Now, Qatar Airways Privilege Club members can earn Avios without flying and also snag a fast track to elite status, thanks to the release of two new credit cards, issued by Cardless, a fintech company.
The Qatar Airways Privilege Club Visa Infinite Credit Card.
The Qatar Airways Privilege Club Visa Signature Credit Card.
Applications for the cards go live on May 7, 2024. Here’s what to expect.
How the new Qatar Airways credit cards stack up
Qatar Airways Privilege Club Visa Infinite Credit Card
Qatar Airways Privilege Club Visa Signature Credit Card
Annual fee
Sign-up bonus
Earn 50,000 Avios, including 25,000 Avios after the first transaction and 25,000 Avios after spending $5,000 in the first 90 days.
Earn 40,000 Avios, including 20,000 Avios after the first transaction and 20,000 Avios after spending $3,000 in the first 90 days.
Loyalty program points
Earn 150 Qpoints after spending $5,000 in the first 90 days.
Earn 2 Qpoints for every $1,500 spent on qualifying purchases.
Earn 2 Qpoints for every $2,000 spent on qualifying purchases.
Earnings rates
5 Avios per $1 spent on Qatar Airways.
3 Avios per $1 spent at restaurants.
1 Avios per $1 spent on all other qualifying purchases.
4 Avios per $1 spent on Qatar Airways.
2 Avios per $1 spent at restaurants.
1 Avios per $1 spent on all other qualifying purchases.
Other perks
One year of Gold elite status with the Qatar Airways Privilege Club.
One year of Silver elite status with the Qatar Airways Privilege Club.
🤓Nerdy Tip
Prospective card applicants were able to join a waitlist in mid-April. If you joined that waitlist and apply within 30 days of the card applications going live, you’ll be eligible for an additional 5,000 bonus Avios on the Qatar Airways Privilege Club Visa Signature Credit Card or 10,000 bonus Avios on the Qatar Airways Privilege Club Visa Infinite Credit Card. These are in addition to the sign-up bonuses available to all applicants.
Elite status and benefits
The one year of automatic elite status with each card has no spending requirement. Additional Qpoints earned by spending on the card can help members qualify for status in subsequent years.
Benefits of the Gold status earned with the Qatar Airways Privilege Club Visa Infinite Credit Card include a 75% tier bonus on earning Avios with eligible flights; priority check-in and boarding; complimentary lounge access and four guest lounge passes every year; a free extra baggage allowance; and complimentary preferred seat selection. Gold elite members will also receive all the benefits of Oneworld Sapphire tier elite status and collect Avios while flying on Oneworld member airlines.
Benefits of the Silver status earned with the Qatar Airways Privilege Club Visa Signature Credit Card include a 25% tier bonus on earning Avios with eligible flights; priority check-in and boarding; complimentary lounge access and two guest lounge passes every year; an extra baggage allowance; and 20% savings on preferred seat selection. Silver elite members will also receive all the benefits of Oneworld Ruby tier elite status and collect Avios while flying on Oneworld member airlines.
Get a card that takes you farther
Sign up with NerdWallet to get a full picture of your spending and personalized recommendations for cards that will help you see the world.
The power of Avios
Avios points earned on these cards can be redeemed for flights with Qatar Airways, but also Oneworld Alliance airlines such as Alaska Airlines and British Airways, as well as partner airlines, including JetBlue Airways. The rewards can also be transferred to other Avios-based rewards programs, such as British Airways and Iberia Airlines. That transfer ability and access to partner airlines make Avios extremely valuable for optimizers who don’t mind learning how to maximize the value of their rewards.
Should you get a Qatar Airways card?
Unless you’re a frequent flyer with Qatar Airways and you really value elite status, there are easier and more flexible ways to earn Avios. For example, the Chase Sapphire Preferred® Card earns Chase Ultimate Rewards® that can be transferred to a variety of Avios-based rewards programs, including the British Airways Executive Club, Aer Lingus AerClub and Iberia Plus. These programs all give you access to the Oneworld Alliance award chart, including Qatar Airways. New cardholders can also qualify for a bigger introductory offer: Earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s over $900 when you redeem through Chase Travelâ„ .
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:
Explore car buying in 2024, from Carvana’s process to the electric vehicle surge and how to maximize your car’s sale value.
Budgets Beyond the Numbers: How do you manage the emotional aspects of budgeting? What’s the car buying market like in 2024? Hosts Sean Pyles and Elizabeth Ayoola discuss personal budgeting and the future of car buying to help you understand how to navigate financial decisions with confidence. They begin with a discussion of budgeting “beyond the numbers,” with tips and tricks on categorizing expenses into their emotional impacts to make budgeting feel more personal.
Today’s Money Question: Is Carvana a good service? Should you buy an electric vehicle if you’re in the market for a new car? NerdWallet autos writer Shannon Bradley joins hosts Sean Pyles and Sara Rathner to delve deeper into the future of car purchases and the electric vehicle revolution. They explore the evolution of electric vehicles, the current state of the car market for both buyers and sellers, and strategies to get the best deal when selling your vehicle. The conversation aims to provide insights on choosing the right time to buy an electric car, understanding the market dynamics, and ensuring a smooth car selling experience.
Check out this episode on your favorite podcast platform, including:
NerdWallet stories related to this episode:
Episode transcript
This transcript was generated from podcast audio by an AI tool.
Sean Pyles:
What’s in a budget? If you look at the 50/30/20 budget, you have your needs, wants along with extra debt payments and savings. But we all know a budget can be much more than that. We get into it this episode. Welcome to NerdWallet’s Smart Money Podcast, where we help you make smarter financial decisions, one money question at a time. I’m Sean Pyles.
Elizabeth Ayoola:
And I’m Elizabeth Ayoola.
Sean Pyles:
This episode we answer a couple listeners’ questions about car buying and selling, including what to know about the electric car market right now. But first, we’re exploring what’s really in a budget beyond the numbers and Elizabeth, this is something that you are especially interested in, right?
Elizabeth Ayoola:
I am, Sean, because budgeting gets a bad rep, but it can be fun too, especially when you have something you really want and are working towards, but it can be equally stressful. I’m not going to deny that.
Sean Pyles:
Totally. When people hear the word budget, they might just think about numbers in a spreadsheet or about restricting themselves from purchasing something that they want. Neither is really fun. And don’t get us wrong, we are still big proponents of having a budget and we think the 50/30/20 budget, where you have half of your income going towards needs, 30% going towards wants and 20% going towards extra debt, payments and savings, can be a really accessible and flexible framework for most people, but it doesn’t get to the more personal parts of our finances. So Elizabeth, you like getting into those deeper parts of a budget and you do this by breaking it into three general categories: something stressful, something exciting, and something confusing. Can you talk about why you are thinking about your budget in this way and what’s the purpose of each category?
Elizabeth Ayoola:
So I feel like by doing this, it gives our budget some personality, it creates some interesting conversation around our budgets. I think we all know that budgets can be monotonous, so breaking it up like this helps me stay engaged with my budget and also have something to feel excited about. You know what I’m saying, Sean? So the confusing one especially is a chance for me to challenge myself to untangle areas of my budget where I’m winging it or I’m just disorganized and usually I’m winging it or disorganized because I’m overwhelmed and don’t understand something.
Sean Pyles:
This reminds me of a game that I sometimes play with my friends called Rose, Thorn, and Bud. The rose is something good that happened to you, the thorn is as you might expect, something that’s a little bit thornier or unpleasant and the bud is something that is in progress or something that you are excited about. This is kind of like that, but for your finances, it’s a way to categorize items of your budget under broader themes, which can help you process them in that more personal and emotional way. Is that how you think about it too?
Elizabeth Ayoola:
Exactly. You just put it in a fancy way. Thank you, Sean.
Sean Pyles:
Thank you.
Elizabeth Ayoola:
And I also have a new game that I’m playing with my friends because I’m stealing your idea.
Sean Pyles:
Happy to hear it.
Elizabeth Ayoola:
As of recent, I’ve been asking them when I go on girlfriend dates, what’s one thing they hope happens this year? But I’m definitely going to swap it out for your idea.
Sean Pyles:
Oh, I love that. Well, to help our listeners understand this way of thinking about budgeting, Elizabeth, I would love to hear what you are finding stressful, exciting, and confusing in your budget right now?
Elizabeth Ayoola:
As a recovering over sharer, I am definitely going to share that. So let’s start with stressful. Start with the worst, a moving budget. So just please anybody rescue me on a red carpet and make sure you bring a margarita with you because moving is stressing me out. I’m trying to make the move as cost-effective as possible because it’s looking like I’m going to spend a couple of thousand dollars right now and that’s really hurting my feelings.
Sean Pyles:
Yeah, it’s a lot of money.
Elizabeth Ayoola:
So now let’s get into the exciting thing, a love sack. I don’t know if any of our listeners or you, Sean, have heard of love sacks before, but they’re essentially these giant beanbags and in my fantasy of living out the Bohemian dream in my household, I have something like a love sack where I can read books and watch Netflix and do whatever else I want to do on it. So I’ve wanted one for years, but they are pretty pricey. They can start around the $900 range and go up to a thousand dollars, but I am budgeting for that and I’m looking forward to it. The only thing I’m worried about is my son putting his Cheeto hands all over my stuff.
Sean Pyles:
That’s a fair concern. Also, you might want to wait to get that until after you’re moved because that would be just one other thing to haul across state lines.
Elizabeth Ayoola:
Oh fact, I’m definitely not buying that now, so I’m going to buy it once I move. So it’s also giving me more time to save towards it or to budget for it. Another exciting thing I’m also budgeting for is to go to Nigeria. So I am Nigerian for the listeners and I haven’t been since I had my son maybe like four or five years ago, and he’s been asking me to go. That’s kind of what inspired the trip, but it does cost a couple of thousand dollars, so I’m budgeting towards that as well, but excited. And lastly, what is confusing? Balancing business and personal budgets at the same time is very confusing for me right now.
So I’m trying to kind of figure out how much to put towards retirement saving because my expenses just keep changing and I’m also trying to ensure that I don’t commingle, which is when you’re mixing kind of your business finances with your personal because we don’t want the IRS to come knocking. So all these kind of things are just confusing and maybe a little bit stressful as well. Then lastly, my son is going to a private school in August, so my budget is going to change. I’m trying not to be hard on myself because I really like saving big chunks of money and him going to private school might mean I have to save less, but it’s all good.
Sean Pyles:
See, I feel like this really shows how your budget is being enacted to help you meet the short and long-term life goals that we talk about so much on Smart Money and also the various emotions that come with meeting your goals or trying to meet them and the compromises that are just inherent in this conversation you have with yourself and your finances. Also, Elizabeth, last week you said that you were financially boring, and I’m going to say that all of these things are interesting. I’m especially excited about your trip to Nigeria, so let me know how that goes. And also let me know where you land on your savings when your son starts private school.
Elizabeth Ayoola:
Of course, I’m going to share that with you guys, so watch out for that. It has been so long since we’ve been to Nigeria, so we’re looking forward to it. And private school, well all the listeners with kids know that kids swallow up your dollars, but I hope to get a good return on investment on this. So what are yours, Sean? Tell me about your things that are stressful, exciting, confusing.
Sean Pyles:
Okay, well this is where I reveal that I am actually boring. Something stressful is that I’m in the middle of a season of travel right now, which is not boring. It’s very exciting actually. But I went down to San Francisco for a concert a couple of weeks back and I’m about to fly out to the East coast to see some friends in New York and DC and it’s going to be great to see these friends and it was great to see San Francisco again where I lived for many years, but boy, oh boy, traveling is very expensive. It’s much more expensive than working from home day in day out and the adjustment from making my breakfast every morning and having my coffee and a nice little ritual for myself, going from that to spending $20 on the sandwich and a coffee every single morning is a little bit painful and a little bit stressful for my budget, but I’ll make it work.
And then something exciting, this might be a little bit premature because it’s not actually going to happen for nine months, but I’m getting relatively close to paying off my car. I’ve had this car loan since 2020 and I know I took a longer car loan than we typically recommend, but that’s just where my finances were at the time. And I’m kind of lucky to have a pretty affordable car payment. But I am also very excited about having that extra $350 that I pay for my car each month back in my budget, even though I will likely direct most of that into my car savings bucket. Confusing? To be honest, nothing is too confusing for me right now fortunately, but as ever, I am in this continual dialogue with myself and my ADHD impulses that tell me to buy random things that I sincerely do not need. And what’s helped me recently to shake myself from buying things online is just asking what do I expect this thing to do for me? And the answer is usually nothing meaningful. So that helps me break the spell.
Elizabeth Ayoola:
Oh, I love that. And I can relate with you re ADHD. I think in a previous episode I told y’all that I was emotional buying and I’m so glad to update y’all that that has stopped.
Sean Pyles:
Oh, congratulations.
Elizabeth Ayoola:
Thank you. No more random Zara shops every other week. So I’ve been doing pretty good and I can understand what you’re saying, re travel because I have lots of upcoming trips as well and it’s so expensive. But Sean, I’m excited about the car. $350 a month sounds really good to do something else with. And that’s about how much my payment is too. So I’m going to tap into your excitement and hopefully I will be there next year.
Sean Pyles:
Manifesting that for us, yes. Well listener, I hope this exercise has helped you think about your own budget in a new way. Before we get into this episode’s money question segment, let’s check in on our nerdy question of the month, which is what is your weird money habit, behavior, or principle that you live by?
Elizabeth Ayoola:
Here’s one weird money habit that a listener texted us. I just listened to your podcast of a person with dozens of credit cards. I’m one of those individuals too. To be clear though, the only balances I carry are those on temporary 0% promo offers and ones that are paid off monthly. My system is to carry five to six cards in my wallet and rotate them, then return those cards to the bottom of my home credit card stack. Another side gig hobby I do is entering sweepstakes online daily. It’s an easy but exciting activity that can lead to surprise winnings at any given time. My biggest win to date is $24,000 minus taxes, of course. That’s a large chunk of cash.
Sean Pyles:
Oh, that’s an interesting one. Thanks for sharing that. So listener, let us know: what is your weird money habit? Do you only use cash for all of your transactions or are you a hardcore credit card point maximizer?
Elizabeth Ayoola:
Or maybe you have 10 billion bank accounts like Sean. Okay, he just has 10. It’s not 10 billion, it’s just 10.
Sean Pyles:
I didn’t really think that was weird until recently. I was talking with a friend who was considering getting her very first high yield savings account, and she looked at me like I had two heads when I mentioned that I have 10 accounts. So maybe that’s also a good way to think about this. What is something that you do with your finances that seems maybe totally normal to you, but everyone else around you thinks is a little bit off? We want to know.
Elizabeth Ayoola:
Yes, we do. So tell us your weird money habit by texting us or leaving a voicemail on the Nerd hotline at (901) 730-6373. That’s (901) 730-N-E-R-D. Or you can email us a voice memo at [email protected].
Sean Pyles:
And while you’re at it, send us your money questions too. We know how confusing money can be and we want to help you make smarter financial decisions. And a quick reminder that we are running another book giveaway sweepstakes ahead of our Nerdy Book Club episode.
Elizabeth Ayoola:
Our next club guest is Jake Cousineau, author of How to Adult: Personal Finance for the Real World. The book offers tips to young people on how to get started with managing their money.
Sean Pyles:
To enter for a chance to win our book giveaway, send an email to [email protected] with the subject ‘book sweepstakes’ during the sweepstakes period. Entries must be received by 1159 P.M. Pacific Time on May 17th. Include the following information: your first and last name, email address, zip code, and phone number. For more information, please visit our official sweepstakes rules page. All right, now let’s get into this episode’s money question segment with our co-host, Sara Rathner, after a quick break, stay with us.
We’re back and answering your money questions to help you make smarter financial decisions. This episode we’re taking on a couple questions about cars, how to buy and sell them, and how electric vehicles fit in. And we’re joined by NerdWallet autos writer Shannon Bradley to help us navigate the winding roads of car buying in 2024. Shannon, welcome back to Smart Money.
Shannon Bradley:
Thanks for having me back. Let’s get to the first listener’s question. This comes from a voicemail.
Listener Voicemail:
Hello. The reason I’m calling is we were wondering what do you think about the company Carvana? We’re thinking about selling our vehicle to them because if we maybe try to sell it at a car dealership or something, we’re not really thinking that we’re going to get a good deal for it. But we don’t know as far as us selling a vehicle to them, not us purchasing one from them, if they’re reputable with regards to that. We’ve never used them.
Sean Pyles:
So Shannon, can you start by giving us a quick explanation of how Carvana works?
Shannon Bradley:
Yeah. Carvana is an online only car retailer and they sell and buy used cars only. They also take trade-ins. And based upon the listener’s question, I think the most important thing is that you can request an offer for your car right on the Carvana website as long as it’s a 1992 model or newer. And it’s a pretty simple process. They’re going to ask you for your 17 digit vehicle identification number, more commonly known as your VIN, or your license plate number. They’re going to ask you for mileage, the vehicle condition, vehicle options, and then if you have a loan or a lease on the car, they’ll ask you for information about that too.
Sara Rathner:
So other than Carvana’s iconic car vending machines that you see dotting the landscape in different cities, what makes it different from going to a dealership or to CarMax?
Shannon Bradley:
Well, let’s talk about CarMax first. CarMax is an online retailer too, and they’re very similar to Carvana. I think one of the biggest differences when you sell your car between the two is how you get your car to the retailer. With Carvana, you can finalize the entire sale remotely. They will come to your house, they’ll pick up your car, do the inspection there. You do have to be within one of their service areas, and there could be a small fee depending upon how far you are from their hub. CarMax, on the other hand, they offer pickup, but only at limited locations in four states.
So more than likely you’re going to have to take your car to a CarMax store for inspection. And depending upon where you live, that could be quite a distance. So if you compare these types of online retailers to a dealership, I think two of the biggest differences are convenience and being able to negotiate what’s offered for your car. Again, with Carvana, you can potentially complete the entire process of selling your car right from your home, but when you get an offer from Carvana or CarMax, it’s not negotiable. Whereas if you sell to a dealership, you can attempt to negotiate that offer.
Sean Pyles:
So car buying and selling is a notoriously frustrating process. Are there any common complaints about how Carvana handles this process that maybe are distinct from other ways of buying and selling a car?
Shannon Bradley:
On the selling side, I’m not aware of too many complaints. In fact, it was kind of funny, over the weekend I had a friend on Facebook ask this very question, and so I was monitoring responses of people and they were saying that it was a fast and easy process to sell their car to Carvana. On the buying side, I think the thing is, you have to remember that when you buy a car from Carvana, you can’t test drive it, you can’t inspect it. And on occasion, I’ve heard of people receiving a car that they didn’t feel really matched what was represented online. But I think the thing to keep in mind there is that Carvana offers a seven-day money-back guarantee with a limit of 400 miles. So when you get your car, just take that time to really test drive it and get a very thorough inspection done.
Sean Pyles:
So people go with Carvana because it seems like a really easy way to buy or sell a car and you can potentially just have the car dropped off at your front door. But that doesn’t mean that you still don’t have to do your due diligence and then get that inspection to make sure the car is as good as they are telling you it is.
Shannon Bradley:
Yes, exactly. They will allow you to, I think return up to three vehicles. There is some leeway there. And then the other thing that I was just going to mention, because I think a lot of people have heard about this because there was a lot of media coverage about it. This was in late 2022, early 2023, there was an issue with Carvana buyers. They would buy a car, they didn’t get their title in a timely manner, and so they couldn’t even register and drive the cars. And that’s something that our autos team has been monitoring. It doesn’t seem to be the issue that it has a year ago, but we still recommend for people to ask for proof of title. It’s just given that there were issues a year and a half ago, it’s just not a bad idea to do that.
Sara Rathner:
So our listener, like so many others, is interested in getting a good deal when selling their car. Do we know if places like Carvana offer better or worse deals than other places where you can sell your car?
Shannon Bradley:
Well, when you compare Carvana to CarMax, I’d say that’s kind of a toss-up. I think a lot depends on the vehicle you’re selling. Is it one that the retailer needs in their inventory at that time? And if it is, they may be more inclined to make you a better offer, but that’s why it’s so important to get more than one offer. And then you asked about dealerships. Traditionally you can get more selling your car to an individual, but of course that’s not going to be as easy as selling to someone who’s going to come right to your door and pick it up or even being able to go to the dealership down the road, but dealerships, their offers tend to be the lowest. But again, it depends on the car that you’re selling. Right now we’re seeing that both new and used cars are low inventory for Toyota. So if you have a type of car that a dealer is really needing on their lot, you may be able to negotiate a better deal.
Sean Pyles:
So the car market has been on a wild ride over the past few years, really since the pandemic began. So what is the car market looking like right now both for buyers and sellers?
Shannon Bradley:
Well, I would say wild ride is kind of an understatement. As someone who’s been covering the car market for the last three years, it has been a wild ride. It is not back to where it was before the pandemic. But from a car buyer aspect, several things are improving. For one, inventory is returning to normal. And actually you have some auto manufacturers who have overshot and are overstocked and those particular manufacturers, they’re starting to offer incentives again. We’re hearing you may be able to negotiate below the manufacturer’s suggested retail price, which was really unheard of during the pandemic. And then on the downside, we all know how vehicle prices are still high. I think actually this morning I saw that the average transaction price for a new vehicle is still at $47,000. That’s not small change by any means.
Sean Pyles:
No, it’s a lot of money.
Shannon Bradley:
But you can find deals out there, especially if you’re flexible about what you’re buying. And then leasing has some good deals. And if you buy or lease an EV right now, you could qualify for the federal tax credit of up to $7,500 on top of the other incentives that are out there.
Sara Rathner:
So how about sellers in the current climate? How are things looking for people who are selling their car right now?
Shannon Bradley:
Well, I would say they’re not faring quite as well as the buyers. Depends on what you’re selling, but if you recall, during the pandemic the vehicle shortage meant that individuals were actually selling their cars for a lot more than they paid for them. And with car supplies returning to normal for most manufacturers, selling isn’t what it was during the pandemic. You shouldn’t anticipate a huge profit like we were seeing in the past several years, but you should expect to receive a fair price and you can do that by researching the current market value of your car.
Sean Pyles:
So how can people get the most money for their vehicle?
Shannon Bradley:
Well, I go back to research. Research is key. If I was selling my car right now, I definitely wouldn’t put all of my eggs in one basket. If you get only one offer, which is something a lot of people do, they just don’t want to take the time to get more than one offer, you won’t ever know if there was a better offer out there. And the thing is, nowadays, it’s easy to do your research. You have online pricing guides where you can find estimates like Edmunds or Kelley Blue Book. And as we’ve been discussing, you can request actual offers from sites like Carvana, CarMax or TrueCar. And there’s not any cost or obligation to do that. Something we recently launched at NerdWallet, we can also make an offer on your car. We now have NerdWallet Automotive and you can find that when you Google NerdWallet buy my car.
Sean Pyles:
Alrighty. Well now let’s turn to the next question, which comes from a listener’s text message. They wrote, what is the fuel of the future? I’ve been researching about buying a new car and they’re saying that cars in the future are going to be electric, but if there’s a new fuel of the future, should I just wait until the new fuel comes out or just buy an electric car now? So Shannon, if you don’t mind, please bring out your crystal ball or industry research and tell us is there a new fuel of the future or does it seem like electric vehicles are the automotive energy of the coming years?
Shannon Bradley:
Well, we’re hearing a lot about research of different alternative fuels like natural gas, propane, or hydrogen fuel cells, which is really just another way of generating electricity. But these are all really in their early stages of development and adoption. So while I think development of various ways to lower vehicle emissions will definitely continue, my crystal ball says that in the near future, the emphasis will still be on EVs.
Sara Rathner:
And is that because EVs have just been around longer and have an advantage in the market over these other fuel types?
Shannon Bradley:
Yes, Sarah, it is. Many people don’t realize that the first electric vehicles were actually introduced in the late 1800s, then they kind of fell by the wayside and interest renewed in the 1970s. So it’s actually taken a long time for us to reach a point where electricity is accepted as a fuel source as it’s becoming today. According to Kelley Blue Book, EVs represent the fastest growing car sales category, and last year nearly 1.2 million U.S. vehicle buyers went electric. We don’t expect that pace to slow down with federal and state legislation as well as so many car makers devoting many resources to the transition to EVs. I just don’t see a quick pivot to other fuel sources that are going to take more time to build that infrastructure and to build that adoption rate.
Sean Pyles:
So the EV market has been developing rapidly over the past few years, but many anxieties that would-be buyers might have around electric vehicles like range, affordability, finding chargers are pretty persistent. Have any of these issues gotten better?
Shannon Bradley:
They have gotten better. For comparison, before 2016, when you’re looking at range, the median range of a new EV was below 100 miles and the top performing option couldn’t travel 300 miles without a charge. Today you can buy an EV that has a 250-mile range for less than $40,000 and the high-end models can have a range of more than 400 miles per charge. When you’re talking about the charging infrastructure, that’s improving too. We now have about 60,000 charging stations across the country, and that’s more than twice the number that we had five years ago. And there are a lot of incentives out there to help with installing home chargers, like from some auto manufacturers or your local electric company.
Sara Rathner:
What about the price of these cars? EVs are generally more expensive than gas powered cars. Is this changing?
Shannon Bradley:
That’s improving too. I think the Tesla price drops have driven other car makers to follow suit. There are a lot of EV incentives out there to help reduce the cost. As I said earlier, you could qualify for the federal tax credit of up to $7,500 and that can usually be stacked with other incentives from car manufacturers, state and local government and electric companies. The U.S. Department of Energy actually has a site, you can find it by searching alternative fuels U.S. Department of Energy, that has a database where you can research all of the various incentives that are available. Late last year, I talked to someone who was an EV buyer in California and he used multiple incentives to knock $8,000 off the price of a Chevy Bolt. And then right now there are a lot of EV leasing deals, and that’s a great option if you’re someone who just isn’t sure that you want to go ahead and buy an EV right now.
Sean Pyles:
Okay. So Shannon, I have to ask you, as a consumer and also someone who writes about this stuff a lot, how are you thinking about electric vehicles? Have you made the jump or are you planning to?
Shannon Bradley:
I haven’t made the leap yet, but it isn’t because I don’t want one. I’m pretty frugal with my money and I bought a gas-powered car right before the pandemic, so I was able to buy it before car prices skyrocketed. And I’m in a fortunate position right now where I’m no longer supporting children. I was receiving, like everyone, stimulus funds during COVID, so I was able to pay down that car and I actually don’t have a car payment right now. I am environmentally conscious. So I think that eventually I will buy or lease an EV, but for right now, I’m enjoying taking a vacation from car payments and putting that money into my retirement savings.
Sean Pyles:
Well, that does sound like a very smart financial decision. I’ll say that. Well, Shannon, thank you so much for joining us on Smart Money.
Shannon Bradley:
Well, thanks for having me.
Sean Pyles:
And that is all we have for this episode. Remember, listener, we are here for you and your money questions. So if you have anything that you want the Nerds to help you out with, call us or text us on the Nerd hotline at (901) 730-6373. That’s (901) 730-N-E-R-D. You can also email us at [email protected]. Also visit nerdwallet.com/podcast for more info on this episode. And remember to follow, rate and review us wherever you’re getting this podcast. This episode was produced by Tess Vigeland who also helped with editing. Sara Brink mixed our audio. And a big thank you to NerdWallet’s editors for all their help.
Sara Rathner:
And here’s our brief disclaimer, we’re not financial or investment advisors. The nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
Sean Pyles:
And with that said, until next time, turn to the Nerds.
The National Association for the Self-Employed’s membership has grown dramatically over the last few years, says Keith Hall, the group’s president and CEO. And while that growth has slowed since its COVID-era peak in 2022, he thinks flexible work is here to stay.
The boom in self-employment started when “a lot of people had to do it because of COVID. They didn’t choose to do it; they had to do it,” Hall says. “Many others saw and learned and read that you can do this. You don’t need to be tied to the desk in corporate America.”
Below is NerdWallet’s 2024 list of the 10 best U.S. metro areas for freelancers and the self-employed. Our analysis used recent metro-area data from the U.S. Census Bureau and state-level data from the Tax Foundation. The top metro areas are those where a significant percentage of the workforce is self-employed already, rent is relatively affordable, unemployment is low, worker mobility is high and state income taxes are relatively low.
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Key findings
Of our top 10 cities, Bridgeport-Stamford-Danbury, Connecticut, and North Port-Bradenton-Sarasota, Florida, have the largest percentages of the workforce that are already self-employed (8.5% and 8.2%, respectively). The median of all metro areas in our dataset is 5.3%.
Housing affordability continues to benefit communities like Chattanooga and Knoxville, Tennessee; Lancaster, Pennsylvania; and Portland, Maine — all places in which more than half of renters spend less than 30% of their income on rent.
Tennessee, Florida and Texas all have no state income tax, which can keep a portion of income in self-employed workers’ pockets. That said, “It’s rare when I personally hear an individual relocating states just because of the tax code,” Hall says.
Columbus, Ohio, was boosted by a significant increase in the number of people moving to the city for work between the end of 2022 and the beginning of 2023. While those people weren’t necessarily freelancers, we use this data point to better understand economic vibrancy.
Identify your self-employment goals when considering a move
What might self-employment look like for you? That depends on what you hope to get out of it.
1. Desired industry
Though some industries have shifted broadly toward remote work, others still benefit from proximity.
Brian Rood, a certified financial planner and owner of Artisan Financial Planning, knows that firsthand: He spent 27 years playing trumpet in the Kansas City Symphony before shifting to financial planning and now works primarily with artists.
In highly specialized fields like the performing arts, “you really do go where the work is,” Rood says. That might mean an industry-specific location, like New York or Los Angeles, or a small city where you landed an orchestra job and then built a network of students and professional contacts.
Seth Hodes, co-founder and managing partner at Able Wealth Management, also works primarily with artists and creatives. He says his clients often move from creative agencies to tech companies to freelance portfolios and then back again based on what opportunities arise. Living in regions that have active job markets and lots of opportunities in their industries helps facilitate such mobility.
“The artist freelancer has always been adaptable,” Hodes says. “It’s a grind out there — you’re going to have to survive and work up a certain kind of cultural capital.”
2. Financial goals
Self-employed workers typically need to set aside 25% to 30% of their income for tax payments.
Next, Rood adapts the 50/30/20 budget to each client; the budget is a framework that recommends spending 50% of your income on expenses, 30% on “wants” and 20% on savings. “It’s a little high on the first parts and a little low on the savings,” he says, but it’s a useful jumping-off point.
Rood encourages self-employed clients to have a larger-than-average emergency fund. For some performing artists, he recommends six to 12 months of living expenses.
That math can get difficult when the cost of living is high, and it can tempt people to move, especially if they can take work with them or are scaling back on hours.
When his clients leave a high-cost-of-living city, Rood says, “it’s because they either are going to retire, and so they want to go somewhere cheaper and they don’t need the work, or the rat race is too much and they want to do something else.”
Hall says he’s seen lots of older Americans strike out on their own, too. If your freelance work is a transition step out of full-time work, you may lean toward the place where you want to spend your retirement.
3. Identity, safety and values
Self-employment can afford you the freedom to live in a place for personal reasons, not just professional or financial ones.
For some, self-employment may support a move that lets them live more safely. According to a 2022 survey from the National Center for Transgender Equality, 5% of trans people had moved out of state due to laws targeting their community and 47% of respondents had thought about it.
And Hall says family ties and hometown memories are common reasons for relocation.
“We do hear a lot from NASE members and from small-business owners moving to a different community,” Hall says. “Maybe they grew up in a small city when they were younger and they had the need to go to the big city, because that’s where the jobs were. Now they’re going back home.”
Hodes says he works with his clients to find harmony between their financial goals and how they want to live their lives more broadly.
“You have to plan for the future, but it has to be a balance,” Hodes says. “Don’t sacrifice too much in the present.”
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Methodology
To create the Best Cities for Freelancers and Self-Employed Workers 2024 list, NerdWallet pulled data for major U.S. metropolitan areas from the U.S. Census Bureau. We also pulled state tax rates from the Tax Foundation and calculated the tax rate for a household earning the median U.S. household income. We weighted the impact of each factor depending on how important we felt that factor would be in the potential financial success of a freelancer. We excluded metro areas for which there was negative or no Job-to-Job Flows Census data.
NerdWallet’s analysis includes data from the following sources:
U.S. Census 2022 American Community Survey data for the unemployment rate, percentage of people in Census-designated metro areas who identified as self-employed in non-incorporated businesses, and percentage of renters in a Census-designated metro area who spend less than 30% of their household income on rent.
U.S. Census Q4 2022 and Q4 2023 Job-to-Job Explorer data.
The 2024 state tax rate for the median U.S. household (which earned $74,580 in 2023, according to Census data), according to the Tax Foundation.
Having children brings many joys. But for women, it can also have a financial dark side. Becoming a mother often results in a loss of pay and opportunities for career advancement, a phenomenon known as the motherhood penalty. In fact, women experience a 60% decrease in income compared to men in the decade after their first child is born, according to PricewaterhouseCoopers’ 2023 Women in Work Index.
Many factors contribute to the motherhood penalty, and not every woman experiences it in the same way. Understanding the motherhood penalty can help women — and their families — sidestep this financial setback.
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How Does the Motherhood Penalty Work?
If you want to avoid the motherhood penalty and keep your budget on track, it pays to know your enemy. According to a 2023 article published in the scientific journal PNAS, women’s diminished earnings after the birth of a child is driven by both a reduction in employment and by lower earnings for those who remain employed. Let’s look at each of these factors.
Despite the fact that women today have achieved historic levels of education and are working at senior levels in the corporate world, they are still more likely than men to cut back on their working hours or stop working altogether after a baby is born. Some women may choose jobs that allow for more flexibility in hours even if those roles pay less.
Discrimination is a more insidious factor: Women make up nearly half of all U.S. workers and do the bulk of consumer spending, yet some hiring managers still believe that women’s earnings are not as critical as men’s for household support. (A quick look at any parent’s money tracker app would reveal just how untrue this stereotype is.) When two women are similarly qualified for a job, the one without children tends to earn more than the one who has kids. And when men and women hold similar positions, fatherhood seems to confer a salary advantage in many occupations.
Recommended: The Highest-Paying Jobs in the US
Why the Motherhood Penalty Matters
Dual-income households have been the norm among married couples for decades, and most households composed of married couples with children have two working parents, according to 2023 data from the Bureau of Labor Statistics. Families with two healthy incomes are most likely to be able to afford a home, and to be able to cover other large expenses, including the cost of kids. (A 2022 report from the Brookings Institution suggests that the average middle-income family today will spend more than $310,000 to raise a child to age 17.)
But the motherhood penalty takes an especially hard toll on families led by women. According to the 2023 Census, 21% of U.S. children are growing up in a household led by a single mother, who often has no other source of income than her own earnings. The motherhood penalty may contribute to the fact that nearly 30% of single-parent families are living below the federal poverty level.
Factors Contributing to the Motherhood Penalty
As noted above, the unspoken ideas that women belong at home caring for their children, or that women are not vital contributors to their family finances, continue to be a driver of the motherhood penalty. This is despite the fact that households where two parents work outside the home is now the norm in the U.S.
But there is another troubling scenario. Women may leave their job because childcare costs more than they earn. The cost of caring for an infant in a childcare center averages $15,417 per year per child. In big cities, the number climbs even higher: Washington, D.C. averages $24,243, for example. And even when women don’t stop working, they may scale back their hours, or take more flexible but less well-paid positions.
The motherhood penalty is unfair, and one additional factor adds to the unfairness: In households with two working parents, where each parent earns roughly the same amount, women still spend more time on caregiving responsibilities than men do — 12.2 hours per week on average, compared with 9 hours for men, according to a 2023 Pew Research Center report. Women also spend 4.6 hours doing housework to men’s 2 hours. Women’s work may be valued less, but as the old saying goes, it’s never done.
Recommended: Pros and Cons of Salary vs Hourly Pay
Tips to Avoid the Motherhood Penalty
So what can women do to safeguard their finances from the motherhood penalty?
Consider your career choice. Women can begin to protect their financial future while they are still contemplating a career path. Some research suggests that the motherhood penalty disappears for mothers who work in business and post-secondary education. And in STEM careers, and fields such as medicine and law, mothers actually appear to earn more than women who don’t have kids.
Stand up for fair earnings. Exercise your right to be fairly compensated with every step you take in the working world. Applying for a job? Do your research to learn what is a good entry-level salary. Offered a position? Learn how to ask for a signing bonus — with unemployment relatively low, employers in industries from retail to engineering may pay you to come on board.
Change jobs. Women may be less likely to change jobs after becoming mothers, as switching jobs can be stressful and time off is often allotted based on seniority. Yet changing jobs is one way to bump up your salary. When you do switch, make sure you understand what is a competitive pay rate. A growing number of states, including California, Colorado, and New York, have passed pay transparency laws that require employers to post salary ranges when they advertise job openings.
Don’t share your status. It’s unlikely that you’ll be asked during a job interview if you have caregiving responsibilities, as doing so may violate federal and state laws. But many women casually disclose that they are parents during the interview process without thinking twice about it. Avoid talking about your personal life when interviewing for a job and consider that many employers examine applicants’ social media feeds during their screening process.
Advocate for fair pay and families. Research suggests that moms in women-dominated and low-paid professions face the greatest motherhood penalty. To help promote equitable pay that can sustain families, you can support raising the minimum wage. Lifting your voice in favor of government support for affordable childcare and for mandatory paid parental/caregiver leave can also help ensure that women who want to stay in the workforce after having a child can afford to do so.
The Takeaway
Despite the fact that women are working outside the home in historic numbers, the motherhood penalty still exacts a perilous price for many women and their families. Acknowledging that women are financially penalized for becoming parents is a first step in fighting back against the stereotyping and discrimination that is often at the root of this problem.
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FAQ
What is meant by the motherhood penalty?
The motherhood penalty refers to the fact that women’s earnings suffer after they have children, sometimes due to discrimination in hiring or the awarding of promotions, and sometimes because women scale back on work or stop working altogether after having a child.
How does the motherhood penalty affect a woman’s career?
The motherhood penalty results in lower earnings, and because future earnings are often based on current salary, the diminishment in income often persists as a woman progresses up the ladder.
How can I avoid the motherhood penalty?
A primary way to avoid the motherhood penalty is to know your worth. Do your research on salary before taking a job, and reevaluate your salary at least yearly by looking at comparable positions.
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It’s no secret that dating can be expensive. Be it fancy dinners or flowers and gifts, the cost of impressing your date can add up quickly.
But spending more doesn’t always correlate with a successful date—or relationship, for that matter. In fact, sometimes cheap date ideas are more effective at creating connections and leading to long-lasting relationships. Here are a few fun cheap date ideas that can fit any budget.
How to fit dating into your budget
Whether you’re committed to a strict spending plan or simply want to save more and spend less, figuring out how to date on a budget is completely doable with these tips.
Alternate between cheap or free and regular date nights
Not setting a budget for dates ahead of time can quickly devolve into overspending. Likewise, coming up with a cute cheap date idea every time can feel like a chore and take the fun out of planning. Instead, try switching between one pricier and one cheap or free date night activity so you’re only spending a sizable amount on half of your dates. This way, you’ll be able to indulge in going out sometimes and still find ways to save money on date night.
Take advantage of good deals
Just because something’s half price doesn’t make it any less fun or romantic. Instead of splurging on a three-course meal, consider a happy hour date to score lower-price drinks and appetizers. If you’re in charge of planning the date, there are plenty of free or cheap date ideas to help you have fun while staying within budget.
Cheap first date ideasto explore
First impressions matter, so you might find yourself shelling out some cash on a first date. But don’t feel like you need to go overboard to impress your date—here are a couple of fun cheap date ideas that won’t hurt your wallet.
Grab a casual bite
Ditch the Michelin-starred restaurants and eat like a local, meeting at a neighborhood cafe or a popular hole-in-the-wall spot. Opting for cheap eats over formal dining options can help keep the date lighthearted and the vibe relaxed as you’re still getting to know one another.
Take advantage of free events
Another cheap first date idea may come courtesy of your local chamber of commerce or public library. Most cities offer free outdoor activities like concerts and festivals, while libraries often share free or low-cost passes to state parks and local museums.
Cheap romantic date ideas for staying at home
After you’ve been on a first date (or a few) and you and your partner are both comfortable, you may favor staying in. Save even more with these cheap romantic date ideas you can have at home.
Some cute cheap date ideasat home include visiting a farmer’s market to buy ingredients for a home-cooked meal—and then cooking it together. Or if cooking’s not your strength, keep it simple with a charcuterie board and board game. Host a backyard or rooftop stargazing session to ramp up the romance—bonus points if you align it to a meteor shower or other astronomical event.
Level up your relationship
As you get to know one another, you may feel ready to take your relationship to the next level. Consider these cheap date night ideas that focus on aligning your financial values to help ensure a long-lasting, happy future.
Budget for cute date ideas together
While maybe not the most exciting idea, reserving one night to figure out plans and set a budget for future date nights is one of the easiest activities you can do. It’s also a great way to ensure you’re both on the same page about how much you want to spend and what activities you’d like to try.
Learn about your financial outlook together
Take a financial personality quiz to see how your beliefs shape your financial behaviors. With a clearer sense of how you both view money, you can better align on things—like how much you want to budget for date nights—without compromising your relationship over money.
Plan your financial future together
If you’re serious about your relationship, discussing your financial future on a regular basis can potentially set your relationship up for long-term success. Establish a regular time to talk about your finances—potentially once a month—and keep it casual. Especially if engagement and marriage are on the table, making a habit of talking about money can ensure your financial aspirations are aligned.
Date night doesn’t have to break the bank
Brainstorming fun cheap date ideas can be a date all on its own, and sometimes, the free activities are the most meaningful. Now is also a great time to think about what you can do with the cash you’re saving and how you might use it for your future together. If you’re planning a more extravagant experience, like a trip or big party, consider putting that money away in a high-yield savings account. With a clear budget and plan for staying on track, you can ensure your cheap date nights are just as rewarding as the pricier nights out.
Once you’ve got your date night budget sorted, check out the features of a Discover® Online Savings Account to see how you can make your money work a little harder for your next big date.
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Money management — how to save, budget, and invest — is a vital life skill that isn’t part of most school curriculums. As a result, it often falls to parents to prepare kids for this aspect of adulthood. The trouble is, talking about things like spending, saving, and taxes with your kids may not come naturally, especially if you were raised in a “don’t talk about money” household.
So when — and how — do you start talking about money with your kids?
Generally, it’s never too early to begin teaching kids about the concept of money. You might start just by normalizing conversations about money, so kids feel comfortable asking questions. Other easy strategies include offering a piggy bank to young kids, to introduce the concept of saving, and providing an allowance to older children, which helps them learn to budget and manage their own money.
Read on to learn more about some of the best ways to teach kids about money and put them on the path towards financial health and independence.
Why It’s Important To Teach Kids About Money Management
Whether it’s the importance of saving or how to open a new bank account, money lessons help ensure that kids will make smart financial decisions in the future.
Children who are introduced to basic financial concepts at an early age are likely to feel more confident about their spending habits and have less financial anxiety when they’re older. Teaching young children simple lessons about money management also makes it easier to impart more complex financial lessons as they get older. This can help set them up for success when they get that first summer job, go off to college, and enter the working world.
Money Management Explained
First, let’s look at the big picture. Helping kids understand the basics of money management is important…but what is money management anyway? Some adults can’t answer that question, let alone explain it to their children.
Simply put, money management refers to how you handle all of your finances. It involves keeping track of what’s coming in and what’s going out (and making sure that latter doesn’t exceed the former), being smart about debt, and setting money aside for both short- and long-term goals.
While adults generally understand that saving money is important, it typically takes an engaging approach to get kids psyched about hoarding their pennies rather than spending them on a video game. With the right strategies, however, teaching kids about money management can wind up being a satisfying and fun experience for the whole family. It might even give you a renewed focus on your own money skills.
Money Management for Kids in 6 Steps
Here’s a look at some of the best ways to boost money management for kids.
1. Start Early
Children as young as three years old can start to grasp the basic concept of “We need dollars to get ice cream.” Talking about money in a positive, or simply neutral, way and being transparent about your own financial life (“I got paid today,” or “I need to pay bills tonight”) begins to ground kids in the ebb and flow of finances. It helps a child learn the value of money.
Parents can use a routine trip to the grocery store to point out price tags and how some things cost more than others. Asking a salesperson or cashier, “How much is this?” can clue children in to a transactional truth: You have to have money to buy something. Paying bills in front of them helps them understand that families also have household expenses.
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2. Provide an Allowance
Offering an allowance can be a great way to teach kids to manage money responsibly. The ground rules for a child’s allowance vary from family to family; some start a child off with an allowance at age five, and others at age 14. How much kids get also varies widely and is entirely up to you. One rule of thumb is to match the number of dollars per week with a child’s age, such as $10 a week for a ten year old. You might also ask around among other parents to get a sense of the “going rate.”
Here’s a look at the two common ways to structure allowance.
• Chore-based allowance: With this set-up, a child does chores in order to get paid. This system can instill a strong work ethic that will benefit children in the future. Some say a drawback of this method is that it could send a message that household chores are optional. But for many families, it works well.
• Fixed allowance: Here, you agree to pay your child a set amount of money every week or month no matter what. Separately, they are expected to do their chores and help around the house because they are part of the family. This arrangement allows a child to feel part of a greater whole — to be responsible for the tidiness of their room and offer to help with the dishes because that’s what family members do. Some may argue that paying children an allowance that isn’t chore-based could compromise their work ethic or promote a sense of entitlement, but it’s really up to each family to determine what works best for them.
3. Encourage Saving and Goal-Setting
Just as adults are motivated to save when they want to have enough money for, say, a vacation or new car, your child may be incentivized to save a target amount for a specific purpose. Or, you may have a child who just wants to see how high their savings can go — that’s fine too! You can encourage them to save just to find out how much they can stash.
You might also offer rewards for reaching savings milestones. For example, you could make a deal that if your child saves a certain amount, you’ll kick in a little bit more. This rewards them for exercising restraint, and it’s similar to a vesting or “company match” principle, which you could explain to an older child.
4. Give Them a Place to Stash Their Cash
For younger kids, keeping money close at hand can work well. Having their own piggy bank or child’s safe can also make saving more fun. For older kids, you might want to open a savings account in their name. Many banks offer savings accounts specifically geared toward children and teens. Typically, these are joint or custodial accounts that come with parental controls and tools that teach financial education.
5. Introduce Them to Credit
As teenagers become more independent and start driving themselves around, consider enrolling your child as an authorized user on one of your credit cards. This can not only be helpful in the event of an emergency, like a flat tire, it’s an opportunity to discuss how to be responsible with credit. You can explain how credit cards work differently than debit cards and how interest racks up quickly if you don’t pay off what you charge in full by the end of the billing cycle.
6. Explain Budgeting When They Graduate From College
Once your kids are earning money regularly and responsible for paying their own room and board, it’s a good idea to help them draw up a budget based on their salary and estimated expenses.
There are all kinds of budgeting methods, but they might start with the basic 50/30/20 approach. This involves putting 50% of their earnings toward needs, 30% toward wants, and 20% toward savings (including any money they are putting into a retirement plan offered by their employer). If their employer offers any matching contributions to their retirement contributions, encourage them to take full advantage, since this is essentially free money.
Fun Ways To Teach Kids Money Management
To make financial literacy fun and engaging, try one of these four money activities for kids.
Go Thrifting
Buying second-hand clothes can be a great way to teach kids how to be smart spenders. You might first go to a regular clothing store and look at the price tags on new clothing, then head to a local thrift store and compare prices. Consider giving your child a set amount they can spend on second-hand clothing. You can then enjoy watching them try to get as much as they can for their money.
Encourage Some Sibling Rivalry
If you’re teaching more than one child about money, consider setting up a competition to see which sibling can save more by a certain date. You might set a goal, such as saving a specific amount or towards a specific item, then offer a reward to the winner.
Set Up a Lemonade Stand
Letting kids set up and run a lemonade stand can help them learn valuable lessons about money, including earning income and entrepreneurship. It can also help them build confidence, resilience, and management skills. Plus, it’s fun. Just be aware that many states require kids to have a permit to operate a lemonade stand, so the first step is doing a bit of research.
Play Financial Board Games
Classic board games like Monopoly and Payday can also be great money activities for children. In Monopoly, for example, players buy and trade properties, develop them, and collect rent. There is even Monopoly Jr. for younger kids. Other fun money board games for your next family game night: the Game of Life, the Allowance Game, the Stock Exchange Game, and the Sub Shop Board Game.
Teaching kids about money and how to manage it can prepare them to be financially responsible adults. By offering an allowance or payment for doing extra chores, kids can learn the value of money and rewards of saving and delayed gratification. Helping older kids learn how to budget and set up a bank account can instill a sense of confidence and independence, not to mention pride.
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FAQ
When should you start teaching kids money management?
Children as young as three years old can begin to understand the concept of paying for something and saving money in a piggy bank. Some parents start giving kids an allowance between the ages of five and seven, which can help them learn basic financial literacy concepts like saving, spending, and sharing. As kids get older, you can gradually introduce more complex concepts like budgeting, investing, and “good” vs. “bad” debt.
What are the benefits of teaching kids money management?
Teaching kids about money has numerous benefits. It instills financial responsibility, fosters good habits early on, and prepares them for real-world financial challenges. It also encourages critical thinking, goal-setting, and independence in making financial decisions.
How do you teach kids the value of money?
You can teach the value of money through hands-on experiences and age-appropriate activities. Encourage earning money through chores or tasks, involve them in family budgeting discussions, and demonstrate the consequences of spending choices. Emphasize the importance of saving for goals and how to differentiate between needs and wants.
How do you organize your kids’ money?
You can organize a kid’s money by helping them establish savings goals, allocate their money into different categories (such as saving, spending, and giving), and track their progress regularly. Consider using tools like jars, envelopes, or savings accounts to physically or digitally separate their money.
What is the 3 piggy bank system?
The “three piggy bank” system involves dividing money into three categories: saving, spending, and sharing. Each piggy bank represents a different purpose, teaching kids to allocate their money wisely. They learn the importance of saving for future goals, budgeting for everyday expenses, and contributing to charitable causes or sharing with others. This system helps instill foundational money management skills in a simple and practical way.
Photo credit: iStock/kate_sept2004
SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
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Have you been asking yourself, “Should I move to Wichita?” If you’re looking for a city that offers a high quality of life and a welcoming atmosphere, this city may be the perfect place for you. Located in the heart of the Midwest, Wichita offers a special blend of urban amenities and small-town charm. From its dynamic arts and culture scene to its rich aviation history, there’s always something to explore in this bustling city. So, before making the move to Wichita, it’s important to know if your lifestyle is compatible with the area. In this article, we’ll discuss the pros and cons of living in Wichita to help you decide if it’s the right place for you. Let’s jump in.
Wichita at a Glance
Walk Score: 35 | Bike Score: 44 | Transit Score: 20
Median Sale Price: $232,000 | Average Rent for 1-Bedroom Apartment: $860
Wichita neighborhoods | Houses for rent in Wichita | Apartments for rent in Wichita | Homes for sale in Wichita
Pro: Affordable cost of living
This city stands out for its affordability with the cost of living in Wichita 11% lower than the national average. This allows many residents to enjoy a comfortable lifestyle without breaking the bank. This affordability extends to various aspects of life, including groceries, utilities, and entertainment options. Additionally, the median home price in Wichita is about $200,000 less than the national average, making homeownership more accessible to a broader range of people.
Con: Limited public transportation
With a Transit Score of 20, one of the drawbacks of Wichita is the limited public transportation options. The city relies heavily on buses, with a lack of extensive subway or tram systems found in larger cities. This can make commuting challenging for those without a vehicle, particularly in areas not well-served by the existing bus routes. Additionally, the frequency and coverage of bus services can be limited, especially on weekends and evenings, further complicating mobility for residents without cars.
Pro: Cultural attractions
Wichita is home to an exciting cultural scene boasting a variety of museums, galleries, and theaters. For example, the nearby Wichita Art Museum houses one of the largest collections of American art in the country. There are also numerous festivals and events throughout the year, including the Wichita River Festival, which attracts visitors from all over with its concerts, food, and fireworks. These cultural attractions provide residents with enriching experiences and opportunities to engage with the community.
Con: Weather extremes
Residents of Wichita must be prepared to face weather extremes throughout the year. The city experiences hot, humid summers with temperatures often soaring above 90 degrees Fahrenheit, while winters can be bitterly cold and snowy. Additionally, Wichita is located in an area prone to severe weather. This includes thunderstorms and tornadoes, particularly during the spring and early summer months. These weather extremes can be a significant drawback for those not accustomed to such variability.
Pro: Strong job market
Wichita possesses a strong job market, especially in the aviation, healthcare, and manufacturing sectors. The city is known as the “Air Capital of the World,” hosting numerous aerospace companies, including Spirit AeroSystems and Textron Aviation. This specialization has created a wealth of job opportunities for engineers, mechanics, and other skilled professionals. Additionally, the city’s healthcare system is a major employer, providing a range of career options for those in medical and allied health professions.
Con: Limited nightlife options
For those seeking a bustling nightlife, Wichita may fall short of expectations. While there are bars and entertainment venues, the variety and scale of nightlife options are limited compared to larger cities. However, the city has been making efforts to revitalize its downtown area. These efforts have introduced new venues and events aimed at enhancing the nightlife experience.
Wichita boasts a strong sense of community spirit, with friendly residents and a welcoming atmosphere. The city holds volunteerism and community events, which foster a sense of belonging and involvement among locals. Neighborhood associations and local groups are active in organizing events, beautification projects, and other initiatives that enhance the quality of life. This community-minded approach makes Wichita a great place to live for those who value connectivity and a supportive environment.
Con: Limited diversity in dining options
While Wichita has a growing food scene, the diversity in dining options can be limited compared to larger metropolitan areas. Residents looking for international cuisine might find the choices somewhat restricted, with a heavier focus on traditional American and barbecue fare. However, the city has seen an influx of new restaurants and food trucks in recent years. This has been slowly broadening the culinary landscape to include more varied and international dishes.
Pro: Access to outdoor activities
Wichita is surrounded by natural beauty and offers numerous parks and recreational areas.The city’s location along the Arkansas River includes scenic paths and parks perfect for walking, biking, and picnicking. Sedgwick County Park and the Great Plains Nature Center offer additional spaces for hiking, bird watching, and connecting with nature. These green spaces are a significant advantage for those who enjoy spending time outdoors.
Con: Perception as a “flyover” city
Wichita sometimes struggles with the perception of being a “flyover” city, overlooked by those traveling between the coasts. This perception can impact the city’s ability to attract new businesses and tourists, who may not realize the cultural, recreational, and economic opportunities available. However, those who take the time to explore Wichita often discover a vibrant community full of surprises and hidden gems.
Pro: Innovative business environment
Wichita’s economy is not only strong in traditional sectors like aviation and healthcare but is also fostering an innovative business environment. The city is becoming a hub for startups and entrepreneurship, supported by initiatives like the e2e Accelerator and Wichita State University’s Innovation Campus. These efforts are creating a dynamic atmosphere for business development and innovation, attracting new talent and investment to the city. This entrepreneurial spirit is a significant pro for Wichita, signaling a bright future for its economy.
Con: Sparse public spaces in some areas
While Wichita offers beautiful parks and outdoor areas, the distribution of these public spaces can be uneven across the city. Some neighborhoods lack easy access to parks or recreational facilities, which can affect residents’ quality of life, particularly in more densely populated or underserved areas. Efforts are underway to address this imbalance, with plans for new parks and improvements to existing ones, aiming to ensure all Wichitans can enjoy the benefits of public spaces.
Using a credit card to make purchases is straightforward, but understanding the ins and outs of how exactly they work can be more complicated.
On the back end, credit card issuers can take certain liberties that impact your cards’ features. If you dig into the fine print, you’ll find that card issuers generally mention they can make certain account decisions at their discretion. There are also unwritten liberties issuers can take, potentially in your favor. For instance, an issuer may be cooperative when you request lower interest rates, a higher credit limit or a switch to a different card entirely.
The more you understand your credit cards, the better you can navigate them.
Here are a few facts about credit cards that are good to know.
1. Some credit card terms can change with little if any warning
You may become accustomed to certain perks, rewards, fees or even interest rates over time, but those features can change — some more quickly than others. You’ll often find language supporting this in a card’s terms and conditions.
For significant changes — like increases to interest rates, fees and the minimum amount due — the card issuer generally must give notice 45 days in advance, according to the Consumer Financial Protection Bureau’s website. But benefits or rewards aren’t considered “significant,” so changes to those can come at any time. (Many issuers will still send an email or written notification as a courtesy to cardholders.)
Variable interest rates change at a quicker pace than other features, as has been the case since the Federal Reserve began hiking interest rates to battle inflation.
“Folks didn’t realize that the rise in the federal interest rate applies to their credit card also,” says Martin Lynch, director of education at Cambridge Credit Counseling, a nonprofit credit counseling agency. “Variable rate cards incorporate those hikes usually within a month or two, so you did see some people experiencing some sticker shock when the minimum payments went up.”
2. Issuers can close an account or cut your credit limit at any time
Even if you’re managing a credit card responsibly, an issuer can still legally close your account if it wants to, according to the CFPB website.
The issuer must provide an “adverse action notice” when it makes these kinds of unfavorable decisions, the website notes. But they can still catch you off guard.
3. Your creditor may be willing to bend on interest rates
For longtime customers with solid track records, an issuer might be willing to negotiate a lower interest rate. Alternately, a hardship plan (if available) can temporarily lower interest rates if the hardship is because of qualifying circumstances beyond your control.
If you’re having trouble juggling debt, credit card issuers may also be willing to work with you through a nonprofit credit counseling agency’s debt management plan, which can consolidate those debts into one fixed monthly payment if you qualify.
“Our average interest rate right now is about 8%, among all creditors,” Lynch says. “Some are higher, some are lower.”
For comparison, the average rate for credit cards that assessed interest in the last quarter of 2023 was 22.75%, according to Fed data.
4. You might not qualify for a sign-up bonus
Many credit cards offer an upfront pile of cash back, points or miles as an incentive for new cardholders who can meet a specific spending requirement. But if you’ve recently applied for a credit card with the same issuer — even if it’s been more than a year — you might not qualify for the advertised bonus.
As you’re applying for a credit card, it’s important to read the terms carefully to understand whether you’re eligible for such a welcome offer.
5. You can lose a 0% APR
If you have good or excellent credit (credit scores of 690 or higher), you might qualify for a credit card with a 0% introductory APR on purchases, balance transfers or both. But that promotional window may not be guaranteed.
If you pay late, for instance, the issuer could cancel the 0% APR offer and start charging the card’s ongoing variable interest rate instead. Depending on the card, a much higher penalty APR can also apply after missing a payment.
To avoid missing payments, set a reminder or establish an automatic payment schedule.
6. You might be able to upgrade or downgrade your credit card
If a credit card is no longer as valuable to you as it once was, contact the issuer to see whether it’s possible to upgrade or downgrade your credit card to a different option. This is also known as a “product change,” and it may allow you to retain your account number and account history while switching to a card that better suits your needs now.
You might consider downgrading to a different option to avoid an annual fee, for example. An upgrade might get you higher rewards or better perks.
7. The value of your rewards may vary
It’s not really an issue for cash-back credit cards, but if you have a co-branded store card or travel card, be aware that the points or miles that you’re earning may be less valuable for some redemptions than for others.
For example, your miles may be worth a penny or more each when redeemed for travel, but a good bit less than that when you redeem for options like cash back, statement credit or gift cards.
Knowing the true value of your rewards can help you maximize them. You can often get an idea of that value either by logging into your card account and exploring redemption options or by revisiting the card’s terms and conditions.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
90k salary is a good hourly wage when you think about it.
When you get a job and you are making about $24 an hour, making over $90,000 a year seems like it would provide amazing opportunities for you. Right?
The median household income is $68,703 in 2019 and increased by 6.8% from the previous year (source). Think of it as a bell curve with $68K at the top; median means half of the population makes less than that and half makes more money.
The average income in the U.S. is $48,672 for a 40-hour workweek; that is an increase of 4% from the previous year (source). That means if you take everyone’s income and divide the money out evenly between all of the people.
Obviously, $90k is well above the average and median incomes; yet, most people feel like they can barely make ends meet with this higher than average salary.
But, the question remains can you truly live off 90,000 per year in today’s society. The question you want to ask all of your friends is $90000 per year a good salary.
In this post, we are going to dive into everything that you need to know about a $90000 salary including hourly pay and a sample budget on how to spend and save your money.
These key facts will help you with money management and learn how much per hour $90k is as well as what you make per month, weekly, and biweekly.
Just like with any paycheck, it seems like money quickly goes out of your account to cover all of your bills and expenses, and you are left with a very small amount remaining. You may be disappointed that you were not able to reach your financial goals and you are left wondering…
Can I make a living on this salary?
$90000 a year is How Much an Hour?
When jumping from an hourly job to a salary for the first time, it is helpful to know how much is 90k a year hourly. That way you can decide whether or not the job is worthwhile for you.
90000 salary / 2080 hours = $43.27 per hour
$90000 a year is $43.27 per hour
Let’s breakdown how that 90000 salary to hourly number is calculated.
For our calculations to figure out how much is 90K salary hourly, we used the average five working days of 40 hours a week.
Typically, the average work week is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, divide the yearly salary of $90000 by 2,080 working hours and the result is $43.27 per hour.
Just above $40 an hour.
That number is the gross hourly income before taxes, insurance, 401K or anything else is taken out. Net income is how much you deposit into your bank account.
You must check with your employer on how they plan to pay you. For those on salary, typically companies pay on a monthly, semi-monthly, biweekly, or weekly basis.
What If I Increased My Salary?
Just an interesting note… if you were to increase your annual salary by $5K, it would increase your hourly wage by $2.40 per hour.
To break it down – 95k a year is how much an hour = $45.67
That isn’t a huge amount of money, but every dollar adds up to over $45 an hour.
How Much is $90K salary Per Month?
On average, the monthly amount would be $7,500.
Annual Salary of $90,000 Ă· 12 months = $7,500 per month
This is how much you make a month if you get paid 90000 a year.
$90k a year is how much a week?
This is a great number to know! How much do I make each week? When I roll out of bed and do my job of $90k salary a year, how much can I expect to make at the end of the week for my effort?
Once again, the assumption is 40 hours worked.
Annual Salary of$90000/52 weeks = $1,731 per week.
$90000 a year is how much biweekly?
For this calculation, take the average weekly pay of $1,731 and double it.
This depends on how many hours you work in a day. For this example, we are going to use an eight hour work day.
8 hours x 52 weeks = 260 working days
Annual Salary of$90000 / 260 working days = $346 per day
If you work a 10 hour day on 208 days throughout the year, you make $433 per day.
$90000 Salary is…
$90000 Salary – Full Time
Total Income
Yearly Salary (52 weeks)
$90,000
Monthly Salary
$7,500
Weekly Wage (40 Hours)
$1,731
Bi-Weekly Salary (80 Hours)
$3,462
Daily Wage (8 Hours)
$346
Daily Wage (10 Hours)
$433
Hourly Wage
$43.27
Net Estimated Monthly Income
$5,726
Net Estimated Hourly Income
$33.04
**These are assumptions based on simple scenarios.
90k A Year Is How Much An Hour After Taxes
Income taxes is one of the biggest culprits of reducing your take-home pay as well as FICA and Social Security. This is a true fact across the board with an all salary range up to $142,800.
When you start getting into a higher salary range, the more you make, the more money that you have to pay in taxes.
Every single tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
So, how much an hour is 90000 a year after taxes?
Gross Annual Salary: $90,000
Federal Taxes of 12%: $10,800
State Taxes of 4%: $3,600
Social Security and Medicare of 7.65%: $6,885
$90k Per Year After Taxes is $68,715.
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$68,715 Ă· 2,080 hours = $33.04 per hour
After estimated taxes and FICA, you are netting $68715 per year, which is a whopping $21,285 per year less than what you expect.
***This is a very high-level example and can vary greatly depending on your personal situation and potential deductions. Therefore, here is a great tool to help you figure out how much your net paycheck would be.***
Taxes Based On Your State
In addition, if you live in a heavily taxed state like California or New York, then you have to pay way more money than somebody that lives in a no tax state like Texas or Florida. This is the debate of HCOL vs LCOL.
Thus, your yearly gross $90000 income can range from $61,515 to $72,315 depending on your state income taxes.
That is why it is important to realize the impact income taxes can have on your take home pay. It is one of those things that you should acknowledge and obviously you need to pay taxes. But, it can also put a huge dent in your ability to live the lifestyle you want on a $90,000 income.
We calculated how much $90,000 a year is how much an hour with 40 hours a week. But, more than likely, you work more or fewer hours per week.
How Much is $90k Salary To Hourly Calculator
So, here is a handy calculator to figure out your exact hourly salary wage.
In fact, a real estate investment trusts may be a good career path to make this salary higher.
90k salary lifestyle
Every person reading this post has a different upbringing and a different belief system about money. Therefore, what would be a lavish lifestyle to one person, maybe a frugal lifestyle to another person. And there’s no wrong or right, it is what works best for you.
One of the biggest factors to consider is your cost of living.
In another post, we detailed the differences between living in an HCOL vs LCOL vs MCOL area. When you live in big cities, trying to maintain your lifestyle of $90,000 a year is going to be much more difficult because your basic expenses, housing, transportation, food, and clothing are going to be much more expensive than you would find in a lower-cost area.
To stretch your dollar further in the high cost of living area, you would have to probably live a very frugal lifestyle and prioritize where you want to spend money and where you do not. Whereas, if you live in a low cost of living area, you can live a much more lavish lifestyle because the cost of living is less. Thus, you have more fun spending left in your account each month.
As we noted earlier in the post, $90,000 a year is just above the median income of $30000 that you would find in the United States. Thus, you are able to live an above-average lifestyle here in America.
What a $90,000 lifestyle will buy you:
If you are debt free and utilize smart money management skills, then you are able to enjoy the lifestyle you want.
You are able to afford a home in a great neighborhood in MCOL city.
You should be able easily meet your expenses each and every month.
Saving at least 20% of your income each month.
Working to increase your savings percentage every year.
Able to afford vacations on a fairly regular basis; of course by using your vacation fund.
When A $90,000 Salary Will Hold you Back:
However, if you are riddled with debt or unable to break the paycheck to paycheck cycle, then living off of 90k a year is going to be pretty darn difficult.
There are two factors that will keep holding you back:
You must pay off debt and cut all fun spending until that happens.
Break the paycheck to paycheck cycle.
Live a lifestyle that you can afford.
It is possible to get ahead with money!
It just comes with proper money management skills and a desire to have less stress around money. That is a winning combination regardless of your income level.
$90K a year Budget – Example
As always, here at Money Bliss, we focus on covering our basic expenses plus saving and giving first, and then our goal is to eliminate debt. The rest of the money leftover is left for fun spending.
If you want to know how to manage 90k salary the best, then this is a prime example for you to compare your spending.
You can compare your budget to the ideal household budget percentages.
recommended budget percentages based on $90000 a year salary:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$750
Savings
15-25%
$1500
Housing
20-30%
$1800
Utilities
4-7%
$188
Groceries
5-12%
$506
Clothing
1-4%
$38
Transportation
4-10%
$225
Medical
5-12%
$375
Life Insurance
1%
$19
Education
1-4%
$26
Personal
2-7%
$113
Recreation / Entertainment
3-8%
$188
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$1744
Total Gross Income
$7,500
**In this budget, prioritization was given to savings, basic expenses, and no debt.
Is $90,000 a year a Good Salary?
As we stated earlier if you are able to make $90,000 a year, that is a good salary. You are making more money than the average American and slightly less on the bell curve on the median income.
You shouldn’t be questioning yourself if 90000 is a good salary.
However, too many times people get stuck in the lifestyle trap of trying to keep up with the Joneses, and their lifestyle desires get out of hand compared to their salary. And what they thought used to be a great salary actually is not making ends meet at this time.
This $90k salary would be considered a upper-middle class salary. This salary is something that you can live on very comfortably.
Check: Are you in the middle class?
In fact, this income level in the United States has enough buying power to put you in the top 91 percentile globally for per person income (source).
The question you need to ask yourself with your 90k salary is:
Am I maxed at the top of my career?
Is there more income potential?
What obstacles do I face if I want to try to increase my income?
In the future years and with possible inflation, in some expensive cities, 90000 dollars a year is not a good salary because the cost of living is so high, whereas these are some of the cities where you can make a comfortable living at 90,000 per year.
If you are looking for a career change, you want to find jobs paying over six figures.
Is 90k a good salary for a Single Person?
Simply put, yes.
You can stretch your salary much further because you are only worried about your own expenses. A single person will spend much less than if you need to provide for someone else.
Your living expenses and ideal budget are much less. Thus, you can live extremely comfortably on $90000 per year.
And… most of us probably regret how much money wasted when we were single. Oh well, lesson learned.
Is 90k a good salary for a family?
Many of the same principles apply above on whether $90000 is a good salary. The main difference with a family, you have more people to provide for than when you are single or have just one other person in your household.
The cost of raising a child is expensive! Any of us can relate to that!
Did you know raising a child born in 2015 is $233,610 (source). That is from birth to the age of 17 and this does not include college.
Each child can put a dent in your income, specifically $12,980 annually per child.
That means that amount of money is coming out of the income that you earned.
So, the question really remains is can you provide a good life for your family making $90,000 a year? This is the hardest part because each family has different choices, priorities, and values.
More or less, it comes down to two things:
The location where you live in.
Your lifestyle choices.
You can live comfortably as a family on this salary, but you will not be able to afford everything you want.
Many times when raising a family, it is helpful to have a dual-income household. That way you are able to provide the necessary expenses if both parties were making 90,000 per year, then the combined income for the household would be $180,000. Thus making your combined salary a very good income.
Learn how much money a family of 4 needs in each state.
Can you Live on $90000 Per Year?
As we outlined earlier in the post, $90,000 a year:
$43.27 Per Hour
$346-433 Per Day (depending on length of day worked)
$1731 Per Week
$3462 Per Biweekly
$7500 Per Month
Next up is making $100000 a year! Time for six figures!!
Like anything else in life, you get to decide how to spend, save and give your money.
That is the difference for each person on whether or not you can live a middle-class lifestyle depends on many potential factors. If you live in California or New Jersey you are gonna have a tougher time than Oklahoma or even Texas.
In addition, if you are early in your career, starting out around 55,000 a year, that is a great place to be getting your career. However, if you have been in your career for over 20 years and making $90K, then you probably need to look at asking for pay increases, pick up a second job, or find a different career path.
Regardless of the wage that you make, if you are not able to live the lifestyle that you want, then you have to find ways to make it work for you. Everybody has choices to make.
But one of the things that can help you the most is to stick to our ideal household budget percentages to make sure you stay on track.
Learn exactly how much do I make per year…
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.