As back-to-school season approaches, your kids may have outgrown their clothes — but they don’t have to outgrow your budget.

Families with children in elementary through high school plan to spend an average of $874.68 on clothing, shoes, school supplies and electronics, according to data from the National Retail Federation. For college students and their families, the expected amount on items for the coming year is an average of $1,364.75.

Here’s how credit cards can cut some of those costs.

1. Rewards

Reward rates vary by type of card, but a decent return for cash-back credit cards might range from 2% back per dollar spent to 5% back on rotating bonus categories. Those rewards can be redeemed for cash or a statement credit to offset school purchases, for example, or applied to future travel.

A credit card that earns cash back generally requires good credit (typically, FICO scores of 690 or higher). A rewards credit card is ideal only if you pay your balance off in full every month to avoid interest charges. Otherwise, the steep interest rates on these cards will cancel out the value of rewards.

You can leverage these kinds of credit cards with purchases already allocated in your budget like gas, certain utilities or groceries, said Barbara Quan, accredited financial counselor and manager of financial education at Golden 1 Credit Union, in an email.

2. Sign-up bonuses

A credit card sign-up bonus can be worth hundreds of dollars if you meet the minimum spending requirement with planned expenses. If you’re seeking a new credit card, it’s one way to potentially defray the costs of back-to-school spending or lessen the costs of other expenses.

“Many cards offer hundreds of dollars in cash back or rewards points after meeting a minimum spending requirement within the first few months,” Quan said. “By strategically timing your back-to-school shopping to coincide with this period, you can earn the bonus while purchasing necessary items like clothes, supplies and electronics.”

Quan suggested doing research to select a card that aligns with your spending patterns and overall financial goals. A budget that outlines projected expenses during the bonus period can also help you track your progress and prevent overspending, she added.

3. Interest-free windows for purchases

Certain gadgets and supplies carry hefty price tags. A rewards credit card with an introductory 0% annual percentage rate can offer breathing room for large purchases. You still have to pay monthly, but you won’t be charged interest during the promotional period.

A word of caution, though: A store credit card may also offer an interest-free promotion that might sound like a true 0% introductory APR, but is actually a deferred interest offer. Typically advertised as “special financing” or “no interest if paid in full,” a deferred interest offer means that interest is postponed but continues accruing in the background, to be applied at a later date if you don’t finish paying off the balance by the deadline.

A deferred interest offer can still be a useful way to finance a purchase, but you’ll need to make absolutely sure you can pay it off on time to avoid owing interest charges retroactive to the time of the original purchase. The ongoing interest rates on these store credit cards can run high, so these charges could be a pricey surprise that derails your finances if you’re not prepared to cover them.

4. Online shopping portals

Multiply your credit card rewards by shopping through the card’s bonus mall or linked offers. For example, a credit card issuer might offer a discount or additional rewards if you use that card to shop with select merchants.

Before you hit the stores in person or online, browse your credit card offers by logging into your account. If you find some money-saving opportunities, map out a plan that maximizes the value of your purchases.

5. Credits

A few credit cards may offer credits for streaming services, meal plan subscriptions, grocery or restaurant delivery services, or other useful options that could save money or simplify the transition back to school. As you adjust to a new schedule, such a credit could potentially save you money on a music subscription for the car ride to school, or a meal prep service that gives you some time back.

Look up your credit card online or log into your account to see whether it provides any helpful credits.

Melissa Lambarena writes for NerdWallet. Email: mlambarena@nerdwallet.com. Twitter: @LissaLambarena.

The article 5 Ways Credit Cards Can Offer a Break on Back-to-School Purchases originally appeared on NerdWallet.

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

The term “self-care” might conjure images of relaxing bubble baths or massages. But true self-care encompasses your finances, too.

“Self-care is about taking care of yourself so you can look better, feel better and be prepared for the future,” says Stacy Miller, a certified financial planner and founder of BayView Financial Planning in Tampa, Florida. “Financial self-care is an aspect of that. You’re giving your bank accounts a facial.”

Money experts say financial self-care starts with looking at your current money practices, then continues toward developing a solid plan for the future. And just like a skincare routine, everyone’s approach looks a little different.

Reflect on your past

Taking time to consider your “money story,” or how you grew up thinking about money, can be a good place to start, says Lindsey Konchar, a financial therapist in Minnesota. “Were your parents open about it? Were you taught anything about money?” she suggests asking yourself.

From there, you can try to shift the way you talk to yourself about money, such as by moving from an attitude of “I am bad with money” to “I am learning about money and am excited to be on this new financial self-care journey,” Konchar adds.

Mykail James, a financial educator in Washington, D.C., known to her social media followers as “the Boujie Budgeter,” says cultivating a sense of gratitude can also be beneficial. “Affirmations can help overcome negative thought patterns,” she says. She suggests ones such as, “I deserve the money I receive for work” or “I am worthy of being financially secure.”

(Kimberly Palmer shares how she practices financial self-care.)

Let your goals inform your habits

James likes to pick a few specific goals to focus on at any one time and then brainstorm about how to achieve them. For example, she likes to scroll through million-dollar home listings posted online and then calculate how much she would need to earn to be able to afford one. “That kind of thought experiment helps me formulate my goals,” she says.

Taking tangible steps toward your goals helps reduce stress and worry, says Robert Stromberg, a CFP and founder of Mountain River Financial in Abington, Pennsylvania. Since goals vary so much by person, those steps also differ, but they often start with a close review of your overall financial picture, including current spending and saving behavior.

Track spending

Budgeting apps can assist with that kind of financial review, says Maggie Klokkenga, a CFP and financial planner at Abundo Wealth in Morton, Illinois. “The first step is to just track your expenses. It’s like stepping on the scale. No one wants to look at it, but then you can become aware of your numbers,” she says.

Getting “financially naked” in that way can inspire some shifts in your spending to better align with your goals, she adds. Using apps that automatically sort your spending into different categories and flag subscriptions or unusually high amounts can also help.

“When people are aware of their numbers and start to take action with intention, they feel more in control,” Klokkenga says.

Ramp up savings

Stromberg notes that “the vast majority of clients I work with are under-saving.” He suggests prioritizing an emergency fund, which ideally holds three to six months’ worth of expenses, as well as saving for any known large expenses, such as a new car.

Being aggressive about savings “gives people a tremendous amount of comfort,” he says, because you know you are prepared for different scenarios. Keeping the money in a high-yield savings account insured by the Federal Deposit Insurance Corp. allows it to continue to grow until you need it.

Save what you can, even if it’s less than the recommended amount, James recommends. “Saving a little money is better than no money, so start wherever you are, and you can always grow it over time,” she says.

Automating your savings so a certain amount is transferred from your checking account or paycheck into your high-yield savings account each month can reduce stress, Konchar says. Anything you can do to reduce the mental load of managing your money allows you to spend that mental energy on other things, she says.

Take advantage of employee benefits

Contributing money to an employer-sponsored retirement plan like a 401(k); funding tax-advantaged flexible spending accounts for health care and child care expenses; and signing up for any other employee benefits like disability and life insurance can also contribute to your overall financial self-care, says Kevin Keller, CEO at CFP Board, a financial planner association.

“Consumers can enjoy life today and feel more comfortable, knowing they are on track to achieve their life goals,” he says.

Any good self-care routine also involves smaller daily pleasures, too, which is why James suggests giving yourself some kind of reward, such as a leisurely walk or an ice cream, after working on your finances. “Positive reinforcement gets people to continue to do something good,” she says.

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

The article 5 Ways to Practice Financial Self-Care originally appeared on NerdWallet.

Whether you have done it before or you’re new to the process, applying for a small-business loan can be frustrating and difficult to navigate. In the Federal Reserve’s 2023 Small-Business Credit Survey, over half of business owners who reported feeling discouraged from applying for funding cited lender requirements as the reason. With large banks in particular, a difficult application process was one of the top challenges borrowers faced, second only to high interest rates.

To help shed light on the process, we spoke with two small-business lending professionals — who together have nearly four decades of experience working with small businesses — about the funding process, what lenders are looking for and how business owners can approach lenders.

Responses have been edited for length and clarity. Learn more about each lender after the questions.

What components of a business’s financials do lenders look at?

Alexis Dishman (small business chief lending officer at Community Reinvestment Fund): Each small-business lender will vary, but many will look at the last several years of revenue to get a sense of how the business has performed. For example, is revenue going up? If not, is there a reason for the decline? A lender may use this information to evaluate growth projections for the business to ensure that they’re achievable and ultimately support the repayment of the potential loan.

Underwriters also often look at net income and losses and try to understand the drivers behind each measurement.

How does underwriting for business loans differ from personal loans?

Samuel Fuentes (loan officer at InterBank): Business loans use debt service coverage ratio (DSCR) that is calculated as an annual number to see if a deal will cash flow (if a business has enough cash to support the loan). Consumer loans use debt-to-income ratio (DTI) that is calculated as a monthly number to see if a deal will cash flow. This is because some businesses might be cyclical and a monthly calculation would be misleading for the business’s overall cash flow.

Why do lenders look at personal tax returns or income for a business loan?

Alexis Dishman: Underwriters will often look at personal tax returns to make sure income from the business isn’t funding a borrower’s lifestyle beyond the salary they take. Tax returns also help the lender identify any additional sources of income that could support the business, which could help improve chances of approval.

Should businesses expect to sign a personal guarantee?

Alexis Dishman: Personal guarantees are pretty typical with small-business loans because the owner is an integral part of the business’s success. As a lender it’s our way of asking them to stick in there with us. I kind of look at it sometimes as moral support, but it’s really them putting their name behind the loan because we’re partners in the transaction.

Samuel Fuentes: Yes, InterBank does require personal guarantees. For two reasons mainly. One, so there is a second source of repayment. Two, so that the owner has skin in the game. A business owner who isn’t willing to sign on the dotted line with their business raises character issue questions.

What can small-business owners do to prepare themselves to apply for funding?

Samuel Fuentes: They should start talking to their lender and accountant about their plans to borrow. The team a business owner has around them should be connected and be able to help each other understand what the other needs to help the client succeed.

Don’t be afraid to ask if you don’t understand what the lender asks of you, or if you don’t know how to fill something out.

What are some common mistakes that applicants make?

Alexis Dishman: One common mistake that applicants make when applying for a loan is not being upfront about past challenges, such as personal credit blemishes or business downturns. These aren’t always enjoyable topics to discuss, but being transparent with the lender is always a good idea.

It may seem counterintuitive, but by discussing past challenges with a lender, an entrepreneur may be able to highlight how they overcame these obstacles and better positioned their business for success in the long-term as a result.

Samuel Fuentes: Many applicants don’t fill out their personal financial statement fully or correctly. This creates questions when it comes to figuring out the strength of the guarantor.

Some applicants try to turn in just portions of their tax returns or even try to send in transcripts only. The banks need the full complete tax returns to work loans.

What are some common reasons loan applications get denied?

Alexis Dishman: In some cases an applicant may not have sufficient operating cash flow to make loan payments or lack the collateral required. In other cases, a loan may be denied simply because an applicant didn’t complete the loan application. Before applying for a loan it’s important to understand the lender’s parameters.

Samuel Fuentes: Number one would be credit issues (current collections, past dues, etc.) with no explanation. Two would be cash flow (applicants don’t have the income to support the loan request). Three, the collateral isn’t sufficient to cover the loan request.

What do you recommend as next steps for applicants who are denied?

Alexis Dishman: If a loan is declined, I would recommend scheduling a meeting with the lender to discuss the reasons why. Once the applicant is able to understand the reasons for the declined loan, seek a technical assistance provider or business advisory service to provide assistance with making changes to the application or business framework that will make future applications successful.

Samuel Fuentes: It depends on the denial reason. If it’s a credit issue, I tell them to work on paying things off or catching up before coming back for a loan. If it’s cash flow, I tell them to meet with their accountant to discuss the business owner’s goals of borrowing, and find ways to increase write-offs that are add-backs, or discuss ways to find money for a down payment.

There are no quick fixes though — most of these solutions will push business owners at least to the following year for a loan.

What’s your advice for a business that doesn’t meet the criteria but still needs funding?

Alexis Dishman: I would suggest researching other lenders that the applicant’s business profile may better align with such as community development financial institutions (CDFIs) or crowdfunding.

Samuel Fuentes: There are several alternative lending institutions and alternative ways to raise capital. CDFIs, hard money loans, private money loans, or sell equity in the company (ownership stake). These are just a few examples.

More about the lenders

Alexis Dishman is the small business chief lending officer at Community Reinvestment Fund (CRF), a nonprofit CDFI that aims to equalize economic opportunities by working with businesses that are typically denied capital access. She oversees all small-business lending at CRF and has previously worked at Bank of America and Comerica Bank.

Samuel Fuentes is a loan officer with InterBank, a community bank with offices in Oklahoma and Texas. He has worked previously at Bank of America, Chase and TruFund Financial Services Inc., a CDFI.

Olivia Chen writes for NerdWallet. Email: ochen@nerdwallet.com.

The article Small-Business Lenders Share an Inside Look at the Loan Process originally appeared on NerdWallet.

Mary Williams, 52, says she is the first in her family to go to college. After an earlier stint at Brooklyn’s Medgar Evers College, she re-enrolled in 2020 to continue an associate degree program in childhood special education. Originally from Trinidad, she aims to eventually earn her master’s degree.

“I want to finish what I started,” says Williams, who takes night classes after her full-time day job working with special needs children. She also wants to show her daughter, now 22 and attending college herself, the importance of higher education — “doing something to better yourself, enhance your career.”

Williams is among the one-third of college undergraduate students who are at least 25 years old, according to a 2023 White House report. Her story, like millions of others, is a contrast to typical college narratives focused on the youngest adults — ages 18-24 — many of whom go directly from high school to college.

Generally, college students 25 and older are described as “adult learners.” But the term can also encompass younger students who are financially independent from their parents and whose primary identity is shaped by something other than being a student — for example, being a parent, a worker or a veteran, says Becky Klein-Collins, vice president of Research and Impact at the Council for Adult and Experiential Learning and author of the book Never Too Late: The Adult Student’s Guide to College.

“These are students for whom it’s not always an option to go to a four-year residential college. Oftentimes, they can’t just drop their family or their work or their financial obligations to go to school,” Klein-Collins says. “They have to find ways to make school fit around where they are at as this person, at this time in their life.”

If you can find a program that fits into your life and budget, it can pay off. Adults who graduate from college at 25 or older experience “substantial” earnings premiums, with the sharpest gains going to students who were at least 30 years old at graduation, according to a February 2024 report published by the Brookings Institution, a nonprofit think tank.

“It’s never too late to go to college, but it’s not for everybody,” says Moshe Buchinsky, an economics professor at Sciences Po in Paris and a co-author of the report.

From tips to finding the right school to financial aid and scholarships, here’s what you should know before you go to college as an adult learner, according to experts and students who’ve been in your shoes.

Consider your post-college goals

Your first step should be self-reflection. Think about what type of degree or credential you want, what you want to get out of your college experience and how much you’re willing to go into debt for it, says Klein-Collins. “You don’t want to get three-quarters down the road and realize, ‘Oh, I’m in the wrong major,’ or, ‘this is not going to lead me to the job that I need’.”

The U.S. Bureau of Labor Statistics’ database can help you gauge the salary potential of different careers. If you were previously enrolled in college, check with that school’s registrar’s office to see how many credits you’ve already earned and how many you still need to finish your degree.

Reflecting on your motivations can help you stay positive if challenges arise during your college journey, says Terah Crews, CEO of ReUp Education, a company that offers personalized support and coaching to adult learners.

Your motivations might not be tied solely to career outcomes. For example, Alexander Foreman, a 28-year-old working towards his bachelor’s degree in chemical engineering at Western Michigan University in Kalamazoo, has clearly defined both career and life goals after graduation.

Foreman aims to work for a company that promotes renewable energy resources. Beyond that, he says, “I really just want to enjoy life, I don’t want to just survive it … I really want to give myself what I never had growing up, which was a sense of financial freedom, a sense of security in my home, a capacity to do the things that I love and a capacity to spend time with the people that I love.”

Research colleges that support adult learners

Look for a college that values who you are at this stage in your life, says Klein-Collins. These schools may offer flexible class schedules, academic coaching, academic credit for past work or military service, free admissions applications and clear career pathways. Some colleges, like those in the public City University of New York system, even offer on-campus child care to support student-parents.

A local community or technical college may be a great fit. These institutions are “designed specifically for people who are trying to juggle work and learning, and they’re often the most affordable option,” Klein-Collins says. “They also offer lots of short-term, professional or occupation-oriented programs that are often very state of the art, and really focused on the hybrid occupations of today’s labor market.” Nearly 44% of community college students are at least 25 years old, the 2023 White House report found.

However, if you’ve completed some college, the best path is likely back to your original institution, Crews says. You can usually pick up where you left off, which can save you money and time.

Tap into scholarships, grants, tuition benefits and other ‘gift aid’

Though a college degree can increase your earning potential, try to minimize college costs by tapping into financial aid, including “gift aid” — grants and scholarships that you don’t have to repay.

“Make sure that you’re finding options that are affordable, that you are not taking on too much loan debt, and if (debt) is your only option, keep asking questions,” Klein-Collins says. “Keep looking for other opportunities until you find something that’s going to work for you. If not, it’s probably not worth it to go so far into debt that it ends up affecting your ability to support your family down the road.”

You must fill out and submit the Free Application for Federal Student Aid (FAFSA) to qualify for most types of financial aid, including federal student loans and the need-based Pell Grant, which can give you up to $7,395 per year.

Working adults should check if they qualify for tuition benefits from their employer, Klein-Collins says. Military education benefits, like the G.I. Bill, can also help cover college expenses for service members, veterans and their dependents and spouses.

Some states, colleges and private organizations offer scholarships intended for adult learners, or for students with specific life experiences like parenting or military service. State grants, in particular, are often underused, Crews says. Here are some examples of state financial aid programs designed for adult students:

• Alabama’s (Re)Engage program. Grants for students age 25 and up who’ve been out of school for at least two years.
• Colorado’s Finish What You Started program. Financial and academic support for students re-enrolling in college.
• Indiana’s Adult Student Grant. Grants of up to $2,000 for working adults in college.
• New Jersey’s Garden State Guarantee. Free or discounted tuition for students in their third or fourth year of a bachelor’s degree program.
• Michigan’s Reconnect program. Free or discounted community college tuition for students age 21 and up.
• Ohio’s College Comeback Compact. Up to $5,000 in student debt forgiveness for students who re-enroll at a public Ohio institution.
• Massachusetts’s MassReconnect program. Free community college for students age 25 and up.

Many adult learners — like Williams — work through college. Among undergraduates ages 16-64, about 40% of full-time students and 74% of part-time students work while taking classes, according to a 2022 report by the National Center for Education Statistics. Earning money while studying can help you manage college costs.

After you maximize grants and scholarships, student loans can cover remaining bills. Prioritize federal student loans, which offer flexible repayment options and borrower protections. Private student loans should be used as a last resort to fill in any funding gaps.

If you previously took out student loans but left school before earning your degree (and the income and career boost that can come with it), finishing that degree is almost always the best financial move, says Crews. “Until you complete the degree, you’ve got the [debt] burden without the uplift.”

Negotiate financial aid offers

You may also be able to negotiate for more financial aid or to restore aid that you previously lost. Foreman says he lost his original financial aid package in 2018 after Western Michigan dismissed him for poor academic performance. He spent time off working to save money and wrote a financial aid appeal letter to the school with the help of his ReUp coach, which led to his aid being reinstated.

That restored aid package, along with student loans and savings he built working during his time off, made it possible for Foreman to re-enroll as a full-time student. He’s on track to graduate with his bachelor’s degree in the spring of 2025.

Bring any questions about your financial aid package to your prospective college’s financial aid office. And if you previously tapped into financial aid to pay for college, ask if that could impact what you’re eligible for today.

Klein-Collins adds: “You should never fully commit to enrollment before you have had those conversations, and they shouldn’t expect you to.”

Lean on your support network

Both Williams and Foreman emphasize the importance of a support network as they navigate college. Whether it’s from family, friends, classmates, neighbors, partners, a religious community or college advisors, a support network can cheer you on and help you manage the logistics of going back to school.

This may be especially true for the nearly 1 in 4 undergraduates who are parents, according to a 2023 data compiled by the Urban Institute, a nonprofit think-tank based in Washington, D.C. Williams says she waited until her daughter was older to go back to school and relied on her husband to help with child care. “You go to school, you come home, you’re tired,” Williams says. “I’m not going to lie to anybody. It’s very challenging. It’s very challenging.”

Organizations focused on adult learners, like ReUp, can also be part of your support network. ReUp pairs students with coaches who help them navigate college — at no cost to the student.

“I understand how overwhelming and how daunting [going back to college] can be,” says Foreman, who credits his ReUp coach for helping him get back to school. “If there’s one thing I could recommend, it sounds so simple, but honestly, just believe in yourself, take your time and ask for help.”

Even with support, you’ll be your own biggest advocate in the classroom.

“Don’t assume that you’re going to be the oldest person in the room and also recognize that you have a lot to contribute,” Klein-Collins says. “You have the benefit of your work and life experiences that you’re bringing to that classroom, and that’s an asset for the learning of everybody.”

Eliza Haverstock writes for NerdWallet. Email: ehaverstock@nerdwallet.com. Twitter: @elizahaverstock.

The article Considering College at 25+? Here’s What To Know Before You Enroll originally appeared on NerdWallet.

By now, the higher cost of goods and services may have prompted you to consider using buy now, pay later plans, credit cards or other options to cover everyday expenses. These options can be easy to turn to in a time of need, but doing so frequently could indicate trouble ahead.

If that’s your circumstance, you’ll want to have a plan long before your well of credit runs dry. By exploring community resources or seeking the help of experts, you may come up with a better solution that won’t derail your finances.

Here are some actions that can lessen reliance on credit for essential purchases.

1. Refresh your budget

Review debit and credit card statements to take note of all expenses, including debts. Look for opportunities to eliminate unnecessary purchases or switch to less costly alternatives, and explore options to lower interest rates on those debts. Contributing to an emergency fund — even just a little at a time, if you can spare it — can further prevent reliance on credit.

If these steps seem overwhelming or you need assistance, a credit counselor at an accredited nonprofit credit counseling agency can help.

“They can make recommendations on a line-item-by-line-item basis that can help consumers close their budget gaps,” says Barry Coleman, vice president of program management and education at the National Foundation for Credit Counseling, a nonprofit that provides assistance.

A credit counselor can also evaluate whether you qualify for a debt management plan that can consolidate eligible debts into a single payment with a lower interest rate, for a fee. With good enough credit, another option might be to use a balance transfer credit card, which lets you move high-interest debt onto a card with a 0% introductory APR for a certain period of time. Look for one that has no annual fee and a balance transfer fee of 3% or lower. Such fees are worth paying if they can save you money on interest over time.

2. Seek savings on food

If your income means you’re ineligible for assistance through federal or state-funded programs, you may still qualify for help through food banks or pantries. Some may have requirements, but they are typically for people who need help accessing food or a savings option that can offset the costs of other bills.

“We’ve heard from people facing hunger that increased prices for food, utility bills, child care and housing costs have exceeded their paychecks,” said Linda Nageotte, president and chief operating officer at Feeding America, a nonprofit hunger relief organization, in an email. “This causes households to make impossible choices about which expenses they can cover, and which they cannot.”

You can find a food bank or pantry through an online search or Feeding America’s online directory, or by contacting 211 to get free assistance from United Way’s trained staff. United Way is a global nonprofit that addresses needs in communities by connecting people to resources. The organization’s staff can offer details about hours of operation for food banks or pantries, any requirements, available bus stops nearby or possible delivery options to your door in certain regions if you lack transportation. A credit counselor — if you’re using one for your finances — may also be able to alert you about local resources.

Some food pantries provide boxes with food, and some allow you to come in and grocery shop, says Heather Black, vice president of 211 system strategy at United Way Worldwide. Resources may not always be available or they may be limited, but it’s worth exploring what’s possible in your area.

Other ways to find food resources are through an online search for grocery store outlets, salvage stores or food rescue apps from supermarkets or restaurants. An app like Too Good To Go, for instance, offers food from restaurants at discounted prices in some cities if you’re willing to be flexible on the items.

3. Explore ways to lower the cost of bills

Comparison-shop for better prices, negotiate on the cost of bills when possible or seek assistance to bring down your costs. If they are available, United Way’s 211 may also direct you to resources that lower the cost of some bills.

Other actions that can make a difference include switching internet, cable, streaming or cell phone providers. And when it comes to saving on utilities, using LED light bulbs and programmable thermostats can help, as can fixing water leaks and simply turning off lights when leaving the room, according to Coleman.

4. Reduce transportation costs

If you drive a car, consider these tactics to lower costs:

• Compare the cost of using public transportation to the cost of owning or leasing a car.
• Shop around for better rates on auto insurance, ask about potential discounts, consider bundling insurance for added savings, or reduce unnecessary coverage on an older vehicle if it makes financial sense.
• Carpool with others to save on gas.

5. Make a lifestyle change

If you’ve exhausted other options and money is still lacking, making a larger change to supplement your income can put you in a better position to avoid relying on credit. Potential changes may include seeking a raise, getting a new job or side job, taking on a roommate or a different option that works for you.

Melissa Lambarena writes for NerdWallet. Email: mlambarena@nerdwallet.com. Twitter: @LissaLambarena.

The article 5 Ways to Avoid Relying on Credit for Everyday Purchases originally appeared on NerdWallet.

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

What do fishing, air pollution and Bitcoin have in common? Maybe just one thing: Until recently, they were all regulated by a powerful legal doctrine known as Chevron deference.

But in late June, a fishing-related Supreme Court case, Loper Bright Enterprises v. Raimondo, brought an end to Chevron deference. Experts say the decision could cause substantial changes to financial rules — especially when it comes to cryptocurrency. Here’s what investors should know.

What was Chevron deference?

The term “Chevron deference” comes from a 1984 Supreme Court case, Chevron U.S.A. Inc. v. Natural Resources Defense Council Inc. That case hinged on whether the Environmental Protection Agency (EPA) was allowed to modify factory emissions regulations that were derived from a broadly worded air pollution law.

The court upheld the modified regulations, creating a “Chevron doctrine” under which judges had to defer to the expertise of federal agencies such as the EPA when those agencies issued, changed or enforced regulations based on ambiguous laws.

Jeff Sovern, a professor of consumer law at the University of Maryland Carey School of Law, summarizes Chevron deference this way:

“Congress writes statutes, and they can’t predict everything. No one can. So they leave gaps; they’re human. Somebody has to fill in those gaps. And under Chevron, if there were gaps, it was largely up to the administrative agencies,” Sovern says.

Over the past 40 years, Chevron deference has been used in over 19,000 federal court cases, and Congress has passed broadly worded laws with the expectation that Chevron deference would allow agencies to interpret them into specific regulations.

But on June 28, the Supreme Court ruled against a federal agency regulation on fishing boats in Loper Bright Enterprises v. Raimondo, bringing Chevron deference to an end. Federal agencies no longer have the power to enforce regulations based on their interpretations of ambiguous laws. They can only regulate when their rulemaking powers are explicitly defined by law, either by Congress or by a federal judge.

Financial regulations could loosen

Chevron deference was a load-bearing legal principle in many federal regulations, and its disappearance has the potential to roll back a variety of financial rules.

Sovern says that the full impact of Loper Bright on financial regulations is unclear. Some agencies, such as the Consumer Financial Protection Bureau (CFPB), have congressionally defined powers to make “appropriate” rules, and those rules might still hold up in court post-Loper Bright.

But that might not always be the case. For example, a federal judge in Texas has already referenced Loper Bright in an order that could potentially overturn the Federal Trade Commission’s recent ban on noncompete agreements.

According to Alex Alben, a professor at the UCLA School of Law and former chief privacy officer for the state of Washington, cryptocurrency is another area of financial regulation that could see a lot of changes because of Loper Bright.

“In cases such as the regulation of cryptocurrencies, where there are very few laws, and there are even very few agency interpretations — in those fields, we’ve definitely seen a power shift from the agencies to the courts,” Alben says.

Crypto rulemaking is up to Congress now

Congress has passed laws regarding the taxation of cryptocurrency, and it has debated several bills that would explicitly define a regulatory framework for digital assets.

Some cryptocurrency experts say that crypto can still be regulated post-Loper Bright; Congress just has to pass laws clearly defining those regulations.

“It creates an obligation for Congress to create actual rules that apply to this industry and pass new laws for a new technology. So it makes it more of a political issue than a bureaucratic one,” says Alexander Blume, CEO of Two Prime, a digital asset-focused registered investment advisor.

Blume says that in the short term, Loper Bright may turn the tide in favor of crypto companies in certain regulatory situations. For example, Uniswap, a developer of decentralized crypto exchange software, is facing legal action from the SEC, which regards it as an unregistered securities exchange and broker that may be violating federal securities laws.

The SEC has indicated that it may press charges against Uniswap, which has been the subject of class action lawsuits by investors who have lost money buying scam tokens on its software.

But last week, Uniswap’s legal counsel sent an open letter to the agency questioning its jurisdiction in the matter, in light of Loper Bright and the lack of clear laws that apply securities regulations to cryptocurrency.

For investors, buyer beware could be the new normal

“I see positives and negatives of this ruling, with respect to financial markets. I think we will have more innovation and more creativity in financial markets,” Alben says.

Many crypto investors are anticipating the approval of Ethereum exchange-traded funds (ETFs) as soon as this month. Blume says Loper Bright could mean that staking (an interest-like reward system by which Ethereum holders earn new Ether coins over time) could be added to crypto ETFs “sooner rather than later,” although the current crop of Ethereum ETF candidates doesn’t have staking features for SEC compliance reasons.

The end of Chevron deference is “an anti-regulation ruling by the court,” Alben says. Less regulation may give investors more choice in what kinds of investments they can buy — but it also may leave investors more vulnerable to losing their money on potentially fraudulent or otherwise inadvisable investments.

“We’re probably going to have riskier environments for investors, who will need to educate themselves about the levels of risk that they’re taking, and do their homework before they make any kind of speculative investment,” Alben says.

The author owned Bitcoin at the time of publication.

Sam Taube writes for NerdWallet. Email: staube@nerdwallet.com. Twitter: @samuel_taube.

The article The End of Chevron Deference Is a ‘Power Shift’ for Investors originally appeared on NerdWallet.

Hawaii isn’t known as a cheap destination, but if you’re set on visiting the Aloha state, choosing the right island can make a big difference in the cost of your trip. If you’re looking to save on a trip to Hawaii, head to the island of Oahu.

Of the four main Hawaiian islands for tourism — Oahu, Maui, Kauai and the Big Island — Oahu is the cheapest Hawaiian island to visit by multiple metrics. Oahu has the lowest daily average hotel room rate of the islands and the lowest average daily spending per tourist, according to May 2024 data from the Hawai‘i Tourism Authority.

The cost of hotel rooms on Oahu

Though the average room rate in May 2024 across all of Hawaii was $342, Oahu hotel rooms average about 21% less, coming in at $272. That translates to about $70 per night less than the average.

In a breakdown of average daily room rates in May 2024 by island, Oahu shines.

One reason for Oahu’s lowest average room rate? The island also has the biggest supply. In fact, Oahu had more than double the number of hotel room nights than Maui, the next closest contender.

Even when broken down by hotel class, Oahu still has the most affordable room rates across every level, from economy and midscale to luxury options.

Midscale and economy rooms in Oahu cost $151 per night on average. That’s 30% less than the average price for the same class of room across the entire state. And if you have a penchant for the finer things in life, you’ll save on Oahu, too. In fact, you could save about $223 per night by choosing to vacation at a luxury hotel in Oahu versus Maui.

Oahu, like other islands, offers opportunities to book stays using hotel points and credit card rewards. For example, Oahu is the only island with a Hampton Inn & Suites outpost, a midscale brand where you can redeem Hilton Honors points — and avoid pesky resort fees on award bookings.

One of Oahu’s most famous luxury hotels, the historic Moana Surfrider, a Westin Resort & Spa, Waikiki Beach, can be booked using Marriott Bonvoy points. Those can be earned through Marriott credit cards as well as general travel credit cards that accrue points that transfer to Marriott.

On the other side of the island sits another famous property, Turtle Bay Resort. The luxury hotel will soon become a Marriott property when it’s rebranded as The Ritz-Carlton O‘ahu, Turtle Bay in August 2024.

The cost of activities on Oahu

More goes into a vacation budget than just a hotel. There’s food, tours, ground transportation and souvenirs. And once again, travelers arriving by air spend less per day on Oahu than any other island.

Across all trip expenditures (including lodging), Oahu is the best bargain in average daily spending per person in May 2024, according to a separate study by the Hawai’i Tourism Authority.

So why is spending on Oahu lower than on other islands? Not only are there more hotels, but also more restaurants and other types of businesses. According to the latest U.S. Census Bureau data, Honolulu County in Oahu had more than 21,000 businesses in 2020, while Maui County in Maui had fewer than 5,000. The increased competition lowers prices for consumers.

There’s also just a lot of free and cheap stuff to do on Oahu. Many of the top activities — including visiting the Pearl Harbor National Memorial, lounging on Waikiki Beach and hiking the Makapuʻu Point Lighthouse Trail — are free. It costs just $5 per person to enter Diamond Head State Monument (though it’s an additional $10 for parking).

And because of Honolulu’s robust bus network and walkability, it’s easy to get around Honolulu without a rental car. For places more difficult to get to, it’s possible to rent a car for just a day or rely on rideshare services like Uber or Lyft.

There are plenty of ways to save on a Hawaiian vacation. Start by finding affordable flights to Hawaii’s cheapest island, Oahu. The higher concentration of hotels and businesses means more affordable options.

Sally French writes for NerdWallet. Email: sfrench@nerdwallet.com. Twitter: @SAFmedia.

The article What’s the Cheapest Hawaiian Island to Visit? originally appeared on NerdWallet.

Despite the prevalence of TikTok videos and recent articles detailing stories of individual college graduates struggling to find good jobs, the data tells a different story.

After all, the overall labor market is stronger than it’s been in decades. And Zoomers who recently graduated from college are certainly better off, in most respects, than previous generations of new grads.

“If you’re a recent college grad, right now things aren’t booming with opportunities like they were a couple years ago,” says Nick Bunker, economic research director for North America at Indeed Hiring Lab. “But it’s still really a relatively solid labor market. And hopefully, fingers crossed, the market stays strong for a couple years. And that gives you more opportunity to find a job as opposed to hanging your hat for the first six months after you graduate.”

When you compare the labor markets faced by Zoomers with previous generations, recent college grads now are better off than their older counterparts: Zoomer grads are earning much higher salaries today than Gen X did in the mid-1990s. Inflation may eat away at Gen Z’s high wages, but it doesn’t touch the stagflation of the 1970s and 1980s that baby boomer college graduates encountered.

The short recession that Gen Z experienced at the start of the pandemic is certainly no Great Recession, which technically lasted less than two years, but was followed by several years of tepid economic growth. That period stymied recent millennial graduates during crucial early employment years and is likely to negatively impact their lifetime earnings.

“It’s not just the year that you graduate,” says Bunker. “Your first years out probably make the most difference because that’s when you’re getting your foot on the career ladder.”

Gen Z bounced back fast

Despite the fact that the oldest cohort of Zoomers — 2020 grads — entered a job market with the highest unemployment rate in the modern era, that recession lasted just two months. And what followed was one of the strongest economic bounce backs ever.

The nation’s unemployment rate has hovered between 3.4% and 4% since December 2021. The current rate, 4.1%, remains among the lowest in 50 years, which means Zoomer college graduates have strong prospects for getting jobs right out of school and moving up the career ladder.

Bunker says the job market has cooled compared with two years ago. There is far less competition among employers than in 2022, which means fewer opportunities, according to Bunker. But it’s not all that dramatic in the broader context.

“If we wind the clock a little bit more and compare to what we saw pre-pandemic, it’s around those levels,” Bunker says. He adds that when compared with previous cohorts of graduates, job opportunities are roughly in line with those enjoyed by millennials who completed college in the early 2000s.

Gen Z’s unemployment outlier

Even with all of the positive aspects of the current labor market, there’s still a unique trend among recent Gen Z graduates that earlier generations haven’t faced: an unemployment rate that’s higher than overall unemployment.

It’s a particular quirk seen when you parse unemployment data among recent graduates over the past 30 years. The unemployment rate as of March 2024 for recent graduates was 4.7% — a full percentage point higher than the overall unemployment rate at that time, 3.7%.

This is an unusual development. Before 2018, the unemployment rate among recent grads was almost always lower than overall unemployment, due to strong employer demand for highly educated workers.

The reversal is likely because there’s been a surge in demand for non-college-educated service workers since the pandemic.

Underemployment is still high among recent grads

Labor data shows that underemployment — the rate of those with college degrees who are working jobs that don’t require degrees — has always been higher among recent graduates compared with all bachelor’s degree holders.

“They go ahead and get that college degree and then they can’t get on a career track that uses that education,” says Elise Gould, senior economist at the Economic Policy Institute (EPI), a nonpartisan think tank.

It doesn’t help that certain job sectors have become more crowded. Majoring in computer science, for example, doesn’t guarantee a job anymore as tech companies pull back from hiring.

Underemployment among computer science majors is higher than those who study health-related programs, education or engineering, according to a February 2024 report by The Burning Glass Institute, a labor market analytics firm, and Strada Education Foundation. But fewer computer science majors are underemployed when compared with those who study social sciences, psychology, humanities and business management.

As of March 2024, some 40% of recent graduates are working in jobs that don’t require a degree versus 33% of all college graduates, according to data from the Federal Reserve Bank of New York.

Salaries for recent grads have spiked

Gen Z college graduates can expect higher-than-ever salaries when they enter the job market: The typical recent college graduate with a four-year degree can anticipate a salary of around $62,609, according to an analysis of employer job postings and third-party data sources by ZipRecruiter, a job posting site. That roughly matches the Federal Reserve Bank of New York’s finding of $60,000 as the median annual wage for a recent graduate with a bachelor’s degree.

As the chart below shows, current median salaries are above those held by earlier generations of newly minted graduates when adjusted for inflation.

Even though salaries are at a peak for recent grads, the latest cohort might not be earning what they expect: A survey released by Real Estate Witch, a housing market research and review site, found 2023 graduates expected to make around $85,000 at their first job and the minimum salary they said they would accept is around $73,000. However, Real Estate Witch found that the average starting salary for a recent grad is about $56,000.

“If you’re a young person graduating now, maybe the differential between what you expected and what reality is, is quite large,” says Bunker.

It’s also possible that wage growth for young new hires may have plateaued as the momentum in the overall labor market that was pushing wages higher has now slowed, says Liv Wang, senior data scientist at ADP Research Institute, which measures workforce data. “If we look at ages from 23 to 26 — that includes a lot of recent grads — and the median hourly base pay for them is like $17, and that per-hour has been little changed since June 2022,” says Wang, citing recent ADP data.

Still, as Gould points out, young workers are disproportionately lower-wage workers — even if they have a college degree.

Gen Z grads do face economic and employment uncertainty

Today’s college graduates heading into the workforce aren’t free from economic challenges. They’re dealing with elevated inflation that eats away at their wages. And when you earn less — as most young workers do — higher costs take a bigger bite. In recent years, the cost of housing has skyrocketed, especially for renters, while health insurance and car ownership have both grown more expensive. And, Gould says, like generations before, young workers fresh out of college who have student loan debt will carry an additional burden.

Salaries, overall, may be higher than ever, but it varies based on your degree. And there are still persistent gender and racial inequities to earnings, Gould points out.

But once again, the data shows it is still a pretty good time to be a college graduate and, in general, to have a degree.

It still pays to get a college degree

Those with college degrees remain more likely to be employed than workers in the same age group, ages 22 to 27, according to an analysis of U.S. Census Bureau data from the Federal Reserve Bank of New York. Even an associate degree or professional certificate can give young workers a leg up, as many areas of the country are facing a shortage of middle-skills labor.

In March 2024 the unemployment rate for recent college grads — those ages 22 to 27 — was 4.7% compared with 6.2% for all young workers in the same age group.

Anna Helhoski writes for NerdWallet. Email: anna@nerdwallet.com. Twitter: @AnnaHelhoski.

The article Actually, the Job Market Isn’t So Bad for Gen Z College Grads originally appeared on NerdWallet.

The year is 2034. Gen Z, now ages 22 to 37, is enjoying its waning years of cultural relevance before brands focus their marketing on Generation Alpha. We still don’t have jetpacks.

But what we will still have are credit cards — only they might not resemble the ones we use now. After all, a decade or two makes a lot of difference when it comes to payment technology. Within the past 15 years or so, we’ve witnessed the rise of digital wallets. At the same time, physical credit cards evolved from having magnetic stripes to EMV chips to contactless tap-to-pay capabilities. Financial technology companies continue to threaten the dominance traditional banks enjoyed for, in some cases, more than 200 years.

“There’s been a lot of good progress, but there’s still substantially more that can be done,” says Brian Muse-McKenney, chief revenue officer of E6, a financial infrastructure provider.

Here are some ways credit cards are evolving for the next generation.

All paths will begin with your phone

If it’s your habit to check for your phone, wallet and keys before leaving home, that list of essentials is going to get shorter.

According to the J.D. Power 2024 Digital Wallet Satisfaction Study, 48% of U.S. consumers used a digital wallet in the past 90 days. Eventually, digital wallets will render physical credit and debit cards obsolete. (Consider, for example, Visa’s “one credential” plan, announced earlier this year.)

And it’s not just payment methods. Loyalty program cards, event tickets, transportation passes and even ID cards can be stored on mobile devices now. Some hotels even offer digital room keys, allowing you to unlock doors with your phone.

For now, though, merchant acceptance is one issue that’s slowing adoption — just 57% of small businesses currently accept digital wallets, per J.D. Power.

Despite this, Gen Z is embracing this technology, some members more boldly than others — 10.3% “rarely or never” carry a physical wallet at all when leaving the house. That’s according to Digital Wallets: Beyond Financial Transactions, a June 2024 report from PYMNTS Intelligence, a global data and analytics platform, in collaboration with Google Wallet.

Buy now, pay later will (continue to) thrive

The concept of paying for a purchase in installments isn’t new, but modern buy now, pay later plans continue to grow in popularity. There’s no hard credit check required, and many plans won’t charge interest or fees, or hurt your credit scores, unless you miss a payment.

While 25% of Americans used buy now, pay later in the past 12 months, according to NerdWallet’s 2024 State of Consumer Credit Report, 40% of Gen Z did so during that period. Younger adults are newer to establishing credit, so a payment plan that’s fast, convenient, and not reliant on a long credit history can be appealing.

In addition to third-party buy now, pay later providers, many major credit card issuers offer installment plans for eligible purchases you make with your card. You may be subject to interest or fees, but one benefit is the ability to earn rewards even if you pay off a purchase over time with an installment plan.

Social media will play new and even bigger roles

Gen Z increasingly turns to TikTok and Instagram, not Google, for information about financial products like credit cards. Not every influencer provides accurate answers to money questions, but many do, making social media an educational tool.

It’s also a place of commerce. Influencers partner with brands to market products, and brands can sell to consumers directly from social media platforms. According to Tracking the Digital Payments Takeover: Monetizing Social Media, a 2023 report by PYMNTS and Amazon Web Services, 68% of Gen Z consumers searched for products on social media, and 22% ended up buying something they found this way.

For younger adults and teens, social media won’t be the way to keep up with old friends. It will be a one-stop place to learn, interact with brands, and spend.

Credit cards with ‘training wheels’ will keep rolling out

Establishing credit is important for any young adult who wants to one day qualify for things like travel rewards credit cards or a car loan with a decent interest rate. New products aim to make credit-building simple. Some credit cards evaluate income and cash flow, in addition to credit scores, to extend credit to people who otherwise lack access. Other cards are connected to a funding account, capping your spending limit to what’s in the account and automatically paying bills on time each month.

While cards tied to a funding account aren’t going to teach you how to manage a more traditional credit card later on, Muse-McKenney says they allow users to build credit without taking on as much financial risk.

“I think that’s an area where there’s innovation taking place right now in its early stages,” he says.

Sara Rathner writes for NerdWallet. Email: srathner@nerdwallet.com. Twitter: @sarakrathner.

The article How the Next Generation Will Use Credit Cards originally appeared on NerdWallet.

When you have money questions, sometimes a friendly chat with others in similar situations can spark helpful answers. If you’re a mom, those conversations can take place within moms groups. There are local groups like Utah Money Moms, private Facebook groups for single moms and entrepreneurial moms, and many websites geared toward moms interested in sharing smart saving, spending and earning tips.

These groups exist because there is a demand for them, says Amanda Christensen, founder of Utah Money Moms as well as an accredited financial counselor and extension professor at Utah State University. On the Utah Money Moms site, women can pick up tips on topics such as how to save money, how to discuss finances with a partner and how to trim expenses.

“I created the site in an attempt to make personal finance more approachable for women,” she says, citing the gender wage gap and research that shows fewer women feel confident about finances compared with men.

Groups and resources targeted at moms can be especially helpful, says Maria Bailey, author of “Marketing to Millennial Moms,” because moms benefit from learning from one another, especially when they are facing similar challenges such as juggling child care and other costs of young children.

“We’re seeing a rise of these groups, especially among younger and Gen Z moms, out of a sense of empowerment,” Bailey says, adding that “young moms in particular have a strong sense of self.”

If you’re looking to get helpful information out of a money-oriented moms group, experts offer the following tips.

(Kimberly Palmer shares how she talks about money with other moms.)

Find people with similar challenges

Pamela Horack, a certified financial planner who calls herself “Your Financial Mom,” recommends finding moms who are at similar life stages to you, whether that’s buying diapers or sending kids off to college.

“We’re experiencing the same life events at the same time, and money is a part of that, so it’s really important for women to be able to bounce ideas off of each other,” Horack says. A group of like-minded moms offers a support system of sorts as you navigate day care costs, plan family vacations or manage allowances, she adds.

Moms are also often interested in finding ways to support their families, whether by exploring options to earn extra income or looking for strategic ways to save, Bailey says. “Moms are motivated by finding solutions and nurturing, and talking about money is part of that,” she says.

Emma Johnson, creator of the private Facebook group Millionaire Single Moms and author of “The 50/50 Solution,” says women in her group have shared valuable advice on issues related to divorce and money management for single moms. “I get messages from women all the time that the Facebook group has changed them,” she says.

Share tips on day-to-day life and long-term planning

Moms can have a lot on their financial plates, from the weekly grocery budget to longer-term saving for college and retirement. Horack says the most helpful moms groups cover that entire spectrum of issues.

“Everybody is really worried about budgeting, because if you can’t budget now, then you’re not going to have money for your retirement later,” Horack says, adding that sharing ideas about tracking expenses and trimming costs can be extremely helpful. “Getting your fixed expenses under control is a good strategy; then you can have money available when non-monthly expenses come up,” she says.

Horack also suggests discussing how to teach kids about money, which is another popular parenting topic. Even a discussion about the words you use with kids when discussing money and the subtle messages you may be sending can be a useful conversation, and other moms might have perspectives you hadn’t previously considered.

Watch out for scams or inaccurate information

The proliferation of online moms groups has attracted scam artists, which means anyone seeking camaraderie online needs to be on guard. Johnson warns against interacting with anyone online who asks for your personal information or money.

She says she often has to kick people out of her private Facebook group when they start trying to sell goods or services to members. To keep online groups free from potential scams, Johnson says, you have to actively manage them.

It’s also a good idea to remain skeptical of any advice you see online until you verify it with your own research.

Be inclusive

Sometimes, expanding your group beyond moms can make sense, Christensen notes. She says she’s currently rebranding her “Utah Money Moms” site so it will no longer have “mom” in the name in an effort “to be more inclusive of all women, regardless of their role.”

Many of the most popular topics, including setting financial goals and tracking spending, apply to parents and non-parents alike, which means we can all learn from one another.

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

The article What We Can Learn From ‘Money Moms’ originally appeared on NerdWallet.