In a Berkshire Hathaway shareholder letter, Warren Buffett once advised, "Leave the children enough so that they can do anything but not enough that they can do nothing."

Many parents share this sentiment. A recent survey from Kiplinger and Morning Consult found that parents hope their adult children use an inheritance to improve their lives (22%), not waste it (20%).

Once it's handed over, though, an inheritance can go toward things you'd never condone, or the windfall can shift a child's behavior in unhealthy ways in the long run.

Take David and Kathy, a hypothetical couple who gave their 20-something twins $100,000 each. Instead of using it to buy a house or invest wisely, one twin quit a steady job to day-trade, while the other used it to buy a luxury car that would depreciate over time. What was meant as a gift to open up the future instead became a setback or wasted opportunity.

As Joy Slabaugh, a certified financial planner (CFP) and founder of the Wealth Alignment Institute, explains: "Money can unintentionally interfere with motivation, identity, autonomy or family relationships."

Fortunately, avoiding that outcome doesn't have to change your desire to give or how much, just the way you give it. This holds true for parents as well as grandparents.

Why early inheritances can backfire

An early inheritance is a chance to help adult children while you're still around to see them enjoy it. While more adult children would rather get financial help now (45%) than a larger inheritance later, only 14% of parents say they'd prefer to give now, according to Kiplinger's survey.

Part of that hesitation might stem from research such as a 2026 study that found 42% of heirs spend their entire inheritance within a single year of receiving it. Going from having little to suddenly having a lot can trigger impulsive spending. Depending on the amount, it can also dull the motivation to work hard or invest.

Psychological factors are at play, too. Heirs can experience what researchers call "mortality salience" — the subconscious discomfort of handling "death money," which can prompt rapid spending as a coping mechanism.

Unearned money also tends to be treated more casually than a paycheck. Behavioral economists call this the "house money effect." People spend windfalls, gifts and winnings more freely than money they worked for, as though it were the casino's money rather than their own.

Control of an early inheritance with incentive trusts

For parents who want to give each adult child an early inheritance without fear that it will become a slush fund to live on, one possible solution is an incentive trust.

An incentive trust releases money only when your child meets certain conditions you've set, rather than handing everything over at once. Think of it as a gift with instructions attached. You, the parent, write the rules, while a trustee checks that each one is met before releasing any money. Your child receives a payout only after clearing the bar you set.

If David and Kathy had used an incentive trust, they could have nipped the twins' spendthrift behavior in the bud. Some common conditions they might have required are: a college degree; matching income from a job; or releasing money for a specific step such as buying a first home. Other requirements act as guardrails, such as pausing payouts if a child struggles with substance abuse.

Jon Lapp, a CFP and founder of Haven Financial Advisors, suggests, "Reasonable provisions might support college or vocational training, match retirement savings, help purchase a first home, fund a credible business plan, or give an independent trustee discretion to make staged distributions as the beneficiary demonstrates financial responsibility."

Ultimately, the purpose of an incentive trust is to encourage a desired action or prevent mismanagement. "I would consider this type of trust when the inheritance is large relative to the child's experience, or when there are specific concerns involving addiction, impulsive spending, creditors or an unstable relationship," Lapp says.

What to know before setting up an incentive trust

While an incentive trust sounds good on paper, it can turn into a problem in practice without careful planning.

For instance, Lapp says, "Conditions based on earning a particular salary, entering a certain profession, getting married or having children can become unfair very quickly. Even an earned-income match can penalize a teacher, caregiver, entrepreneur or disabled beneficiary."

Rigid rules can also become outdated, fail to account for unexpected life events such as illness or injury, and place trustees in difficult emotional positions. "When parents use wealth to protect, control, rescue or reward their children, the financial gift can become emotionally complicated for everyone involved," says Slabaugh.

When weighing how best to give an early inheritance, she recommends first asking the right question: "Rather than asking, 'How do we keep our kids from wasting the money?' I encourage families to ask, 'What do we want this wealth to make possible for our children, and what do we want it to teach or reinforce?' "

Other ways to help sooner rather than later

If you plan to give as much as a six-figure sum to your adult children, Lapp advises starting small. "Smaller gifts over several years can provide a useful test of how the child handles money," he says.

Other options Lapp offers include helping fund a Roth IRA when the child has eligible earned income, using a parent- or grandparent-controlled 529 account, paying tuition or medical costs directly to the provider and structuring housing help as a formal loan rather than an informal blank check. He points out that direct tuition and medical payments can also qualify for specific federal gift-tax exclusions when handled correctly.

When the money supports positive choices a child has already made, it can set healthier expectations. That's what parents want most. As Lapp puts it, "The primary goal is to help the next generation, without enabling poor financial management, or creating the expectation that they will always be 'bailed out' by mom and dad."

More Trillion Dollar Talk

• How to Talk to Your Adult Kids About Their Inheritance
• Shielding Your Heirs: The Expert Guide to a Tax-Free Inheritance
• Why So Many Families Are Unprepared for the Great Wealth Transfer — and What You Can Do About it
• Why Leaving an Equal Inheritance to Your Children Could Backfire

As part of our Trillion Dollar Talk campaign, Kiplinger editors — Alexandra Svokos, Kiplinger digital managing editor and Diane Harris, Kiplinger Personal Finance Magazine deputy editor — brought together three of our favorite experts to discuss inheritance.

We had an invigorating conversation about how families can approach these conversations and the types of problems that often come up, as well as highlighting possible solutions for those scenarios.

Joining us for our panel conversation were: Valerie Galinskaya, managing director and head of the Merrill Center for Family Wealth®; Brad Klontz, associate professor of practice in financial psychology at Creighton University Heider College of Business; and Ryan Coon, attorney at Anderson Advisors and J.D. from Willamette University.

Watch the full conversation here:

During this episode of Kiplinger Conversations, we asked viewers to send us their questions. Here's a round-up of those questions, along with our responses. If you have questions on this topic, please reach out to us at KipInheritanceTalk@futurenet.com.

We will do our best to answer as many questions as we can, and your questions might inspire future articles for Kiplinger. The answers provided by our editors are for general informational purposes only. Not all questions submitted will be published, and some will be edited for clarity.

1. Addressing specific numbers.

Question: The overarching question is, how do you have an informed conversation with your adult children without having to discuss specific dollars and cents?

Diane Harris: Great question! It's a very common concern among parents, not wanting to disclose exact numbers.

And you don't need to, honestly. Your general intentions, and why you've made the decisions you've made, and what plans you have in place are what the kids need to know, not numbers. After all, those numbers can change, depending on how long you live and what your expenses will be, particularly when it comes to health or long-term care.

The critical details are not the amounts you intend to leave but whether you have a will and other estate planning documents and, if so, where to find them; the kind of assets you have (for example, do you have accounts that will pass outside of a will, property in addition to your primary residence, investment accounts, and so on); and how you plan to divide them and why.

In particular, it's important to explain your thinking if you intend an unequal distribution of assets among your children, so they understand your reasoning.

And if you have money you intend to give for specific purposes during your lifetime — say, if you plan to help pay for a wedding or assist with the down payment on a home or your grandchildren's college education — it would be good for the children to know that too, so they can plan accordingly.

Alexandra Svokos: It's not unheard of to be concerned about this. In our Trillion Dollar Talk survey, conducted by Morning Consult, we asked adult children to write in the one question they would want to ask their parents about a possible inheritance. The most common response we heard was a version of, "How much will I receive?"

On the flip side, the most common reason parents said they haven't talked to their kids about inheritance yet is that "there are too many unknowns."

Don't let this uncertainty stop the conversation from happening in the first place.

As Diane said, you don't have to lay out everything in your estate — but I would recommend you aim to give your children a ballpark idea of what's in your estate so you can both plan appropriately. Again, exact numbers aren't what matter here; you just don't want to leave them surprised and unprepared when you're gone.

Additional reading:

• We Know You'd Rather Talk to Your Kids About Politics Than Inheritance. Here's the Right Way to Have That Conversation Anyway.
• Why So Many Families Are Unprepared for the Great Wealth Transfer — and What to Do About It
• Counting on the Great Wealth Transfer? Why It May Not Pan Out the Way You Hope

2. One-on-one vs group conversations

Question: Do you feel it is better to have a family group inheritance discussion or one-on-one with each family member?

Alexandra Svokos: The answer to this largely depends on your own family dynamics. If your family regularly has open (and healthy) conversations about finance and future planning, a group setting would make sense. If, however, group settings tend to bring up arguments, you may want to start the conversations one-on-one.

Starting with a one-on-one conversation is also helpful if you're splitting an estate anything besides explicitly equally — that way, you can explain your reasoning without having to balance group dynamics, and you'll be in a space where the heir can openly ask questions to understand your decisions.

But what I would keep in mind, as Ryan said, is that it's not a one-and-done conversation. You can have both group discussions and one-on-one conversations to make sure everyone feels comfortable and confident.

Additional reading:

• The Conversation You’re Avoiding: How to Bring Up Estate Planning with Your Family

3. Handling older parents' finances

Question: My husband is an only child, and his parents own two homes. They are 88 and 87. They have made it clear that everything is coming to us and have started to gift us the max each year $76,000.

We don't know how much they have, and we don't need the money. We worry that they might need extensive care as they get older (her mother lived to 106 years old). We are keeping the money in an interest-bearing account so we can use it for them if they need it later. Are there any recommendations as to how/where we keep these funds they are gifting to us? We want to do what is best for them.

Alexandra Svokos: Thanks for your question. Long-term care costs are something many families are worrying about. In fact, our survey found that 24% of older parents fear that ongoing care costs will deplete their estate.

First and foremost, we recommend speaking to professionals for advice on your own particular case. Our answers here are for general information purposes only.

As a general principle, it's worth having a conversation to ask parents if they have their own plans for managing long-term care. They may feel comfortable making gifts because they have a plan in place, for example, and if not, you can discuss how to set up a plan and what makes sense for you both.

Again, this is generally speaking: If you have funds you may need to use within a short time span, an interest-bearing account where you can immediately access funds (like a high-yield savings account) is a decent idea. If you feel sure you won't have to use funds for a longer time period, you can consider CDs (which typically have higher rates, but lock your money in for a set time period) or investing in the market, although that comes with higher capital gains tax rates if sold within a year, and of course, more risk than, say, a locked-in CD.

Additional reading:

• No One Wants to Ask Their Aging Parents About Their Finances, But Here's How
• Where to Put Inherited Money
• Gift Tax Exclusion 2026: How Much You Can Give Tax‑Free This Year
• I Have $150,000 That I Don’t Need Anytime Soon, but I Don't Want To Put It in the Market. What Should I Do?

4. Estate planning for blended families

Question: Given the realities of today’s blended and often fractured family dynamics, is there a provision that allows us to safeguard the inheritance so it stays within the family?

Diane Harris: Yes, in blended families, as our panelists mentioned during the discussion, a will is often not sufficient to ensure your assets pass as you want them to and protect the people you love and want to provide for.

One key estate-planning tool that helps with this is a trust, which allows you to make stipulations — for example, you might set up a trust in a way that provides for a surviving spouse during his or her lifetime but then ensures that the remaining assets will pass to your children from a previous union. Whatever the specifics you want to put in place, a trust is often a good tool. Laying out your intention for personal property in a letter of intent, while not legally binding, is also often helpful.

Often the most contentious items in an estate — in all families, not just blended ones — are items with emotional resonance, not the investment portfolio. Who gets Mom's engagement ring or Dad's prized watch or the ornament that sat on top of the Christmas tree or Grandma's yellow pie plate… those are the items that can cause the greatest friction in families, experts tell us.

An estate planning attorney can help with all of these decisions. You can find them either via personal recommendations from people you trust or by checking a professional directory such as those from the National Association of Estate Planners and Councils or the American College of Trust and Estate Counsel (ACTEC) Directory.

Additional reading:

• The 5 Essential Trusts You Need for 2026 Estate Planning
• This Is How the 'Brady Bunch' Safety Net (aka a QTIP Trust) Protects Your Kids' Inheritance
• The Six Estate Planning Steps Every Blended Family Must Take
• The Little-Known Tool to Protect Your Retirement Savings in a Divorce

5. Children with particular circumstances

Question: How do I or you address issues of a child with dementia and estrangement, re any or partial benefits of an inheritance?

Alexandra Svokos: This is where you definitely want to make sure to get professionals involved. If you are planning to leave something to a child or other heir with whom you're estranged, a letter of intent can help explain the inheritance to them without breaking an estrangement. I would just caution you to remember that a letter of intent is about explaining an inheritance, not about reopening conversations when you're not around to have them.

For a child with dementia or special needs, the answer here is again to make use of trusts. You can, for example, set up a special-needs trust. This is also why I say you'll need professionals involved – be careful about setting these systems and guardrails up so that your legacy gets used in the way in which you want it to be used.

Additional reading:

• The Benefits of a Special Needs Trust
• A 5-Step Plan for Parents of Children With Special Needs, From a Financial Planner
• Managing the Financial Dominoes of Special Needs Planning: A Practical Guide for Long-Term Security
• How to Plan for Retirement When Your Child Has Special Needs
• Is a Living Trust the Right Move for Your Estate Plan?

When shopping for a wireless phone plan, the advertised price isn't necessarily what you'll pay. T-Mobile offers discounted plans for certain customers, including people 55 and older, military members, veterans and first responders, which could help lower your monthly cell phone bill.

The amount you can save depends on the plan and number of lines you choose, and you'll need to meet eligibility and verification requirements to qualify. Some discounted plans also include extras such as streaming benefits and mobile hotspot data.

If you're eligible for one of these T-Mobile discounts, here's how the plans compare and what to consider before signing up.

T-Mobile plans for customers 55 and older

T-Mobile’s 55+ plans are available to new and existing customers age 55 and older. Only the primary account holder needs to meet the age requirement. T-Mobile requires proof of age, such as a driver's license or passport.

T-Mobile offers three 55+ plan options:

• Essentials Choice 55 2.0: Includes unlimited talk, text and data, with 50GB of premium data. The regular price is $50 per month for one line, plus taxes and fees.
• Experience More w/ 55+ Savings 2.0: Adds unlimited premium data, 60GB of high-speed mobile hotspot data, Netflix Standard with ads and travel benefits. It also includes a five-year price guarantee and eligibility for phone upgrades every three years. The regular price is $75 per month for one line, plus taxes and fees.
• Experience Beyond w/ 55+ Savings 2.0: Includes additional benefits such as T-Satellite, unlimited premium data, Netflix Standard with ads, Hulu and unlimited mobile hotspot data. The regular price is $90 per month for one line, plus taxes and fees.

The 55+ plans are geared toward customers who need one or two phone lines. T-Mobile doesn't require an annual contract.

The savings can be significant, particularly on the more expensive plans. For example, Experience Beyond 2.0 regularly costs $105 per month for one line, while Experience Beyond w/ 55+ Savings costs $90. That's a difference of $15 per month, or $180 per year, before any additional discounts.

Military members and veterans may qualify for discounted plans

T-Mobile also offers discounted plans for military members and veterans. Eligible customers include active-duty military members, veterans, National Guard and Reserve members and Gold Star family members.

The eligible military member or Gold Star family member generally must be the primary account holder. You'll also need to verify your eligibility within 45 days of activating the plan. T-Mobile accepts several forms of documentation, depending on your military status, including a DD214, leave and earnings statement or military orders.

Military savings are available on Essentials Military 2.0, Experience More w/ Military Savings 2.0 and Experience Beyond w/ Military Savings 2.0. How much you save depends on the plan and number of lines you need.

For example, T-Mobile says military and veteran families with four lines can save $720 per year on its Experience plans compared with the equivalent regular Experience plans. Be sure to compare the total price and included benefits before choosing a plan, since your savings will vary.

First responders have another way to save

T-Mobile offers discounted plans for eligible first responders, including firefighters, EMTs and law enforcement officers. Active first responders, pensioned retirees and volunteers may qualify, as can parents, children and spouses of first responders killed in the line of duty.

The first responder must be the primary account holder and verify their eligibility within 45 days of activating the plan. T-Mobile may also require customers to reverify their status periodically.

T-Mobile offers three plans with first responder savings: Essentials 2.0, Experience More 2.0 and Experience Beyond 2.0. Savings vary depending on the plan and number of lines. For example, T-Mobile says families with four lines can save $720 per year on its Experience plans with First Responder Savings compared with the equivalent regular Experience plans.

Eligible customers on Experience More 2.0 and Experience Beyond 2.0 can also currently get T-Priority at no additional charge, a $7.50-per-month value. T-Priority gives first responders higher priority on T-Mobile's 5G network, including during periods of heavy network congestion. A compatible device and qualifying plan are required.

Look beyond the monthly price

Some T-Mobile plans include extra perks that can add value beyond wireless service. Depending on the plan, benefits may include Netflix or Hulu, travel perks, T-Mobile Tuesdays offers and a limited-time DashPass membership. Benefits vary by plan and may require activation.

These extras can make a more expensive plan more appealing, but only if you'll actually use them. For example, included Netflix or Hulu could help you save on streaming services if you already subscribe or would otherwise pay for them. Likewise, travel benefits won't add much value if you rarely travel.

When comparing plans, put a realistic dollar value on the benefits you'll actually use and ignore those you won't. Then compare that value with the difference in monthly cost. A plan with a long list of perks isn't necessarily a better deal if you're paying extra for benefits you don't need.

Check T-Mobile deals before you switch or upgrade

Beyond discounts for eligible groups, T-Mobile regularly offers promotions that could lower the cost of switching carriers or upgrading your phone. Before making a move, check the current deals, which may include:

• Device offers: T-Mobile regularly offers promotions on new phones, including some that provide a device at no additional cost through monthly bill credits when you activate a qualifying line or plan. For example, as of this writing, T-Mobile is offering a promotion on the iPhone 18 Pro. Eligibility and plan requirements vary by offer.
• Trade-in offers: If you have an eligible device, you may be able to trade in your phone and receive credits toward a new one. The value depends on the device, plan and promotion.
• Switching offers: New customers switching mobile carriers may qualify for additional incentives. For example, T-Mobile currently offers programs that can help eligible customers pay off a device financed through their previous carrier.

Your eligibility, plan requirements, credits and promotional periods affect the ultimate savings, so carefully read all of the fine print to understand just how much you might save.

Do the math before choosing a discounted plan

A discounted phone plan can lower your monthly bill, but the biggest advertised savings don't necessarily make a plan the least expensive option. A lower-tier plan could still cost less overall, particularly if you don't need the extra features and perks included with a more expensive plan.

Before signing up, compare the cost for the number of lines you need and check whether the advertised price requires AutoPay. Factor in taxes and fees, device payments and any other charges that could affect your bill.

Then consider the benefits you'll actually use. Looking at the total cost rather than the advertised discount can help you determine which plan offers the most value for your budget.

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Social media has given us countless ways to "max" different areas of our lives, from sleepmaxxing to vacationmaxxing. Now, the concept has made its way into personal finance.

"Moneymaxxing" is the idea of optimizing your finances so your money works harder for you. That could mean moving your savings to an account with a better interest rate, maximizing credit card rewards or finally canceling subscriptions you don't use.

While the term is new, many of the strategies behind it aren't. Paying attention to interest rates, fees and spending habits has long been a part of smart money management. Moneymaxxing simply packages these habits around the idea of getting as much value as possible from every dollar.

But maximizing every financial decision isn't necessarily the same thing as making the best financial decision. Here’s how you can take advantage of moneymaxxing without spending too much time and energy trying to optimize every financial decision

What is moneymaxxing?

Moneymaxxing is a financial trend centered on making the most of the money you already have. Northwestern Mutual describes it as an approach to making every dollar do as much as reasonably possible so you can direct more money toward what matters to you.

Depending on your finances, moneymaxxing could involve:

• Moving cash to a high-yield savings account
• Strategically using credit card rewards
• Reviewing recurring expenses
• Shopping around for insurance or other financial products
• Automating savings and investments or taking full advantage of benefits offered by your employer

Part of the appeal is that you don't necessarily need to earn more money to get started. Instead, you're looking for opportunities to get more value out of your current income and assets.

The trend may also make money management feel more approachable, particularly for people who are used to consuming financial information on social media. One financial planner described moneymaxxing as similar to the FIRE movement (financial independence, retire early), but more "gamified."

There's nothing wrong with wanting your money to work harder. The trouble starts when optimization becomes the goal instead of a tool for improving your financial life.

When moneymaxxing can go too far

Moneymaxxing can help you make smarter financial choices, but there’s a point where trying to optimize every dollar can create more hassle than value.

Chasing every fraction of a percentage point

One of the simplest ways to moneymax is to make sure your savings are earning a competitive interest rate.

There's still a significant difference between what some traditional savings accounts pay and what you may be able to earn elsewhere. For example, the FDIC reported a national savings rate of just 0.39% as of March 2026.

Moving a sizable emergency fund from an account paying next to nothing to a competitive high-yield savings account could make a meaningful difference. But constantly moving your savings because another bank offers an APY that's 0.10 or 0.20 percentage points higher may not.

Consider the actual dollar amount involved. A 0.20 percentage-point difference on a $10,000 balance amounts to roughly $20 in additional interest over a year, assuming rates and the balance stay the same. Decide whether that amount is worth opening another account, changing transfers and managing another financial institution.

Also read the fine print before chasing an attractive advertised APY. Check for minimum balance or activity requirements, monthly fees and whether the rate is promotional. If you're keeping cash at a bank, you can also confirm that the institution is FDIC-insured.

Spending more to maximize rewards

Credit card rewards can be another valuable moneymaxxing strategy. If you're already going to spend $500 on groceries, earning points, miles or cash back on the purchase can help you get something extra from money you were going to spend anyway.

The problem is when earning the reward starts influencing how much you spend. You might buy something you weren't planning to purchase to trigger a bonus category or justify spending more because you're "getting points." At that point, the rewards aren't necessarily saving you money.

Carrying a balance can be even more costly because interest charges can quickly outweigh the value of the rewards you earned. Ideally, rewards cards should complement spending that's already in your budget, rather than encourage additional purchases.

Making your finances unnecessarily complicated

There's nothing inherently wrong with having multiple accounts, particularly when each one has a clear purpose. But complexity comes with a cost.

More accounts can mean more passwords, statements, payment due dates and rules to remember. It can also increase the chances of overlooking a fee, missing a credit card payment or forgetting about a subscription tied to an old account.

Sometimes there's value in consolidation, even when it isn't mathematically optimal. Earning slightly less interest or cash back may be a reasonable trade-off if your financial system becomes significantly easier to manage.

Focusing on small wins while ignoring big expenses

Moneymaxxing can make finding savings feel like a game. Saving $8 on a subscription or earning an extra $15 in cash back can provide an immediate win.

Just don't let the small victories distract you from the expenses that can make a much larger difference. You might save $100 a year by trimming a few subscriptions, for example, but potentially save much more by shopping around for auto or homeowners insurance, refinancing expensive debt when appropriate or reducing investment fees.

Start with your largest recurring expenses and highest-cost debt. Once those areas are in good shape, smaller optimizations can be the icing on the cake.

Letting optimization take over your life

Moneymaxxing can become counterproductive when every purchase starts feeling like a math problem.

Maybe the grocery store 20 minutes away has slightly cheaper prices, but the closer store saves you time. Or perhaps you could redeem travel points more efficiently by changing your vacation dates, but the original dates work much better for your family.

The mathematically optimal choice isn't automatically the right one. Money is ultimately a tool that can help you create security and support the life you want to live. Spending more for convenience, an experience you value or something that genuinely improves your quality of life isn't necessarily a financial mistake.

How to moneymax without overdoing it

The goal doesn't have to be squeezing every possible cent from your finances. Instead, look for changes that provide a meaningful return without requiring constant attention.

Before optimizing a financial decision, ask yourself:

• How much will I actually save or earn? Calculate the potential dollar amount instead of focusing only on percentages, points or advertised savings.
• How much time or effort will this require? Saving $20 may not be worth spending three hours opening accounts, tracking promotions and moving money around.
• Does this make my finances simpler or more complicated? A strategy you'll easily maintain may ultimately be more valuable than one requiring constant monitoring.
• Am I sacrificing something I value just to maximize the numbers? Your time, convenience and enjoyment have value, too.

Some of the most useful moneymaxxing strategies are relatively boring, and that's a good thing. They can include moving idle cash to an account paying a competitive rate, automating retirement contributions, eliminating unnecessary fees, reviewing major recurring expenses once or twice a year and taking advantage of employer benefits you're already entitled to receive.

These moves allow you to optimize your finances once and continue benefiting without making money management another full-time job.

Get more from your money without overdoing it

Moneymaxxing can be a useful reminder to pay attention to where your money goes and what you're getting in return. But you don't need to extract maximum value from every dollar you spend.

Focus your energy on financial decisions that can improve your bottom line and make your overall plan stronger. And when an extra few dollars isn't worth the time, hassle or sacrifice required to capture it, give yourself permission to leave some of your money "unoptimized."

Moneymaxxing can help you get more from the money you already have, but individual optimizations work best when they support your bigger financial goals. If you want help deciding where to focus your time and money, a financial planner can help you look at the full picture and prioritize the moves that could have the greatest impact.

Use the tool below and connect with the vetted financial professional today:

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Older generations hold $124 trillion in assets they plan to pass on to loved ones and charity over the next two decades. Many will wait until they are gone to share the wealth, but some are opting to give while they live.

It makes sense. A new survey conducted by Morning Consult on behalf of Kiplinger found that, when asked what they would want an inheritance used for, both parents and adult children said practical things such as paying down debt, buying a home or securing a retirement.

"There's a recognition that the money would be more useful in their 40s and 50s than in their 60s and 70s," said David Blanchett, head of retirement research at Prudential. "But if you wait to give them that money, you won't get to see it in action. You won't know what impact it has."

For retirees who plan to wait until they die to pass on their inheritance, fear of outliving their money can create paralysis. After all, people are living well into their 80s, which means their money needs to last longer. "There's always an element of what if I need it, I won't be able to take it back," says Michael Conrath, JPMorgan's chief retirement strategist. "Legacy and retirement are connected in terms of the math and in terms of the emotions."

To overcome the fear of running out of money, Conrath says to break retirement savings into three buckets — stable, variable and legacy. The stable bucket is for recurring bills such as rent, food, utilities and healthcare, while the variable bucket is for travel, hobbies, entertainment or other wants. The third bucket is for legacy, which is where the giving comes from.

"Once you have those two parts covered, it really gives people the freedom and the comfort knowing they have the capacity to gift money," said Conrath. "It's a way to remedy some of the fear."

Benefits of giving while you're living

There are several reasons to favor giving while you're alive, for both the giver and the receiver.

Benefits for givers:

• They can reduce the total size of their taxable estate before passing away, minimizing potential state or federal estate taxes.
• They can gift up to $19,000 per recipient in 2026 (married couples may gift up to $38,000 to an individual) without triggering gift tax filings or dipping into their lifetime exemption.
• They may gift appreciated stock to a qualified charity or an heir, thereby avoiding capital gains tax on the stock's growth.
• They may pay medical or tuition bills directly to the institution (which bypasses the $19k limit entirely), or fund a 529 plan.
• They experience the immediate joy and satisfaction of supporting loved ones during key life milestones.

Benefits for heirs:

• They can use the funds immediately to improve their financial health.
• They don't have to pay taxes on it; the federal tax code doesn't treat gifts as taxable income for the recipient. (Appreciated stocks are the exception.)
• Direct gifts eliminate potential delays and legal complications associated with going through probate court after a donor passes away.

How to give while you live

If giving while living sounds like something you want to do but you aren't 100% on board, Blanchett says to test the waters with small gifts. You don't have to give your heirs their entire estate, but you could help your adult child with a down payment on a home or pay for daycare or college tuition for your grandchild.

It can be something as small as a cash gift or an extra deposit into the 529 account. Not only can you help them now when they need it, but you're also preparing them to manage the inheritance they will receive later.

Don't sacrifice your retirement

There is a lot of joy and satisfaction in giving while living, whether it's to your adult children, grandchildren or a beloved charity. Don't start writing checks willy-nilly, though. If you plan to rely on Medicaid, you could disqualify yourself by giving monetary gifts during the 5-year look-back period. Be certain you have a locked-down plan for how to pay for long-term care, as those costs have ballooned in recent years.

In other words, giving can't be at the expense of your retirement. As Pam Krueger, founder and CEO of Wealthramp, warns, you don't want to end up giving too much and being broke.

"The best answer for most people is you don't have to do it all now, and you don't have to do it all later," said Krueger. "Protect your own financial security first and foremost, and then say, 'OK, I can give this much now while I'm alive and this much when I'm dead.'"

Editor's note: Want more help making this decision? Take our quiz on giving while you live vs waiting until death.

We know this can be a contentious conversation. If you want to share your opinion, reach out to us at KipInheritanceTalk@futurenet.com.

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Give while you're living or wait until you die? That's the choice for many retirees sitting on a sizable nest egg as they live out their golden years.

At last check, an estimated $124 trillion in assets are expected to be passed on in the Great Wealth Transfer, according to research firm Cerulli Associates. While most of it will go to heirs after their deaths, many people want to give while they are still alive.

After all, a new Morning Consult survey conducted on behalf of Kiplinger found that when asked what they would want an inheritance used for, both parents and adult children cited practical uses such as paying down debt, buying a home or securing retirement, all of which can benefit heirs now or in the future.

On the one hand, if you wait until you die, the money has more time to grow and compound; on the other, if you give while you live, you can enjoy the fruits of your labor or help someone now. You can also do a little bit of both: give a little while you are alive and leave the rest for when you're gone.

Which giving approach works best for you depends on your financial goals, risk tolerance and personal values. To determine which type of giver you are, take our quiz.

Editor's note: We know this can be a contentious conversation. If you want to share your opinion, reach out to us at KipInheritanceTalk@futurenet.com.

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Gen Xers and millennials are in line to receive trillions of dollars in the Great Wealth Transfer, but first the money must pass to the surviving spouse. Known as horizontal wealth transfer, women will benefit more, as they statistically outlive their husbands by an average of five years.

Of the $124 trillion in wealth expected to transfer hands during the next two decades, $54 trillion will move horizontally to the spouse, according to a 2024 Cerulli Associates report. Once the widow spends money on healthcare, travel and other expenses, what's left will go to the younger generations.

Inheritance of any size might be welcome, given that many Gen Xers and millennials, based on a new survey conducted by Morning Consult on behalf of Kiplinger, don't expect any windfall. That's even though 47% of parents expect to leave a meaningful one.

This gap between expectation and reality highlights a crucial step in the wealth transfer process: The horizontal shift between spouses. Understanding why it occurs and how surviving spouses can plan for it is essential to preserving family wealth for the next generation.

Why the horizontal wealth transfer happens

Making sure your spouse is taken care of usually drives horizontal wealth transfer, but if that's not enough, the tax code offers incentives to stay motivated. The Unlimited Marital Deduction lets an individual transfer an unlimited amount of assets to the surviving spouse free of estate and gift taxes. If the wealth was passed to an adult child or children upon the first spouse's death, it could trigger estate taxes in certain circumstances.

"The typical process is you leave your money to your spouse, and after that it goes to the kids," said Derrick Longo, a wealth adviser at Savant Wealth Management. "But there's no default right answer. It's very specific for every family and situation."

If you're a surviving spouse, do this

In the Great Wealth Transfer, surviving spouses will be the first to receive the wealth; they need to plan now to preserve it later.

Take the so-called widow's tax penalty for starters. This occurs in the year after a spouse dies and the surviving partner starts filing as a single taxpayer. At that time, their tax brackets are reduced by 50%, and the standard deduction is cut in half, forcing them to pay more taxes if they don't plan for it. But if they do prepare, they have options, including:

• If the surviving spouse has dependent children, they can delay filing as single for two years. After that, they might choose to file as head of household.
• They can file a married filing jointly return for the calendar year in which the spouse passed away.
• Space out income-generating events such as retirement withdrawals and Roth conversions from the inheritance.

On the positive side, the surviving spouse gets a big tax break on inherited real estate, stocks and taxable investment and savings accounts. The value of the assets resets to the current market value on the date of death, erasing capital gains built up over the lifetime (known as a "step-up" in cost basis). If you sell soon after, you might owe little to no capital gains tax, depending on state property laws and how the assets were titled.

The surviving spouse can also roll an inherited IRA or 401(k) into their own name, delaying required minimum distributions (RMDs) until they turn age 73 or 75, depending on their birth year. If a child inherits that same account, the 10-year rule usually applies, requiring them to empty the account (and pay the taxes) within a decade.

Manage healthcare to preserve future wealth

Expected drains on future generations' inheritances include long-term care and healthcare costs. In Kiplinger's survey, 24% of parents fear these costs will erode their wealth.

It makes sense. Fidelity estimates the average 65-year-old will spend about $185,000 on healthcare in retirement, and that doesn't include long-term care, which can get expensive. The average annual cost for a private room in a nursing home was $129,575 in 2025, while an in-home aide cost $80,080. Money once earmarked for the kids can quickly become money spent on aging without the proper planning.

When it comes to covering healthcare expenses in retirement, surviving spouses can take out long-term care insurance, self-fund future healthcare expenses from their savings, health savings accounts (HSAs) or investments.

Which option makes sense for you depends on your health, longevity and finances.

For instance, long-term care insurance might make the most sense if:

• You can afford the premiums.
• Your family or trusted friends can handle the paperwork and claims process for you.
• You crave peace of mind that comes with insurance.
• You're healthy enough to meet underwriting guidelines.

Meanwhile, self-funding your long-term care needs might make the most sense if:

• You're healthy.
• Your family health history is largely free of chronic or heritable debilitating illnesses.
• You've saved enough for your retirement.
• You have liquid assets you can access easily without triggering major tax consequences.

Figure out how to spend to keep the estate growing

An inheritance can bring a desire to spend more, but to ensure the surviving spouse has enough to go around, a retirement spending strategy is essential to the planning process. Spouses can use several withdrawal strategies beyond the traditional 4% rule, including the bucket approach, the flooring strategy and a delayed Social Security collection plan, among others.

If you need help staying disciplined and want to worry less because you know where your money is and how much you can spend, the bucket approach might be for you.

If you want a steady monthly income or are hesitant to spend because of stock market fluctuations, the me-first or flooring method of spending might be for you.

For surviving spouses who want to maximize cash flow later on, the delaying Social Security strategy could be the best approach.

The idea is to find a plan that matches you and stick to it. That will ensure you have enough money to live your ideal retirement and have some left for the remaining heirs.

Plan today to preserve for tomorrow

The horizontal wealth transfer is the first stop of the Great Wealth Transfer, and it's set to benefit women primarily. With $54 trillion expected to pass to surviving spouses, that's a lot of money to protect, preserve and grow.

The good news is the next-in-line spouse doesn't have to wait until their partner is gone to prepare. A little foresight now can help ensure the windfall lasts for generations to come.

More Trillion Dollar Talk

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A personal budget can help you rein in spending, meet saving goals and be smarter with your money, but sticking to a budget can be a real challenge. If you’re struggling to budget, it may be because you’re not using the method that’s best for you.

Some people need clear limits set for every dollar, while automating financial priorities and spending what remains works better for others. There’s no single "right" way to budget, and finding the best method for your goals and habits can increase your chances of success.

Let’s take a look at three distinctly different budgeting methods, including 50/30/20, zero-based budgeting and paying yourself first. You might have success with one of these approaches.

1. The 50/30/20 budget: Best for keeping things simple

If you're not up for tracking all of your spending or recording every purchase, the 50/30/20 budget offers a simpler approach. It gives you some financial guardrails without requiring you to account for every dollar you spend.

With this method, 50% of your income goes toward essentials, 30% toward wants and 20% toward savings and debt repayment.

These percentages are a starting point, not an absolute rule. Depending on your income, housing costs and financial goals, different percentages may be more realistic. You can adjust the framework to better fit your finances.

This percentage-based budget may be a good fit if you want a straightforward framework without constantly monitoring your spending.

2. Zero-based budgeting: Best for taking control of your spending

Zero-based budgeting provides a stricter framework that helps you account for every dollar you earn. With this method, every dollar of income is assigned a job, whether it goes toward bills, everyday spending, savings or investments.

Let's say you bring home $7,000 per month. You budget $2,000 for your mortgage, utilities and other housing costs, $500 for food, $1,000 for recurring bills such as internet and car insurance and $500 for health insurance and medical expenses. You set aside another $500 for wants, such as new clothes or dining out. Each month, you invest $1,500 and put the remaining $1,000 into savings.

$7,000 income - $7,000 assigned to expenses, savings and investments = $0 left unassigned

This method can help you see exactly where your money is going and spot areas where costs have crept up. For example, if you're spending more on groceries than you used to, your budget can make that increase easier to identify. You can then adjust other spending categories to account for the higher expense.

While zero-based budgeting can provide a clear picture of your overall spending, it requires more tracking and regular adjustments than other budgeting methods.

Zero-based budgeting may be best if you want tighter control over your cash flow or are trying to rein in your spending.

3. Pay yourself first: Best for prioritizing savings

The pay-yourself-first method puts saving ahead of spending. Instead of waiting to see how much money is left at the end of the month, you set aside money for savings, retirement, investments or another financial goal first.

Automatic transfers and retirement contributions can make this approach largely hands-off. It may be particularly useful if your expenses are already manageable but you want to increase your savings without maintaining a detailed budget.

However, paying yourself first won't solve underlying overspending issues. If you regularly don't have enough money left to cover your expenses, another method, such as zero-based budgeting, can help you identify where your money is going and where you may need to cut back.

Paying yourself first may be a good fit if you want to prioritize saving and prefer a low-maintenance approach to budgeting.

Which budgeting method is right for you?

The right budgeting method depends on what you want your budget to accomplish. Start by identifying the part of your finances that gives you the most trouble.

If you routinely wonder where your money went, zero-based budgeting can provide more visibility and control. If your spending is generally under control but your savings goals keep getting pushed aside, paying yourself first can make saving a priority. And if detailed budgeting feels like too much work, the 50/30/20 method can give you structure without requiring you to track every purchase.

You also don't have to follow one method perfectly. You might use the 50/30/20 framework to set your overall spending targets while automatically paying yourself first each payday. As your income, expenses and goals change, your budgeting strategy can change with them.

Whichever approach you choose, consistency matters more than following a particular formula. A budgeting method is only useful if it's realistic enough to stick with over time.

The best budget is one you can stick with

The best budget for you isn’t necessarily the most detailed or complex one; it’s the system you’ll actually use. Choose a budgeting method that provides enough structure to help you reach your financial goals without making managing your money an unnecessarily complicated chore that you’ll dread.

A budget can help you manage your money day to day, but you may want additional guidance when you're balancing bigger financial goals. A financial adviser can help you look at your budget as part of your broader financial plan, from building savings to investing for the future.

Use the tool below to connect with a financial professional who can help you evaluate your goals and next steps.

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You might not check the 10-year Treasury yield every morning, but its movements can still affect your finances, especially if you're preparing to buy a home, finance a car or take on other debt.

Treasury yields represent the return investors receive for lending money to the federal government. The 10-year Treasury note gets particular attention because it serves as an important benchmark for longer-term borrowing costs, including mortgage rates.

Lately, yields have been moving higher. The 10-year Treasury yield reached 4.93% on September 18, up from 4.19% at the beginning of the year, according to U.S. Treasury data. Higher oil prices, inflation concerns and government borrowing have all contributed to pressure in global bond markets.

For consumers, however, a higher Treasury yield doesn't mean every interest rate will immediately rise. Mortgages, auto loans and credit cards respond to different parts of the interest-rate market. Here's what rising yields could mean for your money.

Higher Treasury yields could push mortgage rates up

If you're watching Treasury yields because you're hoping to buy or refinance a home, the 10-year Treasury is particularly important.

Thirty-year fixed mortgage rates tend to move in the same general direction as the 10-year Treasury yield. That's because investors generally demand a higher return for mortgage-backed securities than they do for relatively low-risk Treasuries.

That also means mortgage rates can rise or fall without the Federal Reserve changing its benchmark interest rate. The bond market is constantly adjusting to new expectations for inflation, economic growth and future Fed policy.

That distinction is especially important following the Federal Reserve's September meeting. The Fed raised its benchmark interest rate by a quarter percentage point to a range of 3.75% to 4%, its first rate hike since 2023, as inflation remains elevated. While the Fed doesn't directly set mortgage rates, its decisions and outlook can influence investor expectations and Treasury yields.

Currently, the average 30-year fixed mortgage rate is 6.95%, according to Freddie Mac. That's higher than the 6.26% average from a year earlier.

Even a relatively small increase can make a noticeable difference for borrowers.

For example, consider a $400,000, 30-year fixed mortgage.

• At 6.95%, the monthly principal and interest payment would be approximately $2,648.
• If the rate increased by 0.25 percentage points to 7.20%, the payment would rise to about $2,715, roughly $67 more per month.
• At 7.45%, or half a percentage point higher, the payment would be about $2,783, adding roughly $135 per month.

That's before accounting for property taxes, homeowners insurance or homeowners association fees.

For buyers already stretching their budgets, higher mortgage rates can reduce purchasing power even if home prices don't increase. And while you may be able to refinance your mortgage later if rates decline, there's no guarantee that will happen on your preferred timeline.

If you're preparing to buy a home or refinance, comparing rates from multiple lenders can help you see what's available now. Use the tool below to explore current mortgage rates and compare your options.

Car loan rates could remain expensive

The relationship between Treasury yields and car loans isn't as straightforward. Auto loan rates aren't directly pegged to the 10-year Treasury. However, lenders operate within the broader interest-rate environment, so higher market rates and borrowing costs can contribute to more expensive financing.

Consumers are already paying relatively high rates for auto loans. Average interest rates during the first quarter of 2026 were 6.39% for new-car loans and 11.19% for used-car loans, according to Experian.

Your actual rate can vary significantly. Auto lenders generally consider your credit score and history, income, existing debts, down payment, loan amount, loan term and whether you're purchasing a new or used vehicle when setting your rate.

That makes improving your credit and shopping around especially important. Let’s say you're financing $30,000 over five years. At 6.39%, your monthly payment would be about $585, and you'd pay roughly $5,126 in interest over the life of the loan.

Raise the rate by one percentage point to 7.39%, and the payment increases to approximately $600 per month, while total interest rises to about $5,974. That's nearly $850 more in interest.

Before accepting financing at the dealership, consider getting preapproved through a bank or credit union. The Consumer Financial Protection Bureau recommends comparing offers before visiting a dealer, and notes that borrowers may be able to find better rates or terms by shopping multiple lenders.

Credit card rates work differently

Rising Treasury yields aren't necessarily a sign that your credit card APR is about to increase. That's because most variable-rate credit cards are tied more closely to the prime rate than to longer-term Treasury yields.

Banks set the prime rate, which typically moves in step with changes to the Federal Reserve's federal funds rate. The prime rate is commonly used as a reference point for credit card loans and other types of borrowing.

A variable credit card might, for example, charge the prime rate plus a set margin. Federal regulations require card issuers offering variable rates to disclose the index or formula used to determine the rate. So, if the 10-year Treasury yield jumps tomorrow, your existing credit card APR won't automatically rise along with it.

There can still be an indirect connection. Persistently high Treasury yields can signal that investors expect inflation or interest rates to remain elevated. That could make meaningful relief for borrowers slower to arrive.

Either way, waiting for lower interest rates isn't much of a strategy if you're carrying high-interest credit card debt. Your interest charges continue accumulating while you wait.

Consider paying more than the minimum whenever possible, directing extra money toward your highest-rate balances or exploring whether a balance transfer or lower-rate consolidation option could reduce your interest costs.

What to do if you plan to borrow soon

Watching interest rates can be helpful, but trying to perfectly time the bond market is another matter.

Treasury yields can move quickly as investors react to inflation reports, economic data, geopolitical events and changing expectations about Federal Reserve policy. A better approach is to make sure a loan works for your budget based on the rates available today.

If you're planning a major purchase, compare quotes from several lenders rather than assuming the first offer is competitive. For mortgages, pay attention to both the interest rate and closing costs. For an auto loan, consider getting preapproved through a bank or credit union before heading to the dealership.

Your credit profile matters, too. Paying down revolving credit card balances, correcting errors on your credit reports and making payments on time can put you in a stronger position when you apply for financing.

Most importantly, run the numbers using today's borrowing costs rather than counting on a future refinance to make an expensive purchase affordable.

Rising Treasury yields don't guarantee that every consumer borrowing rate will move higher. But they are an important signal, particularly for longer-term borrowing costs. If you're preparing to buy a house, finance a vehicle or take on other debt, knowing what's happening in the bond market can give you a better idea of what borrowing could cost, and whether the payment fits comfortably into your budget.

If you're weighing a major purchase or wondering how higher borrowing costs fit into your financial plans, a financial adviser can help you look beyond the monthly payment. The tool below can help connect you with an adviser who can review your goals, budget and other financial priorities.

Use the tool below to connect with a vetted financial professional and get started:

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Verizon is known for offering a variety of deals for wireless customers, and right now, the carrier is promoting several ways to save on your cell phone plan.

The right deal depends on whether you’re keeping your current phone, buying a new one or upgrading an existing Verizon line. Each option comes with different pricing, plan requirements and potential savings.

Before signing up, look beyond the advertised price. Comparing plan requirements, financing periods and the duration of promotional credits can help you understand the total cost and determine which Verizon deal could save you the most. Here’s how Verizon’s bring, buy and upgrade options compare and what to consider before choosing one.

Bring your own phone to lower your monthly cost

If you already have a phone you like, bringing it with you when you switch to Verizon could help keep your monthly costs down. Verizon's Simplicity plan normally costs $45 per line per month with Auto Pay, but new customers who switch to Verizon can currently get the plan for $30 per line per month with Auto Pay and the Switcher Discount.

The plan includes unlimited talk, text and smartphone data, access to 5G Ultra Wideband, 10 GB of high-speed mobile hotspot data per month and satellite texting. After you use the 10 GB of high-speed hotspot data, you can continue using your hotspot at speeds of up to 1 Mbps for the remainder of the billing cycle.

If you're looking for extra phone plan perks, Verizon also lets Simplicity customers add entertainment and other services. Options include Netflix and HBO Max, YouTube Premium and Apple Music Family, with some bundles costing less than purchasing the included subscriptions separately.

To qualify for the $30 promotional price, you'll need to switch to Verizon and enroll in Auto Pay. Taxes and fees are extra, so your actual bill will be higher. If you're bringing your own device, make sure it's unlocked and compatible with Verizon's network before switching. You can check your device on Verizon's compatibility tool.

For comparison, Verizon's Unlimited Welcome plan starts at $65 per month for a single line with Auto Pay and paper-free billing. At the current $30 promotional Simplicity rate, that's a difference of $35 per month, or $420 over a year. Keep in mind that the comparison depends on qualifying for the Simplicity promotional rate.

Buy a new phone when switching to Verizon

If you need a new phone, Verizon is currently offering discounts and financing on several popular smartphones. Here are a few deals to consider:

• Samsung Galaxy Z Fold8: Verizon is offering a $460 instant credit on the Samsung Galaxy Z Fold8, bringing the price down from $1,899.99 to $1,439.99. You can finance the phone for $29.99 per month for 48 months at 0% APR. New customers who qualify for Verizon's $30-per-month Simplicity promotional rate would pay about $60 per month for the phone and service, before taxes and fees.
• Apple iPhone 18 Pro: The Apple iPhone 18 Pro starts at $33.33 per month for 36 months at 0% APR. Customers who want to upgrade more frequently can choose the Phone + Flex Upgrade option for $50 per month. It allows you to upgrade after a year, or earlier once you meet the program requirements, and includes two monthly TravelPass Days, Premium Visual Voicemail and Global Choice.
• Samsung Galaxy S26 Ultra: Verizon is offering $340 off the Samsung Galaxy S26 Ultra, bringing the price down from $1,299.99 to $959.99. You can finance the phone for $26.66 per month for 36 months at 0% APR. Verizon also offers a $50-per-month Phone + Flex Upgrade option for customers who want the ability to upgrade more frequently.

As you compare these options, pay close attention to the financing and promotional requirements. Verizon offers multiple financing periods on some devices, so the advertised monthly payment can vary depending on how long you take to pay off the phone. While these financing options carry 0% APR for qualified customers, taxes and fees may be extra.

Also consider what happens if you leave Verizon before your phone is paid off. You may have to pay the remaining device balance, and any promotional credits tied to your service could end.

A discount of several hundred dollars on a new phone can be appealing, but the device price is only part of the equation. Compare the total cost of the phone and required service, and consider whether you will actually use the features included with the plan or upgrade option.

Upgrade your phone if you're already with Verizon

Verizon also offers upgrade and trade-in deals for existing customers. Eligible devices can include smartphones, tablets, smartwatches, basic phones, mobile hotspot devices and netbooks.

Depending on the promotion, Verizon may provide the trade-in value as an account credit, Verizon gift card or recurring bill credits spread over a specified period.

A large advertised trade-in value does not necessarily mean you'll receive the full amount upfront. If the value is provided through monthly bill credits, you may need to remain on an eligible plan for the entire promotional period to receive the full benefit. Before upgrading, review the offer terms, compare the trade-in value and consider whether the required plan and monthly cost make sense for how you use your phone.

Which Verizon option could save you the most?

How can you best save with Verizon deals? Bringing your phone may be best if you have a newer paid-off device and want to minimize your monthly costs with an affordable monthly plan. Buying a phone might be attractive if you’re planning to switch mobile providers, you need a new phone and you can qualify for a strong device promotional deal. Upgrading might make sense if you have a valuable trade-in, are already a Verizon customer and were planning to stay with Verizon.

As you explore the Verizon phone deals, be sure to compare the total cost that you’ll pay over the promotional period, not just the advertised phone price or monthly rate. Look for extra costs, like taxes and fees, that aren’t included, and make sure you’re choosing a plan that really makes sense for you.

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If you’ve been a Verizon Wireless customer for years, you may have come to like the mobile provider’s comprehensive network coverage and fast 5G speeds. But if Verizon’s plan prices are getting too steep for your budget, you may have an alternative: Visible Wireless.

Visible Wireless is a mobile virtual network operator (MVNO) that runs on Verizon’s network. Visible Wireless is known for its lower-cost unlimited prepaid wireless plans and transparent, straightforward pricing. Switching to the mobile carrier might allow Verizon customers to save money while still keeping the network they’ve used for years.

But switching to Visible Wireless doesn’t make sense for everyone. Before you leave Verizon, it’s important to understand if switching could actually lower your bill and what you might have to give up to save money.

1. Compare the cost

Let’s take a look at how the most similar Visible and Verizon plans compare in cost. The Visible base plan and single-line Verizon Simplicity plan are the most similar plans, so we’ll start by comparing them.

Verizon’s standard Simplicity plan price is $45 per month per line with Auto Pay and paper-free billing ($55 without Auto Pay). The $30 price currently advertised requires a $15-per-month Switch & Save or Bring a Number discount. It includes 5G Ultra Wideband coverage, 10 GB of mobile hotspot data and talk, text and data to Mexico and Canada.

The base Visible plan normally costs $25 per month, though eligible new customers can currently get it for $19 per month with a promotional offer. The Visible plan includes unlimited talk, text and data on Verizon’s 5G and 4G LTE networks and unlimited talk and text in Mexico and Canada. While Verizon’s Simplicity plan limits mobile hotspot use to 10 GB per month, the Visible plan includes unlimited mobile hotspot use.

If you need multiple lines, you'll want to compare the total cost carefully. Verizon's Simplicity plan normally costs $45 per line with Auto Pay, though qualifying lines can receive a $15 monthly discount. Visible plans are designed for individual lines, so you'll need a separate account for each line you want to move to Visible.

This is just a base comparison, and you’ll need to compare your current Verizon plan to a comparable Visible plan to see how much you might save. Don’t forget to factor in any discounts you currently receive from Verizon when calculating your potential savings.

2. Consider coverage and data

Though Visible uses Verizon's network, the service experience isn't necessarily identical. Customers on Visible's base plan may experience temporarily slower speeds when the network is congested because their data can be deprioritized behind other traffic. Speeds return to normal once network demand eases.

Pay attention to data, hotspot access and other important features, too. The base Visible plan includes unlimited data, talk and text. Visible+ includes unlimited premium data on Verizon's 5G Ultra Wideband network, plus 50 GB per month of premium data on 5G and 4G LTE when Ultra Wideband isn't available.

According to Visible, premium data isn't slowed because of data prioritization, which can help customers avoid the congestion-related slowdowns that may affect the base plan.

Visible+ normally costs $35 per month, though eligible new customers can currently get it for $29 per month. At the promotional price, you'd save just $1 per month compared with Verizon's promotional $30 Simplicity plan.

Hotspot access is another difference to consider. The base Visible plan includes unlimited mobile hotspot data at speeds up to 5 Mbps, while Visible+ increases hotspot speeds to up to 10 Mbps. Verizon's Simplicity plan includes 10 GB of high-speed hotspot data, with speeds reduced to up to 1 Mbps after that allowance is used.

Consider how you typically use your phone, including how often you rely on mobile hotspot data, when deciding which plan offers the better fit and value.

3. Look at what else you're getting

Visible offers lower-cost plans, but they don’t include some of the perks that Verizon offers. Though Visible offers deals like savings on plans when you purchase a year of service upfront, Verizon offers a more extensive selection of deals.

Verizon generally offers a broader selection of phone promotions and upgrade offers. Visible also offers device deals and financing, but shoppers looking for promotions on the newest phones should compare both carriers before switching.

The mobile providers also differ in customer service. Verizon has brick-and-mortar locations where you can receive in-person help, plus you can get help by phone or chat. Visible’s customer service is limited to online and chat options. Visible doesn’t operate brick-and-mortar locations, but its SIM cards are available at Best Buy stores.

All in all, you’ll have more options with Verizon, including a broader selection of plans that often come with more perks, like free streaming services. That doesn’t necessarily mean that a move to Visible isn’t worth it, though, especially if you’re paying for phone plan perks that you aren’t using.

Is switching from Verizon to Visible worth it?

If your priority is to lower your monthly phone bill and save on your cell phone plan, switching to Visible might make sense. However, Verizon may still offer a better overall value for families or customers who use its discounts and perks, or who plan to upgrade their phones more often.

Take some time to compare your actual bill and your potential annual savings. Think about how you use your phone and the services that are most important to you before you decide to switch to Visible.

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It's a question that comes up often among new parents and there's surprisingly little information out there to answer it. With the exorbitant cost of daycare, would you be crazy for even considering having one parent quit their job to stay home with the baby?

The idea of willingly giving up an entire second income can feel scary. How do you know whether you're considering all the right factors to feel confident in your decision one way or the other?

"People run the numbers, get an answer they could genuinely live with and still can't decide," David Fisher, Founder and CEO of Summit Income Planning Group, tells Kiplinger. "Because they are waiting for a version of the choice with no downside. That version doesn't exist. Every real option carries a cost."

How can you accurately estimate the costs and benefits of transitioning to a single income and make the move as seamless as possible if you do decide it's the right one? Here are seven financial moves to make that can help you make the best decision for your family.

1. Figure out the real change in income and spending

The first step in deciding whether a single income is feasible is getting a realistic estimate of how much your actual take home pay will be and exactly how your expenses will change. The real change in your household income and spending is not simply the second income minus childcare costs.

"It's the income minus the costs of things like childcare, commute, meals, and clothes," Fisher says. "The second income is also typically taxed at a higher tax bracket if the household income is high enough."

In other words, you're not just saving on daycare. The income of the parent who continues working will also be taxed less, as your household income will likely fall into a lower tax bracket and you'll be adding a new dependent.

Meanwhile, some expenses will go up. If you're putting the entire family on the working partner's health insurance, for example, expect a higher deduction for that from future paychecks.

Some additional ways you might be able to save by having one parent stay home include:

• Getting rid of the second car if there's a practical way for you to share one car when there's only one commuting parent.
• Canceling or scaling back on a professional cleaning service if you currently pay for one.
• Reduced fuel and maintenance expenses now that only one parent is commuting.
• Reduced spending on dining out if you tended to buy lunch outside while working.

Beyond changing health insurance costs, additional expenses and opportunity costs to consider when giving up one job include:

• The loss of any contributions the non-working partner was making to a 401k or other retirement account.
• The lost 401k matching contributions if the non-working partner was getting those.
• The impact on social security benefits of having fewer earning years in the stay-at-home partner's work history.

Doing the math on the whole picture can help you make a more informed decision and plan ahead for any long-term impacts this decision will have on your finances.

2. Get your life insurance in order now

When moving to a single income, your household no longer has a "backup earner" so getting life insurance to replace that income if anything were to happen becomes more important than ever.

But it's not just the working partner that needs coverage. "Insure the parent who's at home, too," Fisher advises. "People often feel it's unnecessary because there is no income but there absolutely is a cost to replace full-time childcare and household management."

Since you'll need coverage for both, rather than take out two separate policies, you can look into something called survivorship life insurance. Sometimes more bluntly referred to as "first to die" life insurance, this is a single policy that will provide a payout to either spouse in the event that the other passes.

3. Make any moves that require a credit application before the second income is lost

If you're starting a family, you might also be looking to buy your first home or move into a larger one. If not a home purchase, you might be looking into upgrading to a more family-friendly car.

Fisher recommends that couples "do anything that requires a credit application while both incomes are still on the paperwork." The higher household income will help you lock in better rates than you would qualify for on half the income.

4. Do a trial run of your single income budget

"For a few months before anyone resigns, operate the household on the single income and save 100% of the other," Fisher advises. "You'll learn more doing that than any projection."

This means living on the realistic budget you came up with in step one. Although, there will be some differences. For example, if getting rid of a car is part of your plan, you won't be able to eliminate that extra expense just yet. Meanwhile, if you're expecting a new baby, you won't be spending on diapers, clothes and other newborn expenses just yet either.

But try to get as close as you realistically can to the budget you sketched out for a few months before you actually need to make the decision.

Not only will this help you figure out if you can really make it work, but you can also make adjustments based on real world experiences during the trial period.

Even better, you can stack the cash from the second income in savings during the trial period. These savings can help you achieve step five below in a matter of months.

5. Double your emergency fund

The standard recommendation is to save three to six months of income in an emergency fund. When you're relying on a single earner, however, you want a more generous cushion because you won't have a backup income to rely on in the event of a job loss.

Instead of three to six months, aim for six to 12. As mentioned earlier, doing a trial run of your single-income budget while both spouses are still working can help you achieve this new number quickly.

To make it grow even faster, stash those extra savings in a high-yield savings account. You can use the tool below, powered by Bankrate, to find the best rates available right now:

Your goal can be to commit to the trial run for as many months as it will take to double your emergency fund. After that, you can decide whether that budget is sustainable long term.

If you decide it is, you've now got the emergency fund needed to take the leap. If you decide it isn't, you've got a generous chunk of extra savings you can use to offset future childcare costs or put toward other financial goals.

6. Make a "return to work" plan if you want that option

Sometimes, a couple might decide to make the transition temporary. One parent will stay at home during the early childhood years to avoid the daycare costs, but plan to return to work once the child is old enough to go to school.

If the plan is to ultimately return to work later, the stay-at-home partner should be planning for that return before they resign. The best way to do that is to transition to part-time or freelance work during the stay at home period.

"A resume with a reduced hours period reads completely differently than one with a five year blank," Fisher explains. When it comes time to job hunt again, the stay-at-home parent will have an easier time explaining those reduced hours rather than an extended gap.

The cash flow from that freelance or part-time work can also help pad the household budget.

If working reduced hours isn't feasible, at least make sure to maintain any certifications or make time for continuing education and networking during the stay at home period if you want to keep the door open for returning to work later.

7. Talk frankly about the shift in power dynamics that will happen

This isn't purely a financial decision. It will also have an impact on your relationship as one partner becomes fully financially dependent on the working partner.

To avoid the potential for that shift to create tension and conflict in the relationship, you should discuss how money and household work is going to be handled now and put the tools in place to make it feel fair.

For example, the non-working parent shouldn't be expected to be solely responsible for all household labor around the clock. Find ways to make sure that both parents are getting time to rest and relax throughout the week. Moreover, financial decisions should continue to be made as a couple, even though only one person is bringing in the income.

Talk openly now about how you're both going to make sure that happens instead of waiting for imbalances and conflicts to emerge later.

Thinking about giving up a second income?

Before making the change, consider talking with a financial adviser. They can help you model different scenarios, identify financial gaps and build a plan for living on one income without losing sight of your long-term goals.

Use the tool below to connect with a vetted financial professional today:

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In the hectic pace of everyday life, it's easy to lose sight of the bigger financial picture. You may have your 401k contributions set and maybe even an automatic monthly transfer to your savings account keeping you on track with your long term goals.

But it's still easy to fall into financial traps that slow down your progress toward your goals and put unnecessary pressure on your monthly budget.

From money behaviors that hold back financial success to those little purchases here and there that add up to a larger chunk of your cash than you realize, here are five common financial traps and some tips for pulling yourself out of them.

1. Keeping your emergency fund in a low yield savings account

There is a well earned sense of accomplishment you feel once you hit your target emergency fund number. But too often, savers get so focused on how much they're putting into savings each month that they don't think about how much they're earning on those savings.

But a high-yield savings account does a lot of important work for your emergency fund:

• A competitive interest rate can help your emergency savings keep pace with inflation. While it might not fully offset rising prices, earning more interest helps limit the loss of purchasing power over time.
• The interest you earn grows your emergency fund without requiring additional contributions. If you eventually need to withdraw money for an unexpected expense, that extra interest means you’ll have a little more available when you need it.
• Once your emergency fund is fully funded, the interest it earns can support other financial goals. You could leave it in the account as an extra cushion or periodically move the excess toward retirement, investments or another savings goal.

So if you just opened whatever savings account your current bank happened to offer, take a few minutes to compare your current interest rate to what you could be earning elsewhere.

You can start by using the savings tool below to search for some of the best high-yield savings accounts available right now:

2. Lifestyle creep

If you feel like you're living paycheck to paycheck despite your income growing over the past few years, you might be dealing with lifestyle creep. This happens when you start to spend a little more each month as you earn more because, technically, you can afford it.

But do you actually want that hard-earned raise you got to go toward a few extra nights of takeout or a more expensive car note? Or do you want it to go toward a more luxurious retirement and better protection from financial emergencies?

While there's nothing wrong with using some of your money to enjoy your life now, it's important to stick to a budget and be intentional about where each dollar goes, even when budgeting is no longer about just surviving to the next paycheck.

If you feel like your money is disappearing without knowing where it's all going, there are a lot of great budgeting apps that can help you regain control and figure out the best way to fund both your long term goals and your life today.

3. Piling up forgotten subscriptions

It seems like just about everything has a subscription now. It's not just streaming services or the gym you never go to — though those are a big part of the problem. It's also the subscription features in your car, the "subscribe and save" auto-ship orders you forgot about, the software or apps you forgot to downgrade to the free version after the free trial ended.

The average American now spends over $200 per month on subscriptions. That's $2,400 per year that could be going to your emergency fund, your 401k, or even just toward more valuable experiences like vacations or dining out at your favorite restaurant.

Taking just 30 minutes every year to do a subscription audit can potentially free up thousands of dollars each year to go toward more worthwhile purchases and goals.

4. Being too risk averse

Squirreling away all of your money in only the lowest risk assets doesn't feel like a financial trap. It feels safe. But there is such a thing as holding on to too much cash or having too much in your emergency fund.

For money you don't need to touch in five or more years, you should embrace at least a little more risk in order to maximize your wealth-building potential.

One of the easiest ways to manage your anxiety around risk while allowing yourself to allocate a little more of your cash to higher risk, higher yield investments is to work with a certified financial planner. With the right match, you can discuss your concerns and develop an investment strategy that takes advantage of higher return opportunities without pushing you too far out of your comfort zone.

If you don't have a financial adviser yet, you can start the process of finding one with our matching tool below, powered by Bankrate:

5. Letting one spouse make all of the financial decisions

Even if you've been vigilant about avoiding other common financial traps like lifestyle creep or forgotten subscriptions, this one can be especially hard to notice. Whether you're in a single-income or dual-income household, you should always make sure that both adults are equally involved in financial decisions.

Why is this a financial trap? Firstly, because it can cause a lot of strain in the relationship when only one partner fully understands the household's financial picture. It's not fair to expect your partner to help you achieve financial goals that they aren't really aware of.

Secondly, if the spouse who handled the money passes unexpectedly, the one who wasn't involved is going to be left with the monumental task of figuring out the finances while in the depths of grief over that loss.

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One of the perks of retirement is having more flexibility to travel outside the busy summer vacation season. Instead of squeezing a trip into a limited window, you may be able to wait until crowds thin out, temperatures cool and the pace at popular destinations becomes a little more manageable.

That makes fall an especially appealing time to get away. Depending on where you go, you can catch colorful foliage, enjoy seasonal festivals or simply spend more time outdoors without the intense heat of summer.

The best trips don't have to involve rushing from one attraction to the next, either. These five destinations offer a mix of scenery, food, history and culture, along with plenty of opportunities to slow down and enjoy the experience.

1. Vermont for classic New England fall scenery

Few places capture the feeling of fall quite like Vermont. Brilliant red, orange and yellow leaves transform the landscape, while small towns, mountain roads and covered bridges give travelers plenty to see without requiring an action-packed itinerary.

Burlington can make a convenient starting point. Spend time exploring the shops and restaurants around Church Street, enjoy views of Lake Champlain and then take a day trip into the mountains.

The DoubleTree by Hilton is within two miles of Lake Champlain and Church Street Marketplace and offers complimentary parking, making it a practical base if you plan to rent a car and explore the region.

From Burlington, consider making the roughly 40-mile trip to Stowe, where the mountains become the main attraction. You don't necessarily need to tackle a strenuous hike to appreciate the scenery. Stowe Mountain Resort's Gondola SkyRide carries passengers toward the top of Mount Mansfield, Vermont's highest peak, offering a lower-impact way to take in the foliage.

Give yourself time for scenic drives, leisurely lunches and stops in the small towns along the way. That's part of the appeal of Vermont in autumn: The drive itself can be one of the highlights rather than simply a way to get to your next attraction.

2. Park City, Utah, for a quieter mountain escape

Park City may be best known as a winter ski destination, but fall brings a different experience. The hillsides turn shades of yellow, orange and red, and the town settles into a calmer rhythm before ski season begins. Visit Park City describes fall as a time for cool weather, open spaces and everything from strolling Historic Main Street to enjoying spa and wellness experiences.

That makes it a good choice if you like the idea of a mountain vacation but don't want your trip to revolve around strenuous outdoor activities.

Start with Historic Main Street, where you can browse independent shops and galleries, stop for coffee and choose from dozens of restaurants. There are also opportunities to explore the area's mining and Olympic history.

For a more relaxing stay, consider building extra downtime into your hotel plans. The Canopy by Hilton Deer Valley offers mountain views, on-site dining, a sauna and steam room and access to the Jordanelle Express Gondola.

One consideration is timing. Fall can be relatively brief at this elevation, with foliage changing quickly. Visit Park City notes that fall colors generally begin appearing in mid- to late September and can be fully transformed by the second or third week of October.

3. Asheville, North Carolina, for mountains, food and culture

Asheville offers a little of everything: Blue Ridge Mountain scenery, a thriving restaurant scene, arts and culture and one of America's most recognizable historic homes.

Fall color gradually moves through the mountains based on elevation, giving visitors a relatively broad window to see the changing leaves. The Blue Ridge Parkway is one of the area's signature drives, although travelers should check current National Park Service road conditions before heading out because weather, construction and other events can temporarily close sections of the parkway.

You could devote another day almost entirely to Biltmore Estate. The 8,000-acre property includes Biltmore House, gardens and grounds, Antler Hill Village and a winery. Biltmore recommends setting aside at least one full day for a visit, which makes it an easy anchor for a relaxed itinerary rather than trying to squeeze several attractions into one day.

For 2026, Biltmore expects its fall floral displays to peak around mid-October, followed by additional foliage color later in the month.

Staying downtown can make it easier to alternate sightseeing with downtime. The Foundry Hotel Asheville is about a five-minute walk from downtown shops, restaurants and entertainment and roughly 2.5 miles from Biltmore Estate. The historic property has another interesting connection to the city: It occupies a former foundry that produced steel used for the Biltmore Estate.

Asheville can also work particularly well for couples who don't vacation the same way. One person can spend more time outdoors while the other browses galleries and shops, visits Biltmore or settles in for a long meal.

4. Boston, Massachusetts, for history without the summer heat

If your ideal fall vacation involves history, museums and memorable meals rather than mountain trails, Boston deserves a spot on the list. Much of the city's history is concentrated in walkable neighborhoods, allowing you to see quite a bit without renting a car.

The Freedom Trail stretches 2.5 miles and connects 16 historic sites, including Boston Common, Faneuil Hall, the Paul Revere House and Old North Church. You don't have to walk the entire trail at once, either. Visitors can choose individual sites, take a guided tour or explore portions independently.

Break up the walking with a museum visit, lunch in the North End, time in Boston Common and the Public Garden or a harbor cruise. Location can also make a significant difference in a city where many attractions are within walking distance. Hilton Boston Park Plaza sits in Back Bay near Boston Common and the Public Garden, with Beacon Hill, the Theater District and the Freedom Trail less than a mile away. Arlington MBTA station is also nearby for days when you'd rather use public transportation.

If you have an extra day, Salem is an easy addition to a Boston trip. September may be particularly attractive to travelers hoping to experience some of Salem's fall atmosphere before the biggest Halloween crowds arrive. Destination Salem says attractions and restaurants generally have more availability in September, particularly during the week.

5. New Orleans, Louisiana, for a slower taste of the South

New Orleans has plenty of famous attractions, but you don't need to create a long sightseeing checklist to have a memorable trip. In fact, this may be one of the best destinations on the list for letting food, music and atmosphere become the itinerary.

Fall brings cooler conditions and a busy calendar of music, food and cultural events. The city's tourism organization highlights outdoor dining, festivals and live music as some of the reasons to visit during the season.

Rather than spending all your time around Bourbon Street, slow down and explore more of the city's architecture and neighborhoods. Ride the St. Charles Avenue streetcar past historic homes and oak-lined streets, visit the Garden District or spend an afternoon around City Park.

The streetcar system connects visitors with areas including the French Quarter, Garden District, Mid-City and riverfront, making it possible to see more without constantly getting in and out of a car.

A centrally located hotel can make that slower approach even easier. The Roosevelt New Orleans, A Waldorf Astoria Hotel is one block from the French Quarter and has on-site restaurants, a rooftop pool and a spa, giving travelers options when they want a break from exploring. Leave room in the schedule for a jazz performance, a long dinner or simply sitting with coffee and beignets. New Orleans rewards travelers who aren't in a hurry.

Make your fall getaway easier

Wherever your fall travels take you, simplifying the logistics can leave more time for actually enjoying the destination. Booking directly through Hilton or the Hilton Honors app can make managing your trip easier. Hilton Honors members can earn points on eligible stays and receive member benefits, with additional perks available depending on status.

Direct bookings may also qualify for Hilton's Price Match Guarantee. If you find a lower qualifying price elsewhere and your claim is approved, Hilton will match the lower price and take an additional 25% off the matched room rate, subject to the program's terms.

When booking a fall getaway, compare cancellation policies as well as prices. A flexible rate could be worth considering if changing weather affects your sightseeing or travel plans.

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An inheritance can rapidly change your finances, but it often arrives alongside grief. Even if the money provides greater financial security, deciding what to do with it can feel more complicated than managing another type of windfall.

You don't need to make major financial decisions right away. Giving yourself time can help you understand what you've inherited, consider your priorities and decide what you want the money to do for you.

Where you ultimately put an inheritance will depend on your existing finances, when you might need the money and the type of assets you've inherited. The first step is making sure the money is protected while you figure out what comes next.

Start by putting the money somewhere safe

"Cash and savings" is the most popular asset that older parents say makes up their estate, a Morning Consult survey commissioned by Kiplinger found, above real estate, stocks and life insurance.

You can take your time to decide what to ultimately do with the money, but it's important to keep it safe in the meantime. If your inheritance arrives as cash, consider temporarily parking it somewhere liquid while you make a long-term plan.

Options include a high-yield savings account, a money market account or a short-term CD. These accounts can provide a safe place while you decide what to do next. Savings and money market accounts also keep funds easily accessible. With a short-term CD, you might pay an early withdrawal penalty if you take the money out before the term ends, so consider when you could need the funds.

If you've inherited a particularly large amount of money, pay attention to deposit insurance limits. Deposits are generally insured for up to $250,000 per client, per insured institution and per ownership category. If you've inherited more than $250,000, you might need to spread the money across multiple institutions or ownership categories to make sure the full amount is covered.

You might feel ready to put the money to work right away. Our survey with Morning Consult, part of Kiplinger's Trillion Dollar Talk campaign, found that 70% of adult children say they feel prepared to manage an inheritance, including 40% who say they're very confident. But being prepared doesn't mean you need to act immediately.

When you first receive an inheritance, your priority can simply be protecting the money while you decide what comes next. Once it's somewhere safe, you can take a closer look at what you've inherited, your financial priorities and any potential tax consequences.

Before investing, find out what you actually inherited

Tax rules surrounding inheritances can be confusing. The federal government generally doesn't tax beneficiaries for receiving inherited cash, though income generated by inherited assets might be taxable.

Federal estate tax, when it applies, is generally paid by the estate rather than the beneficiary. Some states, including Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania, also impose an inheritance tax, with what you owe often depending on your relationship to the person who died.

Inherited IRAs, brokerage accounts, real estate and other assets can each come with different tax rules. For example, withdrawals from an inherited traditional IRA might be subject to income tax and distribution requirements.

It's important to understand what you've inherited before making major decisions, so don't automatically cash out investments or retirement accounts before learning about potential tax consequences.

The confusion around inheritance taxes is reflected in Morning Consult and Kiplinger's survey, which found that 34% of adult children expect to owe taxes on an inheritance, compared with 20% of parents who expect their children to owe taxes. If you're unsure about the tax rules surrounding inheritances, consult an estate attorney or tax professional before making any moves that could have tax consequences.

Decide what the inheritance could do for your financial life

Instead of focusing on where you can earn the highest return, consider how the inheritance fits into your overall financial picture and what you want to accomplish. That can help you decide how to manage your inheritance.

Your priorities might include:

• Paying off high-interest debt
• Building or replenishing an emergency fund
• Catching up on retirement savings
• Saving for a near-term goal
• Investing for long-term growth
• Setting aside a small portion for something meaningful or enjoyable

An inheritance can potentially help you achieve any of these goals, but your priorities will shape what you do with it.

Match where you put the money to when you'll need it

Once you've decided what you want to accomplish, think about when you'll need the funds. Money you'll need soon generally belongs somewhere stable and accessible, while cash you won't need for many years might have more opportunity to grow through investing.

Here's how your options might change depending on your timeline:

• If you'll need the money within the next year or two: Prioritize safety and easy access over growth. A high-yield savings account or money market account can work well for money earmarked for a home purchase, major expense or other near-term goal. A short-term CD might also be an option if you're confident you won't need the money before it matures.
• If your goal is a few years away: You have more flexibility, but you might not want to expose all the money to market swings. Depending on your timeline and comfort with risk, you could keep some of the inheritance in savings or CDs while investing a portion for potential growth.
• If you're investing for the long term: Money you don't expect to need for many years might be better positioned for long-term growth. A diversified portfolio of stocks, bonds and other investments can offer greater growth potential, although you'll need to be comfortable with market fluctuations along the way.

Whatever approach you choose, consider how the inheritance fits into your broader financial plan. A significant windfall could give you opportunities to rethink goals that once seemed years away.

If you're unsure how to balance those priorities, a financial professional can help you determine how an inheritance fits into your short- and long-term goals.

Use the tool below to connect with a vetted financial professional who can help:

Consider whether this changes your bigger financial plan

An inheritance can reshape your financial plans in ways you might not have anticipated. It could allow you to retire earlier, pay off your mortgage, help your children or grandchildren, buy a home or give more to causes about which you care. Used thoughtfully, that final gift from a loved one can provide greater financial security and flexibility for years to come.

If the inheritance significantly changes your finances, consider talking with a financial planner and tax professional before making major decisions. They can help you understand how the money fits into your existing goals, identify potential tax considerations and develop a plan to use or invest it.

This might also be a good time to review your own estate plan and beneficiary designations. If your financial situation has changed, updating your plans can help ensure they still reflect your wishes and make things easier for your loved ones in the future.

More Trillion Dollar Talk

• Inherited IRA Rules Every Beneficiary Should Know
• 5 Questions to Ask a Financial Adviser About an Inherited Stock Portfolio
• The $124 Trillion Great Wealth Transfer: Fact vs Fiction Quiz

Chances are you’ve heard the standard advice about how to get rich: Spend less than you earn, invest, avoid unnecessary debt and give your money time to grow. Problem is, knowing what to do isn’t necessarily the difficult part. Consistently following through on those actions can be the true challenge.

To build substantial wealth, you may have to say no even when you can afford to say yes. Getting rich may mean taking some calculated risks and sticking to a plan, even when you’d rather change course.

It’s not easy, and if you want to build wealth, you’ll need to be prepared to make some specific choices.

1. Live below your means even when you don't have to

Living below your means is different from simply being able to pay your bills. As your income increases, there’s pressure and a natural desire to upgrade your house, car, vacations and other lifestyle elements. Those large purchases can quickly erode the wealth that you’ve built up, setting you back from your goal.

What’s more difficult is letting that gap between your income and spending grow. Upgrading your lifestyle may be tempting, and you’ll need self-control to stay focused on your goals and to continue living on less than you make.

Avoiding lifestyle creep is key to building wealth, since it leaves more money available to invest and build your assets; that’s where the real wealth-building power lies. Compound interest, in which your earnings start to generate their own earnings, can accelerate your path toward becoming rich.

There’s nothing wrong with enjoying your money, and doing so periodically can help to keep you motivated to continue working and building wealth. The issue is letting every raise permanently increase your cost of living through an expensive upgrade like a larger house or a new car.

2. Get comfortable watching other people spend more than you

Your friends, neighbors and colleagues may have a bigger house, a new luxury vehicle or seemingly endless vacations, and you’ll need to get comfortable with that scenario for years. Trying to keep up or even using their situation to justify your own spending can divert money from investing and other long-term goals.

Remember that appearances can be deceiving and you can’t tell much about someone else’s financial situation simply based on what they own. A high-spending lifestyle isn’t necessarily evidence that someone’s wealthy, and they might be financing their lifestyle through debt.

If you’re patient and don’t try to keep up with others, you’ll make more progress toward your own financial goals.

3. Put a set amount of money away before you can spend it

It’s important to be intentional about saving money. Saving whatever happens to be left over at the end of the month often isn’t enough to build substantial wealth. To build wealth, you may need to treat investing as one of your biggest recurring expenses, which means setting aside a meaningful amount of money to invest each month.

As your income grows, revisit and increase your 401(k), IRA and brokerage contributions. Where appropriate, automate your contributions so they become a standard and recurring part of your monthly budget.

Prioritizing investing can be difficult, since the money is technically available to you today. When you invest, you’re choosing to give your future self first claim to the money, and that may mean that you need to cut your spending or go without a big purchase in the meantime.

Not every dollar you set aside needs to be invested. Money you may need sooner, including your emergency fund, can be kept in a savings account where it’s accessible and protected from market swings. And with competitive high-yield savings accounts paying attractive rates, it’s worth making sure your cash is earning as much as it reasonably can.

Use the tool below to explore and compare some of today's top savings account offers:

4. Take calculated risks with your money

Building wealth often requires taking some risk. Keeping all of your money in cash can feel safe, but you may need to accept some investment risk — and some potential loss — on a long-term path to getting rich.

That doesn’t mean investing on a whim in a business you have a good feeling about or on a tip you heard from a friend. Calculated risk is part of investing, and it helps minimize the chance of you losing your money.

Diversified stock investments, real estate or business ownership may fluctuate or fail to perform as expected, but going into those investment decisions well-informed can minimize the risk you’re assuming. Avoiding risk entirely has its own cost and may cap your earning potential.

You don’t need to chase hot investments or make enormous bets, but building wealth involves some uncertainty.

5. Be boring for a very long time

Though there are certainly exceptions, building wealth doesn’t usually come from one brilliant stock pick, side hustle or financial decision. It’s boring, and it’s the result of years or decades of investing, reinvesting, controlling spending and avoiding major mistakes.

Markets will fail, trends will change and you’ll make mistakes. You’ll question yourself and may be tempted to jump to a venture that appears to offer a faster route to wealth. What’s hard is resisting the temptation to question or change your strategy, allowing compounding and time to do their work.

Building wealth is boring, and you need the patience and faith to simply be boring.

Getting rich is often about what you don't do

Building wealth sounds simple on paper. It’s often much more difficult to put into practice. Building wealth often comes down to what you don’t do, rather than making some strategic action or jumping on the right stock at the right time.

You don’t necessarily have to pursue a lifestyle of extreme sacrifice, but you may need to become comfortable making choices that don’t always result in an immediate payoff. It’s hard work and will be uncomfortable at times, but if you’re dedicated and stay consistent, the sacrifices you make now can pay off later.

Building wealth takes consistency, but you don’t necessarily have to figure out every decision on your own. A financial advisor can help you create a strategy around saving, investing and other long-term goals, and adjust that plan as your finances change.

Use the tool below to connect with a vetted financial professional today:

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Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance, as a letter from the editor. We're sharing it here to shed light on our findings for our digital audience, as part of our Trillion Dollar Talk campaign. Subscribe to Kiplinger to help you make more money and keep more of the money you make here.

In our cover story this month, we've taken a deep dive into what the Great Wealth Transfer — the estimated $124 trillion of assets that will flow from older generations to heirs and charities through 2048 — means for families. While a good chunk of that transfer will come from a small slice of high-net-worth households, those who aren't among the super-rich are making plans to share their wealth over the coming couple of decades, too.

To gather insight into how families are handling this historic shift, Kiplinger commissioned an exclusive survey, conducted by research firm Morning Consult, of more than 5,000 older parents and adult children, asking for their knowledge and expectations surrounding the inheritance that parents will leave for their heirs.

Drawing from the survey's findings, the story you can find here offers advice on how families can successfully navigate this transition, from determining what information you may want to disclose to your children about their inheritance ahead of time to ensuring that you pass along your values, too. In another story, we outline some key takeaways from the survey.

And in a third story, we provide guidelines on having conversations with your adult children that will leave them well positioned to manage their inheritance and minimize conflicts and confusion among your heirs when the assets change hands.

How real families are handling this transition

As a complement to the stories in our cover package, we asked readers to send us their responses to this question: Are you giving away some of your money or assets to your heirs while you're still living, or do you intend to leave a larger inheritance later? I'm sharing a few responses here.

Many readers said they are offering some financial help while they're still around to see their children enjoy it, and at a stage during which their kids may most need the assistance. Says one reader, "My in-laws gave us money at a time in our lives when we were raising three children, and it was very helpful to our family. We feel that our retirement is secure and have started giving some money each year to our children while they are young adults, as they raise children and buy homes. I feel that it can benefit them more at this stage of their lives than later."

Another reader emphasized the importance of conveying financial lessons along with giving gifts. "Our philosophy for giving to children is to make their lives better, not remove the incentive for hard work and development of good spending habits," he says. He and his wife provided about 35% of the down payment for their son's home purchase, and they explained to him how paying extra on his mortgage can reduce total interest on the loan and shorten the time it takes to pay it off.

Several of you mentioned that you're helping your grandchildren, too, funding their retirement accounts and college-savings plans. One reader is contributing $5,000 yearly to each of his five grandchildren's 529 plans, with a goal of contributing $100,000 total per beneficiary.

"Because I was willing to start early, my family can benefit from the tax-free growth of these funds," he says. And, he notes, if any of the grandchildren don't use all the savings on education expenses, they can roll over as much as $35,000 from the 529 to a Roth IRA tax- and penalty-free, "giving that generation a head start on retirement savings."

A reader whose two oldest grandchildren are in college is boosting their retirement savings — and encouraging them to start thinking about investing—by contributing to their Roth IRAs. And, he says, "Once they begin their careers, we will offer to match their retirement-fund contribution."

More Trillion Dollar Talk

• The Great Wealth Transfer is Creating a New Generation of Family CFOs
• The $124 Trillion Great Wealth Transfer: Fact vs Fiction Quiz
• Could You Handle a Sudden Windfall?

Do you plan to leave your children a meaningful inheritance? Do you worry about how inflation and long-term-care costs might affect how much you have to give? Have you talked to your kids about your plans? Or, if you're the adult child in this equation, have you broached the subject of inheritance with your mom and dad?

On the eve of what's expected to be a historic generational transfer of wealth in the U.S., Kiplinger set out to explore how families are navigating inheritance planning in their households — what they intend, what they hope for, what they worry about and how they've communicated with each other. Toward that end, we partnered with research firm Morning Consult to field a national survey asking 5,156 Americans — half adult children ages 25 to 60, half parents ages 55 and up — to share their views and circumstances.

Here is a look at what we learned.

Parents and adult children are not on the same page

When it comes to inheritance plans, the survey reveals a big gap in expectations and knowledge between the older and younger generations in many families.

For starters, adult children are far less likely to think they'll be getting an inheritance at all, compared with parents who expect to leave one. Some 42% of younger respondents say they don't expect to receive a meaningful amount, but just 15% of parents say they won't have any money to pass down. On the flip side, about twice as many parents, in fact, do plan on leaving a meaningful inheritance as adult children who anticipate they'll get one.

The kids generally aren't clear what assets will be involved, either. Nearly two-thirds of parents say they have money in cash and savings, but fewer than four in 10 children think those assets are part of the older generation's estate. Adult children are also far less likely to say that life insurance, real estate, an IRA or a 401(k), and other investments are part of their parent's holdings, compared with parents who say they own these assets.

There are also big generational gaps concerning how much financial help parents extend to their children now (parents consistently say they are helping more than children believe); whether it's better to split inheritances evenly among siblings or consider other factors such as financial need or past assistance (more kids favor "fair" over equal than parents, by a 21 percentage point margin); and whether they've discussed an inheritance plan (more parents report having shared information than children recall hearing).

"Both parents and adult children need to do a better job of understanding where the other side is coming from," says Kurt Supe, a certified public accountant and retirement planner at Creative Financial Group in Indianapolis and CFD Investments. "The key is better communication."

There's a gender gap when it comes to inheritances, too.

Sons are more confident about their ability to manage an inheritance than daughters, the survey results show. That's in keeping with other research showing men's greater belief in their financial acumen (although the studies don't necessarily indicate that faith is justified).

Sons are also more likely than daughters to expect an inheritance (30% versus 18%), to say their parents have shared plans for passing down assets, and to know how to locate Mom and Dad's will and other estate-planning documents. Daughters, by contrast, answered "not sure/don't know" to questions more frequently than sons — about how much they'll inherit, whether they'll owe taxes on the bequest, and even whether they prefer financial help from their parents now or a larger inheritance later.

When it comes to talking to the kids about inheritance plans, moms rule. Although both mothers and fathers express the same comfort level in talking to their children about money, dads in practice are more likely to have said nothing to their kids about their inheritance plans (45% of dads have stayed tight-lipped, compared with just 33% of moms).

Financial adviser Stephanie McCullough, founder of Sofia Financial, a financial planning firm for women in Berwyn, Pa., suggests that women who aren't confident about managing their finances may get past the hump if they connect with a friend they feel comfortable talking with about money or if they consult with a professional. Says McCullough: "Find a money buddy or an adviser to help. And if they make you feel stupid, find a different one."

Everybody has big questions about inheritance

Inheritance plans live largely in the dark, the survey shows. Two in five families have never discussed them, and three in 10 parents have no formal plans. Families rank inheritance next to last among topics they feel comfortable discussing — only sex and dating elicit more of a shudder.

And the less wealth parents have, the quieter things get.

It's not just that parents and kids don't communicate; it's that many don't even know what's at stake. More than one-third of adult children and nearly four in 10 parents aren't sure whether the older generation will have any assets left to pass down; just over one-fourth of parents can't estimate the size of their estate; and 43% of children and 38% of parents have no clue how much each of the kids will inherit.

The top reason parents stay silent: "There are too many unknowns about how long I will live or how much will be left." Inflation and other economic pressures top their list of concerns, along with possible long-term-care costs. Kids worry about those things on their parents' behalf, too, and some 16% are also anxious that their moms and dads will need financial help from them instead of the other way around.

Wealthier families — parents with incomes above $100,000 or estates worth $1 million or more — share those same top concerns. But they also keep quiet about estate plans because they do not want their offspring to count on an inheritance (cited by about one in three parents with estates estimated at $500,000 or more, for instance, compared with 19% of parent respondents overall).

That's understandable, says financial psychologist Brad Klontz, who notes, "You don't want your child's financial plan to be your death."

Love and good intentions are abundant

When asked what they'd want done or would do with an inheritance, both parents and adult children focused primarily on practical moves that would help the younger generation. Paying off debt. Buying a home. Saving to build wealth and a secure retirement. Providing a better life for the children of the adult kids and the parents' grandchildren.

Something else families agree on: Most adult children feel ready to manage an inheritance (70%), and nearly as many parents (67%) feel the same.

What would adult children ask their parents, if they felt comfortable? Sure, some (18%) were curious to ask, "How much?" But others wanted to know their parents' wishes for the money so they could respect those intentions (9%), and to understand more about the older generation's experiences (12%). As one adult child put it, "I would ask if they were truly happy in life."

David Chubak, head of wealth management and field management at Edward Jones, says families shouldn't keep questions, feelings and plans about wealth transfer inside. He encourages them to talk in advance of assets changing hands. "These are important conversations that touch every family and every level of wealth," he says. "My best advice is to start now."

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

More Trillion Dollar Talk

• The Trillion Dollar Talk
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• Why So Many Families Are Unprepared for the Great Wealth Transfer — and What You Can Do About It
• An Expert's Guide to the Estate Planning Documents Everyone Needs

The amounts are staggering. Over the next 20 years or so, U.S. households are expected to pass an estimated $124 trillion in financial assets to heirs and other beneficiaries, according to Cerulli Associates, a financial services research firm. That includes some $85 trillion going to the Gen X and millennial offspring of boomer and Silent Generation parents, with many trillions more headed to surviving spouses and charity.

Experts are calling it the greatest wealth transfer in history, and the drumbeat heralding its arrival grows louder every day.

To explore how American families are navigating this inheritance wave and offer smart advice to help them meet the challenge, Kiplinger commissioned an exclusive, national survey of more than 5,000 older parents and adult children, conducted by the research firm Morning Consult.

What we discovered is a mix of big hopes and deep uncertainty as the older generation prepares to pass down the assets they've built over a lifetime, the younger generation stands poised to receive them and concerns grow on both sides that outside factors could erode that wealth before it changes hands.

The results also make clear there is a big gap in expectations and knowledge between older and younger family members about the money and property at stake — in part because both sides are deeply reluctant to talk to each other about it. Among the survey's key takeaways:

• Nearly half of older parents expect to leave their kids a meaningful inheritance, but the majority of adult children don't think they're getting anything or aren't sure what might be left for them.
• The amounts involved for most families are not the life-changing windfalls recent headlines suggest but still have the potential for serious impact, from enabling the younger generation to buy a home to helping put their own kids through college.
• Many parents worry that a shaky economy and their own healthcare costs will upend their plans to pass down wealth — even as the children, facing big expenses of their own, wish their elders wouldn't wait so long to send money their way.
• Plans for gifting and inheritances live mostly in the dark because parents and kids would rather talk to each other about almost anything else — only sex and dating are more awkward topics.
• As a result, uncertainty casts a cloud over the inheritance process and keeps many families from taking the steps needed to make the most of these assets — moves that could also help parents and adult children forge an even closer bond.

"People are grappling with being asked to make important decisions that will impact their wealth and the assets they want to pass to future generations without having perfect information," says Valerie Galinskaya, managing director and head of the Merrill Center for Family Wealth.

"The individuals and families I see excel and do this most effectively don't wait for uncertainty to disappear. They build their plans and then adapt as life unfolds."

Here is what you need to know to ensure that you and the people you love plan for inheritance in a way that not only creates a smooth and effective transfer of wealth but also helps bring your family closer in the process.

The Great Wealth Transfer won't be great for everyone

Lest anyone feel bad that the assets parents intend to leave to children in their family can't be counted in eight or more digits, rest assured those megasize amounts that pundits are quoting about the Great Wealth Transfer aren't all they're cracked up to be.

More than half of the expected inheritances coming down the pike over the next two decades will be concentrated among the richest 2% of U.S. households, Cerulli estimates, leaving a lot less to be divided among everyone else.

How much less? About one-fourth of the parents who expect to leave an inheritance to their children estimate their estate will be worth less than $100,000, and about half put the total at less than $500,000, according to the Kiplinger–Morning Consult survey.

Just over one in 10 valued their estate at $1 million or more. Homes made up the greatest share of the wealth to be passed down, followed by life insurance, liquid savings and investments.

The numbers get whittled down even further when you consider that in many families these assets will be divided among more than one child. Roughly one in four parents thought each of their children would inherit less than $50,000 from them, with 44% estimating the amount per child would be less than $250,000.

Bequests in seven-figure territory were rare, cited by just 5% of the parents who expect to leave an inheritance. These findings are largely in keeping with Federal Reserve data, which shows that about half of heirs receive less than $50,000 and 30% of inheritances range from $50,000 to $249,000.

"That big, huge $124 trillion number is irrelevant to the vast majority of people — but it's not that there's nothing coming, either," says Teresa Ghilarducci, professor of economics at The New School for Social Research, who puts the number of adult children who can expect an inheritance at about 30 million.

That's a lot of potential heirs, but relatively few of them know what to expect. While nearly half of parents 55 and older expect to leave a meaningful inheritance for their children, only about one-fourth of adults ages 25 to 60 with at least one living parent think they'll receive one, the Kiplinger–Morning Consult study found.

Driving the disconnect: Relatively few families are talking about inheritance. Roughly two in five have never discussed the older generation's plans for passing along their assets, the survey reveals. And among those who have talked, it's mostly in generalities, such as whether the parents have a will or who will inherit something, rather than specifics, with details about the assets parents have, their value, or Mom and Dad's wishes regarding them.

"When families do not talk, everyone makes up a different story," Ghilarducci says. "That's when trouble starts."

"Parents may think they don't want to burden a child by talking about their death," says certified financial planner Douglas Boneparth, founder and president of Bone Fide Wealth, a New York City firm that specializes in advice for millennials.

"But not communicating a plan or conveying your wishes to the very person or people who ultimately will be responsible for settling your estate and dealing with your affairs will leave them in the dark and scrambling to figure things out while they're grieving over the loss of a loved one. It's an absolute kick in the pants and burdens them more than you could have imagined."

Lack of knowledge can also prevent the younger generation from making informed choices about their lives, financial experts say. That's especially true if the parents intend to gift money during their lifetime — say, to help with the down payment on a home or a grandchild's college education.

"Counting on nothing may seem like the safest approach for adult children, and the easiest emotionally," says adviser Stephanie McCullough, founder and CEO of Sofia Financial in Berwyn, Pa.

"But if knowing that your parents plan to leave you some money might help you breathe a little easier financially now or do a little more for your own kids, it would be good to have some sense of it."

Uncertainty prevails — and paralyzes estate planning

There are plenty of reasons why many families shy away from conversations about money generally and inheritances specifically.

For starters, no one likes to talk about their own mortality or think about their parents dying. Or about the possibility that illness or disability might drain the older generation's savings.

Then, too, many boomers and members of the Silent Generation grew up in homes where talking about money was considered impolite or taboo. (Our survey found that families would prefer to talk about almost anything else — politics, mental health, you name it — than inheritances. Only sex was a more awkward topic.) And, especially at greater levels of wealth, parents may worry that learning of an inheritance could be de-motivating for their children.

Adult kids also don't want to raise the subject and risk coming across to Mom and Dad as grasping. "Bringing up a parent's finances can feel like you're being greedy or morbid," Boneparth says. "Millennials want to know but feel like they shouldn't have to ask."

Yet the top reason families stay silent, the Kiplinger–Morning Consult survey shows, is uncertainty. More than one-third of parents who haven't discussed inheritance plans with their adult children say there are too many unknowns about how long they'll live or how much money they'll have left.

Overall, the top worries among parents about the inheritance they've earmarked for their kids are that, given inflation and other economic pressures, they might not have much left to give and that long-term care or other health costs might deplete their estate. And that was true even at higher levels of income and wealth.

Another source of uncertainty for many parents is whether and how long they may need to help their kids financially now, given sometimes shaky career paths, high housing costs and, for some, hefty student loans, says David Chubak, head of wealth management and field management at Edward Jones.

The Kiplinger–Morning Consult study confirms that lots of parents are providing that support: More than four in five say they have given their adult kids financial assistance, from helping with expenses or debt to regular gifting.

"The reality is we live in an age of financial uncertainty and anxiety like no other," Chubak says.

Bundle all of that uncertainty together and it can become paralyzing, stopping parents from crafting an estate plan or talking about any plans that have been made, says Joshua Morris, vice president of thought leadership and research insights at the Fidelity Center for Family Engagement.

Parents in the Kiplinger survey who were uncertain about the value of their estate, for instance, were half as likely to have a will as parents who were confident about leaving an inheritance, and even fewer had discussed estate-planning issues with their kids.

"The senior generation often feel they need everything completely buttoned up before they say anything to their children, so feeling uncertain about one or two things regarding estate planning shuts down dialogue about everything," Morris says.

"And if you're not having dialogue, that compounds the uncertainty both generations feel, because without conversation, there's no flow of information or talking about concerns and wishes."

What the "kids" really need to know about inheritance

When it comes to inheritances, parents are usually most reluctant to share specific numbers, such as how much money they have saved or expect to leave to each child, financial advisers say.

"Mom and Dad worry if they tell the kids they have, say, a million dollars, the kids will think they're rich — the gifts should be bigger at Christmas, they should be doing more for the grandkids, and why aren't they helping me more when I'm struggling to pay my rent?" says Kurt Supe, a certified public accountant and retirement planner at Creative Financial Group in Indianapolis and CFD Investments.

"Meanwhile, the parents are thinking, We don't know if we have enough to last our lives, and a long-term-care event could wipe out half of what we've got."

If you'd prefer to keep the amounts to yourself, or you just don't know what they'll be, that's fine, advisers say. And if you choose to disclose, keep it to broad ranges and possibilities, because circumstances can change.

More important than the numbers, though, is sharing practical details, such as whether you have a will and, if so, where you've stored it, as well as insight into the reasons for key decisions, such as who your executor will be.

"A lot of times people think about disclosure as a light switch — you're either on or off," says Galinskaya at the Merrill Center for Family Wealth. "We prefer a dimmer-switch approach."

New research from the Fidelity Center for Family Engagement suggests what younger family members most want to know are details that will bring them peace of mind, instead of anxiously wondering what to expect. While the definition of peace of mind differs from individual to individual, and from family to family, common themes pop up.

For instance, a separate Fidelity study found that 76% of the younger generation want to know whether they are named as beneficiaries — something that applies to retirement accounts and life insurance policies as well as being named in a will or trust — but only 35% of baby boomers have shared this information.

A Merrill report identified clarity around expectations as the top concern of younger family members, including whether parents have specific wishes for how any money they inherit should be used. Adult children with a special-needs sibling might be concerned about whether their parents have made provisions for care when they're no longer around to provide it.

The key is to identify the issues that might cause confusion or anxiety in your particular family circumstances. And if younger family members approach the subject respectfully, they don't have to wait for parents to initiate the talk.

Says Boneparth, "The best thing a millennial child can do is give their parents a reason to have a conversation about their estate planning that has nothing to do with money. It's asking about their wishes, their values and their worries."

One exception to the suggestion that parents can stay tight-lipped about dollar figures is if you intend to provide financial gifts during your lifetime, because that knowledge might affect the decisions and choices your children make.

"Let your adult children know whether they can expect financial help from you at key moments in their life when a lump sum would really help, such as when they want to buy a house, or when they graduate from college, get married or have a child," says Ghilarducci. "Be frank and up front about what you have budgeted."

How families can set up for estate transfer success

A smooth transfer of wealth requires a clear plan that lays out who your heirs will be and how you want your assets divided among them. It should also appoint individuals you trust to settle your affairs, with legal documents in place to ensure your wishes are upheld. Few families, however, have such a plan in place.

"Most people take the ostrich approach: I'm going to stick my head in the sand and hope I never have to deal with this," Supe says.

In fact, only four in 10 parents in the Kiplinger–Morning Consult survey say they have a will, just over one-third have designated beneficiaries on retirement accounts or life insurance policies, and a scant 14% have written a letter of instruction outlining their wishes.

Wealthier families are far more likely to have the legal paperwork drawn up, but large swaths of them still go without. About one-third of parents with estates worth more than $500,000, for instance, don't have a will, and nearly half haven't documented what they want to happen to their personal possessions.

"A will is not just for rich people," Ghilarducci says. "Even a modest estate can include a house, retirement accounts, a car and personal property. Somebody has to sort all that out. Parents usually need a will, a financial power of attorney, a healthcare directive and updated beneficiary forms. A simple letter explaining where everything is can save the family a lot of grief."

Once the documents are drawn up, you'll need to communicate that information to your children and other loved ones. Let them know where the papers are stored, whether you place them in a digital file, a physical binder or both.

And it's not a one-and-done exercise; you'll want to revisit and update, as needed, every few years and after major life milestones.

"The plans that worked for you in your fifties may need to be adapted in your sixties, as well as once you retire, when your children get married or you have grandchildren, and then again in your seventies and eighties," says CFP Marguerita Cheng, CEO of Blue Ocean Global Wealth in Gaithersburg, Md.

You will also need to consider how taxes may impact a planned inheritance — an issue that causes a lot of confusion for both generations, the Kiplinger survey shows. None but the ultra-wealthy will owe federal taxes, with the amount exempt from estate taxes now at $15 million for individuals and $30 million for couples.

However, about a dozen states have estate taxes of their own, including Oregon (exemption: $1 million), Rhode Island ($1,838,056) and Massachusetts ($2 million). If you live in one of those states and calculate your net worth in seven figures, you'll want to consult a financial adviser about ways to minimize the impact.

A more pressing issue for most families: If you plan to leave money in a traditional IRA or 401(k) to your children, they could be in for a big tax hit. Under a recent rule change, heirs other than a spouse now typically have to withdraw all the money in these accounts by the end of the 10th year after the original IRA owner's death rather than stretching withdrawals over their life expectancy, and they'll pay taxes on the money at their ordinary income tax rates.

A possible double whammy: Those withdrawals could push heirs into a higher tax bracket.

"The biggest threat to eroding the value of an inheritance for adult children who are beneficiaries of traditional retirement plans is the possible tax hit," Supe says.

What to do? Supe suggests you might convert all or a portion of a traditional IRA or 401(k) to a Roth account over time. You'll pay income tax on the amount you convert, but your children will then be able to withdraw the money tax-free when they inherit — a strategy that makes sense if you are in a lower tax bracket than your kids, as is the case for many retirees with offspring who are in their peak earning years.

You'll want to make sure, though, that your withdrawals from the traditional plan don't push you into a higher income tax bracket or income tier for Medicare, which could cause your premiums to increase sharply.

McCullough says some people are reluctant to do the conversion and pay taxes up front because they've been taught to defer, defer, defer, and it's hard to break that mind-set. She says, "Think of the taxes you'll pay as part of what you're gifting to your children, a way to maximize the value of what they inherit from you."

Issues that can topple your inheritance plan

One of the thorniest challenges that many families face in transferring wealth to younger generations: The great now-versus-later debate.

Nearly twice as many adult children in the Kiplinger–Morning Consult study say they'd prefer their parents help them financially now, when their biggest life expenses are upon them, as those who say they favor getting a bigger inheritance later.

With older generations now living longer, healthier lives, it could be a long wait — 10 to 20 years or more — and millennials and Gen Xers are buying homes, raising children and paying for college now. Indeed, Fed data shows that inheritances in middle-class and affluent families most commonly go to recipients in their early to mid-sixties, when those heirs are often closing in on retirement themselves.

Many parents, however, aren't on board — with good reason. The largest segment of parents in the survey (42%) intend to wait to provide an inheritance, most commonly because they want to be sure they have enough money to support themselves throughout their lifetime. Just 14% said they would rather give more now to see their children benefit from the money.

Then, too, a lot of parents are already providing a generous helping hand. Nearly half of the parents in the Kiplinger–Morning Consult survey report they have provided financial help to adult children on an as-needed basis, nearly one-third have helped with other expenses and one-fourth have assisted with major life events.

Similarly, recent Visa research shows that one in four millennial homeowners received help with the down payment from their parents, and about the same number said they couldn't have purchased the house without it.

How can families navigate the competing, compelling needs of both generations? "It's a balancing act," says Cheng. "While parents don't want to give away too much during their lifetime, the flip side is that if you wait until you're gone, did your money really have the greatest impact it could have?"

Cheng suggests putting parameters around the financial help you offer now. For instance, you might provide money for a specific purpose rather than ongoing, unrestricted gifts — say, supplying the money for a down payment, paying for a grandchild's music lessons or sleepaway camp, or contributing to a 529 college-savings plan.

If you do choose to gift annually — in 2026, you can give up to $19,000 per recipient, without filing IRS paperwork; couples can give up to $38,000 — make it clear that you'll revisit your strategy every year and that you may not always be able to give the amount you've been giving, or be able to give at all, if your financial circumstances or needs change.

The key, says Galinskaya, is to avoid binary thinking. In other words, do not consider gifting to be an all-or-nothing proposition and that you'll have to do it forever once you start, or that you'll always have to give the same amount to each of your children. "There's a spectrum of options," she says.

For parents with more than one child, the question of fairness is perhaps toughest of all. Typically, parents are eager to avoid discord among siblings. That's likely why the vast majority of them in the Kiplinger–Morning Consult survey — 71% in all —said they intend to divide their assets equally among their children.

Sons and daughters, however, are less convinced that's the best approach. Although half of the adult children in the survey preferred an even split with siblings, one in five thought inheritances should be based on factors such as how much each of them had helped their parents or gotten financial help in the past (11%) or each one's financial need (9%).

Many also anticipated trouble ahead, with one-third of the adult children respondents expecting an inheritance to create conflict with their siblings. And experts agree: The risk is high.

"Adult children will often view inheritances through the lens of unresolved issues and patterns in the family, especially if the way assets are divided between siblings comes as a surprise to them," says financial psychologist Brad Klontz, coauthor of Psychology of Financial Planning. "Someone feels hurt and thinks, Oh, Mom must have loved you more than me, or You influenced our parents behind my back."

For many parents, it's their worst nightmare.

The best way to avoid that outcome is for parents to talk with their children in advance about how assets will be divided and, critically, why. "Err on the side of equality unless there's a good reason not to — and sometimes there is a good reason not to. Maybe one child works in the family business, one puts in more effort, another has special needs," says Galinskaya.

"A good outcome is less about whether dividing things equally or fairly is best and more about how you communicate your actions and explain the intent behind them."

Leaving a legacy beyond money

Experts say that's generally true of inheritance planning. "The biggest mistake parents can make is passing down money without communicating the family values that drive your thinking," says Klontz. "That could be and should be the most valuable part of your legacy."

Make sure the conversations you have as a family about transferring wealth are two-sided and collaborative, not just parents delivering news and rendering decisions from on high, advisers say. "It's Mom and Dad's money, and they get to choose what to do with it. But children should have a voice, if not a vote, in the process," Galinskaya says.

Rather than a single big talk, think in terms of having a series of smaller chats over a long period. "One misconception about the Great Wealth Transfer is that it is a single point in time, the reading of the will, like the movie scene where everyone is in the room and you find out where all the money goes," says Joshua Morris of Fidelity.

"We like to reframe the transfer as a transition that's happening over decades as parents move into and through retirement — planning, gifting and adapting plans along the way."

Fidelity uses the skiing concept of bunny slopes and black diamond trails to suggest how the conversations should move from initially low-stakes, emotionally easy topics — say, what to do with family heirlooms or where the will and other documents are stored — to more challenging subjects around inheritance and estate planning involving how assets will be divided and their value. (For more about the best ways to approach these conversations, see our article on talking to your adult kids about inheritance.)

Each conversation is an opportunity for parents and children to share feelings as well as facts, and for parents in particular to provide insight about what they view as the purpose behind the assets they've accumulated, big or small, and their wishes for the next generation.

"Whatever number is attached to the wealth you've built, it is the story of your career, the story of your life, and there's a vulnerability and emotionality attached to sharing your story that brings families closer together," Morris says.

Fidelity's latest research bears that out. It found that parents who regularly share planning details and keep family members informed are more likely to report peace of mind and confidence about the future than those who don't. Adult children will probably feel a lot better too.

Says Morris, "That's a payoff for families that goes far beyond money."

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Joseph Moore's oldest daughter was 10 years old when she raised the question some parents dread: Are we rich?

She'd noticed that, unlike her friends, she lived in a gated golf course community with celebrities as neighbors, Moore says. The family's affluent lifestyle reflected the wealth Moore had built through real estate investing. But he was quick to challenge his daughter's assumption.

"I said to her, 'No, I'm rich,' " Moore says. "'You have what you've put in your savings account.'"

The distinction was intentional. Moore wanted his daughter to understand he had worked to create his wealth, and she would have to do the same to create her own fortune.

That doesn't mean that Moore's oldest daughter and her younger sister won't benefit from the wealth he has amassed. Rather than save the conversation for adulthood, Moore has a multiphase plan for talking with his daughters, now 13 and 6, about money and how he will share his assets with them. The framework grew out of research for his best-selling book, How to Get Rich in American History: 300 Years of Financial Advice That Worked (& Didn't).

He's already started teaching them basic financial concepts and money-management skills. With his teenager, he has moved on to explaining the kinds of opportunities he'll pay for, such as college, a down payment on a home or a business venture. When his daughters are mature enough, he will share details about what assets he will pass on to them and others, including charities.

"I'd much rather them be handed these things in phases than think that there's some huge pot of gold that they're going to get at my demise," Moore says. The real inheritance he hopes to leave his daughters, he says, is competence: "That to me is the lesson of history, that competence outperforms trust funds."

Most families don't take such a deliberate approach. More than half of parents ages 55 and older surveyed by Morning Consult for Kiplinger say they rarely or never discuss money with their children.

Talking about inheritance is even more taboo. Both generations rank it as one of the most challenging topics to raise — more uncomfortable than talking about mental health, politics, or even your end-of-life wishes and funeral arrangements.

Financial experts say that avoiding these conversations can leave children unprepared to manage wealth and families vulnerable to confusion or conflict when assets eventually change hands.

"I have seen many families really struggle, be torn apart due to surprises about things that came out after people passed away," says Ruschelle Khanna, a therapist with 25 years of experience working with high-net-worth families and author of Inherited Trauma and Family Wealth.

One reason many find it difficult to have these discussions is that there's little historical precedence for having them, Moore says. In the past, few families had the type of wealth that could be bequeathed to the next generation. Since the shift from pensions to 401(k)s began in the early 1980s, Americans have been retiring with more liquid assets that can be passed on when they die, Moore says.

Known as the Great Wealth Transfer, $105 trillion is expected to be handed down — largely by high-net-worth households — to heirs through 2048, according to the consulting firm Cerulli Associates. After removing the top 1% from the equation, there's still an estimated $36 trillion that will be transferred from boomers to their Gen X and millennial children over the next two decades, according to Visa Business and Economic Insights.

"This is a newer conversation for middle-class families," Moore says. "If your parents didn't sit you down and explain how you were going to inherit your wealth, you don't know how to do it with someone else."

That doesn't mean you can't learn. Experts say productive inheritance conversations aren't about revealing dollar amounts all at once. Instead, they recommend treating them as an ongoing dialogue that evolves with your child's age and maturity and any changes in your own circumstances or views. Here's how to start.

The case for talking about inheritance

When it comes to inheritance, there's a transparency gap. Nearly half of parents expect to leave money or assets to loved ones when they die, but only about one-fourth of adult children expect to receive an inheritance, according to the Kiplinger–Morning Consult survey.

The most-common reasons parents give for not talking are that there are too many unknowns, they don't have a clear plan or that they simply haven't gotten around to having the conversation, the survey found.

"I have had clients say, 'I don't care what happens because I'll be dead,'" says Sandi Bragar, chief client officer at wealth management firm Aspiriant in San Francisco.

If you die without any estate-planning documents, such as a will or trust, that spell out who gets what when you die, your state's laws will determine how your assets will be distributed. "People of all net worths ought to have a plan," says Michael Whitty, an estate-planning attorney with Smith, Gambrill and Russell in Chicago. "Even if they are of very modest means, they should have at least a will."

Online will and trust creation services, such as LegalZoom, Trust & Will and Quicken WillMaker & Trust, are low-cost options. However, Whitty advises working with a professional who can ask the right questions about your wishes to tailor estate-planning documents to your needs, rather than trying to rely exclusively on self-help services.

Once you have a plan, it's important to let your family know that you have one and to share some details. "One of the biggest mistakes is not communicating with your children or asking your advisers to communicate on your behalf," says Dawn Jinsky, a partner with Plante Moran Wealth Management in Ann Arbor, Michigan. "They need to hear it from you."

If they don't, your children could make assumptions about the reasons you won't share inheritance information with them. They might think that you don't trust them with money, Jinsky says. Or they might have unrealistic expectations about what they will inherit.

Lack of communication can also leave children unprepared for the wealth they receive or roles they'll have to fill. "For example, if a child is meant to become a trustee of a trust, we want to help the client make sure the child has the skills and competency to fulfill the responsibilities of the trust," Bragar says.

Plus, an unwillingness to discuss your plan and explain the reasoning behind your decisions can lead to resentment or disputes among your children.

"There are plenty of stories of families throughout history who go to the will reading to find out that what they had assumed would be a fair and equitable distribution was not," Moore says. "Your legacy is forever locked into that last moment of conflict."

When to have conversations about inheritance

The best time to start talking about inheritance isn't when you're drafting your estate plan. Ideally, parents should start laying the foundation for discussions as soon as their children can understand the concept of money. "The families that do this the best begin as young as possible," Khanna says.

When children are in elementary school, conversations can focus on family values and money-management basics. As children mature, parents can gradually introduce more information about family finances, including goals for their wealth and, eventually, details about their inheritance planning, Whitty says. The goal is to avoid leaving children to fill in the blanks.

"If you're silent, the kids might think, I don't know if I'll get anything, but I may get a lot," Whitty says. "That could distort their motivations about their own careers, personal development, even their choice of a potential spouse."

Parents who missed earlier opportunities shouldn't assume they have waited too long. Experts say discussions with adult children are essential — as long as they happen before a crisis forces the issue.

"I'm sure a lot of these conversations occur on the deathbed," says David Russell, a wealth adviser with Argent Trust in Ridgeland, Missouri. "At that time, it's too late to do anything planning-wise."

Don't let reluctance to talk hold you back. "If you're not ready to jump into the conversation, find an adviser as soon as possible," Khanna says.

She recommends working with a financial planner with experience facilitating family money talks. (You may be able to find one using the directory at 2164.net/advisors, which lists financial pros who focus on multigenerational planning and family philanthropy.)

If emotional barriers are getting in the way, a financial therapist can help you address fears that are preventing you from sharing inheritance information with your children. You can find a financial therapist through the Financial Therapy Association

What to share about inheritance

Before you talk, Bragar recommends identifying what you hope to achieve. "How do you want your family to think about the wealth that will be left?" she says.

"When people care about their family members and want there to be some level of harmony, it's easier to go into the conversation when you visualize what is important."

Then, consider the questions your children might have. "What type of information might they need about you to live their lives stress-free?" Bragar says. For example, they might be wondering whether you have enough money to live comfortably in retirement or to pay for long-term care.

Bragar says some parents are reluctant to spend savings because they want to leave more for their children — even though that can be the last thing the children want.

Russell has what he calls "who does what when" meetings with his clients and their children to foster conversations about both wealth transfer and long-term-care planning. The focus on logistics can help keep emotions at bay to ensure a more productive discussion, he says.

To replicate the process, parents can create three columns on paper or a computer document to list the people they expect to be involved with their finances as they age and after they die, what role each person will play, and when they are expected to fill those roles. Parents could add a fourth "Why" column to explain the reasoning behind their choices, Russell says.

Note that there's not a column for "How much." Russell says that most of his clients aren't willing to share the details of how much they have.

Other financial advisers meet with the same resistance. "Clients feel like communication means opening the curtain and sharing everything," Jinsky says. "You don't need full transparency with your children."

There are a handful of reasons why it could make sense not to share specifics about how much your children or family members will inherit. For starters, you might end up needing to spend more of your savings than you think, especially if dementia or another chronic condition forces you to pay hundreds of thousands of dollars for many years of care.

Another reason: You might change your mind. "Don't lock yourself into a conversation your children will remember," Jinsky says. For example, one of her clients who lived to age 96 changed her estate-planning documents 32 times — every time she did or didn't get a call on her birthday.

However, Jinsky cautions that full disclosure is needed in some circumstances, such as when you've legally appointed your child to manage your assets when you die. "If you're in your eighties and your child is the trustee, that is a pull-the-curtain-and-share-everything moment," she says.

Another reason parents might opt for sharing some details with children about what they can expect to inherit or receive while you're still living: If knowing, even just broad ranges, might help them make more-informed financial and estate-planning decisions in their own lives, Whitty says.

How to keep inheritance conflict to a minimum

Experts recommend having a family meeting with all of your children to share your inheritance plans if everyone gets along well. This holds true even if you plan to divide your assets unevenly or give the bulk of your wealth to charity, your place of worship or a similar organization.

Children who are mature and have a strong relationship with their parents and each other should understand why, for example, their parents plan to give more to a child with special needs, Whitty says.

When a family meeting isn't the best choice: "If there is resentment, jealousy or in-fighting, or any sort of disrespect, maybe you want to have those conversations individually," Khanna says. It also can be helpful to have a third party, such as an attorney, financial adviser or therapist, mediate potentially difficult inheritance talks to "slow the conversation down and hold space for big feelings," she says.

Another option is to write letters to your children to explain your decisions. This tactic can also be effective if you have children who are unwilling to engage in a conversation because of their fears about aging and death, Khanna says.

Although it's your money at the end of the day, and the approach you choose is ultimately up to you, Khanna says, "I always try to encourage families to make compassionate decisions knowing the impact it will have on people."

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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When you picture a millionaire, you might imagine someone living in a huge home, driving a luxury car and taking lavish vacations. But having a $1 million net worth doesn't necessarily mean living as if you're rich or even earning an exceptionally high salary.

Plenty of wealth is built much more quietly. Someone might spend decades working a regular job, living in the same relatively modest home and consistently putting money into retirement accounts and other investments.

Being a millionaire generally means having a net worth of at least $1 million; it doesn't mean earning $1 million a year. Your net worth is the value of what you own (including savings, investments, retirement accounts and home equity) minus what you owe.

Over time, those assets can add up. A household could have several hundred thousand dollars in retirement accounts, another chunk of money invested elsewhere and significant equity in a paid-down home, eventually pushing its net worth past $1 million without ever earning anywhere close to $1 million a year.

Here are three practical money moves that can help middle-class households quietly build wealth.

1. Make investing part of your monthly budget

One of the biggest advantages you can give yourself when building wealth isn't finding the perfect stock. It's time.

Consistently investing every month allows you to benefit from compounding, meaning you can potentially earn returns not only on the money you've contributed but also on previous investment gains.

You can see how time and consistent contributions can affect your potential investment growth using Investor.gov's compound interest calculator. The tool lets you model different scenarios by changing your initial investment, monthly contributions, time horizon and estimated rate of return.

For example, someone starting with $1,000 at age 25 and investing about $375 per month could accumulate roughly $1 million by age 65, assuming a hypothetical 7% average annual return.

Someone starting at age 35 with the same $1,000 initial investment would need to contribute about $813 per month to reach the same goal.

Actual investment returns will vary, of course, and investing always involves risk. These hypothetical examples also don't account for taxes or investment fees.

The lesson isn't that everyone should expect a 7% return or that $375 is a magic number. It's that consistent contributions, given enough time, can potentially become a substantial amount of money.

For many workers, a workplace retirement account such as a 401(k) is one of the easiest places to start because contributions can come directly from your paycheck. If your employer offers a matching contribution, consider contributing enough to receive the full match if your budget allows. Employer matching formulas and vesting rules vary by plan, so check your plan documents to understand how your match works.

From there, look for opportunities to increase your savings rate over time. When you get a 3% raise, for example, you don't necessarily have to increase your spending by the full 3%. You might bump your retirement contribution up by 1% and use the rest for current expenses or other financial goals.

2. Keep lifestyle creep under control

Earning more money can certainly make it easier to build wealth, but income alone doesn't determine how much wealth you keep.

Lifestyle creep can quietly absorb raises and promotions before you have a chance to save or invest that additional income. Maybe a higher salary leads to a newer car, a larger house, more expensive vacations, additional subscriptions and more frequent dining out.

There's nothing inherently wrong with spending more as your financial situation improves. Money is also there to help you enjoy your life. The problem occurs when expenses rise just as quickly, or even faster, than your income.

Someone who consistently spends less than they earn has room to save and invest. Someone who spends nearly everything they bring in, even with a much higher income, might have surprisingly little left to build wealth.

Some of the biggest opportunities to maintain that gap involve your largest expenses, particularly housing and transportation. For example, getting a raise doesn't mean you immediately need to move into a larger house. Paying off your car doesn't necessarily mean it's time to replace it with another vehicle and another monthly payment.

This doesn't require extreme frugality, either. You don't have to cut every vacation, restaurant meal or small luxury out of your life in pursuit of a seven-figure net worth.

Instead, consider being selective about the lifestyle upgrades you make. Spend more on the things that genuinely improve your quality of life while allowing at least some of your rising income to increase your savings and investments. Over decades, maintaining that margin can make a significant difference.

3. Don't let debt eat away at your wealth

Debt isn't automatically the enemy of wealth building. Many financially successful households have used mortgages to purchase homes, for example, rather than waiting until they could afford to pay cash.

The bigger concern is allowing high-interest debt to become a permanent part of your lifestyle.

High-interest credit card balances can be particularly damaging because interest charges consume money that could otherwise be going toward savings, investments or other financial goals.

There's also an opportunity cost to continually financing purchases. If you're regularly making payments on credit card balances, personal loans or vehicles that stretch your budget, those monthly obligations leave less money available for investing.

That's why paying down high-interest debt can be an important part of a long-term wealth-building strategy. Your approach might depend on the type of debt, interest rate, access to an employer retirement match, emergency savings and other factors. Pay attention to whether debt helps you accomplish a larger financial goal or funding a lifestyle that's difficult to sustain.

A manageable mortgage on a home you can comfortably afford looks very different from carrying revolving credit card debt for vacations, clothing and everyday expenses year after year.

As high-interest debts are paid off, you can also redirect payments toward building assets. Paying off a $500 monthly debt payment, for example, doesn't have to mean finding a new way to spend $500 each month. Instead, consider redirecting some or all of that $500 toward retirement accounts, investments or other long-term goals.

The quiet path to a $1 million net worth

Building a net worth of $1 million generally doesn't happen overnight, and for many middle-class households, that's exactly the point.

Building wealth can take decades of consistently investing, keeping lifestyle creep in check and avoiding high-interest debt that pulls money away from long-term goals. Over time, retirement accounts can grow, mortgage balances can shrink and other assets can increase in value.

You don't have to look rich to become wealthy. Resisting the pressure to upgrade your car every few years, spend every raise or keep up with a more expensive lifestyle can leave more money available to save and invest. These habits aren't flashy, but practiced consistently over time, they can help turn an ordinary income into substantial wealth.

Whether your goal is a $1 million net worth or simply greater financial security, a financial adviser can help you map out a realistic path for getting there.

Use the tool below to connect with a vetted financial professional who can help:

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One of my favorite online reads is the "Tough Love" column in The Free Press, in which author Abigail Shrier dispenses advice to readers seeking help with a wide range of family-related issues.

Recently, Abigail replied to a query from a reader signed Darrill. Darrill sought advice on how to eject his 38-year-old son, who has been living in Darrill's garage apartment for eight years (along with his current girlfriend) and shows no inclination to leave despite having earned two college degrees funded by his parents.

Darrill writes, "We've made it clear that the gravy train ends in six months, and he either moves or starts paying rent, but I have no confidence that things will change by then."

Abigail responds: "How do you make a 38-year-old act like an adult? You can't. You have but one productive role to play in your son's rescue: Kick him out. Cease your mollycoddling and leave the rest to him. Give them two months and then — if necessary — hire a company to box up their things and put them out on the lawn."

Along with most of the dozens of readers who commented, I agreed that in the spirit of tough love, Abigail's counsel was spot on, if often difficult for parents to take. That prompted me to revisit advice I had given to parents of boomerang kids when I wrote my book Raising Money Smart Kids more than two decades ago.

Would the advice of my younger self still hold up, especially at a time when one-third of adults between the ages of 18 and 34 are still living with their parents? Many parents are happy to lend a hand — or a spare bedroom — but how do you keep the kids from becoming too comfy on the couch, stunting their growth into adulthood and possibly jeopardizing your own retirement?

Lay down the house rules.

My best advice, both then and now, is to nip things in the bud by coming up with "The Plan." You and your children should work out in advance the terms under which they'll move back into your home and what they'll do once they get there.

The Plan should start by addressing how long your children will stay. It needn't be a brief interlude, but it shouldn't be open-ended. If your children are home to attend a graduate or training program, their stay could end with the program. If the kids are job-hunting, start with, say, six months and give them an option to renew. Ditto if they have a job and are saving up for a deposit on an apartment. Not being firm enough on this point is one of the biggest mistakes parents can make.

Another big bone of contention is room and board. If your young adults have a job, The Plan should include an arrangement for them to pay at least a nominal amount of rent. If you don't need the money, you can always put it aside for the kids to save for a security deposit on an apartment or to pay off any debt. As an alternative to rent, they could contribute to the cost of food, streaming services or other household expenses. And kids with no income can provide in-kind payment by cooking, grocery shopping, taking over the yard work or performing other household chores.

Whatever arrangement you agree on, it helps to write down the terms in a contract so everyone is working from the same page. And most important, follow through — even if it means, as in Darrill's case, boxing up their things and moving them out.

But it shouldn't come to that if you create The Plan beforehand. It isn't helpful for either of you if you continue to play the role of enabler, conspiring to keep your adult children from growing up.

Note: If you have had adult children return home, let me know how you handled the situation. I'll be happy to share your advice.

Janet Bodnar is editor at large of Kiplinger Personal Finance. Contact her at Janet.Bodnar@futurenet.com.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Your 70th birthday is a major life milestone. From a financial perspective, you now qualify for the highest Social Security benefits (if you waited to claim Social Security at 70) thanks to delayed retirement benefits and, if you worked until this age, potentially more higher-earning years, which can also translate to a higher Social Security check.

But it can also be a rough transition for retirees, who've spent decades saving for this moment and now find it surprisingly difficult to watch their retirement savings go down — even if you've done all the planning and triple-checking to make sure your withdrawal amount is sustainable.

Whether you're worried about running out of money in retirement, overwhelmed by estate planning, or just generally unsure of how you should approach retirement planning when you're already retired, here's a financial checklist for your 70s to help you stay on track and feel more confident about enjoying your money.

1. Create a realistic spending plan, then spend your money

When you're still working, retirement planning is about identifying a healthy target number to save that will give you the lifestyle you want. By your 70s, "Retirement planning should be less about putting life on hold in the name of preservation and more about funding the experiences, and legacy that matter most," Nancy Anderson, director of wealth planning programs at Key Private Bank, told Kiplinger.

While coming up with an annual spending amount on paper is straightforward, shifting from a saving mindset to a spending mindset is much harder. To help make that behavioral shift, Anderson recommends:

• Create separate accounts for separate expense categories. As cash comes in from Social Security, distributions and other income sources, fund your household expenses account first. Put the amount you've allocated for travel and hobbies into a separate account. That way, you can be confident that your essential costs are covered, and you can see at a glance exactly how much you can afford to spend on travel and hobbies. "Knowing that money has been earmarked for a specific purpose can make spending feel more comfortable and intentional," Anderson explained.
• Claim Social Security now if you haven't already. While delaying Social Security can increase your benefits by up to 24%, "waiting beyond age 70 does not create additional value," she said. This guaranteed income isn't vulnerable to market volatility and can give you a spending floor — the minimum you'll be able to spend each month even if all your other assets disappeared.
• Make a plan for required minimum distributions (RMDs). These kick in in your mid-70s and often catch retirees by surprise, warned Anderson. This can throw off your tax planning by increasing taxable income if you don't plan for it. But there are strategies you can use to mitigate that if you get a plan in place before they kick in.
• Review your withdrawal amount annually. Your annual withdrawal amount isn't a "set it and forget it" number. Anderson recommends reviewing your spending amount annually to make sure it's still sustainable. "An annual review provides an opportunity to adjust spending based on market performance, inflation, and personal circumstances," she said.

2. Stress-test your finances annually

In addition to reviewing your withdrawal amount annually based on current market conditions and personal needs, Anderson recommends stress-testing your finances against possible future risks.

"Running stress tests that account for market volatility, inflation, healthcare costs and longevity can help identify potential shortfalls before they become serious problems," she noted.

By examining all the "what if" scenarios you can think of, you'll see exactly how long your savings would last in each one. More important, you'll be able to come up with contingency plans and adjusted spending limits that account for those various risks.

"In many cases, relatively small changes can significantly improve long-term outcomes," Anderson said.

By running these stress tests annually, you can anticipate problems before they become serious and, in many cases, avoid needing to make drastic changes to your spending. "The sooner adjustments are made; the more options are available and the less dramatic the changes typically need to be," she noted.

This habit will replace those vague fears of running out of money with a concrete picture of how your savings would hold up under different scenarios and what adjustments you can make to address specific threats.

3. Plan your retirement in five-year chapters

The biggest risk in retirement isn't necessarily running out of money, Anderson says. "Sometimes, it's about reaching a point where you no longer have the health, energy, or opportunity to do the things you want to do."

That's why she advises clients not to assume spending will remain constant from age 70 to 100. Instead, she recommends planning in five-year chapters. Start by funding the experiences and bucket list adventures you know you'll regret postponing if health or other circumstances prevent you from being able to enjoy them later.

"Many retirees spend more in the initial phase because they have greater flexibility and often want to travel, pursue hobbies or enjoy experiences they postponed while working," she said.

That higher spending up front might make you anxious if you're stuck in that saving mindset. But when you factor that into the plan by planning in five-year chapters and back it up with those annual reviews and stress tests, you can be confident that your overall spending plan is sustainable.

4. Put fraud protection in place before you're targeted

That generous nest egg you worked so hard to build makes you an attractive target to scammers and fraudsters. It also puts you at heightened risk of financial abuse — especially as you get older and start relying more on family to make financial decisions for you.

"Cognitive decline does not need to be severe before financial judgment begins deteriorating," warned Evan Farr, a Certified Elder Law Attorney and retirement planner practicing in Virginia, Maryland, and Washington, D.C.

Even before cognitive decline hits, modern technology is making scams harder to spot. Taking proactive steps now can go a long way toward protecting yourself in the future. Some of the most effective strategies to do that, Farr says, include:

• Enable transaction alerts on your bank and brokerage accounts so you can catch suspicious activity promptly.
• Set up multifactor authentication on all your financial accounts.
• Learn how to freeze your credit now so you can do it quickly when necessary.
• Make a rule that you'll discuss all major transfers or investment decisions with a designated trusted person, such as your financial planner or attorney, before acting.
• Designate a trusted contact to be notified of suspicious transactions. Most major financial institutions will allow you to note this on your account so that if a bank representative notices signs of a scam, exploitation or fraud, they can reach out to this trusted contact.
• Sign strong power of attorney paperwork, and make sure the person you name has the integrity and capacity to take on that responsibility.
• Be cautious about adding family members jointly on your accounts. Even if you trust the person fully, doing so can create conflicts later around ownership and inheritance that you never intended.

5. Reduce unnecessary financial complexity for your heirs

"Many people by age 70 have accumulated numerous bank accounts, brokerage accounts, retirement accounts, insurance policies, real property holdings, past beneficiary designations, passwords and/or decades of documentation," Farr told Kiplinger.

While this might not be a problem for you, it can be a confusing maze of accounts and records to sift through for your heirs.

Farr recommends clients simplify their financial affairs as much as possible and leave a roadmap to make it easier for heirs to know what's what and where to look. That includes consolidating unnecessary accounts and maintaining an up-to-date account of assets and passwords. It can be helpful to do this with a financial planner so you can spot any old 401k or other accounts you might have forgotten about.

Lastly, Farr said to make sure you "inform those who will act on behalf of your client during incapacitation that the documentation exists and how they can obtain access to it."

6. Get more specific with your estate planning

In the past, it might have been enough to name a beneficiary or have a general plan for how your assets would be split among heirs. As you get older, it's time to get more specific with your estate planning to prevent unnecessary conflict or obstacles when carrying out your final wishes.

According to Farr, "While it was previously sufficient to ask who would receive the decedent's assets upon death, today the decedents' estates must address how the assets will pass, who will administer matters should the decedent become incapacitated, whether probate may be avoided, whether an inheritance should pass directly to beneficiaries or remain protected within a trust arrangement(s), and whether the estate plan will lead to conflict amongst the beneficiaries."

You deserve to enjoy the retirement you saved up for

If you've been feeling too nervous to splurge on vacations or start embracing all the hobbies and experiences you promised yourself you'd enjoy once you retired, know that a lot of retirees struggle with that same anxiety.

By following the steps in this checklist every few years, you can ensure that the "permission to spend" amount you're working with truly is sustainable and that you'll be able to catch any shortfalls or issues early to adjust your spending long before you run any real risk of outliving your savings.

Doing the steps with the help of a financial planner can help ease those fears even more as you'll know that an outside expert helped you come up with that realistic, sustainable spending amount.

Use the tool below to connect with a vetted financial professional who can help you stay on track and make the most of the retirement for which you planned:

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Are you maximizing your hard-earned money? If you've been looking at your bank statements and want to earn a little more, now is a smart time to re-evaluate your savings approach.

Why now? Inflation has remained sticky, giving the Federal Reserve less room to cut interest rates.

Instead, I've found that while high-yield savings accounts have been stagnant, CDs have seen higher rates in the past few weeks. I'll explain when you should make the pivot and how much money you're missing by not doing so.

Is it time to switch to CDs?

I review savings accounts weekly and have found that the best CD rates have been increasing in the past few weeks. The highest CD rates are now outpacing many of the best high-yield savings account (HYSA) rates.

Now, CDs won't be the smartest approach for everyone. If you're still growing your emergency fund or need access to your cash, a high-yield savings account is the smarter move. I recommend the one from Newtek Bank, as it offers 4.20% with no account fees or minimums.

That said, if you're comfortable with your cash flow and emergency fund, use this Bankrate tool to find the best rate for your savings goals:

As you'll see, CD rates are significantly higher than they were even three to four months ago. Locking one in now guarantees you a return and annual percentage yield (APY) that currently outpaces inflation in many cases.

However, choosing the right CD term can feel like a gamble; here's how to clarify your options.

Which CD term is right for me?

CDs are inflexible savings vehicles. Once you lock one in, you must keep the money in the account until the term expires. If you need to break it open, you'll generally face an early withdrawal penalty, which can reduce your earnings and, in some cases, your principal.

That's why being intentional with your savings goals can point you to the right term. If you're concerned about inflation rising again and don't want it to erode some of your future purchasing power, a short-term CD might be worth considering, such as a six-month or one-year CD.

This achieves several objectives:

• You won't have your money tied up for long.
• You'll have the flexibility to pivot to other savings or investment solutions as economic conditions clarify.
• If the Fed decides to hike rates in the future, you'll be in a prime position to capitalize.

Such a move could help you earn hundreds of dollars more in the interim with the higher APY. Here's a comparison of what you would earn with a $100,000 HYSA vs a $100,000 jumbo CD:

Alternatively, if you're approaching retirement and want to move some of your cash to safer investments without chasing APYs, a long-term CD can still be a smart move. You'll earn a guaranteed return, with APYs as high as 4.40%.

That can give you peace of mind and assurance that your money is safe from market dips. CDs at federally insured banks and credit unions are also protected by FDIC or NCUA insurance, generally up to $250,000 per depositor, per institution and ownership category.

If you have a large sum of money to move (think $100,000 or more), a jumbo CD might be worth considering. You'll earn a rate as high as 4.55%, with maturity windows of around one year.

Before signing up for any CD, consider the tax situation.

Factor in the tax implications of a CD

As part of your savings strategy, keep in mind that interest earned on a CD is generally taxable as ordinary income. With CDs that mature in more than one year, you might have to report a portion of the interest as it accrues each year, even if you don't receive the money until the CD matures.

As you calculate your potential return, consider your current tax bracket or consult a tax professional about how CD interest could affect your overall tax liability.

Overall, with some of the best CD rates moving higher, now is a good time to take a fresh look at your savings strategy. High-yield savings accounts remain a smart choice if you're building an emergency fund or need easy access to your cash.

However, if your emergency fund is established and you have money you won't need for a set period, locking in a CD rate might be worth considering. Think about your savings goals and when you'll need the money to determine the right term for you. That way, you can take advantage of a competitive rate without giving up access to money you might need sooner.

Not sure how CDs fit into your broader savings strategy?

A financial professional can help you weigh your options and decide how to put your cash to work based on your goals, timeline and need for flexibility. Use the tool below to connect with a vetted financial professional today:

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• Do You Have a CD Maturing Soon? Here's What to Do Next
• Don't Lock in a Long-Term CD Yet: The Moves to Make Instead

Power outages are more than inconvenient; for homes relying on medical equipment, they're a safety risk. Additionally, there's another, quieter crisis hitting homes: The 116% surge in electricity costs over the past 25 years.

To illustrate, the average electricity rate in August of 2000 was 0.091 cents per kWh. In July of 2026, that rate increased to 0.197 cents per kWh, according to the Federal Reserve Bank of St. Louis.

For many homeowners, the conversation around solar use circles back to a single metric: The financial return on investment. However, if you're looking at the next chapter of your life, the true value of these systems extends far beyond a monthly electric bill. It represents building a resilient homestead and moving away from reliance on an outdated and overtaxed grid.

How homeowners can prepare for an unreliable grid

The reality is we are relying on an electrical grid built over 100 years ago. Dr. Michael Stadler, an expert in energy systems and the Chief Technology Officer at Xendee, told Kiplinger this will become increasingly problematic as demand from climate change and AI data centers increases.

The Department of Energy released a report last year titled Report on Evaluating U.S. Grid Reliability and Security. It warns that blackouts could increase one hundredfold in 2030 if the US continues to shutter reliable power sources and doesn't add more firm capacity.

Reliability on an aging network is a cost issue. Most importantly, it's a stability issue too. If you're a homeowner, this creates an almost must-have shift away from traditional means to energy sovereignty. A solar and battery system can serve as an insurance policy, ensuring your home remains powered and secure even with increasing blackouts.

How to make your home more energy independent

One of the shifts is seeing homeowners move away from passive consumption, where you rely on your electric utility/supplier for power, to self-sufficient hubs. Using photovoltaics (PV) and battery storage means you've created a localized microgrid.

This has several advantages for your home's journey toward energy independence. It means that when rolling blackouts or power outages occur, your home will retain power since it isn't relying on the grid. And you can sell your excess power (offsets or net metering) to your local energy company if your state laws allow.

What's more, smart control systems make it easy to manage power. It optimizes how you use and store electricity, and when to sell it, based on real-time grid needs. Dr. Stadler recommends selling offsets during peak demand, when you're likely to earn more for them. This automation not only helps you optimize earnings, but it also protects your home for years to come.

Is the ROI worth it?

While these systems require a significant initial investment, usually in the $20,000 to $40,000 range, federal tax incentives, such as the Clean Electricity Investment Credit, provide a six percent tax credit on the qualified investment. Dr. Stadler notes that if your current rate is at or above 20 cents per kWh, the economics of installing such a system become increasingly favorable.

Keep in mind that your electric rate is only one component of your bill. In my case, I found that the transmission/delivery fee is almost half of what I pay. With solar, the excess energy gained and sold could help offset these delivery fees while reducing your energy reliance on the grid, bringing down costs even more.

Another consideration is that solar is clean energy. In some cases, the energy you receive from your electric company can be dirty. Dirty electricity can take the form of high-voltage spikes, harmonic distortions and surges that, over time, can shorten the lifespan of your appliances and electronics.

Is your home ready for a microgrid?

Keep in mind that not every home will be an ideal fit for a microgrid. Use this checklist to evaluate whether your home has the elements required for a successful transition:

• Roof health: Make sure your roof shingles and structure are in good shape since solar panels last 25 to 35 years. If not, you'll need to budget for a new roof.
• Sun exposure: Does your home have obstructions such as large trees or neighboring buildings that cast ample shade? This might limit its effectiveness.
• Energy use: Examine the last year of utility bills to determine your average kWh monthly. This is essential for choosing the right-sized system for your home.
• Local regulations: Read up on your state's net-metering policies. Some homeowners associations might also have restrictions on where you place panels.
• Critical load: Determine which appliances you want on during an outage, as this will decide the battery storage system size you need.

Taking these considerations into account can help you determine if your home is ready for a microgrid.

Ultimately, investing in solar isn't only about reducing your electricity bills; it's about building a resilient, energy-efficient asset. Solar is becoming an essential home improvement that secures your property's independence in a future where grid reliability isn't guaranteed.

Making your home more energy independent can be a significant investment. A financial professional can help you build a plan for upgrades such as solar and battery storage while balancing them with your other financial priorities.

Use the tool below to connect with a financial professional and get started:

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Homeowners age 62 and older hold almost $15 trillion in home equity, nearly double the total of early 2020, according to data from the National Reverse Mortgage Lenders Association. If you own your home or another property, you have another financial resource for renovations, debt consolidation, extra income or even a business investment. But accessing that value is not as simple as withdrawing cash from the bank or selling shares in a retirement account.

"Using home equity is a puzzle," says Ashley Morgan, a debt attorney in Chantilly, Va. "It goes beyond whether you can afford to take the money out. You also need to consider how that decision fits with your future financial and housing goals."

Whether you need extra money now or simply want to understand the possibilities, here's what you should know about using home equity in retirement.

1. There are multiple ways to tap home equity.

Home equity is the portion of a property's value that you own outright. In other words, it's what you would receive if you sold, after paying any remaining mortgage debt and transaction costs.

Selling is the simplest way to cash out your equity, but there are other ways to access that value while staying in your home, each with its own tradeoffs.

The right option depends on what you need the money for, whether you can afford ongoing loan payments and whether the property still fits how and where you want to live in retirement.

2. A HELOC provides borrowing flexibility.

With a home equity line of credit (HELOC), you receive a borrowing limit based on the value of your property. You decide when and how much to draw, and typically owe interest only on the amount borrowed. After you repay the balance, that credit generally becomes available to borrow again.

"A HELOC gives you the ability to prepare for future expenses or cover projects that happen in multiple stages," says Fabien Thierry, head of home equity lending at Citizens Bank. However, HELOCs typically charge adjustable interest rates, so the monthly payment can change.

3. A home equity loan makes sense for a specific need.

A home equity loan provides a lump sum of cash upfront, which you repay on a set schedule, usually with a fixed interest rate and monthly payments.

Interest begins accruing on the full amount immediately, and some loans charge a prepayment penalty if you repay early. Home equity loans can work well for a specific expense, such as a major renovation or accessibility upgrade.

In a 2026 Citizens Bank survey of homeowners, 44% said renovating their property to fit their needs better was their most realistic housing option. Just 13% said buying another home felt achievable.

4. Borrowing against your home equity is affordable, but carries extra risk.

Home equity loans and HELOCs use your house as collateral. Interest rates for home equity loans and HELOCs averaged about 8%, compared with 12% for unsecured personal loans and nearly 20% for credit cards, according to a national Bankrate survey of lenders in June 2026.

The tradeoff is that if you fail to make the scheduled payments, the lender could eventually foreclose on your home.

5. A reverse mortgage lets you stay in the home without monthly loan payments.

A federally insured Home Equity Conversion Mortgage is available starting at age 62. You can receive the money as a lump sum, installment payments or as a line of credit.

Interest and fees are added to the loan balance over time. The balance becomes due when you sell the property, move out permanently or pass away. However, your heirs will not owe more than the property's value if the loan balance grows beyond it.

You must continue to cover property taxes and insurance, and keep the home in good condition. Otherwise, the lender could foreclose on the home.

6. Home equity investments offer cash, but at a high price.

With a home equity investment (HEIs), also known as a home equity sharing agreement, you sell a percentage of your equity to an investor. You get cash upfront and don't owe ongoing loan payments. Instead, the investor collects when you sell or refinance the home later.

These deals have grown more popular as homeowners look for ways to tap their equity without adding another monthly bill. Because the cost is deferred and tied to the home's future value, they can feel far less expensive than they are.

Here's an example: A homeowner receives $50,000, equal to 10% of a $500,000 home's value. They would owe $110,000 after 10 years if the property appreciates at 1.5% annually, or $187,000 if it appreciates at 5.5% annually, based on estimates from Point, an online provider of HEIs. Processing and other fees can also reduce the cash you receive.

By comparison, a 10-year home equity loan for the same amount at an 8% interest rate would cost about $73,000 to repay. "The seller may not realize how much upside they are giving away," says Luca Rassenti, a financial adviser in Tucson, Ariz.

7 Compare your options.

When borrowing against the equity in your home, compare offers from several lenders before committing. "Look at the rate, the support during the application process and how quickly you can get the money," says Thierry from Citizens Bank. Many banks offer online calculators that can give you an initial estimate of the rate and monthly payment.

Shopping around also matters for reverse mortgages and home equity investments, where fees and contract terms vary considerably.

Use the Bankrate tool below to explore and compare today's top refinance offers:

8. Selling unlocks your equity, but costs can add up.

Selling is the most direct way to access all your home equity. Downsizing to a less expensive property can also free up cash and reduce future housing costs.

However, you will lose value due to transaction costs and taxes, typically running up to 10% of the property for selling and 5% for buying another one, according to Zillow. So price out the full cost of the move before counting on a large amount of extra cash.

Single homeowners can exclude up to $250,000 of profit from their taxes for the sale of a primary residence, or $500,000 for a married couple filing jointly, as long as you (or your spouse) have lived in the home for two out of the last five years. "If you've owned a house for many years, you could have a substantial taxable gain," says Morgan, the debt attorney from Virginia.

9. Saving equity prepares for future needs.

Untapped home equity can serve as a reserve for later costs, including assisted living or long-term care. About 80% of 65-year-olds will need long-term care at some point, according to the Center for Retirement Research, and costs can run over $100,000 per year.

Before tapping your equity for a less urgent expense, consider whether other savings or assets could cover it and preserve that buffer.

10. Include your heirs in the plan.

When you pass away, your real estate receives a step-up in basis to its market value at that time. That means your heirs could sell it without owing taxes on the appreciation during your ownership.

If you need cash, Rassenti suggests asking your heirs whether they would provide a loan or gift today, with the expectation that they will inherit the property later. They may also have emotional reasons for wanting to keep a longtime home in the family. "Talk to the kids about what matters to them," says Morgan.

Note: This item first appeared in Kiplinger Retirement Report, our popular monthly periodical that covers key concerns of affluent older Americans who are retired or preparing for retirement. Subscribe for retirement advice that's right on the money.

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You've used your airline miles to save on your flight, carefully shopped around for the best hotel or lodging prices and done the hard work to save money on your international vacation.

But there's one potential financial catch you may have overlooked: how you'll pay for things once you're abroad.

Exchanging money, withdrawing cash and using your credit or debit card overseas can all come with added costs. Unfavorable exchange rates, foreign transaction fees and ATM charges can quickly eat into your travel budget, and some of the most convenient options can also be among the most expensive. Before you leave, it helps to understand your payment and currency conversion options. Here are some common money mistakes to avoid when traveling internationally.

1. Accepting dynamic currency conversion

Some businesses offer dynamic currency conversion when you make a purchase using a credit or debit card. If you accept the conversion, you can complete the transaction using U.S. currency. The card processor automatically calculates the conversion and adds on any additional fees.

Dynamic currency conversion rates often include a markup over the exchange rate that your bank would use. Extra fees may also be bundled into the conversion rate, so you’ll often pay a higher rate for dynamic currency conversion than you would if your bank performed the conversion.

Generally, you will save money by choosing to complete the transaction using local currency, then letting your card network handle the conversion.

2. Exchanging money at the airport

Airport currency exchange booths are convenient, especially if you arrive without any local cash. But you may pay a premium for that convenience. These booths often offer less favorable exchange rates than banks and may charge additional fees, making them one of the more expensive ways to get foreign currency.

If you know you'll need cash when you arrive, consider planning ahead. Check whether your bank allows you to order foreign currency before your trip and compare the exchange rate and any fees. Another option is to wait until you reach your destination and withdraw a small amount of local currency from a bank-operated ATM. Just be sure to check your bank's international ATM fees before you travel.

3. Using the wrong ATM

When you need cash abroad, look for an ATM operated by a bank rather than an independent ATM in an airport, hotel, bar or other high-traffic area. Independent ATMs may charge higher fees or offer less favorable currency conversion rates. A bank-operated ATM, particularly one located at or inside a bank branch, may offer a better option.

But using a bank ATM doesn't necessarily mean the withdrawal will be free. You could still face several ATM fees. The ATM operator may charge a fee for the transaction, and your own bank may charge an out-of-network fee. International withdrawals can come with additional costs, too. According to Bankrate, international ATM withdrawals often carry an additional fee of 1% to 3% of the amount withdrawn.

Before your trip, check your bank's international ATM policy. Some banks reimburse certain ATM fees, while others have partnerships with overseas banks that may allow you to withdraw cash with fewer fees. Knowing which ATMs to look for before you arrive can help you avoid unnecessary charges.

4. Choosing U.S. dollars at a foreign ATM

When using an ATM abroad, you may be asked whether you want the transaction converted to U.S. dollars or processed in the local currency. You might see a message such as, "This ATM offers conversion to your home currency."

This is another form of dynamic currency conversion, similar to what you may encounter when paying with a credit or debit card at a store or restaurant. Choosing U.S. dollars allows the ATM operator to perform the currency conversion, often using an exchange rate that includes a markup or additional fees.

The wording on the screen isn't always straightforward. You may be asked whether you want to "accept conversion," "continue with conversion," or be charged in your home currency. In most cases, choosing the local currency and declining the ATM's conversion allows your bank or card network to handle the exchange instead.

Before completing the withdrawal, review the exchange rate and any fees displayed on the screen so you understand what you'll be charged.

5. Paying foreign transaction fees

A foreign transaction fee is an extra charge some credit card issuers apply when you make purchases outside the U.S. or with a foreign merchant. These fees are often around 3% of the purchase price, which may not sound like much until you add up everything you spend during a trip.

For example, if you charge $6,000 in hotels, restaurants, transportation, shopping and other expenses to a card with a 3% foreign transaction fee, you could pay an additional $180 in fees.

Before traveling, check your credit card's terms to see whether it charges foreign transaction fees. Many travel credit cards don't charge them. If your current card does, compare your options before your trip and consider whether a card without foreign transaction fees makes sense for your spending and travel habits.

6. Taking a cash advance on your credit card

A cash advance on your credit card lets you borrow cash against your available credit, but it can be an expensive way to get money while traveling. Unlike a debit card withdrawal, which takes money directly from your bank account, a credit card cash advance is borrowed money that you'll need to repay.

Cash advances typically begin accruing interest immediately, without the grace period that often applies to regular credit card purchases. You may also pay a cash advance fee, often around 3% to 5% of the amount withdrawn. Depending on where you get the cash, ATM fees may apply as well.

If you need cash while traveling, withdrawing money from your bank account with a debit card will generally be less expensive than taking a credit card cash advance. Check your bank's international ATM fees and withdrawal policies before your trip so you know what to expect.

7. Carrying too much cash

It might be tempting to withdraw plenty of cash for your trip, but think carefully about the potential theft or loss of that money. If you have leftover currency at the end of your trip, you'll need to convert that back to U.S. dollars, which isn't convenient and comes at a conversion cost.

Consider using a mix of payment methods to cover your expenses during your trip, such as a credit card that doesn’t charge foreign transaction fees and some cash that you've converted. Keep some backup cash separate from your primary wallet in case of theft or loss.

In certain situations, cash may still be necessary, such as for easily tipping hotel staff or when you’re making small purchases, like buying snacks. It’s also helpful to have cash as a backup in case you experience an issue with your card or a business’ card reader is down, but for safety's sake, don't go overboard with the amount of cash you keep on hand.

Preparing for your trip

There are plenty of ways to access and spend money abroad, but some options can cost significantly more than others. Before you leave, familiarize yourself with your choices and make a plan for how you'll pay for purchases and access cash.

A little preparation can help you avoid unnecessary conversion costs, foreign transaction fees and ATM charges, leaving more of your travel budget for the experiences you planned the trip for.

Put your vacation fund to work

Avoiding unnecessary fees can help you stretch your travel budget once you're abroad, but smart planning can start well before you leave. If you're setting aside money for an upcoming trip, consider keeping your vacation fund in a high-yield savings account or CD, where it can earn interest while you plan.

Use the Bankrate tool below to compare some of today's top savings accounts and CDs and find an option that fits your travel timeline:

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Sam’s Club shelves are filled with Member’s Mark products, encompassing everything from groceries and prepared foods to paper products and household essentials. This private label can sometimes offer a lower-priced alternative to national brands, helping shoppers to stretch their warehouse-club budget.

But with so many Member’s Mark products available, it can be tricky to determine which ones are worth trying. Since some of these products are sold in large or even bulk portions, you want to be sure they deliver on value before you make a purchase.

We looked at what Sam’s Club shoppers are recommending, including products that repeatedly earn praise in Reddit discussions, to find 10 Member’s Mark favorites worth a try.

What is Member’s Mark?

Member’s Mark is Sam’s Club’s private-label brand, with products spanning groceries, household essentials, clothing and accessories, pet supplies, home decor and more.

Like other Sam’s Club merchandise, Member’s Mark products are backed by the retailer’s 100% satisfaction guarantee. Most items can be returned at any time, although some products, including electronics and alcohol, are subject to different return restrictions.

Private-label brands can help warehouse clubs keep costs down because they typically require less spending on advertising and marketing than national brands. They also give retailers more control over pricing and can help build loyalty by offering products shoppers can’t buy elsewhere.

That can translate into lower prices for members, but a store brand isn’t automatically the best deal. Compare unit prices, especially when buying in bulk, rather than relying on the package price alone. If you find a Member’s Mark product you like just as much as the national-brand alternative, choosing the lower-priced option could help you save.

Household essentials Sam's Club shoppers recommend

Member’s Mark offers plenty of everyday household essentials, and several consistently earn praise from Sam’s Club shoppers. These three picks combine positive shopper feedback with prices that can compete with national brands.

• Member's Mark Ultra Premium 2-Ply Toilet Paper — Member's Mark toilet paper receives some of the strongest recurring recommendations online. Many shoppers praise the quality of the toilet paper, saying it's better than Costco’s TP. The Member's Mark toilet paper's price breaks down to $0.0023 per sheet, while Quilted Northern Ultra Soft & Strong 2-Ply Toilet Paper breaks down to $0.0031 per sheet.
• Member's Mark Select & Tear 2-Play Paper Towels — The 15-roll pack of paper towels is another shopper favorite, offering the opportunity to save on a household staple. The Member's Mark paper towels cost $0.0093 each, while Bounty Select-A-Size 2-Ply Paper Towels cost more than twice as much at $0.19 each.
• Member’s Mark 33-Gallon Power Flex Drawstring Trash Bags — This 90-count package of large trash bags breaks down to a cost of $0.23 per bag. In comparison, you’ll pay $0.25 per bag if you buy a 90-pack of Hefty Ultra Strong 33-Gallon Drawstring Trash Bags.

Member's Mark foods Sam's Club shoppers recommend

• Member's Mark Southern Style Chicken Bites — Another fan favorite, these chicken bites are crafted with white meat chicken and are lightly breaded. They can be prepared with an air fryer, conventional oven or microwave, so they’re a quick option for a snack, party or dinner.  
• Member's Mark Pineapple Spears in Coconut Water — This unusual product gets enthusiastic recommendations. Yes, it costs substantially more than your typical jar of canned pineapple, but the flavor combination makes it a must-try. The pineapple is packed with vitamin C and is an ideal addition to smoothies, desserts, fruit salads and more.
• Member's Mark Fully Cooked Bacon — The 10.5-ounce package of Member’s Mark Fully Cooked Bacon sells for $13.46. It’s frequently mentioned by shoppers online, and since it’s already cooked, it’s an easy addition to breakfasts, BLTs, soups and more. It’s also slightly cheaper than a 10.5-ounce package of Hormel Black Label Fully Cooked Bacon, which costs $15.87.
• Member's Mark BBQ Baked Beans with Brisket— This flavorful side dish is a frequently mentioned item. It combines bites of slow-cooked brisket with molasses and brown sugar for a touch of sweetness. It’s a great choice for a dinner or BBQ side.
• Member's Mark Indian Butter Chicken — Member’s Mark Indian Butter Chicken is one example of the brand’s numerous prepared meal selections. Ready to heat and eat, this convenient 32-ounce meal delivers six servings, perfect for larger families or leftovers.
• Member's Mark Iced Cinnamon Rolls — Ready for breakfast or dessert, Member’s Mark Iced Cinnamon Rolls are a popular bakery pick. They’re crafted with the Member’s Mark Made Without Commitment, meaning they’re free of more than 40 ingredients like high fructose corn syrup and certified synthetic colors.
• Member's Mark Seasoned Rotisserie Chicken — Made fresh daily, Member’s Mark Seasoned Rotisserie Chicken is a simple and affordable mealtime solution. You can pair it with one of the Member’s Mark side dishes or make your own sides. The chicken is crafted without any antibiotics, MSG or artificial flavors or colors.

How to decide if a Member’s Mark product is a good deal

When shopping at Sam’s Club, Member’s Mark products may offer a good deal, but it’s still important to comparison shop. Compare unit prices, not just packaging prices, to get the most accurate idea of how prices compare and whether you’re really saving with a Member’s Mark product.

If you’ll be buying in bulk, consider whether you’ll actually use all of the product before it expires. Some products may be frozen, but others can go stale or can spoil.

When comparing a Member’s Mark product against a national brand, consider the ingredients, size and features. A lower price on a Member’s Mark product isn’t necessarily a better value if you don’t end up liking the product or if you can’t fully use the larger quantity without having to throw out some of the product. Always keep your household’s preferences and habits in mind when deciding which products are the best choice and truly offer the best value.

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High-yield savings accounts (HYSAs) are one of the best places to keep your emergency funds and other short-term savings. HYSAs often offer significantly higher APYs than traditional savings accounts, putting your money to work to earn more.

Putting your savings into a HYSA can help maximize what it earns in interest while keeping it accessible if you need the cash. But opening a HYSA doesn't guarantee that you're getting the maximum return on your money.

Small habits and overlooked details might quietly reduce your earnings or keep your money from working as hard as it could. Here are five common HYSA mistakes to avoid.

1. Sticking with a low-rate savings account

Many people keep emergency savings in their primary savings account, where it earns a fraction of the interest it could earn in an online HYSA.

Since online banks don't face the overhead that brick-and-mortar banks do, they often pass those savings along to customers in the form of perks, such as higher interest rates on HYSAs. HYSAs currently offer annual percentage yields (APYs) up to about 4.2%, while traditional savings accounts offer an average APY of 0.38%, according to Experian. Interest on both types of accounts typically compounds monthly, meaning your earnings can generate additional interest over time.

Let’s say you deposit $10,000 into a HYSA earning 4% APY. If the APY remains unchanged and you don't make any withdrawals, you could earn about $400 in interest after one year.

By comparison, that same $10,000 in a traditional savings account earning 0.38% APY would earn about $38 after one year. That’s roughly $362 less than you could earn with a HYSA paying 4% APY.

2. Chasing every tiny APY increase

You want to choose a HYSA that offers a competitive rate, but it’s often not worth the hassle to switch banks every time another institution offers 0.05% or 0.10% more in interest. Interest rates are variable, so making the switch for a small increase in earnings might not pay off.

Instead, look for larger and more meaningful perks:

• Convenience: A bank that offers streamlined digital banking or other banking products you need might be an appealing and more convenient option.
• Customer service: If you’ve had a negative experience with your bank’s customer service, then you might consider changing to another bank with a reputation for excellent customer service.
• Account features: It might be worth it to switch to a bank that offers desirable features such as no monthly fees, a low or no minimum balance and lots of freedom on withdrawals.

3. Keeping all your savings in cash

HYSAs are ideal for your emergency fund and short-term goals, since the money remains easily accessible while earning interest. But HYSAs aren't the ideal solution for long-term savings goals.

If you have money earmarked for retirement goals several years away, it might be better invested or placed in a certificate of deposit (CD). According to Bankrate, CDs earn around 4% APY, with top rates reaching 4.35%.

Unlike HYSAs, in which interest rates are variable, CDs feature a guaranteed rate, and their APY might be even higher than a HYSA. Depending on your timeline, a CD might be an ideal choice for your long-term investments.

Not sure where your savings should go? A financial planner can help you build a strategy for your money based on your short- and long-term goals, including how much to keep accessible in savings and how much to consider investing for the future.

Use the Bankrate tool below to connect with a financial professional who can help you map out your next steps:

4. Forgetting to review your account

Since HYSAs feature variable interest rates, your bank might raise or lower that rate over time. Letting your account sit without periodically reviewing it can be a mistake that might cause you to miss out on potential interest.

Check your account's interest rates a few times a year to ensure that it stays competitive. Check a few weeks after Federal Reserve meetings; if the Fed raises or lowers the benchmark interest rate, your bank might also follow. If your HYSA’s APY drops, consider shopping around to see if you can find an account with a more competitive rate.

5. Ignoring FDIC insurance limits

As with any other banking product, it's essential to verify that your HYSA is insured and your money is protected. The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 of your money per ownership category, per insured bank.

For example, if you have a HYSA and a checking account at an FDIC-insured bank, then up to $250,000 of the value of those combined accounts is insured.

If you have larger balances exceeding $250,000, consider dividing those balances across multiple banks or multiple ownership categories, such as by putting your money in a single account, a joint account and a trust account.

Contact any bank you use or are considering using, and verify that it’s FDIC-insured so that you know your money is protected. The bank can also help you determine which types of accounts are insured, so you can strategically and confidently choose the best places for your money.

Make the most of your high-yield savings account

Opening a HYSA is a smart first step to putting your money to work, but getting the most from the account requires making an extra effort. Periodically review your APY rate, be sure you understand how the account works, and make sure your savings strategy fits your financial goals.

Performing a few check-ins each year, such as by verifying the HYSA’s current interest rate, can help ensure your cash continues earning a competitive return. It can also ensure that your money stays protected, and your financial strategy stays aligned with your short- and long-term goals and needs.

Savings rates can change frequently, so it pays to periodically compare your account with other options.

Use the Bankrate tool below to explore some of today’s top-earning savings accounts and see whether you could earn more on your cash:

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Single drivers in California may pay more for auto insurance than married drivers following a recent court ruling.

In July, a California appeals court upheld a decision allowing insurers to continue using marital status as an optional factor when setting auto insurance rates, according to the Los Angeles Times. The court rejected a lawsuit arguing that the practice violated California’s anti-discrimination laws.

Here’s what the ruling means for California drivers, whether it could affect drivers in other states and what you can do if you're paying more for coverage.

What it means for California drivers

Given the appeals court’s ruling, married drivers in California may continue to pay lower auto insurance premiums than unmarried drivers with similar risk profiles. Depending on the insurer and policy, single, divorced and widowed drivers could pay approximately $56 to $100 more per year.

Marital status is just one of many factors insurers may use to calculate premiums. Your driving record, annual mileage, location, claims history, vehicle type, age and gender can also influence how an insurer assesses your risk and, ultimately, how much you pay for coverage.

Could this affect drivers outside California?

Insurance rating laws vary widely by state. Some states prohibit or restrict insurers from using certain personal characteristics in their rating calculations. For example, while many states allow insurers to consider a driver’s credit score when calculating their rates, Massachusetts, Michigan, Hawaii and California have banned the practice.

New York prohibits insurers from using a driver’s occupation and education as rating factors, while Michigan prohibits the use of factors like gender and education.

California’s court ruling doesn’t change insurance laws in other states, but regulators, insurers and consumer advocates may watch its impact. The decision allows California insurers to use marital status as a rating factor when it can be shown to relate to driver risk.

At this time, only Massachusetts and Hawaii have barred insurers from using marital status as a factor.

What drivers can do if they're paying more

If your car insurance costs continue to climb or suddenly spike, you may be overpaying. Regardless of your marital status or where you live, there are several ways you may be able to lower your premiums:

• Compare quotes every renewal: When your policy renews, shop around and compare quotes from other insurers. If another insurer offers you a lower premium for the same coverage, your current insurer might be willing to match that quote to retain you as a customer. Alternatively, you might find that another insurer offers you a better deal and decide to switch your insurance.
• Ask which discounts you're eligible for: Call your current insurer and ask about their available discounts. You might find you qualify for discounts that you’re not currently receiving, and adding those discounts in can help lower your premiums.
• Bundle policies if it makes financial sense: You may be able to save money by bundling policies, such as bundling your home and auto insurance policies. Just make sure that the decision makes sense for you, and that you’re not transferring a policy to an insurer that doesn’t really meet your needs, just to take advantage of a bundle offer.
• Review your deductible: You may be able to lower your auto insurance premium by increasing your deductible, but this decision comes with some risk. If you ever have to file a claim, you’ll need to pay the deductible upfront, so make sure you have enough cash set aside to do so. If you decide to choose a higher deductible, it’s a good idea to put the payment for the deductible in a high-yield savings account so it’s accessible if you need it but earns interest in the meantime.  
• Evaluate your optional coverage: Depending on your state, certain types of car insurance are optional. Collision and comprehensive are often optional as long as you own your vehicle outright, and roadside assistance and some higher policy limits are optional, too. Dropping some optional coverages can help lower your premium, but you’ll need to consider the level of risk that you’re comfortable with before you decide to drop the coverage.

Since insurers weigh rating factors differently, simply shopping around for auto insurance is one of the best ways to ensure you’re getting a good rate.

Make sure that you’re comparing policies with the same types of coverage, coverage limits and deductibles. It’s easy to renew your policy out of habit, but making a point of shopping around at least once a year may help you lower your car insurance rate while still getting the coverage you need.

Use the Bankrate tool below to gather quotes and compare today's top car insurance offers:

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Credit card debt can quickly become overwhelming, especially when high interest rates make it difficult to reduce your balance even as you make payments. While Experian reports that the average credit card interest rate is 19.35% as of July, rates can reach nearly 30%. If you're only making minimum payments, it can be difficult to keep up.

Your home's equity may offer a way to manage that debt. By borrowing against your home equity, you may be able to pay down or eliminate your credit card balance and potentially reduce the amount you're paying in interest. But using an option such as a home equity line of credit (HELOC) also puts your home on the line.

If you're struggling with credit card debt but have equity in your home, you have options. Before you tap your home equity, make sure you understand how each option works and the risks involved.

When using home equity to pay off debt makes sense

Using home equity to pay off credit card debt can make sense in certain situations. If you have credit card debt with an APR of 20% or higher, for example, a HELOC or home equity loan may offer a lower interest rate and reduce the amount of interest you pay.

But interest rates aren't the only factor to consider. If you can't make the payments on a HELOC or home equity loan, you could potentially lose your home. Before borrowing, make sure the payments comfortably fit your budget and you have a clear plan for paying off the debt.

You'll also need enough home equity to qualify. Many lenders limit how much of your home's value you can borrow against, often requiring you to retain a certain amount of equity in the property.

For example, say your home is worth $400,000 and you owe $250,000 on your mortgage. That gives you $150,000 in equity. If your lender requires you to maintain 20% equity, or $80,000, you may be able to borrow up to $70,000 of your available equity, depending on the lender's requirements and your qualifications.

Compare your options before borrowing

There are several ways to pay down credit card debt, including options that let you borrow against your home equity. Each comes with different costs, requirements and risks, so it's important to compare them before deciding which approach is right for you.

Both a HELOC and a home equity loan use your home as collateral. With a HELOC, you can borrow from a revolving line of credit as needed, up to your approved limit. A home equity loan, on the other hand, provides a lump sum that you repay over a set period.

The biggest downside: You're putting your home on the line

HELOCs and home equity loans are forms of secured debt and typically have lower interest rates than credit cards. But that lower rate comes with a significant risk: Your home serves as collateral. If you fall behind on payments, you could face foreclosure and potentially lose your home.

Even if you have a solid repayment plan, consider how an unexpected job loss, medical bill or other major expense could affect your ability to make payments. HELOCs come with another consideration: They typically have variable interest rates, meaning your rate and monthly payment could increase over time.

Using a HELOC or home equity loan also doesn't address the reason you accumulated credit card debt in the first place. Before taking on new debt to pay off your credit cards, consider what led to the balances and whether you've addressed the underlying issue.

Questions to ask before using your equity

If you're on the fence about using your home equity, these questions may help you decide:

• Can I realistically pay this off? Make sure the monthly HELOC or home equity loan payment comfortably fits into your budget, with room for other expenses.
• Will my monthly payment decrease? Depending on your credit card balance and interest rate, switching to a HELOC or home equity loan may result in only a small reduction in your monthly payment, or none at all.
• Am I solving a temporary problem or creating a bigger one? Consider what caused you to accumulate credit card debt and whether you've addressed that issue before taking on new debt to pay it off.
• Is my income stable? Consider whether you could continue making payments if your income dropped or you unexpectedly lost your job.
• Do I have an emergency fund? Ideally, have enough savings to cover three to six months of living expenses so an unexpected expense doesn't interfere with your debt repayment plan.

Alternatives that may be safer

Using home equity isn't right for everyone, and there are several alternative options that may be safer:

• Debt consolidation loan: A debt consolidation loan lets you combine multiple debts into a single loan with one monthly payment. If you qualify for a lower interest rate than you're currently paying, you could also save money on interest. Compare rates, fees and repayment terms before applying.
• Balance transfer credit card: A balance transfer card may offer a 0% introductory APR for a limited time, allowing you to pay down your balance without accumulating additional interest during that period. Most cards charge a balance transfer fee, and any remaining balance may be subject to a much higher APR once the promotional period ends.
• Debt avalanche method: If you have multiple debts, the debt avalanche method can help minimize interest costs. Make the minimum required payment on each debt, then put extra money toward the debt with the highest interest rate. Once that's paid off, move on to the debt with the next-highest rate.
• Credit counseling: A nonprofit credit counseling agency can help you review your finances, create a budget and develop a plan for paying down debt. Depending on your situation, a counselor may also discuss whether a debt management plan is appropriate.
• Budget adjustments: Look for expenses you can temporarily reduce and redirect that money toward your credit card balance. Even smaller cuts to discretionary spending, such as dining out or entertainment, can give you more money to put toward debt each month.

Your home equity can be a valuable financial tool, but it isn't free money. Borrowing against it means taking on new debt and putting your home at risk if you can't make the payments.

Before using home equity to pay off credit card debt, consider what led to the debt and whether you have a realistic plan for repaying what you borrow. A lower interest rate can save you money, but only if you can comfortably manage the new debt without putting your home at unnecessary risk.

If you’re considering tapping your home equity, refinancing may be another option worth comparing to see how today’s rates and offers could affect your monthly costs.

Use the Bankrate tool below to compare today's top refinance offers:

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Retirement is supposed to be carefree and financially predictable, but that doesn't mean you're exempt from recurring bills. That's particularly true if you own a home. Everything from maintenance to insurance comes at a cost. How you pay those bills — all at once or over time — can have a big impact on your savings and cash flow.

The secret to saving money is timing. Some annual expenses offer discounts if you lock them in early, while others are best kept flexible so you can shop around or keep your money earning interest.

To help you figure it out, here are four everyday bills you should wait to pay to save some serious cash.

4 bills retirees should not prepay

1. Heating oil

For retirees who value predictability, locking in heating oil rates ahead of winter provides peace of mind amid volatile energy markets, but they typically pay extra for that relief.

A fixed-rate plan locks in your price for the entire season, protecting you from cold-weather price spikes. But you won't benefit if market prices drop. A capped-price plan sets a ceiling and lets you pay lower rates if prices fall, but dealers usually charge an upfront protection fee for that option.

The cheapest option, according to nonprofit consumer energy groups and state agencies, is a floating-rate plan. With that, you pay the current market rate and that's it. Over multiple years, those savings can add up.

2. Electricity

Just like heating oil, you can lock in your electricity rate for the year, but doing so can cost you if electricity rates decline.

Plus, you have to be careful of the fine print when signing up for a fixed-rate electricity contract. Some may have early termination fees, monthly recurring charges, and promotional rates that spike once the initial period expires.

3. Auto and homeowners insurance

Who doesn't love the convenience of auto-renewal for auto and homeowners insurance? It's one less thing to worry about, and doesn't loyalty always pay? It turns out it's better to shop around each year to ensure you're getting the best rates.

How much can you actually save? According to a LendingTree survey, drivers reported saving at least $100 per year simply by switching auto insurance providers.

Use the Bankrate tool below to connect with auto insurance providers and compare quotes:

4. Home warranty contracts

Home warranty contracts are supposed to protect you from expensive repairs. For a fixed annual fee, you won't have to worry if the furnace dies, a pipe bursts or the AC is on the fritz. Often, you get high service call fees, strict restrictions on what is covered and exclusions hidden deep in the fine print.

Instead of locking up money in a warranty contract that will require you to pay out of pocket anyway, put it in a high-yield savings account where your cash earns interest until it's needed for a repair.

Keep control of your retirement

Cash is king; it couldn't be truer in retirement, which is why patience pays off when it comes to some everyday expenses.

By shopping around annually and keeping your cash accessible in high-yield savings, you'll ensure your money stays liquid and under your control.

Use the Bankrate tool below to search for today's top high-yield savings account offers:

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You've only been shopping for an hour, but as you walk up to your car in the parking lot, you're shocked to find damage to its bumper and scrapes along one side.

Someone has clearly hit your car in the parking lot, and then they drove away without leaving any contact information.

What should you do? And what insurance coverage applies if your parked car is damaged in a hit-and-run? Taking the right steps can improve your chances of finding the driver and help you navigate the insurance claims process.

What to do immediately after discovering the damage

It's important to carefully document the damage at the scene, so don't move your car. Photograph the damage and the surrounding area in the parking lot. Look for any debris or paint transfer that might help identify the vehicle that hit your car.

Check for witnesses who may have seen what happened. Many businesses have surveillance cameras in parking lots, so check with nearby businesses to see if they have cameras that might have caught the incident.

Contact the police and file an accident report to document what happened. Many insurance companies require a copy of the police report before they'll process your claim. Ask the responding officer for their name and badge number, and find out how you can obtain a copy of the report.

Should you file an insurance claim?

If you're able to identify the driver who hit your car, their liability insurance is generally responsible for paying for your vehicle's repairs. But if you can't identify the driver, the situation becomes more complicated.

Many insurers treat this type of incident as a hit-and-run. Depending on your policy, your own insurance may help cover the repair costs.

Before filing a claim, compare the estimated repair costs with your deductible. It's also worth considering that filing a claim could lead to higher insurance premiums, depending on your insurer, state and claims history.

In some cases, paying for the repairs out of pocket may make more financial sense. For example, if your deductible is $1,000 and the repairs are estimated at $1,100, filing a claim would save you only $100 before factoring in the potential impact on your premiums.

On the other hand, if your deductible is $1,000 and the damage is estimated to cost $3,000 to repair, filing a claim could substantially reduce your out-of-pocket costs.

What insurance covers a parked car hit-and-run?

Only certain types of auto insurance can help cover damage if your parked car is hit in a hit-and-run.

Collision coverage typically pays to repair your vehicle after an accident, regardless of who caused it. If you can't identify the driver who hit your parked car, you may be able to file a claim under your collision coverage, though you'll likely have to pay your deductible.

Uninsured motorist property damage (UMPD) is optional coverage in some states. Depending on where you live and the terms of your policy, it may help pay for repairs if the at-fault driver is uninsured or leaves the scene. However, not every state or insurer covers hit-and-run accidents under UMPD, so it's important to review your policy.

Liability insurance generally won't cover damage to your own vehicle. Instead, it's designed to pay for injuries or property damage you cause to others if you're at fault in an accident.

If you're concerned about the financial impact of a parking lot hit-and-run, review your policy to see whether you have collision coverage or other protections that would help pay for repairs. It's a good idea to shop around for insurance and make sure you've got the right coverage at the right price.

Use the Bankrate tool below to gather quotes and compare coverage:

Will filing a claim raise your insurance premiums?

In some cases, filing a claim after a hit-and-run parking lot accident may raise your insurance premiums. The decision depends on your insurer, state and claims history. Some insurance companies will increase your insurance premiums any time you file a claim, even if you weren't at fault.

Rate increases may be more significant if you've filed a certain number of claims within a particular period, and you might feel the effect of those rate increases for years.

Since policies vary between different insurance companies, it's a good idea to ask your insurer about their policy before you proceed with a claim.

Can security cameras help identify the driver?

Identifying the driver may help you avoid filing a claim against your own insurance coverage, saving you money on repair costs and potential insurance premium hikes. Security cameras may help you identify the driver after a car accident, so check with the store you were in to see if they have surveillance footage.

If you plan to collect security camera footage, it’s important to act quickly. Home security systems often delete footage within seven to 30 days, while commercial systems tend to maintain footage for 30 to 90 days.

Be proactive and ask for footage promptly to avoid any chance of it being deleted.

What if someone left a note?

If the driver leaves a note, it may include their contact and insurance information. You can contact their insurance company to verify the policy and begin the claims process.

You can also notify your own insurance company and provide the other driver's information. Your insurer can work directly with the at-fault driver's insurance company to seek payment for your vehicle's repairs.

How to reduce the chances of future parking lot damage

How and where you park may reduce the chance of your vehicle being damaged in a parking lot. Make sure your vehicle is always fully within the painted lines and try to avoid parking in the high-traffic areas that are closest to the store.

If you have a vehicle with large side mirrors, fold the mirrors in when you park to help prevent collisions. You can reduce the chance of someone hitting your vehicle by parking next to a curb or cart return so there's only room for one vehicle to park directly next to you. When parking at night, choose a well-lit area of the parking lot to ensure your vehicle is easily visible.

You may also want to invest in a dash cam with a parking mode for your vehicle. These cameras automatically start recording if they detect motion or impact to your vehicle, hopefully capturing footage of the other vehicle that damages your car.

No one expects to return to a damaged car, but knowing what to do can make the situation easier to navigate. Reviewing your auto insurance coverage, parking strategically and understanding the claims process can help you protect both your finances and your vehicle.

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For older adults who need supervised care throughout the day, an adult day center can offer some much-needed support. These nonresidential facilities provide services such as medical assistance, social interaction and organized activities for participants, who typically have some physical or cognitive impairment. And their adult child, spouse or other caregiver can use the time to work or take a break from their caregiving responsibilities.

Generally, there are three types of adult day centers. Social day centers primarily offer opportunities for attendees to interact with one another and participate in group activities. A medical day center also provides health-focused services, such as physical or occupational therapy. Specialized centers include services such as memory care or therapeutic exercises for those with certain health conditions, such as dementia or Parkinson's disease.

To find local day centers, Tia Sauceda, executive director of the National Adult Day Services Association, suggests using NADSA's tool or this AARP-sponsored directory (click on "Community Services"). Or ask your loved one's doctor for recommendations. Once you've narrowed down a list of centers to consider, contact your state's department of aging to verify that they are licensed, and visit them in person, says William Zagorski, president of American Senior Care Centers, in Nashville. Day centers typically require a doctor's letter detailing the attendee's health condition.

Financial assistance and tax breaks

According to a 2025 study from CareScout, a site families can use to search for care providers, adult day centers charge a median daily rate of $95. Some centers have additional fees for certain services, such as a certified nursing assistant providing showers, says Sauceda.

While original Medicare generally doesn't pay for care at an adult day center, some Medicare Advantage (Part C) private insurance plans cover the expense. Medicaid, the government-provided health insurance for low-income Americans, may also cover day center care.

A specialized Medicare/Medicaid program that provides coverage for adult day center services is the Program of All-Inclusive Care for the Elderly (PACE). It aims to help older adults who need a nursing home level of care to continue living in their homes and is offered in 33 states (see the list here) and Washington, D.C.

A couple of other possible avenues for financial assistance: If your loved one has a long-term-care insurance policy, see whether care from an adult day center is included. Military veterans enrolled in the Veterans Affairs Medical Benefits Package who need clinical care are eligible for coverage at an adult day center.

Don't overlook tax breaks you may qualify for as a caregiver. If your loved one is unable to care for himself or herself and lives with you at least six months of the year, and you pay for them to attend a day center while you work or seek employment, you may be able to claim the child and dependent care tax credit.

If your employer offers a dependent care flexible savings account, through which you can set aside pretax dollars to pay for a dependent's care while you work, you may use those funds for day center care. (Note that you can't use the same expenses your FSA reimburses to claim the child and dependent care tax credit.)

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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As someone who reviews savings accounts and inflation for a living, it's become easier to see where things are heading. Understanding how these trends move can be the difference between keeping your money in the right account and missing opportunities to maximize growth.

Case in point, inflation remains stubbornly high, and ongoing tensions in the Middle East could keep pressure on energy prices. David Payne of the Kiplinger Letter projects inflation will be around 4.0% to end the year. If higher inflation persists, it could eventually force the Federal Reserve to hike rates. For now, though, the Fed left its benchmark interest rate unchanged at 3.5% to 3.75%, signaling that policymakers are still waiting for clearer evidence that inflation is moving back toward its 2% target. For savers, the Fed's decision means today's high-yield savings accounts and CDs remain attractive options, though the next move will depend on how inflation evolves.

Navigating these shifts is the difference between letting your money stagnate and putting it to work. If you have $10k sitting on the sidelines, here are the smartest places to park it — and the traps you need to avoid.

The smartest places to park your cash in the interim

First, if you're building an emergency fund or have short-term savings goals that require liquidity, a high-yield savings account will be the best option. And when you're looking for one, I recommend finding an account earning at least 4.00% APY, since that's likely where inflation will remain for the foreseeable future.

Based on my research, this savings account is a home run option:

Meanwhile, if you have an emergency fund and don't require any liquidity, I would recommend a short-term CD. Look for options between three and six months, since if a rate hike happens, it will likely be in the fall or winter.

If it does, it puts you in prime position to capitalize on even higher rates when your CD matures. Use this Bankrate tool to compare and find the best solution for your money:

Another positive about this approach is that if the Fed doesn't hike rates and inflation remains high, you have flexibility to decide where to hedge your cash in the near future.

Whether that's renewing your existing CD or putting money in the market, you won't have to worry about your future purchasing power eroding due to inflation.

These are the savings accounts I would cautiously consider

Long-term CDs are cozy solutions. After all, once you open one, you're guaranteed to earn that APY no matter what happens. If you're approaching retirement and are concerned about market volatility, it can be a smart approach.

Here are some of the top options I found to help you:

One thing to remember is that the longer your money sits in a CD, the more susceptible it could be to losing future purchasing power if inflation continues to rise. So these options work best for savers with an emergency fund, short-term savings and retirement goals all either fully funded or on course to be.

Avoid this savings trap

The only savings accounts I don't recommend using right now are those at brick-and-mortar banks, where your APYs will be much lower than the current inflation rate of 3.50%. This means every dollar you have in one of these accounts loses purchasing power every month you keep it there.

That said, some local banks do offer higher returns on money market accounts or CDs if you deposit enough money into them, usually between $10,000 and $25,000. So, if you're in a position where you don't feel comfortable moving away from your local bank, ask about any savings incentives they have that can help you.

Ultimately, managing your cash effectively requires a strategic approach. Take a moment to audit your current accounts against the 3.50% inflation rate.

By prioritizing high-yield options that keep your money working for you, you can strike a balance between liquidity for immediate needs and growth to hit your long-term targets. You'll also protect your purchasing power and make the most of your $10k savings.

The right savings strategy is a strong starting point, but a financial professional can help you build on that foundation with a personalized plan for your long-term goals.

Use the tool below to connect with a financial advisor and get started today:

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Google has updated its cloud storage policy for Android device backups. For existing users, the change will take effect 45 days after they receive Google's notification email. Android device backups will count toward the 15 GB of free storage included with every Google Account. The company is also rolling out more detailed backup controls for devices running Android 9 and newer.

For many users, the impact may be small because photos, videos and other media files already count toward the same 15 GB storage limit. However, adding device backups could push some accounts closer to — or over — that cap.

If your account exceeds the free storage limit, your Android device will stop automatically updating its backups until you free up space or upgrade your storage. Checking how much storage you currently use can help you avoid interruptions once the policy takes effect.

Who will notice the biggest impact?

Users who are already close to Google's 15 GB free storage limit are likely to notice the biggest impact. If their account exceeds the storage limit, automatic backups will be paused.

People with years of Gmail, Google Photos and Drive files might also exceed the Google Storage cap when their device backup data counts toward the limit.

People who use multiple Android devices, such as a phone and tablet, may also see their storage fill more quickly. Every device under the same account syncs to the same storage space, so adding in backup data for multiple devices might push the account past the storage limit.

How to check your available Google storage

Google has started emailing Android users with details about the policy change, including how much Google storage they've already used and an estimate of how much space their device backup may require. You can also check your storage usage at any time.

To see how much storage you have available, sign in to your Google One account. Your dashboard shows how much of your 15 GB of free storage you've used and breaks down what's consuming that space.

Gmail, Google Drive and Google Photos all count toward your storage limit. Reviewing the breakdown can help you identify opportunities to free up space before the new backup policy takes effect.

What happens if you run out of storage?

If the new backup policy pushes your account over the storage limit, some Google services may stop working until you free up space or upgrade your storage plan.

Your Android device's automatic backups may be paused, Gmail may stop receiving new emails, Google Drive uploads could fail and Google Photos may stop syncing new photos and videos.

Five ways to avoid paying for more storage

While you can pay to increase your Google storage, there are workarounds that can help keep your storage functioning without you having to pay:

• Delete unnecessary files from Google Drive: Large Google Drive files can quickly eat into your storage capacity. Go through your Google Drive account and delete any unnecessary files. Deleted files are stored in your Trash folder for 30 days, so be sure to go to the Trash folder and permanently delete the files to free up the storage.
• Remove large email attachments: Large Gmail attachments can take up extra storage. The Google One Storage Manager allows you to identify and delete the largest email attachments.
• Clean up Google Photos: Go through your Google Photos and delete any photos you no longer need. The deleted images will sit in your Trash folder, so be sure to delete them from the Trash folder to free up storage.
• Review what your phone backs up: Use the Google One app or your Android phone's backup settings to review what's backed up. If certain apps take up a lot of storage, you can toggle those apps off so they aren't backed up.
• Delete old device backups you no longer need: You can use the Google One app to delete old device backups that you no longer need to free up more space.

When paying for Google One makes sense

While there are several ways to free up storage and avoid paying for additional space, upgrading to a Google One plan may be worthwhile in some situations.

Google One offers four paid storage tiers ranging from 100 GB to 2 TB. Plans cost $1.99 to $9.99 per month, and you can save about 16% by paying annually instead of monthly.

A paid plan may make sense for households with multiple Android devices sharing the same Google Account or for people who rely heavily on Google Photos and regularly store large files in Google Drive.

It can also be worthwhile if you'd rather not constantly manage your files to stay under the free 15 GB storage limit. Some Google One plans include additional perks, such as access to the Gemini app and Google Flow AI, making an upgrade worthwhile for users who want those premium features.

Preparing for the Google Storage changes

Google has started emailing Android users about the upcoming storage policy change. Once you receive the email, you'll have 45 days before the new policy takes effect for your account, giving you time to review your storage usage, free up space if needed and prepare your device.

Taking the time to review your storage usage now can help ensure a smooth transition and uninterrupted use of your device once the storage policy change takes effect.

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The original Financial Independence, Retire Early (FIRE) movement paved a path to early retirement through aggressive saving and extreme frugality. Today, many people view FIRE as a way to gain financial independence and flexibility, rather than retiring as early as possible.

Many early FIRE advocates aimed to save 50% to 75% of their income, working toward a goal of accumulating about 25 times their annual expenses before retiring.

But in today's world of high housing prices, inflation and healthcare costs, the FIRE movement might feel impossible. While some individuals may have found financial independence through the FIRE movement, there's a shift in the movement and in how people approach financial independence.

Why the FIRE movement is changing

The FIRE movement was popularized in the 1990s, but today's economy is vastly different, and the conversation has shifted from early retirement to financial flexibility.

Take the housing market, for example. According to the National Association of REALTORS, the median existing-home sales price was $114,600 in 1995. By 2023, the median price had climbed to $389,800. Simply buying a home now requires more of your paycheck, making it much harder to save 75% of your income under a traditional FIRE strategy.

Inflation has created additional financial strain, and tariffs and geopolitical tensions have contributed to higher costs for some goods. Healthcare costs have also skyrocketed. According to the Peterson-KFF Health System Tracker, which uses Centers for Medicare and Medicaid Services data, in 1990, annual per-person health spending averaged $2,835 in 1990, or $5,864 when adjusted for inflation. By 2024, per-person annual spending averaged $15,474.

In short, Americans have less left in their paychecks after paying for essentials like housing, food and healthcare. In many cases, consumers are increasingly prioritizing financial stability rather than planning for an early retirement.

Coast FIRE vs. traditional FIRE

Several variations of the FIRE movement exist. The traditional FIRE strategy focuses on building a large portfolio that can fully fund your retirement early, requiring you to save aggressively and potentially change your lifestyle to reflect your early retirement goals.

The Coast FIRE strategy takes a more moderate approach to save enough money early, so your investment portfolio can compound and support your retirement. Once you've amassed enough savings, you might continue to work to cover your living expenses, but early retirement isn't usually the goal. Since you won't be withdrawing from your investment portfolio early, the Coast FIRE strategy may be a more conservative option because it doesn't rely on withdrawing from investments decades before traditional retirement.

If you choose to pursue the Barista FIRE strategy, you'll work to build your savings and ultimately quit your traditional job. From there, you'll combine part-time work with your savings. Many people pursuing Barista FIRE choose to reduce their expenses so part-time income is enough to cover their living costs. Given the availability of freelance and gig work, this strategy may be a solid option for some, but you'll need to consider the limitations and expenses of securing health insurance without full-time employment.

How much money do you need to make work optional?

The amount of money that you'll need to make work optional will depend on everything from your lifestyle to your location and age.

Many individuals use the rule of 25 to determine how much they’ll need in investments to be able to retire. A commonly cited guideline suggests accumulating investments equal to about 25 times your annual expenses. The guideline is based on the widely known 4% rule, which suggests a retiree may be able to withdraw about 4% of a diversified portfolio annually, though there's no guarantee it will work in every market or retirement scenario.

Following the rule of 25, if you make $100,000 a year, you would need approximately $2,500,000 in investments to make working optional. In that situation, the guideline would suggest an initial annual withdrawal of about $100,000.

Emergency savings and retirement assets play a role, too. It's advisable to have at least three to six months of your living expenses in emergency savings. Your retirement assets may play a role, too. In addition to building up 401(k)s and Roth IRAs, consider how other assets, like Health Savings Accounts and rental properties, might support you financially once you no longer work.

Identifying the right balance of assets and the ideal amount of money you need to retire can be tricky, so consider consulting with a financial advisor.

Use the Bankrate tool below to connect with a financial professional who can help you tailor a strategy to reach your retirement goals:

Why many people keep working after reaching financial independence

Becoming financially independent and having the option to retire may sound appealing, but many financially independent individuals choose to continue working.

That's because some individuals enjoy their careers and find their work fulfilling. Some want the social engagement that comes with a career, while others may prefer having the additional income that they're able to generate.

Even if you choose to continue working, having the option to retire on your own terms can be a reassuring milestone.

Is financial independence realistic for average earners?

While reaching financial independence may take longer for average earners, many people can make meaningful progress through consistent saving, investing and keeping expenses under control.

To achieve financial independence, you may need to start early on in your career, and you'll need to be willing to live modestly. Focus on making consistent contributions to your retirement accounts and accumulating emergency savings in a high-yield savings account where your money can earn maximum interest.

Taking steps to increase your income will also help. Look for promotions and overtime opportunities, and consider taking on a side hustle where you can put your skills to work to earn extra money.

Perhaps most importantly, make a budget and stick to it. Your budget may help you identify ways you can cut spending and save money. By consistently living below your means, you can put your money to work for you and lay the pathway toward financial independence.

Financial independence can mean more than retirement

Becoming financially independent doesn't necessarily mean you'll retire early. Instead, it gives you the freedom to decide if, when and how you want to work. Rather than focusing on reaching a specific retirement age, financial independence offers greater flexibility, security and peace of mind — benefits that can be just as motivating as the prospect of early retirement.

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If you have a travel-focused credit card that offers points on your spending, you can usually redeem them for flights and hotel rooms by visiting the issuer’s booking platform or getting statement credits for travel purchases.

And some cards offer another way to use your points: Transferring them to airline and hotel loyalty programs. The key is knowing conversion ratios, as this can help you maximize the value of the points you're transferring to a participating partner.

Here's a look at the credit card companies that offer points transfer, some of the participating partners they work with and how you can maximize your points value for elevated travel.

Transferring points: What are my options?

American Express allows customers who collect Membership Rewards points with its cards to convert them to 20 loyalty programs, including Delta SkyMiles, Hilton Honors and Marriott Bonvoy.

Those who use the Chase Sapphire Preferred and Chase Sapphire Reserve cards can transfer their Ultimate Rewards points to 14 partners, such as Southwest Rapid Rewards, United MileagePlus and Marriott Bonvoy.

Eligible Citi cardholders can transfer their ThankYou points to about 20 programs, including American Airlines AAdvantage and Choice Privileges.

Capital One’s credit card miles are transferable to more than 15 partners; among them are JetBlue TrueBlue and Wyndham Rewards.

How to maximize your transfer value

Especially for premium airline tickets or luxury hotel stays, you may get the best value out of your rewards by making a transfer and redeeming the miles or points through the airline or hotel loyalty program.

But as you compare the options, factor in the transfer conversion rate. Some transfers take place at a 1:1 ratio, meaning 1,000 credit card points translate to 1,000 points with the loyalty program. In other cases, the ratio may differ. A transfer of 1,000 credit card points may result in 800 airline miles with some programs, for instance.

"Keep in mind that these transfers are irreversible," says Nick Ewen, editor-in-chief at travel website The Points Guy. He advises using transferred points as soon as possible. If you delay, you may miss out on any award bookings you were planning to make. And over time, loyalty programs may devalue their points or miles.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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