bill that would be a huge step forward for gender equality.

“We need legislation to protect the financial interests of women not just when it comes to pads and tampons, but on all the things we use our money to purchase,” Utterback said.

“A young girl should not have to spend more on a school uniform top simply because she was born female. Our argument to #AxThePinkTax isn’t about punishing men, it’s about giving women a fighting chance economically to live their best life.”

Related: 20 Best Business Ideas for Entrepreneurial Women 

The post The Pink Tax: Why It Costs More to Be a Woman appeared first on DollarSprout.

Even with so many planning holiday budget cuts this year, between gifts, office parties, travel, and other obligations that come up around this time, it’s easy to let your spending run amok.

Here are five common money mistakes to avoid this holiday season so you don’t start 2023 with any financial regrets.

1. Not setting a maximum gift budget

Have you ever started shopping for the first couple of people on your list, only to realize after buying the first few gifts that…this might cost a lot more than you expected? We’ve all been there.

A $100 gift here, a $50 gift there, tack on a couple of $25 gifts, and just like that you’ve already spent $200. (Oh, and you still have over 10 people on your list to buy gifts for.) And of course, some of the closest people to you on your list will likely be receiving more than one gift from you. It all adds up — fast.

Solution

1. Before buying any gifts, make a list of everyone that you plan to buy presents for.

2. Set a maximum Christmas budget for your total gift-giving. While there is no “right” answer here, try to use your best judgment.

3. From that total, start roughly allocating a budget to each individual person. It doesn’t need to be perfect; this is meant to be a ballpark figure.

4. Start researching gifts online for each person that falls within their price ranges.

2. Using loans or credit cards to buy gifts

If you haven’t saved anything for your holiday shopping — or if you haven’t been able to save — it may be tempting to take out a personal loan or charge your shopping on credit cards to get you through the season.

While this is sometimes unavoidable, often consumers are too quick to take on this extra financial burden. Using a personal loan, cash advance, payday loan, or racking up more credit card debt can be a costly mistake.

Between exorbitantly high interest rates, fees, and a solid hit to your credit score, you should make a serious effort to exhaust all other money-saving options before taking on more debt for the holidays.

Solution

1. Get creative with your gifts. Handmade gifts, “coupon” vouchers for fun (and free) experiences together, and other sentimental gift ideas can mean much more to someone than a gift you buy from a store.

2. If you do take on debt, make a goal to pay it all off by the end of January. The longer you let your debt linger, the more interest charges will accrue on your balance.

3. Plan ahead so this doesn’t happen again next year (see below).

3. Not saving up for gifts throughout the year

Bankrate reported in a 2019 survey that nearly 60% of Americans stress out about overspending during the holidays._[2]

To alleviate some of that stress, consider making holiday spending a regular line item in your budget for all 12 months of the year. That means setting aside a certain amount of money each month that is specifically meant to be used for year-end holiday spending.

For example, let’s say you want to spend $1,000 on gifts next year. Instead of scrambling to make it work once December comes around, set $83.33 aside each month (preferably somewhere you won’t touch it, like a sinking fund specifically for holiday spending).

Solution

1. Determine how much you plan on spending during the holidays for next year.

2. Divide by 12 months to determine how much you need to save each month throughout the year.

3. Set up an automatic monthly draft from your checking account to the savings or money market you are holding your “spending fund” in.

4. Splurging a little too much on yourself

According to a 2020 Deloitte retail survey, 51% of Americans reported that they end up buying themselves gifts over the holidays._[3] If you are out shopping and see something you like, it can be tough to say no to yourself.

After spending your hard-earned money on friends and loved ones, it’s easy to convince ourselves that we “deserve” a little something special for ourselves. Be careful, though. A simple misstep like this one can easily lead to more self-indulgent spending and can bust even the most well-planned holiday budget.

Solution

1. Practice the “Seven Day Rule”. If you see something you like, don’t make a purchasing decision for at least seven days. In most cases, you’ll find that your desire for that thing has gone away.

2. If you still want it, make an honest assessment if you can afford it with your current budget (and not take money from your separate gift shopping funds).

3. If not, set up a savings plan to accumulate the funds you need.

5. Jumping at every great “deal” you see

It seems to happen every time we step outside the door (or open up the laptop).

A sale.

Maybe it’s a 25% off sign for a cute handbag or a BOGO deal at Starbucks. It’s always something, and we often feel like we just can’t pass it up. While everyone loves a good bargain, companies are very skilled at taking advantage of human psychology to pressure us to buy things we don’t need — and sometimes buy things don’t even want.

Solution

Before you buy something that is on sale, stop and ask yourself the following:

1. If this wasn’t on sale, would I still want it?

2. Where will I put it? (Or when will I wear it, use it, etc.?)

3. How will I pay for it?

4. Is there a better way to use the money I’m about to spend on this?

Related: 5 Signs You May Have a Shopping Addiction 

Remember Your Long Term Financial Goals

The holidays shouldn’t be about money. There are far more important things to focus on, like spending time with family and friends and creating memories that will last for years.

The biggest gift you can offer anyone is your love, time, and friendship. No material gifts are worth paying interest for, and they certainly aren’t worth derailing your long-term financial goals.

Related: 4 Tips for Paying Off Holiday Debt (And Avoiding It Next Year)

The post 5 Financial Mistakes to Avoid This Holiday Season appeared first on DollarSprout.

According to U.S. Census data, 38.1 million people were living in poverty in 2018._[1]

That doesn’t include the families living above the poverty line who struggle to pay their bills and put food on the table. That means a significant number of Americans rely on public assistance programs and free money from the government to get by.

But how do they find that money and those programs?

While the federal government provides a comprehensive list of programs, the following is a list of some common services and programs that provide free money and other resources.

How to Get Free Money From the Government

The federal government funds several programs to help U.S. citizens with basic necessities. Most of the programs and services are income-based and have other eligibility requirements; but others are available to anyone, regardless of income.

If you need financial assistance, these programs can help.

Government Assistance for Housing

Finding affordable housing is often difficult, especially if you live in a high cost of living area. These government-run housing programs can help keep you in your home.

Down payment assistance programs

If you’re interested in buying a home, but need help with the down payment, there are a number of FHA grants available. Be sure to check the eligibility requirements for each grant, as they vary from program to program and state to state.

You might also be able to get assistance from a VA loan (guaranteed by the U.S. Department of Veterans Affairs) or USDA loan (offered by the U.S. Department of Agriculture) as well.

Affordable housing

There are a number of government programs that help with paying rent, as well as a number of private charities and organizations. To qualify for HUD assistance, you must meet income eligibility requirements as well as guidelines for family size and composition. The type and amount of assistance varies from state to state.

HUD is offering $112M in grants available to expand #affordablehousing for low-income persons with disabilities. AND, for the first time in nearly a decade, new grants to build more! https://t.co/cwONSrqrs4 pic.twitter.com/ykOSnuPCMp

— HUDgov (@HUDgov) October 9, 2019

The three main programs supported by HUD are:

• Privately-owned subsidized housing
• Public Housing
• Housing Choice Vouchers (formerly known as Section 8)

You can find out if you qualify for one of these programs by contacting your local housing authority. Please note that in most areas, the Section 8 waiting list is incredibly long and in some cities, the list is closed to new applicants.

Foreclosure prevention

If you’re struggling to pay your mortgage, The Homeownership Preservation Foundation is a HUD-approved free hotline you can call for help with making your mortgage payment and remaining in your home.

When you call, the hotline will connect you with a foreclosure prevention specialist who will talk with you about your options. You can also use the service if you’ve received a mortgage modification or have been a victim of a mortgage scam.

Education Assistance, Grants, and Loans

If you have student loan debt, or are looking for grants or loans to afford college, there are a number of options for you.

Student loan forgiveness

Under the Public Student Loan Forgiveness program, you’ll need to make 120 payments (10 years worth) and work full-time in an approved field, government agency, or nonprofit organization. If you meet all of the eligibility requirements and go through the lengthy application process, you might have the remaining balance of your student loans forgiven.

There are job-specific forgiveness programs for people in the medical and education fields, and some states have their own specific forgiveness programs.

Not ready to make your first student loan payment? These tips may help: https://t.co/zaRxtDFzFp pic.twitter.com/2Hb9ZkQ3Pb

— Federal Student Aid (@FAFSA) November 12, 2019

There are also organizations you can work with that will forgive some of your federal student loans (private loans are not included), and provide a stipend for future educational expenses.

Some of these organizations include:

• AmeriCorps
• Peace Corps
• National Health Service Corps
• Nurse Corps
• Veterinary Medicine Loan Repayment Program
• Military Financial Aid

Pell Grants

If you are an income-eligible first-time undergraduate student or are enrolled in certain post-baccalaureate programs, you can apply for Pell Grants from the federal government. This is true free money, since it’s awarded as a grant rather than a loan and doesn’t have to be repaid, except under certain circumstances.

To be eligible for a Pell Grant, you must first complete a FAFSA (Free Application for Federal Student Aid) form. In fact, if you’re interested in receiving any need-based assistance including work-study, you must complete this form.

Food Assistance Programs

If your family is struggling with access to food, and you don’t have nearby food banks or food pantries, these programs and services can help.

SNAP

The Supplemental Nutrition Assistance Program, commonly known as food stamps, is the largest program offering free government money for food. Individuals and families meeting the income eligibility requirements receive a pre-loaded debit card that they can use at any grocery store, farmers market, or other retailer that accepts SNAP benefits.

Each state uses its own eligibility criteria for determining the amount of SNAP benefits a family or individual will receive.

WIC

Women, Infants, and Children is another food assistance program for low-income individuals. A bit more restrictive than SNAP, WIC provides food, nutritional education, and health care referrals to pregnant women, breastfeeding mothers, and low-income women with children five years old and under.

The #WIC program is here for you! WIC gives parents and caregivers information, tools, and support to be the parents they want to be. #MomStrong pic.twitter.com/3tFclDoZBW

— National WIC Assoc. (@NatWICAssoc) November 6, 2019

In order to receive WIC benefits, you must meet certain eligibility requirements.

School-based programs

These are some of the food assistance programs are available to school-aged children.

Free and reduced lunch (and breakfast)

Low-income families with school-aged children attending public school or a nonprofit private school or who are in a residential childcare institution are eligible to receive free or reduced school lunches as well as free milk.

To participate in this program, as well as the free breakfast program, families must meet income requirements.

Summer Food Aid

Another government assistance program, the Summer Food Service Program provides free, healthy meals to children in low-income areas during the summer months. Since the meals are served by independent contractors and providers rather than the schools, you’ll need to find where they’re located in your area.

Backpack programs

While this isn’t a government-funded program, it is a way to get food on the weekends. Generally available in low-income areas, backpack programs provide healthy, non-perishable, and easy-to-prepare foods to kids to ensure that they have enough food when school isn’t in session.

There are no standard eligibility requirements to participate in this program, and each one is unique to the community and population it serves.

Government Assistance Programs for Utilities

One of the largest household expenses after food and housing is utilities. Keeping the lights on and heating and cooling your home can take up a huge portion of your monthly income. These programs can help offset those costs and help you save on energy bills.

Low Income Home Energy Assistance Program

A federally-funded program designed to help low-income families with energy costs, LIHEAP provides financial assistance for paying heating and cooling bills.

#LIHEAP helps the most vulnerable American families afford their home energy bills. We urge Congress to #ProtectLIHEAP and our communities. #LIHEAPaction pic.twitter.com/PUZM3IOBy4

— National Grid US (@nationalgridus) February 28, 2019

It can also help with emergency or crisis issues, like having your heat shut off in the winter or weatherizing your home. It doesn’t provide assistance for water or sewer bills.

Weatherization Assistance Program

This is a program run by the U.S. Department of Energy that provides grants to help low-income households reduce their energy costs by improving the energy efficiency and safety of their homes. Families must meet eligibility requirements to receive this type of assistance.

You can read more about the program and eligibility requirements by visiting the Weatherization Assistance Program’s website.

Free Government Money for Healthcare Needs

Whether it’s just you or you have a spouse and dependent children, you need medical care. If you can’t afford your employer’s health insurance options, or you make below a certain income level, there are still ways to have your medical needs taken care of.

Healthcare Marketplace

If you don’t currently have health insurance, you can sign up for a plan through the federal government via The Healthcare Marketplace.

While there is no specific option for low-income families and individuals, if you make below a certain threshold, you’re eligible for a premium tax credit, which would make your medical insurance free.

The website offers a free income screening tool to determine if you’re eligible for the credit or for lower-premium plans. There are also cost-sharing reductions to help offset the costs of certain services.

Medicaid

Often confused with Medicare, Medicaid is a healthcare program intended to assist low-income, pregnant, medically needy, and disabled individuals under the age of 65 so they can receive quality medical care.

Unfortunately, there’s no uniform set of eligibility requirements for Medicaid. Even though it’s a federal program governed by federal oversight, each state is permitted to decide for itself which populations are covered and what the eligibility criteria are.

To participate in the Medicaid program, states must cover certain groups of people:

• Low-income families
• Eligible pregnant women
• Individuals receiving Supplemental Security Insurance (SSI)

In some states, other populations like children in foster care or adults needing home-based services are also eligible for Medicaid. You can learn more about the complete eligibility requirements for the Medicaid program by visiting the Medicaid website.

Millions of children & teens qualify for free or low-cost health & dental coverage through Medicaid & the Children’s Health Insurance Program (CHIP). See if it’s the right fit for your little one: https://t.co/se2cHiueFi#TuesdayThoughts pic.twitter.com/frsavsF3bB

— HealthCare.gov (@HealthCareGov) November 5, 2019

CHIP

The Children’s Health Insurance Program is another option for low-income families to obtain healthcare for their children. It provides low-cost insurance to families that earn too much money to qualify for Medicaid, but can’t afford private insurance.

Unlike Medicaid, CHIP isn’t a free program. There is a small fee associated with enrolling your child in CHIP, but it’s usually no more than 5% of your total income (the amount varies by state).

However, most routine services don’t have an associated copay, and in some states, there is a pre-pay discount. This means if you pay your annual premium in full, you might get a three-month discount. So if you pay for nine months, you can get three free.

Like Medicaid, each state determines its own eligibility criteria, so you’ll need to check with your state to find out if you qualify.

Related: How to Pay Off Unexpected Medical Debt

Government Assistance for Childcare

Finding quality and reliable childcare is crucial to working parents. However, in many areas, the cost of daycare is unaffordable, and parents must choose between unreliable care or not working. Fortunately, there are government assistance programs that can help.

Child Care and Development Fund

The Child Care and Development Fund is administered by the states to provide subsidies in the form of vouchers or grants and contracts with providers to low-income families for childcare.

Like many of the other assistance programs, each state sets its own eligibility requirements. You can find out what your state’s requirements are by contacting your local fund administrator.

If your family does qualify, you’re allowed to pick the provider you want, as long as the provider meets state standards (and accepts the voucher or grant).

Head Start

Head Start is a school-readiness program for children from birth through five from low-income families. In addition to preparing kids for school, it also helps with whole-family well-being and health and development.

A3.2: In addition to income-eligible families, #HeadStart serves migrant seasonal communities, children experiencing homelessness, children in foster care, children in tribal communities, etc. #EarlyEdChat pic.twitter.com/aYhEGiVl62

— National Head Start Association (@NatlHeadStart) October 17, 2019

Head Start services are available to eligible families living below the federal poverty line, and are available in childcare centers, in-home daycares, and home-based services.

Foster children, children from homeless families, and children in families where other types of assistance (i.e. TANF, SSI, or others) are provided are also eligible for Head Start.

Related: Need Help Paying Bills? Here’s 22 Assistance Programs Worth Looking Into 

Free Money from Taxes and Unclaimed Funds

Free government money doesn’t always come in the form of need-based programs. Some are available to anyone, regardless of income.

Unclaimed money

While this isn’t necessarily free money, it is money that is owed to you for some reason by some entity. This money can include uncashed paychecks, apartment or utility deposits, or safety deposit box contents.

There’s no one place to check for unclaimed money, and you might have it in multiple states so make sure you’re researching all the states you’ve ever lived in. If your employer is headquartered in a different state from where you work, check that state as well.

The best places to start looking for your unclaimed funds are:

• Unclaimed.org
• Workers Owed Wages
• Unclaimed Funds
• Filling out a Destroyed U.S. Savings Bonds Claim

You might also have unclaimed money from old or forgotten tax refunds. To check for those, visit:

• IRS Refunds
• USA.gov

Old pension plans

In addition to unclaimed money or tax refunds, you might have money available to you in the form of old pension plans. If you or someone in your family worked for a company that provided a pension but hasn’t collected those benefits, you might still be eligible for that money.

You can find out if there’s money owed to you by visiting the Pension Benefits Guaranty Corporation and searching for your or your family member’s name.

Tax credits and deductions

An easy way to find free money is to adjust your tax withholding and deductions. If you haven’t done this recently, review the W-4 you submitted when you began your job. Figure out what you chose and then, using this list, make necessary and appropriate adjustments.

Some people are also eligible for free tax preparation via the Volunteer Income Tax Assistance program or the Tax Counseling for the Elderly Program. If you qualify, you’ll receive free tax preparation by IRS-certified volunteers.

Miscellaneous Government Assistance Programs

Whether you need assistance with your phone service, starting a business, or have suffered a job loss, there are programs that can help.

Lifeline

Lifeline is a discount cell phone service administered by the FCC, and is available to low-income people in every U.S. state, territory, commonwealth, and on Tribal lands. The cost is $9.25 per month.

In order to use Lifeline, you must meet certain income eligibility requirements. This means your income should be at or below 135% of the federal poverty level. You may also be eligible if you participate in certain assistance programs including:

• Medicaid
• SSI
• SNAP
• Federal Public Housing Assistance
• Certain Tribal assistance programs

Lifeline provides both cell phone and landline service and works with broadband. However, you may only use the Lifeline program for one service; FCC rules prohibit more than one Lifeline service per household.

FCC takes big step in automating Lifeline eligibility verification. For more info, visit: https://t.co/n8RaSgRhqx #ProtectingConsumers #Lifeline

— The FCC (@FCC) September 18, 2019

If you find that you need help with your phone service but don’t qualify for Lifeline, there are other ways to get free or discounted cell phone service.

Related: 8 Places to Get a Free Phone for Low-Income Earners 

Small business loans

If you’re interested in having your own business but don’t have the start-up capital, a loan from the Small Business Administration can help.

These loans aren’t free government money, but they often come with a much lower interest rate than loans from a private lender. The SBA also offers grants for select scientific and non-scientific fields and nonprofits, as well as providing low-interest loans to businesses affected by natural disasters.

You check for those grants and even apply for them from your phone by visiting Grants.gov.

Temporary Assistance for Needy Families

Temporary Assistance for Needy Families, or TANF, is commonly known as welfare. It’s the cash assistance program designed to help families with children when the family can’t provide the children’s basic needs.

Like Medicaid, this is a program financially supported by the federal government but administered by the states. As such, each state has its own discretion to decide eligibility requirements, time limits, and other factors affecting who receives the assistance, and how much assistance each family receives.

To determine if you’re eligible in your state, you can visit this website.

Senior benefits

BenefitsCheckUp is a free service administered by the National Council on Aging to help senior citizens find benefits that might be available to them. The searchable database contains more than 2,500 federal, state, and private programs to help improve the lives of seniors in the areas of:

• Medication
• Housing and utilities
• Health care
• Transportation
• Food and nutrition
• Income assistance
• Taxes

You can also search for veterans’ benefits and senior citizen discounts. The benefits are local to your area, which means that if you need help in Mississippi, you won’t be shown programs that are only offered in New York.

Unemployment benefits

One of the most stressful parts of losing your job is the loss of income. If you have been let go or downsized from your job, you might be eligible for unemployment benefits.

CareerOneStop, operated by the U.S. Department of Labor, is a hub for you to apply for your unemployment benefits online, and find out what else you might be eligible for. It even has resources to help you with your job search.

Getting Free Government Money Can Be Difficult

Although there are plenty of options for finding free government money, the only way to receive the money is by meeting eligibility requirements in most cases. For most programs, there’s no uniform set of requirements beyond the federal poverty guidelines, so it’s often difficult to figure out if you qualify.

Low-income families with children, disabled individuals, veterans, and the elderly typically have an easier time qualifying for benefits, but it’s not a guarantee. And if you qualify for some programs, you might not be eligible for others. It all depends on your state, the program, and other factors.

If you need any of these programs, contact your state’s Department of Health and Social Services. You can also use the screening tool available on Benefits.gov to see what programs you might qualify for. While it isn’t a determination of benefits, it’s a good place to start.

Related: 12 Places to Get a Free Car For Those in Need

The post 25 Programs to Get Free Money From the Government appeared first on DollarSprout.

It caters to your desire to save time, avoid crowded stores, and you can scroll through thousands of items with a few clicks or swipes. In many ways, Amazon has revolutionized the retail industry in this era of convenience.

Amazon was always my go-to option when I didn’t have time to run to a traditional store. I bought most household goods and several gifts from its site thinking I was saving time and money. And with high competition in the e-commerce world, I assumed Amazon’s prices were competitive, if not the cheapest.

My blind loyalty ended when I found that Walmart.com sold the exact same printer ink I bought on Amazon for almost $20 less.

As it turns out, many shoppers have had similar experiences. Prices for home goods on Amazon are 34% higher than the same products at Walmart, according to an article by Business Insider_[1].

Even if you can afford to spend more to shop at Amazon, why should you? Luckily, there are alternatives to Amazon that can save shoppers even more time and money.

The Best Websites Like Amazon to Do Your Shopping

Amazon’s overwhelming selection of products doesn’t guarantee it’ll have what you’re looking for at the best price. This is when shopping at sites like Amazon can help. You might find more specialized items with better prices, offers, and deals.

1. Target

Target.com is an Amazon alternative that carries a similar range of goods. The site offers competitive prices and gives an extra 5% off to Target REDCard holders.

Target has several of the same time-saving delivery options shoppers find at Amazon, including:

• Same-day delivery with Shipt
• In-store pickup for online orders
• Drive-through delivery to your car
• Free next-day shipping on daily essentials of $35 or more
• Free 2-day shipping when you use your REDcard or spend at least $35

Target’s subscription option rivals Amazon’s Subscribe and Save program. Subscribing to deliveries with Target awards you with free shipping and 5% off every order.

2. Overstock

One of the best websites like Amazon is Overstock.com. The site doesn’t sell food or beverages, but the selection of trendy furniture, home decor, electronics, and office supplies doesn’t disappoint.

Purchase totals over $45 ship for free and are only $4.95 if the order doesn’t meet that minimum amount.

Another perk of buying on Overstock is the return policy. Your refund amount will include the full cost of the item plus any shipping charges paid if you start the return process within 30 days of your order.

Overstock’s membership is an excellent alternative to Amazon Prime. Called Club O, it costs a mere $19.95 per year.

Benefits include:

• Free shipping on every purchase
• 5% back in rewards
• Competitor price matching guarantee
• Up to $40 in rewards for reviewing a purchased product
• Up to 45% savings in the Club O Extra Rewards Store

3. AliExpress.com

AliExpress is a massive shopping site that sells products at much lower prices than you’d find on Amazon. This company cuts out the middleman with its factory-direct store model.

The site has thousands of items that range from high-end merchandise to discount and bulk deals. On AliExpress, you get bargains on clothing, computers and electronics, pet products, beauty items, automobiles, and home improvement.

4. Newegg.com

If you’re shopping for electronics and tech products, Newegg.com is one of the best alternatives to Amazon you’ll find. The excellent customer service, daily deals, and fast shipping are major draws of this leading e-commerce site.

Newegg matches Amazon’s excellent shipping with items arriving in as few as one business day. Some larger items, such as televisions or appliances, come with a White Glove Delivery option. This superior service will deliver your purchase to your room of choice, unpack the item, and take care of excess packaging remnants.

For even more savings, the Newegg Outlet sells open box, clearance, and refurbished electronics at discounted prices.

5. Barnes and Noble

Next to Amazon, Barnes and Noble is the go-to retailer for books of all kinds. It has a well-established online presence and over 600 bookstores throughout the U.S.

Barnes and Noble also offers excellent prices on gifts, games and collectibles, art supplies, and decorative goods. Looking for other bookseller sites? Books-A-Million, Powell Books, and other indie bookstores have an online presence as well.

6. BuyDig

BuyDig’s site claims it’s the “Internet’s Digital Superstore.” Comparable to Amazon, this site is known for selling the best computer, sports and fitness, office supplies, TV, kitchen, and houseware brands.

Free ground shipping is always available, though it frequently features free upgrades for faster shipping.

Like Amazon, BuyDig has a straightforward return policy and can issue a full refund if you change your mind about a purchase.

7. eBid

Online auction site eBid has some of the best prices on new and used goods in all product categories. As of 2019, the site has over 2.7 million items for sale.

eBid has 28,000 categories to choose from and sells items like:

• Football jerseys
• Antique lamps
• Vintage jewelry
• Bicycle parts
• iPhones
• Designer cologne
• Nursery bedding

Related: 13 Best Places to Sell Your Jewelry Online

8. Online Marketplaces

When shopping online, sometimes the best value is found directly from sellers in your area wanting to get rid of their things.

Local Facebook Groups have been known to offer steep discounts on everything from laundry soap and clothing to electronics, camping equipment, and furniture. Facebook Marketplace has also gained popularity as a site to find low-priced items.

Another well-known online marketplace is letgo. Letgo allows shoppers to find local goods in their own neighborhood through the app and website.

Alternatives to Amazon for Selling Your Stuff

Selling your stuff online can help if you need cash or want to free up space in your home. Amazon’s Trade-In program is an option, but it only pays in Amazon gift cards and processing could take up to 10 days or more.

There is a multitude of alternative websites that offer similar or better buy-back options as Amazon.

9. Decluttr

Decluttr fast-tracks the process of selling unwanted items. There’s no hassle of taking photos to list an item for sale or waiting to find a buyer.

It can buy CDs, DVDs, games, books, cell phones, tech gadgets, and LEGO® products directly from you.

The app has a free valuation tool that gives price estimates instantly. If you accept the offer, you pack and ship your items to Decluttr using the free shipping label provided.

Decluttr sends money for your items by PayPal, check, or direct deposit to your bank. Or you can opt to donate your earnings to a charity of your choice.

Related: How Much Could You Make Selling Your Electronics with Decluttr?

10. Buyback Boss

Buyback Boss is an easy, streamlined way to get money for your used smartphone, tablet, or other electronics.  All you need to do is answer a few questions about the device’s specifications and you’ll get an instant quote. If you get a higher offer from another site, BuyBackBoss has a price-matching guarantee which means you can still get that price but through its site instead of its competitor’s. 

If you accept its offer, it sends you, via email, a pre-paid shipping label you can use to ship the device. You can choose your payment in the form of a physical check, PayPal deposit, or a charitable donation.

11. BookScouter

Do you have old textbooks collecting dust around the house? BookScouter can help trade them in for cash.

The site saves time by comparing offers from multiple vendors with one click and is known as one of the best places to sell textbooks.

The highest price isn’t always listed first so make sure to review all options before selling back your textbooks.

Related: BookScouter Review: How to Flip Your Used Books for Cash

12. Gazelle

Gazelle is a top pick to sell your electronics. The company reports paying over $200 million to people selling their used laptops, tablets, smartphones, and electronic devices.

Within minutes, Gazelle will provide an offer for your item.

Gazelle pays you by check, PayPal, or Amazon gift card. Pick your preferred payment method to get money in your hand.

Related: Gazelle Review: What You Need to Know Before Selling Your Phone

13. Shopify

Consider Shopify to make even more money selling your things. This online platform is easy to use and has a low startup cost.

With Shopify, you can:

• Create your own online store
• Promote and sell products
• Make money on your site, with mobile, social media, and in-person sales

If you’re on the fence, Shopify has a free 14-day trial with no credit card required.

14. Letgo

Letgo is the perfect way to sell large items or things that are hard to ship. The site and app focus on your local market, where arranging pickup or delivery is an option.

Snap a photo and add a few details to your listing to attract buyers. Shoppers can search your items online or with the app, making letgo an excellent Amazon alternative.

15. OfferUp

Another local app, OfferUp, allows sellers to post almost anything for sale. Listing items from iPads and automobiles, to craft supplies and prom dresses takes fewer than 30 seconds.

OfferUp enables buyers in your area to ask questions or submit an offer through the app. The buyer will pay in person, so there’s no need to set up a system to accept payments online.

16. Etsy

Etsy is a fan-favorite destination to sell handmade designs, vintage items, craft supplies, and more. Like Amazon, it’s a very well-known site with a loyal base of buyers and sellers.

There’s no upfront investment to worry about, which makes Etsy a fantastic option to list items for sale.

To begin, create a free account and add items to your Etsy store. You control your earnings by setting your own prices. Payment options include direct deposit and PayPal.

How to Save Money on Sites like Amazon

The high brand recognition and vast selection of products make Amazon a convenient one-stop shop. Plus, paid online survey sites often pay you in free Amazon gift cards, making shopping there even more tempting.

It’s important to remember that Amazon isn’t the only option. Shopping might be more efficient and less expensive at one of the Amazon alternatives listed above. And, if you’re a seller, make sure to compare the selling and listing fees to get the most profit for your used items.

The post 16 Best Alternatives to Amazon for Shopping Online appeared first on DollarSprout.

Washing dishes, cleaning bathrooms, and taking out the garbage are no one’s favorite pastimes. But most would agree that these types of chores serve an important function in families: teaching children responsibility.

Many parents also use chores to introduce money concepts to their children. Complete all your chores for the week and earn an allowance in return.

In a recent survey from T. Rowe Price, 66% of respondents reported giving their children an allowance._[1] Of those parents, 83% believe their children should have to earn it.

As a parent, you understand the importance of teaching your children about money. But is rewarding them for completing normal household chores sending the wrong message?

Should Kids Get an Allowance for Chores?

Many experts agree on the merits of kids’ allowance. However, many disagree when that income is tied to completing household tasks. So the question arises — should kids get paid to do chores?

Jennifer Dunkle, a Licensed Professional Counselor who specializes in financial therapy, says, “Kids should be expected to do basic chores [without an allowance] because they are a member of the family, and that’s what families do — take care of their homes and each other.” However, according to Dunkle, parents can consider paying children for chores that are atypical or above and beyond the norm.

Family finance expert Andrew Daniels thinks paying kids for chores can help develop a child’s entrepreneurial spirit. “I think it’s crucial for children to learn how to make money,” Daniels says, “and a big part of that is learning to exchange labor for money. That’s where getting paid to do certain chores can be a great thing.”

Daniels acknowledges the belief that if you pay kids for chores, they may become overly dependent or entitled. However, this, he says, “is more about the child-parent dynamic than anything else.” What he’s noticed in his own family is that “getting paid to do certain chores can get a child’s wheels spinning and have them look for ways to earn more by doing these chores for other people.”

Daniels won’t pay his kids to do chores like making their beds. He says making beds “comes from the privilege of having a bed and being a part of the household.” Daniels encourages his children to develop their own businesses from a young age and make money online in addition to earning an allowance.

Andy Hill, a family finance expert, also echoes Dunkle and Daniels’ suggestions to pay for some chores but not all. He explains, “There are certain responsibilities our kids have that they just need to do as a part of the family.” Hill said to think of those chores like making the bed or clearing the table after dinner.

Then, he says, he will pay his children for “above and beyond” chores like, “vacuuming, washing windows, and loading laundry.” Hill calls this “work ethic training,” which he explains “will help them grow up to understand that with hard work comes reward.”

One mother of two wrote a Washington Post article entitled “I Pay My Kids to Get Dressed, Do Homework, And More. It’s the Best Decision I’ve Ever Made.” For her, the decision to pay her children for some basic chores resulted in enormous positive reinforcement and made her morning routines much less hectic.

She received pushback in the press._[2] However, the important takeaway is that there are many different approaches when it comes to tying allowance to chores and how kids earn money.

When Parents Disagree About Paying for Chores

Money can be a divisive topic in families. That’s especially the case if each parent grew up with a different set of rules regarding chores and allowance. As such, parents may disagree on whether or not to pay their kids an allowance for chores.

Lindsay Bryan-Podvin, a financial therapist, says, “Plenty of parents disagree on whether or not kids should be paid for chores.” However, she mentions it’s important for parents to discuss their approach away from their child.

What’s harmful is having “two parents enforcing a different standard.” The reason, Bryan-Podvin says, is that it “sets up the child to go to the parent who ‘pays’ for chores and pit them against the other parent who doesn’t pay for chores.”

Related: How Your Parents’ Finances Could Become Your Liability

How Much Should a Kid’s Allowance Be?

According to the American Institute of Public Accountants, children receive an average of $67.18 per month in allowance._[3] You can start giving an allowance to children at an early age, but you have options on how to distribute it.

Base it on age

You can base your children’s allowance on their age that year. For example, if they’re 10 years old, try an allowance of $10 per week.

Make it chore based

Another option is to base your child’s allowance on the chores completed. Set a price for each chore, tally up the results, and pay them at the end of the week.

Make it a flat monthly rate

Some parents decide to give their children a flat monthly rate at the beginning of each month. This is common for parents of teenagers who have expenses like gas, fast food, and more.

The idea is that you give your children a sum that covers their monthly expenses plus a little extra. They’re responsible for paying for everything using that sum, whether it’s a shirt from the mall or a Starbucks frappuccino. Once they run out, they have to wait until next month’s allowance.

Related: Should Parents Pay for Their Children’s College Education?

Allowances Can Be Beneficial if They Teach Financial Literacy

According to Ron Lieber, the author of The Opposite of Spoiled, allowances can help children learn about wants versus needs. In an interview with the New York Times, he said kids will make “spectacular mistakes” with their allowance money.

It’s good, he argues, for them to run out of money or not have enough to buy a brand new prom dress. Lieber says, “it’s a lesson they won’t have to learn at 25 when they want to bust into their 401(k) to solve the problem they created because they never knew how to make a trade-off.”

Lieber believes in allowances, but not in tying them to chores. He encourages parents to give their children money to manage and not to bail them out when they run out.

In many ways, an allowance for kids should serve a broader purpose. It’s not necessarily about how children get paid and for what. It’s about them learning how to handle the money they do receive. These lessons will encourage a lifetime of good financial choices.

The post Should Chores and Allowance Go Together? Here’s What the Experts Have to Say appeared first on DollarSprout.

If you’ve never checked your credit score before, or it’s been a while since you last have, it might be time to look into it.

The Federal Trade Commission estimates that one in five consumers has a “potentially material error” on their credit report.

An error that might:

• Incorrectly lower your credit score and make you look riskier to lenders.
• Increase the likelihood of higher interest rates, mean less favorable credit or loan terms, or cause denial [when borrowing money] altogether.

Even if you don’t plan on taking out a loan, renting an apartment, or applying for certain jobs, it’s still a good idea to monitor your credit score to prevent identity theft.

Companies know this too. That’s why it’s easy to find plenty of places willing to provide you with a credit score – for a fee.

Here’s the thing, though: there are several places to get a free credit report online without paying anything.

In this article we’ll cover the most trusted places to get your free credit score, and share what you need to know about each service.

6 Best Places to Check Your Credit Score for Free

If you’re wondering where to check your credit score, look no further. Here are the six best free credit score sites:

Note: FICO and VantageScore, the two most popular scoring models, both operate on a 300-850 credit score range. The higher your score, the lower your perceived risk to lenders. A higher score also means better credit eligibility, and lower interest rates on loans and mortgages.

Here’s what you should know about each free credit score checker:

1. Credit Karma

Credit Karma has quickly become one of the most popular places to check your credit score for free.

Its no-strings-attached approach to credit monitoring has allowed the company to amass a loyal following of over 80 million members, and it’s easy to see why.

No sneaky fees. No need to enter a credit card number at sign up. No paid trial that follows a free credit score check.

Like many free credit score services, Credit Karma makes money with its affiliate relationships. If you sign up for a credit card based on Credit Karma’s recommendation, the company will earn a commission – but you don’t need to sign up for any credit products in order to take advantage of the service.

If you’re in the market to take out a credit card, auto loan, or other loan, Credit Karma is a great option because it provides you with a credit score from two of the three credit bureaus. It also provides you with your approval odds for specific lenders and credit cards, so you won’t waste your time applying for a product you might not be approved for.

Credit Karma also provides several other valuable services, like a credit score simulator, free tax filing, a credit report dispute service, and monitoring for your personal information in data breaches.

2. Credit Sesame

Credit Sesame is very similar to Credit Karma, but it only provides you with a credit score from one bureau, TransUnion, and updates less frequently.

It also operates with a similar business model. Both companies earn money based off affiliate commissions from personalized recommendations.

Both companies also track your score over time so you can see how it changes, and provide personalized recommendations to help you increase your score over time.

Credit Sesame, however, does offer a paid feature where you can get more frequent updates from each of the three credit bureaus. Some of these plans also monitor your personal information on public records and black market websites, although this may also be available from other free credit score services for free.

3. CreditWise by Capital One

CreditWise is one of a few free credit score services provided directly by credit card companies, in this case Capital One. The website is cleanly built and provides a great experience for mobile users.

Furthermore, CreditWise by Capital One is more streamlined than many of the Credit Karma and Credit Sesame product offerings.

Its minimalist design allows you to quickly see your credit score (and what factors are affecting it), play with its credit score simulator, sign up for credit alerts, and easily view a slimmed-down version of your credit report.

4. Credit Journey by Chase

Credit Journey by Chase is another credit-card-provided service. You can access it directly from its website even if you don’t have a Chase card. If you do have a Chase credit card, you can also access it from your online account.

Credit Journey is very similar to CreditWise by Capital One. It’s simple and streamlined, with no frills. You can see your credit score and a summary of your credit report, get alerts, and use a credit score simulator to see how different credit changes can affect your credit score.

Related: 7 Easy Ways to Improve Your Credit Score

5. Mint

Mint is a popular automated budgeting and finance-tracking program; but did you know it also provides a free credit score?

This is one of the more limited free credit score services. With Mint, you can see your TransUnion credit score, but only once per quarter – the slowest-updating service on our list.

If you want access to many of the features other free credit score services offer, you’ll need to pay a $16.99/month fee.

6. Discover

This free credit score service is offered by Discover, another popular credit card company. It’s the only one that provides your actual FICO score, the brand that lenders use the most, for free.

This is a really important point. If you’re in the market to take out a loan or line of credit, it helps to know which credit score your lenders are actually looking at.

Most companies that provide your actual FICO score charge a fee, but that’s not the case with Discover.

Discover also tells you which factors are helping and which cause your credit score to drop, so you know what you can do to improve it.

Credit Score FAQs

How often should I check my credit score?

At a minimum, you should check your credit score and your credit report before you plan to apply for any credit. That way you can correct anything fishy before it really harms you.

Aside from that, you can check it as often as you want. Keep in mind that other financial metrics like net worth and your budget are also important to monitor frequently, more so than even your credit score.

Why is my credit score different on other sites?

The truth is, you have many different credit scores. Your credit score at any given place and time will depend on:

• The brand used (such as FICO or VantageScore)
• The model used (such as VantageScore 3.0 or VantageScore 4.0)
• The credit report used (Equifax, Experian, or TransUnion)
• When your credit report is pulled (such as after you make your monthly payments, or charge purchases on your credit card)

How do I get the score my lender sees?

Most lenders use the FICO 8 credit score. The only way to get this score for free without signing up for any products is to use Discover’s free credit score service.

However, if you’re really concerned about which score your lender uses, you can just ask. Lenders in certain industries sometimes use different credit scores. You may be able to purchase these specialty scores from FICO directly.

Where do I find my FICO score?

Only one free credit score service offers your FICO score – Discover.

However, you may be able to get your FICO score in other ways:

• From the FICO website itself
• From your bank or credit union
• From your credit card issuer
• For the last two options, it’s a good idea to read the fine print or ask customer service ahead of time if it offers these features, especially if they’re make-or-break options for you.

Is a free credit score the same as a free credit report?

Credit scores and credit reports are connected, but not the same thing. You can think of a credit report raw data. It feeds into a formula that creates the credit score.

Your credit report is like all of the schoolwork and homework you did in school. The credit score is like your actual letter grade.

Where do I find my free credit report?

Many of the free credit score services offer a summary of your credit report.

In order to get your actual credit report, you’ll need to visit AnnualCreditReport.com, the only official place where you can get a free credit report.

You can get one free credit report per year from each of the three credit bureaus, not including a score.

Keep Tabs on Your Credit Score, But Don’t Obsess Over It

It used to be that your credit score was a mystery. You simply had to hope it was good and check your credit report to make sure that it at least was accurate. But many companies have been popping up recently offering a free credit score to anyone who wants to check it.

That’s a good thing. The easier it is to check your credit score, the more empowered you can be to make decisions that will help you move forward toward your financial goals.

The post 6 Best Places to Get a Free Credit Score Check appeared first on DollarSprout.