One of the biggest wealth transfers in history is about to unfold.
That is, it’s estimated that more than $68 trillion in wealth – involving 45 million households across the U.S. – will be transferred through inheritance in the next 25 years.
Will you be one of them?
If you’re a Millennial or a Gen Zer, chances are you may be in the group of Americans most likely to benefit from this massive transfer.
If so, you’ll need to know how to plan for an anticipated inheritance, even if you’re not sure of the details.
What’s Ahead:
1. Have a rough idea of the amount that you are set to inherit
Though this seems like a simple step, it often isn’t.
Not all parents or grandparents are open about their personal net worth (it’s a generational thing). And asking how much you can expect to inherit – or, if you’ll be inheriting anything at all – can seem presumptuous at best, and greedy at worst.
Some parents and grandparents will be open to this question. Some may even provide the information without you asking. But if that’s not your situation, you’ll need to proceed carefully and delicately.
How do I find out how much I will inherit?
You probably already have an idea of your parents’ approximate net worth, but if you don’t, don’t beat yourself up. After all, it isn’t always that obvious on the surface.
The best way to find out?
Just ask.
If your parents aren’t forthcoming about their finances, you’ll need to step back. That doesn’t mean giving up, however. You can let some time pass, then approach the subject later. Just be sure to frame it in such a way that you’re interested in protecting all they’ve worked so hard to accumulate.
2. Learn what makes up the inheritance
Some estates are very simple, while others can be incredibly complicated. The best scenario is a parent who rents his or her home (no house to sell) and has nearly all wealth sitting in financial assets, like bank and brokerage accounts.
Things get way more complicated when a large share of the estate is held in real estate, and especially investment real estate. More complicated still is business equity.
Collectibles, like jewelry and artwork, can also be problematic. You’ll first need to get a ballpark estimate of the value. But before they can be sold, they may need to be formally appraised.
Just as important, your parents may prefer to pass real estate, business interests, or collectibles to specific individuals. That may or may not include you, which is something you need to know before you plan to inherit them.
3. Know if there are other beneficiaries
This is as delicate an issue as requesting the value of your parents’ estate. If you are the sole beneficiary, it’s a non-problem. But if there are siblings, or others your parents may want to distribute assets to, the waters can get a bit muddy.
In a perfect world, your parents will set up an equal distribution for you and your siblings. But real life isn’t always so simple.
For reasons known or unknown to you, your parents may choose unequal distributions. This can be due to family politics, like one sibling being favored over the others, or one sibling being closer to your parents than others. In some situations, parents may choose to give a larger share to a child who provides for their direct care in their later years.
There may still be other situations where your parents want to make special provisions for one of your siblings or even a grandchild.
Yes, it can get worse!
But those aren’t even the most complicated beneficiary situations.
Given that divorce is common, and often involves a second set of children, there may be issues and limitations.
In some extreme situations, parents may disown one or more children, and exclude them from the inheritance. If that might be you, you’ll need to know.
Finally, complicated family situations can result in probate. That’s where the estate has to go before a judge prior to distribution. This can happen because of the nature of the family situation, or because one or more potential beneficiaries (or even an excluded party) challenge the distribution of the estate proceeds.
If that situation seems likely, it’s one that should be discussed with your parents. They may need to set up a trust to ensure each beneficiary gets the intended distribution so the estate can avoid probate.
4. Understand the intended distribution process
This primarily has to do with the timing of inheritance distributions. While the conventional distribution method is to distribute all beneficiary shares on a common date when the estate is settled, that’s not always the case.
Parents sometimes arrange to have estate assets distributed gradually.
For example: if one or more beneficiaries is considered to be irresponsible with money, the parents may set up a staggered distribution over a period of several years.
A staggered distribution is often accomplished through a trust. If your parents have set up a trust, either for part or all of the estate, you’ll need to know of its existence, as well as the intended distribution.
Some trusts are even more specific
For example, they may include provisions that will distribute funds based on certain milestones. Common examples include holding distributions until the beneficiary turns 30 (or some other age), or gets married (or divorced, if the marriage is shaky).
Trusts can be amazingly specific, which is why people set them up. That’s also why you’ll need to know any distribution method that will be used.
Some estates may also have provisions to make staggered distributions based on asset types.
For example: cash-type assets may be distributed early in the estate process. But real estate and business interests may not be distributed until they have been liquidated.
5. Estimate your personal finances at the anticipated time the inheritance happen
A big part of how you handle an inheritance will be determined by your own financial situation.
If you already have a sizable personal estate, you may be able to simply fold the inheritance into your existing plan. But if your finances are limited, you may need to be more intentional and figure out what you’re going to do with the inheritance when it arrives (ya know, so you don’t blow it all on a bright red Mustang).
The point is, only when you have a clear picture of your own finances can you make the best use of an inheritance. And to get the greatest benefit, it can help to improve your finances before you receive the money. The better positioned you will be when the inheritance comes in, the more flexibility you’ll have in choosing where to allocate the money.
If you’ve not been investing up to this point, you may want to begin before the inheritance comes in. It’s best to get investment experience with a small amount of money, so you don’t risk losing your windfall through poor investment choices.
Read more: Best Investment Accounts For Young Investors
6. Design a plan (aka what to do with the inheritance)
If you already have your own personal financial plan, planning for an inheritance will be much easier. But even if you do, you should have at least a loose plan for what to do with the new money. The worst choice is holding off until the inheritance is received. Without a solid plan, you may quickly draw down the new money, financing a series of wants.
Having a plan for the inheritance will ensure the money will provide for a better future. To learn how to set up a financial plan, check out our article: What Is A Financial Plan And Why Do You Need One?
Decide what your priorities are
The main purpose of a plan is to set up a series of priorities.
For example: if your retirement planning isn’t where you want to be, you can make it a priority to fix that with the inheritance. You can either use the new money to enable you to make larger retirement plan contributions or plan to set up an annuity specifically for retirement.
Take advantage of annuities
One of the advantages ofannuitiesis that they can be used to shore up an adequate retirement plan.
Read more: What Is An Annuity And Should You Consider One?
The investment earnings on annuities accumulate on a tax-deferred basis, like retirement plans. But the major advantage is that there are no limits to your contributions. You can make a single, large lump sum contribution to an annuity and let it grow tax-free until retirement. You can set a date that distributions will begin, which can even cover the rest of your life.
In addition, Dr. Guy Baker, CFP and founder of Wealth Teams Alliance, also points out:
“Annuities are a fixed-income alternative. The opportunity to get a market return with no downside risk can be dramatically better than the income from an investment-grade bond of comparable risk. The amount to put into an annuity should coordinate with the age of the beneficiary and the investment objectives. In general, an indexed annuity can provide significant benefits for no additional risk.”
However, since annuities are complicated instruments themselves, you’ll need time to do research and evaluate the best one to take. That’s best done in advance of receiving an inheritance.
Consider starting your own business
In a different direction, maybe you’ve been dreaming of starting your own business. If you lack the capital to do that up to this point, the inheritance can make it happen.
In the meantime, you can make preliminary plans for the business, andeven get it up and running as a side hustle. When the inheritance arrives, you’ll have an established business to grow, rather than starting a new one from the ground up.
Starting a business is always risky, though, so make sure you carefully consider such a big move if/when you do receive an inheritance.
Read more: How To Start Your Own Business – A Complete Step-By-Step Guide
7. Find out if there will be tax consequences
You’ve undoubtedly heard the saying,
“the only things certain in life are death and taxes.”
Well, guess what? Sometimes the two happen at the same time.
Officially, they’re called inheritance taxes. Because estates can contain a lot of money, governments view them as rich revenue sources. Just like they tax your income, your home, your utility bills, and even your purchases, there are taxes designed to snatch a part of an inheritance before you receive it.
There’s good news and bad news here.
Let’s start with the good news…
There is a federal inheritance tax, but the good news is that it only applies to very large estates.
Under current IRS regulations, estates that transfer from one spouse to another are generally tax exempt. But even when they pass to other beneficiaries, like children and grandchildren, there’s a federal estate tax exemption of $11.7 million, for 2021.
That means if the total value of the estate (before distribution) doesn’t exceed $11.7 million, there’ll be no federal tax on the inheritance.
Now for the bad news…
18 states impose some type of state-level inheritance tax. And while some of those states match the federal estate exemption, there are no fewer than 13 with lower exemptions.
On the low-end, Massachusetts and Oregon can tax estates as low as $1 million. Rhode Island sets the threshold at $1,595,156.
Not many Americans have a net worth of over $11.7 million. But there are many millions with estates of $1 million or more. Even if you’re not affected by the federal estate tax, you may be subject to it at the state level.
If any of the estate tax thresholds may apply in your situation, whether at the state or federal level, you’ll need to be prepared for this outcome.
So make sure you estimate for a lower inheritance
The best strategy is to estimate a lower inheritance, based on applicable estate tax rates. Fortunately, the estate will pay the inheritance tax before the money is distributed. But you still need to be prepared for a lower distribution amount.
If your parents are open about your inheritance, you may even be able to discuss the tax consequences with them. That way they’ll be in a position to take action to minimize them before the fact.
8. Decide if you’ll need a financial planner
If you believe your net worth is too small to justify a financial planner right now, you may change your mind when you receive a large inheritance. But you don’t have to wait until the inheritance arrives to at least consult a financial planner.
If you know the approximate size of your inheritance, paying for a meeting with a financial planner may be money well spent. The financial planner can help you to make decisions to both set up your current finances in anticipation of the inheritance, as well as to make intelligent decisions when it actually comes.
The financial planner may also provide ideas you may want to convey to your parents. They’re often unaware of strategies that will minimize inheritance taxes, or create a strategic plan for a more successful distribution of the estate.
In addition, if there may be questions surrounding the estate, perhaps involving the children of a previous or subsequent marriage, the financial planner may recommend consulting with an estate attorney.
The more you can do in advance, the less likely it is you’ll be blindsided when the inheritance arrives and the stakes are higher.
Read more: Are Certified Financial Planners Worth The Money?
9. Decide if you’ll need a trust
If you don’t have one now, receiving a large inheritance might make a trust advisable. It may even be completely necessary if the inheritance is particularly large, or if you yourself have children from a previous marriage.
A trust is a way to protect your assets, and to ensure the money is distributed as you wish upon your death.
Shawn Plummer, CEO of The Annuity Expert, explains further:
“You may need a trust if you want to specify how your assets will be distributed without a probate court getting involved. While a will can achieve a similar purpose, wills have to be authenticated by a probate court and can require more time and money.”
Just as important, a trust has the potential to protect your assets from seizure by creditors, or from litigation. With the larger personal estate the inheritance will create, you may need just that kind of protection.
And don’t worry, you won’t need to pay an arm and a leg to get these documents drawn up. Trust & Will offers estate planning help with plans starting at just $39. This can help you avoid racking up a high bill with an estate planner.
Summary
You’ve probably known of situations where someone came into a large windfall, only to be broke a few short years later. Unfortunately, it’s not an uncommon outcome.
The sudden arrival of a large amount of money can cause an unprepared recipient to blow what could be a life-changing opportunity. It could have the potential to dramatically improve your finances and your life.
You’ll need a plan to make that happen, and it’s never too early to start drawing one up.
Mortgage rates are holding steady so far this week. It’s no surprise, really, as there’s been very little meaningful economic data out these past two days.
Tomorrow, though, we get a few notable releases so there’s definitely the chance that we’ll get a market reaction.
Long-term rates are still expected to rise, which is why we’re recommending that borrowers lock in a rate soon. Read on for more details.
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Market Outlook 5.21.18 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates still holding steady
There’s not much economic data out, keeping market movement fairly muted today. The yield on the 10-year Treasury note, which is the best market indicator of where mortgage rates are going, is flat on the day at 3.06%.
That’s very close to the seven year high that it briefly hit on Thursday. Depending on who you talk to, there’s plenty of room left to run for the 10-year yield.
With the Federal Reserve getting ready to raise the nation’s benchmark interest rate, the federal funds rate, at least two more times in 2018, some analysts are saying the 10-year yield could easily hit 4.00%.
With mortgage rates closely tied to the bond market, that would put significant upward pressure on rates.
This isn’t anything new to anyone who’s been paying attention to the market this year; back in January we had many projections for the 30-year fixed rate to go as high as 5.00% by the time 2019 rolls around.
In the Freddie Mac Primary Mortgage Market Survey last week we saw the average rate on a 30-year fixed rate move up to 4.61%. That’s up sixty-six basis points from the start of the year.
We’ve still got another thirty-nine basis points to climb before 5.00%, but that could easily be covered over the next seven months.
Rate/Float Recommendation
Lock before rates move even higher
With mortgage rates on track to climb higher and high over the coming weeks and months, we believe that it makes sense to lock in a rate on a purchase or refinance sooner rather than later.
Learn what you can do to get the best interest rate possible.
Today’s economic data:
Richmond Fed Manufacturing Index
The Richmond Fed Index hit a 16 in May. That’s a strong reading that is right on the brink of escaping the high end projection.
Notable events this week:
Monday:
Chicago Fed National Activity Index
Fedspeak
Tuesday:
Richmond Fed Manufacturing Index
Wednesday:
PMI Composite Flash
New Home Sales
EIA Petroleum Status Report
FOMC Minutes
Fedspeak
Thursday:
Jobless Claims
FHFA House Price Index
Existing Home Sales
Kansas City Fed Manufacturing Index
Fedspeak
Friday:
Durable Goods Orders
Consumer Sentiment
Fedspeak
*Terms and conditions apply.
Carter Wessman
Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.
The Community Home Lenders of America (CHLA) submitted a letter to the Consumer Financial Protection Bureau (CFPB) in support of changes to the loan originator compensation rule, telling CFPB Director Rohit Chopra that the current rule’s “inflexibility” in certain areas is a “detriment” to consumers.
The letter calls for increased flexibility in LO compensation restrictions, which would “[benefit] consumers without opening loopholes that would allow for anti-consumer practices,” according to the letter.
The CHLA is calling for “for flexibility from the strict prohibition against variations in LO compensation” in three areas, according to the letter: state housing finance agency (HFA) bond loans; “truly competitive situations” in order to enable a lender to match a price offer; and error on the part of the loan originator.
State HFA bond programs are more complex than other single-family loan options, which means that HFA loans are more expensive to manufacture.
Prior to the implementation of the CFPB LO comp rule, it was common for lenders to absorb the higher costs by reducing the fee to the originator. However, the CFPB rule does not currently allow for this.
“The inability to reduce loan originator compensation to offset HFA production costs under the current LO Comp rule harms consumers by discouraging lender participation in these vital programs,” the CHLA states in the letter. “Moreover, because HFA loans are generally more costly to underwrite and therefore less profitable, providing LO comp flexibility for such loans does not create financial incentives to steer borrowers to higher-priced loans.”
The CHLA also contends that “an overly restrictive limitation that compensation may not vary” interferes with the broader objective of increasing competition and consumer choice.
“Many lender groups have for some time argued for targeted flexibility for loan originators in this situation, typically asking for such flexibility when there is ‘demonstrable price competition,’” the letter states.
To address this while ensuring “demonstrable price competition,” the CHLA recommends five criteria to address concerns while also allowing for comp reductions: an agreed-upon compensation schedule between the lender and originator; facilitating borrower comparison shopping after the current lender has provided “substantial assistance” with finding the right loan option; the original lender matching the offer of the competitor; a lender not making regular use of this flexibility; and logging that all preceding requirements have been met.
In regard to comp reduction for LO mistakes, the CHLA says that a lender should have the authority to reduce compensation based on the cost incurred by the mistake.
“This is based on the simple principle that loan originators should take financial responsibility for their errors,” the letter states.
The CFPB issued an official request for comment in March as it conducts a review of Regulation Z’s mortgage loan originator rules. The goal for the CFPB is to understand the economic impact the rules have on smaller businesses in the mortgage space.
Central banks have ramped up their hawkish rhetoric this month but for bond bulls, that’s a good thing.
Investors are piling into longer-dated notes on bets that policy makers will succeed in taming inflation, an outcome that will deliver strong and stable returns on debt. Benchmark 10-year Treasury yields have fallen 10 basis points this year to 3.77% even after the Federal Reserve jacked up interest rates aggressively and vowed to keep hiking.
Undeterred by a record 12% loss in U.S. bonds last year, investors are wagering that central banks will finally be able to get a handle on inflation as growth slows and supply chain disruptions ease. They risk being caught flat-footed if price gains prove to be more stubborn than expected, forcing authorities to keep borrowing costs higher for longer.
“We are in an ironic situation where the more hawkish central banks are in hiking rates, the better it is for inflation credibility and long-term yield stability, assuming that there are no fiscal upsets along the way like in the UK last year,” said Chang Wei Liang, a strategist at DBS Bank Ltd. “This is true if markets see long-term inflation expectations as being anchored at close to 2%, and if they view long-term growth rates to be no higher than what they are today.”
Analysts in a Bloomberg survey predict that the 10-year U.S. yield will decline to 3.39% by year-end. Treasuries have lost almost 2% over the past three months, paring this year’s gain to about 1.6%, according to a Bloomberg index.
“A 10-year Treasury is sort of 10 years of patience to average out where the policy rate will be — the bond market is believing that this inflation was an aberration,” Steven Wieting, the New York-based chief investment strategist at Citi Global Wealth Investments, said at a briefing in Singapore. “We’re not headed to 4.5% or 4.25% even — I think that we will be headed somewhat lower in yield levels.”
Recent declines in bond markets were focused at the short end as central banks from the UK to the US vowed to keep up the fight against inflation, damping expectations that policy makers can soften their stance as price pressures ease.
There may also be other factors in play that are propping up demand for longer-dated notes.
“Large pools of pension funds with long-dated liabilities will need to be invested in long-dated bonds no matter what, and tail risks of a recession could also lead to hedging with long-term bonds,” said DBS’ Chang.
Traders in forwards markets are also recalibrating their bets to reflect the confidence in central banks. They expect 10-year Treasury yields to rise about 60 basis points over the coming year, near the bottom of the three-month range. The projection at the start of 2023 was for an increase of more than 100 basis points.
“While hawkish central banks and recent more aggressive hikes from some have pushed up front end yields, long-end bonds have been stable, not due to recession fears so much, but comfort that policy makers are serious about bringing inflation down,” said Khoon Goh, head of Asia research at Australia & New Zealand Banking Group Ltd. “In short, it is a vote of confidence in the credibility of central bankers.”
This page contains calculators to help reveal the benefits, drawbacks and differences of investing in U.S. savings bonds — I or EE — versus Treasury bills, bonds or notes.
Issuing debt in the form of bonds is one way the U.S. government raises money to fund its operations. U.S. debt securities are guaranteed by the government, and offer the benefit of being “risk-free” if held to maturity. They’re also state and local tax-free. (You still owe federal income taxes on interest earned.) The following calculators include:
Savings bond calculator
Savings bonds are long-term investments with maturities of up to 30 years. They can be bought for as little as $25, and differ from other government investments in that they can be gifted. (You can name someone as the co-owner and beneficiary.) If you received a paper savings bond as a gift and don’t know what to do with it, head to TreasuryDirect to see the value of your paper savings bond and learn how to cash out your investment.
Savings bonds are known as a “zero-coupon bond,” meaning instead of receiving ongoing interest payments, you receive a lump sum upon cashing out. They’re a type of investment bought at a discount, and upon maturity, you’re repaid the face value of the bond. The difference between the discount price and face value is your profit or “interest” earned.
Savings bonds come in one of two types: EE and I. EE bonds guarantee to double your money if held for 20 years, and their maturity may be extended to 30 years. They can be bought in penny increments from $25 to $10,000 per year per Social Security number.
I bonds are the other main type of savings bond and can be purchased in amounts from $25 up to $10,000 in electronic bonds and $5,000 in paper bonds per year. I bonds differ from EE bonds in that they earn an interest rate that adjusts for inflation.
Both types of savings bonds may be sold 12 months after purchase, but if sold before year five, investors will lose three months’ worth of interest. Unlike other types of government securities, savings bonds cannot be resold or traded.
I bonds calculator
🤓Nerdy Tip
Savings bonds require a Social Security number to purchase, while Treasury securities require a taxpayer identification number. To invest in U.S. government bonds without these forms of documentation, learn more about government exchange-traded funds (ETFs).
Treasury bond and note calculator
U.S. Treasurys are types of government debt securities that vary in their interest rates, duration, risks and yields. Treasury bonds are another long-term debt security, maturing in 20 or 30 years. Treasury notes mature in two, three, five, seven or 10 years, and the 10-year Treasury note is one “risk-free” benchmark against which other investments are compared.
Treasury bills calculator
Treasury bills (T-bills) are the shortest-term U.S. debt security. The 3-month bill is often used as the short-term benchmark for what is considered “risk-free.”
Maturing in less than one year, T-bills differ from other Treasurys in terms of their interest rate structure. Treasury bills are a zero-coupon bond like savings bonds. Use the calculator below to explore how this works.
Standard Bank says struggling customers have home loans of less than R1.5 million. Many are first-time home buyers with incomes between R15 000 and R40 000 a month.
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Standard Bank says customers with home loans of less than R1.5 million have felt the most pressure from a rapid rise in interest rates.
Many are first-time home buyers with incomes between R15 000 and R40 000 a month.
Home loans that the bank wrote in 2020 – when many of its peers switched off their lending taps – had been performing the best.
For more financial news, go to the News24 Business front page.
Standard Bank says customers with home loans of under R1.5 million are battling the most with a rapid rise in interest rates that pushed up their bond repayments by more than a third.
But Africa’s largest lender, which warned on Tuesday that its impairment charges rose by almost 50% in the first five months of 2023, says its decision not to turn off the lending taps during the height of Covid-19 has also paid off, with market share gains among the more affluent.
During a call with analysts on Tuesday evening, the bank said cases referred for debt review have climbed more than a fifth as a rise in interest rates saw more clients struggling to pay their instalments.
Typically, households spend a maximum of around 28% to 30% of their income servicing their home loans.
However, given that the South African Reserve Bank has hiked rates by 475 basis points since it began its tightening cycle in November 2021, this percentage has increased for many households.
A customer who received a R1 million home loan at a prime lending rate of 7% with no deposit in 2020 or 2021 now pays 40%, or R3 000 more.
CFO of Standard Bank’s Consumer and High Net Worth Clients franchise, Lihle Ngema, said on Tuesday “pockets” of customers with home loans of under R1.5 million were under the most pressure.
Ngema said interestingly, though, the home loans that the bank wrote in 2020 – when many of its peers switched off their lending taps – had been performing the best.
Losses and gains
Standard Bank and Absa grew their secured lending books drastically in 2020, taking advantage of the record-low interest rates that brought a new calibre of first-time buyers to the property market. Ngema said that as other banks tightened their lending appetite, Standard Bank used that opportunity to take low-risk clients from them.
“Those [2020] home loans have actually been our best vintages,” she said. “What’s quite important is that in the last couple of years is that we’ve been very targeted in terms of the clients. It has been largely within the affluent segment.
“The average income in terms of our lending has been to people earning over R60 000 on a monthly basis,” she added.
But Standard Bank also grew its market share among first-time buyers. Standard Bank’s CEO for the Consumer & High Net Worth Clients division, Funeka Montjane, previously told News24 that around 60% of home loans the bank wrote before the recent hiking cycle went to first-time buyers. This was mostly young black women who bought homes worth about R1 million.
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But the bank assessed buyers’ affordability by assuming a higher interest rate than the prevailing one.
Ngema said that of those customers, people with salaries between R15 000 and R40 000 a month are under pressure now.
“But more broadly, what we are also seeing is an increase in the flow to debt review, which you would expect in this sort of market. Debt review across the portfolio is up 22% from this time last year,” she noted.
READ | Don’t fall for big-talking debt counsellors, Capitec and others warn
But Standard Bank Group Financial Director Arno Daehnke said the bank has enough coverage if more customers struggle to service their home loans. This is the case even if there is another 25 basis point hike in 2023, which the group expects.
“Of course, if we have a worst-case scenario playing out, with many more interest rate hikes, that might put additional pressure on the portfolio. But on the base case scenario, we remain confident that we’ll be within the [targeted credit loss ratio] range,” he said.
The base case scenario Standard Bank has modelled includes only one more interest rate hike of 25 basis points in July. The bank also said that if more customers fall on hard times, it has programmes in place to help them keep their homes.
Know the minimum amount to open a savings account and understand any savings account fees before you get started.
June 23, 2023
If you’re looking for a way to safely store your savings while also allowing your money to grow through compound interest, a savings account could be for you. Savings accounts are ideal for building an emergency fund and saving for your goals. But before you open one for yourself, you’re probably wondering: Does it cost money to open a savings account? And if so, how much is it to open a savings account?
As you evaluate different savings accounts, take note of any initial deposit requirements, minimum balance rules, and potential fees before landing on the right one for you.
Understand the value of savings accounts
For all their simplicity, savings accounts provide many benefits to help you reach your financial goals. With a high-yield savings account, for example, you can:
Keep your savings secure
When it comes to your savings, safety and security are often a top priority. If you open a savings account at a financial institution insured by the Federal Deposit Insurance Corporation (FDIC), you can rest easy. That’s because FDIC insurance protects up to $250,000 per depositor, per insured bank, per deposit ownership category, and that maximum applies for each bank you have an account with, as long as the bank is an FDIC member. (Discover Bank is an FDIC member.)
Another safety advantage: Money in a savings account isn’t affected by swings in the stock or bond markets. So you’ll never have to worry about market turmoil draining your account.
Watch your money grow
Your money doesn’t just sit in a savings account—it grows with the help of compound interest. Compound interest allows you to earn interest not only on your initial deposit but also on any interest that your account accumulates.
The power of compounding can lead to some significant gains down the road. For example, say you put $5,000 into a savings account today with a 3.75% annual percentage yield (APY), which compounds monthly. In 10 years, without putting additional money into the account, your savings will have grown to just over $7,270. (That assumes the interest rate stays fixed at 3.75%, but interest rates can and do change over time.)
Using that same example, let’s say that instead of just letting your money sit there and grow, you add $100 to your account each month. In 10 years, you’d have about $21,800. That’s the power of compounding and diligent saving at work. (Feel free to experiment with the numbers using a compound interest calculator.)
Call it a sunny day fund—online savings with no monthly fees
Discover Bank, Member FDIC
Easily access your funds
Savings accounts provide account holders a convenient and accessible place to keep their money. Whether you’re managing your account from a computer, tablet, or mobile app, most financial institutions will allow you to move money into and out of your savings account with ease. Just make sure you know your bank’s withdrawal limits regarding your specific savings account. Exceeding those limits could lead to fees, which can eat into your savings.
Consider minimum deposit requirements
Some banks have a savings account minimum deposit, while others set a minimum balance threshold. Some banks even require both.
As you consider the savings account that’s right for you, make note of these two common requirements:
Minimum initial deposit
This is the minimum dollar amount needed to fund the savings account via the initial deposit. Choosing a bank without a minimum is always an option, though. For example, Discover Bankdoesn’t require a minimum amount to open a savings account.
Minimum balance requirements
Sometimes banks will require you to maintain a minimum amount in your savings account. And if you don’t? You could get hit with a monthly fee on your savings account. The Discover Online Savings Account has no online savings account minimum balance requirements, but some other banks do, so be mindful.
If you’re just starting out on your savings journey, having to abide by any minimum requirements can make a difference. Pay close attention to make sure you open a savings account that’s the best fit for you.
Look out for savings account fees
When choosing a savings account, make sure you know about any savings account fees that could be triggered. Here are three to look out for:
Savings withdrawal limit fee
In 2020, amid the pandemic, the Federal Reserve suspended Regulation D, which had limited transfers or withdrawals on savings accounts to six per month, according to Bankrate. While that means the federal government isn’t currently regulating the maximum number of withdrawals or transfers an account holder can make, individual banks may have their own rules and may impose a fee if you exceed their limits.
If a financial institution does have savings withdrawal limit fees, you can avoid them by learning how many transactions (such as third-party transfers, bill payments, and bank transfers) your bank allows each month.
Insufficient funds fee
Just like a checking account, your savings account may incur a fee if you withdraw more than what’s available. To prevent this, monitor your account balance closely by keeping track of all withdrawals and transfers. If you want more of a hands-off approach, look for a savings account with overdraft protection, such as the Discover Online Savings Account, which doesn’t impose insufficient funds fees.
Monthly maintenance fee
Discover Bank never charges monthly maintenance fees, which can be incurred if certain requirements, such as minimum balances, aren’t met. Be sure to look into what conditions could activate monthly savings account maintenance fees at your bank so you can avoid them. (Or choose a bank that doesn’t have them at all.)
Find the savings account that’s right for you
While everyone’s financial needs differ, it’s a good idea to keep some key features in mind when researching potential savings accounts. Here are a few tips as you make your decision:
Look for low (or no) fees
If you can, find a bank that doesn’t charge excessive fees (or, ideally, any). When you’re trying to build up your savings, savings withdrawal limit fees, insufficient funds fees, and savings account maintenance fees can add up quickly.
Seek a high rate of return
Look for a savings account with a favorable interest rate so your money can grow as quickly as possible. High-yield savings accounts like the Discover Online Savings Account can offer a significantly higher annual percentage yield than the national average.
Assess the services offered
In these days of online banking, it’s all about convenience. So look for an easy-to-use mobile app, 24/7 customer service, and other services that are important to you.
Ready to open a high-yield savings account with no fees or minimums?
Whether you’re trying to build an emergency fund or save up for a big goal, a savings account can help you get there. Now that you have a complete understanding of high-yield savings account minimum deposits, fees, and interest rates, you’re ready to make the right decision for you.
If no fees and a high yield sound good to you, check out the Discover Online Savings Account to see how it can support your goals and fit your lifestyle.
Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third-party or information.
Inside: Looking for fun things to do with friends? Look no further! This guide has 101 fun activities for you and your friends to enjoy. From painting parties to bowling nights, there’s something for everyone.
Do you ever feel like you’re in a rut, doing the same things with your friends all the time?
If you’re looking for some new ideas for fun things to do with friends, look no further!
We’ve compiled a list of fun activities for friends to do so you can find something that fits your mood.
Whether you want to get active and try something new, or stay in and relax together, we’ve got you covered.
So round up your besties and get ready for some fun!
Why spending time with friends is important
Spending time with friends is an essential aspect of human life. It provides us with an opportunity to bond, socialize, and create lasting memories.
The benefits of spending time with friends are numerous, and they range from improving our social skills to reducing stress levels.
By participating in activities that allow us to spend quality time with our friends, we will have better overall mental health.
What should friends do for fun?
There is no one answer to this question, as friends can have different interests and preferences.
However, some fun activities that friends could do together include going to the movies, playing sports, going out to eat, or attending a concert.
That is why we will cover so many various ideas for you and your friends!
The fun things to Do with Friends
We all know the importance of having friends in our lives. They are the people we rely on and confide in. They make us laugh, help us when we’re down, and are always there for us.
If you are wondering what should I do today, then we have you covered.
So, it’s important to have plenty of fun things to do with friends as well.
1. Go on a Scavenger Hunt
Scavenger hunts are a popular group activity that can be enjoyed by friends of all ages.
Planning and executing a scavenger hunt with friends can be a fun and engaging way to spend time together.
To get started, choose a location that offers a variety of interesting sights and sounds.
Next, create a list of items to find, such as a red bicycle or a funny sign.
Divide into teams and set a time limit for the hunt.
Use a special hashtag and have each team post a pic every time an item is found.
Nowadays, you can even buy a scavenger hunt kit to make it easier!
2. Play Board Games
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Board games are a great way for friends to have fun and connect with each other.
Some popular board games include Scrabble, Chess, and Monopoly, but there are many other options to choose from. Card games like poker and blackjack are also great choices. Party games like Charades and Apples to Apples can bring a lot of laughter and enjoyment.
Board games provide an opportunity for friends to engage in friendly competition, improve their strategic thinking and social skills, and have a great time together.
So, gather your friends, choose one of the best-selling board games, and let the fun begin!
3. Explore street food
Exploring street food with friends is an exciting way to satisfy your taste buds while spending quality time with your loved ones. From food trucks to pop-up stands, there are plenty of options to choose from.
Here are three street food examples that are worth finding:
Tacos: Bite into the crispy shell and savor the juicy meat, fresh salsa, and creamy guacamole. Tacos are the perfect combination of flavors and textures that will leave you craving more.
Gyros: Sink your teeth into the warm pita bread and taste the tender slices of meat, crunchy vegetables, and tangy tzatziki sauce. Gyros are a delicious Greek dish that will transport you to the Mediterranean with every bite.
Bao buns: Savor the fluffy steamed bun filled with savory meat, pickled vegetables, and sweet sauce. Bao buns are a popular street food item in Asia that will tantalize your taste buds with their unique flavors and textures.
Exploring street food with friends is an adventure that will take you on a gastronomic journey around the world. You can try new dishes, share your opinions, and bond over your love of food.
The joy of exploring street food with friends lies in discovering hidden gems, trying something new, and creating memories that will last a lifetime.
4. Get Messy with a Color Run
Participating in a color run is a unique and exciting way to stay fit while having fun with your friends.
This 5K run involves getting covered in colored powder while running through different stations. It’s a great way to stay active and create some memorable photos with your friends.
Plus, you get to support a good cause since many color runs are organized as charity events.
5. Watch a Movie Marathon
A movie marathon with friends is a fun way to bond and enjoy each other’s company. They provide a fun and relaxing environment to enjoy each other’s company and appreciate great films.
To plan and execute a successful movie marathon, follow these steps:
Choose a theme or movie series: Decide on a theme or movie series that everyone will enjoy. This could be a specific genre, actor, or movie franchise like “Harry Potter” or “Star Wars.” Or just pick a variety of old classics and new favorites.
Prepare snacks and refreshments: Popcorn, pizza, and soda are classic movie snacks, but feel free to get creative with your choices. You could even have a potluck and have everyone bring their favorite snack to share.
Arrange the viewing space: Make sure the viewing space is comfortable and has enough seating for everyone. Consider using blankets and pillows to create a cozy atmosphere.
So, grab some popcorn and gather your friends for a movie marathon that you’ll never forget!
The best movies can be found on Paramount Plus!
6. See What Festivals Are in Town
Attending festivals with friends can be a fun and unique activity to break up your routine. There are many different types of festivals to choose from, including food, music, art, and film festivals.
Additionally, there are usually free local events like food festivals, music festivals, farmers’ markets, and intercultural events.
Planning ahead and checking the festival schedule is important to ensure that all friends can attend. So why not gather your friends and try attending a festival together?
7. Hike
Hiking is a fantastic way to stay active and enjoy the great outdoors with friends.
Not only does it provide a great workout, but it also offers the opportunity to bond with your crew while surrounded by natural beauty.
You can even plan on these fantastic hiking trails for beginners or more experienced hikers:
In California, Big Basin Redwoods State Park offers a variety of trails ranging from easy to challenging, with the highlight being the 11-mile Skyline to the Sea Trail.
In Colorado, the Mount Falcon Park Trail offers stunning views of the Rocky Mountains and is a moderate 3.6-mile hike.
For those on the East Coast, the Franconia Ridge Trail in New Hampshire is a challenging yet rewarding 8.9-mile hike with breathtaking views of the White Mountains.
Remember to dress appropriately for the weather and terrain, wear sturdy hiking boots, carry plenty of water, and pack snacks to keep your energy levels up.
8. Go for a short road trip
Planning a road trip with friends can be a bonding experience, from working together on a collaborative Spotify playlist or burning some old-fashioned mixtapes to listen to on the road to stocking up on snacks and booking an Airbnb.
Going for a short road trip with friends is an excellent way to take a break from the daily grind and explore new places. It is also a reason to escape life’s hustles and bustles.
A spontaneous road trip might turn out to be a trip to remember as you explore unknown routes, stop at scenic spots, and try the local cuisine.
9. Host a Vision Board Party
A vision board is a visual representation of your goals and aspirations for the future.
Making a dream board with friends can be a fun and inspiring activity that promotes deeper social connections while helping you achieve your dreams.
It’s a crafting and manifesting activity that can help you visualize your dreams and work towards them with the support of your friends.
Learn how to host a successful vision board party.
10. Make Smoothies Together
Making smoothies with friends is a fun and healthy activity that promotes bonding and trying out new recipes.
You will need fresh or frozen fruits, such as bananas, strawberries, or blueberries, a liquid base like almond milk or coconut water, and optional add-ins like spinach, chia seeds, or protein powder to make smoothies.
Personally, I have found the Vitamix to blend the perfect smoothie!
11. Have a Karaoke Night
Karaoke is a great way to build confidence and create lasting memories with friends, so don’t be afraid to let loose and have a good time!
To host a successful karaoke night, start by choosing a venue such as a karaoke bar or setting up a karaoke machine at home.
Provide drinks and snacks to keep energy levels high and make sure to take plenty of photos and videos to capture the fun.
12. Have a Potluck Dinner
Having a potluck dinner with friends is a fun and affordable way to spend time together while enjoying delicious food.
To organize a successful potluck, consider the following tips:
Set a date and theme: Choose a date that works for everyone and select a theme to make the potluck more exciting. Some ideas for themes include Italian food, comfort food, or secret family recipes.
Assign dishes: Encourage everyone to bring a dish to share, and assign specific types of dishes to avoid duplicates. For example, one person can bring an appetizer, another a main course, and another a dessert.
Communicate and coordinate: Make sure everyone knows what they’re bringing and communicate any dietary restrictions or allergies. Coordinate with each other to ensure a good variety of dishes and avoid too many of the same thing.
A potluck is a great way to try new foods and bond over shared experiences. It’s also a money-saver and takes the pressure off one single host.
13. Skateboard/Roller-skate
Skateboarding and roller-skating are not only fun but also great ways to build friendships and community.
There are numerous activities that can be done while skateboarding or roller-skating with friends like:
Trying out tricks and stunts with friends can be a great way to learn and improve your skills.
Racing with friends can add an element of competition and excitement to the activity.
Obstacle courses can also be set up to test your agility and coordination.
Freestyle sessions can allow for creativity and self-expression.
Doing these activities with friends can provide support, encouragement, and a sense of camaraderie.
14. Have a DIY spa day
Spa days with friends are a fantastic way to bond, relax and practice self-care. It offers a break from the stress of daily life and provides opportunities for quality time together.
Moreover, hosting a spa day at home is a more affordable alternative to going to an actual spa.
You can confer with your BFF and figure out what kind of spa treatments both of you are in the mood for. For example, you can apply face masks, give each other manicures, or soak your feet in bath salts.
If you have the funds, you could even book a couple of treatments at a real spa and make it a real spa day! Regardless of where you have it, having a spa day with friends is an excellent way to relax, rejuvenate, and bond with friends.
15. Have a Craft Night
You don’t have to be crafty to enjoy craft night!
To have a successful craft night, start by choosing a craft that everyone is interested in and gather all the necessary supplies. A few craft ideas that are perfect for a craft night include making jewelry, painting, scrapbooking, or even DIY home decor.
Once you have everything set up, encourage everyone to let their creativity flow and enjoy the process of making something together.
Make sure to create a comfortable atmosphere by providing plenty of space to work and snacks to munch on.
16. Blow Bubbles
Roll by the time calendar and remember how much fun blowing bubbles was!
Blowing bubbles is a great way to spend a lazy afternoon or unwind after a long day.
You can go with the classic way of blowing bubbles or look into a bubble machine!
So, grab some bubble solution and wands and get ready for a fun and bubbly time with your friends!
17. Have a Water Balloon Fight
Water balloon fights are a fun activity to indulge in during the scorching heat of summer.
To make the water balloon fight even more enjoyable, you can incorporate team play or set up a tournament bracket. This will add a competitive element to the game and make it more exciting.
Regardless, having a water balloon fight with friends is a great way to beat the heat and have fun.
18. Plant a Garden
Gardening with friends is a rewarding activity that allows you to connect with nature and each other.
Plus it can also provide a sense of accomplishment and a source of fresh produce.
You can choose to plant a garden in someone’s backyard or join a local CSA.
Also, this is a continuous way to get together!
19. Spend Time in Nature
Spending time in nature with friends is a great way to relax, recharge and create lasting memories.
There are a variety of activities that friends can engage in while spending time in nature such as hiking, camping, picnicking, rock climbing, paddleboarding, and gardening.
Personally, know that spending time in nature with friends can be a refreshing and rewarding experience that allows friends to bond and enjoy the great outdoors together.
20. Sign up for a Recreational Sport
Signing up for a recreational sport is a great way to spend time with friends while staying active. There are many sports that are suitable for recreational leagues and can be played with friends, such as soccer, basketball, volleyball, and ultimate frisbee.
Playing team sports has many benefits, including building camaraderie, improving communication, and developing a sense of teamwork.
Costs associated with joining a league can vary, but many leagues have affordable fees.
21. Go Kayaking
Kayaking is a fantastic outdoor activity that is gaining popularity among friends who want to bond and have fun at the same time. It provides a great opportunity to explore new waterways, race each other, play games, fish, and take breaks to swim.
While kayaking, you and your friends can discover new places and enjoy the serenity of nature, which will help you to relax and forget about your daily worries.
Also, you have to work on your communication with each other while kayaking.
22. Cook Together
Cooking with friends can be a fun and rewarding activity that helps build strong bonds.
This is one of my favorite ways to spend time with friends. You can spend hours and never actually make anything edible and it doesn’t matter! Or you can create something absolutely delicious!
23. Join a Club
Joining a club with friends is a great way to try new things and meet new people.
There are many different types of clubs to choose from, including:
Book clubs
Hiking clubs
Cooking clubs
Bunco groups, and more.
Joining a club with friends not only provides an opportunity for shared experiences and new adventures but can also strengthen relationships by creating a common interest. Plus you meet on a regular schedule for spending time together.
24. Have a Painting Party
Painting artwork with friends can be a fun and fulfilling activity. Even better, plan to host a painting party with friends!
You hire someone with experience to help you out or you can watch a video on YouTube.
The best part is being able to exchange ideas and inspiration with each other to spark creativity!
25. Play Laser Tag
Playing laser tag with friends is a thrilling and exciting activity that is sure to get your adrenaline pumping.
This is always a must-do for most teens!
Playing laser tag with friends not only provides a fun and memorable experience, but it also helps build teamwork skills, promotes physical activity, and fosters friendly competition.
26. Go Birdwatching
Birdwatching is a relaxing and enjoyable activity that can be done with friends to appreciate the beauty of nature and learn about different bird species.
All you need to go birdwatching with friends is a simple guide to birds in your area, a pair of binoculars, bird seed, and a park or garden.
Birdwatching can enhance the bond between friends as they learn to identify different bird species and discover a new hobby together. It is a great opportunity to explore new trails, take pictures, and enjoy the scenic location.
27. Have a Marshmallow Fight
Marshmallow fights with friends are a fun and exciting activity that can help you forget your worries and bond with your friends.
You need a good laugh, right? This is exactly what you should participate in.
It’s a great way to relieve stress and enjoy some friendly competition with your friends.
So, grab some marshmallows, find a safe spot, and get ready for an unforgettable marshmallow fight with your friends!
Make sure to grab this indoor s’more kit!
28. Do Yoga
Yoga is a great way to improve flexibility, reduce stress, and promote overall well-being. Doing yoga in a class with friends or in a park can make the experience even more enjoyable and motivating.
Attending a yoga class with friends can be a fun and social way to exercise. You can encourage each other to push yourselves further and hold each other accountable for attendance. Additionally, practicing yoga in a group setting can help to create a sense of community and support, which can be beneficial for mental health.
Alternatively, practicing yoga in a park can be a great way to connect with nature and enjoy the fresh air and sunlight. You can bring your own mat or towel and find a quiet spot to practice. Practicing yoga outdoors can be a refreshing change of pace from the usual indoor studio setting.
29. Plan a Trip
Planning a trip with friends can be an exciting and bonding experience. It provides an opportunity to create unforgettable memories and explore new places with your closest friends.
However, it can also be expensive, so use this 100 envelope challenge to save for the trip.
Another way to save money is to be flexible with your travel dates.
Research your destination, create a budget, and be flexible with your travel dates to save money. With some dedication and effort, you and your friends can have the trip of a lifetime. Remember, the journey is just as important as the destination.
30. Explore a New Town
Exploring a new town with friends is an adventure that offers new opportunities to learn more about each other’s interests and create lasting memories. It allows you to discover new places, try local cuisine, and learn about the history and culture of the area.
When exploring a new town with friends, you can visit local landmarks such as museums, botanical gardens, and historical sites. You can also attend local events such as festivals, concerts, and fairs.
Don’t forget to try the local cuisine at restaurants and cafes.
31. Paint Pottery
Pottery painting is a popular activity to do with friends that allows you to unleash your creativity.
Thankfully, you can go to a business that provides all of the necessary supplies or you can purchase online.
Painting pottery can also be a relaxing and therapeutic activity that helps to reduce stress and anxiety.
32. Try a New Food
Let’s be honest… If it wasn’t for good friends, you may be missing out on different types of foods and cuisines.
Trying new foods with friends is an excellent way to break up your eating routine and have some fun while discovering new flavors.
So step out of your comfort zone and try something new – you never know what delicious dishes you might discover!
33. Visit a Farmer’s Market
Visiting a farmer’s market with friends is a fun and exciting way to spend a day outdoors. Not only does it support local businesses, but it also provides an opportunity to stock up on fresh fruits and vegetables.
Did you know the Palisade Farmer’s Market is one of the best in the country? I can attest to that; it was wonderful, especially during peach season.
There are many activities to enjoy at a farmer’s market with friends, here are my favorites:
Shopping for fresh produce: One of the main reasons to visit the farmer’s market is to stock up on fresh fruits and vegetables. You can compare prices, sample different varieties, and even learn new recipes from the vendors.
Trying free samples: Many vendors offer free samples of their products, from homemade jams to artisanal cheeses. This is a great way to taste new flavors and support local businesses.
Exploring local crafts: Along with food, many farmer’s markets also feature handmade crafts and artisanal products. You can browse jewelry, pottery, candles, and other unique items.
Eating street food: If you’re hungry, there are often food trucks and stalls selling everything from tacos to crepes. You can grab a bite to eat and enjoy it at one of the picnic tables or benches.
So why not gather your friends and head to a farmer’s market? You won’t regret it!
34. Compete with Minute-to-Win-It Games
This one is popular! Competing with Minute-to-Win-It games is a fun and easy way to spend time with friends while challenging each other’s skills.
To get started, gather a few household items and set a timer for one minute.
These games are not only a great way to have fun with friends, but they also improve hand-eye coordination and quick-thinking skills.
Plus this is a low-cost and entertaining way to bond with friends. Give them a try and see who comes out on top!
35. Host a DIY Escape Room
If you are looking for a cost-effective way to enjoy an escape room challenge with friends, setting up your own escape room at home is a great idea.
You can find free missions at Escape Team, and additional missions only cost a few dollars each.
Hosting a DIY escape room for your friends is an excellent way to challenge their problem-solving and teamwork skills in a fun and engaging way.
36. Join a Flash Mob
Joining a flash mob can be an exciting and memorable thing to do with your friends. Flash mobs are spontaneous gatherings of people who come together to perform a predetermined action, often in a public place.
Typically, flash mobs can range from dance performances to singing events and can involve people of all ages and backgrounds.
Participating in a flash mob can be a unique and fun experience that you and your friends can cross off your bucket list.
You can find local flash mob announcements by searching on Google or checking out websites that list flash mobs in your area.
37. Create a Time Capsule
Creating a time capsule with friends is an exciting and unique way to capture memories and special moments together. It allows you to reminisce about the past and look forward to opening the capsule in the future.
To create a time capsule, start by finding a sturdy waterproof container.
Next, gather items that are important to each of you, such as letters to your future self, photos, ticket stubs, and other mementos.
Add these items to the capsule and bury the capsule in a safe place, such as a backyard or a park.
Make a pact to open it up in a few years, say five or ten years or twenty years.
Cherishing memories with friends is important, and creating a time capsule is a fun and meaningful way to do just that.
38. Head to the Beach
Visiting the beach with friends is a great way to spend quality time together while enjoying the beauty of nature. There are many activities you can do with your friends at the beach, such as lounging under an umbrella, playing beach volleyball, building sandcastles, or having a picnic.
If you’re feeling more adventurous, you can go surfing, snorkeling, or take a walk along the shore. The possibilities are endless, and the memories you create with your friends will last a lifetime.
Whether you want to relax and unwind or have an action-packed day, the beach offers something for everyone.
39. Try an Art Class
Trying an art class with friends is a fun and fulfilling way to explore your creative side.
There are many places you can try painting or pottery! by going with a friend, it cuts out the scary risk of doing a creative project alone.
Don’t miss out on this opportunity to create something beautiful with your friends! This is a great experience gift idea, too!
40. Go Bowling
Bowling is a fun and engaging activity to do with friends.
Not only is it a great way to get some exercise, but it also offers a variety of fun things to do while playing. From trying trick shots to competing for the highest score, bowling is a great way to bond with friends.
Bowling is a fun and engaging activity that everyone can enjoy, regardless of their skill level.
41. Use Guest Passes
Typically, when you belong to a gym, museum, or any other membership-based activity. They will offer free guest passes.
This is a great way to hang out with your friends while enjoying a new activity. Or showing your friend one of your hobbies.
42. Go Snowshoeing
Snowshoeing is a winter activity that involves walking on snow with specialized footwear. It is a fun and unique way to explore the outdoors with friends while enjoying the beauty of nature.
There are many snowshoeing trails and locations that friends can explore together.
Snowshoeing provides an opportunity to get exercise, enjoy the peacefulness of nature, and bond with friends.
43. Get Creative With Sidewalk Chalk
Regardless of age, sidewalk chalk is a fun activity to do with friends that can ignite your creativity and bring out your inner artist.
There are a variety of ways to get creative with sidewalk chalk.
You can draw a hopscotch board and challenge each other to see who can jump the longest.
Create a masterpiece by working together on a huge drawing and experimenting with different styles and themes.
Play a game of tic-tac-toe and enjoy some friendly competition.
You can even use sidewalk chalk to write positive messages or quotes to inspire each other.
Spending quality time with friends is important, and simple activities like using sidewalk chalk can create lasting memories.
44. Have a Cocktail Party
Overall, the goal of a cocktail party with friends is to have fun and create shared experiences that will be remembered for years to come.
The best cocktail parties are based on a theme that will set the tone for the evening. Then, select a variety of easy-to-make and crowd-pleasing cocktails that will impress your guests.
Dress up smartly, put on some music, and decorate your space to match the theme. Provide snacks such as finger foods, cheese platters, and charcuterie boards to accompany the drinks.
During the party, encourage guests to mingle and try each other’s cocktails, while sharing conversation and laughter.
45. Go to a Drive-in Movie
Drive-in movies are a unique and fun experience that makes for a great activity to do with friends.
However, drive-in movie theaters are harder and harder to find. So, you may have to plan ahead for a local showing.
Once you arrive, park your car and settle in for the movie, chatting and joking around with your friends as you watch.
46. Meditate
Meditating with friends can be a powerful way to connect and improve your mental and emotional well-being.
To get started, find a quiet spot in nature, set up a blanket, and close your eyes. Take in the natural sounds as you sit in silence together.
Alternatively, you can attend a group meditation or breathwork session or hold a moon circle.
The benefits of meditating with friends include reducing stress and anxiety, improving focus and concentration, and deepening your connection with others.
47. Have an Insta Photoshoot
One of the best things about having a photoshoot with friends is that it offers you the opportunity to create memories together.
You can make funny faces, strike silly poses, and capture the moment in a photograph. You can also dress up in costumes and enact your favorite movie scenes together, which is bound to create some beautiful memories.
Whether you are looking to be goofy or play model, a photoshoot is an excellent way to express yourself and have some fun. You don’t necessarily have to photograph people either! You can experiment with still-life photography, food photoshoots, or even take pictures of landscapes.
P.S. You will always see teens taking photoshoots around town.
48. Play charades or Pictionary
Playing charades or Pictionary with friends is indeed a fun way to build excitement and laughter within the group while also improving communication skills and teamwork.
These guessing games are perfect for group activities and can elicit lots of shouting and laughter as people try to guess the correct word or movie.
You can even form teams and start a tournament to make it more interesting. Alternatively, card games such as poker, blackjack, spoons, and rummy are also fun and cost nothing to play if you already have a deck of cards.
All of these games can help improve your strategic thinking and social skills while having a great time with friends.
49. Make videos together
Indeed, making videos with friends can be a fun and exciting activity that creates lasting memories. There are many different types of videos that can be made with friends, such as music videos, vlogs, or short films.
The research suggests that enacting favorite movie scenes with friends can uplift the atmosphere as well. Dressing the part, rehearsing together, and video shooting the entire set can create fun moments that are bound to create some beautiful memories.
Making videos with friends can strengthen friendships and develop new skills such as video production and editing. The key is to have fun with your best friends and enjoy the time spent together.
50. Start a Band
If you and your friends have instruments, getting together and making music can be a fantastic way to bond and express yourselves while also encouraging collaboration and teamwork.
Creating music together is an excellent opportunity to learn new skills and experiment with different musical styles.
Plus, it helps create unforgettable memories and offers new opportunities to learn.
51. Create a Photo Album
In our digital age, putting together a photo album is another fabulous activity that you can do with friends.
Asking each friend to contribute a few photos and putting them in a friendship photo album is an excellent way to keep your memories close and spend an afternoon with your best friends.
Plus you are creating something you can enjoy for years to come!
52. Have a pillow fight
Having a pillow fight with friends can be a hilarious bonding experience that will make you forget all your worries.
To get started, find a spacious room or outdoor area where you can safely swing your pillows without breaking anything. Before starting the fight, agree on some basic rules to ensure everyone’s safety, such as no hitting in the face or aiming for sensitive areas.
Once you’re ready, grab your pillow and let the feathers fly! Don’t forget to laugh, scream, and dodge as you try to land a hit on your friends.
53. Attend park concerts
Attending park concerts is one of the best fun things to do with friends.
Not only are they affordable or free of charge, but they also offer a great opportunity to relax and unwind with friends.
This is something to enjoy after long work weeks!
54. Start a Business
Starting a business with friends can be a great way to combine your passions and skills while also earning extra income.
However, before jumping into any business venture with friends, it’s important to consider the potential risks and challenges. It’s crucial to have a clear agreement and plan in place to avoid conflicts and misunderstandings in the future.
Another option is to research side hustles as a great way to earn extra income. There are numerous side hustle ideas that can be done with friends such as dog walking, pet sitting, house cleaning, and tutoring.
Learning how to make money online for beginners is a hot topic.
55. Play Tourist in Your Own Town
Playing tourist in your own town can be a great way to spend time with friends while discovering new sights and experiences. There’s no need to travel far when there are plenty of activities to do in your hometown.
To start, visit local landmarks such as museums, historical sites, or city parks. These places offer a glimpse into the history and culture of your town.
Try out new restaurants and cafes that you haven’t been to before. It’s a great opportunity to sample local cuisine and support small businesses.
Attending local events such as concerts, festivals, or farmer’s markets can also be a fun way to experience your town.
Exploring the outdoors by taking a hike, bike ride, or even a picnic in a nearby park can be a refreshing change of pace.
Playing tourist in your own town not only allows you to discover new places but also strengthens friendships by creating shared memories and experiences.
56. Play games via video call
Playing games with friends remotely is indeed a great way to stay connected despite the distance.
There are various options available for playing games online with friends, such as board games, card games, and online games like Fortnite or Minecraft. Additionally, apps like Words with Friends or Yahtzee with Buddies can also be used to play games with friends remotely.
If you prefer non-digital games, you could play games like “Would You Rather?” or “Truth or Dare?” on a video call.
Playing games with friends online is an excellent way to spend time together and maintain a strong connection, even when you can’t be together physically.
57. Go to a bonfire
Going to a bonfire with friends is a fun and memorable activity that allows for bonding through storytelling, laughter, and shared experiences. Honestly, I forgot how fun a bonfire was until I went last weekend!
A bonfire is an outdoor gathering around a fire, typically held on a crisp fall evening.
With the hot temperatures and risk of fires, I would plan to attend a bonfire put on by an organization with fire trucks readily available.
Ensure there are snacks and drinks, and follow safety precautions. Overall, a bonfire with friends is a great way to escape the monotony of life and create lasting memories.
58. Bake something delicious together
Baking with friends is indeed a fun and exciting activity that can bring people closer together. It provides an opportunity to bond and share a sweet treat afterward.
One can choose a recipe they would like to try, whether it’s an old standby or something brand new. A cake, a sweet fruit pie, or a few batches of favorite cookies are some of the options that one can bake and decorate.
Alternatively, holding a friendly bake-off is a good way to bond competitively with friends.
So, next time you’re looking for something fun to do with your friends, why not try baking together?
59. Go camping together
Camping with friends is an excellent way to bond and enjoy the outdoors while disconnecting from technology. It is a cheap and fun hobby that offers numerous benefits, including strengthening friendships.
Whether you choose to camp in a nearby park or your backyard, sharing stories around a campfire, cooking meals together, and exploring nature can be a healthy move for everyone to unwind.
Camping provides an opportunity to enjoy the serenity of nature away from the disruptions of city life. You can hitch a tent, make a bonfire, roast some marshmallows, and play games, which is sure to be an adventure away from the hustle and bustle of the city.
It is important to plan ahead, bring necessary supplies, and follow safety precautions to ensure a fun and safe camping experience.
60. Go Geocaching
One of our personal favorite activities.
Geocaching is a fun and exciting activity that involves using GPS to find hidden containers or “caches” outdoors. It’s like a real-life treasure hunt that can be enjoyed with friends.
To get started, one can download the official Geocaching app for free.
Geocaching can be a great way to explore new places in your local area with friends while having fun. With GPS coordinates, you can search for hidden treasures that are waiting to be discovered.
61. Go to A Local Coffee Shop
Going to a local coffee shop is a great way to spend quality time with friends. Aside from being a cliche, it is an easy thing to do and offers a comfortable environment to catch up with your friends.
You can order your favorite beverage and indulge in a little slice of cake while chatting about everything you have missed since you last spoke.
A coffee shop offers a cozy and relaxed atmosphere, which makes it a perfect spot to hang out with friends.
Going to a local coffee shop also supports small businesses in your community. It is also a great way to discover new cafes and coffee shops in your area, which can become your new favorite hangout spot.
62. Volunteer
Volunteering with friends is a great way to give back to the community while having fun with your pals.
There are various ways friends can volunteer together, such as helping out at a local animal shelter, sprucing up city landscaping, or serving meals at a soup kitchen.
Volunteering with friends strengthens relationships, gives back to the community, and is a fun way to do good.
These are the best ways to capture your bucket list and find ideas!
FAQ
There are a number of things you can do right now with friends. You can go for coffee, take a walk, or visit a museum. You could also consider doing something more active, such as going for a run or playing a sport.
Whatever you choose to do, make sure you enjoy it and spend time with your friends.
The important thing is to find something that you both enjoy so that you can have fun together.
You can watch a movie, play video games, go for a walk, listen to music, or even just sit and talk.
What Fun Places to Go with Friends Will You Choose?
These unique activities are just a few examples of the many fun things you can do with your friends.
Don’t be afraid to try something new and get creative! Who knows, you might just discover a new favorite activity.
A little short on cash? Don’t worry… here are 101 things to do with no money.
So, gather your friends and start planning your next adventure together.
And if you have any unique ideas of your own, be sure to share them in the comments below!
Know someone else that needs this, too? Then, please share!!
A majority of the housing market data on any given month tends to come out mostly on the same week. This was that week and the takeaway was that the housing market could be doing worse. Some might even argue that we’re seeing some resilience relative to the rate landscape.
Let’s refresh our understanding of the rate landscape first. The bond market (which drives interest rate movement) has been broadly sideways recently as investors wait to see how quickly inflation (bonds’ biggest concern) is subsiding. That “wait and see” approach prompted the Fed to hold its policy rate steady at last week’s meeting, but that was widely expected by the bond market and thus not worth much of a reaction.
Fed Chair Powell gave his regularly-scheduled congressional testimonies this week and had a chance to talk a bit more about where the Fed sees things going from here. We already knew the average Fed member saw about 2 more rate hikes before achieving a terminal “ceiling” level, assuming the economy evolved as expected, but Powell was able to clarify what “as expected” meant.
Interestingly enough, the additional hikes are not seen happening in response to some additional upward momentum in inflation or economic growth. Rather, the Fed’s baseline expectations call for continued cooling in the labor market, modest economic growth, and continued cooling in inflation. In other words, inflation and the economy have a very low bar to justify a few more rate hikes. Things would have to deteriorate pretty abruptly for the Fed to abstain. Moreover, if things improve a bit better than expected, we could be looking at more than 2 additional hikes.
The problem with these expectations and the actions predicated upon them is the elevated uncertainty about the outlook. Economic uncertainty is often reflected in sideways trading ranges in the bond market. Using 10yr Treasury yields as a proxy for other rates (like mortgages), we see clear sideways ranges in the short term.
And in the long term.
The longer term chart also serves as the best recap of the rate landscape. Specifically: rates are high–not as high as they were in late 2022 or even earlier this year, but certainly much closer to the higher end of the range over the past few years.
The rate surge in 2022 had predictable consequences for the housing market, but even though rates remain high, volatility has died down.
Lower rate volatility has helped housing find bottom. Essentially every housing report that came out this week told a different version of that same story. Some reports were downright upbeat, such as the surge in “housing starts” (a term that refers to the ground-breaking phase of new construction). Only 10 months have been higher in more than a decade.
This also marked a major reversal in the trend for new construction. Last month’s report showed the worst year-over-year growth in 14 years while the new report showed the best growth in more than a year–a shift of more than 20%.
This is a notoriously volatile set of data, but swings like this still send analysts looking for explanations. One of the most commonly cited mitigating factors is the larger and more stable role being played by multi-unit construction. Multi-family starts are right in line with their highest levels in more than 3 decades, and they were essentially unaffected by the 2022 rate spike.
The other “yeah but” is that the new home market is quite a bit smaller than the existing home market, and the latter is better described as “treading water,” even though the most recent number came out slightly higher than last month.
The “yeah but” to that “yeah but” is that inventory is holding the market back.
There are a few more of the big monthly housing reports yet to come in the week ahead. Most arrive next Tuesday morning with New Home Sales expected to stay fairly flat at an annual pace of 670k and the duo of home price indices from FHFA and Case-Shiller (both expected to show slower, near-zero price growth). Thursday’s Pending Home Sales index is expected to show 0.2% growth after holding steady last month.
What exactly is the Dow Jones Industrial Average, the mythic number that punctuates each day’s stock market report? I’ve always wondered. Now, with the Dow crossing 12,000, I decided to roll up my sleeves and delve into what that 12,000 really means. Why should I care — and why should you?
When the Dow is at 12,000, that’s not 12,000 dollars, obviously; nor does the Dow reflect the performance of 12,000 companies (the index only reflects 30 companies) — nor does the 12,000 have anything to do with the number of shares traded each day on the stock exchange (that’s in the millions).
To wax philosophic, the Dow is at once larger than the sum of its parts — and less. To understand the Dow is to gain entry into a vital part of the investing world. In short, it’s all about indexes. (Or indices, if you prefer.)
Let’s step back in time for a quick dip into the history of the Dow, which dates back to the 1880s. If you’re not a history buff, skip to the next section.
A short, geeky bit about the Dow’s origins In 1884, journalist Charles Dow compiled a list of eleven U.S. companies, and by averaging their stock prices came up with the Dow Jones Averages (with his colleague Edward Jones — not that Edward Jones).
In 1896, he revised the original list of companies, nine of which were railroads, to now comprise twelve companies that reflected the leading industries in America. You can read more detail here. It was a nifty idea: Select the top U.S. companies that reflected key industries, and average their stock prices each day as a gauge of how the market was performing overall. In other words, if six of the companies’ stocks were trading at $30 per share, and the other six were trading at $40 per share, the Dow Jones Industrial Average for that day in 1896 would have been about 35.
Needless to say, the concept of having such an index to represent the market’s value stuck. Messrs. Dow and Jones went on to create other indexes (as well as founding the Wall Street Journal, which you may have heard of).
Getting back to what the Dow is, and why we should care… Today, the Dow is comprised of 30 large-cap companies — those with market capitalizations of $10 billion or more. As back in 1896, these companies are meant to reflect American industry (you can read the list here), but the Dow is no longer calculated strictly as an average, but a scaled average.
But what the heck is a scaled average?
Here’s what the 12,000 means: the DIJA is calculated now by adding up the daily stock price of each of the 30 companies, and then dividing it by a fractional amount known as the divisor, which takes into account stock splits and other adjustments. Today the divisor is about 0.132129493.
The result is a somewhat arbitrary number — about 12,000 right now — that serves as a sort of barometer for the economy.
Why does the Dow loom so large? On one hand, the Dow is still considered a bellwether for American commerce. But because the Dow is price-weighted — i.e., a company trading at $50 per share would make up five times more of the index than a company trading at $10 — that doesn’t necessarily reflect companies’ actual market values.
Plus, there are thousands of public companies in America, and you could argue that the performance of just 30 might not be the best gauge of the economy’s health — and in fact people do make this argument, which is one reason the S&P 500 is seen as a better benchmark than the Dow.
But what’s the S&P 500? I’m glad you asked. The S&P 500 is Standard & Poor’s index of the top 500 companies in America; it’s another stock market index. And in case you can’t smell where this is going, yes, there are now more indexes than there are sandwich possibilities in a deli.
So when you hear about index funds — a very popular investment product these days, especially among Get Rich Slowly readers — the next question you should ask is: “Which index is that fund tracking?”
There are many indexes that capture the performance of specific market sectors, whether it’s small-cap companies or bonds foreign stocks or foreign small-cap bond stocks (kidding!). In this useful Money Magazine article, one expert quips that people are just creating indexes in order to sell new mutual funds that track those indexes. I wouldn’t be surprised.
Certainly, if Mr. Dow were alive today he’d be shocked by how far and wide his original concept has spread.