Using In-School Deferment as a Student

Undergraduate and graduate students in school at least half-time can put off making federal student loan payments, and possibly private student loan payments, with in-school deferment. The catch? Interest usually accrues.

Loans are a fact of life for many students. In fact, a majority of them — about 70% — graduate with student loan debt.

While some students choose to start paying off their loans while they’re still in college, many take advantage of in-school deferment.

What Is In-School Deferment?

In-school deferment allows an undergraduate or graduate student, or parent borrower, to postpone making payments on:

•   Direct Loans, which include PLUS loans for graduate and professional students, or parents of dependent undergrads; subsidized and unsubsidized loans; and consolidation loans.

•   Perkins Loans

•   Federal Family Education Loan (FFEL) Program loans.

Parents with PLUS loans may qualify for deferment if their student is enrolled at least half-time at an eligible college or career school.

What about private student loans? Many lenders allow students to defer payments while they’re in school and for six months after graduation. Sallie Mae lets you defer payments for 48 months as long as you are enrolled at least half-time.

But each private lender has its own rules.

Recommended: How Does Student Loan Deferment in Grad School Work?

How In-School Deferment Works

Federal student loan borrowers in school at least half-time are to be automatically placed into in-school deferment. You should receive a notice from your loan servicer.

If your loans don’t go into automatic in-school deferment or you don’t receive a notice, get in touch with the financial aid office at your school. You may need to fill out an In-School Deferment Request .

If you have private student loans, it’s a good idea to reach out to your loan servicer to request in-school deferment. If you’re seeking a new private student loan, you can review the lender’s deferment rules.

Most federal student loans also have a six-month grace period after a student graduates, drops below half-time enrollment, or leaves school before payments must begin. This applies to graduate students with PLUS loans as well.

Parent borrowers who took out a PLUS loan can request a six-month deferment after their student graduates, leaves school, or drops below half-time enrollment.

Requirements for In-School Deferment

Students with federal student loans must be enrolled at least half-time in an eligible school, defined by the Federal Student Aid office as one that has been approved by the Department of Education to participate in federal student aid programs, even if the school does not participate in those programs.

That includes most accredited American colleges and universities and some institutions outside the United States.

In-school deferment is primarily for students with existing loans or those who are returning to school after time away.

The definition of “half-time” can be tricky. Make sure you understand the definition your school uses, as not all schools define half-time status the same way. It’s usually based on a certain number of hours and/or credits.

Do I Need to Pay Interest During In-School Deferment?

For federal student loans and many private student loans, no.

If you have a federal Direct Unsubsidized Loan, interest will accrue during the deferment and be added to the principal loan balance.

If you have a Direct Subsidized Loan or a Perkins Loan, the government pays the interest while you’re in school and during grace periods. That’s also true of the subsidized portion of a Direct Consolidation Loan.

Interest will almost always accrue on deferred private student loans.

Although postponement of payments takes the pressure off, the interest that you’re responsible for that accrues on any loan will be capitalized, or added to your balance, after deferments and grace periods. You’ll then be charged interest on the increased principal balance. Capitalization of the unpaid interest may also increase your monthly payment, depending on your repayment plan.

If you’re able to pay the interest before it capitalizes, that can help keep your total loan cost down.

Alternatives to In-School Deferment

There are different types of deferment aside from in-school deferment.

•   Economic Hardship Deferment. You may receive an economic hardship deferment for up to three years if you receive a means-tested benefit, such as welfare, you are serving in the Peace Corps, or you work full time but your earnings are below 150% of the poverty guideline for your state and family size.

•   Graduate Fellowship Deferment. If you are in an approved graduate fellowship program, you could be eligible for this deferment.

•   Military Service and Post-Active Duty Student Deferment. You could qualify for this deferment if you are on active duty military service in connection with a military operation, war, or a national emergency, or you have completed active duty service and any applicable grace period. The deferment will end once you are enrolled in school at least half-time, or 13 months after completion of active duty service and any grace period, whichever comes first.

•   Rehabilitation Training Deferment. This deferment is for students who are in an approved program that offers drug or alcohol, vocational, or mental health rehabilitation.

•   Unemployment Deferment. You can receive this deferment for up to three years if you receive unemployment benefits or you’re unable to find full-time employment.

For most deferments, you’ll need to provide your student loan servicer with documentation to show that you’re eligible.

Then there’s federal student loan forbearance, which temporarily suspends or reduces your principal monthly payments, but interest always continues to accrue.

Some private student loan lenders offer forbearance as well.

If your federal student loan type does not charge interest during deferment, that’s probably the way to go. If you’ve reached the maximum time for a deferment or your situation doesn’t fit the eligibility criteria, applying for forbearance is an option.

If your ability to afford your federal student loan payments is unlikely to change any time soon, you may want to consider an income-based repayment plan or student loan refinancing.

The goal of refinancing with a private lender is to change your rate or term. If you qualify, all loans can be refinanced into one new private loan. Playing with the numbers can be helpful.

Just know that if you refinance federal student loans, they will no longer be eligible for federal deferment or forbearance, loan forgiveness programs, or income-driven repayment.

Recommended: Student Loan Refinancing Calculator

The Takeaway

What is in-school deferment? It allows undergraduates and graduate students to buy time before student loan payments begin, but interest usually accrues and is added to the balance.

If trying to lower your student loan rates is something that’s of interest, look into refinancing with SoFi.

Students are eligible to refinance a parent’s PLUS loan along with their own student loans.

There are absolutely no fees.

It’s easy to check your rate.


We’ve Got You Covered


SoFi Student Loan Refinance
IF YOU ARE LOOKING TO REFINANCE FEDERAL STUDENT LOANS PLEASE BE AWARE OF RECENT LEGISLATIVE CHANGES THAT HAVE SUSPENDED ALL FEDERAL STUDENT LOAN PAYMENTS AND WAIVED INTEREST CHARGES ON FEDERALLY HELD LOANS UNTIL THE END OF JANUARY 2022 DUE TO COVID-19. PLEASE CAREFULLY CONSIDER THESE CHANGES BEFORE REFINANCING FEDERALLY HELD LOANS WITH SOFI, SINCE IN DOING SO YOU WILL NO LONGER QUALIFY FOR THE FEDERAL LOAN PAYMENT SUSPENSION, INTEREST WAIVER, OR ANY OTHER CURRENT OR FUTURE BENEFITS APPLICABLE TO FEDERAL LOANS. CLICK HERE FOR MORE INFORMATION.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.

External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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.
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Source: sofi.com

How to Become a Mortician and Other Jobs in the Funeral Industry

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There are a lot of reasons for thinking about becoming a funeral director, the funeral industry’s preferred term for mortician.

For one, the unemployment rate is low. For another, there’s always a need.

And, it is one of the careers that does not require a bachelor’s degree that still pays well. Funeral directors make an average of $55,000 a year. That’s the average and some directors with more experience bring in more than $70,000. As far as school, most states require an associate’s degree, an apprenticeship/internship, and passing a licensing exam.

If working with bereaved families and preparing bodies for burial or cremation seem like something you would be good at, consider this well-paying career path. The funeral industry is estimated to be worth $16 billion in the United States in 2021.

Read on to find out how to become a mortician.

The Difference Between a Mortician and Funeral Director

First, let’s clarify some terms. What are the differences between mortician, funeral director, embalmer and undertaker? They have similar roles but slightly different duties.

In 1895, an American publication called The Embalmer’s Monthly put out a call for a new term for undertakers. The winner was mortician, a made-up word and thank goodness for Morticia Addams, right? Now, the industry uses funeral director for the person arranging the funeral service.

Most funeral directors are licensed morticians and embalmers. They have studied mortuary science and prepare bodies, but they also arrange the other aspects of funeral services. Funeral directors help the bereaved plan the memorial service (and might conduct it if there is no clergy) and arrange for cremation and burial. Funeral directors deal directly with the clients.

An embalmer can work for a funeral home, but also elsewhere — medical schools, hospitals, and morgues. They mainly prepare bodies, and don’t work with clients. The term undertaker is the British term for funeral director and is seldom used in the U.S. except when referring to the popular professional wrestler, The Undertaker.

What Does a Funeral Director Do?

Funeral directors deal with both the living and the dead. Funeral directors arrange for moving the body to the funeral home. They file the paperwork for death certificates, obituaries, and other legal matters.

Preparing a body for the funeral service may or may not include embalming (cremation doesn’t require embalming), but it needs to be dressed, cosseted (put in the best and most natural appearance), and casketed (placed in the coffin).

Funeral services are difficult times for people. The funeral director needs to have compassion for people navigating their pain and sorrow. While an interest in science is necessary, an important quality for someone who wants to become a mortician or funeral director is empathy.

The funeral director guides the grieving through the decisions that have to be made for the funeral service. This not only includes choosing the coffin, but placing the obituary, arranging the wake and service and creating a program for it, shipping remains, and more.

The Changing Funeral Business

Most funeral homes are independently owned. While often smaller businesses don’t have the deeper pockets of corporations, their size allows them to be more nimble in evolving their business. Funeral services have transformed from somber and sorrowful times to celebrations of life with some funeral homes even providing spaces for outdoor gathering complete with grills.

In recent years, more women are graduating in mortuary science. Some people might become funeral service workers as a second career instead of inheriting the business, which has been a traditional entry into the industry. The National Funeral Directors Association encourages its members to seek out, hire, and train more women and non-binary people.

You can find mortuary science stars on social media, including the popular YouTube channel, Ask a Mortician. There are funeral directors’ TikTok videos, and mortician AMAs (ask me anything) on Reddit.

Get Started in the Funeral Business

Most states require a two-year associate’s degree in mortuary science or related areas, an apprenticeship or internship, and passing the national or state’s license exam. Ohio and Minnesota are the only two states that require a bachelor’s degree to be a funeral home director. Colorado does not have any education requirements, but licenses funeral homes instead. Kentucky doesn’t license funeral directors but does license embalmers.

The National Funeral Directors Association is your go-to source for state-by-state details of working in the funeral industry.

If you were also thinking about joining the military, the Navy is the only service branch with its own morticians. For that you need a high school diploma or GED, and then you would get training through the Navy as a hospital corpsman-mortician.

Licensure

You usually have to be at least 21 years old to take the exams, though you can start an internship or apprenticeship before that age. There may also be a criminal background check. Having a criminal record doesn’t mean you can’t become a mortician. You also have to submit proof of U.S. citizenship or permanent residency.

You can also study for and take the national funeral service education board exam. The pathways to these two types of exams can be different. It is important to note that not all mortuary science programs are accredited by the American Board of Funeral Service Education (ABFSE).

You can only take the National Board Exam if you have a degree from an accredited program. Some states allow you to take the state exam even if your program is not accredited. The exams are the same. It is just more difficult to practice in a different state if you haven’t attended an accredited program.

State Licenses

Most states have information about how to become a mortician through their occupational license, public health, or funeral board sections on their website. It is important that you clarify whether the mortuary science programs are accredited for just the state license exam, or for both state and national exams. Some schools also offer Funeral Arts Certificates, which can be used for other jobs in the funeral service industry.

National License

The American Board of Funeral Service Education is the national academic accreditation agency for college and university programs in Funeral Service and Mortuary Science Education. Most states have easier reciprocity requirements to transfer your practice if you have taken the national board exam. If you have taken the state exam only, you may have to meet all of the requirements again if you move to another state.

Classwork for the License

Coursework can be broken down into roughly three categories: art, business, and science. Art? That is for the restorative arts, or visually preparing the body for a funeral service, which includes hair and makeup. There are courses which cover death traditions from many cultures and the history of funerals.

Science classes may cover embalming theory and labs, anatomy, physiology, public health, and pathology. There are chemistry and biology courses, and also usually psychology courses on grief and bereavement training.

Business classes will cover funeral home administration, accounting, requirements for a funeral service license, and some business law. There are usually classes covering legal and ethical issues that a certified funeral service practitioner will face.

Cost of Getting a License

The cost of getting a two-year mortuary science degree varies by state but your best bet will be an in-state community college. Then there will be costs associated with taking exams and getting a license.

School

There is a huge difference in how much you can pay for a mortuary science associate’s degree. In-state public schools may cost between $5,000-$8,500. Private, out of state tuition might be almost $20,000. There are the normal student loans and grants available, but there are also specific grants for students studying mortuary science (even as a second career). It seems like a great investment, since unemployment for funeral directors is extremely low.

Exam

The National Board Exam has two sections, arts and sciences. Each one costs $285. There are practice exams that you can take, which are free. In Florida, the state funeral service examining boards charge $132 for exams. Maine charges $75 plus $21 for a criminal background check. Texas charges $89. Some states have two separate exams — one for funeral services and the other for embalming.

Licenses

This is another area with variation. Using the same three states as above, Florida’s license for a funeral director costs $430 with all the fees. Maine’s is $230, and Texas costs $175 plus $93 for the application. Apparently not everything is bigger in Texas! Licenses need to be renewed periodically, which also requires continuing education credits.

Funeral Director as Entrepreneur

The funeral industry has been changing rapidly over the last few years. Cremations have increased and burials decreased. Funeral homes make less money on cremations, and have responded to this shift by finding new sources of income and new ways to help people.

Green Funerals

There are more environmentally conscious choices that funeral homes can offer, including rental coffins for services (and a plain one after), biodegradable coffins, and natural burials. Green funeral services include sourcing flowers locally, using funeral invitations and programs made of recycled paper embedded with seeds, and biodegradable water urns, which sink and dissipate for at sea services..

Pet Funerals

An estimated 67% of households in the U.S. own pets, and many of them are using funeral home services for their animals. That includes memorials, services, and burials. Despite pet cremation being infinitely (well, 90 vs.10%) more popular than burial, there are over 200 pet cemeteries in the U.S., with Florida having the most.

Other Jobs in the Funeral Industry

Besides being an intern or apprentice, you can work in the funeral industry in many other ways. Florida lists 16 separate individual and business licenses for funeral home-related activities.

Here are the common jobs in the funeral or mortician industry though keep in mind in a smaller business, the funeral director may do some of them:

  • Administrative assistants handle office work.
  • Burial rights brokers arrange for third parties to sell or transfer burial rights.
  • Cemeterians maintain cemetery grounds (think groundskeeper).
  • Ceremonialists conduct the funeral service.
  • Crematory operators/technicians assist in cremation remains.
  • Direct disposers handle cremation when there is no service or embalming.
  • Embalmers prepare the body after death.
  • Funeral arrangers work with clients to set up the funeral.
  • Funeral home manager is the best paying job in the field, the median salary for this position is more than $74,000. The manager oversees all funeral home operations.
  • Funeral service managers are similar to funeral arrangers.
  • Funeral supply sales personnel work for the funeral home-sourcing supplies.
  • Monument agents sell tombstones and other markers for the cemetery.
  • Mortuary transport drivers prepare and transport human remains.
  • Pathology technicians work in hospitals, morgues, or universities with cadavers.
  • Pre-need sales agents help clients plan their services and burials before they die.

Frequently Asked Questions (FAQs) About Funeral Business Jobs

We’ve rounded up the answers to the most common questions about working in the funeral industry.

What Jobs Can You Do at a Funeral Home?

negotiate supplies, transport bodies, conduct funeral services, and work with clients to place obituaries and arrange the service. They also have sales people working on pre-need arrangements. Some funeral homes feature pet burials and have special jobs related to that.

How Much Do You Make Working at a Funeral Home?

Funeral directors average $55,000 annually. Managing a funeral home pays a median salary of $74,000. Mortuary transport drivers average over $35,000. It is a field with very low unemployment.

How Do I Get a Job in the Funeral Industry?

Most states require two years of school, a (paid) internship, and passing the appropriate license exams to become a funeral director. Other jobs may require less.The mortuary transport driver has to be able to lift 100 pounds or more and have a clean driving record.

What is a Funeral Home Job Called?

There are many. There are funeral directors, embalmers, mortuary transport drivers, and funeral service arrangers. There are also typical office jobs, such as administrative assistant and bookkeepers. There are also related jobs at crematoriums, hospitals, and mortuaries.

The Penny Hoarder contributor JoEllen Schilke writes on lifestyle and culture topics. She is the former owner of a coffee shop in St.Petersburg, Florida, and has hosted an arts show on WMNF community radio for nearly 30 years.

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Source: thepennyhoarder.com

James Glassman’s 10 Stock Market Picks for 2022

Last December, after beating the S&P 500 index five years in a row, I wrote, “This kind of streak isn’t supposed to happen, and readers should be warned that there’s no guarantee it will continue.”

Well, it’s over. My annual selections for 2021 performed just fine, with an average return of 17.4%, but the S&P did much better, gaining 35.8%. (Returns and data throughout the story are through Nov. 5.)

Since 1993, I have offered a list of 10 stocks for the year ahead. Nine are culled from the choices of experts I trust, and I include one of my own. For 2021, I’m happy to say, my pick was the biggest winner: ONEOK (OKE), the 115-year-old natural gas pipeline company, which benefited from the rise in petroleum prices and was up 139.9%.

I’ll get to my choice for 2022 at the end. Let’s start with one from the Value Line Investment Survey, a font of succinct research that has a strong forecasting record as well. My strategy is to pick from stocks that Value Line rates tops (“1”) for both timeliness and safety. That list right now is short: nine companies, including obvious ones like Apple (AAPL) and Visa (V).

The outlier is T. Rowe Price Group (TROW), the Baltimore-based asset manager, whose earnings have risen each year since 2009 despite the growing popularity of low-cost index funds. Value Line notes that “shares have staged a dramatic advance over the past year. However, our projections suggest … worthwhile appreciation potential for the next 3 to 5 years.”

Parnassus Endeavor (PARWX), a socially responsible fund – one that invests with an eye toward environmental, social and governance (ESG) measures, has returned a sparkling annual average of 18.3% over the past 10 years. In 2021, Jerome Dodson stepped back from managing Endeavor and other Parnassus funds, but he’s still a guiding force at the firm he founded 35 years ago. My picks from the portfolio for 2019 and 2020 were microchip companies that scored average gains of nearly 100%.

For 2022, I like PepsiCo (PEP), which Billy Hwan, the fund’s new solo manager, acquired for the first time in July. In addition to its soft drinks, the company has such respected brands as Lay’s, Quaker and Gatorade. Revenues have risen consistently, and PepsiCo may be able to benefit from general inflation with aggressive price increases.

Another big winner in 2021 came from Dan Abramowitz, of Hillson Financial Management in Rockville, Maryland, who is my go-to expert in smaller companies. His choice was IEC Electronics, which was purchased by Creation Technologies in October for 53% more than the stock’s price when I put it on the list, noting, “IEC is also a potential takeover target.” 

For 2022, Dan recommends DXC Technology (DXC), a midsize in­formation technology company based in the suburbs of Washington, D.C. It is in the midst of a turnaround, Dan writes, “yet we are still in the early innings here.” Profits are improving, but the stock “is valued at under 10 times current fiscal year earnings.”

A few months ago, I recommended AB Small Cap Growth (QUASX), a fund that has notched a sensational 29.8% annualized return over the past five years. The fund has been adding to holdings of Louisiana-based LHC Group (LHCG), a provider of post-acute care, including home health and hospice services, in more than 700 locations. The stock appears well priced after setbacks from hurricanes and because healthcare workers were forced to quarantine due to COVID-19. As the population ages, healthcare is a growth industry.

Fidelity Advisor Growth Opportunities (FAGAX) is red-hot, ranking in the top 3% of funds in its category for five-year returns. The problem is that it carries a whopping 1.82% expense ratio and is sold mostly through advisers. Still, you can scan its port­folio for ideas. Most of the fund’s holdings are tech stocks, but the only new purchase for 2021 among its top 25 holdings was Freeport-McMoRan (FCX), the minerals (copper, gold, silver) and oil and gas producer. The stock has doubled over the past year, but its price-earnings ratio, based on analysts’ consensus projections for 2022, is just 11.

A disappointment in 2021 was Upland Software (UPLD), down 47%. It was the choice of Terry Tillman, a software analyst with Truist Securities whose previous selections on my annual list had beaten the S&P 500 index for an incredible nine years in a row. Tillman recently initiated coverage on Engage­Smart (ESMT) with a Buy rating. The firm, which helps healthcare professionals manage their practices, went public only in September, but it already has a market value of $5 billion, and Tillman sees the price going much higher.

It has not been a good year for China’s big companies, which China’s government apparently thinks have become big enough to threaten the Communist Party. As a result, my 2021 list’s worst performer was Alibaba Group Holding (BABA), the e-commerce giant, with shares falling by nearly half.

Still, if you have a stomach for risk, Chinese stocks present remarkable value these days. Matthews China (MCHFX), my favorite Asian stock fund, has held on to Tencent Holdings (TCEHY), which is down by about 40% from its February peak. Tencent, with a market cap of $576 billion, operates worldwide and offers social media, music, mobile games, payment services and more.

Last year, I turned for the first time to Schwab Global Real Estate (SWASX) and was pleased with the 21% return from its choice, Singapore-based UOL Group (UOLGY), with an office, residential and hotel portfolio. The fund’s third-largest holding is Public Storage (PSTG), owner of 2,500 facilities in 38 states. Is there a better business? Every year, I get an e-mail notice telling me my storage-unit rental has risen in price, and what am I going to do about it? Moving my stuff out is a horrifying thought. I have always wanted to own this stock. It is expensive, but waiting may make it more so.

Over the years, the assets of Berkshire Hathaway (BRK.B), Warren Buffett’s holding company, have become more and more diversified. At last report, the company owned 40 publicly traded stocks. Berkshire Hathaway’s largest holding by far is Apple, at about $135 billion. Guess what’s second? Bank of America (BAC), at $49 billion. I am a longtime fan and shareholder of BofA as well, and it looks especially good at a time when interest rates are rising.

My contrarian bias paid off last year when I shook off my disastrous 2019 choice of Diamond Offshore Drilling (it went bankrupt) and scored a double with ONEOK. Searching for value again, I have arrived at Starbucks (SBUX), which took a big (and to my mind, unwarranted) hit over the summer when the company warned of a slower recovery in China. So I’m taking advantage of skittish investors and recommending Starbucks, one of the world’s best-run companies, growing steadily with 33,000 outlets worldwide.

I’ll end with my usual warnings. These 10 stocks vary by size and industry, but they are not meant to compose a diversified portfolio. I expect they will beat the market in the coming 12 months, but I do not advise holding stocks for less than five years. Buy and hold works! Finally, these are my recommendations, but consider them suggestions for your own study and decision-making. No guarantees.

James Glassman stock picks for 2022James Glassman stock picks for 2022

Source: kiplinger.com

Paying your credit card early: Does it help your score?

Couple looking at finances together.

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

Paying your credit card early can raise your credit score. After your statement closes, your credit card issuer reports your balance to the credit bureaus. Paying your bill ahead of time lowers your overall balance, so the bureaus will see you using less credit in total. Since utilization makes up around one-third of your credit score, paying your card early can have a positive overall effect. 

However, paying your credit card bill early may work differently if you carry a balance on your card each month. Instead of paying your next statement early, you’re actually making an extra payment on your previous balance. Therefore, you’ll likely still need to pay the minimum amount on your next statement, or your payment could be considered late.

In most cases, paying your credit card bill early is a good idea—and it can have a positive impact on your score. 

Read on to learn more about how paying your card early affects your score. 

How paying your credit card bill early can help your credit score

Paying your credit card bill early may increase your credit score, since the overall debt that gets reported to the credit bureaus is likely to be lower. 

To understand how paying a bill early could raise your score, you need to understand two things: the factors that make up your score and how your credit issuer reports to the credit bureaus. 

How paying early could raise your score

Your score is calculated based on several factors, and two of them are relevant to paying your bill early: credit utilization and payment history. 

  • Payment history makes up around 35 percent of your score, and simply put, paying your bill early means that you aren’t paying it late. Late payments can have a major negative effect on your score, so paying your bill on time or early will help boost your score.
  • Credit utilization accounts for around 30 percent of your score, and it represents how much of your available credit you’re actually using. As a general rule, you should aim to use one-third of your credit or less. For example, if you have a total credit limit of $9,000, you’d want to keep your balance below $3,000.

The credit bureaus—TransUnion®, Experian® and Equifax®—are responsible for keeping track of your credit history. They receive all of their information from lenders, like the financial institution that issued your credit card. 

After your monthly statement is issued with your balance, you have a grace period before the payment is due—typically around 21 days. During that time, your credit card provider will report your balance to the credit bureaus. If you pay your balance before your statement closes, the total listed balance will be lower, so the credit bureaus will see your overall utilization as lower, which could increase your score.

That said, your particular situation may change how early payments work, so you’ll want to make sure you understand your billing cycle and balance before making early payments.

Is it ever bad to pay your credit card early?

While it is never bad to pay your credit card bill early, the benefits you receive from doing so may vary depending on your circumstances.

For example, if you carry a balance on your credit card every month, you may need to adjust how you handle early payments. While it is a myth that carrying a balance on your card improves your score, there are reasons you may have lingering credit card debt nonetheless.

Early payments work differently if your credit card has a balance.

If you do carry a balance on your card each month, keep the following in mind:

  • Your early payment may not count as your minimum payment. If you have a balance from a previous month, you can’t make an “early” payment toward your next statement. Instead, you’re making an extra payment, so you’ll still need to make a minimum payment after your new statement is issued.
  • You may not save money on interest and fees by making an early payment. Depending on how your credit card issuer calculates finance charges on your previous balance, your early payment may not reduce your interest or fees by much or at all. For example, if you’re charged based on average daily balance, simply paying at the end of the month may not help much.

All that said, it’s still usually a good idea to pay down your credit card debt if you have the funds available to do so. You may not see an immediate score increase if you have a substantial balance, but over time, you’ll build the financial habits that can help you eliminate debt and begin making on-time—or early—payments consistently. 

When is the best time to pay your credit card? 

The best time to pay your credit card bill is before the payment is late. While you may benefit from paying your bill early, you’ll definitely see negative effects if you pay your bill late. 

Paying early keeps your payment history intact and may help lower your overall utilization, while paying your bill more than 30 days late will likely lead to a negative item on your credit report. And if you neglect to pay long enough, your account could get sent to collections. 

If you do start paying your credit card bill early, you’ll want to begin checking your credit report regularly to see how your balance is being reported to the credit bureaus. Over time, you should see your utilization drop and your credit score increase.

While sifting through your credit report, it’s important to keep an eye out for inaccurate information like fraudulent accounts, incorrect negative items or factual mistakes. Any of these inaccurate items could be lowering your credit score. Fortunately, it’s possible to dispute these items on your report and repair your credit score. 


Reviewed by Horacio Celaya, Associate Attorney at Lexington Law Firm. Written by Lexington Law.

Horacio Celaya was born in Tucson, Arizona but eventually moved with his family to Mexicali, Baja California, Mexico. Mr. Celaya went on to graduate with Honors from the Autonomous University of Baja California Law School. Mr. Celaya is a graduate of the University of Arizona where he graduated from James E. Rogers College of Law. During law school, Mr. Celaya received his certificate in International Trade Law, completing his thesis on United States foreign direct investment in Latin America. Since graduating from law school, Mr. Celaya has worked in an immigration firm where he helped foreign investors organize their assets in order to apply for investment-based visas. He also has extensive experience in debt settlement negotiations on behalf of clients looking to achieve debt relief. Mr. Celaya is licensed to practice law in New Mexico. He is located in the Phoenix office. 

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Source: lexingtonlaw.com

Cost of Goods Sold Formula: A Step-by-Step Guide

Cost Of Goods Sold Definition
Cost of goods sold (COGS) is the cost of producing the goods sold by a company. It accounts for the cost of materials and labor directly related to that good and for a designated accounting period.

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As a company selling products, you need to know the costs of creating those products. That’s where the cost of goods sold (COGS) formula comes in. Beyond calculating the costs to produce a good, the COGS formula can also unveil profits for an accounting period, if price changes are necessary, or whether you need to cut down on production costs.

Whether you fancy yourself as a business owner or a consumer or both, understanding how to calculate cost of goods sold can help you feel more informed about the products you’re purchasing — or producing.

What Is Cost of Goods Sold?

Cost of goods sold is the cost of producing the goods sold by a company. It includes the cost of materials and labor directly related to that good. However, it excludes indirect expenses such as distribution and sales force costs.

What Is the Cost of Goods Sold Formula?

Four illustrations help explain the cost of goods sold formula, which accounts for beginning inventory, purchases, and ending inventory.

When selling a product, you need to understand the production costs associated with it in a given period, ​​which could be a month, quarter, or year. You can do that by using the cost of goods sold formula. It’s a straightforward calculation that accounts for the beginning and ending inventory, and purchases during the accounting period. Here is a simple breakdown of the cost of goods sold formula:

COGS = beginning inventory + purchases during the period – ending inventory

How Do You Calculate Cost of Goods Sold?

To calculate cost of goods sold, you have to determine your beginning inventory — meaning your merchandise, including raw materials and supplies, for instance — at the beginning of your accounting period. Then add in the new inventory purchased during that period and subtract the ending inventory — meaning the inventory leftover at the end for your accounting period. The extended COGS formula also accounts for returns, allowances, discounts, and freight charges, but we’re sticking to the basics in this explanation.

Taking it one step at a time can help you understand the COGS formula and find the true cost behind the goods being sold. Here is how you do it:

Step 1: Identify Direct and Indirect Costs

Whether you manufacture or resell products, the COGS formula allows you to deduct all of the costs associated with them. The first step is to differentiate the direct costs, which are included in the COGS calculation, from indirect costs, which are not.

Direct Costs

Direct costs are the costs tied to the production or purchase of a product. These costs can fluctuate depending on the production level. Here are some direct costs examples:

  • Direct labor
  • Direct materials
  • Manufacturing supplies
  • Fuel consumption
  • Power consumption
  • Production staff wages

Indirect Costs

Indirect costs go beyond costs tied to the production of a product. They include the costs involved in maintaining and running the company. There can be fixed indirect costs, such as rent, and fluctuating costs, such as electricity. Indirect costs are not included in the COGS calculation. Here are some examples:

  • Utilities
  • Marketing campaigns
  • Office supplies
  • Accounting and payroll services
  • Insurance costs
  • Employee benefits and perks

Step 2: Determine Beginning Inventory

Now it’s time to determine your beginning inventory. The beginning inventory will be the amount of inventory leftover from the previous time period, which could be a month, quarter, or year. Beginning inventory is your merchandise, including raw materials, supplies, and finished and unfinished products that were not sold in the previous period.

Keep in mind that your beginning inventory cost for that time period should be exactly the same as the ending inventory from the previous period.

Step 3: Tally Up Items Added to Your Inventory

After determining your beginning inventory, you also have to account for any inventory purchases throughout the period. It’s important to keep track of the cost of shipment and manufacturing for each product, which adds to the inventory costs during the period.

Step 4: Determine Ending Inventory

The ending inventory is the cost of merchandise leftover in the current period. It can be determined by taking a physical inventory of products or estimating that amount. The ending inventory costs can also be reduced if any inventory is damaged, obsolete, or worthless.

Step 5: Plug It Into the Cost of Goods Sold Equation

Now that you have all the information to calculate cost of goods sold, all there’s left to do is plug it into the COGS formula.

An Example of The Cost of Goods Sold Formula

Let’s say you want to calculate the cost of goods sold in a monthly period. After accounting for the direct costs, you find out that you have a beginning inventory amounting to $30,000. Throughout the month, you purchase an additional $5,000 worth of inventory. Finally, after taking inventory of the products you have at the end of the month, you find that there’s $2,000 worth of ending inventory.

Using the cost of goods sold equation, you can plug those numbers in as such and discover your cost of goods sold is $33,000:

COGS = beginning inventory + purchases during the period – ending inventory
COGS = $30,000 + $5,000 – $2,000
COGS = $33,000

Accounting for Cost of Goods Sold

There are different accounting methods used to record the level of inventory during an accounting period. The accounting method chosen can influence the value of the cost of goods sold. The three main methods of accounting for the cost of goods sold are FIFO, LIFO, and the average cost method.

Two illustrations help explain the difference between FIFO and LIFO, which is an inventory method of accounting for the cost of goods sold.

FIFO: First In, First Out

The first in, first out method, also known as FIFO, is when the earliest goods that were purchased are sold first. Since merchandise prices have a tendency of going up, by using the FIFO method, the company would be selling the least expensive item first. This translates into a lower COGS compared to the LIFO method. In this case, the net income will increase over time.

LIFO: Last In, First Out

The last in, first out method, also known as LIFO, is when the most recent goods added to the inventory are sold first. If there’s a rise in prices, a company using the LIFO method would be essentially selling the goods with the highest cost first. This leads to a higher COGS compared to the FIFO method. By using this method, the net income tends to decrease over time.

Average Cost Method

The average cost method is when a company uses the average price of all goods in stock to calculate the beginning and ending inventory costs. This means that there will be less of an impact in the COGS by higher costs when purchasing inventory.

Considerations for Cost of Goods Sold

When calculating cost of goods sold, there are a few other factors to consider.

COGS vs. Operating Expenses

Business owners are likely familiar with the term “operating expenses.” However, this shouldn’t be confused with the cost of goods sold. Although they are both company expenditures, operating expenses are not directly tied to the production of goods.

Operating expenses are indirect costs that keep a company up and running, and can include rent, equipment, insurance, salaries, marketing, and office supplies.

COGS and Inventory

The COGS calculation focuses on the inventory of your business. Inventory can be items purchased or made yourself, which is why manufacturing costs are only sometimes considered in the direct costs associated with your COGS.

Cost of Revenue vs. COGS

Another thing to consider when calculating COGS is that it’s not the same as cost of revenue. Cost of revenue takes into consideration some of the indirect costs associated with sales, such as marketing and distribution, while COGS does not take any indirect costs into consideration.

Exclusions From COGS Deduction

Since service companies do not have an inventory to sell and COGS accounts for the cost of inventory, they can’t use COGS because they don’t sell a product — they would instead calculate the cost of services. Examples of service companies are accounting firms, law offices, consultants, and real estate appraisers.

salary, business owners should have a well-rounded view of the costs associated with their goods sold. Following this step-by-step guide to learn how to use the cost of goods sold formula is a good starting point. As always, it’s important to consult an expert, such as an accountant, when doing these calculations to make sure everything is accounted for.

Sources: QuickBooks

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12 Best Monthly Dividend Stocks and Funds to Buy for 2022

For all the changes we’ve experienced in recent years, some things remain regrettably the same. We all have bills to pay, and those bills generally come monthly. Whether it’s your mortgage, your car payment or even your regular phone and utility bills, you’re generally expected to pay every month.

While we’re in our working years, that’s not necessarily a problem, as paychecks generally come every two weeks. And even for those in retirement, Social Security and (if you’re lucky enough to have one) pension payments also come on a regular monthly schedule. But unfortunately, it doesn’t work that way in our investment portfolios. 

That’s where monthly dividend stocks come into play.

Dividend-paying stocks generally pay quarterly, and most bonds pay semiannually, or twice per year. This has a way of making portfolio income lumpy, as dividend and interest payments often come in clusters.

Well, monthly dividend stocks can help smooth out that income stream and better align your inflows with your outflows.

“We’d never recommend buying a stock purely because it has a monthly dividend,” says Rachel Klinger, president of McCann Wealth Strategies, an investment adviser based in State College, Pennsylvania. “But monthly dividend stocks can be a nice addition to a portfolio and can add a little regularity to an investor’s income stream.”

Today, we’re going to look at 12 of the best monthly dividend stocks and funds to buy as we get ready to start 2022. You’ll see some similarities across the selections as monthly dividend stocks tend to be concentrated in a small handful of sectors such as real estate investment trusts (REITs), closed-end funds (CEFs) and business development companies (BDCs). These sectors tend to be more income-focused than growth-focused and sport yields that are vastly higher than the market average.

But in a market where the yield on the S&P 500 is currently 1.25%, that’s certainly welcome. 

The list isn’t particularly diversified, so it doesn’t make a complete portfolio. In other words, you don’t want to overload your portfolio with monthly dividend stocks. But they do allow exposure to a handful of niche sectors that add some income stability, so take a look and see if any of these monthly payers align with your investment style.

Data is as of Nov. 21. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price. Fund discount/premium to NAV and expense ratio provided by CEF Connect.

1 of 12

Realty Income

7-11 store7-11 store
  • Market value: $40.1 billion
  • Dividend yield: 4.2%

Perhaps no stock in history has been more associated with monthly dividends than conservative triple-net retail REIT Realty Income (O, $70.91). The company went so far as to trademark the “The Monthly Dividend Company” as its official nickname.

Realty Income is a stock, of course, and its share price can be just as volatile as any other stock. But it’s still as close to a bond as you’re going to get in the stock market. It has stable recurring rental cash flows from its empire of more than 7,000 properties spread across roughly 650 tenants.

Realty Income focuses on high-traffic retail properties that are generally recession-proof and, perhaps more importantly, “Amazon.com-proof.” Perhaps no business is completely free of risk of competition from Amazon.com (AMZN) and other e-commerce titans, but Realty Income comes close. 

Its largest tenants include 7-Eleven, Walgreens Boots Alliance (WBA), FedEx (FDX) and Home Depot (HD), among others. The portfolio had relatively high exposure to gyms and movie theaters, which made the pandemic painful. But as the world gets closer to normal with every passing day, Realty Income’s COVID-19 risk gets reduced that much more.

At current prices, Realty Income yields about 4.2%. While that’s not a monster yield, remember that the 10-year Treasury yields only 1.6%. 

It’s not the raw yield we’re looking for here, but rather income consistency and growth. As of this writing, Realty Income has made 616 consecutive monthly dividend payments and has raised its dividend for 96 consecutive quarters – making it a proud member of the S&P 500 Dividend Aristocrats. Since going public in 1994, Realty Income has grown its dividend at a compound annual growth rate of 4.5%, well ahead of inflation.

2 of 12

Stag Industrial

warehousewarehouse
  • Market value: $7.6 billion
  • Dividend yield: 3.4%

Realty Income was pretty darn close to “Amazon.com-proof.” But fellow monthly payer STAG Industrial (STAG, $42.77) proactively benefits from the rise of internet commerce.

STAG invests in logistics and light industrial properties. You know those gritty warehouse properties you might see near the airport with 18-wheelers constantly coming and going? That’s exactly the kind of property that STAG buys and holds.

It’s a foregone conclusion that e-commerce is growing by leaps and bounds, and STAG is positioned to profit from it. Approximately 40% of STAG’s portfolio handles e-commerce fulfillment or other activity, and Amazon.com is its largest tenant.

E-commerce spiked during the pandemic for obvious reasons. As stores have reopened, the effects of that spike have dissipated somewhat, but the trend here is clear. We’re making a larger percentage of our purchases online.

Yet there’s still plenty of room for growth. As crazy as this might sound, only about 15% of retail sales are made online, according to Statista. Furthermore, the logistical space is highly fragmented, and Stag’s management estimates the value of their market to be around $1 trillion. In other words, it’s unlikely STAG will be running out of opportunities any time soon.

STAG isn’t sexy. But it’s one of the best monthly dividend stocks to buy in 2022, with a long road of growth in front of it. And its 3.4% yield is competitive in this market.

3 of 12

Gladstone Commercial

industrial parkindustrial park
  • Market value: $838.2 million
  • Dividend yield: 6.7%

For another gritty industrial play, consider the shares of Gladstone Commercial (GOOD, $22.49). Gladstone Commercial, like STAG, has a large portfolio of logistical and light industrial properties. Approximately 48% of its rental revenues come from industrial properties with another 48% coming from office properties. The remaining 4% is split between retail properties, at 3%, and medical offices at 1%.

It’s a diversified portfolio that has had little difficulty navigating the crazy volatility of the past few years. As of Sept. 30, 2021, the REIT had a portfolio of 127 properties spread across 27 states and leased to 109 distinct tenants. In management’s own words, “We have grown our portfolio 18% per year in a consistent, disciplined manner since our IPO in 2003. Our occupancy stands at 97.7% and has never dipped below 95.0%.”

That’s not a bad run.

Gladstone Commercial has also been one of the most consistent monthly dividend stocks, paying one uninterrupted since January 2005. GOOD currently yields an attractive 6.7%.

4 of 12

EPR Properties

movie theater and tub of popcornmovie theater and tub of popcorn
  • Market value: $3.7 billion
  • Dividend yield: 6.1%

The COVID-19 pandemic was rough on a lot of landlords. But few were as uniquely battered as EPR Properties (EPR, $49.21). EPR owns a diverse and eclectic portfolio of movie theaters, amusement parks, ski parks, “eat and play” properties like Topgolf, and a host of others.

EPR specializes in experiences over things … which is just about the worst way to be positioned at a time when social distancing was the norm. Essentially every property EPR owned was closed for at least a time, and crowds still haven’t returned to pre-COVID levels across much of the portfolio.

But the key here is that the worst is long behind EPR Properties, and the more normal life becomes, the better the outlook for EPR’s tenants.

EPR was a consistent dividend payer and raiser pre-pandemic. But with its tenants facing an existential crisis, the REIT cut its dividend in 2020. With business conditions massively improving in 2021, EPR reinstated its monthly dividend in July, and the shares now yield an attractive 6.1%. If you believe in life after COVID, EPR is one of the best monthly dividend stocks to play it.

5 of 12

LTC Properties

senior living propertysenior living property
  • Market value: $1.3 billion
  • Dividend yield: 6.7%

For one final “traditional” REIT, consider the shares of LTC Properties (LTC, $34.24).

LTC faces some short-term headwinds due to the lingering effects of the pandemic, but its longer-term outlook is bright. LTC is a REIT with a portfolio roughly split equally between senior living properties and skilled nursing facilities.

Needless to say, COVID-19 was hard on this sector. Nursing homes were particularly susceptible to outbreaks, and nursing home residents were at particularly high risk given their age. 

Senior living properties are different in that the tenants are generally younger and live independently without medical care. But a lot of would-be tenants were reluctant to move out of their homes and into a more densely populated building during a raging pandemic. And many still are.

These lingering effects won’t disappear tomorrow. But ultimately, senior living facilities offer an attractive, active lifestyle for many seniors, and that hasn’t fundamentally changed. And home care might be a viable option for many seniors in need of skilled nursing. Ultimately there comes a point where there are few alternatives to the care of a nursing home.

Importantly, the longer-term demographic trends here are all but unstoppable. The peak of the Baby Boomer generation are in their early-to-mid-60s today, far too young to need long-term care. But over the course of the next two decades, demand will continue to build as more and more boomers age into the proper age bracket for these services.

At 6.7%, LTC is one of the higher-yielding monthly dividend stocks on this list.

6 of 12

AGNC Investment

couple going over financials with mortgage brokercouple going over financials with mortgage broker
  • Market value: $8.4 billion
  • Dividend yield: 9.0%

AGNC Investment (AGNC, $15.98) is a REIT, strictly speaking, but it’s very different from the likes of Realty Income, STAG or any of the others covered on this list of monthly dividend stocks. Rather than own properties, AGNC owns a portfolio of mortgage securities. This gives it the same tax benefits of a REIT – no federal income taxes so long as the company distributes at least 90% of its net income as dividends – but a very different return profile.

Mortgage REITs (mREITs) are designed to be income vehicles with capital gains not really much of a priority. As such, they tend to be monster yielders. Case in point: AGNC yields 9%.

Say “AGNC” out loud. It sounds a lot like “agency,” right?

There’s a reason for that. AGNC invests exclusively in agency mortgage-backed securities, meaning bonds and other securities issued by Fannie Mae, Freddie Mac, Ginnie Mae or the Federal Home Loan Banks. This makes it one of the safest plays in this space.

And here’s a nice kicker: AGNC almost always trades at a premium to book value, which makes sense. You and I lack the capacity to replicate what AGNC does in house and lack access to financing on the same terms. Those benefits have value, which show up in a premium share price. Yet today, AGNC trades at a 9% discount to book value. That’s a fantastic price for the stock in this space.

7 of 12

Dynex Capital

little house on chartlittle house on chart
  • Market value: $640.6 million
  • Dividend yield: 8.9%

Along the same lines, let’s take a look at Dynex Capital (DX, $17.47). Like AGNC, Dynex is a mortgage REIT, though its portfolio is a little more diverse. Approximately 85% of its portfolio is invested in agency residential mortgage-backed securities – bonds made out of the mortgages of ordinary Americans – but it also has exposure to commercial mortgage-backed securities and a small allocation to non-agency securities.

It’s important to remember that the mortgage REIT sector was eviscerated by the COVID-19 bear market. When the world first went under lockdown, it wasn’t immediately clear that millions of Americans would be able to continue paying their mortgages, which led investors to sell first and ask questions later. In the bloodbath that followed, many mortgage REITs took catastrophic losses and some failed altogether.

Dynex is one of the survivors. And frankly, any mortgage REIT that could survive the upheaval of 2020 is one that can likely survive the apocalypse. Your risk of ruin should be very modest here.

Dynex trades at a slight discount to book value and sports a juicy 8.9% yield. We could see some volatility in the space if the Fed ever gets around to raising rates, but for now this looks like one of the best monthly dividend stocks to buy if you’re looking to really pick up some yield.

8 of 12

Broadmark Realty

real estate contract with keys and penreal estate contract with keys and pen
  • Market value: $1.3 billion
  • Dividend yield: 8.6%

Broadmark Realty (BRMK, $9.75) isn’t a “mortgage REIT,” per se, as it doesn’t own mortgages or mortgage-backed securities. But it does something awfully similar. Broadmark manages a portfolio of deed of trust loans for the purpose of funding development or investment in real estate.

This is a little different than AGNC or Dynex. These mortgage REITs primarily trade standardized mortgage-backed securities. Broadmark instead deals with the less-liquid world of construction loans.

Still, BRMK runs a conservative book. The weighted average loan-to-value of its portfolio is a very modest 60%. In other words, Broadmark would lend no more than $60,000 for a property valued at $100,000. This gives the company a wide margin of error in the event of a default by a borrower.

At current prices, Broadmark yields an attractive 8.6%. The company initiated its monthly dividend in late 2019 and sailed through the pandemic with no major issues.  

9 of 12

Main Street Capital

person doing business on computerperson doing business on computer
  • Market value: $3.2 billion
  • Dividend yield: 5.5%

We know that the pandemic hit Main Street a lot harder than Wall Street. It is what it is.

But what about business development companies. This is where the proverbial Main Street means the proverbial Wall Street. BDCs provide debt and equity capital mostly to middle-market companies. These are entities that have gotten a little big to get financing from bank loans and retained earnings but aren’t quite big enough yet to warrant a stock or bond IPO. BDCs exist to bridge that gap.

The appropriately named Main Street Capital (MAIN, $46.61) is a best-in-class BDC based in Houston, Texas. The last two years were not particularly easy for Main Street’s portfolio companies, as many smaller firms were less able to navigate the lockdowns. But the company persevered, and its share price recently climbed above its pre-pandemic highs.

Main Street has a conservative monthly dividend model in that it pays a relatively modest monthly dividend, but then uses any excess earnings to issue special dividends twice per year. This keeps Main Street out of trouble and prevents it from suffering the embarrassment of a dividend cut in years where earnings might be temporarily depressed.

As far as monthly dividend stocks go, Main Street’s regular payout works out to a respectable 5.6%, and this does not include the special dividends.

10 of 12

Prospect Capital

man signing contractman signing contract
  • Market value: $3.5 billion
  • Dividend yield: 8.0%

For another high-yielding, monthly-paying BDC, consider the shares of Prospect Capital (PSEC, $8.97).

Like most BDCs, Prospect Capital provides debt and equity financing to middle-market companies. The company has been publicly traded since 2004, so it’s proven to be a survivor in what has been a wildly volatile two decades.

Prospect Capital is objectively cheap, as it trades at just 89% of book value. Book value itself can be somewhat subjective, of course. But the 11% gives us a good degree of wiggle room. It’s safe to say the company, even under conservative assumptions, is selling for less than the value of its underlying portfolio. It also yields a very healthy 8.0%.

As a general rule, insider buying is a good sign. When the management team is using their own money to buy shares, that shows a commitment to the company and an alignment of interests. Well, over the course of the past two years, the management team bought more than 29 million PSEC shares combined. These weren’t stock options or executive stock grants. These are shares that the insiders bought themselves in their brokerage accounts.

That’s commitment.

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Ecofin Sustainable and Social Impact Term Fund

Ecofin logoEcofin logo
  • Assets under management: $269.7 million
  • Distribution Rate: 6.0%*
  • Discount/premium to NAV: -14.3%
  • Expense ratio: 2.28%**

There’s something to be said for orphan stocks. There are certain stocks or funds that simply don’t have a “normal” go-to buying clientele.

As a case in point, consider the Ecofin Sustainable and Social Impact Term Fund (TEAF, $15.00). This is a fund that straddles the divide between traditional energy infrastructure like pipelines and green energy projects like solar panels. It also invests in “social impact” sectors like education and senior living. Approximately 68% of the portfolio is dedicated to sustainable infrastructure with energy infrastructure and social impact investments making up 13% and 19%, respectively.

But this isn’t the only way the fund is eclectic. It’s also a unique mixture of public and private investments. 52% is invested in publicly traded stocks with the remaining 48% invested in private, non-traded companies.

Is it any wonder that Wall Street has no idea what to do with this thing?

This lack of obvious buying clientele helps to explain why the fund trades at a large discount to net asset value of 15%.

That’s okay. We can buy this orphan stock, enjoy its 6% yield, and wait for that discount to NAV to close. And close it will. The fund is scheduled to liquidate in about 10 years, meaning the assets will be sold off and cash will be distributed to investors. Buying and holding this position at a deep discount would seem like a no-brainer of a strategy. 

Learn more about TEAF at the Ecofin provider site.

* Distribution rate is an annualized reflection of the most recent payout and is a standard measure for CEFs. Distributions can be a combination of dividends, interest income, realized capital gains and return of capital.

** Includes 1.50% in management fees, 0.28% in other expenses and 0.50% in interest expenses.

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BlackRock Municipal 2030 Target Term

BlackRock logoBlackRock logo
  • Assets under management: $1.9 billion 
  • Distribution rate: 2.9%
  • Discount/premium to NAV: -4.6%
  • Expense ratio: 1.01%**

We’ll wrap this up with another term fund, the BlackRock Municipal 2030 Target Term Fund (BTT, $25.49).

As its name suggests, the fund is designed to be liquidated in 2030, roughly eight years from now. A lot can happen in eight years, of course. But buying a portfolio of safe municipal bonds trading at a more than 4% discount to book value would seem like a smart move.

The biggest selling point of muni bonds is, of course, the tax-free income. The bond interest isn’t subject to federal income taxes. And while city, state and local bonds aren’t “risk free” – only the U.S. government can make that claim – defaults and financial distress in this space is rare. So, you’re getting a safe, tax-free payout. That’s not too shabby.

As of Oct. 29, 2021, BTT’s portfolio was spread across 633 holdings with its largest holding accounting for about 3.4%.

BTT sports a dividend yield of 2.9%. That’s not “high yield” by any stretch of the imagination. But remember, the payout is tax free, and if you’re in the 37% tax bracket, your tax-equivalent yield is a much more palatable 4.6%.

Learn more about BTT at the BlackRock provider site.

** Includes 0.40% in management fees, 0.61% in interest and other expenses

Source: kiplinger.com

Glassdoor vs. Indeed: 2021 Comparison

There are so many job boards out there in the world — some being a better choice than others, depending on your needs. So let’s compare two of the top job search engines out there — Glassdoor vs. Indeed — to help you make a decision on which one you should be using, whether as a job seeker or an employer looking to post job listings.

Glassdoor and Indeed are owned by the same holding company, but they operate as separate entities. They both function as a way to improve recruiting and hiring, but they can serve different purposes. Many companies find success using both websites to complement their recruiting efforts.

Another website that addresses many of the options on both sides, in one location, is ZipRecruiter. If neither Indeed nor Glassdoor has everything job seekers or employers need, it may be a better choice to find qualified candidates or land your next role. Read on to understand which job board will help you achieve your professional goals.

What is Glassdoor?

Glassdoor goes beyond the typical job board and features employer branding solutions for companies in the hiring process and gives job seekers the ability to research companies before applying to the jobs posted. In addition to seeing job postings, job seekers can read more about potential companies, including their benefits and salary information. Employers can post photos of the office and from events, too, to give potential candidates a better understanding of what the company culture is like.

A particularly unique feature of Glassdoor is that current and former employees (as well as people who have only interviewed with them) can leave employee reviews for other candidates to see. Pros, cons, feedback on the interview process and what can be done to improve all help job seekers get a more in depth look into the company.

As for size, there are 50 million unique monthly users on Glassdoor, nearly 20 million less than Indeed.

What is Indeed?

Indeed is the largest job-searching website in the world — there are tens of millions of employers posting jobs and hundreds of millions of applicants hoping to find their next role. It’s main and only focus is as a job-search engine.

There are more than 70 million monthly users coming to Indeed to search for their next role, twice what Glassdoor has. With such a large audience, it’s a great option for employers to upload free job postings and for applicants to find plenty of job openings.

How Does Glassdoor Work for Employers?

When looking to hire for more niche roles, Glassdoor is a great solution for employers looking to showcase their business and company culture. The ability to create a brand that job seekers are interested in can be a huge advantage during the recruiting process.

Companies can create a brand page for free, as well as utilize the insights that Glassdoor provides to improve employee and interviewee experiences.

With a paid membership, hiring managers can use premium features on Glassdoor like competitor comparisons, branded advertising to get in front of more qualified candidates, and review analysis.

Because Glassdoor’s main focus isn’t the job search, but instead a branding site for companies, there aren’t as many features for recruiters to utilize as there are on a job site like Indeed or ZipRecruiter. There’s no applicant tracking system, nor can employers conduct a resume search.

How Does Indeed Work for Employers?

Employers can post a basic job opening for free on Indeed, making it an ideal platform for hiring managers working on a budget. But as great as the free option is, that also means the competition is stiff to get your job posting seen. How many other employers are competing for the eyes of qualified candidates?

Indeed’s solution to that problem is a paid job post. For as little as a few bucks a day, employers can post sponsored jobs and make sure the job postings get in front of the most applicants. When you pay for a post, you can invite people to apply for your job after finding resume matches.

Other free solutions for employers include adding screener questions and the ability to message and virtually interview candidates. It’s not possible to repost jobs from other websites onto Indeed.

Indeed also simplifies the screening process by grouping qualified applicants to the top of a dashboard, automatically declining applicants and helping to schedule interviews all within their website.

The Differences and Similarities for a Job Seeker: Glassdoor vs. Indeed

For job seekers, Glassdoor is a window into what it will be like to work for a company. When perusing the job board, they’ll be able to see not only the job postings, but an estimated salary range, company description and company reviews plus the benefits that are offered.

The uniquely detailed insight into an employer brand isn’t a feature that exists on Indeed, but if using both Glassdoor and Indeed together, candidates can pop back and forth between the two websites to get the information they need before applying on either website.

Another difference is the amount of available jobs and competition from other job seekers. Glassdoor jobs tend to be more niche, but there are  about 20 million less users searching for jobs on the site each month as there are on Indeed. On the flip side, Indeed can be overwhelming with the amount of available jobs to search through.

Glassdoor’s job board requires an account for all job seekers to be able to view jobs, salaries and reviews from previous and current employees — but it’s free to use.

Indeed is free for every job seeker and doesn’t necessarily require an account to search for job postings  and apply for jobs. Job seekers can create an account to post their resume and make it easier for recruiters to contact them, but it’s not necessary.

The job search engines on both sites let job seekers filter their search results by job title or keyword and location. Plus, they can get email job alerts when a job posting that matches their search is added to the website.

Can’t Decide Between Glassdoor vs. Indeed? Try ZipRecruiter

If you’re comparing Indeed vs. Glassdoor to decide which job board to use, a third option is ZipRecruiter. It’s a more streamlined way to post jobs and recruit top talent without being behind an account wall — or having to flip between two different sites — and it also happens to be the No. 1 job search engine online.

ZipRecruiter has a free trial for companies (it’s always free for people looking for new opportunities), then prices start as low as $16 per day for one reusable job post. The features that come with the cost make it worthwhile, if you’re serious about filling your positions quickly.

Each job posting can be syndicated to more than 100 other job boards, multiplying the number of qualified job seekers that will see your listing. Employers can also conduct a resume search and see potential candidates’ employment history before inviting them to apply to a specific position instead of waiting for future employees to find them.

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Source: thepennyhoarder.com

Comparing ZipRecruiter vs. Glassdoor for Employers

With millions of unfilled job openings and a serious shortage of workers, businesses across the country are struggling to recruit the employees they need.

Is your business struggling to find qualified job candidates? In that case, you’ve no doubt considered using a popular online recruitment platform like ZipRecruiter or Glassdoor. But what’s the difference between the two? Which one is best for your needs?

In this guide, we’ll go in-depth and do a side-by-side comparison between these two platforms — how they work, what they cost and what audiences they’re aimed at.

Let’s start with an overview of each:

ZipRecruiter: Post a Job on Multiple Job Boards

ZipRecruiter is useful if you need a job opening to be posted widely so you can hire someone quickly. ZipRecruiter isn’t a job board itself. Instead, it’s a marketplace that allows employers to post a job opening to multiple online job boards at the same time.

ZipRecruiter uses artificial intelligence to decide where to post your job vacancies, and it uses its matching technology to analyze millions of data points to find the best potential matches for your job.

ZipRecruiter for Employers

It’s free for employers to try for four days. After that, there are various packages you can buy, depending on your needs. ZipRecruiter offers three different monthly plans, based on how many jobs you want to advertise.

You can pay extra for sponsored posts to give your job postings premium placement on job sites. There’s also a “traffic boost” option that allows you to send out job postings via email, attracting more applicants. You can also sort through resumes on your ZipRecruiter dashboard.

Once you post jobs, ZipRecruiter’s AI can promote your listings and send job alerts to candidates who are more likely to be interested and qualified. The AI tools can also help you right-size your recruitment efforts to keep your spending efficient and on budget.

The platform can also help you keep track of applicants, and it’ll help you integrate your current applicant tracking system into its platform.

ZipRecruiter for Job Seekers

If you’re on a job search, the site is free for job seekers. You can search for job posts based on factors like desired salary, location or various keywords.

You can post a profile on the site that potential employers can see. You can post your resume, references, social network handles or a profile picture, among other things.

Glassdoor: Employees Rate Employers

Glassdoor launched in 2008 as a company ratings site where employees and former employees could review the companies they worked for, and post their salaries for comparison. It has since expanded its offerings, and now attracts roughly 50 million visitors per month.

Glassdoor for Employers

You can claim your company on Glassdoor’s website and create a company profile for free. It’s a good way to build your brand. The free version allows you to post basic information about your company and what it does. Glassdoor’s paid plans offer more customization options.

For job listings, Glassdoor sends you to its sister website, Indeed.com, one of the biggest online job boards around for employers and job hunters alike. You can post up to 10 jobs free for seven days. Beyond that, though, you’ll need to pay.

Indeed’s hiring platform helps employers tap into that job board to find qualified candidates who are available. Recruiters can expedite the screening process, automatically moving candidates forward who indicate they meet preset conditions in hiring questionnaires.

Like ZipRecruiter, Indeed lets you pay to bump up the placement of your job posting in search results, and you can create targeted ads to advertise to more qualified candidates.

Glassdoor for Job Seekers

Glassdoor is free for job seekers, and the company profiles are useful in your job search. You can also read employees’ and former employees’ unvarnished reviews of each company, and guess what? Not all the reviews are positive! In fact, some of the reviews tend to be scathing. Reading them can be quite educational.

Two people work in an office cubicle.
Getty Images

ZipRecruiter vs. Glassdoor: Pros and Cons

Each of these popular recruitment platforms have their pluses and minuses, depending on what you’re looking for:

ZipRecruiter’s Pros and Cons

Pros Cons
Artificial intelligence helps you scale your recruiting efforts Free trial only lasts four days
Can reach more than 100 job boards No ability to post a company page
Has customizable job description templates for employers to use Can be more expensive than other options

Glassdoor’s Pros and Cons

Pros Cons
Offers some basic job listings for free The actual job listings are on a different site, Indeed
You can create a company profile with information you want prospective recruits to see Prices aren’t posted online

ZipRecruiter vs. Glassdoor: Applicant Tracking

Does your company use an applicant tracking system like Bullhorn, ClearCompany or Greenhouse? Both ZipRecruiter and Glassdoor work seamlessly with dozens of third-party applicant tracking systems.

Using ATS integration, these online platforms can help ensure that your job posts are up-to-date, eliminating friction for job seekers and making the interview process more efficient.

Both ZipRecruiter and Glassdoor’s ATS integration can also generate valuable data for employers, from monitoring job posting quality to helping you tap into a resume database. The analytics can show you how well candidates respond to your job alerts or job ads and help you uncover ways to improve them.

ZipRecruiter vs. Glassdoor: What It Costs

This is the most challenging part for job posters like you to grapple with, because there are so many different pricing options, and not all the prices are posted online. In some cases, you’ll need to ask each company’s sales department for a quote.

Free options are few. Both recruiting platforms offer free trials: ZipRecruiter lets you post jobs for free for four days. Glassdoor lets you post up to 10 job openings for free for seven days.

ZipRecruiter’s Pricing

ZipRecruiter has three monthly plans — Standard, Premium and Pro. Prices are based on how many jobs you need to post and how many job boards or job sites you want your job opportunities to be posted on. Prices start as low as $16 per day for one reusable job post.

“First we work with you to understand your specific hiring goals, strategy and budget,” ZipRecruiter says on its website. “From there, we customize your campaign based on the number of jobs you have, the type of jobs you need to fill, the location, and industry. Plans can be tailored for a monthly subscription or pay-for-performance depending on your hiring goals.”

Glassdoor’s Pricing

Through Glassdoor, you can post up to 10 jobs for free for seven days on its sister site, Indeed. Beyond that, though, you’ll need to pay for premium job placements.

Glassdoor has two paid plans — Standard and Select. For prices, you have to contact Glassdoor’s sales department.

With the Standard package, you can customize your company profile and do a keyword analysis of your company’s reviews, among other things. With the Select package, you get industry benchmark reports and audience targeting insights.

ZipRecruiter vs. Glassdoor: Customer Support

With ZipRecruiter, you can reach customer service via the phone, live chat or email. The website also has a thorough FAQ as well as “how to” guides.

Glassdoor has a “Contact Us” page on its website where you can send the company queries. There’s also a search bar that can help you find answers to your questions.

Resume Search

Want to do a resume search? ZipRecruiter has a vast resume database and provides unlimited resume searches for clients who purchase one of its premium plans. If you’ve purchased the cheapest plan, you’ll have to buy resume searches.

Glassdoor’s sister site, Indeed, also offers screening solutions to expedite the hiring process, without letting an unqualified candidate smooth-talk you into an interview.

The Bottom Line

If you’re an employer looking for an effective place to post a job, these are two solid options.

Glassdoor allows you to create a detailed company profile and assert some control over your brand. It also allows you to post jobs through its sister site, Indeed.

However, ZipRecruiter offers you the ability to get your job posting out to more than 100 job sites. Also, hiring managers and HR directors can take advantage of how ZipRecruiter’s AI streamlines the process of creating job postings, reaching qualified talent and tracking candidates.

Either choice can find you the employees you need.

Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder.

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Source: thepennyhoarder.com

Second-Hand Shopping: How to Save at Thrift Stores and Consignment Shops

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Over the past two years, my husband and I have spent less than $400 per year on clothing. Our secret? We buy most of our clothes secondhand.

And clothing is just the tip of the iceberg. We prefer to shop secondhand whenever possible for nearly everything we buy — furniture, books, tools, even materials for home repair. No matter what we need, we always check out secondhand sources like thrift stores, yard sales, and Craigslist before resorting to buying new.

Shopping that way isn’t just good for our budget. With each great find, we’re saving money and helping the environment. And with the right shopping strategies, you can do the same.


Where to Shop Secondhand

There are many kinds of secondhand stores specializing in different types of goods. On top of that, there’s a wide variety of apps for buying and selling used stuff, both in your local area and across the country. 

With so many options, it’s possible to pick up almost anything secondhand if you know where to look.

Thrift Stores

There are two primary kinds of thrift shops: for-profit and nonprofit. For-profit thrift stores, like other retailers, are in business to make a profit. 

For-profit thrift store chains include Savers (known as Value Village in the Northwest), Red White and Blue, MyUnique.com, Plato’s Closet, and Once Upon a Child. Chains like these often focus on higher-quality merchandise that’s more likely to sell.

Nonprofit thrift stores are run by charitable organizations like Goodwill, the Salvation Army, and the Society of St. Vincent de Paul. In my experience, these stores usually charge lower prices than for-profit ones. For instance, at a local church thrift shop, I’ve bought T-shirts for $1 and jeans for $2. However, a lot of the garments on the racks are worn or damaged.

The most common item sold at thrift stores is clothing. However, most stores sell other types of goods as well. Nearly every thrift shop I’ve ever been to had at least a shelf or two loaded with dishware, little knick-knacks, and household goods like pots and pans. Depending on the store, you may also find books, videos, toys, games, and even furniture.

Consignment Shops

Like thrift stores, consignment shops typically specialize in clothing. But they operate on a different business model. 

At thrift stores, people can either donate their garments or sell them to the store at a low price. At consignment shops, people give their garments to the store in exchange for a cut of the sale price.

Along with clothes, consignment stores sometimes sell small furniture and home decor. They generally deal in higher-quality merchandise than thrift stores, making them an excellent place to buy designer clothing on a budget. However, their prices are typically higher than most thrift shops’.

Goodwill Outlets

At the opposite end of the price scale for secondhand goods are Goodwill Outlet Stores. 

These are locations where Goodwill unloads all the merchandise that hasn’t sold in its retail stores. After they’ve been on the shelves a specified length of time, local Goodwill staff ships them to an outlet location to be sold by the pound to thrifty buyers.

Goodwill Outlet Stores aren’t like ordinary thrift shops, where merchandise is sorted onto racks or shelves by type, size, and color. Instead, everything’s usually just piled into huge bins you can rummage through. 

They’re not the best place to hunt for something specific. But they’re a fantastic place to find cheap goods you can resell online as a side hustle.

Vintage Stores

Vintage clothing stores deal in the garments and accessories of past decades. Some focus on garb from a specific era, such as the 1960s, while others offer clothing spanning a wide range of periods. But everything in the store is at least 20 years old. 

Unlike thrift stores, vintage stores typically feature rare goods that command a higher price tag. They often focus on well-known brand names, including retired brands like Gunne Sax. 

Vintage stores charge a lot more than thrift stores. But shop wisely. In some cases, their garments cost more than brand-new ones sold at regular retail stores, though you can find few-of-a-kind garments for less than high-end designer duds. 

For women’s clothes, one thing to watch out for when shopping vintage is the sizing. Women’s clothing sizes have changed over the years, so your size in vintage clothing is likely several sizes larger than in modern clothes. 

Antique Stores

Antique stores take vintage to the next level. They sell goods from bygone eras, including furniture, home decor, clothing, and jewelry. While the merchandise in vintage stores can be as little as 20 years old, antique stores deal primarily in goods that are at least 100 years old.

Like vintage stores, antique stores aren’t usually a good place to shop if your main goal is to save money. But you can find some unique pieces that are cheaper than buying new high-end goods if you know how.

Flea Markets

A flea market, also known as a swap meet, is a big open-air market where lots of vendors set up booths to sell secondhand wares. Furniture and home decor are the most common goods sold at flea markets, but you can find a vast array of other stuff as well, from clothing to musical instruments. 

Flea markets vary widely in size, selection, and prices. Some markets are vast tent cities covering acres of ground, while others are merely a dozen or so booths set up in a warehouse. Depending on the market, you may also find vendors selling new or handmade wares, such as artwork.

Reuse Centers

If you’re seeking materials for a home remodeling project, check out reuse centers such as Habitat for Humanity ReStores. They carry furniture, appliances, and building materials like lumber, tile, and paint for around half the retail price. 

Some supplies have been torn out of demolished or renovated buildings, while others are left over from building projects.

Architectural salvage stores are similar to reuse centers, but they skew a bit higher-end. They specialize in antique furniture and fixtures you can’t find in a typical home center, such as carved woodwork and vintage lighting fixtures. 

They’re a fantastic place to look if you’re renovating a period home and want to find materials that match its original style.

Specialty Secondhand Stores

There are many other kinds of secondhand stores that focus on specific types of goods. For instance, used bookstores sell secondhand paperback and hardcover books at prices that can often beat Amazon’s. Used record stores deal in secondhand vinyl LPs, and some offer CDs as well.

Online Resale Sites & Apps

There’s a huge variety of websites and apps devoted to connecting sellers of secondhand merchandise with buyers. You can find an online secondhand market for almost anything you want to buy.

Clothing

If you can’t find the right garment in the right size at your local thrift store, try shopping online thrift stores and consignment stores like ThredUp and Swap.com. These sites offer a more extensive selection and make it easy to search for exactly what you want. 

Some online resale sites specialize in specific types of clothing. For instance, Tradesy, Poshmark, and The RealReal deal in designer clothes at prices up to 70% off retail, while Stillwhite provides a market for used wedding dresses.

The biggest downside of shopping at online thrift stores is that you can’t try on clothes before buying. You have to rely on the description and measurements provided by the seller. Most sites accept returns, but you usually have to pay a shipping or restocking fee. 

Furniture

You can find vintage furniture, home decor, and artwork online through Chairish. This site focuses on high-end appointments costing hundreds or thousands of dollars, so it’s more useful for finding unique pieces than for saving money. 

There are several ways to search listings on Chairish. You can look for a particular category, such as rugs or rocking chairs, or a particular style, such as art deco or midcentury modern. 

You can also narrow your choices by price and by location. And with the Chairish app, you can get a preview of how a piece will look in your home before buying. And once you choose, you can have purchases shipped to your home or arrange a pickup with a local seller.

Electronics

It’s hard to be sure used electronics work. But you can eliminate any purchase risk by choosing certified refurbished. The manufacturer or a reseller has thoroughly repaired them to ensure they work like new for a fraction of the cost. They even come with warranties.

Good sites for buying refurbished gadgets include Back Market, Decluttr, and Gazelle. You can also buy refurbished electronics directly from manufacturers like Samsung and Apple and retail sites like Amazon Warehouse.

Another site worth checking out is Swappa. While Swappa doesn’t technically refurbish the devices it lists, it reviews them to ensure they’re functional and meet company standards.

Books

There are several good sites for buying books secondhand. You can find used copies of many volumes at online booksellers like Amazon and Alibris, and ThriftBooks deals in used books specifically. 

You can also swap your old books for new books from other users at PaperBackSwap and BookMooch.

To save money on textbooks, look to sites like Amazon, eCampus.com, CampusBooks, and Chegg. You can buy textbooks for up to 90% off the cover price and resell them when you complete the course to recover part of the cost.

Everything Else

Practically anything is available on eBay, including clothing, household goods, art, electronics, toys, and office equipment. It’s also a fantastic place to look for rare vintage finds. But eBay sellers also stock new goods, so check the listing before adding it to your cart.

Another good marketplace for all kinds of secondhand goods is Mercari. Like eBay, it offers both new and used goods in a wide range of categories. For oversize merchandise that’s too heavy to ship economically, such as furniture, you can use Mercari Local.

Local Listings

You probably already know about Craigslist, a marketplace for secondhand goods of all kinds from sellers in your local area. However, there are several other peer-to-peer marketplaces for local sales, including Facebook Marketplace, OfferUp, and 5Miles.

Users can buy and sell almost anything through these sites. But what’s available through your local group depends on where you live and can vary daily. Prices also vary widely depending on the item and the location. 

One nice perk of buying local is being able to see the merchandise in person before handing over your money.

Pawnshops

A pawnshop is a store where people can trade their high-value goods for quick cash. The store pays only a fraction of their value, but it gives the borrower the right to reclaim their belongings within a month for a fee. If they don’t, the merchandise goes up for sale.

Pawnshops are an excellent place to find higher-end items. Jewelry, electronics, bicycles, firearms, power tools, and musical instruments all show up on their shelves. 

The prices on the tag aren’t always that much cheaper than retail. However, it’s usually possible to haggle. And pawnbrokers are more willing to offer you a good price if you pay in cash.

Yard & Garage Sales

Yard-sale shopping is a hit-or-miss proposition. You can find all kinds of stuff at great prices — typically no more than one-third of what you’d pay for a similar new item. However, the selection and pricing vary widely from sale to sale. 

The downside is that you can never be sure of finding exactly what you want at any given sale. But if you visit enough sales, you’re almost certain to find something interesting at a reasonable price.


Going to a resale shop or yard sale isn’t like shopping in a department store. You can’t decide what exact item you want to buy down to the model number and color. 

Think of secondhand shopping more like a treasure hunt. On some trips, you may search the shelves for an hour and find nothing useful. But the occasions when you strike it rich — finding the perfect sweater for $5 or a great end table for $10 — make it all worthwhile.

Moreover, there are ways to improve your chances of finding treasure. By adapting your shopping strategies and behaviors, you can find the best values and make the most of your shopping excursion.

1. Choose the Right Store

Just like a real treasure hunt, a successful thrifting excursion starts with knowing where to look. If you’re looking for brand-name clothing, a consignment shop is probably the best place to search. If you want the lowest prices on kids’ clothes for back-to-school, you’re better off shopping at a nonprofit thrift store or yard sale. 

For books, try a secondhand bookstore. For jewelry, try a pawnshop. And for home furnishings, consider flea markets, antique stores, and reuse centers.

The location can also affect the selection. Stores in wealthier parts of town tend to carry higher-end merchandise, while shops in working-class neighborhoods are more likely to have rock-bottom prices.

If the stores in your neighborhood don’t carry the kinds of goods you’re looking for, try branching out to other parts of town. Ask friends about secondhand stores in their area, or do an online search to see what’s available. Then check online reviews to learn more about what each store has to offer.

2. Know Your Local Store

You can shop more efficiently when you’re familiar with your local secondhand options and their policies. Useful things to know include:

  • Store Layout. If you know how the store is organized, you can go straight to the section that carries your size or the type of goods you’re looking for. That saves you time on every shopping trip.
  • Return Policies. At many secondhand stores, all sales are final, even if an item is defective. If your store doesn’t accept returns, it’s good to know that upfront so you can be extra careful about what you buy.
  • Sale Schedule. Some resale shops have end-of-season clearance sales. Others sometimes give you a flat rate to fill up an entire bag. Some, like Goodwill, regularly mark down the oldest wares. By learning when and how sales work, you can show up on the right day to score the best deals.
  • Delivery Schedule. Some stores always receive or put out new merchandise on a specific day and time, such as Monday mornings. Learning when new goods show up lets you get there before other shoppers have picked them over.
  • Available Discounts. Some shops reduce their prices for older people, students, or military members and first responders. Others offer a discount when you buy a lot at once. Always ask about discounts so you get the price you’re entitled to.

There are several ways to get the inside scoop. If they have a contact list, sign up to receive email or text alerts about sales and special deals. You can also follow the store on social media.

But perhaps the best way to know what’s going on is to make friends with the staff. Take a little extra time to chat and get to know them instead of just bustling out with your purchases. 

If they know and like you, they’re more likely to let you in on secrets other customers don’t know. They may even be willing to set stuff aside for you or at least give you a heads up if they know what you’re looking for.

3. Join the Loyalty Program

Some secondhand stores, such as certain Goodwill and Habitat ReStore branches, offer customer loyalty programs. Members earn points they can cash in for coupons or discounts.

If your local thrift store or resale shop has a loyalty program, it’s definitely worth signing up for it. In fact, if you shop at multiple stores that all have loyalty programs, there’s no reason not to sign up for all of them. It costs nothing, and it allows you to earn rewards every time you shop.

4. Use Teamwork

It isn’t always easy to find what you want at resale stores. Racks and shelves can be disorganized, and the selection changes frequently. If you’re not in the right place at the right time, you could miss out on the exact product you’re looking for.

That’s why it helps to have a partner — or several — in your thrifting endeavors. Let your friends know what’s on your shopping list, including details like the brands you like or the size you need, and learn the same about each of them.

That way, whenever you hit the secondhand store, you can shop for each other. If one of you finds something that’s on a friend’s wish list, you can text them a photo to let them know where to find it. They can come in for a quick look or ask you to pick it up for them. 

Another perk of teamwork is that it gives you a fresh perspective. Sometimes, your friends alert you to finds that aren’t on your list — perhaps even things you wouldn’t have thought to buy for yourself. But as soon as you see them, you realize they’re perfect for you.

5. Inspect Merchandise Carefully

Since most secondhand goods are sold as is, you have to scrutinize them before you buy. If you’re buying clothing, check it for rips, stains, odors, or missing buttons. Minor damage isn’t necessarily a deal breaker since you may be able to repair it. But you should take the problems into account when deciding how much you’re willing to pay.

When buying furniture, the most important thing to check is whether it’s sturdy and well made. Examine all the joints to see if they feel secure, and open drawers to see if they glide effortlessly. Sit in chairs to check their comfort. Basically, test it out the way you’d use it in your own home.

With anything that runs on electricity, it’s essential to plug it in and test its function. Check the power button and all controls, and ensure all the accessories and attachments are included and work. If possible, put the item to a full test right there in the store — for instance, put a record on the turntable you want to see how it plays.

6. Only Buy What You’ll Use

If you’re new to secondhand shopping, it’s easy to be bowled over by the amazingly low prices. You can end up loading up a cart with stuff you don’t need just because the prices are so irresistible. 

Then, you get it all home and realize you have no use for a slow cooker, you’re never going to wear a bright-orange sweater, and those jeans are so tight you can’t sit down in them.

Keep your needs and your preferences firmly in mind while you shop. Consider the clothes in your closet and the furnishings in your home, and think about which colors and styles you love the most. Focus on those, and don’t be tempted by “bargains” that aren’t right for you.

Likewise, be careful about falling for clothing that doesn’t quite fit. If you find a slightly too-big garment you love, a tailor may be able to take it in for you. But if it’s too small, don’t buy it hoping to lose weight. Chances are it will just sit in your closet making you unhappy every time you see it. 

If you’re trying to lose weight, wait until you’re down a size before hitting the resale shops. That way, you can try on everything. And since prices are so low, you can pick up a whole new wardrobe for your smaller size without blowing your budget.

7. Shop Out of Season

If you’re shopping for clothing, you can sometimes find better deals on off-season clothes. If you’re shopping for shorts in summer or sweaters in winter, you’re competing with other secondhand shoppers looking for the same garments. The merchandise at thrift shops and yard sales is picked over, and anything you find is likely to be more expensive or less desirable.

To save money, switch it up and look for cool-weather clothes in summer and warm-weather clothes in winter. You’ll have more pieces to choose from, and they’ll probably be cheaper.

This strategy doesn’t work everywhere. For instance, some thrift shops and consignment stores rotate their selections, displaying only season-appropriate clothes.

However, you can still improve your odds of finding good clothes by shopping around the start of the season. In September, when the cool-weather clothes have just appeared on thrift-store shelves, you’ll see everything they have. Wait until February, and you’ll be left with other shoppers’ dregs.

8. Avoid Big Names

When shopping at antique stores, you’re likely to pay more if you focus on big-name manufacturers. For example, an authentic Thomas Chippendale sofa is likely to cost more than a sofa of comparable age and quality from a maker who’s less well-known.

Likewise, at vintage stores and consignment shops, designer clothes and well-known brands are likely to have higher price tags than similar styles from no-name brands. By choosing a knockoff, you can get the look you want for less.

9. Give In to Impulse Buys

Most of the time, impulse buying is a bad idea. If you see something you like but don’t need, it makes more sense to skip it. Often, after taking a few days to think about it, you decide you don’t want it. And if you still want it, you can always go back and buy it.

But at the resale store, you can’t count on today’s great deal to be there tomorrow. These shops usually only have one of each item in stock, so if you leave something behind, someone else could buy it before you have a chance to come back.

That means getting the best values when secondhand shopping sometimes means giving in to impulse purchases. If you see something you love and know you’ll use and the price is right, grab it while you have the chance. 

Even if you end up deciding you don’t love it, you’ve only lost a few bucks. That’s better than spending the next several years searching the stores for that one perfect item you missed out on. And if you decide you don’t want it, you can resell it to recover the money you spent.

10. Negotiate

At many secondhand stores and nearly all pawnshops and yard sales, it’s possible to negotiate a better price than the one you see on the tag. That’s particularly true with oversized items like furniture or appliances. If they’ve been sitting unsold for a while, the manager may decide they’d rather free up the floor space than hold out.

However, stores that allow haggling don’t always advertise it. The only way to find out for sure is to try it. For example, if you’re buying $13 worth of goods, ask if they’d accept $10 for all of it. The worst they can do is say no, and if they do, you haven’t lost anything.

Note that in some establishments, only the owner or manager has the authority to change the prices. If a clerk says no, you can try asking to speak to a manager. But if they’re not available, don’t press the issue. But if you find yourself dealing with a different person on your next visit, try again. You might get a different answer next time.

11. Be Patient

When you shop secondhand, you can’t be sure you’ll find what you’re looking for. Sometimes, you have to walk out empty-handed because there wasn’t a single pair of pants in your size or a single chair that was comfortable to sit in.

Experiences like that can be frustrating, but you shouldn’t let them sour you on thrifting in general. For every frustrating trip, there’s another when you magically seem to find everything on your list — or something amazing you weren’t even looking for.

The key to making this resale magic happen is to give yourself as many opportunities as possible. Stop by your local thrift shop often, whenever you’re in the neighborhood. That gives you more chances to see new goods as they arrive and grab that special piece before it disappears. And hit the brakes for every yard sale you see.

It also helps to keep an open mind. Don’t get stuck on a specific idea of what you want, such as “navy blue L.L. bean turtleneck with whale pattern.” 

Instead, think in general terms about what you need, such as “turtleneck shirts.” That frees you up to consider more goods and find something that wouldn’t have been on your radar otherwise.


Final Word

The thrill of finding bargains at the resale shop can be intoxicating. But it’s best not to get carried away. 

It’s not a good idea to buy used every time. For example, used bike helmets and car seats may present safety hazards. In these cases, stick to brand-new items.

But for many things, secondhand shopping is an easy way to save money. It’s a particularly smart move for people who want to choose sustainable clothing but can’t afford eco-conscious brands. By making your local thrift store your first stop for clothes shopping, you can keep your wardrobe green while sticking to a budget.

If you want to take your secondhand shopping skills to the next level, expand your searches to include secondhand goods that cost nothing at all. By visiting free stores, swap parties, and websites like Freecycle and the Buy Nothing Project, you can get new-to-you stuff for no money at all.

.kb-table-of-content-nav.kb-table-of-content-id_03170d-d1 .kb-table-of-content-wrappadding:30px 30px 30px 30px;background-color:#f9fafa;border-color:#cacaca;border-width:1px 1px 1px 1px;.kb-table-of-content-nav.kb-table-of-content-id_03170d-d1 .kb-table-of-contents-titlefont-size:14px;line-height:18px;letter-spacing:0.06px;font-family:-apple-system,BlinkMacSystemFont,”Segoe UI”,Roboto,Oxygen-Sans,Ubuntu,Cantarell,”Helvetica Neue”,sans-serif, “Apple Color Emoji”, “Segoe UI Emoji”, “Segoe UI Symbol”;font-weight:inherit;text-transform:uppercase;.kb-table-of-content-nav.kb-table-of-content-id_03170d-d1 .kb-table-of-content-wrap .kb-table-of-content-listcolor:#001c29;font-size:14px;line-height:21px;letter-spacing:0.01px;font-family:-apple-system,BlinkMacSystemFont,”Segoe UI”,Roboto,Oxygen-Sans,Ubuntu,Cantarell,”Helvetica Neue”,sans-serif, “Apple Color Emoji”, “Segoe UI Emoji”, “Segoe UI Symbol”;font-weight:inherit;.kb-table-of-content-nav.kb-table-of-content-id_03170d-d1 .kb-table-of-content-wrap .kb-table-of-content-list .kb-table-of-contents__entry:hovercolor:#16928d;.kb-table-of-content-nav.kb-table-of-content-id_03170d-d1 .kb-table-of-content-list limargin-bottom:7px;.kb-table-of-content-nav.kb-table-of-content-id_03170d-d1 .kb-table-of-content-list li .kb-table-of-contents-list-submargin-top:7px;.kb-table-of-content-nav.kb-table-of-content-id_03170d-d1 .kb-toggle-icon-style-basiccircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_03170d-d1 .kb-toggle-icon-style-basiccircle .kb-table-of-contents-icon-trigger:before, .kb-table-of-content-nav.kb-table-of-content-id_03170d-d1 .kb-toggle-icon-style-arrowcircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_03170d-d1 .kb-toggle-icon-style-arrowcircle .kb-table-of-contents-icon-trigger:before, .kb-table-of-content-nav.kb-table-of-content-id_03170d-d1 .kb-toggle-icon-style-xclosecircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_03170d-d1 .kb-toggle-icon-style-xclosecircle .kb-table-of-contents-icon-trigger:beforebackground-color:#f9fafa;

Source: moneycrashers.com

15 Tips for Young Entrepreneurs Who Want to Start a Successful Business

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Additional Resources

The astrophysicist Neil DeGrasse Tyson famously said that the best way to encourage our children to become scientists is to get out of their way. He notes that the messes toddlers make are their way of experimenting with the world and exploring it, and only interference by adults starts to turn them away from that curious explorer mindset. 

Much the same can be said of encouraging our children to develop an entrepreneurial spirit. Whether mowing lawns, opening a lemonade stand, or selling creative projects, our kids are consistently looking for ways to earn money, and with it increase their independence. 

Unlike encouraging a spirit of scientific exploration, raising successful aspiring entrepreneurs requires a slightly more hands-on approach. This is more complicated ground with steeper penalties for failure. While your child, tween, or teen flexes their small-business muscles, keep in mind some important ways you can help them in their journey. 

Tips for Young Entrepreneurs Who Want to Start a Successful Business

1. Check the Local Small Business Laws

No local authorities will take issue with a second grader’s lemonade stand, or a fifth grader mowing neighborhood loans. That can’t always be said of a teen earning a few thousand dollars with a small business. Although many business licensing requirements have relaxed in this age of online commerce, you don’t want your teen to lose their earnings to fines and fees. 

Look into the laws surrounding small businesses in your area, and get an expert opinion from somebody in the City Planning Office or local Chamber of Commerce. Dot your i’s and cross your t’s here, and have your teen do most of the work. The necessities of law are part of being an entrepreneur.

If your child’s successful business venture approaches five figures of income, consider looking into formally structuring it as a corporation. This can provide various legal protections, help with compliance with any licensing or permit requirements, and be an important learning experience as you navigate the associated expenses and observances side by side. 

2. Don’t Let the Business Eclipse Academics

Running a small business can be exciting and time-consuming to the point that it tempts your teen away from their schoolwork. If this happens, it’s important to view school as their full-time, regular job and their business venture as a side hustle. This is true even if the small business is making enough money to represent a real opportunity for post-graduation financial success. 

Keep in mind, and remind your teen, that if the business fails they’ll have little to fall back on without at least a high school diploma. Yes, there are examples of famous entrepreneurs who didn’t graduate like Richard Branson and Quentin Tarantino, but there are far more dropouts working low-skill, low-wage jobs to make ends meet.

It can help to set formal goals for academics and the business, and to set those goals on timelines that allow for success in both. If academics falls behind, adjust the goals to prioritize the school work. For kids who are excited about their business, you can write up a business plan and an academics plan, using similar formatting to emphasize the similarities.

As a bonus, balancing academics with having their own company can teach time management skills at a level deeper and more meaningful than any other experience available to teens. 

3. Encourage Them To Take on Employees

Being their own boss teaches young entrepreneurs a lot, but managing other people — especially peers — can teach lessons that no other experience in life can teach. 

If your teen’s business is making money, encourage them to hire a friend, classmate, or younger family member to help with some of the work. This helps them learn about the skills and challenges of leadership while also teaching an important lesson about the value of having help. 

By outsourcing tasks they don’t like or aren’t good at early, your teen starts to learn how to value their time and expertise. It fundamentally changes their relationship with work, and their potential for success. This is a skill many adults still struggle with, and can unlock many doors to success.

Start with younger siblings and cousins as options for your child’s initial labor pool. This not only fosters a stronger relationship between family members, but many states offer exemptions to worker’s compensation and some employment laws when hiring a family member. Check with the laws for your area first, but this can save a surprising amount of money over the run of a business. 

4. Become a Managing Partner

The smartest teen in the world will fall down on some of the basic tasks of business management because they lack the perspective, contextual knowledge, and physical brain development to succeed in those areas. For that reason, it’s smart for you to fill a role as a managing partner when your child decides to start their own business.

Depending on your teen’s skill level and business experience, your role might just be to check in once every other week to make sure certain tasks are getting done. It might be to handle the books and business metrics. You might even take on the duties of the sales department or bookkeeping. Your mileage will vary, but getting involved helps them succeed while simultaneously demonstrating that you care about their success.

Partnering with your child in a business carries a second benefit beyond improving their potential business success. By working together on a business, you build a relationship that lasts long after they leave the house. Whether the enterprise fails catastrophically or makes the whole family rich, the shared experience is irreplaceable.

If your child needs some start-up cash, you can use a managing partnership as a condition of giving them an informal business loan. Like real investors in the business world, you grant them starting funds but require a hand on the business’s operations to protect your investment. 

5. Start With Scalability

Before taking on their first client for any business idea, your teen should think about and develop a plan for how to build up to a second client, and a third. They should also have an idea of the maximum number of clients they can serve given the realities of their schedule and access to transportation, and a plan for going beyond that number if they’re experiencing rapid success. 

A plan to scale up is important even at the beginning stages to start a business. Even if your teen never implements any of it, and only makes some pocket change off a valuable experiment, the exercise will introduce them to a success concept many adults never learn about.

It bears repeating that you must make certain any plans for scalability take academic, athletic, and social needs into account. This might mean artificially slowing the company’s growth during homecoming or baseball season, but that’s all right. Entrepreneurially-minded kids need early and repeated lessons in work-life balance, which can start right here. 

6. Be Ready for Taxes

Like with your local business regulations, the IRS and your state Department of Revenue won’t much care about a kid making a few bucks, but if your teen has self-employment income of at least $400 from their own business, they’re responsible to report it and potentially pay taxes. If they earn enough money, it can even interfere with their status as a claimable dependent. 

Talk to your accountant about this, and set up a plan for dealing with that part of your teen’s entrepreneurial journey. If they become small-business owners for life, taxes will be their constant companion over the course of their career. 

Although companies like H&R Block and TurboTax offer online corporate, small-business, and self-employment filing options, it’s often worth it to hire a CPA to do business taxes. If you keep your books organized, the amount they charge for the service is reliably lower than the deductions they help you find. 

7. Remember Community Resources

Almost every city, county, state, and special interest organization has some sort of resources for small-business owners. These may include in-person education, online classes, grants and loans, mentorship access, or work spaces filled with expensive, specialized tools. They’re out there, often paid for with your tax dollars, waiting to be used.

Not all such opportunities are open to teens, but in many cases the staff will be excited about somebody getting involved so young and become even more enthusiastic about contributing success tips. LinkedIn and local meetups can be good sources for mentoring and success tips, as long as you monitor and curate the adults your child meets. Encourage your teen to check into these opportunities in the community.

When seeking resources and help, don’t forget your child is still in school. Many schools have business classes, workshops, technical equipment, social media advice, and experts on hand any student can access for help with projects. Many teachers and counselors will be eager to help, especially those with business knowledge or experience they rarely access on the average school day. 

8. Begin With the Goal In Mind

This advice from business management legend Steven Covey is a classic for a reason. Whatever business model your teen decides to pursue, they should begin the journey thinking about how they want it to end, with clearly defined goals set from the beginning. 

Starting a new business to earn money for a car requires one set of circumstances, warrants a certain amount of time and financial investment, and has a lifespan of a set number of weeks or months. Starting the same new business as something your teen might want to make into a career changes every one of those aspects. 

There is no right or wrong goal here, but starting without one in mind is almost always a mistake. Even the best business in the world can falter and fail without a strong guiding goal.

Sit with your budding entrepreneur early in the process and ask what they hope to accomplish. “Making a few bucks” is a fine goal, but nail down specifics. That top-level goal can help them assign priorities, make wise purchases, and set up timelines for tasks in ways they would not otherwise. 

9. Teach Them How to Set Goals — Then Apply Them

Knowing how to set goals isn’t just important for small-business success. It will help your child succeed in whatever endeavors they take on at school, in college, and beyond. 

It’s easy to start with a smaller goal — something that will take multiple days of effort but which will absolutely happen if the child does their part. 

For example, saving enough money for a $20 video game is a good initial goal. They set a goal of earning $1 per day for a month, with up to 11 days off. As long as they achieve their daily targets, they’ll be able to get the game. Winning the lottery is a bad initial goal because even if they succeed at buying a ticket every week, there’s no guarantee of winning. 

Tying cash flow to realistic goal setting introduces them to the concept of setting goals and attaining them. Whether or not this small business works out, the experience of working toward a concrete goal and its inherent lesson will serve your young entrepreneur well for the rest of their life.

Teach your young entrepreneur to write down their goals and commit to a timeline for completion. When they reach the end of their timeline, assess with them how they did. If they didn’t reach their goal, what might they do differently next time? If they did, what might they do to succeed even more or faster? As they establish a track record of success and understanding, move to loftier, more complex, and less guaranteed goals. 

10. Model Smart Risk-Taking

A business is only successful if its key decision-makers are willing to take risks, and if most of those risks work out. Taking risks may seem like a natural part of childhood, but when you add money and parental approval, suddenly those risks feel much more intimidating. 

The best way to help your child overcome this challenge is to live by example. Demonstrate taking small and large risks in everyday life. Better yet, talk with your child about those risks. Discuss what made them risky, how you analyzed the dangers and benefits, what you gained from the gamble, and especially what you did to minimize the impact if the risk didn’t work out. 

Once you’ve made a habit of having that talk with your child, you can use it as a framework for assessing the risks associated with their business. This doesn’t just help their business succeed, but helps them practice and master a vital life skill.

11. Foster Creativity

Creativity is a skill. Like all other skills, it gets better with practice and fades if not used. 

Creativity is also essential to small-business success, and success in the business world overall. It’s how your child will come up with a working business model, how they will expand on their idea to help the business grow, and how they will devise solutions to the problems and challenges they encounter. 

Some ways to help build that creativity in your child include:

  • Make up stories together instead of reading them at some bedtimes
  • Play pretend games with your child, ranging from make-believe to more structured activities like Dungeons & Dragons or theater sports
  • Set aside art time and craft time, where your child plays creatively
  • Get out of the habit of simply answering questions or solving problems, but instead create the habit of exploring answers together
  • Play “what if” games, where your child explores the possibilities of simple changes to life or the world around them
  • Set up time for your child to get bored, then let them find new ways to fill that time

Most importantly, resist the temptation to come swiftly to the rescue when your child encounters a challenge. As long as it’s safe, let them find their own creative solutions. If you always swoop in to save the day, they never learn to develop their own creative problem-solving. Instead, they look to others for help — a habit that is absolutely lethal to entrepreneurial success.

12. Show Them How to Ask For Help

One of the ways schools often hurt our children is by how often they insist kids work on their own. Asking a classmate for clarification is punished as being disruptive in class. Looking up a tutorial to help with your homework can be considered cheating. Although this is sometimes necessary within the context of school, a small-business owner can always ask for help. 

Model finding help so your kids can see you asking your parents or partner, polling social media groups, calling an expert with applicable know-how, or looking for an instructional video on YouTube. Make this normal and encouraged — a tool you use to succeed at your goals just like any other resource. Knowing who to ask for help and how is a key success factor in any form of entrepreneurship.

When your kid is comfortable asking for help, show them some of the best ways to do it. Explore online tutorials and free trainings, and look for resources at the library, Chamber of Commerce, and local small-business authorities. Share audiobooks and podcasts together while running errands or on road trips. 

Teach your kids early and often how much help is out there, where to find it, and how to tell the good advice from the bad. 

13. Reward Failure Whenever You Can

World-famous Brazilian jiujitsu competitor Rickson Gracie writes in his memoir that at his first jiujitsu match, his father said to him, “Win and I will give you a present. Lose and I will give you two presents.”

It’s a little transactional to be appropriate for most kids, but the spirit is solid. 

Children — and adults — who are afraid of failure often can’t make the decisions necessary to succeed in business. So embrace failure when your children lose a game, make a mistake, or fall short of a goal. 

Your children will probably fail the first time they try something, because most people do. Nobody is born with everything you need to succeed on the first attempt. 

Congratulate them for having tried, and share honestly the ways they made you proud. Talk about what variables they controlled they could change the next time they try, and what they might do to minimize what they can’t control or change. 

Most importantly, share that it’s okay to be disappointed in the outcome, but that you will never be disappointed in them as a person. The short-term pain of trying and failing leads to the long-term gain of succeeding at something hard. 

14. Make Them Find a Way

Rob Kiyosaki, author of “Rich Dad, Poor Dad,” tells a story about how he was given a job as a child that paid nothing. His friend’s father, who gave him that job, instead challenged him to find a way to make money with what he learned from that work. 

The work in question was cleaning up in a convenience store. Young Rob found a loophole in how comic books were distributed, and used it to create a comic book rental operation in his parents’ basement. 

That’s not to say you should be that extreme in your approach to training your child to solve problems and find business opportunities. But you can foster more independence and creativity by backing off a little more than you’re comfortable with when they ask for help. Make them identify the problem decisively and find their own solutions, then reward them for the effort even if the solution they try doesn’t work. 

Necessity is the mother of invention, so help your child experience necessity more often and see what they invent. Whether the finished product becomes a full-time adult income or just some after school pocket money, the lessons they learn will last. 

15. Don’t Let Them Cut Corners

Attention to detail and a willingness to work hard are two of the most important traits of a successful entrepreneur. Without micromanaging, watch how they approach the work of their business and help them see the value in doing it right from the beginning. 

This can sometimes lead to friction. Kids and teens are not always known for either of those characteristics. That’s okay. If you work through it well, you’ve accomplished two goals. The first is helping your child succeed with their business by pushing them to deliver quality for themselves and their customers. 

The second is even more important. Once they see the results of the extra effort, they begin to internalize its importance. That lesson will carry past the business into their academics, athletics, and relationships. It will set them up for success no matter where they go in their adult lives. 


Final Word

Whether your child is destined to make $1 million by age 18 or to fondly remember a summer they spent working for themselves, they can benefit from what starting a small-business teaches. 

Your role in this isn’t to do it for them, or to stand in their way, but to balance between the two. Lend enough support to allow them to flourish, but keep your hands off enough that they can truly say they accomplished the most important parts by themselves. That’s not just how you set up young entrepreneurs to succeed — it’s how you raise happy, empowered children.

Always remember: keep it light and fun. The goal here is not to raise the next Steve Jobs or see your kid on the cover of Forbes before they’re old enough to drive. It’s to teach them valuable life lessons they can apply to a new business, online business, or simply going to work. 

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Source: moneycrashers.com