Home Depot customers will soon be able to shop the retailer’s most compelling savings for on-trend products in its online decor assortment during its first ever Decor Days event. From October 5-9, 2023, shoppers can enjoy significant savings on quality furniture, stylish home decor and more, available at HomeDepot.com/decor.
“Fall is the time of the year when customers start to get their homes ready for the busy holiday hosting season, and we know they will be looking to The Home Depot for project inspiration,” said Corinne Bentzen, general manager for home decor online. “We are hosting our first Decor Days event in early October to help our customers tackle their DIY and decor projects and find the perfect finishing touches at the right price.”
Exclusive Decor Days savings on national and proprietary brands including Home Decorators Collection, StyleWell and The Company Store, will be announced on September 20. Customers can look forward to offers including:
Up to 60% Off Area Rugs
Up to 50% Off Select Home Decor, Furniture, Lighting and Housewares
Up to 40% Off Bedding, Bath Fixtures, Vanities, Bath Linens and Mattresses
Up to 30% Off Wall Decor and more
“We’re committed to meeting our customers when, where and how they want to shop,” said Jordan Broggi, senior vice president and president – online at The Home Depot. “Today, over 60% of our sales are to customers who shop in multiple channels – they may start their research online, come into the store to shop in person, and then order project completers on our mobile app. Decor Days gives our customers an easy online shopping experience with everything they need for whole-home decor and styling ahead of the holidays.”
The Home Depot’s online destination for home decor offers a wide assortment of on-trend products at quality prices to fit any aesthetic. Features like shop by room inspiration and intent search, which produces narrowed, relevant search results catered to shoppers’ projects, make the online home decor shopping experience more frictionless.
Furthering The Home Depot’s dedication to a strong interconnected shopping experience, Decor Days customers can enjoy the retailer’s everyday free and flexible delivery on more than 10,000 online decor items and free and easy returns in-store or by mail.
To save on quality furniture and find stylish home accents at the right price, visit HomeDepot.com/decor.
UK mortgage arrears rose 9.2% in 2023 last quarter amid ‘surge in borrowing costs’
Mortgage balances with some arrears at highest value since late 2016, Bank of England data shows
Mortgage arrears jumped by 9.2% in the final quarter of 2023 and by 50% on the previous year, according to Bank of England figures that underscore growing stress in the UK mortgage market.
High interest rates and the rising number of people quitting the jobs market over recent months have put pressure on household disposable incomes, forcing some families to cut or suspend a range of monthly bills, including their mortgage payments.
The Bank said the total value of mortgage balances which had some arrears increased to £20.3bn, or 1.23% – the highest since the fourth quarter of 2016.
Mortgage arrears are based on figures showing the number of borrowers failing to make payments equivalent to at least 1.5% of the outstanding mortgage balance or where the property has been repossessed.
Simon Gammon, the managing partner at Knight Frank Finance, said: “At 1.23%, the proportion of loan balances in arrears is still very low, but the pace at which it is rising will be a source of concern for policymakers at the Bank of England.”
He said the housing market had shown “remarkable resilience given the surge in borrowing costs that we’ve seen”, but forbearance by lenders had kept forced selling “very low”.
Gammon said: “While borrowing costs have likely peaked and should begin falling meaningfully over the summer, the figures demonstrate that we’re not yet out of the woods and conditions remain very difficult for many borrowers.”
More than 1.5m households are expected to refinance their loans this year at higher mortgage rates, putting further pressure on lenders to agree payment holidays.
However, forbearance by lenders and strict lending rules over the last decade that have restricted new borrowing to households that can withstand higher borrowing costs have limited the likelihood of a surge in repossessions.
In line with a trend for older households to own their homes outright, the Bank said the outstanding value of all residential mortgage loans decreased by 0.1% from the previous quarter to £1,657.6bn, and was 1.1% lower than a year earlier.
A decline in mortgage advances also played a part in the overall value of the UK mortgage market, with a decrease by 13.4% from the previous quarter to £54bn, and a decline of 33.8% on a year earlier.
The value of new mortgage commitments – lending agreed to be advanced in the coming months – decreased by 6.6% from the previous quarter to £46bn, and was 21.2% lower than a year earlier.
If the onset of the Covid-19 pandemic was excluded, this was the lowest recorded since the first quarter of 2013, the Bank said.
When you buy through our links, Business Insider may earn an affiliate commission. Learn more
We’re in the final hours of Cyber Monday, but you can still deck your halls for the holidays with deals on home decor. Modern wall art or a patterned throw blanket can transform your living room just by adding some texture and color.
You can add wintry flair with a white pampas grass wreath that’s currently 63% off at CB2. Or get creative with your mood lighting and try the hexagonal Nanoleaf shapes: save $50 at Best Buy. For Christmas decorating ideas, we rounded up the best Christmas tree and holiday decor deals. You can also check out the best Cyber Monday furniture deals we’ve found across the internet.
There are still sales on tech, style, kitchen, and more, so we’re keeping our list of the best Cyber Monday deals updated through the end of the sale event.
Up to 50% off sitewide, plus an extra 50% on sale items Etsy: Save up to 60% decor from small businesses and makers H&M Home: 30% off everything Jonathan Adler: Up to 40% off sitewide Nordstrom: Up to 60% off throws, candles, bedding and more One Kings Lane: Up to 50% off plus an extra 15% off orders over $700 with 15CYBER Society6: Up to 70% of posters, minis and framed prints Target: Up to 40% off various home decor Urban Outfitters: 40% off sitewide Wayfair: Up to 60% off seasonal decor West Elm: Up to 70% off decor and furniture World Market: Save up to 30% on furniture and decor
Best Cyber Monday home decor deals
Anthropologie Rosalita Switch Plate
Anthropologie has some of the most detailed and lovely little switch plates, like these that add whimsy and cottage core vibes to even the simplest rental space. During Cyber Monday, you can take 30% off whether you need a single toggle switch or an outlet cover.
USTIDE Sunflower Rug Mat
A bold area rug adds color and warms up any room. This polyester microfiber rug comes with a non-slip backing. Get the all-time-low price on yellow, pink, and teal patterns.
The White Company Midnight Large Candle
This three-week candle has scent layers of vetivert, cardamom, and amber. The minimalist design and warming aromas will fit in with any decor. If the regular price seems steep for a candle, the current discount of over half off makes it more reasonable.
Frontgate Luxury Faux Fur Throw
Luscious and realistic-looking, the Frontgate Luxury Faux Fur Throws are a mix of modacrylic and polyester with a velvet polyester back. Varieties include Arctic hare, coyote, chinchilla, timberwolf, and lynx. The 50 by 70-inch blanket is $60 for Cyber Monday.
CB2 36-Inch Faux Ivory Pampas Grass Wreath
This fluffy, white wreath isn’t just for the holidays. The elegant pampas grass lends a winter accent to any room of the house. During Cyber Monday, you can get it for over half off.
Barefoot Dreams CozyChic™ Stripe Throw Blanket
Barefoot Dream’s CozyChic throws are a well-documented celebrity favorite. These soft and timeless blankets cozy up any corner. At over 65% off, this is a savings you’re not going to find anywhere else.
Capri Blue Blue Jean Faceted Jar
This candle combines citrus, white musk, and patchouli for a relaxing fragrance. The faceted lavender glass holder will add a hint of color to white bathrooms. The current 20% off is a deal we see often, but still a good one.
Nanoleaf Shapes (Hexagon)
Featuring a modular design, vibrant colors, and easy smart-home integration, the Nanoleaf Shapes system is fun and functional decor. Best Buy is offering 25% off during Cyber Monday: let this sale (and system) light up your home.
Pottery Barn Curtain Rain String Lights
Available in gold or silver, this curtain rain string light spans 72 inches wide and 72 inches long. Use it to add sparkle indoor or outdoor; just make sure to avoid contact with water. Take 25% off the usual price right now.
The Sill ZZ plant
The ZZ plant (Zamioculcas zamifolia) is one of the toughest indoor houseplants and can survive even the most difficult situations, such as long periods without water. It’s just $51 during The Sill’s Cyber Monday sale event.
Lumens Adesso Lighting Bowery Arc Floor Lamp
If you’re looking to light a small nook or corner in your home the Bowery Arc Floor Lamp provides a warm, focused layer of lighting. The curved design of the lamp, as well as its marble base, adds a simple touch of decor. Save 20% on all colors: brushed steel, antique brass, and black.
Pottery Barn Linden Shelf
This modern, arched shelf has a tray base that can display several bathroom accessories and decorative objects. It can even be a convenient place to hold your phone while you shower. The antique bronze model is 30% off.
Ohad Modular Wood Wall Art
Not your average wall art. This modular piece is both cozy and contemporary, and it’s currently 30% off.
H&M Metal Candelabra
This gold candelabra makes for a gorgeous centerpiece, and it’s 70% off. Top with your favorite taper candles.
Korniful Tabletop Fire Pit
Bring holiday cheer indoors with this tabletop fireplace perfect for roasting chestnuts on an open fire (roasting sticks included). You can buy fuel separately to create a smokeless and odorless flame that adds instant ambiance.
Jaclyn Turner
Senior Home Editor
Jaclyn Turner is Senior Home Editor at Business Insider Reviews, where she oversees home content, reviews, and guides spanning mattresses to vacuums, organization to smart homes, and more. However, she has a particularly soft spot for decor and interior decorating. Product recommendations and deal spotting run in her blood, and Jaclyn takes great pride in showcasing the best of what’s out there to make finding great products for your home and life a little bit easier. She joined the Business Insider team in October 2023. Jaclyn previously held editorial and e-commerce roles with Homes & Gardens, Real Homes, Livingetc, The Spruce, MyDomaine, and Apartment Therapy. Jaclyn received a dual bachelor of arts in Journalism and American Studies at the University of Maryland, College Park. Jaclyn currently resides in Atlanta, GA, with her Cavapoo. When she’s not working, you can find her perusing the aisles of Homegoods, scrolling TikTok for too long, and trying out local Atlanta restaurants. Connect with Jaclyn at [email protected] or give her a follow on Instagram @jaclynturnerLearn more about how our team of experts tests and reviews products at Insider here.
Lily Alig
Editor, Home and Kitchen
Lily Alig is an editor on the Business Insider Reviews team, covering the home and kitchen verticals. She helps run the kitchen section, working with in-house and freelance writers to build out coverage of small appliances, kitchen tools, and gourmet food.Since joining Business Insider as a fellow in August 2020, Lily spent a year and a half as a full-time reporter before becoming an editor. As a writer, she spoke with independent spice houses and professional chefs, as well as tested products by making 50 waffles in one day and searing 7 steaks in a week. In her role as editor, Lily tracks stories from pitch to publish, maintains the kitchen publishing calendar, and edits every story for copy and content.Lily is an avid home cook and baker, so she knows what consumers are looking for in kitchenware products. After work, you can find her watching sports, reading fantasy novels, and finding new recipes to try.Reach out to Lily at [email protected]. Learn more about how our team of experts tests and reviews products at Insider here.Learn more about how we test kitchen products.
When you ask people about their favorite season, few will likely say winter. However, there’s an undeniable sense of calm that comes with this period of hibernation, regardless if you live in a house in chilly Minneapolis, MN, or an apartment in Miami, FL. Even more unique is the feeling you get when the first warm breezes of spring arrive but winter still holds us in its mysteries.
In this article, Apartment Guide interviews expert candlemakers and sellers to find the scents that evoke both the coziness and moodiness of winter while also celebrating the promise of spring. We promise it will make scents as you keep reading!
Find harmony between dark and light
As the long, dark nights of winter shift to brighter days, the best winter-spring candle scents merge the moodiness of winter and the breeziness of spring. Try to find a candle that balances both vibes seamlessly.
“During this seasonal shift, I find that incorporating fresh citrus notes into my space provides a revitalizing touch reminiscent of the upcoming spring while still holding on to the cozy warmth of winter,” states Tianna Dean of Hummingbird Candle Company. “Blends of lemongrass, lime, and lemon top notes evoke a refreshing burst of citrus, symbolizing the awakening of spring, while the underlying notes of jasmine, black currant, and patchouli add a touch of warmth reminiscent of the lingering winter.”
Add a touch of aquatic fragrance
The pool is still closed, and you might not be ready to plan your beachside vacation quite yet. However, aquatic notes transport you to the relaxed feeling of lounging by the water.
“As the seasons shift, our my favorite transitional scent is our spring candle scent that evokes Oklahoma during a thunderstorm,” says Rico Smith of 46th State Candle. “With refreshing notes of eucalyptus, spearmint, and sea salt, it captures the invigorating essence of spring rain while still offering a hint of winter’s crispness, making it the perfect choice for transitioning between winter and spring seasons.”
Similarly, Jennifer Smyth of Modern Zen Candle Company notes: “Fragrances like sea salt and orchid orchestrate a coastal symphony, harmonizing sea salt’s crispness, jasmine’s soft touch, and tonka bean’s warmth — nature’s transition from chilly winds to the gentle caress of spring. For even more beachy vibes, bamboo and coconut whisk you away to a tranquil paradise with bamboo’s freshness, coconut milk’s creaminess, and pineapple’s sweetness—a scent that embodies a springtime escape.”
Opt for solar fragrances
AURA Candle Bar owner Linda Pendry suggests solar fragrances, or scent profiles evocative of tropical blooms. “Solar fragrances are top of mind as spring break plans interrupt the cold winter months with fragrances such as sea breeze, citrus facets of neroli or even the floral notes of olive blossom. Warmer base notes such as exotic agarwood, sensual driftwood, or smokey cedar lend themselves to grounding the fragrance as we all patiently await the longer days ahead as springtime unfolds.”
Try a combination of floral and woody notes
“I love burning candles that have a woody and floral scent with a hint of spice during the transition from winter to spring,” shares Reis Chester, founder of REISFIELDS NYC. “My go-to choice has a masterfully crafted blend of soft woody guaiac wood, fresh French roses, geranium, and violets. It is finally topped off with a subtle hint of black pepper and clove. Giving you the warmth of winter with the freshness of spring.”
“Our favorite scent for the transition months between winter and spring is a blend of dahlia and sandalwood,” says Nicola Hines of Candlish. “It reminds us of a lush wooded flower field in the spring and has a sophisticated and luxurious aroma that will uplift your mood. The comforting scent of slightly sweet base note sandalwood blends harmoniously with warm amber, light lemon zest, sultry jasmine, and yellow dahlia petals which gives off well-balanced and soft floral notes that are earthy and intriguing.”
Earthy and fresh scents win the season
From the crisp aroma of freshly cut pine to the grounding scent of damp earth after rainfall, earthy and fresh scents reign supreme this season.
“Most will gravitate to a floral-scented candle this time of year, but I’d recommend something with notes like white sage and lavender to cleanse the space of ghosts and emotional winter baggage,” says Jesse Regis of Virgins on Fire Candle Co.
Similarly, Kylie Antolini of Wildwood Candle Company recommends combining the freshness of earthy scents with the brightness of citrus to evoke a wooded meadow filled with flowers.
She says, “My favorite scents for transitioning out of winter into spring have a mix of grounding, earthy floral notes and brightness — for example, one of our candles has blended notes of ylang-ylang (grounding, floral), orange blossom (bright, floral), green fig (ripeness, rebirth, bright, green), and lavender (grounding, floral). It’s not only a wonderful year-round scent, but particularly wonderful coming out of winter, as our noses have missed smelling fragrant flowers in the sunshine.”
Or, as Wes at Milwaukee Candle Company says, “As winter surrenders to spring, lose yourself in the harmonious fusion of brightening citrus and comforting woodsy scents. The invigorating notes of blood orange signify nature’s awakening, while a deep, rich mahogany evokes the cozy embrace of winter. This blend effortlessly bridges the gap between winter hibernation and the blooming warmth of spring, creating a sensory experience that captures the essence of both seasons in perfect harmony.”
And if you want the earthy freshness that instantly reminds you of a luxurious spa, white tea takes the cake. Kianna Cornelia of Cornelia Home states, “Our favorite scent for the transition months between winter and spring is white tea. This aromatherapy fragrance promotes wellness and calmness, allowing you to enjoy a tranquil spa-like experience anywhere in your home.”
Find comfort with a sweeter fragrance
Though often thought of as solely winter candle scents, sweeter notes go with any season – so check in with your mood instead of the thermometer outside when it comes to finding a signature scent for March. And if we’re being honest – who isn’t in the mood for dessert, no matter the season?
According to Nose Best Candles, you can’t go wrong with gourmand scents, which are typically dessert-like scents like vanilla, almond, sugar and caramel. “When in doubt, go gourmand! The weather is so unpredictable during this time. So instead of trying to match the weather outside, find comfort in something like a snickerdoodle or banana nut bread. This will make your home smell like a 5-star bakery that you’ll never want to leave.”
Erika Whitus of Southern Charm Candle also chimed in: “When the holidays have passed, and we are in the cozy moments spent indoors waiting for the vibrant lively atmosphere of spring, our favorite scents are ones that combine elements of the fresh, sweet aroma of fruit with the warmth and comfort of a fresh-baked dessert. Juicy ripe strawberries, zesty lemons, or tropical bananas provide a refreshing burst of energy like spring itself whereas the comforting aroma of vanilla provides a grounding effect of waiting for your mom’s favorite recipes.”
Marry winter and spring with a musky scent
Fuse the essence of winter and spring with a musky scent, bridging the gap between the crisp chill of snow-covered landscapes and the burgeoning warmth of blooming flowers.
Ky Candle Company has a cashmere-blend scent, which is the perfect concoction to take you from winter to spring, according to owner, Sheena Bromagen. “It has warm, earthy notes of saffron and amber paired with the light floral fragrances of lily of the valley and violets. It’s rich and soft, calming and warm – a perfect scent all year!”
Or, as Tanisha Burke from Malaysian Lights puts it, “I have found the most favored scents between winter, and spring is something fresh and clean. My bestseller boasts notes of ozone, soothing musk, fresh flowers, and light coconut with a sandalwood base. The second scent that is found to be very popular between these seasons has plenty of cinnamon and vanilla. The cinnamon spice notes combined with rich, warm vanilla is a customer favorite.”
Experiment with olive
Pull out the olive scents if you want to try something refreshing and unique for the transition season. It offers an earthy balance of mellowness and warmth that lends itself to both winter and spring.
“Olive is my favorite fragrance for transitioning into spring!” says Clara Bailey from MacBailey Candle Co. “It is a complex fragrance that has a base of musk and vanilla, which bring in the cozy feelings of winter. The warm earthy middle notes add texture, while the top notes of orange and lemon bring in the fresh and clean notes of spring.”
Glenda from Palmetto Scent Studio recommends this right-now-ready scent, too: “As you prepare to transition your home from winter to spring, it’s important to take inspiration from the feelings we experience during this time of rejuvenation. Everyone’s anticipating the fresh, fragrant breezes to come, but there is still a slight chill in the air. Consider a scent that blends soft and cozy scents like cashmere with light, botanical notes like the sophisticated tea olive. These blends will help set a tone of anticipation as we await spring buds to emerge.”
Wow with deep, wood-forward notes
Whether you picture a large bonfire on a chilly night or a slow-burning fireplace in a cozy den, wood scents add to any winter scene. But did you know woody scents also transitioned well into warmer weather?
Alex at Kindred Homestead Supply notes how woody scents might evoke the season’s turn. “In this transitional period between winter and spring, the earthy blend of smokey oak, tobacco leaf, and a subtle touch of vanilla provides a comforting and enveloping atmosphere in our living spaces. These scents serve as a warm embrace, encouraging us to appreciate the restorative quiet of winter, while we eagerly look forward to the rejuvenation spring brings.”
Another expert adds her thoughts about this scent profile. “For us, it’s all about the blend of earthy, woodsy scents with a pop of floral freshness,” says Diane Mendoza of Never Alone Candles. “Think the floral vibrancy of lavender mixed with the earthy depth of oakmoss. It’s the perfect scent combo for transitioning from the cozy, reflective winter to the fresh, hopeful vibes of spring — like a breath of fresh air for your living space.”
Spring forward with flowers and citrus
Of course, you can skip the woody, spicy or sweet notes in your winter candle scents if you’ve been long-awaiting spring. We encourage you to go ahead and embrace every warm breeze – while lighting candles in scents that speed the next season along.
According to an owner at Gratus Candles,” Our favorite transitional scents from winter to spring would have to be a mixture of earthy, citrus and floral! This is because while our senses are use to those traditional winter fragrances filled with spices, earthy, and sweet notes, transitioning to fragrances that embody the warmer weather, such as: citrus and floral, while keeping true to those earth notes, will bring a familiarity to your visitors while easing them into the welcoming spring scents of the new season!
Caitlin Wheeler of Old North Candle Company explains this perfectly. “Our favorite way to transition from winter to spring scents is to focus on light, fruity blends. It feels too early to commit to floral scents, but most of the winter scents feel a bit heavy for this time of year. Fragrance notes of mint and chamomile are comforting on those lingering cold days, while mandarin and basil notes brighten up the scent to welcome in those airy, spring mornings.”
This sentiment seems to be echoed by other candle entrepreneurs, too. “Citrus and delicate floral fragrances are ideal for the season, as they offer a light, refreshing touch and harmonize beautifully when paired together,” posits Neosha Franklin, Owner & Candle artisan of Serene Nights Candle Co. “Our premier fragrance pick for the transition from winter to spring boasts a delightful fusion of citrus pear, cherry, and deep musk, creating an enchanting aroma perfectly suited for this season.”
In a similar vein, Two Chicks Candles’ owners Cassandra and Latoya Cargile chime in with their own poetic advice. “As we tiptoe into the whimsical realm of spring, let’s embrace the dance of melting snow and rejuvenating rain showers with aquatic delights like sea salt, ocean breeze, and the ethereal fragrance of exotic lotus flowers, elegant water lilies and delicate orchids — nature’s symphony of renewal.
These scents aren’t just whispers on the wind; they’re soul-cleansing reminders that winter’s grasp is fading, making way for spring’s gentle embrace. Embark on an aromatic journey where each inhale is a celebration of renewal and the enchanting allure of changing seasons. A blend of sea salt, lush green leaves, amber and freesia perfectly captures this transition.”
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Discover how to revamp your finances with a 30-day money cleanse that aligns your spending with joy and personal values.
How can you set a budget that aligns with your goals?
How can you optimize your spending to reduce waste?
NerdWallet’s Kim Palmer talks to Ashley Feinstein Gerstley, author of The 30-Day Money Cleanse, to help you understand how small changes can make a significant impact on your financial health. They begin with a discussion of the financial cleanse, with tips and tricks on aligning spending with personal values, creating lasting habits in 30 days by using a method that has saved others an average of $950 over 30 days — without feeling deprived.
They also discuss money management tactics that include keeping a money journal, practicing visualization and having money parties. They discuss the benefits of recording feelings associated with each purchase, indulging in simple low-cost activities that bring happiness and aligning spending with personal values for a more satisfying approach to personal finance.
Check out this episode on your favorite podcast platform, including:
NerdWallet stories related to this episode:
Episode transcript
This transcript was generated from podcast audio by an AI tool.
Sean Pyles:
Welcome to NerdWallet’s Smart Money Podcast. I’m Sean Pyles.
Kim Palmer:
And I’m Kim Palmer.
Sean Pyles:
On Smart Money, we’re all about answering your money questions big and small, ambitious and easy. This episode we’re taking on an especially ambitious question, how can you transform your finances in 30 days? And Kim is here in her role as the host of our regular book club series to guide you through this conversation. So Kim, who are you talking with?
Kim Palmer:
I’m speaking with Ashley Feinstein Gerstley, author of The 30-Day Money Cleanse, which is the focus of our conversation today. Feinstein Gerstley is also the founder of The Fiscal Femme, which offers online money courses, and she’s also a certified financial planner and a financial coach.
Sean Pyles:
Sounds great. Well, I will let you take things from here.
Kim Palmer:
Ashley, welcome to Smart Money.
Ashley Feinstein Gerstley:
Thank you. Thank you so much for having me.
Kim Palmer:
So Ashley, let’s start with what is a financial cleanse? Does it involve lemons and vinegar?
Ashley Feinstein Gerstley:
You’d think, right? You’d think that it would have some interesting food items as well, but it is about letting go of the things that don’t bring value to our lives and realigning and rethinking how we spend our money so it can be more conscious and intentional.
Kim Palmer:
What do you like about the financial cleanse concept? Because I think you’re right, we usually apply that to food. So what is it you like about applying that to money?
Ashley Feinstein Gerstley:
Originally when I created the program, it was actually created after a food cleanse in the same format because I think food and money are very similar. They are both emotionally charged. There’s so much more to them than just the numbers. And that’s what I was seeing over and over with clients is that sometimes we don’t have the education and we aren’t sure what we should be doing, but then even once we know what we should be doing, oftentimes we’re not doing it and that’s where our money mindset came in. And so The Money Cleanse definitely helps us shift that and put together that plan over the course of the 30 days.
Kim Palmer:
And what is it about 30 days? Why did you choose that versus a week or six months?
Ashley Feinstein Gerstley:
30 days gives us enough time where it’s that first week when we do something, we can feel really excited and have a lot of momentum. And then in maybe week two, week three is where it can get challenging and where we might end up giving up. And so I think a lot of the transformation in The Money Cleanse happens in those two and three weeks. And also there’s just a perfect amount of content to cover over the course of four weeks because we don’t want to take on too much. We all have a lot going on. We have jobs and social lives, but there’s a lot to cover. So if we are able to break that down into more bite-sized weekly chunks, I thought that was a really great format for The Money Cleanse. And even though it is called a cleanse, the idea is at the end you have a new lifestyle that lives on far long after the cleanse.
Kim Palmer:
We’re definitely going to get into all of those details in a minute, but first I wanted to ask you what you learned personally the first time you applied this to yourself. How did it go and what did you learn from it or change?
Ashley Feinstein Gerstley:
A lot of the concepts were concepts that I applied to my own life as I was learning and not in any given order, but what I found is that working with people across different goals and income levels, I was saying a lot of the same things over and over again and a lot of the lessons that I learned and provided me with a lot of transformation worked really well in this money cleanse format where we first focus on ourselves and then also on the environment around us. I think a lot of times we think of our own money lives, but so much of our lives are interacting with our family, our friends, our coworkers, and so how does that work with our finances as well?
Kim Palmer:
The numbers you share in the book I thought were pretty shocking. You say that according to your research, the average participant saved $950 over 30 days, and that is more than 20% of their pretax income on average. That’s amazing. Where are these savings coming from?
Ashley Feinstein Gerstley:
Honestly, a lot of it is just from intentionality. The coolest part about that stat to me, I was very thrilled always at the end of The Money Cleanse program. I ran it live for five years before turning it into a book, I would ask people at the end about their results and really understand what their income is and how that savings kept going. I think a large portion of that savings was happening month after month after The Money Cleanse, but I think the best part was that they mostly didn’t feel deprived and that it wasn’t like, “Oh, I’m staying home and eating canned beans every night in order to save that $950.” It was a lot of shifts and a lot of things that actually didn’t feel bad to them, which makes something that you’re able to keep going and keep consistent.
Kim Palmer:
Yeah, I think that goes back to what you were mentioning before in that you don’t want to just do this for 30 days, but it’s about setting up some new habits and some things that really stick with you.
Ashley Feinstein Gerstley:
Yes, exactly.
Kim Palmer:
So who would benefit most from doing a 30-day financial cleanse? Is there anyone who doesn’t need it, like Elon Musk?
Ashley Feinstein Gerstley:
Honestly, I’ve found that most of us will benefit from a money cleanse. I’d say the more you don’t want to do it, the more you probably will benefit. One of the exercises we do is keep a money journal, much like a food journal, where you just write down everything that you spend and earn. And I found that the people who dread doing that the most, have the most to gain from actually taking a look.
So I’d say I really think it’s something that most of us will benefit from regardless of our income, because what I found with working with clients across income ranges is you really can’t out earn it. We might think, “Oh, if I just make more money, I’ll finally start saving the way I’d like to.” And then you get the raise, get the promotion, this happened to me over and over again and next thing I know at the end of the month, I’m not saving a lot more than I was before. So I think we might imagine that doubling our salary or getting the raise will actually be the fix that we need, but then somehow our expenses tend to creep up, and that’s where The Money Cleanse can come in.
Kim Palmer:
I know like you said, it varies based on each person, but are there some common things you notice people cutting back on to find those savings? For example, for me, I know when I really focus on it and I short term stop myself from spending, it’s all about those recurring purchases on Amazon, for example, that are so easy to buy quickly. Are there some examples of expenses that people did find relatively easy to cut and really stick with it?
Ashley Feinstein Gerstley:
I would say some common offenders, definitely technology has made it so much easier to spend money and that just keeps getting easier and easier. So I would say Lyfts and Ubers were a shocker to a lot of people. Takeout. UberEats now is one that people complain about a lot. Any daily habits, if you’re grabbing lunch every day with your coworkers or a snack or smoothies. And also just the grocery store in general, which with prices where they are, it’s really hard to decrease spending there, but it is something you can strategize with and try.
Kim Palmer:
Yes, what you’re saying makes a lot of sense. Let’s get into the nitty-gritty a little bit for someone who really wants to try this and get started. When you talk about beginning your 30-day money cleanse, you suggest signing an agreement with yourself and you are acknowledging it’ll be hard, but you’re going to make it a priority. Can you explain why that can help?
Ashley Feinstein Gerstley:
I think often when we start something, and I mentioned this earlier, we can have a lot of energy around it, be excited around it, but I find just going through and thinking through what this commitment actually is, how much time I want to dedicate to it, it’s just a different level of commitment and promise to ourselves. And so along the way, any way that I can, have people feel more accountable or more dedicated to their money cleanse, I want to do it.
The other thing which you’ll notice throughout the book is that over and over again, I am allowing people to make mistakes, to forget to keep their money journal, to feel like they’re completely fallen off the wagon because that’s what happens to all of us. And I’ve noticed that we tend to want to do The Money Cleanse when it’s a week where we have no plans and we’re not going to be spending a lot of money, but it’s actually really great to do it when your life looks typical. Maybe it could be during the holidays when it’s extra challenging or you have a lot of plans with your friends, because that forces us to create a cleanse that works with our life as it actually is, not this time where you can just stay home and cook dinner every night.
Kim Palmer:
You also write about practicing visualization and how that can help people stay on track. How does that work? What does that look like exactly?
Ashley Feinstein Gerstley:
There’s some very cool research about how our mind works when we see things and believe that they are true and can visualize them. I also find a prompt that’s so helpful is to think about someone, let’s say if my goal is to save X number of dollars or to feel a lot more peace of mind with my money, I think there can be very objective goals, but then also more feelings based like, “This is how I want to feel and interact with my money” and thinking about, “Okay, if I were that person, what decisions would they be making?” It allows us to try it on and it also puts our brain to work making that reality happen and reconcile it.
Kim Palmer:
You have already mentioned money journals a few times. I want to understand that better. So what does your money journal look like? Does it help to have everything written out? Is it like any other journal?
Ashley Feinstein Gerstley:
I think the more challenging it sounds to you, the simpler I would recommend keeping it. So the simplest form is the item and the amount. And it can be if you are someone who loves writing things, I have the worst handwriting, but when I’m thinking or trying to brainstorm, I love writing by hand. So if you have a journal you’d like to keep it that way, definitely write it out by hand. But you can also keep it on notes in your phone and use an app. As long as you’re manually entering it in, that part is really important for registering the expense. You can get more fancy with it, more creative. If you want to take note of how you felt before an expense or how you felt after, that can also be really helpful. But I think at a minimum, just the item and the amount is great.
Kim Palmer:
Oh, okay. That’s so interesting. So you would write down every single thing that you spend. And then I like your add-ons as saying how it made you feel. I think I would go that route because I love keeping a detailed journal. So you can say how it made you feel and then does that help inform your future spending decisions?
Ashley Feinstein Gerstley:
I think it does because what happens is you reflect and realize on any expenses that do not feel good afterward, you might notice a common feeling beforehand. So something that happened with a bunch of people who’ve taken the money cleanse is they’ve noticed when they needed a break from work, they would leave the office and go on a walk. They needed that break. They were craving some kind of R&R after working really hard on something, but that might lead to a purchase that they didn’t feel great about. Maybe it was window shopping, then they ran in and bought something they didn’t even know they needed, but now they needed, or they used that time to grab lunch and they didn’t really even enjoy the $16 salad that they were getting. I think noticing how you’re feeling before, especially if how you’re feeling after is opposite or a feeling that you would like less of could be really beneficial and helpful information.
Kim Palmer:
One of my favorite tools that you talk about is focusing on frugal joys. And you include a list of things that sound so appealing, but they’re also free or very inexpensive, things like having a picnic, calling an old friend or taking a free online class. How can focusing on those frugal joys help?
Ashley Feinstein Gerstley:
I’m such a fan of frugal joys too, and while I list out a hundred of them, there really are limitless frugal joys. What actually brings us joy can be very different for each of us. So something that I love doing, someone else might say that sounds horrible. But that’s kind of the fun of it, is testing them out and see where we can add joy in our lives. They’re a great tool. If you want to trade out some joys that cost money for some free or inexpensive ones, that’s great for creating room in a budget. Or if you just want to add joy to your life, you can just start working in those frugal joys. Starting with just trying to find a couple a week I think is great, but if you can incorporate some frugal joys and focus on that joy and really relish in it, that’s a practice that is great for money and just life in general.
Kim Palmer:
You also talk about really thinking hard about your values and what’s important to you, the trade-offs that you are willing to make. For example, maybe you would give up buying that expensive coffee every day if it meant you could go on a big vacation at the end of the year instead. So how do you recommend thinking through your values and what trade-offs make sense for you?
Ashley Feinstein Gerstley:
This was something that really opened my eyes because I often thought of our spending as, “Oh, this is what people do.” I never thought of it as a real opportunity cost. Every time we spend a dollar, we are losing the opportunity to spend it in a different way or to save it. And so in a lot of cases, people are rearranging their spending. They’re not even changing a behavior in order to save. They can be changing a behavior in order to spend it in a different way that will actually bring them more joy.
It’s kind of a bummer at first to realize we can only use or spend our dollar one time, but then it’s also very liberating and creates a sense of intention with how we use our money. And I find that when we look at our spending, and this is something that I recommend doing in any budget, in The Money Cleanse, is looking at each expense in terms of how much you spend on it each year that can allow you to say, “Okay, if I brought my lunch to work, which can feel like a hassle, or sometimes people are going into the office less, maybe both times they go in bringing lunch instead of getting it out or doing it one time instead of doing takeout twice, how much does that save me per year? And is there anything else I’d rather do with the money?”
In The Money Cleanse, we think about the things that bring us the most joy that cost money, and we look at each of our expenses in terms of those things. So for me, especially when I started this money journey and was doing these exercises, I really thought I couldn’t afford to take a trip, but when I added up those daily habits, it was clear that I could if I made some changes, and that was really motivating to me. And it could also be money that you put towards a goal as well, not necessarily other spending. So I find it to be a really powerful exercise to decide what is worth it to us. And the cool part is that there’s no right or wrong answer. Something might be just worth it to you and you decide to keep it and it might not be, but now at least truly which item you want to be spending your money on.
Kim Palmer:
It’s so amazing how quickly those small expenses add up when you look at the whole year, like you said. I think that is such a powerful way to think about it.
Ashley Feinstein Gerstley:
It gives you the true number that you’re working with instead of, “Oh, this thing could never add up to that,” or “I can’t afford to do that.” And also thinking of it in terms of other things like it could be a monthly massage that just felt so out of reach but now feels, “Oh, if I just did this, I could get that.” Or the trip or savings or paying down a credit card, whatever it is.
Kim Palmer:
Let’s talk about how to stick with it after the 30 days. So say someone applied these tools and had a great 30 days and just wants to make sure to extend that. How can we keep it going?
Ashley Feinstein Gerstley:
My favorite financial habit is having money parties. Money parties are time we set aside every month or even every week depending on what you prefer to show our money some love. The main things that I’d recommend doing in your money party is definitely look at how your spending and earning looked for the last period. If it was a week, if it was a month, checking in on any goals, checking in on any guidelines from your money cleanse that you’re trying to continue to live by and what challenges came up. And if they did, instead of punishing ourselves, think “Interesting. What other strategies can I use to stick with them?” And I call them parties for a reason. I think we can make them fun and something that we look forward to.
I have a really fun money party playlist that I’m happy to share, but it’s basically songs that pump me up about money and I get in my PJ’s, I get a cup of tea and I reward myself after, then I’m done with my money party. So there are ways to make it a time that we look forward to and just to set up that calendar reminder so that it’s not something that we put off for months and months.
Kim Palmer:
Yes. I’m so glad you brought up the money parties. And let’s just explain to people what money parties are exactly, because it’s not necessarily… You’re not inviting a ton of people over, right? It can just be with yourself.
Ashley Feinstein Gerstley:
Yes. I would say most money parties are with yourself. If you have a long-term partner, if you’re part of a family, you can definitely bring them in on it. They don’t have to be there the whole time, but the more we’re on the same page with partners and families, the better. I’ve had people do them with friends as well, even digitally. I used to run digital money parties where we would do them all together online. But then you can go out with your friends after. You can go on a date night after. But generally it’s great to do them on your own as well.
Kim Palmer:
That sounds perfect. Well, thank you, Ashley. Any final thoughts to share to leave people with?
Ashley Feinstein Gerstley:
I think the overall thought I’d leave everyone with is that the whole idea of The Money Cleanse is that small shifts and small changes and little steps that feel manageable and accessible can make a huge difference and we can make big progress over time. So it doesn’t have to be hard. It can be fun and you can do it.
Kim Palmer:
Thank you. That is a great message to end on. Ashley Feinstein Gerstley, thank you so much for joining us today.
Ashley Feinstein Gerstley:
Thank you so much for having me and for this great conversation.
Kim Palmer:
That is all we have for this episode. To share your thoughts on talking about finances with your family, shoot us an email at [email protected].
Sean Pyles:
Visit nerdwallet.com/podcast for more info on this episode. And remember to subscribe, rate and review us wherever you’re getting this podcast.
Kim Palmer:
This episode was produced by Sean Pyles and myself. Tess Vigeland helped with the editing. Sara Brink mixed our audio. And a big thank you to the folks on the NerdWallet copy desk for all of their help.
Sean Pyles:
And here’s our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
Kim Palmer:
And with that said, until next time, turn to the Nerds.
Whether or not you’re hosting a gathering or just want to embrace the season and celebrate the occasion in the comfort of your own home, we have all the decor you need.
When you think of Easter home decor, your mind may immediately flash to those glaringly vibrant plastic eggs you used to collect as a child in the yard, or maybe a giant chocolate bunny and an Easter door sticker for all the neighborhood to see. While those things may bring on a tinge of nostalgia, that’s not what we’re after here. As chic, ultrafeminine women in our 20s and 30s, we want our space to feel stylish and elevated, but we also don’t want to miss out on celebrating special holidays.
Thankfully, brands have stepped up their game since we were kids, and much of the home decor available now can be described as anything but cheesy. Let’s explore our favorite Easter home decor you’re going to be sad to take down come April.
Evie’s product selections are curated by the editorial team. If you buy something through our links, we may earn an affiliate commission, at no cost to you. We only recommend products we genuinely love.
The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Learn how to utilize a tax advantaged 529 plan to help your or a friend’s children save for future education expenses.
This Week in Your Money: What are the risks of purchasing a home without an inspection? How can you plan for major expenses when healthcare providers can’t tell you how much their services will cost? Hosts Sean Pyles and Sara Rathner share their hot takes on unexpected financial challenges, with tips and tricks on handling surprise expenses, understanding the importance of home inspections, and dealing with healthcare industry inefficiencies.
Today’s Money Question: What are the benefits of a 529 college savings plan? Can you contribute to a friend’s 529 plan to support their child’s future? NerdWallet writer Elizabeth Ayoola joins Sean and Sara to discuss the essentials of 529 college savings plans. They discuss the types of educational expenses covered, the tax benefits associated with 529 plans, and the flexibility of choosing different state plans. They also answer a listener’s question about how to approach the sensitive topic of financial gifts for education with parents, sharing methods for contributing to a loved one’s 529 plan without overstepping boundaries. Then, they discuss the implications of the Secure Act 2.0 on 529 plans, methods for estimating necessary savings for a child’s education, and tactful ways to discuss educational contributions with parents.
Check out this episode on your favorite podcast platform, including:
NerdWallet stories related to this episode:
Episode transcript
This transcript was generated from podcast audio by an AI tool.
Sara Rathner:
Hey Sean, has money ever made you mad?
Sean Pyles:
Yeah, it has, especially when I get a bill that I don’t expect to pay but have to anyway. So yeah, why?
Sara Rathner:
Yeah. Yeah, those surprise major expenses are a huge pain. I just had to replace my washing machine because the fun never stops in my house.
In this episode, we are going to let off a little steam about what makes us mad in the world of money.
Sean Pyles:
Welcome to NerdWallet’s Smart Money Podcast. Our job today is to help you be smarter with your money, one money question at a time. I’m Sean Pyles.
Sara Rathner:
And I’m Sara Rathner.
So listener, this show is all about you and your money questions. So, whatever financial decision you’re pondering, whatever’s making you mad about your money, let us know.
Sean Pyles:
Leave a voicemail or text the Nerd hotline at 901-730-6373. That’s 901-730-NERD. Or you can email your questions to podcast@nerdwallet com.
Sara Rathner:
In this episode, Sean and I answer a listener’s question about contributing to 529 accounts for your loved ones. But first, we’re going to yell into the void in our semi-regular Money Hot Takes segment.
Sean Pyles:
So here’s how this works. Sara and I just rail against whatever we feel like in the world of money. And let’s put, say, 100 seconds on the clock. That’s what? A second for every penny in a dollar. I don’t know, it’s just an arbitrary number really.
Sara Rathner:
That works for me. It’s a nice round number.
Sean Pyles:
All right, Sara, are you ready?
Sara Rathner:
Sean Pyles:
I’m starting my timer. Go.
Sara Rathner:
All right. I hate the trend where home buyers feel pressure to completely waive getting a home inspection before buying a property. That’s different from the type of waiver where you’ll still do the inspection, but then you’re assuming the cost of anything you find. It’s when you just do without the inspection entirely.
I live in a block of houses that are like 107 years old, and two houses on my block sold with waived inspections where the buyers had to put tens of thousands of dollars unexpectedly into problems in their house that they didn’t know about. I just had a neighbor text me asking for a roofer because the first time it rained since she moved in her house, it started raining on the inside of her house, which means that the seller just lived with that for however long before selling the house and passing the problem onto somebody else.
So especially if you’re a first-time home buyer, if you are going to drain your savings to buy your house, and then you’re not going to have much money left for repairs, be really careful about this. And as a society, can we just make inspections mandatory? That’s more consumer-friendly, honestly. People need to know what they’re getting into, and frankly, people should feel pressure to keep their houses well maintained before sale. There I said it.
Sean Pyles:
You’ve got 40 more seconds if you want to keep on railing.
Sara Rathner:
Oh man, I do? Well, if you haven’t bought a home yet, what’s nice about getting an inspector involved is they’ll look at all the major systems of the house, the appliances, the roof, all sorts of stuff, the electrical, the plumbing, and they will tell you the lifespan of some of those major things like a furnace or a boiler, your roof, your HVAC system. And even if something is going to go in the next year or two, at least you have this laundry list of things and when they’ll probably need to be replaced, and you can begin to budget for those replacements.
Sean Pyles:
Okay, that’s 100 seconds.
Sara Rathner:
Boom. All right, Sean, you got any reaction?
Sean Pyles:
Well, I totally feel that, because buying a house without knowing what’s wrong with it is very risky financially. Buying a house can be financially risky in and of itself, depending on how expensive the home is. But imagine getting into the house, it’s your first day, you’re super happy to be a homeowner, and then you realize, oh, it’s raining inside the house, or the crawl space is infested with termites. You don’t know what you’re getting into if you don’t have an inspection. And even if it may make you a more competitive buyer, it isn’t worth it, in my opinion, to get yourself into something like that because you just don’t understand the risks you could be taking on. And I’m all about mitigating risks as much as possible.
Sara Rathner:
All right, Sean, I have had my turn, and now it is your turn. I have set my timer for 100 seconds. And go.
Sean Pyles:
Okay. Today I am mad about industries that are designed to extract money from us while making our lives miserable or at least really frustrating. And I have one, maybe two, examples depending on how far 100 seconds takes me.
First step is healthcare. Americans spend far more on healthcare than other wealthy nations. Nearly 18% of our GDP in 2021 went to healthcare. And what are we getting for it? An incompetent extractive industry that exploits nearly everyone that engages with it. Among wealthy nations, the US has the highest rates of infant and maternal mortality and excess deaths, not to mention the daily indignities that come with trying to access healthcare.
I have a recent example that is a microcosm of these larger issues. I recently got a bill in the mail for some regular lab work, and the thing is, I have these labs done every few months, and they’re always covered by my insurance. But this time I got a surprise bill for nearly $200, and I’d already had an expensive month with some car repairs, and I was not excited about the prospect of an additional $200 to cover. So I called my doctor, and they said, “Oh yeah, the company that does the lab work just messed up. Oops, just disregard the bill.”
So if I hadn’t called my doctor, I would have been on the hook for this bill. This was a relatively small bill as far as medical bills go, and it was fairly easy for me to clear up. I’m obviously very fortunate in this case, but for so many people, especially those with chronic illnesses or complex medical conditions, the onslaught of navigating insurance, verifying that you’re being billed correctly and then somehow coming up with the money to cover bill after bill is just totally exhausting and can make achieving financial goals nearly impossible.
So why am I going on and on about things that we already know too much about?
Sara Rathner:
Just so you know, you’re over time.
Sean Pyles:
Oh, God. I’m going to keep going. I’m almost done.
Sara Rathner:
Keep going, Sean. Let’s do this.
Sean Pyles:
All right. I am going on and on about this because I think it’s important to remind people that it does not have to be this way. We are in an election year, people, so I don’t know, let’s try to do something about it.
Okay, Sara, how many seconds was that?
Sara Rathner:
Oh, well I stopped timing it the second it hit the clock, so that might’ve been just an extra 10 seconds, honestly.
Sean Pyles:
Okay. It’s hard to fit so much into such a small amount of time.
Sara Rathner:
You know what? Your rage is such that it cannot be fit into a tiny container and that is valid. It’s okay to let the rage out and give it some more space.
I agree with you. What’s annoying is, for example, this past year I had a baby, and that is expensive to the tune for me of $7,000 out of pocket after insurance. Hi. $7,000 is a lot of money, people.
And what was annoying about that, and this is something for anybody who maybe is facing a planned medical procedure like a surgery or childbirth or anything like that, or who takes medication for chronic illnesses, I tried to call the billing department at the hospital to talk to my insurance company to say, “Can you at least give me an idea of how much money I will be out?” I knew going into it that I would be having a C-section. So I could say, “I’m having a C-section, that means I have to work with an anesthesiologist, which is an extra expense. Can you tell me ballpark, even if you’re off by a grand, how much should I budget for this?” And everyone’s like, “We don’t know.” Shrug emoji.
Then the bills just fly in for months and you think you’re done. So you’re like, “Okay, we’re done paying for the hospital bill. Now we can put our money into other stuff.” And then you get another bill for like, $1,100.
Sean Pyles:
And you have to question, was this billed correctly? Was it coded correctly? You don’t know. And it just flies in the face of all the things that we try to talk about in the personal finance space, which is around anticipating big expenses, budgeting for it, saving up for it if you can. It’s impossible when you don’t know what you’re going to be paying.
Sara Rathner:
Right, and if you’re facing surgery, what, are you just going to not have anesthesia to save money? Do not recommend.
Sean Pyles:
That is not a money-saving tip that we would recommend. No.
Sara Rathner:
No, that’s a place where you should spend good money, get good and numb.
But really it is an extra expense. And that’s so, so frustrating because you are not only out a lot of money, but you’re feeling kind of vulnerable because you’ve just gone through some medical stuff, even if it’s just blood work or something, and you want to take good care of your health, and it’s sometimes financially impossible to do that.
Sean Pyles:
Yeah. Not to mention completely demoralizing.
Sara Rathner:
Yeah, and some people just don’t go to the doctor because of the cost, or the dentist. And then years later, they’re faced with really serious health issues because they’ve been neglecting their health because of the cost.
Sean Pyles:
Yeah. I don’t know, it’s really tough in this space to talk about medical expenses because at NerdWallet and in the personal finance realm, we try to give actionable advice, and a lot of the time the advice is reactive. If you get a medical bill, you do have to ensure that it’s coded correctly. Maybe try to work out a payment plan with your medical office if you can’t cover the bill in one go. But it’s so hard to be proactive like you were just describing and understand what you’re going to have to pay if you want a routine procedure like blood work or something more significant like having a baby, makes me want to yell into the void all day every day.
Sara Rathner:
Yeah. Well, we took more than 100 seconds about this. If you have a body, then this is something that affects you, and it is really hard to deal with those extra unexpected costs.
Sean Pyles:
All right, so that is what we are mad about this week, listener. I know there’s a lot to be mad about in the world of money, so do not keep it in. Let us hear what you’re mad about, and we might just share it on a future episode.
You can text your Money Hot Take to us or leave a voicemail on the Nerd hotline at 901-730-6373. That’s 901-730-NERD. Or you can email it to podcast@nerdwallet com.
Sara Rathner:
All right, I don’t know about you, but my heart rate is starting to come down from all of that. Ooh, deep breaths, everyone. This episode’s money question is up next. So calm down too and stay with us.
Sean Pyles:
This episode’s money question comes from Lauren, who wrote us an email. Here it is.
“Hi nerdy Nerds. I’m not a parent. I’m never going to be a parent. Because of that, I have made it part of my financial plan to contribute to the 529 plans of kids around me. Because I don’t have nieces and nephews, I’m contributing toward the savings of my friend’s three-year-old. How much needs to go into a 529 starting at age two or three to cover a four-year private college?”
“I got the details on this kid’s 529 plan from his dad and started contributing about $100 a month. We didn’t talk about it. I intend to keep chipping in until the kid is done getting formal education 20 to 25 years from now. How do I talk to the parents? I want to understand if I’m helping enough without becoming privy to their private financial details. I also don’t want to make it seem like I have any vote whatsoever in how the kid charts an educational path. How do I broach this with the parents?”
Sara Rathner:
To help us answer this listener’s question, on this episode of the podcast, we are joined by NerdWallet writer Elizabeth Ayoola. Welcome.
Elizabeth Ayoola:
Hello, and hi.
Sean Pyles:
Elizabeth, so good to have you on.
So let’s start by setting some groundwork. Can you please describe what a 529 college savings plan is, how they work, and why they’re such a big deal?
Elizabeth Ayoola:
A 529 plan is a huge deal indeed to me anyway. I wish I had one when I went to college because I was left with a huge bill. But anyways.
529s are tax advantaged college savings plans, and they allow people to save and invest money for education expenses. So, with that said, the money gets to grow, and it gets to compound, which can mean beneficiaries have a nice education pot to pull from when they need the money. And for those who don’t know what compounding is, it’s essentially when your interest earns interest.
Sara Rathner:
It’s the eighth wonder of the world.
Elizabeth Ayoola:
Sara Rathner:
So you mentioned education expenses and that’s what the purpose of this account is, but what kinds of education expenses can you use a 529 to fund?
Elizabeth Ayoola:
Funds in a 529 account can be used to cover a vast range of qualified expenses, and that can range from tuition to computers and education related equipment. The expenses can also be used to pay for education needs of your beneficiaries. And the good thing that I like is that the beneficiaries can be in anywhere from kindergarten through grade 12. So that said, it’s not only for college students.
Sean Pyles:
Right, that is a really good point because people hear about 529 accounts, and they think they may be specifically for people going through a traditional four-year education, but people can also use the funds in the 529 college savings plan to cover things like trade schools too. So it really isn’t only for that traditional four-year higher education route.
Sara Rathner:
So earlier you mentioned that 529s are tax advantaged accounts. Can you talk a little bit about the tax treatment of them, and what should people know when they’re considering opening a 529?
Elizabeth Ayoola:
Well, one thing that I personally like about these accounts that some people don’t know also is that some states offer a tax deduction if you contribute to their plan. And when I say their plan, I mean the state that you live in. But there is no federal tax deduction for a 529 contribution. So it’s only at a state level. The tax deduction is usually capped. So no, you can’t just deduct your entire contribution. The deduction amount varies from state to state. So it’s best that you check in your state what the amount may be, if they offer it.
And a little bit off-topic, but I also like that the IRS doesn’t set a cap on your contributions to a 529 account, although some states do set a limit.
Sean Pyles:
And I’ll call out two other tax benefits of 529 college savings plans. The first is that investment growth in this account is tax-free, and second, distribution for qualified expenses like tuition or books are also tax-free.
Elizabeth, another important thing to know about 529 college savings plans is that each state has their own, and you don’t have to choose the 529 plan from the state that you live in. And this can all get a little bit confusing because there are so many states to choose from. So, at a high level, can you outline the main differences between a 529 from one state to the next, and how would someone go about choosing which state’s 529 plan to use?
Elizabeth Ayoola:
One of the major differences that people should know and a reason that people may cheat on their state’s 529 plan is lower fees. I personally have a 529 from a different state than my current home state for that very reason. So people should consider shopping around and comparing fees before opening an account. Ultimately, the goal should be to do some math and see whether the deductions and the credits that you’re going to get in the state that you live in are worth more than the lower fees that you could get in another state in the long term.
Also, note that you can open multiple 529 accounts. I have multiple 529 accounts. I recently opened a second one in my home state, Florida, because my son was awarded a grant and it could be transferred to a 529 account, but the catch was it had to be a Florida 529 plan.
Sara Rathner:
So 529s have some flexibility, which we talked about before, not just for four-year educations, but also for trade schools and for K to 12 expenses as well. And interestingly enough, 529s were just made even more flexible. Can you talk about recent changes around the ability to roll 529 funds into a Roth IRA, and what that means for folks who maybe aren’t considering going to college?
Elizabeth Ayoola:
The Secure Act 2.0 was recently passed, and if I can be honest, that’s what motivated me to open up my first 529 account, and I just opened it last year. I was always on the fence and only saved money in a brokerage account because I was afraid of what would happen if my son decided not to go to college in 15 years. He’s six, by the way.
I decided to get off the fence when the Secure Act 2.0 made it possible for people to roll at least a portion of the unused funds into a Roth account. However, you do have to wait until 15 years after you’ve opened the 529 account before you can roll those funds over. And you can also only roll up to a certain limit starting in 2024. It may be ideal to read the IRS’s rules, they have a lot of fine print around the conversion or speak to a finance professional about it.
I think Roths are also awesome because they aren’t subject to required minimum distributions and withdrawals. They’re also tax-free when you meet certain requirements like waiting until 59-1/2, amongst other rules.
Sara Rathner:
All right, well thank you for that great summary of the tax rules surrounding this new change. We just want to let you all know that we are not investing or tax professionals, and if you have any specific questions to your own situation, definitely consult a professional who can give you guidance.
Now let’s turn to the fun stuff. The math, Sean. I know that you are in the midst of your certified financial planner coursework. I have slogged through that myself. It is a lot. It is a lot of math.
Sean Pyles:
Sara Rathner:
And now that you know how to do it, I’m sure you’re eager to show off your chops. So are there any insights you can share that will help our listener figure out how much they need to save every month or every year to help their friends reach their savings goals?
Sean Pyles:
As a matter of fact, yes. And you’re right, I have been waiting for an opportunity to show off what I’ve been learning about because often I’m just doing calculations in silence and this is a time for me to be loud and proud about hitting buttons on a calculator. So let’s do it.
I’ll spare you and our listeners the specifics of the calculation, but I plugged the listener’s situation into a time value of money calculation and got a rough estimate for how much they will need to save.
Sara Rathner:
All right, drum roll. What’s the number?
Sean Pyles:
For our listener to meet the savings goal that they outlined in their question, remember, they want to save for four years of education at a private college starting now-ish and saving until the kid finishes school. They would need to save around $8,000 per year. Obviously, that’s a lot of money to contribute to a 529 account, no less for a kid who isn’t your own. And this is why 529s are often just part of the picture when it comes to paying for college, which usually includes some combination of scholarships, grants and loans and generous gifts from family friends.
Sara Rathner:
That is definitely more than a hundy a month.
Sean Pyles:
Yeah, that’s for sure.
All right, so all of that math out of the way, I want to talk about the other part of our listener’s question. They seem to be concerned about how much they should contribute and also how to talk about this with their friends. I am not a parent, so I would love to hear from both of you who are parents, how you would approach the situation if you had such a generous friend. Would you welcome the money, or say get out of my business? Or if you are going to accept this money, if you want to have this conversation with your friend, how would you want them to communicate that with you?
Elizabeth Ayoola:
Honestly, I would welcome the money, especially because I’m a single mama. So as a matter of fact, my friends always contribute to my son’s savings account in London for his birthdays or holidays and I really, really appreciate it. It can be a better gift to me than toys that stab me in the foot within a few days.
Sean Pyles:
Elizabeth Ayoola:
I would also appreciate a friend asking me what my savings goals are, so they know how to support that goal. However, I do think, for the sake of boundaries, I would like my friend to ask me my comfort level with the topic before they dive in and start trying to give advice.
I think it’s also important to note that not everyone is comfortable discussing money or financial goals. But with that said, here’s an example of maybe how somebody could say it. So you may say, “Hey, I want to help you reach John’s college savings goal. Are you comfortable discussing that target number you have in mind, and can you tell me how I can support that?” Or another option could be you saying, “Hey, would you like to do the math yourself and then let me know how I can support that goal?” So those are just a couple of options.
Sara Rathner:
Yeah, I mean, I’m not going to look a gift horse in the mouth. College is expensive now, and it’s only going to become even more expensive in the future. Even in-state tuition, where I live in Virginia, is often over $20,000 a year. That used to be the economical way to get a four-year degree, and now it’s also very, very expensive. So what’s it going to be like by the time my kid’s in college? I don’t know. A lot.
Sean Pyles:
I think we can confidently say more money.
Sara Rathner:
Confidently, we can say a whole lot more money.
I would want my friends to decide for themselves what they feel comfortable giving, because I don’t feel comfortable telling another person how they should allot their money because they have other competing financial goals and obligations. And I never want to tell another person what they can do with their money unless they specifically ask me to tell them what to do with their money, which nobody ever asks me.
Sean Pyles:
And you also don’t want to give the impression that your friends can’t look after their own family’s finances, right? That’s a bit of the awkwardness underlying the question, is you want to help someone that you care about and this child that you’re seeing grow up in the world, but you don’t want to impose your will upon them. It seems like our listener is being very thoughtful about that. And you don’t want to make it seem like you think they aren’t doing enough.
Sara Rathner:
Right, or you think their kids should go to a four-year private university because that’s what you value, but maybe the parents have other values that they want to impart upon their child as the kid grows up, and then the kid will go off and do their own thing as a young adult.
In my case, we have a 529 for our son. We have family members who’ve contributed money. They’ve just written checks to us, and then we deposit it into our account that is tied to our 529 and then deposit the money into the 529.
Ultimately, when you contribute, you do go through the account owners, and that’s oftentimes parent or guardians. You are going to have to communicate with them because they’re ultimately the gatekeeper of that account. They are the owners, and then the child is the beneficiary.
Sean Pyles:
That actually brings up something that I wanted to talk about, which is who would own this account? The listener could in theory open up a 529 account on their own for this kid. But long-term, it’s probably going to be easier if the parents are the owners of the account, because that way when the kid is eventually ready to go to college or trade school or what have you, the parent can be the one managing those distributions.
Personally, I know as a friend, as much as I love my friends and my friends’ kids, I don’t want to have to manage that down the road. So that’s something else that they should think about when they’re talking about this with their friends.
Sara Rathner:
I definitely agree with talking to the parents and ultimately contributing to an account that the parents or guardians are in charge of.
Sean Pyles:
Well, Elizabeth, do you have any final thoughts around 529s and helping your friend’s kids afford college?
Elizabeth Ayoola:
I think we have given some very juicy tips here and only two more things come to mind, which is one, while it’s noble to contribute to your friend’s kids or loved one’s kids’ 529 account, please take advantage of any state income tax deductions that you might be eligible for. The rules around this can be muddy. And I know the original listener who asked this question lives in a different state than where he’s contributing, but sometimes you’re able to get a deduction depending on the state that you live in. So if you can get money back, I mean, why not?
My second thing that I’ll say is that if your loved one doesn’t have a number in mind, guide them to a college savings calculator or run the numbers together over coffee if they’re open to doing that.
Sean Pyles:
Great. Well, thank you so much for coming on and talking with us.
Elizabeth Ayoola:
I loved it. Thank you for having me.
Sean Pyles:
And that is all we have for this episode. If you have a money question of your own, turn to the Nerds and call or text us your question at 901-730-6373. That’s 901-730-NERD. You can also email us at [email protected].
Visit nerdwallet.com/podcast for more info on this episode. And remember to follow, rate, and review us wherever you’re getting this podcast.
Sara Rathner:
This episode was produced by Sean Pyles and myself. Kevin Berry and Tess Vigeland helped with editing. Sara Brink mixed our audio. And a big thank you to NerdWallet’s editors for all of their help.
And here’s our brief disclaimer:
We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
Sean Pyles:
And with that said, until next time, turn to the Nerds.
Automation, Pre-Approval, QC Products; Rent vs. Buy; More Proposed Paperwork for Lenders
<meta name="smartbanner:author" content="We now have a native iPhone and Android app. Download the NEW APP”>
This website requires Javascrip to run properly.
Automation, Pre-Approval, QC Products; Rent vs. Buy; More Proposed Paperwork for Lenders
By: Rob Chrisman
7 Hours, 10 Min ago
Saturday was George Thorogood’s 74th birthday, and fans know that he wrote the classic tale of rent collection, land ladies, and payment avoidance. Time flies, but that may change. We’re faced with an actual five-day workweek this week, with no Federal holidays until Memorial Day, May 27th, two months away! Yikes. Here in Houston at the TMBA’s Southern Secondary Conference, the attendees are already making use of what time they have, discussing best execution procedures, warehouse tactics, management strategies, economic trends, the market for servicing, and operational efficiencies. I’m a capital markets guy, so arguably learned math good. But I didn’t learn math like this! MBS versus cash sales pick-ups is always a favorite topic, although last year the market was deluged by excess servicing trades. Flow and bulk purchasers of HELOCs and 2nds is search being undertaken by some, as well as climate change and insurance cost increases. (Found here, this week’s podcast is brought to you by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite’s three core products – nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics – unite the people, systems, and stages of the mortgage process. Today’s has an interview with Yardsworth’s Matt Lucido on creative ways that homeowners can leverage their tappable equity, and how we can see more supply hit the market.)
Lender and Broker Services, Products, and Software
Promising Updated MBA Forecast: The MBA released their recent forecasted predictions on mortgage originations (1 to 4 family). A welcome sight is that they predict a 25+ percent increase in 2Q over 1Q 2024 and a 13 percent increase in 3Q over 2Q 2024. In addition, the 3Q 2024 prediction is nearly 22 percent higher than the same quarter in 2023’s actual originations. As volumes continue to rise quickly, having a solid quality control program is as important as ever in order to continue to produce quality loans while mitigating risk. Quest Advisors has nearly 30 years of experience in assisting mortgage lenders with their quality control needs. Examples of services Quest Advisors provides, are Post-Closing and Prefunding loan QC reviews, along with Servicing, HMDA, and MERS audits. To find out more information on how Quest Advisors can help, please reach out to Matthew Reich at (336) 404-1409.
Tired of paying costly Agency LLPAs for non-owner occupied (NOO) and second home loans? More than 150+ originators have signed up to receive daily mandatory bids and MAXEX is currently winning more than 10 percent of loans bid! Get competitive pricing from five leading non-agency buyers and underwrite to Agency guidelines while avoiding Agency LLPAs. It all seamlessly integrates with your existing bulk trading process. Visit maxex.com/conforming to learn more.
Get a Sweetheart Deal with Loan Stream’s February Specials on FHA/VA and Non-QM price improvements! Get 37.5 BPS Price Improvement on all FHA and VA, Low Balance, and High Balance >=680 FICO, excludes DPA and 25 BPS Price Improvement on FHA Streamlines/IRRRLS. Plus, a Non-QM Price Improvement of 50 BPS on all Non-QM, not including Closed End Seconds and Select Programs. Valid for loans locked 2/1/2024 through 2/29/2024. Terms/Conditions apply see our site and talk with your Account Executive.
“Everyone wants to make their borrowers sticky and we’ve got the Krazy Glue. I’m talking ‘gotta get to the emergency room to get your fingers unstuck’ kind of glue. It’s called QuickQual, it integrates with Encompass® by ICE Mortgage Technology™ and once you pre-approve your borrower, they’re coming back.
Just as Morpheus offered Neo the ultimate choice between reality and illusion in The Matrix, Dark Matter Technologies invites you to choose between the past and the future of mortgage lending in its “Choose Your LOS Experience” ad campaign. Take the blue pill and stay the course with old-school thinking and technology. Or take the red pill and join DMT to revolutionize your business with cutting-edge technology, unparalleled automation, and relentless innovation, as evidenced by the Empower® LOS and the AIVA® artificial intelligence solution. When it comes to your future, “choose wisely.” Schedule a demo with the Dark Matter team today to explore how the Empower LOS can transform your business.
Is More Paperwork Heading Our Way?
Do we need more rules and regulations and paperwork, or better rules and regulation and paperwork? The federal bank regulatory agencies announced their first of a series of requests for comment to reduce regulatory burden. The Economic Growth and Regulatory Paperwork Reduction Act of 1996 requires the Federal Financial Institutions Examination Council and federal bank regulatory agencies to review their regulations every 10 years to identify any outdated or otherwise unnecessary regulatory requirements for their supervised institutions.
To facilitate this review, the agencies divided their regulations into 12 categories and are first soliciting comments on their regulations in three categories: Applications and Reporting, Powers and Activities, and International Operations. Comments on the relevant regulations will be accepted for 90 days after publication in the Federal Register.
But Ballard Spahr reports that on February 16, the Financial Crimes Enforcement Center (“FinCEN”) published a Notice of Proposed Rulemaking (“NPRM”) regarding residential real estate. The final version of the NPRM published in the Federal Register is 47 pages long. We have created a separate document which more clearly sets forth the proposed regulations themselves, at 31 C.F.R. § 1031.320, here.
“FinCEN also has published a Fact Sheet regarding the NPRM, here. The Fact Sheet, slightly over four pages long, is helpful and walks through the basics of many of the proposed requirements. The NPRM proposes to impose a nation-wide reporting requirement for the details of residential real estate transactions, subject to some exceptions, in which the buyer is a covered entity or trust. Title agencies, escrow companies, settlement agents, and lawyers need to pay particular attention to the NPRM because, based on FinCEN’s “cascade” approach to who should be responsible for complying with the reporting requirements, these parties are the most likely to be responsible.
”Rent Versus Own” Economics
If you’re still paying off your mortgage, renting is likely cheaper than owning in each of the nation’s 50 largest metros. Median rent costs are lower than median homeowner costs for those with mortgages but higher than costs for homeowners without mortgages. LendingTree analyzed housing data to compare monthly rental and housing payments for homes with and without mortgages in the 50 largest metros in the U.S.
The difference between median housing costs for homes with a mortgage and median gross rent is $563 a month. The spread in costs between renting and owning a home with a mortgage is widest in the San Jose, Calif., San Francisco, and New York metros. The difference between the median monthly housing costs for homes with a mortgage and the median monthly gross rent in these metros is $1,341, $1,303, and $1,289, respectively. Phoenix, Orlando, Fla., Jacksonville, Fla., and Atlanta have the narrowest gaps between renting and owning a home with a mortgage. In Phoenix and Orlando, median gross rent costs are $87 and $145 less than median monthly housing costs for homes with a mortgage. In both Jacksonville and Atlanta, the difference is $216.
That said, Barron’s reports that, “Prospective buyers spent the President’s Day holiday last week window shopping, early data suggest. ‘Showing activity was strong,’ says Orphe Divounguy, a senior economist at Zillow, citing data from home tour software company Showingtime. Home touring activity was up 19.4% from the start of the year, pointing to a strong seasonal ramp-up.”
Capital Markets
Markets are known for “getting ahead of themselves,” and the latest example may be the “insatiable demand” for Nvidia’s artificial intelligence chips. The stock has shot up, resulting in the company briefly surpassing a $2 trillion valuation. But other equity prices have tagged along, boosting the general stock market.
That said, investors have been walking back expectations for Federal Reserve rate cuts. Goldman Sachs, for example, has pushed back expectations for a Fed rate cut to June. If you like rates where they are, fine. If you’re hoping for lower rates to jump start your business in the near future, well…
The dominating market narrative recently has been that while interest rate cuts may be appropriate at some point this year, it is not likely to be anytime soon. Resilient economic growth and optimism that inflation will continue to fall in the face of high interest rates has fostered household demand, bolstered expectations the U.S. will avoid a downturn in the near term and forced investors to ratchet back bets on early rate cuts. Philadelphia Fed President Harker warned against betting on early rate cuts late last week, saying “I will signal my belief that we’re ready for a rate decrease when all the data, both the hard and the soft, give me that signal.” Pricing in fed funds futures has all but erased the chance of a March rate cut, and the chance of a cut in June is currently a coin-toss. Economists now see a 40 percent chance of recession in the next year, the lowest reading since mid-2022.
Last week was fairly quiet in terms of economic releases and the few that came out did nothing to change the current narrative of U.S. economic conditions. The Leading Economic Index declined 0.4 percent versus a -0.3 percent forecast and is now just two points above its April 2020 low. Historically, the prolonged decline observed in this data set predates a recession, but at the moment, it appears this recession signal is out of step with current economic conditions. Elsewhere, existing home sales rose 3.1 percent in January thanks in part to declining mortgage rates in December.
Since then, rates have moved back up towards 7 percent. The FOMC has repeatedly indicated it is in no hurry to begin reducing the fed funds rate until they are fully confident inflation is sustainably moving towards their 2 percent goal.
This week opens with $169 billion in month-end supply over the first two days along with the usual $309 billion in Treasury bills. There are several important economic releases with the highlight being the Fed-favorite PCE price index for January is on Thursday. We will also receive durable goods for January, home price indexes for December, consumer confidence for February, the second reading on Q4 GDP, Chicago PMI for February, January construction spending, and final February consumer sentiment.
The deadline for Congress to avert a partial government shutdown is Friday. Today starts quietly with new home sales for January, expected to register 680k versus 664k in December, Dallas Fed manufacturing business index for February, and remarks from the new Kansas City Fed President Schmid. The Treasury will auction $63 billion 2-year notes, $70 billion 6-month bills, $63 billion 5-year notes, and $79 billion 3-month bills. We begin the week with Agency MBS prices roughly unchanged from Friday’s close and the 10-year yielding 4.24 after closing last week at 4.26 percent. Helping ARM rates, the 2-year is down to 4.68 percent.
Jobs and Transitions
Logan Finance is hiring! Non-QM Account Executives are in high demand at Logan Finance, especially those of you in Florida. Contact us today to learn more. Speaking of hiring, Logan is happy to announce that Ryan Rathert and Sarah Gonzalez have joined the executive team as Chief of Staff and Chief Operating Officer, respectively. Ryan is a proven mortgage finance wizard and Sarah a renowned industry maven, so put your sunglasses on, because the future at Logan is bright! And the spotlight will be on Logan’s SVP Business Development, Paul Jones, as he presents “Discover the DSCR Difference with Logan Finance”, session #2 in the monthly series, “The Modern Non-QM Experience”. Join Paul on March 6 at 2pm ET. Register here. If you’re looking for a Non-QM career boost, send your resume or check out LoganWholesale.com and LoganCorrespondent.com for more information. Join Logan and become a #LoganLeader today.
“Don’t just close loans, close the gap on your potential. Kind Lending is seeking mortgage professionals with an entrepreneurial spirit and KIND mindset. We will provide a comprehensive catalog of loan products to serve your clients, along with advanced marketing and tech tools to grow your brand and exponentially expand your reach. You will be empowered to rewrite your success by leveraging the powerful tools available at your fingertips. It’s your business. We are here to fuel it. If you are ready to build win-win relationships with a company that values you and your growth, contact Traci Miller, National Talent Acquisition Manager.”
Click n’ Close, a multi-state mortgage lender serving consumers and mortgage originators through its wholesale and correspondent channels and formerly known as Mid America Mortgage, announced Polly Cracchiolo has joined the organization’s third-party originator (TPO) sales team as an account executive.
Download our mobile app to get alerts for Rob Chrisman’s Commentary.
Share via Social Media:
All social media shares will include the image and link to this page.
Looking for the best business ideas for kids? Finding business ideas for kids is a great way for them to learn about starting their own business, being responsible, and understanding money from a young age. They get to understand how to set goals, handle money, and feel the joy of earning their own extra income….
Looking for the best business ideas for kids?
Finding business ideas for kids is a great way for them to learn about starting their own business, being responsible, and understanding money from a young age. They get to understand how to set goals, handle money, and feel the joy of earning their own extra income.
Whether it’s in the summer, after school, or on weekends, having a small business can be a fun and educational thing to start.
I did many different things as a kid to make extra money, and they all taught me so much. There are many different ways for kids to make money, as you will learn below.
Best Small Business Ideas for Kids
Here are the best business ideas for kids to start.
1. Sell arts and crafts
If your kid enjoys being creative and making things with their hands, selling arts and crafts can be a great business idea for them. It’s not only fun but can also help them earn some money.
Here are some crafts kids can make and sell:
Bead jewelry – They can make necklaces and bracelets with colorful beads.
Homemade candles – Candles are simple to make and can be sold to people who like to add a cozy feel to their homes.
Paintings – If they like to paint or draw, they can create artwork to sell.
Slime – Slime is really popular and fun to play with. Kids can make and sell their own slime in different colors and maybe even add things like glitter to make it unique.
Pet toys – If they love animals, they could make toys for pets. Choose materials that are safe for animals and design toys that pets would enjoy.
Soap – Homemade soap is always nice to have, and people love to buy it. This can be a fun item to make on their own.
Stickers – Everyone loves stickers and this can be a fun way to make extra money on Etsy or in person.
Recommended reading: 16 Best Things To Sell On Etsy To Make Money
2. Tutoring
If your child is really good at a subject like math or science, they can start a tutoring business. They can help other kids who might find those subjects tough.
Tutoring is something they can do after school when they’re finished with their own homework. It’s a great way to use what they know to help others and even make some money.
Learn more at The Best Online Tutoring Jobs.
3. Babysitter
If your child loves being around kids, babysitting can be a great way to start their journey into the world of small businesses for kids. It’s not just about watching kids; it’s about creating a fun and safe environment while parents are away.
Your child’s reputation is important, and they can start with their neighbors or family friends who already know and trust them.
To decide what they should charge, you can look at what other babysitters charge in your area, but consider how much experience your kid has.
I recommend having your child learn about basic first aid and child care, and you can find classes through community centers or the Red Cross.
Babysitting is what I did the most of as a kid. It was my first full-time job, actually. Starting at the age of 14, I was working around 40 hours per week in the summer taking care of a baby in my neighborhood (I found the babysitting ad on a local bulletin board!). I earned $10 per hour. The mother was a nurse, so I was working about 13 hours per day for a few days each week.
4. Pet sitting and dog walking
If your kid loves animals, starting a pet care service or dog walking business could be perfect for them. It’s more than just a job; it’s a way to care for pets when their owners can’t.
In this job, you might look after pets either at your own home (called pet boarding) or take care of them at their home.
Depending on their age, your child may walk the dog for 15 to 30 minutes a day, or more.
I was recently looking at a local bulletin board, and a parent put up an ad for their 10-year-old to walk dogs. The parent would be there as well (to ensure the safety of both the child and pet, of course), but it was a small business idea that the kid wanted to start. If your child is a little older, they may be able to do this on their own as well.
5. Lemonade stand
Starting a lemonade stand is more than just a fun activity; it can be their first step for starting a business as a kid!
Your child will probably want to start with a simple recipe, as lemonade does not have to be hard. They can try different flavors, like strawberry, to make your stand unique.
They will need pitchers, cups, ice, and a table.
Work out how much each glass of lemonade costs to make, and then decide on a price that makes a little profit but is still affordable for customers.
6. Mow lawns
Mowing lawns is a great way to start a small business as a kid. It’s simple to get going, and kids can make money during spring and summer.
They’ll need a lawn mower, fuel, and basic gardening tools.
Next, it’s time to set rates. Figure out how much to charge for each yard. A good plan is to look at what others charge and then set a competitive price.
Your kid can talk to neighbors, family, and friends to find new lawn mowing jobs.
I know many, many families who have kids who mow lawns to make money. I also know several people who have older kids who have turned this into a full-time business that has grown with them as an adult.
7. Rake leaves
Raking leaves is a great business idea, especially during the fall. Trees drop their leaves and many homeowners need help gathering and disposing of them.
To get started, your kid will need to have a sturdy rake, bags for leaf collection, and a pair of gloves to keep their hands clean and protect them from blisters.
8. Shovel snow
If you live in a place where snow falls, a kid can make money by shoveling snow. This job is great if they enjoy being outdoors and don’t mind the cold. Start by asking family and neighbors if they need help clearing their driveways and walkways.
They will need a few things to start:
A shovel: This is the main tool, of course!
Warm clothes and gloves: Stay warm while they work.
Your kid can hand out flyers or tell friends to spread the word. Social media can be a big help too. A simple post can let everyone in your neighborhood know that your kid is ready to help clear the snow.
9. Birthday party assistant
If your kid likes being around kids and celebrations, becoming a birthday party assistant could be a fun way for them to earn money.
They will help set up decorations (balloons, banners, and table settings), organize games (such as being ready to lead a game of musical chairs or a treasure hunt), and make sure the party runs smoothly (they might help serve cake and snacks to the little guests.).
10. Start a YouTube channel
Starting a YouTube channel can be exciting. If your child is under 13, remember, they can’t have their own account. But with a parent’s help, they can still share videos.
Your child can pick something they love, whether it’s science experiments, video game walkthroughs, or crafting tutorials.
They will want to post videos regularly – maybe post once a week to start.
Remember, it’s all about doing something fun and sharing what they love. Starting a YouTube channel takes work, but if they stick with it, they could make something really cool.
11. Lifeguard
If your child is looking for a responsible way to earn some extra cash, becoming a lifeguard could be a way to make money.
Not only does this gig teach important life-saving skills but it also teaches them responsibility and discipline. Many local pools or community centers offer lifeguard certification courses, giving them an excellent opportunity for young entrepreneurs to get valuable training.
Running a small lifeguard business can be a win-win situation for kids and the community. They can sell their services to local events, pool parties, or even provide private swimming lessons.
Note: In most states, you need to be at least 15-years-old to become a lifeguard.
12. Start a greeting cards business
Starting a greeting card business is something your kid can have fun with and get their creative juices flowing! They can make cards for birthdays, holidays, thank you, congratulations, or just to say hello.
They will need:
Art supplies, like colored pencils and markers
Cardstock or heavy paper
A printer (if they’re printing designs)
Digital design software like Canva (this is optional)
They could start by selling to family and friends or at school events. As they grow, they could try selling them at local markets or even online.
13. Neighborhood helper
As a neighborhood helper, they can sell their services to people around your community. This is a great way to help others and earn some money.
Your child can sell services such as:
Car washing: Wash cars for people in the neighborhood for a shiny finish.
Grocery running: Offer to pick up groceries for those who can’t go themselves.
Gardening: Help maintain gardens by planting flowers or weeding.
Lawn care: Keep neighbors’ lawns neat by mowing them regularly.
Pet walking: Walk neighbors’ dogs when they’re busy or away.
To get started, your kid should make a list of what they’re good at and what they might enjoy doing. Then, let neighbors know about their services with flyers or tell them directly.
If you have many kids, they could even involve multiple family members so that each kid has their own specialty or niche as a neighborhood helper.
14. Reseller
Starting a small business as a reseller means buying products at a lower price and selling them for a profit. They don’t need to make their own things; instead, they can find good deals on items, then sell them to others for more than they paid.
They can get items from yard sales, thrift stores, or their own home.
They can sell online on places like Etsy or eBay, or at school events and local fairs.
Recommended reading: 16 Best Selling Apps For Selling Stuff Online And Locally
15. Voice artist
Becoming a voice artist can be an exciting way for kids to explore and share their talent. If they enjoy speaking and have a unique voice, this could be a fun business idea for them.
They can sell services for character voices for cartoons and animations, narration for audiobooks or educational videos, commercial voice-overs for ads and marketing materials, and more.
They will need to start with a good microphone and recording software on a computer. They can practice by reading out loud and recording their voice.
To find work, they can join online platforms like Fiverr, where people look for young voice talent.
Recommended reading: How To Become A Voice Over Actor
16. Actor
If your child is interested in acting, the first step is to take acting classes, which can help them learn the skills they need to act in plays, movies, or TV. These can be found online or at a business near you.
Once they have some skills, they can try out for local theater productions and school plays, and join their school’s drama club. Being part of a production gives them practical experience and shows them what it’s like to work with a director and other actors.
17. Sell candy
Starting a candy business can be both fun and rewarding. With a love for sweets and a little creativity, your child can turn their passion into profit.
Candy is something that I see children selling all the time, and it completely makes sense – everyone loves candy! So, it is an easy item to sell.
They can sell homemade treats like chocolate-covered pretzels or gummy bears. Or, if you prefer, you can buy popular brands in bulk and sell them individually.
Next, consider where they will sell the candy. They may be able to sell at school, neighborhood, or local community events, and you should always ask for permission when selling in public areas or on someone else’s property.
Pricing the candy is important. You’ll want to make sure your kid covers the cost of what was spent and adds a little extra for their profit. Selling candy for $2 or $3 can make it easy for customers to buy without thinking twice.
18. Start a blog
If your kid is interested in working online, then they may want to try starting a blog. It doesn’t take a lot of money to get started, and it can teach a kid a lot about how to run a website.
I have met many teens over the years who have started a blog, and I think it’s a great small business idea!
Whether they want to share their hobbies, interests, or personal experiences, a blog gives them a platform to be creative and communicate.
Other business ideas for kids related to this include starting accounts on social media platforms like Instagram and Twitter, and starting a podcast.
Recommended reading: How To Start A Blog Free Course
19. Deliver newspapers
Newspaper delivery is a classic way for children to earn some money. It’s a job that can fit well into their schedule before or after school. Plus, they can get good exercise at the same time!
It’s usually pretty simple: they take newspapers and deliver them to people’s homes.
When I was younger, I had a friend who had a delivery route. Once, I went along with her and helped her deliver some newspapers. It was hard work but she ran it smoothly!
If your kid is interested in this job, start by checking with local newspapers. Call them and ask if they’re looking for delivery helpers. Some things they might need:
A bicycle or a reliable way to get around the delivery area quickly
A bag or basket to hold the newspapers as they deliver them
An early morning start if the paper is a morning edition
To dress for the weather, since they will be outside
They will learn responsibility by making sure the newspapers are delivered on time.
Sometimes there may be age limits, so if your child is younger, they might need to get a work permit. But often, kids as young as 11 or 12 can start with a bit of paperwork.
20. Sell used toys
Recently, I was on Facebook, and a parent was helping their child host a garage sale. They were letting their child take control of most of the sale, but the parent was posting about it in the group to get more traffic to their yard sale.
They were selling the kid’s used toys to help them declutter and make some extra money. I thought this was a great idea!
Kids can learn the basics of entrepreneurship by organizing and pricing their toys for sale. This activity not only teaches them about value assessment but also introduces the concept of supply and demand as they observe which toys are more popular among buyers.
People pay good money for used toys all the time, so this can be a great side hustle to get into.
21. Face painting
Face painting can be a fun and profitable small business venture for kids who love art and painting. They can start by setting up a face painting booth at local events or birthday parties.
Running a face painting business encourages kids to develop their entrepreneurial skills, from marketing their services to managing customer interactions.
22. Recycling collector
Kids who care about the environment can turn it into a business by collecting recyclables. With a passion for keeping things green, they can offer to gather recyclables from neighbors, schools, or local businesses.
This not only helps the environment but also teaches kids about reducing waste and recycling.
23. Vending machines
I have been seeing more and more parents starting vending machine businesses for their children.
Getting kids into the entrepreneurial world by running vending machines can be an interesting and educational small business idea. Whether they decide to place machines in school common areas or local community spaces, managing a vending business can help teach children valuable lessons in supply and demand, handling inventory, and understanding customer preferences.
Running vending machines also gives kids a chance to learn about financial responsibility as they handle income, expenses, and profit calculations.
Recommended reading: How To Start A Vending Machine Business
Frequently Asked Questions
In this section, you’ll find answers to common questions about starting a business as a kid.
What is a good business to start as a kid?
Starting a business that fits into their hobbies and interests makes a good choice. For instance, if they like technology, they might try starting a blog or YouTube channel. If they love the outdoors, then a lawn mowing or gardening business might be a better fit.
How can a kid make $100 dollars fast?
A kid can make $100 fast by selling their old toys or clothing items that they already have. You, the parent, can help them organize a yard sale or gather their items to sell in a Facebook buy/sell group.
What can kids sell to make money?
Kids can sell a lot of different things to make money, such as jewelry, paintings, greeting cards, homemade cookies, lemonade, used toys, and more.
What kind of businesses can young students start at school?
They can start businesses at school like a pencil and eraser store, a book swap service, or a snack bar (if the school allows it). Just remember to check in with the school’s rules to make sure their business idea is allowed on the school campus.
What steps can a child take to start their own business?
Here are steps a child can take to start their own small business:
Identify interests and skills – This will help them find a business idea that they actually like.
Research business ideas – Research different small business ideas suitable for kids and think about factors like their age, skills, and the resources available.
Create a business plan – Develop a simple business plan outlining the business idea, target audience, products or services offered, and basic strategies for marketing and sales.
Learn basic business – Introduce the child to basic business concepts such as budgeting, pricing, and customer service, and this can be done through discussions, educational resources, and more.
Decide on pricing – Teach your child about pricing by thinking about the cost of materials, time, and possibly profit. This helps them understand the value of their products or services.
Market the business – Your child could create posters, use social media with parental supervision, or spread the word within the local community such as by placing an ad on a local bulletin board.
Provide good customer service – I highly recommend making sure that you teach your child the importance of treating customers with respect and giving great service as this can lead to repeat business and word-of-mouth referrals.
Track finances – Teach the child basic financial management, including tracking income and expenses.
Celebrate achievements – Celebrate small victories and milestones to keep the child motivated and proud of their entrepreneurial journey.
Throughout this process, parental involvement is so important. Parents can guide, supervise, and provide a supportive environment for the child’s business, making sure it is a positive and educational experience (and safe!).
Can a 9 year old make a small business?
At around 9 years old, they can start businesses that use creativity and simple skills. For example, making greeting cards or friendship bracelets.
What business can a 10 year old make?
There are many things that a 10-year-old can do to make extra money. A 10-year-old can start a lemonade stand, sell crafts, do yard work, and more.
How can an 11 year old make cash?
There are many things that an 11-year-old can do to make extra money. An 11-year-old can rake leaves, walk dogs, sell baked goods like cupcakes, and more.
What are some simple business ideas for children under 12?
Younger kids can think about businesses like lemonade stands, which are simple to set up and manage. They also might create and sell craft items or start a pet sitting service for neighbors if they enjoy spending time with animals.
How can a teenager make money online?
A teen can make money online by blogging, offering online tutoring services, selling printables on Etsy, reselling items online, and more. I recommend reading 17 Online Jobs For Teens To Make Money to learn more.
How can children stay safe when starting a business?
When starting a small business as a kid, it’s important to think about safety and the rules they need to follow. For safety, always make sure they have an adult they trust to help watch over their business. If they’re selling something like food or crafts, make sure everything they use is safe and won’t hurt anyone.
For legal aspects, different places have different rules for businesses. They might need to ask for permission from someone (like you, the parent) or maybe need a permit.
They also need to make sure they have supervision, which means having an adult around to help them out and make sure everything’s going right. Monitoring what they are doing online, if they are dealing with customers, can be very smart because you never know who they are selling to or talking with.
Small Business Ideas for Kids – Summary
I hope you enjoyed this blog post about small business ideas for kids.
From traditional ways to make extra money like running a lemonade stand or mowing lawns to more modern business ideas like making and selling crafts or starting a YouTube channel, the possibilities for kid-run businesses are plentiful.
Starting a business as a kid can teach children valuable problem-solving and life skills. With the proper guidance and help, there are many different good business ideas that a kid can start.
I have been earning my own money from a young age, and it has taught me so much. I highly recommend helping your kids do the same!
The median pay for surgical techs is $56,350 annually, according to the Bureau of Labor Statistics.
Working as a surgical tech can be a great way to build a fulfilling career in the medical field. Read on to learn more about a surgical tech’s role and salary, as well as the pros and cons of this job.
What Are Surgical Techs
The role of a surgical tech can vary greatly but generally involves assisting surgeons with tasks, such as closing surgical sites and making incisions. Other common duties include:
• Readying supplies for surgery
• Sterilizing equipment
• Getting the operating room surgery-ready
• Physically preparing patients for surgery
• Assisting surgeons during surgery
• Maintaining sterile environment
• Keeping track of supplies during and after surgery.
While some of these tasks are solitary, many involve interacting with patients and other members of the medical team. Given this degree of interaction, this can be a very rewarding career choice, although it may not be a good job for antisocial people.
Surgical techs often complete training at a community college or vocational school, typically requiring nine to 24 months of study. For this reason, being a surgical tech can be a good career without a college degree. 💡 Quick Tip: We love a good spreadsheet, but not everyone feels the same. An online budget planner can give you the same insight into your budgeting and spending at a glance, without the extra effort.
Check your score with SoFi
Track your credit score for free. Sign up and get $10.*
How Much Do Starting Surgical Techs Make a Year?
Here’s information about what a surgical tech can make as an entry-level salary and later on in their career. The lowest 10% of surgical tech earners make less than $35,130 as of 2022.
However, there is a lot of room to move up in this field. The top 10% of earners make on average $95,060, meaning they are very close to making a $100,000 salary per year.
If someone is looking to optimize their earning potential, they should look for a surgical tech role in a high-paying setting. The type of medical office a surgical tech works in can affect how much they earn:
• Offices of physicians: $62,400
• Outpatient care centers: $59,740
• General medical and surgical hospitals; state, local, and private: $58,460
• Offices of dentists: $48,810.
Recommended: The 50 Highest Paying Jobs in the US
What is the Average Salary for a Surgical Tech?
Those considering training to be a surgical tech may wonder about pay grades. The truth is, that answer depends a lot on the state they end up working in. The median hourly pay rate for this role is $27.09, but as the table illustrates below, can vary greatly by state.
The figures here for average salary and wages are arranged from highest to lowest paying.
What Is the Average Surgical Tech Salary by State for 2023
State
Annual Salary
Monthly Pay
Weekly Pay
Hourly Wage
Oregon
$112,962
$9,413
$2,172
$54.31
Alaska
$112,406
$9,367
$2,161
$54.04
North Dakota
$112,389
$9,365
$2,161
$54.03
Massachusetts
$111,047
$9,253
$2,135
$53.39
Hawaii
$110,015
$9,167
$2,115
$52.89
Washington
$107,487
$8,957
$2,067
$51.68
Nevada
$106,280
$8,856
$2,043
$51.10
South Dakota
$106,220
$8,851
$2,042
$51.07
Colorado
$104,887
$8,740
$2,017
$50.43
Rhode Island
$104,629
$8,719
$2,012
$50.30
New York
$99,697
$8,308
$1,917
$47.93
Delaware
$98,598
$8,216
$1,896
$47.40
Vermont
$97,356
$8,113
$1,872
$46.81
Virginia
$97,172
$8,097
$1,868
$46.72
Illinois
$97,143
$8,095
$1,868
$46.70
Maryland
$95,489
$7,957
$1,836
$45.91
Nebraska
$93,450
$7,787
$1,797
$44.93
Missouri
$92,871
$7,739
$1,785
$44.65
California
$92,615
$7,717
$1,781
$44.53
South Carolina
$92,071
$7,672
$1,770
$44.26
Pennsylvania
$91,330
$7,610
$1,756
$43.91
New Jersey
$91,143
$7,595
$1,752
$43.82
Oklahoma
$90,500
$7,541
$1,740
$43.51
Maine
$90,453
$7,537
$1,739
$43.49
Wisconsin
$90,262
$7,521
$1,735
$43.40
North Carolina
$90,170
$7,514
$1,734
$43.35
New Hampshire
$88,816
$7,401
$1,708
$42.70
Idaho
$88,596
$7,383
$1,703
$42.59
Texas
$88,000
$7,333
$1,692
$42.31
Kentucky
$87,715
$7,309
$1,686
$42.17
Wyoming
$87,407
$7,283
$1,680
$42.02
Minnesota
$87,181
$7,265
$1,676
$41.91
Michigan
$86,830
$7,235
$1,669
$41.75
New Mexico
$86,691
$7,224
$1,667
$41.68
Indiana
$86,252
$7,187
$1,658
$41.47
Ohio
$84,743
$7,061
$1,629
$40.74
Arizona
$84,468
$7,039
$1,624
$40.61
Connecticut
$84,039
$7,003
$1,616
$40.40
Mississippi
$83,449
$6,954
$1,604
$40.12
Iowa
$83,345
$6,945
$1,602
$40.07
Montana
$83,195
$6,932
$1,599
$40.00
Arkansas
$82,892
$6,907
$1,594
$39.85
Alabama
$82,157
$6,846
$1,579
$39.50
Utah
$80,963
$6,746
$1,556
$38.92
Tennessee
$80,904
$6,742
$1,555
$38.90
Kansas
$78,574
$6,547
$1,511
$37.78
Georgia
$76,536
$6,378
$1,471
$36.80
Louisiana
$76,117
$6,343
$1,463
$36.59
West Virginia
$70,535
$5,877
$1,356
$33.91
Florida
$67,735
$5,644
$1,302
$32.57
Source: Ziprecruiter
💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.
Surgical Tech Job Considerations for Pay & Benefits
It’s very common for surgical techs to hold full-time positions and as such, they tend to qualify for traditional employee benefits like paid time off, retirement accounts, and healthcare. This can be a very demanding role that may require being on call during weekends, holidays, and nights. Shifts can also be very lengthy and last longer than a typical eight-hour workday.
Pros and Cons of Surgical Tech Salary
Still not sure if working as a surgical tech is the right fit? Here are some pros and cons associated with this role’s salary and job requirements.
Pros
Cons
• Median annual salary is high ($56,350)
• May not need a college degree
• Employment opportunities expected to grow by 5% from 2022 to 2032
• Around 8,600 openings for this role per year
• Long shifts that can surpass eight hours
• Physically demanding work
• Can be on call during nights, weekends, and holidays
Recommended: High-paying Trade and Vocational Jobs in 2024
The Takeaway
With a solid median annual salary of $56,350 and the top 10% of income earners in the surgical tech field making more than $95,060, there is a lot of earning potential in this role. The job can be demanding and being on call is often part of the job description, but the high pay can be worth the sacrifices.
FAQ
Can you make 100k a year as a surgical tech?
It may be possible to make $100,000 a year as a surgical tech for those with a lot of experience or who work in high-cost-of-living areas where standard pay is higher. The top 10% of surgical tech earners make more than $95,060 annually, so the potential to earn six figures is within reach.
Do people like being a surgical tech?
Many people enjoy working as a surgical tech, especially if they have an interest in the medical field and helping people. However, those who are introverts or who consider themselves antisocial may not enjoy this job.
Is it hard to get hired as a surgical tech?
While you have to meet very specific qualifications to work as a surgical tech, if you do, you can likely find job openings in this field. Between 2022 and 2023, surgical tech employment is projected to grow by 5%. This growth rate is faster than average compared to other occupations.
Photo credit: iStock/SDI Productions
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.
*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.