A pattern shows up often enough in my practice that I've stopped being surprised by it.

Someone in their mid-50s comes in for a routine check-in. Their mortgage is paid off. The kids whose 20-year term life policy was meant to protect are mostly grown. That policy did its job well.

But somewhere in the conversation, it comes out that an aging parent has just moved in or started needing help that wasn't part of anyone's plan two decades ago, right around the time the original coverage is scheduled to end.

September is Life Insurance Awareness Month, which makes this a good moment to look at a timing problem that comes up more than people expect. This isn't a rare coincidence.

According to Northwestern Mutual's Planning & Progress Study, roughly one in five Americans is caring for a family member, and many are making financial trade-offs to do it: Cutting spending, pulling from savings or taking on debt.

That's the backdrop many are managing when a term policy expires in the same decade.

What makes these situations challenging is not necessarily the policy itself. It is that people may be trying to address today's responsibilities with a financial plan built for a very different season of life.

How age and health affect the cost of new coverage

Here's what I explain to people in that situation: Term life insurance is generally relatively inexpensive because it's temporary, and the premium you paid years ago reflected your age and health at that time.

When that policy ends and you look for new coverage at 55 instead of 35, an insurer isn't underwriting the same person. Medical history and health markers may have changed over that period, even for people who feel healthy.

What that means in practice: Replacement coverage at this stage may cost more for the same death benefit, and health changes can sometimes limit what you're able to qualify for.

I don't tell people that buying term coverage in their 30s was a mistake. If they had a young family and a time-limited need, like a mortgage or a child's dependent years, term insurance was likely the most cost-effective way to secure meaningful coverage, and for many it still is. The issue is making sure the plan keeps pace as responsibilities change.

Three ways to approach an expiring policy

If your term policy is nearing its end date, there are three paths to consider. The right one depends on your health, budget and what you're trying to protect against.

Convert what you have. Some term policies include a conversion option that may allow you to convert some or all the coverage to a permanent policy, subject to policy terms, without new medical underwriting.

This may be a valuable option for anyone whose health has changed, but conversion windows are typically limited to a specific age, so check before your policy expires.

Add smaller coverage on top. Instead of replacing your full death benefit, you may need only a death benefit to help cover a narrower, current gap, like a parent's care needs or a remaining few years of a child's dependency on your income.

Start over with today's numbers. The coverage amount that made sense at 35, based on income replacement, a mortgage and young children, may have little to do with what you need to protect now. Recalculating based on your current obligations often produces a more accurate target.

This kind of planning matters even more for those also thinking about what they'll eventually leave behind. A historic $124 trillion intergenerational Great Wealth Transfer is already underway between generations in the U.S., and those revisiting an expiring term policy are often also due for a broader look at their estate plan.

Don't skip the estate planning conversation

An expiring policy is a natural prompt to check something many haven't looked at in years: Their beneficiary designations.

I ask clients to review whether their beneficiary designations still align with their estate plan and whether they should consult tax or legal professionals about potential unintended consequences.

A former spouse listed as beneficiary, a minor child who'd receive a lump sum before they're ready to manage it or an estate named as beneficiary by default can all create complications that a trust, staggered distribution or other planning tool may help address.

Some permanent life insurance policies can build cash value over time. For some households, its death benefit can help address estate planning needs, which may include estate taxes, equalizing inheritances among heirs or charitable giving.

For those whose estate plan hasn't been reviewed since the term policy was purchased, an expiring policy is as good a reason as any to have both conversations at once.

For wealthier individuals, the expiring policy itself is often less the point than what it was quietly standing in for. Coverage tied to a business loan, buy-sell agreement or key-person planning can also expire or lapse, and often carries higher stakes.

It's also common for these clients to have postponed other estate planning decisions, such as gifting assets into a trust or updating succession plans. An expiring policy is a reasonable prompt to finally have that conversation.

What to do before the policy lapses

If any part of this sounds like your household, a few steps are worth taking now, while you still have options:

Pull your policy documents and check whether it includes a conversion option and by what date it needs to be exercised

Take an honest inventory of who currently depends on your income, rather than the picture from 20 years ago

Check your beneficiary designations against your current estate plan, not the one you had 20 years ago

Talk to a financial adviser before your term expires, not after a lapse notice arrives — options narrow once the policy has ended

In my experience, the clients most exposed to this timing mismatch usually aren't the ones who think of themselves as underinsured. They may have purchased exactly the right coverage for the season of life they were in.

The challenge is that life rarely stands still. Careers change. Families change. Businesses grow. Parents age. Responsibilities shift.

The good news is that many of these situations can be addressed when they are identified early. The goal is not to perfectly predict every change life may bring. It's to revisit your plan often enough that it can evolve alongside the people and priorities that matter most.

Sometimes an expiring policy is simply the reminder that it's time to make sure your financial plan has changed along with your life.

Article prepared by Northwestern Mutual with the cooperation of Gina Cimineri. To view detailed disclosures regarding individual representatives, view their information at taketwofinancial.nm.com.

This article is not intended as legal or tax advice. Financial Representatives do not render tax advice. Consult with a tax or legal professional for advice specific to your situation.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Welcome to Kiplinger's My First $1 Million series, in which we hear from people who have made $1 million. They're sharing how they did it and what they're doing with it.

This time, we hear from a married 38-year-old program analyst with the Department of Defense who lives in California. She reports a salary of $145,000.

See our earlier profiles, including a writer in New England, a literacy interventionist in Colorado, a semiretired entrepreneur in Nashville and an events industry CEO in Northern New Jersey. (See all of the profiles here.)

Each profile features one person or couple, who will always be completely anonymous to readers, answering questions to help our readers learn from their experience.

These features are intended to provide a window into how different people build their savings — they're not intended to provide financial advice.

To learn what these millionaires have taught us, check out the articles 5 Key Insights We Learned From 50 Millionaires and 5 Things 50 Millionaires Wish They'd Known Before They Retired.

And to hear more about My First $1 Million, you can check out this podcast with bestselling author and tax attorney Toby Mathis:

The Basics

How did you make your first $1 million?

Over the last 15 years, through saving in our TSPs (Thrift Savings Plans) — we have a combined balance of just over $1 million.

We started out with contributing just enough to get the match, not really understanding much about investing.

Thankfully, my husband's family provided advice along the way on how they have been successful, and that led me to start doing my own research. Over the course of a couple of years, we upped our contributions, and in 2019, we basically went all in and maxed out both TSPs to the IRS limits.

This was challenging, as we were both still considered developmental employees (not at our full performance/pay scale) level and had two young children with all the associated bills.

But we made it a priority and cut back in other areas to make it happen.

What are you doing with the money?

It's all invested in our TSPs — 100% stock allocation between large cap, small cap and a bit of international.

As we get nearer to our full retirement ages, we'll reduce stocks and add in the safer funds.

The Fun Stuff

Did you do anything to celebrate?

Nothing specific. I stared at the spreadsheet for a while almost in disbelief.

What is the best part of making $1 million?

The sense of freedom and security. Being able to let off the gas and use more of our income on making memories with my family, especially now that my kids are teenagers and have a limited amount of time left in the house before they move out.

Did your life change?

Maybe a little bit. We're really enjoying the trips and experiences with our kids now and not worrying so much about the spending money part of that.

Does anyone know you're a millionaire?

No, I don't want to feel like I'm bragging. I've mentioned that we've been able to back off on retirement contributions because we're doing well and hit our numbers. But nothing more specific than that.

Any plans to retire early?

I'm planning on retiring at 57, which is my full retirement age. But if I have the opportunity to retire earlier, I will take it.

Looking Back

Anything you would do differently?

I would have split some of the contributions into our taxable brokerage account so that we have more flexibility. While I'm super proud of what we've accomplished, the overwhelming majority of our net worth is tied up in retirement accounts and not accessible.

After everything that happened last year in the federal sector, it highlighted the need for options.

Going forward, we cut back retirement contributions to only what's needed for the match and are redirecting the rest to emergency savings and then what I'm calling our "flexibility fund" in our taxable brokerage account.

What advice would you give to your younger self?

Be patient. You're on the right track. I have a hard time waiting once I have a goal in mind. Hence why we went all in on contributions and sacrificing in other areas.

Did you read any books that helped you on your journey?

I Will Teach You to Be Rich (by Ramit Sethi). Also, lots of personal finance articles and lots of podcasts.

Did you work with a financial adviser?

No. We're fortunate to have family that helped point us in the right direction.

Did anyone help you early on?

My husband's grandma and uncle. They shared their experience and helped us understand what allocations would set us up for long-term growth.

Looking Ahead

Plans for your next $1 million?

Continue to let the market work for us and add more into non-retirement accounts.

Any advice for others trying to make their first $1 million?

Not to be a broken record, but starting as early as possible and letting the power of compound growth work are all you need.

Even if you're not making much, contribute what you can and up it whenever you get a raise.

I see a lot of my peers who upgraded their lifestyles with each raise instead of thinking about their futures and are now starting to worry.

Do you have an estate plan?

Not yet. It's on list of things we need to do for sure.

What do you wish you'd known …

When you first started saving? Invest in stocks. I had all my contributions going into the G Fund at first, not really earning anything.

When you first started investing? Run your numbers. You may not need to save as much as you thought. We went all in and definitely made sacrifices to be able to do that.

If you have made $1 million or more and would like to be anonymously featured in a future My First $1 Million profile, please fill out and submit this Google Form or send an email to MyFirstMillion@futurenet.com to receive the questions. We welcome all stories that add up to $1 million or more in your accounts, although we will use discretion in which stories we choose to publish, to ensure we share a diversity of experiences. We also might want to verify that you really do have $1 million. Your answers may be edited for clarity.

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Buying a car — always a costly endeavor — has become even more expensive recently, thanks to a surge in vehicle prices since the pandemic and spiraling auto-loan rates.

The average balance for a new auto loan hit nearly $34,000 by the end of 2025, about $10,000 higher than in 2018, according to a recent report from The Century Foundation. Meanwhile, Experian data shows that the recent average interest rate of 6.39% on new-car loans is 57% higher than rates were in 2022.

Fueling the increases: New-vehicle prices now average close to $50,000, thanks to tariffs, lingering supply-chain challenges and higher manufacturing costs. Loftier new-car prices, in turn, have pushed up demand and prices for used cars as well, with the average price of a three-year-old used car recently at $31,500.

"There's a whole mix of factors that have been driving the price of cars higher, which makes it really hard for anyone who needs to buy a new car," says NerdWallet personal finance expert Kimberly Palmer.

In the market for new wheels? These tactics can help keep costs on track.

1. Stay in your (budget) lane.

Save time and narrow your vehicle choices by setting your budget up front — and sticking to it. Aim to keep your car payments under 10% of your monthly income and your total car costs (including insurance, gas and maintenance) under 20%, says Matt Schulz, chief consumer finance analyst at LendingTree.

2. Shift your timing.

The end of the month (and often the end of the quarter or the year) may offer your best opportunity to snag a discount. That's when dealers, closing in on their quotas, are most motivated to cut prices to make a sale. If you can wait until the end of the calendar year, you may see even better offers on 2026 vehicles as dealers look to make room for next year's models.

3. Don't let monthly payments steer your decision.

Auto expert Lauren Fix, founder of Car Coach Reports, recommends avoiding financing terms that exceed the terms of a car's warranty — typically three to five years. Yet nearly seven in 10 new-car buyers now finance their vehicle for more than five years, Experian reports. While a longer term will lower your monthly payments, the extra interest you'll pay over the life of the loan can dramatically increase the total cost of the car.

"If the number doesn't work for you, don't try to jam a square peg into a round hole," Fix says. "Find another car. Look at a different trim level or a smaller vehicle."

4. Map out alternate routes.

Although used cars still generally cost less than new models, the gap between them has narrowed. Prices for three-year-old used cars are at a near-record $31,500, and loans for used cars typically have higher interest rates. So run the numbers using an online auto-loan calculator. You can find one at sites such as Bankrate and Cars.com.

5. Cruise in with outside financing.

Compare loans from at least three banks and credit unions, and get preapproved before visiting the dealership. "If the dealer can beat your bank, great. Let them," says Sean Tucker, a managing editor with Kelley Blue Book. "Just don't put yourself in a position where you're dependent on the dealer's offer."

Some dealers may run low-rate promotional financing, typically for borrowers with a high credit score. But these offers are less common than they were before the pandemic.

6. Drive a hard bargain.

Most dealers now have an internet sales department that will give you a price quote before you set foot on the lot. Collect at least three of these quotes, which you can use to push down the price during negotiations, Palmer says.

Map out your finances before buying a car

A car is a major purchase, and the right price and financing strategy will depend on how it fits into your broader budget and financial goals. A financial adviser can help you weigh the cost of a new vehicle against other priorities, from paying down debt to saving for retirement.

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

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 like 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.

That's because 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 simply 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. After all, 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, may have surprisingly little left over 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 may depend on the type of debt, interest rate, access to an employer retirement match, emergency savings and other factors. Pay attention to whether debt is helping you accomplish a larger financial goal or simply 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 those old 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 $1 million net worth 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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With the official start of fall just a few weeks away, many homeowners are ready for the heat to let up and the electricity bills to go down. This is the ideal time to take a walk around the outside of your house and check for any lasting damage the relentless heat of summer might have caused this year.

While you may already be familiar with the risks of winter damage, like frozen pipes and leaky roofs, summer can also do a number on your home – and often the damage isn't immediately obvious unless you know what you're looking for.

If you haven't done an inspection since winter ended, now is a great time to check for these five signs of heat damage around the home and learn how to address them and which ones home insurance might cover.

1. Cracks in your foundation from subsidence

In some states, like Texas and Missouri, the threat heat poses to a home's foundation is already fairly well known. But in states that are still getting used to blistering hot summers, you might not even think to check for (or prevent) subsidence around your home.

Primarily a threat in clay-heavy soils, subsidence happens when soil expands with moisture during wetter or cooler months and then contracts during hot, dry weather. Over time, that cycle of expansion and contraction can cause cracks to develop in your foundation.

Foundation damage can show up as cracks around windows and doors as well as on the foundation itself. It might also show up as a window or door not shutting like it used to. In some homes, normal swelling and shrinking of wood from changing humidity can cause windows and doors to stick a bit. But if you notice them being even harder to open and shut than you're used to with the changing season, it could be a sign to get your foundation inspected.

This is important for homeowners to stay on top of because subsidence is usually categorized as "earth movement," which is typically excluded by standard home insurance. However, if you purchase earthquake insurance (which usually includes most common forms of earth movement), you might be able to get this covered.

To prevent this next summer, you may need to set a reminder to water your foundation during hot, dry weather. Typically, homeowners are advised to keep water as far away from their foundation as possible. But if you have heavy clay, you might be one of the exceptions.

Not sure if your soil is the kind that needs watering? Check around your home after a hot, dry spell to look for signs of cracked soil anywhere that you don't regularly water. Pay special attention to the soil along the edge of your home. If you can see areas where the soil has pulled away from your house, that's a sign that it shrinks and swells severely enough to require watering – even if you don't see any cracks in the foundation yet.

2. Siding distortion

Vinyl siding is an affordable and attractive option for upgrading your home. But it's also susceptible to melting (or distorting) in the heat. This is a bigger risk for siding that's facing a neighbor's window or other reflective surface, since this concentrates and targets sunlight on a specific spot for prolonged periods.

As you walk around the house inspecting your foundation and checking for cracks near windows and doors, check the siding while you're at it. Look for any patches that might look a little distorted or warped.

If you see any signs of distortion, the first step is to check the manufacturer's warranty if you happen to know the manufacturer. This kind of damage might be covered by the warranty if your siding is new enough to be under warranty. If not, you'll likely have to cover the repair out of pocket, as home insurance typically only covers siding distortion if it was caused by a covered peril (like a fire).

To prevent this next summer, identify any possible source of reflected sunlight that might have caused the distortion. If it's a neighbor's window, for example, you might be able to put up a temporary screen or plan to plant a hedge between your houses to block the reflected light.

3. Cracked or blistered roof shingles

Once you've finished your walk-around inspection, get up on the roof if you're comfortable doing so. If not, you can hire a pro to do the inspection. Your roof should be inspected twice a year: Once after winter, when the freeze-thaw cycle or heavy snow might have damaged your roof, and once after summer, when extreme heat and fluctuating humidity levels can cause shingles to crack or blister.

In both cases, damage may not be severe enough after a single season to cause leaking or other issues in your roof. But catching and repairing minor damage regularly can prevent more severe problems down the line.

Another reason to make those repairs now while they are still minor: Your home insurance probably won't cover it. As with siding, roof damage is usually only covered if the cause is a covered peril like hail or fire.

To prevent this next summer, you can apply a reflective sealant to shingles that protects your roof by bouncing solar radiation and UV rays back up rather than allowing them to absorb into the shingles. This can also block heat from entering the home, so you might also see lower cooling costs next summer.

4. Mold growth in your basement, bathrooms or other damp spaces

If you have a basement, you probably already know it's prone to dampness. The same is true for any room in your house that has plumbing, like bathrooms, kitchens, and laundry rooms. When you combine already damp spaces with the warmth of summer, you have a recipe for mold.

While at-home mold test kits might seem like the right move, they're not really that helpful. The amount of airborne mold spores can fluctuate dramatically from one hour to the next, so you might get a negative because you tested at a time when the spore count happened to be low. Those that test samples scraped from a surface are limited in use for the same reason. The small patch of wall you sampled might not have mold on it, but the patch two inches to the left might.

Instead, do a thorough visual inspection of the high-risk rooms in your home to look for the orange or black discoloration characteristic of mold growth. If you find visual evidence of mold but it seems minor, you can try cleaning the area with bleach or vinegar thoroughly. But continue monitoring the area periodically to see if the mold comes back. If it does, you might need to bring in professional mold remediators to find and fix the underlying source of the problem.

Whether or not mold remediation will be covered by your home insurance is a tricky issue. If the cause can be traced to a covered peril, like a burst pipe or water heater, you might be able to file a claim. If not, you might be out of luck.

To prevent this next summer, one option is to keep your HVAC system running all season long to keep humidity and temperatures under control. If the risk is only in certain rooms of the house, however, a more cost-effective option might be to get dehumidifiers for just those rooms. According to the EPA, maintaining humidity levels between 30% and 50% will prevent mold growth. As an added bonus, lower humidity also discourages pests like cockroaches and dust mites.

5. Spoiled food and damaged medicine

Even if you run the air conditioner, some parts of your home can end up hotter than others – such as a kitchen cupboard mounted to an exterior wall or a medicine cabinet in a bathroom that has no A/C vent.

Heat aside, summer is also a time when pests and mold spores are more numerous and more likely to find their way into your home.

You may have already started stashing some produce that you'd normally keep on counters in the fridge to prevent spoilage. But things like coffee, spices and vitamin supplements should all get moved somewhere cooler as well.

Now is the time to check for signs of spoilage or stale smells in all of your pantry staples and toss anything that seems suspicious. In your medicine cabinet, look for changes in color, texture or smell in your medicines, supplements and even cosmetics.

To prevent this next summer, make a list now of heat-sensitive items in your home that you'll move to a cooler, drier area. This can be as simple as moving them away from exterior walls and keeping them in a bin in a room that is air conditioned most of the day.

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From Andrew Carnegie to Mackenzie Scott, America has a long and proud tradition of producing great philanthropists who have erected universities and cultural institutions and bestowed generous gifts to causes and communities.

But it's not just centi-millionaires and billionaires who are generous — average Americans are committed to charitable giving, too. According to a survey from the Associated Press-NORC Center for Public Affairs Research, roughly three-quarters of U.S. adults say their households have donated to a charitable cause.

While "'tis better to give than to receive," it does help that the U.S. tax code rewards generosity. Of course, the structure of the gift is important when considering the tax implications of philanthropy.

Heading into the second half of the year, many people begin to think carefully about their year-end giving strategy. Here are four structures to consider.

Direct giving

The simplest, most straightforward way to give to a charitable organization or cause is direct giving. While most people think philanthropy must involve monetary donations, you can also gift appreciated securities, automobiles, recreational vehicles, boats and other personal items, all of which will also qualify for a tax benefit.

Direct gifts of appreciated securities, for example, may allow donors to avoid recognizing capital gains while potentially receiving a charitable deduction for the full fair market value, subject to applicable IRA rules.

Not only is this the most common form of giving, it can also supplement the other structures outlined below.

Donor-advised funds

Donor-advised funds (DAFs), which effectively separate the tax savings from the charitable-planning component, are becoming increasingly popular.

With a DAF, an advisor opens the fund, and the donor immediately receives an eligible charitable income tax deduction. Meanwhile, the fund continues to grow, giving the donor time to decide how to disburse money.

Beyond the planning benefits, DAFs can provide meaningful tax savings. With the standard deduction for married couples (filing jointly) now at $32,200, most Americans will find that it doesn't make sense to itemize their taxes for a standard charitable gift.

But if you can afford to bunch multiple years of charitable donations into one lump sum, it might help you surpass the standard deduction and realize significant tax savings.

This strategy is particularly helpful in a year when a family has an unexpected windfall, such as a large bonus, and it's looking to offset larger tax liabilities. Another perk of setting up a DAF: You can name the fund, which can allow you to preserve anonymity.

DAFs are also great for teaching children about giving back and money management, as families can decide together how to distribute the funds based on shared values.

Charitable trusts

For families gifting larger dollar amounts, charitable trusts can wrap charitable donations in a larger estate planning framework. There are typically two trust structures which clients choose from when creating a charitable trust.

A charitable remainder trust provides income from investments during the donor's lifetime, with the remaining assets ultimately passing to the charity.

Conversely, if a donor wants to leave assets to their children, a charitable lead trust operates in the opposite fashion — the charity receives payments for a specific period before the remaining assets pass to heirs.

Both options allow families to pair their charitable giving with estate planning to support both personal and philanthropic goals.

Foundations

Individual or family foundations provide donors with more control over named charities and benefactors, but this structure also requires a significant commitment, both financially and timewise.

Donors must be prepared to set up and fund the entire organization, including operational oversight and administrative expenses. Often, foundations can become difficult to sustain over time when the administrator steps away, and the foundation begins looking at how to wind down operations, either via a merger or dissolution.

While the idea of a foundation might sound appealing, we typically advise wealthier clients that they can achieve the same goals through either a donor-advised fund or a charitable trust.

Some parents like the idea of creating a foundation to provide a child with a job and an income stream. But if you're simply looking for income, you can achieve the same goals by setting up a charitable remainder trust with the child as the income beneficiary, or as a grantor charitable lead trust, with children or grandchildren eventually inheriting.

Families sometimes view private foundations as a path to involving younger generations in philanthropy. However, donor-advised funds and charitable trusts can often provide similar opportunities with less administrative complexity.

Philanthropy is personal. Whether you give to express your values, honor a loved one or leave a legacy, the smartest philanthropists make it a win-win, structuring their gifts to increase both the effectiveness of their giving and the value of available tax incentives.

Janney Montgomery Scott LLC, its affiliates, and its employees are not in the business of providing tax, regulatory, accounting or legal advice. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax adviser.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Imagine strolling down charming cobblestone streets as the scent of hot-baked pretzels hangs in the air. Children zip past in crisp lederhosen, laughter echoes over the clink of heavy glass steins, and you duck inside a Bavarian-style shop expecting to hear a German greeting.

Instead, a local welcomes you in an American accent.

Each year, millions of Oktoberfest revelers skip the expensive transatlantic flights and long hours of air travel, opting for the authentic spirit of Gemütlichkeit (that cozy, welcoming cheer) right here in the United States.

If that's you, we're taking a look at how state tax policies compare across the country's top festival spots. Rounding up the ten most famous American Oktoberfest destinations, we've ranked them by their state's beer excise tax rate (the festival's official drink, and, hey — we're not complaining).

So pack your dirndls and warm up your polka: Here's where Alpine charm meets beer taxes on a budget.

Top Oktoberfests ranked by beer tax in 2026

To compare state beer taxes across top Oktoberfest spots, we used the 10 American destinations featured in Time Out magazine.

We then ranked them by their mandatory state beer excise tax rates per gallon, using the latest data from the Tax Foundation. The list utilizes a standard 12-ounce pour of a baseline imported 4.7% ABV lager.

Keep in mind that state excise taxes are built into the wholesale price upstream, providing a foundational baseline for beverage costs across each state. Thus, festival prices on the ground are also shaped by factors like local sales taxes, brewery selections, and souvenir packages.

However, this ranking offers a unique look at how state tax policy frames the nation's premier German celebrations — one stein at a time.

10. Helen, Georgia

State beer tax: $0.48

Dates: Sept. 10 - Nov. 1, 2026

As the longest-running Oktoberfest in the U.S., the festival in Helen, Georgia, has the most expensive state beer tax on our list, according to Tax Foundation data. Additionally, admission generally costs $5 to $25 per person per day (though entry to the Festhalle is completely free on Sundays).

But Helen is famously known for its Bavarian charm. Redesigned in the late 1960s to mirror alpine architecture, the festival is backdropped against the Blue Ridge Mountains, delivering picturesque fall foliage views along the Chattahoochee River.

Visitors can watch the festive Oktoberfest Parade on opening weekend, try holding their beer the longest at the annual Stein Holding Competition in October, or sip warm spiced apple ciders and rich wheat beers. Helen also offers a costume party on Halloween night and 12 to 16 rotating traditional bands inside the Festhalle over the nearly two-month-long celebration.

Thus, if you want to feel like you're in Germany this autumn without ever actually leaving the States, you might consider a surprisingly authentic Oktoberfest in America's South.

Want to be a little closer to the action year-round? Check out the 10 Cheapest Places to Live in Georgia.

9. Stowe, Vermont

State beer tax: $0.27

Dates: Sept. 19, 2026

The von Trapp Family Lodge & Resort Oktoberfest ranks ninth on our list, with a state beer tax of $0.27, per the latest Tax Foundation data. Ticket prices for the one-day affair are typically $80 per person and include an official souvenir mug, one beer pour, and a festive appetizer, entree, and dessert.

Musical fans and history buffs will especially appreciate the setting. Hosted by the real-life family that inspired the film "The Sound of Music", the resort brings an Austrian twist to the traditional festival. The event packs a full schedule of vibrant folk music, cask tapping, Steinholding contests, traditional outfit competitions, and — yes — plenty of singing.

Perched high above the town of Stowe, the lodge also has some of the prettiest scenery on our list, with panoramic views of Vermont's fall foliage. And while the festival itself is a single-day event, booking a weekend stay allows you to enjoy on-site brewery tours, crisp Austrian-style lagers, and cozy fireside retreats.

So you might want to check out von Trapp Family Lodge & Resort in Vermont for one of America's most unique Oktoberfests.

8. Leavenworth, Washington

State beer tax: $0.26

Dates: Oct. 2-3, 9-10, and 16-17, 2026

Taking place over three weekends in October, the traditional Oktoberfest of Leavenworth, Washington, ranks eighth on our list, according to the latest data from the Tax Foundation. Single-day tickets range from $20 to $40, with weekend passes costing about $55 per person (and kids 12 and under enter for free).

Framed by the jagged peaks of the Cascade Range, entering Leavenworth might just feel like you're stepping straight into a Bavarian postcard. Music is at the heart of the festival, with three stages featuring live performances from 6 p.m. to close each day.

The annual Festzug grand parade also marches through town every weekend, while stein hoists and costume contests run throughout the day. Plus, whoever rocks the best or funniest mustache wins a prize on Saturdays (so get your hair gel ready).

Those traveling with children will also love the dedicated "kinderplatz" play area chock full of classic carnival games and a 62-foot Ferris wheel.

Ergo, whether you like browsing street fair merchandise or jumping onto the dance floor with European headliners, enjoy Leavenworth this fall.

See also: 10 Cheapest Places to Live in Washington.

7. Frankenmuth, Michigan

State beer tax: $0.20

Dates: Sept. 17-20, 2026

Frankenmuth's Oktoberfest charges a state beer excise tax rate of $0.20, according to the Tax Foundation, and ticket prices are only $10 per person per day, though kids 15 and under are free (and Sunday admission is free as well).

Known as "Michigan's Little Bavaria," Frankenmuth was settled in 1845 and holds the distinction of hosting the very first Oktoberfest officially sanctioned by the City of Munich outside of Germany. For this reason, Germany’s world-renowned Hofbräuhaus München exported its beer to the U.S. and Frankenmuth for the first time in history.

The festival features live music, authentic cuisine, and beloved events like the Wiener Dog Races — where up to 100 dachshunds compete for glory. (And ribbons, trophies, cash, and a free hotel stay…maybe it's time to adopt a pet?)

Dog lovers will also appreciate that the festival is exceptionally pet-friendly, welcoming leashed pups throughout the outdoor grounds. Frankenmuth offers several walkable (and pet-friendly!) hotels downtown, meaning you and your pooch can enjoy Oktoberfest together.

Thus, if you're a fan of Germanic history and want to take your pup along for the ride, stay for select hotel access in Frankenmuth, Michigan.

6. Fredericksburg, Texas

State beer tax: $0.19

Dates: Oct. 2-4, 2026

Walk under a big tent and experience Fredericksburg, Texas Oktoberfest with remarkably low beer taxes — at just $0.19, according to the Tax Foundation. Ticket prices usually range from $1 to $20 (depending on your age and the day you go), and you can add an extra $10 for daily shuttle passes that run between Marktplatz, local parking, downtown shopping, and nearby county fairgrounds.

Rooted in 19th-century German immigrant heritage, Fredericksburg serves up genuine schnitzel and cold Hofbräu on tap alongside Texas Hill Country classics like spiced wines and warm mulled cider.

You might start your festival with the Saturday morning chicken dance, which is perfect for little ones who want to meet costumed feathered friends on the dance floor. Or, if you're feeling particularly energetic for the autumn air, sign up to walk or run the annual Oktoberfest Kraut Run (benefiting local youth and literacy programs).

With easy shuttles, endless steins, and plenty of Texas hospitality, Fredericksburg may be well worth the trip.

Looking to live nearby? Check out the 10 Cheapest Places to Live in Texas.

5. Cincinnati, Ohio

State beer tax: $0.18

Dates: Sept. 17-20, 2026

Celebrating its 50th anniversary this year is Oktoberfest "Zinzinnati" in Cincinnati, Ohio. With state beer taxes as low as $0.18, per the Tax Foundation, you might not break the bank celebrating here — after all, admission is free.

As America's largest Oktoberfest, this riverfront celebration welcomes nearly one million guests with colorful spectacles like the "World's Largest Chicken Dance" and the Running of the Wieners dachshund race. The festival also features over 30 live musical performances along with circus acts, competitions, and games.

Plus, guests can opt for paid extras with all the free festival admission they save, like a local glassblowing workshop or a VIP pass for dedicated bars and shaded seating. Starting this year, the plaza also has a new Glockenspiel, a two-story clock tower with hourly chimes and choreographed performances.

For America's biggest Oktoberfest blowout with (relatively) cheap beer taxes, head right to the heart of the Midwest.

Related: Check out the 10 Cheapest Places in Ohio to Live.

4. Tempe, Arizona

State beer tax: $0.16

Dates: Oct. 9-11, 2026

Located along Tempe Town Lake at Beach Park, the Four Peaks Brewing Oktoberfest is a must-see for West Coasters and desert travelers alike. Arizona state beer taxes are a cool $0.16, according to 2026 Tax Foundation reports. And with free admission for everyone aged 20 and under, it might offer one of the best values on our list.

Sponsored by the local Four Peaks Brewing Company, this festival proves you don't need alpine pine trees to throw an incredible fall party. Enjoy classic Oktoberfest traditions like live music, brat-eating contests, and the annual "Runnin' for the Brats" 5K, together with a full carnival with rides and games.

Additionally, event hosts put on Dachshund races and a "Low Center of Gravity" dog race specifically for short-legged, non-weiner breeds.

But to upgrade your experience, check out the VIP backstage pass for prime lakefront viewing of mainstage performances, private shaded lounges, and included drink coupons.

So for lederhosen and dirndls in the Southwest, stop by Tempe, Arizona.

Related: 10 Cheapest Places to Live in Arizona.

3. Mt. Angel, Oregon

State beer tax: $0.08

Dates: Sept. 17-20, 2026

Surrounded by Bavarian-style architecture, scenic Willamette Valley farmlands, and hop fields, Mt. Angel hosts the Pacific Northwest's largest Oktoberfest. The Beaver State's beer tax is a startling $0.08, according to the Tax Foundation. Festival passes are only $15 to $20 per day (or $50 for a full season pass), while attendees under 21 enter free.

Explore a host of specialized "gartens" throughout town. This includes a bustling Biergarten, a Weingarten serving regional Oregon pinots and warm spiced wines, an Alpinegarten for live shows, and dedicated play areas for families.

Mt. Angel also features an authentic four-story Glockenspiel clock that chimes and spins hand-carved figures four times daily. Or for a more peaceful moment to get away from it all, step inside historic St. Mary Church to savor uplifting pipe organ music beneath stained glass windows.

Just south of Portland, deep cultural tradition and autumnal charm come together at the Mt. Angel Oktoberfest.

Want to make the commute a bit shorter next year? Check out the 10 Cheapest Places to Live in Oregon.

2. Denver, Colorado

State beer tax: $0.08

Dates: Sept. 18-20 and 25-27, 2026

The heart of downtown Denver beats to a German-style celebration spanning two autumnal weekends. Denver's Oktoberfest offers free general admission and holds the second-lowest beer tax on this list, per Tax Foundation data (tied with Oregon when rounded to the nearest penny).

The schedule is packed with interactive competitions, like the famous Keg Bowling tournament, where participants can pair strength with expert aim. The festival also boasts the annual Stein Hoisting Championship, the Long Dog Derby, a silent disco (whew, what a great way to take a break from it all), and of course, daily costume contests.

Have a dietary restriction? Not a problem. Denver also stands out for its dietary inclusivity, serving up plenty of vegetarian bratwurst, gluten-free bites, local ciders, and non-alcoholic brews alongside traditional taps.

For a high-altitude block party with free general admission, check out the Denver, Colorado Oktoberfest in 2026.

See also: 10 Cheapest Places to Live in Colorado.

1. La Crosse, Wisconsin

State beer tax: $0.06

Dates: Sept. 24-27, 2026

The most famous Oktoberfest with the cheapest state beer tax in America is located in La Crosse, Wisconsin, where the rate is barely above $0.05, according to the Tax Foundation. General admission wristbands are about $25 (with free ground entry on Sunday), giving you access to lederhosen games, food vendors, live polka, and craft beer gardens.

Holding its celebration along the Mississippi River bluffs since 1961, La Crosse has unmatched community traditions. Thursday night launches the famous Torchlight Parade — a tradition added to the festival in 1965 — which glows through the Northside and kicks off the Afterglow Bash.

Meanwhile, daytime brings carnival rides, vendor shopping, and festive community events, culminating in Saturday morning's Maple Leaf Parade and a grand fireworks show that evening. The celebration then wraps up on Sunday with the traditional Parade Marshal Pancake Breakfast and family-friendly activities.

In favor of an action-packed weekend full of Midwestern Gemütlichkeit, culture, and cheap beer taxes? Check out the Wisconsin USA Oktoberfest festival, and you'll be glad you did.

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If you have an unresolved problem with a bank, credit card issuer, credit-reporting company, or other financial product or service, one way to get help is to file a complaint with the Consumer Financial Protection Bureau. After you submit your complaint at the CFPB's website, the CFPB sends it to the provider for review. Most companies respond within 15 days.

Recently, the CFPB announced changes to its complaint portal. It's adding two-factor authentication, requiring users who create online accounts to verify both their e-mail address and their phone number. Additionally, the CFPB says that those who wish to correct inaccurate information on their credit reports must first file a dispute with the credit-reporting companies: Equifax, Experian and TransUnion.

While the Fair Credit Reporting Act supplies a framework for consumers to do this directly with the companies, "some credit-repair clinics and individuals are using the Bureau's complaint process to circumvent this statutory process," the CFPB says.

In recent years, the volume of complaints to the CFPB about consumer- and credit-reporting companies increased dramatically, rising from more than 150,000 in 2019 to more than 5 million in 2025. The CFPB says that it is "focusing resources on complaints that warrant a substantive response," safeguarding the system from users who appear to be abusing the complaint process.

The CFPB says its adjustments will help the bureau more effectively address complaints. Some consumer advocates, however, contend that these moves will create obstacles for those who request assistance from the CFPB. The National Consumer Law Center said in a statement that the CFPB's actions will discourage people from disputing credit-report errors.

In a letter to the CFPB's acting director, Russell Vought, Democratic Sens. Elizabeth Warren and Andy Kim expressed concern that the overhaul has made it more difficult for consumers to submit complaints and that the changes were made "at the urging and to the benefit of the credit-reporting companies."

Where to get help

Before you ask the CFPB or another third party to assist you with a complaint, reach out to the provider to see whether it offers a solution. If you find an error or signs of fraudulent activity on your credit reports — say, the presence of a credit card or loan that you never opened — contact the card issuer, lender or other entity that furnished the information, and file a dispute with each credit-reporting company listing it. You'll find a link to initiate your dispute online at each credit-reporting company's home page: equifax.com, experian.com and transunion.com.

If you're dissatisfied with a provider's response to your complaint (or if you get no reply at all), you may gain a better result by bringing in a government agency or advocacy organization. While the CFPB accepts complaints about financial products and services, other groups can assist with problems outside that arena. Your state's consumer protection office may mediate disputes with businesses; look up your state's office at usa.gov/state-consumer.

The Better Business Bureau will forward complaints to businesses on your behalf, asking them to respond within 14 days. Elliott Advocacy helps consumers resolve complaints with businesses for free, but you must agree that the group can publish your name and city in an article about your case so that others can learn from your experience.

Some financial problems can have effects that extend beyond the initial dispute. A financial professional can help you assess the potential impact on your finances and plan your next steps.

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

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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My father was a doctor, often on call for emergencies. Though he worked tirelessly, he valued family time. Long before "work-life balance" entered the American vernacular, he practiced it.

Now, decades later, I carry both his work ethic and commitment to loved ones in my own life and share these values with my daughter and clients at Pence Capital Management, where I am the chief investment officer. With summer winding down, I am reminded of the importance of prioritizing family while pursuing success.

Shopify President Harley Finkelstein spoke last year about the concept of "work-life harmony" rather than "work-life balance." I tend to agree. For each of us, there will be many seasons of life where balance will ebb and flow. For the sake of our health and our families, we must learn to find harmony in the season we are in.

What it takes to put family first

Consider this: A great family, financial success, yet children who feel disconnected.

In my decades of work as a wealth adviser, I've seen the terrible repercussions of professionals who have done well financially at the expense of their families. It's not uncommon in our industry to guide clients through painful divorces.

Even in our Golden State, where the rest of the country comes to rest and recharge, Californians need to get away as much as anyone else.

You can choose to prioritize meaningful connections now rather than risk repairing — even severing — relationships later. While financial security is important, investing time in your family can be even more valuable.

Begin today by establishing clear guidelines and intentionally dedicating time and resources to your family's well-being. It's easier than it sounds.

Consider the 'BS account'

It's often hard to spend our hard-earned money because we fear something might come up that requires those funds. Naturally, we want to protect our assets and save for a rainy day, as we were taught for many years.

But allowing yourself to spend on experiences for you and your loved ones is one of life's greatest gifts, and one that can slip away if we're not careful. We should be as intentional about spending on experiences as we are with retirement planning.

My father called this practice a "BS account" and encouraged me to create one early. His rule: Imagine something you want to do with your family, set a cost and save for it in a separate investment account. When you reach the goal, spend it. Then start again.

When I was growing up, he contributed money to this savings account every month, and whenever it reached a certain level, he would spend it on something for the family — usually a great vacation.

When I was young, his "BS account" bought a lake house. Our family would retreat there every weekend and spend time together outdoors.

In the spring, I formally presented the concept of "BS accounts" to a few hundred of our clients and encouraged them to send our team photos if they took our advice.

It's been one of the greatest joys of my professional career to see their memories start rolling into our inboxes.

What experiences matter most to you?

Today, some of my own "BS account" goes toward funding biannual family reunions, one of which I recently wrapped up in the Middle East.

Yours might fund a magical trip to Disneyland, an escape to Europe or the adventurous "California Double," where you surf in the morning and ski in the afternoon. "BS accounts" are less about the cost and more about intentionality and memories.

Decide what experiences matter most to you and your loved ones. Take the first steps: Set up your own account, define the rules and start saving for moments you'll remember.

Make your memories a priority — commit to spending for experiences, not just saving for someday.

You set the rules.

Create transformative traditions

Children will remember the time and memories they share with their parents more than any paycheck. Financial statements might gather dust in a drawer, but the experiences we share stay with us for life.

For a lasting legacy, make your scrapbook as important as your checkbook.

None of us needs permission to spend our money, but sometimes we do need a little encouragement.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Most people ask one big question when evaluating a job offer: What's the salary?

While that single number tends to get all the attention, it only tells part of the story. According to the Bureau of Labor Statistics, benefits account for nearly 30% of private-sector employers' total compensation costs on average.

Yet, as a financial professional, I regularly see clients overlook that value, either by underusing their current benefits or comparing job offers based on salary alone.

An extra $10,000 in salary would get your attention. The same amount in benefits should, too.

Here's how to evaluate your full compensation package, whether you're reviewing a new offer or making sure you're getting the most from your current benefits.

1. Calculate the value of your health benefits

Health insurance can be one of the most valuable parts of a compensation package: After all, according to the KFF Employer Health Benefits Survey, insuring a family in the U.S. now costs nearly $27,000 a year.

But the complexities inherent in the U.S. healthcare system can make putting a number on it challenging. To evaluate your benefits, compare the health plans available to you based on the employer contribution, premium, deductible, out-of-pocket maximum and provider network.

A plan that saves you $100 a month in premiums, for example, could still cost more overall if its deductible is $2,000 higher and you expect to use enough care to reach it.

Also review preventive care options, fitness incentives and wellness programs that could add value.

2. Capture the full value of your 401(k)

While the employer match for a 401(k) is maybe the most obvious form of noncash compensation, many fail to maximize its value.

In my practice, annual employer retirement contributions have ranged from about $3,000 to $30,000 — a difference that can become enormous over a career.

Contribute enough to receive the full match, consider automatic annual increases and check for nonelective or profit-sharing contributions.

3. Understand what equity compensation is really worth

Equity compensation, such as stock options and company shares, can create a significant wealth-building opportunity. That doesn't mean you should take the number listed in the offer letter at face value.

Review when the award vests, when taxes may be due and whether you could lose unvested shares or face a deadline to exercise options if you leave the company.

4. Put a dollar value on paid time off

Most people know to ask how many vacation days they will receive. Far fewer calculate what those days are worth.

For an employee earning $100,000, 15 days of paid time off represents almost $6,000 worth of paid time (based on roughly 260 working days per year).

Consider paid holidays, sick leave, parental leave and caregiving leave, as well as what happens to unused time:

• Does it carry over into the next year?
• Is there a cap on how much you can accumulate?
• Will accrued time be paid out if you leave?

5. Review employer-paid life and disability income insurance

Life and disability income insurance are easy to overlook because you might not use them for years, if ever.

For disability income insurance, review the percentage of income replaced, the waiting period before benefits begin and how long payments can continue.

For life insurance, determine whether the employer-provided benefit would be enough for your family's needs or whether you'll need additional coverage.

6. Remember commuter and other tax-advantaged benefits

Some benefits look small but still add up.

Commuter benefits, for example, may allow employees to pay eligible transit or parking expenses with pretax dollars. That is particularly valuable for workers in bustling cities like New York.

Other benefits may include flexible spending accounts (FSAs), health savings accounts (HSAs), tuition reimbursement, student loan assistance and professional development funds.

Crucially, the value of these benefits depends in large part on whether you'll actually use them. A tuition benefit may be worth thousands to one employee and very little to another.

Look at the complete picture

At the end of the day, this is a simple math exercise.

Add up the salary, health benefits, employer retirement contributions, equity compensation, paid leave, insurance and other benefits each position offers. Then consider what those benefits could be worth across the five or more years you might remain with the employer.

A bigger salary is appealing, but there is far more to building a financially secure life than what lands in your checking account every two weeks. A lower-paying job could ultimately provide greater total compensation — if you know how to value its benefits correctly.

While this discussion summarizes, for your convenience, certain information about employee benefit plans, it is not an official explanation or discussion of these programs, and any information provided directly by your employer will prevail.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

"Debt" is probably a word many of us don't like to hear.

Given the negative impacts debt can have, from foreclosures on homes to harming credit profiles, it's natural that the word "debt" often sparks fear.

Americans' total household debt rose to a jaw-dropping $18.8 trillion in the fourth quarter of 2025, according to the Federal Reserve Bank of New York.

However, not all debt is created equal. When used intentionally, specific types of debt can help advance your financial well-being. It's important to distinguish which debt could hold you back and which could move you forward.

How can debt be an asset?

Debt can help bridge a gap to achieve a meaningful goal or create long-term financial stability.

For homeowners, leveraging home equity through a line of credit or loan can provide a lower-cost way to fund major life milestones or home improvements.

• Entrepreneurs can access the capital required to launch or expand their business through a business loan
• A student loan to pay for education can be an investment in an individual's lifetime earning potential
• A fixed-rate personal loan can be a strategic tool for consolidating high-interest debt to help save money on interest or simplify monthly payments

If borrowers use the funds from these loans wisely and responsibly, the value of the opportunity they create can outweigh the cost of the loan.

On the other hand, bad debt is often defined by discretionary purposes, high interest rates and little to no long-term benefit.

For example, using a loan or credit card to pay for a vacation or for shopping expenses can saddle you with high interest payments over time that outweigh the short-term payoff.

Similarly, even if you're borrowing for an important goal, if it has a high interest rate or if you borrowed more than needed, then it might hinder your financial well-being in the long run.

Taking control with credit cards

Some people might be wary of using credit cards because it's easy to accumulate debt quickly.

While the risk of overspending is a valid concern, avoiding credit cards entirely can lead to credit invisibility. This occurs when you have no reported debt, which means credit bureaus lack data to calculate a credit score, making it significantly harder to rent an apartment, buy insurance, or even secure a loan when you actually need one.

When used wisely, a credit card can be a powerful tool to help you take control of your finances. A credit card can help you move across the credit spectrum, manage your cash flow and access potential rewards.

If you're just starting out or working with less-than-perfect credit, utilizing a credit-builder card or being added as an authorized user on a trusted family member's account can be a helpful first step to strengthen your history.

One of the main ways to have a healthy credit score is to demonstrate you're a reliable and trustworthy borrower by keeping your charges low and paying your monthly balances on time and in full (if possible).

If a card has high fees, consider negotiating a lower interest rate with your card issuers or switch to a simpler version of the card with no fees rather than closing the account entirely.

Keeping accounts open and in good standing helps maintain a healthy credit utilization ratio and longer credit history. Developing responsible credit card habits benefits your credit score, which helps you qualify for more favorable terms in the future.

Being debt-free could make you financially vulnerable

While chipping away at high-interest debt is a great move, being 100% debt-free doesn't have to be your only priority. Waiting until every balance is zero before you start saving or investing might leave you feeling a bit stuck when an unexpected bill pops up.

Depending on your situation, it might be best to focus on keeping a steady pace on your debt payments. If your debt is low interest, it's often more advantageous to maintain your payment schedule and build your savings simultaneously to give yourself a safety net.

How to evaluate debt

Prior to taking on new debt, ask yourself these questions to ensure it's the right choice for you:

How does this fit my goals? Will borrowing funds help you reach a milestone, such as homeownership or debt consolidation? Will the anticipated outcome outweigh the cost of the loan?

What's the interest rate? Consider how the rate impacts your finances long-term.

Do I have time to improve my credit score first? Having a higher credit score can open doors to higher credit limits and loan amounts, lower rates and more flexible loan terms, which can save you money in the long run.

Depending on when you need funds, taking a few months to improve your credit score can be a wise move.

How does a loan or credit card fit into my budget? Ensure you can comfortably manage the monthly payments without sacrificing your savings or essential expenses.

The goal is to bridge a financial gap, not create a new one.

Is there a clear exit? Have a repayment plan mapped out before borrowing. Compare the different types of loans available, prioritizing transparent options with structured, simple repayment plans and zero hidden fees or early-payment penalties.

Is the lender or credit card provider flexible? Life happens. Ask a lender about their willingness to renegotiate terms, APR adjustments and provide support in times of hardship.

Debt is a tool, and like any tool, its value depends on the hand that wields it. By shifting from complete avoidance to strategy, you can leverage debt to help build your financial future.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

As wealth grows, financial decisions often become more complex. For many investors, most wealth is invested rather than held in cash, creating liquidity challenges when funds are quickly needed.

Whether funding a home renovation, purchasing real estate, pursuing a business opportunity or addressing a short-term liquidity need, many investors assume they need to sell investments to access cash.

In some situations, that may be the right answer. In others, borrowing against a portfolio through a securities-based line of credit (SBLOC) may help preserve the integrity of a long-term financial plan while providing the liquidity needed today.

An experienced adviser, guided by a thoughtful and carefully constructed financial plan, can help determine when an SBLOC may make sense, when it may not and how to use it effectively while keeping the broader financial plan intact.

How an SBLOC works

Many affluent investors have substantial assets but limited readily available cash. When a significant expense or opportunity arises, selling investments may generate capital gains taxes, disrupt asset allocation or reduce exposure to future market growth.

An SBLOC allows investors to borrow against eligible assets in their investment portfolio without selling the underlying securities.

As a revolving line of credit, it provides flexible access to cash while allowing investments to remain part of a long-term strategy.

Because the loan is secured by investments, borrowing terms may differ from unsecured lending options.

SBLOCs are often used to address short-term liquidity needs, fund major purchases or serve as a source of readily available borrowing capacity. As a non-purpose loan, proceeds can be used for many personal or business needs, but typically can't be used to purchase, carry or trade securities.

The amount available to borrow depends on the type and value of the assets pledged as collateral, which are typically held in eligible taxable investment accounts rather than retirement accounts.

When borrowing against your portfolio might make sense

Securities-based lending is not a one-size-fits-all solution, but it can be an effective planning tool in several scenarios:

Bridging a short-term liquidity need. A common use case is when an investor needs cash today but expects funds in the near future.

For example, someone might be awaiting proceeds from the sale of a business or property, an annual bonus or another expected source of funds. Rather than selling investments, SBLOCs could provide temporary financing until those funds arrive.

Funding major purchases or opportunities. Real estate purchases, business investments or other large expenditures may arise when market conditions are favorable. In these situations, an SBLOC may provide flexibility and speed while allowing the investor to keep their investments intact.

Securities-based lending is commonly used for purposes such as real estate financing, business financing, tax obligations, education expenses and other significant purchases.

Avoiding unnecessary liquidation. Selling investments to raise cash can disrupt a long-term strategy and create unintended tax or market consequences. Beyond potential taxes, investors may find themselves out of the market during periods of strong performance.

An SBLOC may help maintain exposure to long-term growth opportunities while addressing immediate cash needs.

When borrowing against your portfolio may not make sense

Securities-based lending can be a valuable tool, but it's not appropriate for every situation.

Long-term spending needs. Using borrowed funds for ongoing lifestyle expenses warrants careful consideration. An SBLOC may be more effective as a source of strategic, temporary liquidity than as a permanent solution to recurring cash-flow challenges.

For long-term spending needs, selling assets or pursuing other financing options may be more appropriate.

When market volatility would create discomfort. Borrowing capacity is tied to the value of the pledged investments. If the value of pledged securities declines, the lender may require additional collateral or repayment of a portion of the loan.

If those requirements are not met, the lender may sell pledged securities, potentially on short notice and without advance consultation regarding which assets are sold. Investors who are uncomfortable with those possibilities may prefer other sources of financing.

When rising borrowing costs could be a concern. While SBLOCs can offer competitive borrowing rates, they typically feature variable interest rates and may involve interest-only payments.

As interest rates change, borrowing costs can increase, potentially affecting cash flow and the overall cost of financing. Investors should understand how rate fluctuations could affect their repayment strategy before establishing an SBLOC.

When repayment is unclear. As with any borrowing strategy, there should be a clear understanding of how the debt will be managed and repaid. An SBLOC should be evaluated within the context of a comprehensive financial plan, not simply because borrowing capacity exists.

Why professional guidance matters

Effective use of securities-based lending often involves guidance from banking, lending and wealth management professionals who understand the client's broader financial picture.

An adviser can help evaluate questions such as:

• Is borrowing more advantageous than selling securities?
• What are the potential tax considerations?
• How does the loan affect overall cash flow?
• How might different market scenarios affect the pledged portfolio?
• Does the strategy support long-term financial goals?

An SBLOC is more than a lending solution. It's a financial planning decision that should be evaluated within the context of an investor's broader goals.

A tool, not a shortcut

Accessing cash doesn't always require selling investments. For some investors, an SBLOC can provide liquidity while preserving a long-term investment strategy.

But as with any financial tool, it should be used intentionally, with a clear understanding of both its benefits and its risks.

When incorporated into a comprehensive wealth strategy and guided by experienced advisers, borrowing against a portfolio may help investors pursue today's opportunities without losing sight of tomorrow's goals.

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• Considering a 401(k) Loan? What You Can Do Instead

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Dolly Parton spent a lifetime turning contradictions into strengths.

She grew up with very little money yet became extraordinarily wealthy. She left the mountains of East Tennessee, yet never really left them behind. She created an image that was deliberately extravagant, while underneath the rhinestones was a remarkably disciplined businesswoman.

Her life offers a powerful lesson about wealth because she accumulated two very different kinds of it.

I define total wealth as the combination of financial wealth and wisdom wealth:

• Financial wealth includes income, investments, businesses, property and financial security.
• Wisdom wealth is harder to measure. It includes knowing yourself, understanding what matters, finding purpose, developing resilience, building meaningful relationships and having the courage to live according to your own definition of success.

Dolly Parton built an extraordinary amount of both.

Step outside your concrete box

Parton was the fourth of 12 children raised in rural Tennessee in a family with very little money. Her childhood later inspired "Coat of Many Colors," one of her most beloved songs. The coat itself had almost no financial value, but the love with which her mother made it gave it another kind of value. Its value came from relationships, love and gratitude.

That is wisdom wealth.

But being grateful for what we have does not mean accepting every limitation we inherit. I use the term "concrete box" to describe the invisible boundaries that family, circumstances, culture, fear and our own assumptions can construct around our lives.

Over time, we can become so accustomed to those walls that we stop seeing them.

Parton saw hers. The day after graduating from high school, she left for Nashville. She did not reject where she came from. She simply refused to allow her starting point to define her destination.

That may be the first lesson in building total wealth: Know where you come from, but don't let it tell you how far you can go.

Create income, but own assets

One of Parton's smartest financial decisions came long before she became a global superstar.

In the 1960s, before she had even achieved a Top 10 hit as a recording artist, she established a publishing company with her uncle Bill Owens. The decision allowed her to maintain control over the copyrights to the songs she wrote.

At a time when many famous musicians surrendered ownership of their work, Parton understood its long-term value.

Years later, Elvis Presley wanted to record her song "I Will Always Love You." It should have been a dream opportunity, until his business manager demanded half of the publishing rights.

Parton said no.

Imagine turning down Presley while you are still building your career. Yet Parton understood something every investor should understand: Income pays you today. Ownership can pay you for decades.

That decision became enormously valuable when Whitney Houston later recorded "I Will Always Love You," and the song became a worldwide phenomenon. Because Parton retained her rights as the songwriter, she participated in its enormous financial success.

Most of us will never own a music catalog, but the principle applies to everyone:

• A paycheck creates income
• Savings can purchase investments
• Investments create ownership
• Ownership, combined with time and compounding, can create financial freedom and even generational wealth

Don't only ask, "How much am I earning?" Also ask, "What am I owning?"

For many people, that can mean building ownership through diversified equities, real estate or a business. Starting early gives compounding more time to work.

Don't confuse your job with your potential

Parton also understood that one source of income does not have to define the boundaries of your economic life.

In the movie 9 to 5, she famously sang about pouring herself "a cup of ambition." She had plenty of it.

She did not remain simply a country singer. She crossed into pop music, acted in movies, wrote books, invested in businesses, licensed products and ultimately attached her name and capital to Dollywood.

Forbes valued her music catalog at about $120 million and estimated her net worth at about $450 million. Dollywood became an economic engine in the same region where she had grown up poor. A Tennessee study estimated its annual economic impact at $1.8 billion and associated it with 23,000 jobs.

There is a financial lesson here that goes beyond celebrity entrepreneurship: Diversification does not apply only to portfolios.

Your skills and career create human capital. Saving and investing can convert the income from that human capital into financial capital. With enough time and the power of compounding, your money begins working alongside you.

You do not need five businesses to follow Parton's example. You need a growth mindset and a commitment to save, invest and own.

Failure is an event, not an identity

Looking back, it might appear that Parton's extraordinary success was inevitable. It wasn't.

Projects failed. Her movie Rhinestone disappointed at the box office. A costly prime-time television show was canceled after one season. Separating professionally from Porter Wagoner resulted in an expensive legal settlement.

She kept going.

This is where wisdom wealth becomes essential to financial wealth. Investors experience bear markets. Entrepreneurs have failed ventures. Employees lose jobs. Careers stall. Retirement plans change. No financial plan can eliminate uncertainty or life's unexpected turns.

Financial wealth can give us the resources to withstand setbacks. Wisdom wealth gives us the resilience to begin again.

Sometimes wealth is the portfolio that carries you through a difficult period. Sometimes it is the mindset that prevents a difficult period from defining the rest of your life.

We need both.

Eventually, ask what money is for

Perhaps Parton's greatest investment cannot be measured on a balance sheet.

In 1995, she launched the Imagination Library, inspired partly by her father's inability to read and write. What began as an effort to provide books to children in her home county grew into an international literacy program that has distributed hundreds of millions of books.

Consider the circle her life completed:

• A girl grows up poor in Tennessee
• She steps outside her concrete box
• She turns talent into income
• She converts income into ownership
• Ownership creates financial wealth
• She uses that wealth to give millions of children opportunities that were unavailable to people she loved

That is total wealth creation.

We spend enormous amounts of time asking financial questions:

• How much should I save?
• What should I invest in?
• When can I retire?
• What return do I need?

Those questions matter. I have spent much of my professional life helping people answer them. But eventually, we should ask a bigger question: What is all this wealth for?

If money itself becomes the destination, the finish line keeps moving. There will always be someone with a larger house, a bigger portfolio or a higher net worth.

Wisdom wealth gives you the why — financial wealth provides the how

Dolly Parton understood both sides of wealth. She knew how to make money, protect ownership and build businesses. But she also knew where she came from, what mattered to her and what she wanted her success to accomplish.

She left her rural hometown to pursue her dreams, then used much of what she built to enrich the place she came from.

Perhaps that is her greatest wealth lesson: Don't simply build a bigger balance sheet. Build a bigger life.

Step outside your concrete box. Build financial wealth. Build wisdom wealth. Together, build total wealth.

Feroz Ansari, CFP®, is a portfolio manager at Compak Asset Management and an adjunct professor at the University of California, Irvine. He is the author of The Wisdom and Wealth Solution, published by Kiplinger Books and a USA Today national bestseller.

To learn more, visit wisdomandwealthsolution.com or subscribe to The Wisdom and Wealth Solution YouTube channel.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

You've no doubt heard the saying, "There is nothing as uncommon as common sense."

There is a closely related issue in the form of several questions that we should ask ourselves, but often do not at times when common sense should prevail:

• If I do this, what are the likely consequences?
• Why am I even considering doing this?
• Who can I ask before I take the next step?
• Have I been here before, doing something that, when looking back on it later and the trouble it got me into, indicates I'm prone to asking for trouble?

'I am supposed to get 32 miles per charge'

Ideas for my articles are often handed to me by readers. Fortunately, most are asking for a legal opinion on some action they want to take. Frequently, the underlying basis, as we say in law, "assumes facts not in evidence."

This means a question or statement assumes something that hasn't been proven, but there is an assumption, a belief, that the statement is true, and they are about to act on it.

"Jackie," who lives in the South, sent this email that is the perfect illustration: "I purchased a new Chrysler Pacifica eHybrid from my local dealer in 2024. I am supposed to get 32 miles per charge. In March, I was only getting 28 to 32 miles per charge. The charge is also not lasting as long as it is supposed to.

"The local dealer, as well as Chrysler customer care, refuse to fix the problem. My car is within the warranty period. I want to put magnetic signs on my car telling people not to purchase vehicles from this dealer. Am I protected under the First Amendment? We live in a small city, and these signs would definitely make an impact."

Jackie signed her email, "A devoted reader."

Is Jackie's complaint valid?

I read online reviews of her vehicle, all confirming the EPA estimates 32 miles of electric-only range on a full charge. Industrywide, EV batteries normally lose about 2% range per year.

In any event, a 28- to 32-mile electric range is within normal variation for a 2024 Pacifica PHEV. Jackie's complaint about the dealer and Chrysler therefore lacks merit, as there is nothing to repair.

Legal issue: Defamation vs protected opinion

When it comes to criticizing a business, it is important to understand the difference between speech that is protected and speech that is unprotected — statements of opinion vs factual assertions.

So, Jackie could attach a sign to her car that states her opinions, such as:

• I believe the dealer misled me, and I would not buy from them again
• I do not like the mileage I am getting
• In my opinion, Chrysler isn't honoring its warranty

However, the following assertions could see her staring down the barrel of a defamation lawsuit if she's unable to support them with facts:

• Chrysler lied about the battery range
• My dealer knowingly sold me a defective vehicle and refused needed repairs
• My dealer is engaging in consumer fraud

The legal risks Jackie could be inviting

Jackie could be:

• Sued for business interference. If her local Chrysler dealer has proof that the signs she put on her car are costing them sales or other economic damage, they would likely file suit alleging intentional interference with prospective economic advantage and trade libel.
• Sued for defamation. Over the years, I have had more than one unhappy car owner march into my office, shaking like a leaf, holding a lawsuit they were just served with from an auto dealer that accuses them of posting defamatory signs, reviews and social media comments containing false factual assertions — meaning they stated a specific fact that can be proven false.

To a person, they thought that by causing embarrassment to the dealer, this would result in their complaint being dealt with. The result was anything but. None of them ever saw the possible legal consequences of engaging in what amounted to defamatory conduct.

They never remotely considered having to shell out a significant amount of money for attorney fees.

So, Jackie may put magnetic signs on her vehicle if they contain only her opinions, but she would almost certainly find herself in scalding-hot legal water if the signs contain false factual accusations about the dealer or manufacturer.

I am worried about Jackie

I do not know Jackie, but I wonder if this is a pattern with her. Is she reacting to a perceived wrong in a disproportionate way, revealing a grievance mindset? Is she psychologically invested in the idea that she has been wronged and someone must be held accountable?

That could explain why someone would consider putting a sign on her car even though doing so might lead to significant (and expensive) consequences.

Jackie lives in a small town and will need to have her vehicle serviced, so what does she get out of going to war with the dealer? Absolutely nothing!

There could very well be deeper issues at play, and this could be a time for a family meeting. Today, it is a non-issue with her vehicle, but she faces potential enormously high attorney fees if she defames the auto dealer and automaker.

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Investing in U.S. Treasury securities has long been the financial equivalent of vanilla ice cream: Not the most exciting choice, but generally predictable and dependable.

That reputation has made Treasuries a cornerstone of countless investment portfolios and an important source of funding for a national debt that now exceeds $40 trillion.

About U.S. Treasury securities

What is a U.S. Treasury security? It is a loan you make to the U.S. government, with terms ranging from ultra-short (four weeks) to long-term (30 years). In return, the U.S. government promises to pay back the full amount of your principal, plus interest, at regular intervals.

Treasury securities have long been considered one of the safest investments because they're backed by the full faith and credit of the U.S. government.

But in recent years, some investors have questioned whether an investment in U.S. Treasury securities should continue to be categorized as the default "safe" investment.

What if, for example, the trust that worldwide investors have placed in these instruments breaks, and payments are either denied or deferred? What if a significant number of investors decide they no longer want to help fund the U.S. government, because a large portion of the debt is related to military spending or other policies with which they disagree?

If these concerns resonate with you, there's good news. There are other fixed income alternatives that could help you sleep better at night — options that put your capital to work in community infrastructure and local economies with risk profiles comparable to U.S. Treasuries and with similar or higher yields.

Choosing the right fixed income alternative for you depends on your values and financial situation.

Consider investing in a CDFI

A Community Development Financial Institution (CDFI) provides capital to certified lenders in communities historically underserved by traditional financing opportunities.

CDFIs fund initiatives such as affordable housing projects, BIPOC-owned businesses, healthcare programs, rural development projects and community nonprofits.

Many CDFIs offer bonds with nonconcessionary or market-rate returns, so the investor doesn't have to sacrifice expected financial performance to make a positive impact.

However, investors should be aware that CDFIs are less liquid than U.S. bonds — meaning they can't be quickly converted to cash — because these investments are typically held for a set term and aren't traded on a public marketplace.

For those who don't need immediate access to their capital, however, this tradeoff can be well worth it.

The Opportunity Finance Network is a free tool you can use to find CDFIs based in rural, urban and Native communities across the U.S.

Explore opportunities to invest directly into a community project

One of the most direct and meaningful ways to make a lasting impact with your dollars is to invest in community projects. Private organizations pool investor capital to finance projects such as affordable housing, renewable energy, community facilities, healthcare centers, small businesses and more.

These investments can be a great way to diversify your portfolio.

As with CDFIs, these investments are less liquid because they're intended to be held until the loan reaches maturity, so they're not ideal for investors who need immediate access to cash.

They may also carry higher risk, depending on the issuer — however, they arguably bring the highest return in terms of community impact.

If you're interested in finding community projects seeking investments, donor collectives such as Solidaire Network or Women Donors Network, as well as community banks, can be wonderful resources for sourcing projects to invest in.

Support community infrastructure through municipal bonds

A municipal, or muni, bond is issued by a state or local government to finance infrastructure projects such as schools, roads, hospitals, water systems, transportation and parks.

In addition to providing essential services to local communities, muni bonds usually offer the highest rate of return available in the bond space, relative to the amount of investment risk.

They can also have potential federal and sometimes state tax benefits.

However, those advantages are generally reserved for investors in the highest tax brackets, making this option less suitable for some.

The Municipal Securities Rulemaking Board (MSRB) has a free tool to help investors view and compare municipal bonds.

Remember that your portfolio can be a direct reflection of your personal values

Regardless of what type of community investment vehicle you decide on, the important thing to know is that there are always options if you're looking to diversify your portfolio away from U.S. Treasury bonds. The right solution depends on your values, your personal appetite for risk and the timeframe you have for holding the investment.

Shifting your fixed-income strategy toward one that better aligns with your personal values is a significant step toward building a complete financial plan that fully aligns with the causes, communities and values that matter to you.

You shouldn't have to do it alone. Using a tool such as valuesadvisor.org can help you find a financial professional who cares about both the financial and ethical impact of your investments as much as you do.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

As natural disasters, such as hurricanes, wildfires, earthquakes, tornadoes, floods and blizzards, become more intense, losses from these disasters are soaring. If you suffer property damage from such a disaster, knowledge of the tax law can help.

Deducting Losses

Individuals can deduct personal casualty losses that are not reimbursed by insurance to the extent those uninsured losses are attributable to federally declared disasters that affect a wide area.

Your loss is equal to the smaller of the damaged property's adjusted basis or decline in value, less any insurance proceeds you receive or expect to receive.

New legislation passed by Congress has tax easings identical to prior relief for victims of federally declared disasters that occurred in 2020 through July 4, 2025. The law, named the "Doug LaMalfa Federal Disaster Tax Relief Certainty Act," applies to federally declared disasters beginning before 2026, which includes disasters that occurred in the last six months of 2025.

The new legislation lets taxpayers deduct their uninsured personal losses, such as damage to a house, car, or personal belongings, from federally declared disasters in excess of a $500 threshold, without regard to the 10%-of-adjusted-gross-income offset that generally applies to disaster loss deductions.

This expanded tax break is available for taxpayers who claim the standard deduction and for those who itemize on Schedule A of Form 1040. The IRS refers to these losses as “qualified disaster losses.”

Computing the amount of loss to your home, car, or belongings can be difficult. Luckily, the IRS has multiple safe harbors that may help with this calculation.

• For example, one method lets a homeowner with casualty losses of $20,000 or less take the lesser of two repair estimates to determine the decrease in the home's value.
• Homeowners can also use the estimated loss in reports prepared by an insurer or a licensed contractor's invoice.
• And there is a safe harbor to help you compute the replacement cost of your personal belongings destroyed in the federally declared disaster.

You can find out more about these safe harbors in IRS Publication 547 and IRS Revenue Procedure 2018-08.

If you suffered a disaster loss last year after July 4, 2025, and you used the old tax rules when preparing your 2025 tax return, you have three years from the filing due date to amend your return by filing Form 1040X to take advantage of the new law.

If you suffer a disaster loss in 2026, you can claim the loss on your 2026 or 2025 federal tax return. That's because individuals can opt to take the loss for the disaster year or the year immediately preceding the disaster.

For example, if a tornado damaged your home or personal belongings this year, you can claim the loss on your 2026 return or your 2025 return, giving you the flexibility to claim it in the year that provides the greatest benefit. If you decide to claim it for 2025 and you have already filed your 2025 return, you can amend it by filing Form 1040-X.

Note that for this purpose, the filing due date for a 2025 amended return is six months after the normal due date for filing your return (without extensions) for the year in which the loss took place. So for 2026 disaster losses, you would need to file an amended 2025 return by October 15, 2027.

IRS Resources

The IRS can be your friend after a disaster. If you lost prior-year tax returns in a hurricane, fire or other disaster, there are multiple ways to get a tax transcript, which is a summary of your key tax information. You can get a paper copy of your full return, but that would take longer.

The IRS also has a dedicated phone line for disaster-related questions: 866-562-5227. This is in addition to the tax filing and tax payment extensions that the IRS regularly provides after a disaster.

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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Wealth Wise is Kiplinger's advice column on navigating retirement-related dilemmas. Got a question? See below for how to send it.

Dear Wealth Wise: With tuition for private colleges nearing $100k a year, I have four questions about college savings for a child or grandchild.

1. When should you start saving, and how much per year?
2. What happens to any excess money in a child's 529 after they have graduated?
3. Does bankrolling a four-year university still make financial sense given the job market and potential AI takeover?
4. Do you think lawmakers will change the rules on leftover 529 funds if college becomes increasingly less useful in the coming years?

— Stressed Saver

Dear Stressed Saver: Any parent or grandparent trying to finance a child's education knows the struggle of balancing college savings with retirement savings. Still, many are willing to make sacrifices so their children or grandchildren can choose among universities without accumulating a massive pile of debt.

But with a weak entry-level job market and the possibility of AI taking an increasing number of jobs, some may be wondering just how much of an effort to make on the college savings front, and if a four-year degree is even worth it.

Those are exactly the questions one of our readers has for us. They want to understand how to prioritize college savings and whether a 529 plan is the right choice in today's changing landscape.

There's a lot to unpack here, so let's review what our experts had to say.

1. When should you start saving and how much per year?

Retirement savers have an advantage. They can begin funding an IRA or 401(k) in their 20s, potentially giving that money 40 years to grow. The window to accumulate college savings isn't as long, unless you're willing to start socking funds away for education prior to having kids.

Jonathan Codispoti, President at Legacy Wealth Strategies, says that if you're potentially looking to fund a $100,000-per-year education, your best bet is to start at birth. However, he cautions, "You can borrow for college. You can't borrow for retirement."

That's why he advises clients to first max out retirement plan contributions and then allocate what's left to college savings.

Michael Van Boening CFP and Director, Financial Planning at Mercer Advisors, agrees.

"Ideally, you should have a retirement plan of record that shows you are saving sufficiently for a successful retirement before starting to save for education," he says.

But Van Boening also says it’s important to start saving for college as early as possible to give your 529 plan time to compound and grow.

"A public four-year university could easily cost $150,000-$250,000 in future dollars. To fund the average public in-state school 100% in 18 years, you would need to save approximately $700 per month, or $8,400 per year," he says.

Codispoti says one way to get a head start on college savings is to take advantage of "superfunding." You can contribute up to $95,000 per child in a single year using the five-year gift tax averaging rule.

If you're a grandparent, there's a 529 loophole for you. Under FAFSA rules implemented in 2024, distributions from a grandparent-owned 529 account no longer count as student income, meaning they won't hurt a grandchild's financial aid eligibility in most cases.

2. What happens to excess 529 funds?

Some might say having too much money in a 529 plan is a good problem to have. Thankfully, it's less of a problem these days.

As Van Boening explains, "You can always move some or all of the 529 funds to another beneficiary within the family. This extends to siblings, children, grandchildren, even including first cousins."

Another option, he says, is to save the excess funds for the beneficiary's graduate or doctoral degrees. You can even make yourself the beneficiary and use the funds to attend classes to further your education. Plus, 529 plans can be used to pay for vocational school if your child decides not to pursue a traditional college education.

"Most 529 accounts do not have time limits when the money must be withdrawn, so the accounts could be used as an educational legacy for future generations," Van Boening says.

Another important thing to keep in mind is that under SECURE 2.0, excess funds in a 529 plan can now be rolled into a Roth IRA, up to $35,000. But there are some nuances.

"The annual limit is the Roth account contribution limit, and the rollover counts as the annual contribution to the Roth IRA," Van Boening says. As such, based on today's Roth IRA contribution limits, it could take several years to complete a $35,000 rollover.

Van Boening also explains that the beneficiary must match the 529 account beneficiary, and they must have earned income equal to or higher than the rollover amount. In addition, the 529 account must have been open for at least 15 years.

Codispoti calls this flexibility a game-changer.

"This eliminates the old overfunding penalty fear [for most savers]," he says. If you don't need the money for college, it still grows for retirement.

Still, if you've overfunded a 529 plan by $100K, your beneficiary will be on the hook for a 10% penalty and income taxes if they don't use the money for education. That said, proceeds from a 529 account don't incur taxes in many states.

3. Will lawmakers change the rules on leftover 529 funds?

Given uncertainty about the future need for a college degree, our reader wonders whether 529 rules might change even more if college enrollment wanes.

Codispoti's answer? Possibly.

"The trend is toward more flexibility, not less," he explains. Recent legislation already expanded 529 use for K-12, apprenticeships, and Roth rollovers, he says. "If enrollment declines persist, I'd expect further expansion rather than restrictions."

Van Boening has a similar take.

"It’s hard to predict future policy changes, but I would bet that future changes are more likely to increase flexibility than to restrict existing benefits," he says.

4. Does four-year college still make sense?

Even if you're able to juggle retirement savings and 529 plan contributions, you may be wondering if you should even be planning for your children to attend college given the uncertainty that abounds.

Codispoti says four-year college still makes sense. But, he says, "The ROI calculus has changed."

As he explains, a degree still correlates with significantly higher lifetime earnings versus non-graduates.

"However," Codispoti continues, "the real question isn't if college pays off. It's whether their child will graduate with a plan. The days of any degree, any school equaling automatic success are over. Targeted vocational paths, apprenticeships, and entrepreneurship are also viable routes worth serious discussion."

Van Boening, meanwhile, also says a college degree still makes sense, especially for in-demand professional careers.

"The data from the National Center for Education Statistics shows that those with a college degree earn about 59% more than those with just a high school diploma," he says.

But Van Boening also cautions, "It pays to choose wisely, though, because some degree programs do not have a good return on the education investment, especially if the chosen field is not in demand."

Bonus advice: consider the Roth IRA

Although our reader didn't ask this question directly, since they're asking whether a 529 plan makes sense to prioritize, we'd be remiss not to mention an alternative college-saving option — the Roth IRA.

Codispoti says that even though 529 plans now allow for a Roth rollover, "for parents who want maximum flexibility, prioritize a Roth IRA first. Contributions can be withdrawn penalty-free for any reason, including college. Then use a 529 for additional savings."

Van Boening, meanwhile, says that while you can use a Roth IRA to save for college, he still recommends 529 plans. But you should only fund yours up to a point.

"We typically recommend clients aim for saving 75% to 80% [of college costs] in their 529 accounts," he says. Often, he continues, "the remaining balance can be paid for through scholarships, grants, relatives contributing, or even the parent’s own cash flow or savings."

And don't forget that if you end up with a small college savings shortfall, your child can always borrow. So if you need to limit college savings to prioritize your own savings, you shouldn't think twice.

As Codispoti says, "Never sacrifice your own retirement to fund college. Your kid can get a loan. You can't get a retirement loan."

Not all questions submitted will be published, and some may be condensed and/or combined with other similar questions and answers, as required editorially. The answers provided by our writers and experts in this advice column are for general informational purposes only. While we take reasonable precautions to ensure we provide accurate answers to your questions, this information does not and is not intended to constitute independent financial, legal, or tax advice. You should not act, or refrain from acting, based on any information provided in this feature. You should consult with a financial adviser regarding any questions you may have in relation to the matters discussed in this article.

MORE WEALTH WISE ADVICE ON COLLEGE SAVINGS

• Should You Upsize When College Tuition and Retirement Collide?
• Should We Bankroll Our Son's $180K Law School Tuition Even Though We're Retired?
• 'Subsidized Adulting': Can You Afford to Help Your Children Financially?

Read More

• We're 54 With $1.8 Million. My Wife Wants to Start a College Fund for Our Grandson, but I Think We Should Keep Funding Our Retirement.
• 529 Funds and a Roth IRA: How to Use One to Jumpstart the Other
• We're 75 With $3.2 Million. Our Grandchild Needs Help Paying for College, but It's Not Our Fault She Picked a School That's $90k a Year!

Inflation has been running hot for over five years now.

We know how this affects our grocery bills. We get an ugly reminder of that every week.

But how does it impact our long-term investment returns?

Consider the S&P 500 since its inception in 1957. The index delivered compound annual returns, including dividends, of 10.6%. But stripping out the effects of inflation, that number drops to 6.8%, nearly 400 basis points lower than the number quoted in most marketing materials.

That might seem small, but it makes an enormous difference over time. One thousand dollars in 1957 compounded at 10.6% would be worth over $1 million today. That same $1,000 compounded at 6.8% would be worth about $94,000. That's a massive difference!

Winners and losers when inflation runs hot

Our accounts are measured in dollars. Inflation erodes the value of those dollars, which skews our perception of what our investments are worth. But not all assets are impacted equally. Let's take a look at how the broad asset classes performed during the last major period of sustained inflation, 1973 to 1981, when it averaged around 9.2% per year.

We'll start with what got hit the hardest. Long-term bonds were the decade's biggest casualty, losing nearly 40% of their value in real terms, even after coupon payments. When inflation is rising, bond yields have to rise to keep pace. And the way bond math works, rising yields mean lower prices. The longer the time to maturity, the more sensitive a bond is to yield changes.

What does this look like in today's market?

The iShares 20+ Year Treasury Bond ETF (TLT) reports an effective duration of about 15. In simple terms, this means that every 1% rise in interest rates results in an approximate 15% decline in TLT's share price. A 2% increase in rates can lower the value of the bond fund by around 30%.

Bonds are a mainstay in the portfolios of most retirees because they pay income and they're perceived as being less risky than stocks. But in a period of high inflation, bonds actually increase risk rather than mitigate it.

What about stocks?

Inflation hurts stocks too, and particularly growth stocks whose valuations are based on earnings estimates years or decades in the future.

Here's why. A dollar of earnings to be received five or 10 years from now is worth a lot less in today's dollars when inflation and interest rates are higher. So, the higher that interest rates go due to inflation, the less those future earnings are worth.

This isn't academic. We saw firsthand how the stock market reacted to the Federal Reserve's interest rate shock in 2022. By October, the S&P 500 had fallen almost 27% before rebounding slightly in the fourth quarter. Going back even further, the S&P 500's return between 1966 and 1982 was a cumulative 51% over those 16 years. That's a paltry compound return of less than 3% per year. But at least it's positive, right?

Not after accounting for inflation. The inflation-adjusted S&P 500 lost about half its value over that stretch.

Not everything was a flop during that time frame, of course. Gold enjoyed a monster run, rising from roughly $35 per ounce to $850 for a return of more than 2,000% in nominal terms. Commodities in general performed well, though this is partly skewed by the effects of the two oil shocks of the 1970s.

Real estate also proved to be a fantastic inflation hedge, particularly if it was leveraged. The median price of a new home rose from $23,400 in 1970 to $64,600 in 1980. If you had purchased your home with a mortgage before the 1970s, your leveraged return would have been several multiples of that … plus you got to pay back the mortgage in depreciated dollars.

Commercial properties were another winner, as landlords were able to raise their rents to keep pace with inflation. And farmland roughly quadrupled in value in the 1970s.

So, while inflation wreaked havoc on traditional "paper" portfolios, investors who had diversified into hard assets did just fine.

What about the Fed?

Inflation affects the way assets are priced. But it also impacts the underlying fundamentals. Inflation influences Federal Reserve policy, which in turn changes how fast the economy — and corporate earnings — can grow.

The Fed operates under a "dual mandate" from Congress: maximum employment and stable prices. When inflation runs hot, the Fed's playbook is to raise its benchmark federal funds rate to cool demand for borrowing.

Higher policy rates ripple outward into higher mortgage rates, higher corporate borrowing costs, and higher hurdle rates for new business investment. That's not a bug; it's a feature. The Fed is deliberately trying to slow the economy down enough to bring price growth back under control.

In this scenario, Nike (NKE) sells fewer shoes and Starbucks (SBUX) sells fewer lattes. Microsoft (MSFT) and Amazon (AMZN) build fewer data centers, which means Nvidia (NVDA) sells fewer chips. Sales and earnings growth cools, and that slower growth gets translated into lower stock prices.

This is why stocks struggle during inflationary times. Not only are their future earnings discounted more heavily into today's dollars, but the estimates of those future earnings are themselves revised lower.

What's different today for investors and what isn't?

It was a lot harder to diversify in the 1970s. Treasury Inflation-Protected Securities (TIPS) didn't exist until 1997. Commodity and gold ETFs didn't exist until the 2000s. And more exotic investments such as commercial real estate or farmland were too expensive and too complicated for the average investor to buy.

Today, an investor's biggest risk is being overwhelmed by choice. For virtually any inflation-fighting strategy, there are likely a half dozen off-the-shelf ETFs available to choose from.

So, how should we approach this as investors?

Make sure your portfolio is well balanced between stocks, bonds and inflation hedges like gold, commodities or real estate. You don't need to dump your stocks and bonds entirely, but introducing inflation hedges into the mix can reduce your risk and potentially boost your returns.

The beauty of diversification is that you don't have to get it exactly right. Being overweight or underweight by a few percent in any asset class isn't likely to make the difference between a luxurious retirement and total ruin. But having some inflation protection in the portfolio really can make a difference to your long-term returns.

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Welcome to Kiplinger's My First $1 Million series, in which we hear from people who have made $1 million. They're sharing how they did it and what they're doing with it.

This time, we hear from a Boston-based 70-year-old married Realtor who has no plans to retire. She reports shifting to real estate after working in corporate sales and leadership roles for the first 20 years of her career. Her salary over the years has ranged from $18,000 at her first job to six figures with a corporate job.

See our earlier profiles, including a writer in New England, a literacy interventionist in Colorado, a semiretired entrepreneur in Nashville and an events industry CEO in Northern New Jersey. (See all of the profiles here.)

Each profile features one person or couple, who will always be completely anonymous to readers, answering questions to help our readers learn from their experience.

These features are intended to provide a window into how different people build their savings — they're not intended to provide financial advice.

To learn what these millionaires have taught us, check out the articles 5 Key Insights We Learned From 50 Millionaires and 5 Things 50 Millionaires Wish They'd Known Before They Retired.

And to hear more about My First $1 Million, you can check out this podcast with bestselling author and tax attorney Toby Mathis:

The Basics

How did you make your first $1 million?

I bought my first stock at 12 years old and learned about investing from my dad. I had three roommates to help pay the rent back in the '70s. I bought my first home at 21 years old for $47,000 with 20% downpayment help from my dad. By 28, I had bought four rental homes to build wealth.

I actively invested in my company 401(k) over the years.

I made my first million once I switched to being a Realtor. Being self-employed, I learned to max out my self-directed 401(k) — now I put $72,000 a year away in this account. Started contributing in 2009.

My accountant called and said, You can pay $$ to taxes or $ to yourself and start a self-funded 401(k), so I paid myself!

What are you doing with the money?

I've kept it invested in stocks and hired a finance manager, who has helped it grow from my first million.

My goal at the time was $3 million. That was what I had learned from the finance people.

At $3 million and a 4% withdrawal rate, I would have $120,000 per year plus Social Security income.

The Fun Stuff

Did you do anything to celebrate?

No, my goal was $3 million. However, now we take elaborate vacations to celebrate our success.

What is the best part of making $1 million?

I don't worry about finances anymore. I have the money for life expenses that come, vacations and helping our young adult children.

Did your life change?

Yes, it made life a little easier and relaxed. We are able to travel with our family and explore the world.

Does anyone know you're a millionaire?

My family — we talk with the kids and educate them on investing, credit cards, expenses and investing in rental property.

Any plans to retire?

I have not retired — I could. I just enjoy working.

Now I am mentoring others on my team to help them grow and learn about investing and real estate.

Looking Back

Anything you would do differently?

I opened credit cards early on. Now I would give the advice: Do not open credit cards. You just spend money you don't have. Then you pay high interest!

Instead, create buckets and contribute religiously.

What advice would you give to your younger self?

Its easy to get to $1 million if you invest in yourself first and start with your first paycheck.

Build wealth through investing on day one with your job and buying rental property and paying one extra payment on your mortgage every month! (I bought a rental home by buying my home and then trading up but keeping that home as a rental property for the past 30 years.)

Did you read any books that helped you on your journey?

The Millionaire Next Door: The Surprising Secrets of America's Wealthy by Thomas Stanley and William Danko

Did you work with a financial adviser?

I did not work with a financial adviser. I read a lot, talked with friends, and my dad helped give me great advice.

Did anyone help you early on?

I had the great fortune of listening to smart people along the way and asking questions. I had a few people I looked up to.

My mom and dad came from nothing and were very smart. We grew up with very little but were very happy! My parents were very instrumental in teaching us about life, investing and building wealth.

My favorite person was my high school teacher — she had a class on personal finance, and I learned so much about checking accounts, credit cards, investing, unexpected expenses that happen. I was 16, and I'll never forget.

I don't see high schools teaching that. Every week, the class would pretend — we would get a paycheck, and we could do what we wanted, but we had to pay rent, utilities, living expenses, etc.

We had to balance our checking accounts every month. We would get a bill we would have to pay. Maybe we would get a flat tire and have to decide whether to pay for one or whether we had money to pay for four, etc.

It was so great. They would create scenarios — like, you got a bonus, or you got fired, or you got an inheritance. You needed to buy a car, or you'd have unexpected expenses, health bills, etc.

High schools should offer this as a mandatory class!

Looking Ahead

Plans for your next $1 million?

I have built a sizable estate. At this point, we are letting our investments grow.

Any advice for others trying to make their first $1 million?

The first job you get, set up a bucket savings account. Separate your savings accounts: 20% bucket for savings, bucket for investing, bucket for vacations.

Max out your 401(k). If you can put money in a Roth IRA as well, even better.

I took money out of each paycheck and directed dollars off the top so I would not get used to the total paycheck I received. When I would get a raise, I would increase the amount I put away. We tend to get used to our paychecks and enjoy the money, spend on credit cards, etc.

Don't use credit cards — or pay them off every month.

Pay extra every month on your mortgage. They say if you add one extra mortgage payment, it will reduce your mortgage length by seven years on a 30-year mortgage. I do this on every home we have purchased!

Plan to keep your car for at least seven to 10 years. You don't need the latest or fanciest car.

Couples with kids: Start putting $6,000 a year away for your children starting the year they are born and every year after. It will compound and pay for college. If they don't go to college, it will pay for a down payment on their first home or to get started after high school.

Live your life and have fun along the way — don't forget to take vacations.

Don't count on Social Security income — consider that bonus money.

Do you have an estate plan?

We do have an estate plan. We put it in place 20 years ago. We have a revocable trust, will, durable power of attorney, medical, etc.

We also created revocable trusts for our kids when they were in their teens.

What do you wish you'd known …

When you first started saving? I wish I had researched more about the value of compounding. It would have opened my eyes to saving more money. Now I teach my kids about the value of that and the Rule of 72!

When you first started investing? I wish I had known more about ETFs, bonds, etc. I mostly only knew about stocks. I wish I had understood more about the markets. I wish I had thought about investing in an apartment building.

Before you retired? I wish someone had a clear explanation on life when you retire instead of having to DIY.

Anything you'd like to add?

I grew up poor/middle class and now have an eight-figure estate from being curious and asking questions about investments and real estate. We have built our wealth through saving and investing in the stock market and rental homes!

If you have made $1 million or more and would like to be anonymously featured in a future My First $1 Million profile, please fill out and submit this Google Form or send an email to MyFirstMillion@futurenet.com to receive the questions. We welcome all stories that add up to $1 million or more in your accounts, although we will use discretion in which stories we choose to publish, to ensure we share a diversity of experiences. We also might want to verify that you really do have $1 million. Your answers may be edited for clarity.

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Your 70th birthday is a major milestone in your life. 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 up 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 be approaching 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 and 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 fairly 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. Then, put the amount you've allocated for travel and hobbies in 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 of 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 ahead 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 importantly, 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 actually 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, according to Anderson. "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 protections 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, Certified Elder Law Attorney and retirement planner practicing in Virginia, Maryland, and DC.

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

• Enable transaction alerts on your bank and brokerage accounts so you can catch suspicious activity promptly.
• Set up multi-factor authentication on all of 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 taking action.
• 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 now and make sure the person you name has the integrity and capacity to take on that responsibility.
• Be cautious about adding family members as joints 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 may have been enough to simply name a beneficiary or have a general plan for how your assets would be split up 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 actually splurge on vacations or start embracing all of the hobbies and experiences you promised yourself you would enjoy once you retired, know that a lot of retirees struggle with that same anxiety.

But, 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 above 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 you planned for:

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

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

Instead, I have 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. In fact, the highest CD rates are now outpacing many of the best high-yield savings account 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 are 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 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 may be worth considering, such as a six-month or one-year CD.

This achieves several objectives: One, you won't have your money tied up for long. Two, 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 also be in a prime position to capitalize.

A move like this 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.

And if you have a large sum of money to move (think $100,000 or more), a jumbo CD may 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 this one factor.

Make sure to 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 may 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 may 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 may 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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Raising financially literate children requires intentionality. By making financial literacy a regular part of family life, parents can empower their kids to make informed, responsible financial decisions that will benefit them throughout their lives.

And that attitude helps your kids — and yourself — throughout all phases of raising children.

First, starting a family — maybe in your 20s or 30s — means a shift in both your lifestyle and your finances, but it also means that you are responsible for teaching your children good financial hygiene and money habits.

Later, your 40s often bring a unique blend of increased responsibilities and high earning potential, and you might find yourself balancing the financial and emotional needs of growing children with your own financial planning goals.

Finally, as your children approach their teen and young adulthood years, it is important that you set them up for success in college and beyond by building on earlier lessons.

Here are specific ideas for each stage.

Start talking to them about money when they're young

Start early and normalize talking about money. Begin as early as when they are 5 years old. Introduce age-appropriate financial activities that help them understand the value of money and how to manage it.

Making "money memories" with your kids is one way to educate them about financial responsibility while having fun: Giving them a piggy bank to learn about saving, practicing budgeting on family outings and celebrating savings wins are a few ways to teach kids about money, and they can also create positive memories.

Today's kids may never carry as much physical cash as adults, but they still need to understand the value of every dollar. Whether money lives in a wallet or on a phone, the habits of saving, spending intentionally and planning never change.

To help children recognize that continuity, openly discuss financial decisions and share your household budgeting process in simple terms.

Later, this foundation will help as children reach their teen years. You can encourage them to track their spending habits and get a part-time job or step into a small entrepreneurial venture.

Just like any skill, practicing good financial habits over time makes children more adept at managing money as they grow older.

Go digital, but don't ignore physical cash

I send my preteen daughter's allowance through Apple Pay because that is most likely how she'll interact with money as she gets older. It is important for her to learn how to make digital payments and manage her account in a world that continues to move toward "tap" or "double click" to pay.

This also teaches her independence and empowers her to make her own money decisions — and potentially money mistakes. I would rather have her make a $20 purchase that she regrets at age 12, than a $20,000 mistake when she's 22.

While embracing digital tools, I also intentionally use physical cash to teach my daughter about other financial concepts. We talk about where cash comes from and how to count it, and we take physical money to the bank to deposit into her savings account.

I want her to understand that the numbers on the screen in her Apple Wallet represent real dollars, and I want her to be comfortable managing her money both ways.

Teach them about trade-offs

Teens — like all of us — need to understand that every financial decision involves a trade-off. Spending money on one thing means that money won't be available for something else.

For example, buying the latest gaming console might mean saving less for a car, college or future experiences. This concept helps them prioritize and understand the long-term implications of their choices.

Help teens learn to resist the bombardment of messages promoting instant gratification and luxury, often amplified through social media. Help them differentiate between needs and wants, understand the true cost of things (including the impact of debt) and resist the pressure to keep up with trends.

Encourage them to use critical thinking about advertising and social media influencers and emphasize that a healthy money mindset often comes from smart choices and delayed gratification, not just outward displays of wealth.

If they're working, consider helping them open a Roth IRA to teach them about investing early. You should also discuss responsible credit use before they get their first credit card.

Don't stop when they get to college

The goal isn't to raise a child who can balance a checkbook — it's to raise a young adult who feels confident making financial decisions. That confidence comes from hundreds of small conversations and real-life experiences over many years, not one big lesson.

College provides a perfect context for in-depth discussions, both when saving and spending. It's never too early, or too late, to start saving for college.

If you anticipate that your child will contribute to the costs of their higher education, that's something to discuss earlier rather than later. That way, as they grow up, they'll have a full understanding of the plan.

Raising financially savvy children is more important than ever in today's fast-paced, digital world. Teaching your kids about the value of money and how to manage it responsibly can have a lasting impact on their future success.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Equifax has agreed to create a $100 million settlement fund over allegations that a coding error caused it to send inaccurate credit scores to lenders in 2022. Roughly 4 million people could be covered by the settlement.

Claims aren't open yet. The proposed settlement still needs final court approval, with a hearing scheduled for January 22, 2027. If approved, eligible consumers will receive information about how to submit a claim for payment.

Equifax has denied wrongdoing, and the settlement does not constitute an admission of liability. Here's what to know about the proposed settlement, who may qualify and what happens next.

What happened with Equifax credit scores?

According to DiCello Levitt, one of the law firms representing consumers in the case, Equifax misreported lower credit scores for about 4 million people who applied for mortgages, auto loans or credit cards between March 17 and April 6, 2022. The coding error resulted in some lenders receiving inaccurate credit scores.

That matters because lenders use credit scores when deciding whether to approve applications and what interest rates and terms to offer. The lawsuit alleges that some applicants were denied credit, charged higher interest rates or otherwise received less favorable terms because of the incorrect scores.

Equifax has maintained that most scores didn't change substantially. The company previously said fewer than 300,000 people experienced a score change of 25 points or more, according to ConsumerAffairs.

Who could qualify for the Equifax settlement?

About 4 million people are estimated to be included in the settlement class. The settlement covers consumers whose credit scores were inaccurately reported because of the coding error.

You may want to pay particular attention to the settlement if you applied for credit during the affected period, including a:

• Mortgage
• Auto loan
• Credit card
• Other credit product

This may be especially relevant if you were unexpectedly denied credit, received a higher interest rate or were offered less favorable terms. However, simply applying for credit during the affected period doesn't necessarily mean you're eligible for a payment.

More information about eligibility and the claims process is expected as the settlement moves toward final approval. We’ll update this story as new details, including how to file a claim, become available.

How much money could you receive?

The proposed settlement creates a $100 million fund that will be used to make payments to people who submit valid claims. However, no individual payment amount has been announced.

How much each person receives will depend on factors including the number of valid claims submitted and how much money remains after court-approved legal fees, administrative costs and other expenses are deducted.

The settlement fund is non-reversionary, meaning money left over from the claims process won't be returned to Equifax.

Can you file an Equifax settlement claim yet?

No. Those affected can't file a claim for the Equifax settlement yet. The proposed settlement has received preliminary approval. This means the case can move forward, but claims aren't open and no payments are being distributed yet.

Once the court approves the settlement notice, people covered by the settlement are expected to have 90 days to submit a valid claim. More information about how to file, eligibility requirements and important deadlines should be provided as the settlement moves forward.

A final fairness hearing is scheduled for Jan. 22, 2027. At that hearing, the court will consider whether to grant final approval to the settlement.

In the meantime, be cautious of emails, texts or websites claiming they can get you an Equifax settlement payment now. Don't pay anyone to file, secure or expedite a claim on your behalf.

What should you do now?

Since claims aren't open yet, there's nothing you need to file right now. However, if you applied for credit during the affected period, it's worth holding on to any records you still have from that application, particularly documents showing a denial, interest rate or other terms you were offered.

Keep an eye out for an official settlement notice with information about eligibility, deadlines and how to submit a claim. Be cautious of unexpected emails or texts promising an immediate payment, especially if you're asked to pay a fee or provide sensitive financial information.

A credit score is only one part of your financial picture

Your credit score can influence the rates and terms you're offered when you borrow, but it's only one piece of your overall financial health. A financial adviser can help you look at the bigger picture, from managing debt and building savings to planning for retirement and other long-term goals.

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

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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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By now, the fall tuition bill has landed, and for a lot of families the numbers don't close the way they used to. That isn't your imagination.

The federal borrowing caps that took effect on July 1 set a ceiling on Parent PLUS for the first time at $20,000 a year and $65,000 over the life of a student.

They also ended Grad PLUS for new borrowers. The loan that quietly filled whatever grants and federal aid left behind now runs out sooner.

Private lending is already a $140 billion market, about 8% of all student debt, according to industry data from Enterval. Analysts expect private loan volume to climb sharply this year as families move to cover the difference.

So here you are, maybe taking out a private loan for the first time, with a payment deadline days away. The textbook advice was to shop these loans back in May or June. That window has closed, but the situation isn't an emergency yet. Private loans have no fixed federal deadline and can still disburse into the fall term.

What you can't afford is to let the clock stampede you into the first offer that clears the bill. A little thought now will save you years of paying for a rushed choice.

First, make sure you have hit the federal ceiling

Before you sign anything private, confirm you have used every available federal dollar, because federal loans offer protections, such as income-driven repayment, forgiveness programs and deferment options, that private lenders rarely match.

Understanding these benefits helps families weigh the true cost and safety of each option.

Review each step deliberately. Make sure the student has accepted their full federal loan amount first. Then look at what Parent PLUS still allows under the new caps, because even a capped PLUS loan keeps federal features that a private loan might not offer.

A private loan should only fill the gap that remains. Borrow that figure, not a dollar more. A federal-versus-private loan comparison (like the one on CollegeLens, the website that I founded) can help you confirm you're filling a real gap rather than replacing cheaper, safer money.

Get a fixed rate unless you have a specific reason not to

A variable rate will almost always look cheaper on the day you apply. That is the point of it, and it is also the trap. A rate advertised at 3.99% variable can climb to 8% or 9% if benchmark rates rise, and this is a loan you may be repaying for a decade or more.

A fixed rate locks in your cost for the life of the loan. For a bill you're financing over many years, the certainty is worth more than a low teaser number. Unless you plan to pay the loan off fast and can absorb a jump, fixed is the safer call.

Understand what a cosigner really signs up for

Most students need a cosigner to qualify, and most cosigners don't fully register what they're agreeing to. If you cosign for your child, you're not vouching for them. You're equally on the hook. The debt shows up on your credit report; a missed payment is a missed payment, and it can sit on your record for years.

You're also not unusual in needing one. Cosigners are the norm in this market, not the exception. Industry data from Enterval shows cosigner rates have remained above 85% every year since 2009.

In the most recently reported quarter, more than 94% of newly originated private loans carried a cosigner, including almost 97% of undergraduate loans. If a lender is willing to lend to your student at all, it is usually because someone with established credit is standing behind the loan.

This is where the fine print earns its keep. Look for a cosigner release — the provision that lets you come off the loan once the student has made a stretch of on-time payments, often around 12 months, and can qualify on their own.

Some lenders offer it, and others don't; the terms vary widely. If two offers are close on rate, the one with a clean, achievable cosigner release is the better loan.

The trade you are actually making

It is helpful to understand what you give up when moving from federal to private loans, especially since private loans typically lack income-driven repayment options. Payments do not flex with income drops, and deferment or forbearance are limited and lender-specific.

Knowing these limitations can make you feel more cautious and prepared to weigh the risks involved.

None of that makes a private loan a bad choice. For a family with strong credit, it can be a perfectly reasonable way to close a real gap, and the rate can even beat a federal loan in some cases.

The point is to go in knowing the trade rather than discovering it later. If you have read my earlier columns, you will recognize the theme: The mistake is rarely the loan itself. It is borrowing on autopilot because you were busy.

Here's a short checklist for before you sign:

• Confirm the student has accepted all federal loans first, then measure the true remaining gap.
• Borrow only that gap. Resist rounding up for a cushion you will pay interest on for years.
• Choose a fixed rate unless you have a concrete plan to pay it off quickly.
• Compare at least two or three lenders on rate, fees and cosigner release, not just the first approval.
• Read the deferment and forbearance terms so you know your options if income drops.

The bigger picture

The federal safety net for college borrowing shrank this summer, and the private market is stepping into the gap it left. That isn't automatically bad news, but it does shift more of the responsibility onto you to shop well.

The deadline on your desk is real. It is also the exact moment a lender's job gets easier, and yours gets harder.

So slow down by one notch, even now. Fill the gap you actually have, lock in a rate you can live with, protect whoever is cosigning, and know the protections you are trading away.

Do that and a private loan becomes a deliberate piece of a plan instead of the thing you grabbed because the bill was due on Friday.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

For generations, philanthropy has measured itself by generosity: How much money went out the door. Maybe it's time to measure something else: How long the impact lasts.

America's foundations have made a difference. They've funded hospitals, kept food banks stocked and propped up communities through hard years.

But too often, "success" still means dollars distributed rather than lives genuinely changed. A grant can ease a crisis this month. It rarely creates the conditions that let a family or a neighborhood stand on its own two feet next year.

Sometimes, without meaning to, it does the opposite: It funds the same need again and again instead of solving it.

The need for philanthropic investment

Every industry hits a point where the old playbook stops working. Philanthropy is there now. The problems facing communities have changed shape over the past few decades; the tools built to fight them mostly haven't. Funding yesterday's solution for today's problem rarely produces tomorrow's opportunity.

The world has moved on. Entrepreneurship is everywhere. Venture capital turns raw ideas into real companies at a pace that would have seemed absurd 50 years ago. Yet most institutional giving still runs on a model built for an earlier era, one designed to meet needs rather than build capacity. That deserves a second look.

Today's problems call for something more ambitious than charity alone: Philanthropic investment. Foundations acting less like check-writers and more like long-term partners, backing entrepreneurs, community leaders and organizations capable of creating opportunity that outlives the grant.

The goal shouldn't be to make people better at receiving help. It should be to help them stop needing it.

Americans gave an estimated $593 billion to charity in 2024, up 6.3% from the year before, or about 3.3% after inflation, according to Giving.org.

Private foundations alone distributed nearly $110 billion. And because most private foundations are subject to annual distribution requirements tied to roughly 5% of certain assets, that number only grows as endowments do.

The real question isn't whether philanthropy has the resources to make a dent. It clearly does. The question is whether those resources are being spent to fix things, or just to keep fixing the same thing.

A new playbook for private foundations

My years at the JPMorgan Chase Foundation taught me something simple: Capitalism creates opportunity only when capital actually moves. A neighborhood doesn't build lasting prosperity while its most promising entrepreneurs stay chronically underfunded.

That means foundations need to step outside their comfort zones, trading some of the risk aversion of traditional grantmaking for the instincts of an angel investor.

Zero-interest loans, recoverable capital, and patient, mission-driven investment are three methods. Money that comes back and gets reinvested, again and again, doing more good the second and third time around than a one-time grant ever could.

Picture a foundation less like a donor and more like a convener pulling together business leaders, entrepreneurs, schools, nonprofits and local officials around one goal: Durable local prosperity, not just relief from the latest hardship.

We don't have to guess at what this looks like in practice. A few foundations have already written the playbook. The Kauffman Foundation has spent decades investing in entrepreneurship and expanding access to economic opportunity.

Miami tells a similar story: The Knight Foundation helped turn it into one of the fastest-growing startup hubs in the country, not through blind check-writing but through smart, sustained bets on entrepreneurs, civic institutions and the organizations around them.

In both cases, the money was never the point. It was the ecosystem it built: Businesses, investors, schools, nonprofits and local leaders all pulling in the same direction.

Philanthropy's next chapter

The lesson here is worth sitting with: Philanthropy does its best work as a catalyst, not a benefactor. Bring the right partners to the table, absorb some of the early risk nobody else wants to touch, and back ideas with real staying power. Suddenly a foundation's reach extends well past its own checkbook.

What you get isn't just healthier nonprofits. You get local economies that keep generating opportunity long after the original investment is a distant memory.

Venture investors know most bets won't pay off, but the ones that do can create jobs, spin up new supply chains and lift an entire community in the process.

Philanthropy can borrow that same long game, just with a different scoreboard: Not equity value, but economic mobility, business formation, household income and community resilience.

No single foundation can pull this off solo. The real opportunity lies in public-private partnerships, where philanthropic capital pairs with business expertise, government resources and entrepreneurial energy. Together, they can build something no one player could fund alone.

Philanthropy's next chapter shouldn't only be about doing charity better. It should be about needing less of it. Every dollar that funds a small business, seeds an entrepreneur or builds real capacity in a community is a dollar that starts working on its own, creating jobs, generating tax revenue and funding the next idea.

That's not a smaller vision for philanthropy. It's a bigger one.

The foundations that figure this out first won't just write the biggest checks of their era. They'll build the playbook every foundation after them has to reckon with. The ones that don't will keep measuring success in dollars out the door, long after everyone else has moved on to measuring what those dollars actually built.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

If you had school-aged children or grandchildren in your care during the pandemic, COVID-19 was that nightmare none of us fully woke up from, leaving this haunting question: "What did these past several years — a tsunami of doubt and contradictions — do to our children?"

While, historically, it has been virtually impossible to sue a school district for educational negligence ­— for example, graduating kids from high school who are functionally illiterate — COVID opened the floodgates, leading to multimillion-dollar class action settlements across the country to pay for remedial tutoring in basic subjects.

But money alone can't answer those questions that most of us had, and might still have, such as:

• Was it really necessary to shut down the schools, depriving our kids of not only education, but the development of important social and life skills?
• Was the virus really a fatal risk to young children?

The release of Dr. Anthony Fauci's pandemic diaries could not have come at a better time for many of these issues to be reexamined. In 2020, when the pandemic began, Fauci was director of the National Institute of Allergy and Infectious Disease.

As Southern California pediatrician Dr. Stanley Calderwood asks in his book, COVID-19, Children and the Lasting Impact: A Parent's Guide to the Global Pandemic, published in July, "Did the pandemic response truly protect children, and how can we do better next time?"

Mass of confusing messages

"There was a mass of confusing messages we all heard about the COVID-19 virus and efforts to find treatments and a vaccine," Calderwood noted during our Zoom interview. "But little attention was paid to educating the public in the basic biology of what we were facing — how a virus, like COVID, can infect someone merely if you stand next to them."

His book takes us through a mini course in Infectious Diseases 101. He has a unique ability to break down the science behind what makes us sick and how our bodies are equipped to fight a never-ending war against unseen enemies — and how the science of vaccination has saved so many.

Vaccination helped win the Revolutionary War

And speaking of war, did you know that it was science — yes, science — that played a significant role in our Revolutionary War? "It wasn't only the military brilliance of George Washington that helped to achieve independence," the author pointed out, "but something that took great courage off the battlefield to assure victory on the battlefield.

"A distrust of vaccination developed during the COVID crisis, but most people are completely unaware that in the winter of 1775, George Washington faced two enemies — the British army and smallpox, which had a mortality rate of 30%.

"An early form of vaccination, known as 'variolation,' while controversial, was proven to be effective in preventing the deadly respiratory aspects of the disease. Washington ordered this be administered to recruits who never had smallpox and quarantined those who were infected.

"During the spring offensive, his troops were healthy and encountered little resistance from the British, many of whom were too sick to fight, giving the Continental Army its first significant victory."

Was it necessary to shutter the schools — and the country?

Who can forget the panicked shutdown of human activity during COVID, "as a way, it was thought, of stopping the disease and fatalities. This was flawed reasoning," the author notes. "Several countries did not go into lockdown — Japan, Taiwan, Sweden, for example — and were not worse off for it, as we see in retrospect."

Calderwood's pediatric practice remained open throughout COVID. He and his colleagues gathered a great amount of data on the frequency of infection and symptoms in children, and he draws on more than 30 years of clinical experience in his examination of the virus and the public health response to it.

"The results were striking. Half of the children who tested positive were asymptomatic. They reported no symptoms and had normal vital signs. Almost all the remaining children had only mild or moderate illness, typically recovering within seven to 10 days.

Researchers and physicians across the globe have substantiated these findings. The majority of children with COVID-19 are asymptomatic or have mild disease.

Why do children not become as ill as adults?

Calderwood spends a great deal of time in his book explaining how an infection spreads and tells us why children did not become so ill: "COVID-19 gains entry into cells by binding to the ACE-2 receptor cells on their surface. In children, there are relatively few ACE-2 receptors, significantly limiting the virus' ability to establish serious infection.

"Early in the pandemic, many pediatric infectious specialists understood this and were very cautious about voicing opinions that contradicted the prevailing narrative, afraid to tell it like it was, that COVID-19 would not be a serious infection for children."

Education and the family

Calderwood is most eloquent when he looks at what the lockdown did to children at critical stages in their social development and academic education.

"There is a window of opportunity where the brain is best able to develop language and math skills. Merely by reopening the schools, things do not pick up where they left off. While a short period of closure to slow the virus may have been warranted, we continue to witness the results of our failure to ask, 'What does shuttering schools do to the students? What does it do to families?'"

Calderwood concluded our interview with this cautionary observation: "COVID-19 illustrated what happens when politics and ideology slam the door to science shut. Society will be tested again."

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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 done everything the system has asked of you.

You were automatically enrolled in your 401(k) on your first day and never opted out. Your contribution rate climbs a little each year — automatically, whether you notice or not — and your money sits in a target-date fund that quietly rebalances while you live life.

On paper, you're a retirement success story — the exact "participant outcome" every employer hopes for and the entire financial services industry is built to produce.

Then the brakes on your car go, the emergency room copay hits, or the rent notice arrives with a number you simply can't cover this month. And you do the very thing you swore you'd never do: You log in and pull money out of the account you know you shouldn't touch.

If that stings a little, it's probably because it's a story about a lot of us.

In 2025, a record 6% of retirement plan participants took a hardship withdrawal from their 401(k), according to Vanguard's latest How America Saves report — the largest share the firm has ever recorded, and up from 5% the year before.

That happened in the very same year account balances climbed 13% and plan participation reached an all-time high of 86%. Read that again.

By those measures, the system looks healthier than ever. So why are more people than ever reaching into their retirement savings early? And how can we help mitigate this?

Hardship withdrawals aren't a discipline problem

The "easy" conclusion is that people simply aren't saving well, or that they lack discipline. I'd argue the opposite. The median hardship withdrawal last year was about $1,900. The two most common reasons were to stop a foreclosure or eviction and to cover a medical bill.

People aren't necessarily draining their retirement accounts for a vacation, a new pool in the backyard or an online shopping spree. They're reaching for the last cushion they have, because every other one is already gone.

That's the real story hiding inside the headlines: The early withdrawal isn't the problem. It's a symptom. The fragility was there long before the withdrawal; this is just where it finally became visible.

The rest of the data agrees. Worker confidence in retiring comfortably fell six points in a single year to 61%, the lowest since 2017, according to the Employee Benefit Research Institute. Fewer than three in five workers say they could handle an emergency expense, while 65% say debt is a problem in their household.

These aren't the numbers of a country that forgot how to save. They're the numbers of a country where paychecks stopped stretching as far as the plan assumed they would.

To be fair, part of the increase is mechanical. It's simply easier to take a hardship withdrawal than it used to be thanks to a 2018 rule change that removed a required step, resulting in less paperwork and fewer hoops to jump through.

Going back to the 6% taking withdrawals, this could mean friction is disappearing, not necessarily that distress is appearing. But that caveat doesn't rescue the overall story. In contrast, it sharpens it.

When someone is facing eviction, unexpected medical bills or a $1,900 shortfall and this is what they reach for first, you're not looking at carelessness. You're looking at a need.

A better way to cope with financial emergencies

If you find yourself eyeing that account in a hard month, instead of asking, "What's wrong with me?", ask some of these questions instead.

Am I measuring the right thing? A growing retirement account balance feels like security, but it's a promise about a life you'll live decades from now. It tells you nothing about your next 30 days.

The fragility lives in the gap between this paycheck and the next surprise, and that gap never shows up on your quarterly retirement account statements.

The number that may better predict whether you'll have to raid it is a different one: How long you could cover the basics if the paychecks stopped tomorrow, using money you can easily reach without touching retirement at all.

Is there anything between me and the next emergency that isn't my retirement account? For a lot of people, honestly, there isn't. But that's not a character flaw — it's the most changeable thing on this list.

A small, separate emergency fund, built however it gets built — a little set aside over time — is often all that stands between an unexpected bill and a withdrawal.

And what would actually make me feel secure, as opposed to just making the balance bigger? Those aren't always the same goal, and noticing the difference is where real security starts.

Rather than focusing too rigidly on standard savings advice, find the number that helps you sleep at night.

To be clear, none of this means the years of saving were pointless. It means retirement readiness and financial security are two different things, and we've spent a long time discussing the first as if it guarantees the second.

If you're doing everything right and still feel like you're one surprise away from it all coming apart, you're not imagining it, and you're not alone — you're paying attention. The account is never the whole picture. The life around it is.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

My parents were born during the Great Depression and understood money down to the penny.

I still have their passbook savings accounts — small booklets filled with handwritten deposits and withdrawals that documented the flow of money through their lives. Every entry is a reminder of a time when financial stewardship was a necessity.

Today's teenagers and young adults live in a very different world. As many prepare to leave for college and manage money on their own, parents are asking important questions: Should they provide a monthly allowance? Encourage a part-time job? Help their children open a credit card?

Many families understandably provide financial support during college — whether for tuition, housing or living expenses. In fact, according to Edelman Financial Engines' What Money Means study, 43% of parents with adult children say they currently provide financial support, including 14% who say they provide a significant amount.

Financial assistance has remained remarkably consistent over the past several years, suggesting this has become a normal part of launching young adults into adulthood.

1. Start with awareness: Help them see how money moves

Most teens and young adults experience money only at the moment of spending. They tap a card, and the story ends there. But financial maturity begins with understanding how money actually flows into, out of and through our lives.

One good way to illustrate the value of money is to encourage them to track their spending — ideally for a month. The point is not to judge their choices — it's to help them see patterns.

If they are earning a paycheck, walk them through it. Show them the difference between gross and net pay, how taxes work and why payroll deductions matter. For students who take on a campus job, reviewing a paycheck can be an eye-opening lesson.

Understanding why take-home pay is less than expected — and learning to budget around it — builds practical financial skills.

Another way to teach financial responsibility is to let young adults pay for certain things themselves. Start small with discretionary purchases — the things they really want — and gradually move to necessities.

Whether support comes through a monthly allowance or helps cover larger expenses, establishing clear expectations helps young adults learn to budget while still benefitting from a parent's guidance. This is not about withdrawing support — it is about giving them the dignity of ownership.

2. Teach credit before they need it

College is often the first time young adults are exposed to credit card offers. Before they apply, help them understand the difference between building credit and accumulating debt. Explain how interest works, why paying the balance in full each month matters and how credit utilization affects a credit score.

It's also important to discuss common credit card mistakes, such as making only the minimum payment, carrying a balance month to month, maxing out available credit, missing payments or treating a credit card as an emergency fund.

These habits can lead to costly interest charges, damage credit scores and make it harder to reach future financial goals.

In fact, nearly 60% of Gen Z credit cardholders say they typically make only the minimum payment on at least one credit card, according to a recent LendingTree report.

The survey also found that many cardholders mistakenly believe carrying a balance helps their credit score and rely on credit cards as a substitute for emergency savings.

Relying on minimum payments can become an expensive habit because interest continues to accrue on the remaining balance, making debt more difficult and costly to pay off over time.

When used responsibly, a credit card can be a valuable financial tool. When used carelessly, it can become an expensive lesson.

3. Help them start saving and investing early

If your teen or young adult has income through a job, helping them open a Roth IRA may be one of the most valuable gifts you can give. Even modest contributions to an individual retirement account can be powerful because time — not investment brilliance — is the most valuable asset a young investor possesses.

The goal is not to teach them how to pick winning stocks. Instead, teach them the importance of regularly saving, broad diversification and patience. Show them how a low-cost index fund allows them to become owners of hundreds or even thousands of companies around the world.

More importantly, help them understand the extraordinary power of compounding over decades. A teenager who invests a few thousand dollars today may find that those early contributions may become some of the most valuable dollars they will ever save.

4. Model the behavior you want them to learn

Young adults learn far more from what they observe than from what they are told. One of the most effective ways to teach healthy money habits is to be open about your own experiences with money, including the lessons you've learned along the way.

Whether it's sharing how you paid off debt, recovered from an overspending habit or learned the importance of saving for emergencies, these real-life examples can make financial concepts feel more relatable and achievable.

According to the What Money Means study, 86% of Americans say their parents or upbringing influenced their relationship with money, including 35% who say the influence was major.

Financial responsibility is not learned in a single conversation. When we help young adults understand money, we give them confidence, independence and a foundation for lifelong financial well-being.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

To help you understand the trends surrounding business and technology and what we expect to happen in the future, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts. (Get a free issue of The Kiplinger Letter or subscribe.) You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here's the latest…

Wondering if a piece of writing was generated by artificial intelligence? Anthropic has a solution: Watermarks.

But the company’s recent update is not based on market demands or innovation. It stems from the European Union’s Artificial Intelligence Act. The strict rules prohibit all sorts of conduct and come with a slew of new requirements for AI deemed high-risk. Rules for "high-risk" AI went into effect this month.

Prohibitions on AI systems include "deploying subliminal, manipulative, or deceptive techniques to distort behavior and impair informed decision-making, causing significant harm." AI systems also can’t "[infer] emotions in workplaces or educational institutions, except for medical or safety reasons." And much more.

The EU AI Act’s most severe penalties are fines of up to 7% of global revenue for companies found in violation. It’s sure to make the EU a tougher place for American AI companies to do business. But the impact will be global, as seen by Anthropic rolling out watermarks in all countries, noting that the change is related to the law’s transparency requirements.

Anthropic has detailed how watermarks work, adopting a method developed and already used by Google. The process involves how the AI model chooses specific words and word fragments within the text. Anthropic has a key that involves two lists of words and the text generated must include enough of the words from one list to be statistically significant. The method has limitations, such as not working well on shorter passages and only revealing the "likelihood" of being written by AI.

"Because the watermark is part of the text, it will travel with the text when it’s copied and pasted elsewhere, and may persist through some editing," according to Anthropic. "Watermarking will be applied at the model level, which means it will be present no matter which Claude product or surface the text comes from."

If it’s working well, readers should not notice. "You won’t see it, and it doesn’t change the meaning, quality, or readability of Claude’s response," according to the company. Theoretically, watermarks could help identify AI-generated text anywhere. But the move is likely to stir up concerns about Anthropic’s power over users’ text output and what it means for intellectual property.

Expect Anthropic’s adoption of watermarks to ignite more pushback from the Trump administration, with concerns about thwarting tech innovation and harming U.S. tech giants. President Trump said last month the administration will conduct a formal review to retaliate against the EU’s "discriminatory" digital practices, stemming from another EU digital law that has led to huge fines against U.S. tech giants. The growing backlash will also focus more attention on Google’s use of text watermarks for its AI model Gemini.

With the EU’s AI Act gradually coming into full force and American AI giants working to comply, the U.S. relationship with Europe is only set to get more tense.

This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.

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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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Where you live affects your finances in a myriad of ways. One critical component is how much you pay for car insurance.

Living in a city with higher collision risks can lead to higher insurance premiums, regardless of your personal driving record. This is where Allstate's 2026 Best Drivers Report can shine some light on the safest areas to drive.

The insurer examined the 200 most populous US cities, using insurance claims and Drivewise app data — the app you download to monitor your driving behavior in hopes of a lower rate. These findings show how where you live can affect your insurance rate.

These are the safest cities for drivers

Allstate found that Brownsville, Texas, is the safest city in the US for drivers. Drivers living there only experience a collision once every 15 years. Meanwhile, in Boston, Massachusetts, drivers can experience collisions every 3.76 years. That makes it more than four times less likely you'll crash in Brownsville.

Along with Brownsville, here are the top 10 safest cities for drivers:

• Brownsville, Texas
• Fort Collins, Colorado
• Boise, Idaho
• Laredo, Texas
• Cary, North Carolina
• Madison, Wisconsin
• McAllen, Texas (New to top 10)
• Colorado Springs, Colorado (New to top 10)
• Eugene, Oregon
• Olathe, Kansas

You'll notice a few trends from this list. Not surprisingly, living in a smaller to medium-sized city lowers your risk.

And it isn't just about the sheer number of drivers you encounter on your commutes. Allstate's Drivewise data show that drivers in larger cities such as Miami and Boston tend to use their phones more while driving, resulting in elevated risk.

If you live someplace more collision-prone, check your insurance rate regularly to ensure you have the best deal. Use this Bankrate tool to compare options quickly:

Night driving is also more prevalent in larger cities. Allstate found that driving at night is highest in larger cities, such as Washington, DC, Las Vegas and New York. With nighttime driving come elevated risks such as drowsy driving, hard-to-see road hazards and drunk drivers.

Another trend is regionality. The Northeast is home to seven of the 10 most dangerous driving cities, with three being in Massachusetts (Boston, Springfield and Worcester). Meanwhile, the safest cities were predominantly western, with three in Texas and two in Colorado.

While geography plays a massive role in your insurance costs, it isn't the only factor you can influence. Even if you don't live in one of these top-tier cities, you can still take control of your financial protection.

How to protect your car insurance rate

Industry experts recommend the following tips to keep your policy low while protecting your finances:

• Buy a dash cam: Insurance fraud cases often involve "crash for cash" scams. A dash cam can provide irrefutable evidence to back up your claims. This can protect you financially from higher insurance rates and out-of-pocket expenses resulting from judgments exceeding coverage limits.
• Document everything during an accident: Take pictures of all vehicles involved, property, road conditions and skid marks. This can refute "soft fraud" claims where others might exaggerate damages.
• Be cautious of insurance deals: You'll see social media ads promising ridiculously low prices for insurance coverage. These ghost agents can take your money and cancel your policy without your knowledge, leaving you on the hook for any accidents caused in the meantime.
• Check for specific coverage gaps: Beyond standard liability, check your policy for exclusions. Some carriers won't cover damages animals cause to cars, resulting in thousands in repair bills. So, make sure to read your policy thoroughly and contact your agent with any questions on coverage gaps.

While your city's collision risk is a factor you can't control, your approach to insurance and risk management is in your hands. By staying informed about your coverage and taking proactive steps like installing a dash cam, you protect your wallet, no matter where you drive.

Related content

• These Cities Have the Most Dangerous Drivers — and It Could Cost You
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December has become the default season for financial planning. It's when many investors review taxes, increase retirement contributions, make charitable gifts and rush to complete other planning before the calendar turns.

But it can also be one of the least effective times to make important financial decisions. Schedules are crowded as deadlines are closing in, while advisers, accountants and attorneys may have limited capacity to support.

Instead of rushing through year-end checklists, summer can give you the space and time to think more strategically. By this time of year, you can see how income, spending and investments are tracking, with several months left to make changes while they can still have an impact.

In my experience as a CFP®, that head start often leads to better decisions because families have time to consider trade-offs and adjust gradually.

1. Rebalance your portfolio and review asset location

Even if you haven't made any trades, market performance over time can change your portfolio's risk profile. Strong returns in equities, a particular sector or one concentrated holding can gradually increase risk, leaving the portfolio more aggressive than it was at the beginning of the year.

An end-of-summer review can identify where allocations have drifted and whether new contributions should be directed toward underweight areas. The goal is to ensure that the portfolio still reflects your goals, time horizon and tolerance for risk.

The review can also include asset location, or which investments are held in taxable, tax-deferred and Roth accounts. As markets move and contributions are added, assets may no longer be held tax-efficiently.

Income-producing investments may be better suited to a retirement account, while investments that receive favorable long-term capital gains treatment may fit better in a taxable account.

Liquidity needs, charitable plans, required minimum distributions and estate considerations also matter. Reviewing where assets are held can improve after-tax efficiency without changing the overall strategy.

2. Check your retirement contribution pace

Many employees choose their retirement plan contribution rate at the beginning of the year and rarely revisit it. By summer, however, a raise, bonus or promotion may have changed both cash flow and the contribution needed from each remaining paycheck to reach a retirement savings goal.

Reviewing your retirement strategy in late summer allows time to make smaller adjustments over several months. Waiting until November may require a much larger increase over only a few pay periods.

This is an overlooked aspect of financial planning that has come up often in my client conversations: People assume they are on pace because their contribution percentage has not changed, but soon discover that compensation or payroll changes have left them short.

A summer financial review can also consider a mix of traditional and Roth contributions. Retirees should confirm how much remains to be withdrawn from required minimum distributions and whether qualified charitable distributions fit into their giving plans.

3. Run a tax projection

By the end of the summer, your financial picture is typically much clearer and more comprehensive than it was at the start of the year. Wages, bonuses, business income, investment gains and equity compensation are easier to estimate, making summer an ideal time to determine whether tax withholding or estimated payments need to be adjusted.

A summer tax projection may also reveal valuable planning opportunities, including Roth conversion, gifts of appreciated securities, the timing of stock-option exercises or the use of investment losses to offset realized gains.

Some of these strategies may be better executed later in the year, once the full tax picture is clearer. But reviewing them now allows you to identify your options before year-end deadlines begin to dictate your decisions.

The goal isn't simply to lower this year's tax bill — it's to ensure every tax decision supports your broader long-term objectives without creating avoidable cash-flow constraints.

4. Put cash and debt to work more deliberately

Over time, cash can accumulate without a clear purpose. Conversely, some households may have too little set aside, forcing them to rely on credit or investment sales to cover predictable expenses.

An end-of-summer review can separate money needed for taxes, travel, home improvements or other near-term spending from assets intended for longer-term goals. It is also worth checking whether savings are earning a competitive return.

Borrowers with adjustable-rate loans, home-equity lines or other variable-rate obligations should understand how interest costs are affecting cash flow. Anyone planning a major purchase should consider how new debt would interact with retirement savings and other priorities.

Cash and debt can be managed intentionally rather than carried forward without review.

5. Prepare for employee benefit decisions

Open enrollment often leaves employees with little time to make important choices. Reviewing benefits during the summer creates more time to consider whether health, life and disability coverage still match the household's needs, particularly after a marriage, divorce, new child, home purchase or change in income.

Employees eligible for a health savings account can reassess their contribution pace and consider how the account fits into their broader plan.

Executives may also need to review stock options, restricted stock, deferred compensation or company-stock concentration before election deadlines arrive.

These choices affect taxes, cash flow and investment risk, and deserve more than a rushed year-end review.

6. Review estate documents before there is an emergency

Estate planning is easy to postpone when nothing feels urgent. Summer is a good time to ensure that wills, trusts, powers of attorney, health care directives and beneficiary designations still reflect the family's circumstances and long-term intentions.

Major life events — such as births, deaths, marriages, divorces, moves and significant changes in wealth — may also require updates to your broader financial plan.

For families considering significant gifts, planning should begin well before December, given valuations, legal documents and trust administration often require coordination among several advisers.

In conversations with clients, estate planning reviews often uncover practical issues that have little to do with estate taxes. An outdated beneficiary designation, an unfunded trust or a missing power of attorney can all create complications long before federal estate-tax exposure becomes relevant.

The goal is straightforward: Ensure the right people have the authority to act in an emergency and that your assets will be distributed as intended. Don't wait for an arbitrary year-end deadline to review your plan.

Act earlier to save stress later

Year-end planning will always matter. After all, certain tax, retirement and gifting decisions are tied to the calendar. But I believe that December should not be the first time you review and adjust your financial plan.

By summer, enough information is available to provide a clearer picture of your finances while still leaving enough time to make intentional adjustments without being rushed. Acting earlier can give investors the breathing room they need to make meaningful adjustments.

For many households, the most important question is simple: Has anything changed in the markets, my finances or my life that should change what I do next? Asking that question now — rather than in December — can lead to better decisions and less stress in the year-end.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

We've all done it. You're waiting in line. You see a snack and think, "It's just a few bucks." Or you tap to subscribe because it's only $4.99 a month.

Those tiny decisions feel weightless in the moment. That's the psychology of "just one small purchase" at work.

It shows up everywhere in modern consumer life. From coffee runs and in‑app upgrades to delivery fees and streaming trials. Understanding why small buys feel harmless helps explain why budgets leak even when we think we're being careful.

As a financial professional, I'm here to help you learn how to rise above this mentality.

The psychological drivers behind minimal purchases

Small purchases (or frictionless digital payments) don't slip past our radar by accident. A few well‑studied biases give them cover and make them easier to justify.

The denomination effect. The tendency to treat smaller units of money as easier to spend. Research in the Journal of Consumer Research finds people are more willing to part with smaller bills than a single large bill of the same value, which makes bite‑size buys extra tempting.

Mental accounting. This is a concept popularized by behavioral economist Richard Thaler. We mentally sort money into different buckets (like rent, groceries, fun money, etc.), then treat each bucket as if it's separate.

Our minds treat minor purchases differently from major ones, making people underestimate the impact of small buys.

Marketing cues and the environment. Placement at checkout, limited‑time offers, one‑click payments — these design choices shrink the "pain of paying" and turn a "maybe" into a "yes."

Social comparison also plays a role. We don't shop in a vacuum — we scan what peers are doing and use it as a yardstick.

For instance, blank apparel is often priced affordably, so adding an extra T-shirt or hoodie to your order may seem like a small decision. It's the kind of purchase that's easy to justify because each item doesn't feel expensive.

Combined with limited-time offers or free shipping thresholds, those small additions can quickly become part of the "just one more" mindset.

The slippery slope: How small purchases add up

The tricky part isn't a single latte or one delivery fee. It's the slow drip.