When my father died in 1995, he left behind a small life insurance policy that awarded each family member $5,000. It wasn’t much, but it was the best he could do based on the fact that he had cancer. He hadn’t been much of a planner, and hadn’t been good with money, so that $5,000 per person was actually a significant amount.
At the time, I was deep in debt. I had over $20,000 in credit card balances, and was gradually adding more all of the time. If I’d been smart, I would have taken the proceeds from my father’s life insurance and used them to immediately repay $5,000 in debt. But I wasn’t smart.
I used $1,000 to pay off debt (and patted myself on the back for it), but spent the rest on a new computer, software, and accessories. It didn’t take long to realize that this was a dumb decision.
You see, when you receive a windfall, whether it’s a tax refund, an inheritance, a gift, or from any other source, it’s like you’ve been given a second chance. Although you may have made money mistakes in the past, you now have a chance to fix those mistakes (or some of them, anyhow) and start down the path of smart money management.
Related >>How to Spend a Tax Refund
It can be tempting (as I well know) to spend your windfall on toys, trips, and other things that you “deserve,” but doing so will leave you in the same place you were before you received the windfall. And if that place was chained to debt, you’ll be just as unhappy as you’ve always been.
Since my father died, I’ve received a few other small windfalls (and a very large windfall when I sold Get Rich Slowly). With time, I’ve developed a system for handling these situations.
If you receive a chunk of cash, I recommend that you:
Keep 5 percent to treat yourself and your family. Let’s be realistic. If you receive $1,000 or $10,000 or $100,000 unexpectedly, you’re going to want to spend some of it. No problem. But don’t spend all of it. I used to recommend spending 1 percent of a windfall on yourself, but from talking to people, that’s not enough. Now I suggest spending 5 percent on fun. That means $50 of a $1,000 windfall, $500 of a $10,000 windfall, or $5,000 of a $100,000 windfall. Don’t be tempted to spend more!
Pay any taxes due. Depending on the source of your money, you might owe taxes on it at the end of the year. If you forget this fact and spend the money, you can end up in a bind when the taxes come due. Consult a tax professional. If needed, set aside enough to pay your taxes before you do anything else.
Pay off debt. Doing so will generally provide the greatest possible return on your investment (a 20 percent return if your credit cards charge you 20 percent). It’ll also free up cash flow; if you pay off a card with a $50 minimum monthly payment, that’s $50 extra you’ll have available each month. Most of all, repaying debt will relieve the psychological weight you’ve been carrying for so long. Don’t underestimate the feeling of freedom that comes from no longer having creditors.
Fix the things that are broken. After you’ve eliminated any existing debt, use your windfall to repair whatever is broken in your life. Start with your own health. If you’ve been putting off a trip to the dentist or a medical procedure, take care of it. Do the same for your family. Next, fix your car or the roof or the sidewalk. Use this opportunity to patch up the things you’ve been putting off.
Deposit the rest of the money in a safe account. It can be tempting to spend the rest of your windfall on a new motorcycle or new furniture or new house. Don’t do it. Take some time to breathe. After attending to your immediate needs, deposit the remaining money in a new savings account separate from the rest of your bank accounts. Be sure that the account is as difficult to access as possible — no ATM card, no easy transfer to your other accounts, no nothing. (An online savings account is good for this. So is an account at a small, local bank in the next town over.)
Make a wish list. Allow your initial emotion to pass, getting over the urge to spend the money now. Live as you were before. Meanwhile, spend some time learning how far your windfall could go. Most people have unrealistic expectations about how much $10,000 or $100,000 can buy. Resist the temptation to spend the money now, but do run the numbers to see what you could buy.
Related >> Which Online High-Yield Savings Account is Best?
In the end, it’s often best to take the remainder of a large windfall and invest it for growth.
You’ve already repaid your debt and fixed the things that are broken, both of which are methods to spend on your past. You’ve also used 5 percent to treat yourself and your family, which is money spent on your present. The smartest move with the rest of the money is to spend on your future by funneling the funds into an investment account. (If you don’t know how to do this, consult an investment professional.)
When I sold Get Rich Slowly in 2009, I received a large windfall. The old J.D. would have gone crazy with the money. The new, improved model of me was prepared, however, and made measured moves designed to favor long-term happiness over short-term happiness. Yes, I spent some money on new furniture and a trip to Europe. But I also set aside money to pay my taxes (fortunately, I was debt-free by that point) and to fix the problems in my life. (I was 50 pounds overweight in 2009, so I allocated $200 per month to becoming fit.)
Today, the bulk of my windfall still sits in the same place it’s been for the past five years: an investment account. When first I put the money there, I thought I might use it for something in the not-so-distant future. That didn’t happen, and now I’ve had time to get used to the idea that I have a large chunk of money that can act as a sort of “personal insurance.” That cash eases my mind. It helps me sleep easy at night. And that’s more rewarding than spending it on new toys could ever be.
Last Friday’s question about the moral implications of spending prompted a great discussion, as well as a few personal messages. One of those e-mails was from Dave, who wrote with his own ethical dilemma. Instead of looking at the world at large, Dave wants to know how to handle a financial dilemma closer to home: with his own family. Here’s his story:
I read your site though I no longer need it. I did a lot of the things you talk about and was able to retire early because of it. The rest of my family hasn’t been as smart or lucky. My sister is doing okay, I guess, but my brother is in a lot of trouble, and my parents aren’t anywhere near ready for retirement.
My brother and his wife have two kids. They declared bankruptcy a couple of years ago and have tried to make a fresh start. Life has dealt them some bad blows, but they’re doing nothing to protect themselves either. To be honest, I feel like they just set themselves up for trouble. After declaring bankruptcy, they just returned to their former lifestyle and now they’re back in debt again.
I could help my brother but I don’t know if I should. (Plus I don’t know if I even want to, which makes me feel like a jerk.) What if I loan him $10,000 (or give him the money)? That might solve the immediate crisis, but what does it help long term?
My parents have problems too. They don’t spend a lot, I guess, but they hardly have anything saved for retirement, and they should both be retiring in a few years. I think they have maybe $20,000 total in a savings account, and maybe the same in various retirement plans. They don’t spend a lot, but still $40,000 won’t last long.
I guess I’m wondering: What’s my financial obligation to my family? I could bail them out, but I feel like that won’t solve any of the problems. Should I do it anyway? How? I don’t want my brother and his family to be living on the streets and I don’t want to see my parents eating dog food, but I find it difficult to help them when they won’t even help themselves. What are my responsibilities here?
I sympathize with Dave. I’m not as well of as he is, but I sometimes wonder what my obligation to my own family is. Like Dave, I have a brother who has really struggled with his finances over the past few years. Some of this is because bad things have happened to him, but a lot of it stems from his choices. And he just seems to keep making the same poor choices, even when I offer suggestions on how he might help himself.
Family issues like this are a perfect example of how money is more about mind than it is about math. It’s tough to make an objective, logical decision about how to help your brother or your parents. There’s just too much other baggage involved.
In my case, I’m not willing to loan my brother money. Though it sounds harsh, I don’t think he’d ever repay it. (And yes, I know that when you lend money to family and friends, it’s often best to view the loan as a gift instead. I’m not even willing to do that, though.) Plus, I don’t think my brother has actually reached a point where he’s ready to make the changes he needs to in order to take control of his finances. He’d rather spend money he doesn’t have to look like he has it than to cut back for a few years and live with less so that he can have more in the future. In other words, he’s not willing to make sacrifices today in order to have a better tomorrow. And that’s what getting rich slowly is all about.
So, I don’t actually have any constructive advice for Dave. I’m in the same boat, though on a smaller scale. Like Dave, I can’t figure out what my financial obligations are in this situation. Can you?
When your siblings get into financial trouble, what are your responsibilities? What about your parents? Have you bailed out a family member before? How did that work? Can you give tips on what went right, as well as offer suggestions on what you would not do in the future? And if you’ve never had to face a situation like this, how do you think you’d handle it? Help Dave (and me) figure out how we can steer our family in the right direction.
Deciding how much to pay a babysitter can be a difficult task. Many factors should be taken into consideration, such as the age and experience of the babysitter, the number of children being cared for, the length and time of the job, and any special skills or tasks the babysitter may be performing. It may also be helpful to look at what other families in your area typically pay for similar services.
While it’s important to remember that while budget is important, you want to make sure that you are offering fair and competitive compensation for the sitter’s time and responsibilities. At the end of the day, trust your judgment and offer a rate that feels appropriate based on all factors involved. And don’t forget to factor in payment for gas or transportation if necessary! Ultimately, clear communication and mutual respect will go a long way in creating a successful babysitting arrangement for both parties involved.
Here are some general guidelines you can follow to make sure you’re paying a fair wage.
What are the average babysitting rates in 2022?
While rates vary depending on a number of factors, the national average hourly rate for babysitters in the United States in 2022 is $20.57 per hour, according to UrbanSitter.com.
Of course, rates can vary greatly depending on a number of factors, including your geographic location. Families in large metropolitan areas tend to pay higher rates than families in smaller towns or rural areas. Additionally, rates may be higher for overnight or live-in babysitting gigs, as well as for jobs that require special skills or tasks such as learning and educational babysitting, pet care, swimming supervision, or speaking a second language.
Additionally, keep in mind that the average hourly rate is just that – an average. Some families may be willing to pay above the average rate for an exceptional babysitter, while others may be working with a smaller budget and therefore offer a lower rate.
At the end of the day, it’s important to come to an agreement on compensation that feels fair for both parties involved based on all the factors involved in the job.
How do I figure out how much to pay my babysitter?
When trying to determine how much to pay your babysitter, it can be helpful to look at what other families in your area are paying for similar services. Of course, every family has different budget constraints, so you’ll want to tailor your own offer based on what you’re comfortable spending.
In general, you’ll want to consider the age and experience of the babysitter, the number of children being cared for, the length and time of the job, and any special skills or tasks the babysitter may be performing. Keep in mind that rates may be higher for overnight or live-in babysitting gigs, as well as for jobs that require special skills or tasks such as learning and educational babysitting, pet care, swimming supervision, or speaking a second language.
Additionally, with the price of gas, don’t forget to factor in a mileage reimbursement to cover gas or transportation
What do parents look for in a babysitter?
When looking for a babysitter, parents typically want someone who is reliable, mature, and responsible. They want someone who will follow their instructions and be able to take charge in case of an emergency. Additionally, many parents prefer to hire babysitters who have previous experience caring for children, whether through paid jobs or informally through family or friends.
Of course, every family is different, so it’s important to discuss your expectations with potential babysitters before hiring anyone. This way, you can be sure that you’re on the same page and that the babysitter you hire is the right fit for your family.
Looking for a printable babysitter form? Look no further! This form is perfect for parents who want to be sure the babysitter has the information they need to take care of your kids.
Download: Babysitter Form for Parents
What are some tips for negotiating pay with a potential babysitter?
When negotiating pay with a potential babysitter, it’s important, to be honest about your budget and expectations for the job. Be upfront about how much you’re willing to pay, as well as what tasks you’ll need the babysitter to perform. If you have any concerns or special requests, be sure to communicate these as well.
It can also be helpful to ask the babysitter what their rate is, as this will give you a starting point for negotiation. Remember that the average hourly rate for babysitters in the United States in 2022 is $20.57 per hour, so you’ll want to make sure you’re offering a competitive wage.
While we are all about pinching pennies here, at the end of the day, it’s important to come to an agreement on compensation that feels fair for both parties involved based on all the factors involved in the job.
Other Factors to Consider When Setting Your Rates for Child Care
How Old is the Babysitter?
The age of the babysitter is one important factor to consider when setting your rates. In general, older and more experienced babysitters will charge more per hour than those who are younger or just starting out.
However, it’s also important to remember that age doesn’t always equal experience. Some teenagers may have years of experience caring for children, while some adults may be new to the babysitting scene. It’s important to consider all qualifications when determining how much to pay your babysitter.
The Experience of the Babysitter
As we mentioned before, age isn’t the only thing to consider when it comes to experience. Some teenagers may have years of experience caring for children, while some adults may be new to the babysitting scene. It’s important to consider both age and experience when determining how much to pay your babysitter.
There’s a difference in experience, both in life skills and taking care of kids, between a neighbor’s teenage daughter and someone who has watched kids for years and is CPR and first-aid certified.
If you want to be sure that your children are in good hands, you may want to consider hiring a babysitter who has years of experience. These babysitters typically charge more per hour because they’re considered to be more reliable.
The Number of Children Being Cared For
Another factor to consider when setting your rates is the number of children being cared for. In general, the more children there are, the higher the hourly rate will be. This is because childcare providers have to divide their time and attention between multiple children, which can be challenging.
If you have more than one child, you may also want to consider hiring a babysitter who has experience caring for multiple children at once. This way, you can be sure that your children will be well taken care of and that they’ll have a more positive experience.
The Age of the Children
Another factor impacting the cost of a babysitter is the age of the children as infants and toddlers require more constant supervision and care than older children, so babysitters who are comfortable (and qualified) to care for them may charge a higher rate.
The Length of the Job
The length of the job is another important factor to consider when setting your rates. In general, shorter jobs will be less expensive than longer ones. This is because babysitters have to dedicate a larger portion of their time to shorter jobs.
If you only need a babysitter for a few hours, you may want to consider hiring someone who specializes in short-term care. These babysitters typically charge less per hour because they’re used to working for shorter periods of time.
The Time of Day or Night
The time of day or night is another factor to consider when setting your rates. In general, babysitting jobs that take place during the day will be less expensive than those that take place at night. This is because most people are available to work during the day, so there’s more competition for jobs.
If you need a babysitter for a nighttime job to cover a late shift at work, you may want to consider hiring someone who specializes in nighttime care. These babysitters typically have a higher going rate because they’re used to working when most people are asleep.
Also, if you plan to hire a sitter for special occasions such as New Year’s Eve or Valentine’s Day, you’ll typically need to pay a higher rate since sitters are in high demand.
The Location of the Job
The location of the job is another important factor to consider when setting your rates. In general, jobs that take place in urban areas will be more expensive than those that take place in rural areas due to cost of living. This is because babysitters in urban areas typically have to travel further to get to their jobs.
The Responsibilities of the Job
Another factor to consider when setting your rates is the responsibilities involved in the job. In general, jobs that require more responsibilities will be more expensive than those that don’t. This is because babysitters have to take on more tasks when they’re responsible for more things.
If you need a babysitter who is responsible for more than just watching your children, you may want to consider hiring someone who specializes in caregiving. These babysitters typically charge more per hour because they’re used to taking on additional tasks, such as household chores or preparing meals.
The Child’s Temperament
Another factor to consider when setting your rates is the kid’s temperament. In general, jobs that involve caring for children who are more difficult to handle will be more expensive than those that don’t. This is because babysitters have to put in more effort to deal with children who are fussy or temperamental.
If you have a child who is known to be difficult, you may want to consider hiring a babysitter who specializes in dealing with children like yours. These babysitters typically charge more per hour because they’re used to handling children with special needs.
What is the difference between a babysitter and a nanny?
A babysitter is typically defined as an older child or teenager who watches younger children for a short period of time, usually in the evening or overnight. A nanny, on the other hand, is a professional caregiver that is often working full-time and is responsible for all aspects of child care, including pick-ups and drop-offs, meal prep, homework help, and more. Because of the additional responsibilities, nannies typically earn higher hourly wages than babysitters.
When deciding whether to hire a babysitter or a nanny, it’s important to consider your needs and budget. If you only need someone for a few hours a week to watch your child while you run errands or go out for date night, a babysitter may be the better option. However, if you need regular child care during the day while you’re at work or if you have multiple children, a nanny may be a better fit.
There are many factors that influence the costs of a babysitter, and in the end, you’ll have to use your best judgment to determine how much to pay your babysitter. Consider all of the factors we’ve discussed and come to a decision that works for you, your family, and your babysitter. At the end of the day, what’s most important is that everyone is happy with the arrangement.
Deflation is essentially the opposite of inflation. It occurs when the prices consumers pay for goods and services goes down. That means that consumers can purchase more with the same amount of money.
There are many factors that cause deflation, which happens when the supply of goods and services is higher than the demand for them. While deflation can have some benefits to consumers, it’s often a sign of trouble for the overall economy.
What Happens During Deflation?
In addition to knowing what inflation is, it’s important to understand how it impacts the economy. In a deflationary economy, prices gradually drop and consumers can purchase more with their money. In other words, the value of a dollar rises when deflation happens.
It’s important not to confuse deflation with disinflation. Disinflation is simply inflation decelerating. For example, the annual inflation rate may change from 5% to 3%. This variation still means that inflation is present, just at a lower rate. By contrast, deflation lowers prices. So, instead of prices increasing 3%, they may drop in value by 2%.
Although it may seem advantageous for consumer purchasing power to increase, it can accompany a recession. When prices drop, consumers may delay purchases on the assumption that they can buy something later for a lower price. However, when consumers put less money into the economy, it results in less money for the service or product creators.
The combination of these two factors can yield higher unemployment and interest rates. Historically, after the financial crises of 1890, 1893, 1907, and the early-1930s, the United States saw deflationary periods follow.
How Is Deflation Measured?
Economists measure deflation the same way they measure inflation, by first gathering price data on goods and services. The Bureau of Economic Analysis (BEA) and the Bureau of Labor Statistics (BLS) record and monitor this type of data in the United States. They collect pricing information that they then put into buckets reflecting the types of goods and services consumers generally use.
While these buckets do not include every product and service; they offer a sample of items and services consumed. In the United States, economists incorporate these prices into an indicator known as the Consumer Price Index (CPI).
Then, economists can compare the CPI to previous years to determine whether the economy is experiencing inflation or deflation. For example, if the prices decrease in a period compared to the year before, the economy is experiencing deflation. On the other hand, if prices increase compared to the previous year, the economy is experiencing inflation.
What Causes Deflation?
Deflation comes from a swing in supply and demand. Typically, when demand dwindles and supply increases, prices drop. Factors that may contribute to this shift include:
Rising Interest rates
When the economy is expanding, the Federal Reserve may increase interest rates. When rates go up, consumers are less likely to spend their money and may keep more savings to capitalize on the increase in rates.
Also, the cost of borrowing increases with the rise of interest rates, further discouraging consumers from spending on large items.
Decline in Consumer Confidence
When the country is experiencing economic turbulence, like a recession, consumers spend less money. Because consumers tend to worry about the direction of the economy, they may want to keep more of their money in savings to protect their financial well-being.
Innovations in Technology
Technological innovation and process efficiency ultimately help lower prices while increasing supply. Some companies’ increase in productivity may have a small impact on the economy. While other industries, such as oil, can have a drastic impact on the economy as a whole.
Lower Production Costs
When the cost to produce certain items, such as oil, decreases, manufacturers may increase production. If demand for the product stagnates or decreases, they may then end up with excess supply. To sell the product, companies may drop prices to encourage consumer purchases.
Why Does Deflation Matter?
Although falling prices may seem advantageous when you need to purchase something, it’s always not a good sign for the economy. Many economists prefer slow and unwavering inflation. When prices continue to rise, consumers have an incentive to make purchases sooner, which further boosts the economy.
One of the most significant impacts of deflation is that it can take a toll on business revenues. When prices fall, businesses can’t make as much money.
The drop in business profits makes it challenging for companies to support their employees, leading to layoffs or pay cuts. When incomes go down, consumers spend less money. So deflation can create a domino effect impacting the economy at many different levels, including lower wages, increased unemployment, and falling demand.
Deflation During The Great Depression
The Great Depression is a significant example of the potential economic impact of a deflationary period. While the 1929 stock market crash and recession set this economic disaster off, deflation heavily contributed to it. The rapid decrease in demand along with cautious money hoarding led to falling prices for goods and services. Many companies couldn’t recover and shut down. This caused record-high unemployment in the United States, peaking at 25%, and in several other countries as well.
During this time, the economy continued to experience the negative feedback loop associated with deflation: cash shortages, falling prices, economic stagnation, and business shutdowns. While the United States has seen small episodes of deflationary periods since the Great Depression, it hasn’t seen anything as substantial as this event.
How to Manage Deflation
So, what can the government do to help regulate inflation? For starters, the Federal Reserve can lower interest rates to stimulate financial institutions to lend money. The Fed may also purchase Treasury securities back to increase liquidity that may help financial institutions loan funds. Those initiatives can increase the circulation of the money in the economy and boost spending.
Another way to manage deflation is with changes in fiscal policy, such as lowering taxes or providing stimulus funds. Putting more money in consumers’ pockets encourages an increase in spending. This, in turn, creates a chain effect that may increase demand, increase prices, and move the economy out of a deflationary period.
The Takeaway
Deflation refers to a period that can be thought of as the opposite of inflation. It occurs when the prices consumers pay for goods and services goes down, which means that consumers can purchase more with the same amount of money.
When the economy is experiencing some turbulence, some investors may choose to keep their money in savings. On the other hand, other investors may see falling prices as an opportunity to purchase securities at a discount, either to hold or to sell when the economy recovers. Like any other investment strategy, investors must base their investment decisions on their personal preferences since there are no guaranteed results.
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According to the Motley Fool, the average American family has $7,630 in credit card debt, $11,244 in student loans, $8,163 in car loans, and $70,322 on a mortgage.
However, before you think the above amounts seem low, these figures include those who don’t have any debt. So, for example, when you only factor in those who actually have a credit card balance, the average amount shoots up to over $15,000.
All of the above shows that the average family has a lot of debt.
You’re different, though. If you’re reading this post, you are either close to paying off your debt or already have.
Paying off your debt, whether it be from credit cards, student loans, a mortgage, or something else, is an exciting time. A person works extremely hard and sacrifices many things in order to beat the “norm.”
But, what’s next?
Many don’t think about what to do after they pay off their debt. This can be a mistake and may even lead to someone falling back into debt.
As everyone probably knows, debt is easy to fall into, and that’s the last thing anyone wants after they have worked so hard to pay it all off. Here are my tips for life, after paying off your debt.
Carefully celebrate your debt-free life.
I recently heard about someone who paid off their debt and then threw a HUGE party to celebrate. This person bought drinks for everyone, had a caterer, and more.
I can only imagine how much this newly debt-free person had to pay for this kind of celebration and whether or not it put them back into debt. For some, this may be a fun way to celebrate, but it’s definitely not for everyone.
There are plenty of ways to commemorate your new, debt-free life. You don’t need to spend a ton of cash, or go back into debt to celebrate.
Here are several examples of how you can celebrate your new, debt-free life:
Throw a frugal potluck. Just as much fun as a catered party!
Have a nice family dinner at your favorite restaurant.
Pay for a fun experience with cash that you’ve saved up, such as a vacation, skydiving, a visit to a theme park, or something else.
Do a debt-free dance.
Scream “I’M DEBT-FREE!”
Think about getting rid of your credit card.
If you fell into credit card debt but still have a credit card, you may want to think about getting rid of your credit card completely.
While there are many benefits of having a credit card, there are negatives as well. For some, credit cards can easily lead to racking up more debt.
You should carefully examine your credit card behaviors and decide if having one causes you to spend more money. You may not truly need one.
The last thing you want right now is to fall back into your old spending habits and go back into debt!
Start an emergency fund.
Only 40% of families have enough in savings to cover three months of expenses, and even fewer families have the usually recommended six months worth of savings.
The percentage of people who have emergency funds while in debt is even lower. Many of those paying off debt don’t have emergency funds whatsoever, or they just have very small ones.
Well, now that you don’t have debt, you should focus on building an emergency fund.
These are just a few of the many reasons why.
An emergency fund is there to ensure you don’t fall back into debt due to unexpected expenses.
It can help you if you lose your job.
It is wise to have one if you have a high-deductible health insurance plan.
It is a good idea to have an emergency fund if you have a car. Your car may need a repair, get totaled, or some other unpredictable expense may occur.
It is necessary if you own a home. We all know, one of the lucky things homeowners often get to deal with are unexpected home repairs.
Emergency funds are always helpful to have, because they offer peace of mind if anything costly was to happen in your life. Instead of building onto your stress, you will know you can afford to pay your bills and focus on more important things.
Related: Everything You Need To Know About Emergency Funds
Keep your budget.
After you pay off your debt, you may want to get rid of your budget, as you probably have a little extra cash. However, right now is the perfect time to keep budgeting.
This wiggle room may have you tempted to spend all of this extra cash, but now is the time to be smart and think of something useful to do with it.
I recommend putting this extra cash towards a new financial goal of yours, such as one listed below.
Work towards a new financial goal.
Just because you’ve paid off your debt doesn’t mean you are done with your finances. Right now is the ideal time to start a new financial goal, because you are likely very motivated after finishing your debt payoff goal.
If you haven’t already, there are many other financial goals you may want to start working towards. These include possibly saving for:
Retirement.
An emergency fund.
Travel.
Starting a family.
Buying a home.
Buying a car.
Have you ever fallen back into debt? What happened? How much debt do you currently have?
Editor’s note: This is a recurring post, regularly updated with new information.
As a traveler, I am firmly team carry-on and will very rarely check a bag, while some of my colleagues prefer to always check a bag.
Even if you insist on checking a bag, certain items should always go in your carry-on.
Here are 10 items to never check, according to our TPG travel team.
Identification documents
This one should go without saying since your identifying documents, such as a passport or valid driver’s license, are among the most important items for a traveler to keep close, especially if you’re traveling abroad.
If you’re traveling domestically and don’t need a passport, all travelers age 18 and older still need a driver’s license or other state photo identification card from their state’s Department of Motor Vehicles (or equivalent) to pass through security at U.S. airports. A full list of Transportation Security Administration-accepted forms of identification is available here.
Once you’ve reached your destination, you’ll likely need to show some form of ID to check into a hotel or rent a car. If traveling abroad, we recommend carrying a picture of your passport with you while keeping your passport (and other valuables) securely locked in your room (in a hotel safe, if available).
Additionally, consider printing your travel itinerary and other important documents in case something happens to your phone or you can’t access Wi-Fi, says Erica Silverstein, TPG senior cruise editor.
Phone and charger
A phone is among the most helpful tools when traveling, especially if you have a plan that allows you to use your data internationally.
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From navigating and figuring out directions in a new place to visiting cities you’ve visited before, your phone can be a lifeline when traveling. This also means frequently having to charge your phone, which is only possible if you’ve brought the right charger and any converters to be able to use the plugs (if applicable).
Keep all of your electronics and chargers in a carry-on for easy access on the plane, where you can also use the in-seat charging portal. Charging inflight ensures your phone is fully charged before exiting the plane, minimizing the chance of a dead battery en route to your hotel or other accommodations since your room may or may not be available for check-in when you arrive.
This is also helpful if you have a lengthy layover between flights since you can’t guarantee you’ll find access to a charging station at an airport.
As a female traveler who sometimes travels solo, a working phone is crucial. All travelers, solo or not, should pack a portable charger in their carry-on and always bring that with them when they go out and about.
Headphones and electronics
In addition to your phone, some travel with other Apple products, such as an iPad and Apple Watch, requiring separate chargers. If you’re like me, you’ll never travel without two sets of headphones (one wireless and one not) since wireless ones may run out of battery.
This is also courteous for your fellow passengers since most airlines prohibit flyers from listening to shows or music out loud while also potentially providing you with headphones, depending on the airline and route.
Keep your headphones and AirPods within easy reach at all times.
If you happen to travel with a suitcase with a battery pack for charging, such as those from Away, remember that these must be carried on per TSA rules.
A change of clothes
Per my earlier comment, the last time I checked a bag, it was a huge mistake. I missed my connecting flight due to inclement weather and my luggage was sent without me to my final destination. That left me spending the night in an airport hotel in Miami with just my backpack and the clothing I had been wearing for almost an entire day.
I’m not alone in this experience.
“I always keep at least one change of clothes for myself and each of my kids in my carry-on, even if I am checking a bag,” said Tarah Chieffi, TPG travel news reporter. “If our checked luggage is delayed or lost, or if inflight accidents occur, we always have a fresh change of clothes.”
This scenario is exactly why it’s important to pack at least one spare outfit in your carry-on item.
She also recommends throwing in a grocery bag or large zip-close bag for dirty clothes in your suitcase. Some suitcases even come with a reusable laundry bag.
You’ll likely appreciate having a fresh change of clothes, especially on long-haul flights and those with long layovers. You might even be able to access an airport lounge or an aircraft with showers, which is even better for freshening up.
Even if your flight is short and direct, it’s still helpful to pack a change of clothes in your carry-on in case your baggage gets delayed.
Reusable water bottle
Another item we recommend traveling with is a reusable water bottle. Just make sure the bottle is empty before you pass through airport security since most airports limit the number of liquids you can take through security.
Once you head to your gate in the post-security area, you’ll likely find free water refill stations where you can fill up your reusable bottle, including some with filtered water.
During your flight, request water and then pour that water into your bottle so it’s full at all times. Just remember to take your water bottle (along with your other items) off the plane when you disembark. I’ve lost two Hydro Flasks this way.
Also, flying can dehydrate you, especially if you’re drinking alcohol. It’s important to pay attention to your water consumption on travel days and make sure you are getting enough.
Considering how much airport stores charge for water and other items, bringing your own water bottle saves money — and eliminates single-use plastic.
Snacks
Not unlike the water, don’t rely on the airport or inflight snacks since food options when traveling may not be available or open when you need them.
“I always bring snacks, which are especially helpful if your flight is unexpectedly delayed while you’re on the plane with no option to get off,” said Senitra Horbrook, TPG credit cards editor.
Prescriptions and other medications
If you take medication daily, it’s wise to pack any prescriptions into your carry-on luggage along with any over-the-counter medications you take frequently or might need, such as pain relievers or allergy medicine.
For example, I always bring several days’ worth of Tylenol, Benadryl, vitamins, probiotics, etc., as well as a few extra supplements of my daily medicine in case I end up staying longer than anticipated.
I also pack a few extra pairs of contact lenses. I wear dailies and prefer them over wearing my glasses, though I bring my glasses as a backup. I also bring adhesive bandages, just in case.
Assistance items
For senior travelers or those who require assistance, do not keep any assistive/medical device item, such as a walking stick or handicapped placard, out of reach.
A good rule of thumb — if it’s anything you can’t live without for half a day or more, put it in your carry-on, says Erica.
Hand sanitizer, wipes, paper towels and tissues
Since the COVID-19 pandemic, many travel with hand sanitizer and sanitary wipes to wipe off seats, tray tables, seat belts, etc., upon boarding.
These items are small and can easily fit in your carry-on item. Just ensure your hand sanitizer does not exceed 12 ounces, which is an allowance specifically for hand sanitizer that the TSA implemented during the pandemic. All other liquids must still meet the 3.4 ounces or 100-milliliter size requirement.
Other items to consider bringing in your carry-on are paper towels and a washcloth in case of spills or other situations where you need to dry your hands.
You might be able to find tissues and band-aids at airports and on planes, though they’re likely not going to be great quality. Tissues are small enough to pack a few in your carry-on in case of unforeseen circumstances, from the sniffles to a paper cut.
Valuables
Beyond your phone and important travel documents such as your passport, keep your most important items close to you while traveling, including jewelry.
These items would fall under the “hard to replace if not irreplaceable” category, depending on how sentimental they are to you.
Bottom line
Once you’ve decided on the items most essential for your carry-on, be sure to decide what carry-on item makes the most sense for them to go in.
For example, if you have two carry-on bags, one smaller one that fits underneath the seat in front of you or one suitable for the overhead bin, think about what items you might need most often throughout the flight and position those in your smaller bag.
For everything else, you can always get up and retrieve items from your larger bag from the overhead bin.
Over the weekend, a friend and I were enjoying a couple of beers in my neighborhood. As we sat outside people watching, he drooled over every fancy car that drove by.
“That’s a whatever-whatever,” he would tell me. “It costs $100,000.”
I live in Los Angeles, where these symbols of affluence are common.
“I can’t help it,” I told him. “All I can think of when I see a car that expensive is that the driver made a terrible financial decision.”
“But what if the driver is rich and can afford it?” my friend argued.
We then got into a conversation about fancy cars, happiness and frugality. I argued that, no matter how much money I might make in the near future, I plan on driving my Corolla into the ground.
“You wouldn’t trade it in for a nice, sleek Mercedes?” he asked. I said no, and he looked suspicious. But here’s why I think I’ll drive my car until it wears out.
It’s Got Sentimental Value
The non-money answer is that I love my car because it used to be my brother’s.
Both of us had Corollas. I paid for the down payment on mine and spent five years paying it off completely. Since college, Old Trusty and I had been through a lot together; he had a good 150,000 miles on him. So I wanted to take him with me when I moved to California, but my parents thought he was unfit to make the trip. My car was a 2004, and my brother’s was a 2008 with considerably fewer miles. For some reason, when my brother went off to college, my parents bought him a new truck (how come I never got a new truck, guys?). Mom and Dad insisted I accept his newer, less worn-out Corolla, saying it would give them peace of mind.
Who am I to turn down a better car and worry my parents? I said goodbye to Old Trusty and drove my brother’s car to LA.
Maybe it’s sappy and weird, but this car reminds me of home. My apartment and pretty much everything in it (even Brian) came from LA. My car is one of the few things from home that I still have with me.
Car Payments Scare Me
“You wouldn’t want a car with heated seats and a comfortable interior?” my friend asked.
Of course I would. But as comfortable as heated seats are, they don’t feel nearly as good as not having car payments.
If my car was on its last leg, or if it was severely uncomfortable and I had a two-hour commute, it might be a different story. But for me, upgrading simply for the sake of upgrading isn’t worth the expense.
I’ve always found it odd that many people consider car payments to be a constant. For lots of people, paying off their car loan means trading in their car for a newer one with all new payments. I guess if you can work it into your budget, maybe you can afford it. But I’ve always been a fan of the Dave Ramsey school of thought:
“When it comes to money, normal is broke. You want to be weird, and weird people don’t have car payments.”
My Cost of Ownership is Low
Last year, my auto maintenance expenses totaled $523, but that included a new set of tires. Granted, I don’t drive much (mostly on weekends and road trips). But I still think this expense is relatively low. In fact, Edmunds shows that the total estimated cost of my car’s annual maintenance (not including the tires) is $150. For a Mercedes C-Class, it’s $260.
Let’s say I did buy a new car this year — even a new Corolla. At least until its eighth birthday, depreciation is the car’s biggest cost. At year one, the cost of depreciation is obviously at its highest — 57 percent of the total owner cost, according to Consumer Reports. Considering my current driving habits, my car would incur higher-than-ever depreciation while it sits in a parking spot. Seems like a waste. At five years, depreciation is still my largest expense, but at least it’s not depreciating as much (48 percent) while it mostly just sits there during the week.
This is a unique example, and perhaps it depends on perception, but the point is, the costs over time should be considered.
My Car Still has Value
I don’t consider buying a new car to be an investment. It doesn’t make sense to think of it that way, because it’s not an asset that has the possibility of appreciating. Yes, if you buy an expensive car, you can later sell it for more money than you could a cheaper car, but the same can be said for apair of boots.
I simply think of my car as part of my Stuff. Sure, I kind of need it, and it’s worth more than most of my other Stuff, but the bottom line is, I bought it to be used, not to watch its value increase. Thus, wouldn’t I want to get as much out of my money as possible?
While I don’t think of cars as investments, they also aren’t like the rest of our Stuff; usually, they’re a lot more expensive to replace. In an age when cellphones and computers are always upgraded, I feel like it’s easy to believe your vehicle needs an upgrade, too. I’m surprised at how many people say it’s “time for a new car” simply because they haven’t had a new car in a while. That’s a costly treat. Though some would argue upgrading a perfectly usable phone is a costly treat, too.
But What if You’re a Gazillionaire?
“But if you’re a billionaire, why not just buy a new car? It would be nothing to you,” my friend argued.
I’d like to think that,your idea of value often changes. “Comfortable” isn’t what it used to be, and you experience lifestyle inflation. This is where my friend and I came to a standstill — where do you draw the line? At 20, spending a couple of hundred bucks on a phone seemed like a huge waste of money, but nowadays, it’s just part of my budget. “You could just live bare bones, but why else do you have money?” my friend argued.
But then again, a $100,000+ Porsche Carrera is pretty far from bare bones. That’s an extreme example, but I see a lot of them around town, and I often wonder about the mind-set that went into spending that much on a vehicle.
Getting Off My Frugal High Horse
Having control over my finances makes me happier than any luxury vehicle could. But not everyone has as much fun with frugality. I also don’t get than new car itch. But plenty of people do, and I itch for other things that some people might see as a waste.
I’m about to take a pretty pricey vacation. I’ve been saving up for it, and I’m relishing it, the way many luxury car lovers would relish their purchase. I forget there’s an important difference between me and people who buy fancy cars: they like fancy cars.
There are plenty of practical reasons for not buying a luxury car. But we all have the urge to splurge on different things.
I’ll end with a question a GRS reader once posed. She wondered whether she should buy a new, luxury car. She could afford it, but she didn’t need it.
This comment was singled out as a favorite:
“If you can really afford it — you’re paying cash, you’re already putting enough money into your 401(k) to get the full employer match, you’re putting extra money into an IRA, you’ve got three (or six) months extra cash saved up, you don’t have any looming debt — then I think you should go for it. That’s what money’s for: buying things. […]”
I would agree with the above comment. When you’re financially free and fully prepared for your financial future, money is for buying things.
It’s a great comment. But I would have closed it with:
“Unless the car costs six figures.”
Even dismounted from my frugal high horse, I still can’t fathom a vehicle being that expensive.
Some of the largest banks call America home. These banks are backed by the Federal Deposit Insurance Corporation (FDIC) and offer a variety of products and services. If you prefer a big bank over regional banks or a smaller, community bank, you’ve come to the right place.
Below we’ve compiled a list of the largest banks in the U.S. Once you read through it and perform some of your own research, you should be able to choose a bank or two that meets your needs.
How to Measure Bank Size
First, let’s discuss how to measure the size of a bank. We can do so by looking at the number of customers, number of branches, and number of employees.
But perhaps the best way to measure bank size is by focusing on the total assets under management. This figure shows the actual size of a bank, regardless of how many employees, branches, or ATMs it has.
In our list of the largest banks in the U.S. below, you’ll find that we include each bank’s total assets so you can get a better idea of just how large it is.
Bank Services
We also thought it would be a great idea to briefly discuss how banks work and what they can do for you as a customer. Banks have been around since at least the 14th century. They offer a safe place for individuals and business owners to park their cash and work on various financial goals.
While every bank has their own unique lineup of services, most of them provide checking accounts, savings accounts, and loan services. Some go the extra mile with credit cards, wealth management services, and other conveniences.
Types of Banks
In addition, it’s wise to go over the types of banks at your disposal. The most common types of banks you’ll find include:
Retail banks: Retail banks serve the public and typically have branches and main offices. They provide a wide range of services, like checking and savings accounts, mortgage and loan services, auto financing, CDs, and individual retirement accounts (IRAs). Retail banks may be regional banks operating in various states.
Commercial banks: Also known as corporate banks, commercial banks gear their offerings to small business owners and larger corporate entities. In addition to the usual banking services, they may offer cash management, employer services, and commercial real estate services.
Investment banks: Investment banks are designed for corporate clients with complex needs, like mergers and acquisitions. These clients are large corporations, governments, and hedge funds.
Central banks: Central banks are not available to the public. Instead, they’re an independent institution that oversees the money supply and monetary policy in the country. The Federal Reserve Bank is the central bank in the U.S.
Banks vs. Credit Unions
While banks are quite popular, some customers use credit unions instead. While credit unions also offer banking services, like checking and savings accounts, they’re not for profit institutions that are managed by their customers or members.
Compared to banks, credit unions tend to deliver more personalized service. But they also provide fewer services and have fewer branches and ATMs. A credit union can make sense, depending on your unique goals.
20 Biggest Banks In The U.S.
Here’s an overview of the largest banks in the U.S.
1. JPMorgan Chase & Co.
Total Assets: $3.381 Trillion
Headquarters: New York City, New York
If you focus on consolidated assets, JPMorgan Chase earns the spot as the largest bank in the U.S. This investment bank is also a holding company for subsidiaries, including Chase Bank. Chase, which is J.P. Morgan’s consumer banking division, has more than 4,700 branches in the U.S. plus more than 30 branch locations abroad.
According to Chase, almost half of the households in the U.S. are Chase customers. It attracts digital savvy customers that value online banking and products with artificial intelligence (AI). In addition to consumer banking, JPMorgan Chase is a combined bank that offers commercial banking, asset and wealth management, and investment banking.
Chase offers some of the most popular cash back and travel credit cards that can earn you valuable rewards through their program, Chase Ultimate Rewards. Using these credit cards for everyday purchases can earn you travel points, cash back, and other benefits.
2. Bank of America Corp.
Total Assets: $2.440 Trillion
Headquarters: Charlotte, North Carolina
Bank of America is a multinational bank with nearly 66 million customers and small business clients across the globe. It has a few divisions, including Merrill, Bank of America Securities, and Bank of America Private Bank.
As a Bank of America customer, you can enjoy access to a wide variety of products and services as well as access to more than 4,000 branches and more than 17,000 ATMs.
Just like most big banks, Bank of America prides itself on a robust mobile app, the Zelle payment solution, and other intuitive digital tools. Its various service lines include consumer banking, corporate banking, credit cards, insurance, investment banking services, institutional banking, mortgage loans, private banking, private equity, and wealth management.
3. Citigroup
Total Assets: $1.720 Trillion
Headquarters: New York City, New York
Citigroup, which is widely known as Citi, is an investment bank and financial services firm. When Citigroup merged with Travelers Group in 1998, it became a major player in the financial space. Citibank, Citigroup’s retail banking division has more than 700 branches in the U.S. and over 1,800 branches outside the U.S.
Most of the U.S. bank branches are in Florida, California, New York, and Washington DC. Citibank manages over 138 million bank accounts and has 65,000 fee-free ATMs across the country. Over the years, it has earned high rankings for its digital money management tools, including one that shows customers a financial wellness score.
4. U.S. Bancorp
Total Assets: $582.25 Billion
Headquarters: Minneapolis, Minnesota
The parent company of U.S. Bank, Bancorp’s locations are mainly in the Midwest. It offers personal and business banking with more than 3,000 branches and 5,000 ATMs. Over the years, Bancorp has worked to become a responsible financial provider and earn a spot on the Ethisphere Institute’s World’s Most Ethical Companies list.
As a Bancorp customer, you can access information about your accounts through Google Home and Amazon Alexa. You may also download the handy mobile app to make mobile deposits and perform other services, like transactions via Zelle.
5. PNC Financial Services Group
Total Assets: $534.35 Billion
Headquarters: Pittsburgh, Pennsylvania
PNC is short for Pittsburgh National Corporation. PNC Financial Services is the bank holding company of PNC Bank, which has more than 2,000 branches across 21 states. It stands out among other large banks for its unique customer perks and products for individuals and business owners. The Virtual Wallet tool, for example, lets you manage your money online or on your mobile device.
You can keep your checking and savings accounts together or just stick to one type of account, depending on your particular needs. In addition to traditional banking services, PNC offers mortgages, home equity lines of credit, auto loans, personal loans and personal lines of credit, student loans, and student loan refinancing.
6. Wells Fargo
Total Assets: $1.71 Trillion
Headquarters: San Francisco, California
Wells Fargo made its debut in 1852 when it was first opened by investing partners, Henry Wells and William Fargo. It was initially designed as a bank and express delivery service for gold. Eventually, Wells Fargo expanded as a consumer bank to serve all types of customers with various banking needs. It is admired for its long list of offerings and the Wells Fargo mobile app that helps customers track their spending and simplify their bills.
While Wells Fargo has focused on consolidating and prioritizing digital banking services in recent years, it still has about 4,700 locations and more than 12,000 ATMs around the U.S.
In addition to personal and small business banking, Wells Fargo supports commercial banking, investing and wealth management, and investment banking.
7. Truist Financial Corporation
Total Assets: $532.08 Billion
Headquarters: Charlotte, North Carolina
Compared to the other large commercial banks on this list, Truist is fairly new. It was formed in 2019 as the result of one of the largest bank merger between BB&T and SunTrust.
Truist is made up of three major divisions, including Truist Bank, Truist Securities, and Truist Insurance Holdings. These divisions employ over 37,000 people that work in consumer and commercial banking, investment banking, mortgages, and insurance.
It offers a variety of noteworthy perks, such as no overdraft fees, a $100 negative balance buffer, and automatic upgrades. The bank also places a lot of emphasis on community involvement and giving back.
8. Goldman Sachs Group, Inc.
Total Assets: $501.91 Billion
Headquarters: New York City, New York
Goldman Sachs was founded in 1869 by Marcus Goldman, a German American shopkeeper. Its original purpose was to help merchants and small businesses with short-term funding. Eventually, Samuel Sachs joined Goldman in 1882. Today, Goldman Sachs has a reputation as a leading global investment banking, management, and securities firm.
In the fall of 2016, Marcus by Goldman Sachs, its online banking division made its debut and began to offer numerous financial products, like savings accounts, certificates of deposit, credit cards, and loans.
In addition to these offerings, Goldman Sachs provides asset management services, mutual funds, investment banking and management, prime brokerage, commodities, and commercial banking.
9. Charles Schwab Corporation
Total Assets: $407.90 Billion
Headquarters: San Francisco, California
Charles Schwab is a multinational financial services firm with a focus on investment accounts, such as individual retirement accounts (IRAs) and brokerage accounts.
You’ll find an extensive selection of funds with low expense ratios as well as commission-free stock and ETF trades. While there are over 360 Charles Schwab branches with financial consultants, you can take advantage of its services online.
Schwab also offers a high-yield checking account. Whether you’re new to investing or consider yourself a veteran, you can benefit from Charles Schwab.
10. TD Group U.S. Holdings
Total Assets: $405.22 Billion
Headquarters: Wilmington, Delaware
While TD Bank has roots in Canada, it’s been in the U.S. market since 2007 when it acquired Commerce Bancorp. There are more than 1,100 branches and 700 ATMs across fifteen U.S. states and Washington D.C.
TD Bank offers the typical lineup of banking products and services but is known for its branch convenience. Most branches have long hours, are open on the weekends, and provide curbside pickup for new debit cards.
If you prefer in-person banking, TD Bank is certainly worth exploring. Many of its accounts come with generous sign up bonuses and access to comprehensive online banking features, such as online bill pay, Zelle, and remote check deposit.
11. Capital One Financial
Total Assets: $388.44 Billion
Headquarters: McLean, Virginia
Since it was established in 1988, Capital One bank is one of the newer large banks on our list. In only a few decades, the bank has grown significantly, thanks to its credit card offerings in the early 90s.
Once 2016 came around, Capital One was named the third-largest credit card issuer in the U.S. These days, Capital One continues to offer credit cards as well as digital services through Capital One 360.
Capital One 360 stands out for its Capital One’s 360 Performance Savings account, which comes with no minimum opening deposit and no minimum balance requirements.
It also has a mobile banking app with mobile check deposit, customized alerts and notifications, Zelle, free credit score monitoring via CreditWise, and more. There are about 775 branches, 2,000 ATMs, and nearly 30 Capital One cafes.
12. Bank of New York Mellon
Total Assets: $365.10 Billion
Headquarters: New York City, New York
Bank of New York Mellon came about after a 2006 merger between Mellon Financial Corporation and The Bank of New York. The Bank of New York was originally founded in 1784 by Alexander Hamilton, the first Secretary of the Treasury of the U.S. Bank of New York Mellon is now one of the largest securities firms in the word.
It specializes in a number of solutions and services for corporations, insurance companies, banks, brokers, dealers, and other reputable clients in the financial industry. In addition, the bank offers private investment and wealth management services for wealthy clients.
13. State Street Corporation
Total Assets: $296.43 Billion
Headquarters: Boston, Massachusetts
State Street Corporation was founded in 1792 as a financial services and asset management company. It has more than 40,000 employees and a global presence in over 100 markets.
Its offerings include investment research and trading, investment management, and securities lending for clients, such as insurance companies, pension funds, and asset owners.
14. Citizens Financial Group
Total Assets: $226.53 Billion
Headquarters: Providence, Rhode Island
Citizens Financial Group, Inc. has been around since 1828. It owns Citizens Bank, its retail division and offers credit cards, deposit accounts, personal loans, student loans, refinancing, and a number of other financial services. Citizen Bank mainly operates in the Northeast and Midwest.
In addition to more than 2,700 ATMs, there are over 1,100 branches in New England states as well as Delaware, Michigan, Ohio, Pennsylvania, New York, and New Jersey. The bank provides extended call center hours, a streamlined online experience, and a highly rated mobile app.
15. Silicon Valley Bank
Total Assets: $211.82 Billion
Headquarters: Santa Clara, California
Silicon Valley Bank made its debut in 1983. Today, it serves as a full-service commercial bank for technology and life sciences companies. Aside from traditional banking services, Silicon Valley Bank offers foreign exchange, venture capital, and treasury management services.
It has supported innovation for several well-known tech companies, including Google and Facebook. Many people give it credit for establishing Silicon Valley.
16. Fifth Third Bank
Total Assets: $205.55 Billion
Headquarters: Cincinnati, Ohio
Fifth Third Bank is a subsidiary of Fifth Third Bancorp and known as one of the largest banks in the Midwest. It has approximately 1,100 branches that span across Ohio, Florida, Georgia, Kentucky, Illinois, Indiana, Michigan, North Carolina, Tennessee, and West Virginia.
As a customer, you can enjoy access to more than 50,000 ATMs across the country and no opening deposit requirements for checking and savings accounts.
In addition to deposit accounts, Fifth Third Bank financial institutions offer mortgages, auto financing, personal loans, insurance, and investing products. Products and services are available to business customers as well.
17. First Republic Bank
Total Assets: $197.91 Billion
Headquarters: San Francisco, California
First Republic Bank is a premier private bank with more than 80 branches across the country. Its vast lineup of products and services includes checking accounts, savings accounts, money market accounts, IRAs, CDs, and wealth management.
Business customers can take advantage of business loans, business lines of credit, commercial real estate loans, and small business loans. The bank focuses on philanthropy and constantly supports programs related to art and education.
18. Morgan Stanley
Total Assets: $191.35 Billion
Headquarters: New York City, New York
Morgan Stanley’s roots date back to 1935. Today, the bank is a reputable, multinational investment management and financial services company. It has over 700 locations in every state as well as Washington D.C.
Its investing division includes three portfolios, including the impact portfolio, market-tracking portfolio, and performance-seeking portfolio. Whether you’re a beginner investor or wealthy client, Morgan Stanley may be a solid pick.
19. KeyBank
Total Assets: $184.67 Billion
Headquarters: Cleveland, Ohio
KeyBank was founded in 1825 and is now considered a community bank with a presence in 15 states. It has more than 40,000 ATMs in its network and 1,000 full-service branches. The bank also partners with the AllPoint Network of over 40,000 ATMs nationwide.
Its standard services include checking accounts, savings accounts, home loans and mortgages, lines of credit, credit cards, investing, insurance, and debt consolidation. In 2021, KeyBank acquired several digital businesses including digital platform XUP Payments and GradFin, a student loan counseling fintech.
20. Ally Bank
Total Assets: $182.2 Billion
Headquarters: Sandy, UT
While it’s based in Utah, Ally Bank is an online only bank with a long list of digital banking solutions. Its deposit accounts come with no monthly maintenance fees or minimum balance requirements.
The bank also pays high yields on CDs and savings accounts than traditional banks with brick-and-mortar banks. As a customer, you can enjoy 24/7 customer services and access to more than 43,000 ATMs through the Allpoint network.
Bottom Line
As you can see, there are many large banks in the United States. Each one has its own unique perks and priorities. To choose the right bank, consider your location, needs, and preferences.
If you’re looking for personal banking services and prefer a digital platform, Goldman Sachs and its Marcus division may be the way to go. But if private wealth management is your top priority, you may be better off with Bank of New York Mellon. Best of luck in your search for the perfect large bank.
Largest Banks in the U.S. FAQs
What is a bank?
Put simply, a bank is a financial institution that can legally accept checking and savings deposits and distribute loans. Some banks also offer additional services like certificates of deposit (CDs), individual retirement accounts (IRAs) and wealth management.
What is the largest bank in the world?
The Industrial and Commercial Bank of China is the largest bank in the world. The bank’s assets add up to $4.324 Trillion.
What are the ten largest banks in the U.S.?
Ranked in total asset value, the ten largest banks in the U.S. include JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, U.S. Bancorp, PNC, Truist Bank, Goldman Sachs, Charles Schwab, and TD Group.
How do I choose a bank?
To choose the right bank, focus on what you’re looking for. For more personalized service, you might want to explore a community bank. But if you prefer branch locations across the country and a long list of offerings, one of the large banks on this list might be a better fit.
Is my money safe in a bank?
Your money is safe as long as the bank is insured by the Federal Deposit Insurance Corporation (FDIC). An FDIC-insured bank typically insures up to $250,000 per depositor. Note that you don’t have to purchase FDIC insurance. As long as you’re a customer at a bank that offers it, you’ll receive it automatically.
How does a commercial bank differ from a retail bank?
A commercial bank offers a variety of products and services to both individuals and businesses. Retail banks, on the other hand, focus their offerings to individual customers. If you own a business, you’d be better off with a commercial bank that can serve the financial needs of your organization.
Do online banks exist?
Absolutely! In today’s day and age, online banking is more popular than ever before, among larger banks and smaller banks. While some banks offer in-person and online services, other banks, like Ally Bank, solely operate online with no branch locations.
What are some other large banks not on this list?
Other big banks you might want to consider include First National Bank, Huntington Bank, Provident National Corporation, America Bank, and HSBC Bank USA.
From searching for the perfect apartment to making it your own, every step of the apartment-hunting journey brings anticipation and the thrill of creating a space that reflects your unique personality and aspirations.
When determining the apartment that’s the right fit for your lifestyle and preferences, understanding what you can afford is a huge first step. This is overwhelming when considering all the financial factors of how much you make, how much you want to save, your debts and your desired city’s cost of living.
Remove the complication of calculating
The Rent Calculator is your one-stop place for determining the best apartment, all factors considered.
Determine the location of where you’re apartment hunting.
Enter your ideal number of beds
Put in your pre-tax income
Calculate your monthly expenses or a rough estimate
After you enter this information the Rent Calculator will calculate options for you based on spending 30 percent of your income. The calculator pulls three options for you, where you can explore apartments where you’d live on a budget, live comfortably and live luxuriously. It’s up to you, depending on your style, saving method and desired amenities what apartment category is the best fit for you.
Salary and rent affordability examples
50k salary
On $50,000 a year, you’re making $4,167 gross per month. Taking 30 percent of that, you are able to afford up to $1,250 per month in rent.
75k salary
On $75,000 a year, you’re making $6,250 gross per month. Taking 30 percent of that, you are able to afford up to $1,875 per month in rent.
100k salary
On $100,000 a year, you’re making $8,333 gross per month. Taking 30 percent of that, you are able to afford up to $2,500 per month in rent.
125k salary
On $125,000 a year, you’re making $10,417 gross per month. Taking 30 percent of that, you are able to afford up to $3,125 per month in rent.
Fun facts about rent
Learn a little more about who’s renting. How old are they? Do they room up with anyone? See where you fall into the statistics.
What does the average person spend on rent?
While rent prices in the U.S. vary greatly by region, the national median rent as of December 2022 was $2,007.
Many people choose to live with roommates to save money on rent. However, if you choose to live with others, it’s important to be clear on how much rent each roommate will be paying.
What percentage of people have a roommate?
Nearly half of renters are rooming with someone. Most renters in one of our conducted surveys (49.8 percent) lived with one roommate. Another 24.8 percent lived in two-roommate households.
What is the average age and salary of renters?
The typical U.S. renter is 39 years old, has never been married, with at least four years of college education and has a median annual income of $42,500.
Renting made easy
This rent calculator removes the overwhelming calculations, thoughts and considerations that fill a renter’s head when apartment hunting. In simplifying this process by swiftly providing accurate and tailored rent estimates, the burden on renters disappears and allows them to make informed decisions with ease. Find your dream apartment today!
*Disclaimer: This calculator displays an approximation of how much rent you can afford based on your location, income and debt. Real numbers may vary based on your lifestyle and fixed expenses.
Are you a Millennial or Gen-Xer that has contemplated investing but doesn’t know where to begin? Micro-investing apps are a way to get your feet wet and are designed to encourage the younger generation to start investing.
If you are new to or know little about micro-investing, this guide will give you the information you need to get started. It will cover the best micro-investing apps for Millennials and everything you should know about micro-investing including what it is, how it works, and how to choose an app.
What’s Ahead:
Overview of the best micro-investing apps for Millennials
Acorns
This is one of the first and most popular micro-investing apps around. Account portfolios range from conservative to aggressive. This app will recommend portfolios based on your age, the risk you are willing to take, and what age you anticipate you will retire. Acorns takes the hassle out of investing by providing a micro-investing service. With one click, you can get started with any amount and automatically invest it according to your risk tolerance level–no more worrying about saving up money for each separate investment.
And if that’s not enough, Acorns also rewards its customers while shopping at partner stores through their Found Money program; they offer cash back without all the work because you’ll have an extra boost in your portfolio every time you shop online or offline. Acorns makes it easy for anyone to start investing – even kids. You can open accounts on behalf of those under 18 years old and build them up as parents monitor progress from afar via their family plan option.
Acorns has some really fun and interactive educational resources for those who are new to micro-investing, too. No minimum deposit is needed, so you can start investing with just $5. You’ll also get a referral bonus when you refer someone else or find a job offer — Acorns will match your investments up to the first year in which they work there. In other words, it’s free money.
The fees for micro-investing with Acorns are based on the level of account that you sign up for. The monthly fees can be as low as $3 per month or as high as $5 per month. You can choose between Personal and Family account levels:
Personal – $3 per month gives you the benefits from personal services such as a checking account with a debit card and no account fees or ATM fees and the ability to earn up to 10% bonus investments.
Family – $5 a month, and the entire family can invest. You can add any number of kids with no extra fees and access exclusive offers, in addition to the benefits from the Personal account type.
You can sign up for this micro-investing app through their website or by downloading their app on a device that uses iOS or Android operating systems. As with other micro-investing apps, you provide information about yourself, create a username and password, pick the type of account you want to sign up for, fund your account, and begin investing. One drawback of Acorns is that fees can add up for a low-balance account (the relative expense ratio gets smaller as you invest more), and transferring to another provider will cost $50 per ETF.
Learn more about Acorns or read our full review.
Robinhood
Robinhood is a micro-investing app that lets you buy and sell stocks, ETFs, options, and cryptocurrencies with zero trading fees. It’s the best place to start investing online because it’s the only free investment app on the market.
Robinhood was created by a couple of engineers who wanted to make stock trading more accessible for everyone. They had no idea that their little side project would eventually become one of America’s most popular financial apps.
The app is available for iOS or Android devices as well as through a web browser. To sign up for an account, you must be 18, with a valid ID to pass the company’s Know Your Customer (KYC) process. Robinhood also provides $3 – $225 in free stock when you sign up through their mobile app on iOS or Android device or their website.
Robinhood does not offer multiple account types to choose from but doesn’t charge any commission fees. Hence, trades are always at a flat rate of $0 per trade, making it a viable option for newer investors. Note that if you decide to transfer out of Robinhood, you’ll pay $75 – otherwise, there are no fees.
Learn more about Robinhood or read our full review.
Betterment
This app is designed for hands-off Millennial investors. Betterment works similar to other apps, with multiple portfolio options and automatic rebalancing of your portfolio. Betterment is a low-cost, automated investing service that takes care of everything for you. You can invest with as little as $25 and get the help of a financial advisor when you want it. It’s a robo-advisor that offers many different types of investments including index funds and exchange traded funds (ETFs) so your money will be diversified across multiple asset classes to reduce risk.
Betterment was founded in 2008 by Jon Stein who wanted to make investing easy and accessible for everyone. He created an automated system where users could set up their account, choose what type of portfolio they wanted, and then let Betterment take care of the rest – automatically rebalancing every day to keep things evened out.
There are two types of Betterment accounts:
Betterment Digital – 0.25% annually of assets managed featuring no minimum requirements, with the option to purchase a financial advisor package. You receive free automatic rebalancing of your portfolio when it drifts 3% or higher.
Betterment Premium – 0.40% annually of assets managed, and you must maintain a balance of $100,000. In addition to Betterment Digital features, you receive unlimited access to certified financial planners by phone or email.
You can purchase a consultation with financial advisors with packages ranging from $199 to $299 for individuals with a Betterment Premium account.
Betterment makes it easy to get started with your investing. Signing up is quick and accessible through the mobile app or web-based browser, you can link an account for deposits via bank transfer, wire transfers are also available but not recommended due to fees (for example $25 on top of any other charges).
Once signed up Betterment will set up a portfolio that reflects your goals based on questions asked when signing in such as what level of risk do I want? Based on these responses they’ll design a personalized investment plan just for you.
Learn more about Betterment or read our full review.
Twine
This micro-investing app allows you to invest and reach financial goals with a spouse, partner, or friend. Unlike other micro-investing apps, the focus is placed on low-cost ETFs instead of micro shares. Funding your account is done through recurring or one-time deposits, and you need $100 in your account to begin investing, though you can start an investment account with $5.
Twine was founded with the mission of making small, smart investments in people’s futures. They’re a micro-investing company that allows you to set up financial goals and an expected timeframe for these goals so they can reach them quicker than if it were on your own.
To do this, Twine has created three portfolio types: conservative, aggressive and moderate; which are designed specifically based on how much money is needed when investing as well as what time frame someone needs their goal met by.
There are two ways to get started: one being merely setting up a user account online or through an iPhone app (iOS). You can also invite another person to invest alongside you via email invitation – meaning not only will both of your funds grow together but Twine will help you reach your goals faster.
Twine micro-investment accounts are charged either $0.25 per month for every $500 invested or 0.60% annually with no minimum.
The process of signing up is similar to other apps. You provide your information, set a financial goal, invite someone else to invest with you, and begin funding and investing while monitoring your progress along the way.
On the downside, the mobile app is only for iOS operating systems only. It is more costly than other micro-investing apps and lacks the features that most of these apps offer, such as funding options and the option of fractional shares.
Learn more about Twine or read our full review.
Stash
Stash makes it easy and affordable for anyone to utilize and open an account. With Stash, you have more freedom and flexibility than other micro-investing apps.
Stash lets you invest in as little or much as you want and pick the companies, organizations, or causes that you trust. As your holdings grow, so does your potential to invest in what you believe in.
Stash eliminates any fees, commissions, or transaction charges–and they’re always working on adding more stocks to their portfolio for even more possibilities. With the new Stock-Back debit card featuring rewards in stocks opposed to store credit points (which can be converted into cash), it’s just a smarter way to use money every day.
There are two tiers of accounts with Stash:
Stash Growth – $3 a month gives you access to the benefits of Stash Beginner plus Smart portfolio and additional personal features. Smart Portfolio is a Stash feature that builds a custom portfolio for you based on research and risk level.
Stash+ – $9 a month allows you to enjoy the benefits of Stash Growth with bonuses. You can open accounts for your kids (max two kids), receive $10,000 in life insurance, and access additional and exclusive Stock-Back card bonuses.
There are three options you can choose from to add money to your Stash account.
Set recurring deposits to your Stash account.
Round-up purchases are made with your linked debit card, and the difference is invested.
Smart-Stash is a feature where your spending and earnings are analyzed, and money is stashed based on this information. You can then set transfer amounts to $5, $10, or $25 max.
The signup process is easy and straight-forward. You answer a few questions, pick a plan, add money to your account, sign up for the banking services offered to receive the Stock-Back debit card, and begin investing. You have the option to create and track your goals using the Stash app.
One minor drawback is the fees, as with any micro-investing app, are the biggest drawback of Stash. The subscription fees per month can add up if you have a low balance. The annual average expense ratio is roughly .25%.
Learn more about Stash or read our full review.
Public
This is a micro-investing app that incorporates the use of the social networking community with investing. It uses social networking as the basis for swapping strategies and learning from others.
Public is the easiest way to invest. You can invest in stocks, ETFs, and crypto-all in one place with any company and get their take on new money, wrapping up your earnings neatly at monthly intervals so that you don’t have to worry about throwing away all of your cash on material things.
It’s like an investment buffet where all of your favorite individual stocks are united in one easy-to-manage account with no minimum balance requirements and commission fees. All you need is a slice of Public, some greasy fries (tip not included), and the best TV binge ever.
You only pay fees when purchasing shares. There are no membership levels, no account fees, and you can begin using your account when you sign up.
The signup process is easy and convenient. You can sign up through the mobile app available from the Apple Store or Google Play Store.
The biggest drawback of the app is the risk of following advice from strangers about strategy and investing.
Learn more about Public or read our full review.
SoFi Invest
No account minimum and you can start investing with $1? Sign me up!
SoFi (social finance) is a financial planning company formed in 2011 and offers various products, including micro-investing. SoFi allows you to trade online through their app when you want and what you want. This micro-investing app is designed for Millennials looking for a lot of perks.
SoFi Invest is perfect for newbies who want to be hands off without sacrificing returns. You’ll still have plenty of options though – if you’re more adventurous and want control, go ahead and customize how your fund performs by adjusting frequency, risk tolerance, investment view, holdings duration, and cash flow strategy.
With this money-saving feature the only thing that will cost you is an ACAT transfer fee when transferring outside funds into your share class account through an ACH bank-to-bank or wire payment method – seriously easy stuff for any price-sensitive investor out there.
There are no account or asset management fees, and you do not need a minimum account balance to get started.
There are two options for signing up with SoFi Investing:
SoFi Active Investing – Allows you to control what you invest in based on your preferences, including the risk level you are comfortable with. You have access to a community of micro investors like yourself, certified financial planners, and other valuable resources at no cost.
SoFi Automated Investing – This is a more hands-off approach allowing you to use an automated platform to build and manage your portfolio. You receive the same perks offered with SoFi Active without investing time in researching and managing your portfolio.
You can sign up for SoFi Investing using a desktop or their mobile app. You will be asked for basic information. The signup process, including creating your account and scheduling a deposit, takes about 2-5 minutes to complete. It takes 1-2 business days for funds from your deposit to post to your account after your account is approved.
On the downside, SoFi does not offer tax-loss harvesting, and it has a limited track record compared to other micro-investing providers.
Learn more about SoFi Invest or read our full review.
Stockpile
This is a micro-investing app designed for young beginner investors who need something simple to get started with investing. You can access this app through a web-based browser or a device using iOS or Android operating systems.
Stock options can be complicated, but Stockpile makes it easy. With their fractional shares, you’ll have an easier time growing your investment portfolio and don’t have to worry about commissions.
It’s a great option for kids who want to get started early with their own investing or do so on behalf of others as well. When you’re ready to buy the gift that every investor loves, they offer physical stocks in addition to gift cards plus support from their customer service team if you need any assistance along the way.
There are different ways to fund a Stockpile account, link your bank account, and redeem a gift card. You can connect your checking account to move money in and out of your Stockpile account free of charge or use your debit card for a 1.5% convenience fee. If you use your debit card to fund your account, it is done instantly. Using your checking account takes 3-5 business days.
Gift cards cost $2.99 for the first stock. Additional stocks are $.99 each. Purchasing gift cards with credit or debit have an additional fee of 3% of the gift card’s value. Physical plastic cards cost an additional fee ranging from $4.95 – $7.95, depending on the card’s value.
The cost to trade on Stockpile is $0.99 per buying/selling trade. There are no annual or account management fees associated with the account.
The process for opening a Stockpile micro-investing brokerage account is simple. You create an account by providing basic information, fund your account, and begin choosing from the available stocks and ETFs.
Despite the user-friendly interface and simplicity of this app, there are drawbacks. This includes limited account and investment options and minimal tools available to analyze and research stocks.
Learn more about Stockpile.
Summary of the best micro-investing apps for Millennials
App
Minimum to start
Unique features
Acorns
$0
Family plan includes a checking account, retirement account, and custodial accounts for children
Robinhood
$0
Invest in cryptocurrency
Betterment
$0
Tax-loss harvesting
Twine
$0
Shared savings and investment goals for couples
Stash
$0
Get “stock-back” on debit card purchases
Public
$0
Follow and engage with others a la social media, only with investments
SoFi Invest
$0
Ability to connect with Certified Financial Planners
Stockpile
$0
Buy stocks with any dollar amount
How we came up with our list of the best micro-investing apps for Millennials
When we were looking for apps to include on this list, there were a few things we wanted to focus on. Before you decide on an app, you need to compare different brokerages and what they have to offer. That said, we looked at apps that had strong reviews, were easy to navigate, and most of all, had little to no fees, including:
Withdrawal fees.
Cancellation fees.
Transaction or investment fees.
Account opening fees.
Monthly or annual fees.
Expense ratio fees.
You want to make sure that you know the actual cost of micro-investing apps and how fees are charged. This includes a flat rate or percentage of transactions.
What is a micro-investing app?
Micro-investing is a way to invest without needing a lot of money to get started. These apps are designed to get the younger generation involved with investing and overcome barriers that prevent Millennials from investing. The funds placed in these accounts are used to invest in fractional shares or ETFs.
Depending on the micro-investing app you select, you can link your debit card and have purchases that you make with the card rounded up to the next dollar then deposited into your account. You can also have automatic transfers of a specific amount placed in the account. A few apps will monitor and analyze your spending and earnings and set money aside that can be transferred to your account to purchase micro shares of ETFs or fractional shares of stock.
Why should you use a micro-investing app?
Micro-investing is a new platform when it comes to investing. However, it is gaining popularity among Millennials that don’t have a lot of money to invest. The main feature of this type of platform can invest micro amounts of cash. Other features are considered bonuses.
Here are other benefits of micro-investing:
Automated process including rebalancing portfolio and transfers of funds to a portfolio account.
Minimal management fees.
No minimum requirements to begin investing.
Some providers have an option for purchasing fractional shares.
Most apps allow you to manage your account from an iOS or Android device.
Why shouldn’t you use a micro-investing app?
If you’re a more advanced investor and you want more control over the individual stocks you invest in, a micro-investing app may not be the right option for you. Micro-investing apps are designed to make investing easy and accessible to newer investors (or investors who don’t want to deal with the hassle). That often comes at the cost of lacking some features more advanced investors would enjoy – like stock charts and the ability to do intense analysis.
Most important features of a micro-investing app
When you’re looking for an excellent micro-investing app, there a few key features you need to be aware of:
Good reviews
The first thing you’ll notice when you download the app is the number of customer reviews and how well the app is rated. It helps to look through what other customers are saying about the app before you decide on one. For example, some apps get buggy with new versions or newer phones.
Clean interface
The last thing you want when you’re trying to simplify your investing experience is a cluttered interface that makes investing confusing. Look at the screenshots of the app. Download it to play around with it. Watch videos of it on YouTube. Get a sense as to whether it will be easy for you to use before deciding.
Little to no cost
Most micro-investing apps make their money in ways that aren’t hitting you. Meaning, they might not pay an interest rate on your balance (and instead take that for themselves), or they might collect interchange fees when you use your debit card. Either way, micro-investing apps shouldn’t cost you an arm and a leg, so be sure to understand the pricing structure before you sign up.