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Apache is functioning normally

June 20, 2024 by Brett Tams

Inside: Learn what 21 an hour is how much a year, month, and day. Plus tips to budget your money. Don’t miss the ways to increase your income.

You’re probably wondering if I made $21 a year, how much do I truly make? What will that add up to over the course of the year when working? Is $21 an hour good?

Is this wage something that I can actually live on? Or do I need to find ways that I can increase my hourly wage? How much more is $21.50 an hour annually?

In this post, we’re going to detail exactly what $21 an hour is how much a year. Also, we are going to break it down to know how much is made per month, bi-weekly, per week, and daily.

That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.

By taking a step ahead and making a plan for the money, you are better able to decide how you want to live, make sure that you put your money goals first, and not just living paycheck to paycheck struggling to survive.

The ultimate goal with money success is to be wise with how you spend your money.

If that is something you want too, then keep reading. You are in the right place.

$21 an Hour is How Much a Year?

When we ran all of our numbers to figure out how much is $21 per hour is as annual salary, we used the average working day of 40 hours a week.

40 hours x 52 weeks x $21 = $43,680

$43,680 is the gross annual salary with a $21 per hour wage.

As of June 2023, the average hourly wage is $33.58 (source).

Let’s breakdown how that number is calculated.

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, multiply the hourly salary of $21 times 2,080 working hours and the result is $43,680.

That number is the gross income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.

Just above $43000 a year.

Work Part Time?

But you may think, oh wait, I’m only working part time. So if you’re working part time, the assumption is working 20 hours a week at $21 an hour.

Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $21 times 1,040 working hours, and the result is $21,840.

How Much is $21 Per Month?

On average, the monthly amount would average $3,640.

Annual Amount of $43,680 ÷ 12 months = $3,650 per month

Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid and on which days you get paid.

Plus by increasing your wage from $15 an hour, you average an extra $1000 per year. So, yes a few more dollars an hour add up!

Work Part Time?

Only 20 hours per week. Then, the monthly amount would average $1,840.

How Much is $21 per Hour Per 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, what can I expect to make at the end of the week?

Once again, the assumption is 40 hours worked.

40 hours x $21 = $840 per week.

Work Part Time?

Only 20 hours per week. Then, the weekly amount would be $420.

How Much is $21 per Hour Bi-Weekly

For this calculation, take the average weekly pay of $840 and double it.

$840 per week x 2 = $1,680

Also, the other way to calculate this is:

40 hours x 2 weeks x $21 an hour = $1,680

Work Part Time?

Only 20 hours per week. Then, the bi-weekly amount would be $840.

How Much is $21 Per Hour Per Day

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 $21 per hour = $168 per day.

If you work 10 hours a day for four days, then you would make $210 per day. (10 hours x $21 per hour)

Work Part Time?

Only 4 hours per day. Then, the daily amount would be $84.

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.

$21 Per Hour is…

$21 per Hour – Full Time	Total Income
Yearly (52 weeks)	$43,680
Yearly (50 weeks)	$42,000
Monthly (173 hours)	$3,640
Weekly (40 Hours)	$840
Bi-Weekly (80 Hours)	$1,690
Daily Wage (8 Hours)	$168
Net Estimated Monthly Income	$2,779

^{**These are assumptions based off simple scenarios.}

Paid Time Off Earning 21 Dollars an Hour

Does your employer offer paid time off?

As an hourly employee, you may or may not get paid time off.

So, here are the scenarios for both cases.

For general purposes, we are going to assume you work 40 hours per week over the course of the year.

Case # 1 – With Paid Time Off

Most hourly employees get two weeks of paid time off which is equivalent to 2 weeks of paid time off.

In this case, you would make $43,680 per year.

This is the same as the example above for an annual salary making $21 per hour.

Case #2 – No Paid Time Off

Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.

Life happens. There will be times you need to take time off for numerous reasons – sick time, handling an emergency, or even vacation.

So, let’s assume you take 2 weeks off without paid time off.

That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $21 times 2,000 working hours, and the result is $42,000.

40 hours x 50 weeks x $21 = $42,000

You would average $168 per working day and nothing when you don’t work.

$21 an Hour is How Much a year After Taxes

Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.

Also, every single person’s tax situation is different.

On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.

Gross Annual Salary: $43,680

Federal Taxes of 12%: $5,242
State Taxes of 4%: $1,747
Social Security and Medicare of 7.65%: $3,342

$21 an Hour per Year after Taxes: $33,350

This would be your net annual salary after taxes.

To turn that back into an hourly wage, the assumption is working 2,080 hours.

$33,350 ÷ 2,080 hours = $16.03 per hour

After estimated taxes and FICA, you are netting $16.03 an hour. That is $4.97 an hour less than what you thought you were paid.

This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.

Plus budgeting on a just over $16 an hour wage is much different.

$21 an Hour Salary Calculator

Now, you get to figure out how much you make based on your hours worked or if you make a wage between $21.01-21.99.

This is super helpful if you make $21.30 or $21.63, or $21.88.

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$21 an Hour Budget – Example

You are probably wondering can I live on my own making 21 dollars an hour? How much rent can you afford at 21 an hour?

Using our Cents Plan Formula, this is the best case scenario on how to budget your $21 per hour paycheck.

When using these percentages, it is best to use net income because taxes must be paid.

In this example, above we calculated that $21 an hour was $16.03 after taxes. That would average $2,779 per month.

According to the Cents Plan Formula, here is the high level view of a $21 per hour budget:

Basic Expenses of 50% = $1389.50
Save Money of 20% = $555.80
Give Money of 10% = $277.91
Fun Spending of 20% = $555.83
Debt of 0% = $0

Obviously, that is not doable for everyone. Even though you would expect your money to go further when you are making double the minimum wage.

Learn how to budget on a low income.

So, you have to be strategic on ways to decrease your basic expenses and debt. Then, it will allow you more money to save and fun money.

To further break down an example budget of $21 per hour, then using the biweekly budget template is extremely helpful.

recommended budget percentages based on $21 per hour wage:

Category	Ideal Percentages	Sample Monthly Budget
Giving	10%	$218
Savings	15-25%	$510
Housing	20-30%	$983
Utilities	4-7%	$182
Groceries	5-12%	$291
Clothing	1-4%	$36
Transportation	4-10%	$146
Medical	5-12%	$182
Life Insurance	1%	$18
Education	1-4%	$36
Personal	2-7%	$67
Recreation / Entertainment	3-8%	$109
Debts	0% – Goal	$0
Government Tax (including Income Taxes, Social Security & Medicare)	15-25%	$861
Total Gross Income		$3,640

^**^{In this budget, prioritization was given to basic expenses. Thus, some categories like giving and saving were less.}

Can I Live off $21 Per Hour?

At this $21 hourly wage, you are close to double the minimum wage. Things should be easy to live off this $21 hourly salary.

However, it is still below the median income of over $60,000 salary. That means it can still be a tough situation.

Is it doable? Absolutely.

In fact, $21 an hour is higher than the median hourly wage of $19.33 (source). That seems backward, but typically salaried workers earn more per hour than hourly workers.

Can you truly live off $21 an hour annually?

You just have to be wiser (or frugal) with your money and how you spend the hard-earned cash you have been blessed with.

If you are constantly struggling to keep up with bills and expenses, then you need to break that constant cycle. It is possible to be smart with money.

You need to do is change your money mindset.

This is what you say to yourself… Okay, this is my season of life right now. I have aspirations and goals to change how much I make, but for now, I am going to make sure that I am able to live on my 21 dollars per hour. No going into debt for me. I will start saving money.

In the next section, we will dig into ways to increase your income, but for now, is it possible to live on $21 an hour?

Yes, you can do it, and as you can see it is possible with the sample budget of $21 per hour.

Living in a higher cost of living area would be more difficult. So, you may have to get a little creative. For example, you might have to have a roommate. Move to a lower cost of living area where rent is cheaper.

Also, you must evaluate your “fun spending” items. Many of those expenses are not mandatory and will break your budget. You can find plenty of free things to do without spending money.

5 Ways to Increase Your Hourly Wage

This right here is the most important section of this post.

You need to figure out ways to increase your hourly income because I’m going to tell you…you deserve more. You do a good job and your value is higher than what your employers pay you.

Even an increase of 50 cents to $21.50 will add up over the year. Even better $24 an hour!

1. Ask for a Raise

The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.

If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.

2. Look for A New Job

Another way to increase your hourly wage is to look for a new job. Maybe a completely new industry.

It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work. Making $21 an hour is too much for you and you’re not able to enjoy life, maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.

3. Find a New Career

Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.

For many years, I was in the same situation until I decided to do a complete career change. I am glad I did. I have the flexibility that I needed in my life to do what I wanted when I needed to do it. Plus I am able to enjoy my entrepreneurial spirit.

It is important to uncover what should I do for a living.

4. Find Alternative Ways to Make Money

In today’s society, you need to find ways to make more money. Period.

There is no way to get around it. You need to find additional income outside a traditional nine to five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.

So, you need to find a side hustle – another way to make money.

Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.

5. Earn Passive Income

The last way to increase your hourly wage is to start earning passive income.

This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation of struggling financially and becoming financially sound happens.

By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.

Here is an example:

You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.

One gentleman started with $5,000 in his trading account and now has well over $36,000 in a year. Just from practice and being consistent, he has learned that passive income is the way for him to increase his income and also not be a slave to his job.

Related Question: How Fast Can you Make Money in Stocks? The Real Answer

Tips to Live on $21 an Hour

In this last section, grasp these tips on how to live on $21 an hour. On our site, you can find lots of money saving tips to help stretch your income further.

Here are the most important tips to live on $21 an hour. An increase to $22 an hour is even better!

Highlight these!

1. Spend Less Than you Make

First, you must learn to spend less than you make.

If not you will be caught in the debt cycle and that is not where you want to be. You will be consistently living paycheck to paycheck.

In order to break that dreadful cycle, it means your expenses must be less than your income.

And when I say income, it’s not the $21 an hour. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which is $21 an hour minus all the taxes, FICA, social security, and Medicare is taken out. That is your net income.

So, your net income has to be less than your gross income.

2. Living Below Your Means

You need to be happy. And living on less can actually make you happier. Studies prove that less is better.

Finding contentment in life is one thing that is a struggle for most.

We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.

Have you ever taken a step back and looked at what you really need?

Once you are able to find contentment with life, then you are going to be set for the long term with your finances.

Here is our story on owning less stuff. We have been happier since.

3. Make Saving Money Fun

You need to make saving money fun. If you’re good, since you must keep your expenses low, you have to find ways to make your savings fun!

Save $5k in cash with the trending 200 envelope challenge.
Use one of the popular saving money charts to help you!
It could be participating in a no spend challenge for the month.
It could be challenging friends not to go to Target for a week.
Whatever it is challenge yourself.

Find new ways of saving money and have fun with it.

Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money and this is what you are doing.

Here are 101 things to do with no money. Free activities without costing you a dime. That is an amazing resource for you and you will never be bored.

And you will learn a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.

4. Make More Money

If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.

You need to be an advocate for yourself.

Find ways to make more money.

It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours. There are so many legit ways how to make 300 dollars fast today!

Whatever path you take, that’s fine. Just find ways to make more money. Period.

Can you imagine life earning a $100k salary?

5. No State Taxes

Paying taxes is one option to increase what you take home in each paycheck.

These are the states that don’t pay state income taxes on wages:

Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming

It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.

Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area. The higher taxes income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, the District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.

6. Stick to a Budget

You need to learn how to start a budget. We have tons of budgeting resources for you.

While creating a budget is great, you need to learn how to use one.

You do not have to budget down to every last penny.

You need to make sure your expenses are less than your income and that you are creating sinking funds for those irregular expenses.

Budget Help:

7. Pay Off Debt Quickly

The amount that you pay interest on debt is absolutely absurd.

Unfortunately, that is how many of these companies make their money is from the interest you pay on debt.

If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.

Here’s a debt calculator to help you. Figure out your debt free date.

Make that paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until week paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money. Set money aside in separate bank accounts and pay for cash for things.

It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt free journey.

Here are resources now for you to pay off your debt:

Jobs that Pay $21 an Hour

You can find jobs that pay $21 per hour. Polish up that resume, cover letter, and interview skills.

Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.

First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.

Possible Ideas:

Virtual Assistant – Get free training NOW!
Customer service representatives
Bank tellers
Freelance writers
Restaurant Kitchen staff
Truck driver
Uber /Lyft driver
Security guard
Movers
Warehouse workers
Pharmacy Tech
Welder
Forklift operator
Merchandiser
Call center agent
Nursing Assistant

Companies that pay more than $21 per hour:

Bank of America
USAA
Nationwide
Costco
Wayfair
Amazon
Best Buy
Target
Wells Fargo
Disney World
Disney Land
JP Morgan
Cigna
Aetna

$21 Per Hour Annual Salary

In this post, we detailed 21 an hour is how much a year. Plus all of the variables that can impact your net income. This is something that you can live off.

How much is 21 dollars an hour annually…

$43,680

This is right between $43000 per year and $44k a year. In this post, we highlighted ways to increase your income as well as tips for living off your wage.

Use the sample budget as a starting point with your expenses.

You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!

Still thinking I don’t want to work anymore, you aren’t alone and need to start to plan for your early retirement.

Learn exactly how much do I make per year…

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.

Source: moneybliss.org

Apache is functioning normally

June 19, 2024 by Brett Tams

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.

For many people, budgeting can be really tedious, and feel like it traps their freedom and spirit. While there are plenty of advantages of budgeting, it is nice to have one area of free-spending with money.

That is where a slush fund comes in.

A place to spend money with freedom and not worry about ruining your budget and the inability of not being able to reach your money goals.

When you work hard for your money, it is hard to be disciplined with your money every single step of the way.

You want to reward yourself and treat yourself! Specifically with no questions asked.

That is where the slush fund comes into play.

What is a Slush Fund?

The definition of slush money or pocket money is simple – money set aside to spend as you see fit.

A reserve of money set aside for an unknown and undetermined purpose.

Everyone will have their own meaning for their personal slush fund. That is because we all have ways we want to spend our little reserve of fun money.

And this one thing can save a marriage and many, many arguments!

Slush Fund Examples

Each person will have their own purposes for spending their fun money. Here are some slush fund examples:

Spa Treatments
Car Accessories
Lunch Dates
Helping others
Music or cable subscription
Golf outings
Happy hour fun
Crafting

Honestly, the best slush fund example is something both people do not want to include in their budget. It could be something they do not agree with, or the cost, or the need.

Did you know all of the names for the slush fund?!?! Call it what you want… the purpose is still the same:

Pocket Money
Spending Cash
Pocket Change
Allowance
Petty Cash
Kitty Fund
Chump change

Just pick your favorite name for it and understand it is money set aside to spend how you choose.

Regardless of what you call slush fund money, one meaning holds true.

It is a small amount of money earmarked for one person to spend as they choose.

How to Create a Slush Fund?

These are the four rules of slush fund money. It is not hard or difficult to create a slush fund.

You just need to decide in advance how a few line items we will cover shortly.

Nothing complicated. Pretty simple. You just need to follow them.

1. Agree on amount Given to Slush Fund

Every month or week a predetermined amount is given out for each person’s slush money. Remember, the slush fund meaning is their reserve of cash to spend or save as they deem fit.

In the Money Bliss Cents Plan, there are 3 lines dedicated to Slush Fund Money – His, Hers, and Kids.

Slush fund money is just as important for adults – probably more important than any age group.

Everyone in the household can have a little chump change to spend as they see fit. So many times, we hear of using pocket money for kids. However, very few people use it as adults.

2. Fun Spending Your Way – No Questions Asked

The biggest ground rule is no questions can be asked about how or why you spent your slush fund money in this or that way. Period.

Don’t test the boundaries. Respect the rule of no questions asked.

It is hard for a couple not to argue on every single line when they make a budget. So, agree on a slush fund amount and stop pestering the other party on how they spend their money.

3. Cash Only (Or Seperate Cashless Account)

Spending must be in cash. And cash only. At the very minimum, that chump change account is only used for your fun spending.

The temptation to overspend is way too great especially when it is spent on ourselves. Staying away from credit cards is necessary. Especially because it helps with #2 rule of no questions asked.

Here are great options to help you succeed:

4. No Judging

Human nature is quick to judge. Someone spent their money in a way you don’t agree with and you want to speak up to say something.

Not up to you to judge.

Slush money is meant for whatever you want to spend money on. This is not the time or place to be judging how to spend under $20-100 per month.

Plus – Don’t Be an Idiot

This isn’t the time or place to be sneaking behind your significant other’s back. If you are unable to honestly say how you spent the money, then you are on a slippery slope.

Honest and open communication is the key to success.

This isn’t an opportunity to start hiding your actions.

Bonus Tip for Kids –

***A side note on the Kid’s Slush Fund Money…this is how we introduce paying commissions to our kids for jobs done around the house.

That in itself is another post for another day. But, the same rule holds true, we can’t judge how they use their “spend” money.

Advantages of Slush Fund Money

There are many benefits of using a slush account when you are budgeting money. This is especially true at the beginning of your proper money management and budget journey.

You need freedom in your life if not you will be so constricted that you will not meet the smart financial goals you planned for yourself.

1. Agreed Upon Amount

First of all, the amount of money designated to each person’s slush fund money is set at the beginning of the month (or week). Everyone agreed to the budget, so no changing money in the funds.

Sit down and discuss what amount is doable based on your situation. This is based on your budget.

The key is to stick to the agreed amount of money. Use cash to stick to the agreed-upon amount.

2. No Arguments

Remember, no questions can be asked!

No judgments can be made!

A very simple way to steer clear of arguing. One person spends their money before the first week of the month is up – more power to them! Another person saves their slush fund money for a bigger purchase – high five!

There are bigger things to discuss in the journey to financial freedom than how someone spends their slush money.

Pick your battles.

Money is one of the leading causes of divorce. Save your marriage and use a slush fund account. That right there is one of the huge advantages of pocket money.

Related Post: How to Talk about Money with your Spouse

3. Breath of Fresh Air / Freedom

Many people find living in a budget or Cents Plan very constricting and overbearing.

This is why slush fund money is SO very important. It provides a breath of fresh air. A moment to spend money and not worry about the money spent.

Freedom to savor life’s little moments. Enjoy!

Especially if you are struggling to make ends meet, this is a big advantage of pocket money.

4. No Guilt

The last advantage of slush money is not carrying guilt. Regardless of how an adult decides to spend their pocket money, there is no guilty feeling about buying x, y, or z.

Remember rule #3 – no judging, you are free to purchase whatever your heart desires and not be overwhelmed by guilt.

Disadvantage of Slush Fund Money

After listing out all of the advantages of pocket money, you may be thinking there have to be disadvantages, right?

Honestly, the only disadvantage is it is one more category to track and separate out money.

However, that is menial given the advantages of slush money.

Related Post: Complete Guide to Sinking Funds; Why They are So Important?

Ready for Your Slush Account?

This is a key point to remember…

Regardless of where you are on your journey to Financial Freedom, slush fund money is utterly important.

The key to money is to build a strong foundation. That includes how you spend money, how you save money, and how you discuss money.

Even if you start at $5 or $10, you will begin to reap the benefits and advantages of pocket money. The small amount of money will change your perspective and how you relate to money.

As you get further in your journey, you can increase your slush amount to $100+ of fun money!

Just remember the rules of slush fund money in order to see the advantages in your household!

Further reading:

From all of the free and paid budgeting apps, here are our top budgeting apps to check out!

This section may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. Please read the full disclosure below.

Empower Personal Wealth, LLC (“EPW”) compensates Money Bliss for new leads. Money Bliss is not an investment client of Personal Capital Advisors Corporation or Empower Advisory Group, LLC.

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Source: moneybliss.org

Apache is functioning normally

June 19, 2024 by Brett Tams

A certificate of deposit (CD) can be a good option to consider as a savings vehicle for a child. With a CD, you can deposit money for a specific term, such as a few months to a few years, and earn a fixed rate of interest.

CDs are relatively safe investments; they are federally insured for up to $250,000, and can offer minimal but steady growth for a period of years.

An adult can open a custodial account for a child who will assume management of the CD account when they reach adulthood. However, there are some pros and cons you should know before opening a CD, including how CDs compare to other investment vehicles for your child.

Understanding Certificate of Deposits

A certificate of deposit is considered a type of savings account. The account holder deposits the funds and agrees not to withdraw the money for a specific period of time, in effect, loaning the money to the bank. The bank pays the CD holder interest based on the total amount deposited and the maturity date of the CD (the term).

You can open a CD at a bank or a credit union; this can be done in person or online. Most CDs are federally insured up to $250,000.

If the account holder decides to withdraw the funds before the end of the term, they are typically charged an early withdrawal penalty, often forfeiting a portion of the interest. For example, if you deposit $1,000 in a two-year CD, and you want to withdraw the funds after one year, you would only be entitled to the amount of interest earned up until that point, minus any fees or penalties.

CDs are generally considered a conservative investment, but the interest earned on a CD tends to be less than some other investments because CDs are lower-risk investments. When opening a CD account for a child, it’s important to consider whether the peace of mind and a lower return is what you’re after, or whether you’d like an investment that potentially offers more growth, but also possibly more risk.

Can a Child Have a Certificate of Deposit?

A CD for kids can be a solid start to an investment plan for your child. It’s also a way to help explain the dynamics of saving to them and what it means to earn interest on a principal deposit.

That said, minors cannot legally open CDs. An adult must acquire a CD for the child and then transfer it to them when the child reaches adulthood.

One thing to keep in mind about a CD for kids is that funds held in CDs and other savings accounts can affect a child’s eligibility for future financial aid. This is an important consideration, which could affect how much a family might pay for college tuition.

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Who Would Own the CD?

A minor cannot apply for a CD, but they do own it. That means that the account cannot be given to anyone else.

An adult, usually a parent or legal guardian, can open a custodial account for a minor under the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act, which is an extension of the UGMA. A custodial account allows one person to deposit funds into an account for another. The account can be transferred to the child once they reach adulthood. The age of adulthood is not federally mandated. However, in most states, it is age 18.

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How to Give a Certificate of Deposit to a Minor

Here’s how to set up a CD for a minor child, and transfer the account to them when they reach adulthood.

Select the Bank Where You Want to Purchase the CD

Explore bank account options and decide which bank or credit union you want to hold the CD for your minor child. Compare interest rates based on the amount you intend to deposit and the term for the CD. Also, look at any penalties and fees the bank might charge.

List Yourself as the Custodian and the Child as the Owner

Fill out the form online or in person stating that you will be the custodian and the minor will be the owner of the CD. You will be asked to provide identifying information such as your Social Security number and the child’s Social Security number.

Deposit the Money in the CD

Deposit the desired amount into the CD account, taking into consideration how different amounts and terms might affect the interest rate paid.

Discuss What to Do With the Funds

Opening a CD account for a child presents a “teachable moment,” in that the minor child, who is the owner of the CD, needs to think through what the money can be used for once the CD reaches maturity. When the CD matures, you can cash it out, or renew the CD. If the child is of legal age at that point, the account is transferred to the child. You may have to contact the bank to remove your name from the account.

Recommended: What Are No Penalty CDs?

Are CDs a Good Choice to Help My Child Save?

CDs are among the lower-risk investment options, and a good way to help a child save.

That said, CDs are also low-yield investments. If you are saving for your child’s education, funding a 529 college savings plan might offer more growth potential over time, if that’s your goal.

For longer-term savings, opening a Roth IRA may also be a good choice for parents hoping to provide financial security for their child.

Tax Implications of CDs for Kids

There are tax considerations to opening a CD for kids. Taxes are typically due on earnings when the CD matures, but a child will likely be in a lower tax bracket than an adult, so at least some of the earnings could be taxed at a lower rate.

The IRS taxes kids’ unearned income, such as interest, dividends, and capital gains, in tiers. In 2024, for a child with no earned income, up to $1,300 in unearned income is not taxed. The next $1,300 is taxed at the child’s tax rate. Any amount over $2,600 is taxed at the parent’s rate. So that is something to keep in mind.

The custodian of a CD should also be aware that they can give up to $18,000 in 2024 to a child without owing gift taxes.

Financial Aid Implications of CD Earnings

There are some implications of CD earnings regarding financial aid. If a child is applying to college and has savings in a UGMA, those assets will need to be disclosed on the Free Application for Federal Student Aid (FAFSA). It may be that the student will have to pay more of their college costs than if their money had been put in a 529 college savings account.

Is a CD a good investment for a child? That depends on the length of time between the opening of the CD account, and when the child reaches the age of majority. If the child is a teenager, a CD will provide a guaranteed amount of money, and there is no risk of loss if the market drops.

However, CDs don’t earn a lot of interest, and a growth-oriented investment might earn more and grow faster if the child is younger.

Finally, as noted above, if you are saving for the child’s education, you may want to explore a 529 college savings account, instead of or in addition to a CD for a child.

Where Can I Find a CD for a Child?

Most banks and credit unions offer CDs, and they allow custodians to open accounts for a child. Online banks can also be convenient. Many offer competitive interest rates and lower fees. Be sure to compare the interest rates and APY of each bank and make sure to understand the penalties that will apply if you withdraw the funds early.

The Takeaway

There are many ways to help your child save. Which one is the best depends on the ultimate use of the funds. CDs are lower-risk, they are federally insured up to $250,000, and they may offer higher interest rates than regular savings accounts. However, other options to consider are a 529 college savings account and a Roth IRA.

CDs are easy to open; most banks and credit unions offer these products. They earn interest on the amount invested as long as the funds are not withdrawn before the CD’s term. If the custodian does withdraw funds before the maturity date, the bank will charge a penalty.

Most online banks also offer CDs, and an adult can open a custodial account online for a child. The child is named as the owner of the account, and they will assume management of the account when they reach adulthood according to state laws.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

What is the best way to save money for a child?

The best way to save money for a child depends on your goals. Some options include a savings account or a custodial CD, a 529 college savings account, or a Roth IRA. Explore the options to determine which is best for your situation.

Can you buy a CD as a gift?

Yes. Under the Uniform Gifts to Minors Act (UGMA) and the Uniform Transfers to Minors Act (UTMA) an adult can gift a CD to a child.

Can I open a CD for my child?

Yes. Opening a CD account for a child is easy using a custodial account. The child will be named as the owner and you as the custodian. The owner (the child) will assume full legal ownership of the CD when they reach adulthood. The account cannot be given to anyone else but the named holder.

Photo credit: iStock/Hispanolistic

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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4.60% APY
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 recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit 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, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

As an alternative to direct deposit, 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.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

SOBK-Q224-1927439-V1

Source: sofi.com

Apache is functioning normally

June 19, 2024 by Brett Tams

The Carrington Companies has promoted Brett Wilbur to the position of chief information officer. He will succeed Brent Rasmussen, who will retire in early July.

It’s the second leadership change for the company this year. Wilbur will report directly to Andrew Taffet, the company’s chief investment officer, who was also tapped as CEO in March.

In his new position, Wilbur will oversee all information technology aspects of the company and continue to optimize its existing infrastructure and systems, Carrington said in a news release.

“During the past 17 years, I have had the privilege of working alongside Brett and witnessed his unwavering dedication, thought process and technical ability,” Taffet said in a prepared statement. “His understanding of Carrington’s vision and goals, along with his commitment to technical excellence, make him a perfect fit for the role.”

Wilbur, who joined Carrington in November 2006 as associate director, said the company is well positioned from an information technology standpoint.

Carrington’s primary business includes single-family mortgage asset management; mortgage origination in the retail, wholesale and correspondent spaces; servicing; and real estate sales and settlement services.

In the mortgage space, Carrington Mortgage Services provides nonqualified mortgages (non-QM), conventional loans and government-backed loans through the Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA) and U.S. Department of Agriculture (USDA) programs.

The company services loans in all 50 states and Puerto Rico. According to data platform Modex, Carrington originated $1.38 billion in mortgage volume in 2023 across 7,193 units. Year to date, its total mortgage production is $850 million.

The lender had 283 sponsored mortgage originators as of June 18, according to the Nationwide Multistate Licensing System (NMLS).

Apache is functioning normally

June 19, 2024 by Brett Tams

We may earn commission from links on this page, but we only recommend products we believe in. Pricing and availability are subject to change.

Daily mortgage rates for Tuesday, June 18, 2024 (mohd izzuan via Getty Images)

Average mortgage rates continue sliding lower for popular 30-year and 15-year terms as of Tuesday, June 18, 2024.

The current average interest rate for a 30-year fixed mortgage is 7.02% for purchase and 6.96% for refinance, down 10 basis points from 7.12% for purchase and 19 basis points from 7.15% for refinance last Tuesday. For homeowners looking to refinance to a 15-year term, the average rate is 6.49% — down 22 basis points from 6.71% over the past week. The average rate on a 30-year fixed jumbo mortgage is 7.17%.

Mortgage rates for Tuesday, June 18, 2024

30-year fixed rate — 7.02%
20-year fixed rate — 6.76%
15-year fixed rate — 6.43%
10-year fixed rate — 6.31%
5/1 adjustable rate mortgage — 6.69%
30-year fixed FHA rate — 6.86%
30-year fixed VA rate — 7.02%
30-year fixed jumbo rate — 7.17%

Mortgage rates for Tuesday, June 18, 2024

30-year fixed rate — 6.96%
20-year fixed rate — 6.77%
15-year fixed rate — 6.49%
10-year fixed rate — 6.32%
5/1 adjustable rate mortgage — 6.56%
30-year fixed FHA rate — 6.99%
30-year fixed VA rate — 7.62%
30-year fixed jumbo rate — 7.08%

Freddie Mac weekly mortgage report: Rates continue falling back

Freddie Mac reports an average 6.95% for a 30-year fixed-rate mortgage, down 4 basis points from last week’s average 6.99% for a 30-year fixed-rate mortgage, according to its weekly Prime Mortgage Market Survey of nationwide lenders published on June 13, 2024. The fixed rate for a 15-year mortgage is 6.17%, down 12 basis points from last week’s average 6.29%. These figures are higher than a year ago, when rates averaged 6.69% for a 30-year term and 6.10% for a 15-year term.

“Mortgage rates continued to fall back this week as incoming data suggests the economy is cooling to a more sustainable level of growth,” says Sam Khater, Freddie Mac’s chief economist, of the latest data. “Top-line inflation numbers were flat but shelter inflation, which measures rent and homeownership costs, increased, showing that housing affordability continues to be an ongoing impediment for buyers on the house hunt.”

Freddie Mac updates its Prime Mortgage Market Survey data weekly on Thursday mornings.

Mortgage rates for June 18, 2024

Mortgage rates are determined by many factors that include inflation rates, economic conditions, housing market trends and the Federal Reserve’s target interest rate. Lenders also consider your personal credit score, the amount available for your down payment, the property you’re interested in and other terms of the loan you’re requesting, like 30-year or 15-year offers.

Because mortgage rates can fluctuate daily, it’s best to lock in a rate when you’re comfortable with the overall conditions of your mortgage or home loan.

Mortgage rates in the news

Mortgage lenders keep a close eye on the benchmark federal funds target interest rate set by the Federal Reserve, the U.S.’s central bank. Called the Fed rate, it’s the benchmark that affects rates on deposit accounts, loans and other financial products. Typically, as the fed rate rises, so do APYs on savings products like CDs, high-yield savings accounts and money market accounts. Mortgage and home loan rates don’t follow the Fed rate as closely, but they do reflect the same elements the Fed evaluates when making decisions on the benchmark — especially inflation — which means as the Fed rate increases, mortgage rates also tend to rise.

The Federal Reserve increased the target interest rate 11 times from March 2022 to July 2023 in an effort to combat the highest inflation in four decades coming out of the pandemic.

June 12, 2024: Fed holds benchmark rate unchanged for seventh time since July 2023

At the conclusion of its fourth rate-setting policy meeting of 2024 on June 12, 2024, the Federal Reserve kept the federal funds target interest rate steady at a 23-year high of 5.25% to 5.50%, marking the seventh consecutive time the Fed’s held the benchmark rate unchanged since July 2023.

In its post-meeting statement, the Federal Reserve acknowledged “there has been modest further progress toward the Committee’s 2 percent inflation objective,” but also that the “economic outlook is uncertain, and the Committee remains highly attentive to inflation risks.”

The Federal Reserve is focused on a 2% inflation goal that’s ideal for keeping employment high and prices low. Despite speculation in March of three rate cuts by the end of the year, the Fed reiterated from its May statement that its rate-setting committee “does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.”

Officials now estimate one rate cut this year with an additional four cuts anticipated in 2025.

What to expect at the Fed’s July policy meeting

It’s too early to predict what the Federal Reserve will decide at its next policy meeting on July 30 and July 31, 2024, though officials have signaled a cut to the key interest rate later this year.

Inflation appears to be cooling, falling from a peak of 9.1% in June 2022 to rates that have ranged from 3% and 4% since May 2023. The Consumer Price Index released on June 12 revealed consumer prices rose 3.3% year over year, unchanged from 3.3% in April, which was celebrated as “unequivocally good” by economists and puts pressure on the Fed’s timetable for rate cuts. Producer Price Index data released on June 13 reports a 0.2% increase in wholesale prices — or the prices manufacturers pay to producers of goods and services — from April’s 0.5% increase, adding evidence to cooling inflation.

Adding to the good news is the June 7 jobs report that showed a surge in hiring, with employers adding 272,000 jobs in May — higher than the 175,000 positions added in March.

When asked at a post-meeting press conference whether new inflation data changes the timeline on rate cuts, Federal Reserve Chair Jerome Powell said while it’s “plausible” a cut could come as early as September, “We want to gain further confidence. Certainly, more good inflation readings will help with that.”

The Powell-led rate-setting panel will announce a rate decision at the conclusion of its meeting on July 31 at 2 p.m. ET.

NAR settlement offers ray of hope to summer homebuyers

While high mortgage rates could convince current homeowners to delay selling their properties, resulting in low housing inventory, a major change in the way Americans buy and sell homes may offer a ray of sunshine to prospective homebuyers. On April 23, a judge granted preliminary approval to a $418 million antitrust settlement with the National Association of Realtors that ends customary real estate broker commissions of up to 6% of a home’s purchase price starting in July. The settlement isn’t expected to affect mortgage rates, yet it paves the way for consumers to negotiate what they pay for an agent’s services, saving homebuyers money in the long run.

Dig deeper: When’s the next Federal Reserve meeting? The FOMC — and how it affects your finances

4 top factors that affect your mortgage rate

The difference of even half a percentage point on your interest rate can save you hundreds of dollars a month and thousands of dollars over the life of your mortgage, but the mortgage rate you’re ultimately offered depends on the mortgage you’re interested in, payments you’re willing to pay up front and your overall financial health.

Your credit score. Knowing your credit score can help you shop around for lenders you’re likely to get approval through, as well as understand the type of mortgage for your lifestyle and income. The best mortgage rates go to borrowers with good to excellent credit — typically a FICO credit score of at least 670 — though even with fair credit, you may be able to find a mortgage offering decent rates.
Your down payment. The more money you can put down toward your home, the better it benefits your interest rate. Paying at least 20% of your home’s purchase price up front generally results in a lower interest rate — and you can avoid mortgage insurance, which increases your total cost.
Your loan term. While the 30-year mortgage remains a popular way for Americans to purchase homes, you can find terms of 20 years, 15 years and 10 years. Shorter loan terms usually come with lower interest rates, though with higher monthly payments. Longer mortgage terms can result in smaller monthly payments, though you’ll pay higher total interest over the life of your loan.
Interest rate type. Mortgage rates come with two basic types of rates — fixed and variable. Fixed-rate mortgages offer a consistent interest rate over the life of your loan, whereas adjustable-rate mortgages (ARMs) often start with a lower fixed rate for an agreed-on time and then adjust to a variable rate based on market conditions for the remainder of your term. Choosing between these two rates depends on your financial goals and tolerance for risk.

Frequently asked questions about mortgage rates

What are mortgage lenders?

Lenders are financial institutions that loan money to homebuyers. A lender is different from a loan servicer, which typically handles the operational tasks of your loan, like processing payments, talking directly with borrowers and sending monthly statements.

What does it mean to refinance a mortgage?

Refinancing is a process of trading in your current mortgage to another lender for lower rates and better terms than your current loan. With a refinance, the new lender pays off your old mortgage and you then pay your monthly statements from the new lender.

What is an adjustable-rate mortgage?

An adjustable-rate mortgage — commonly called an ARM — is a type of home loan with a variable rate. Unlike a fixed-rate mortgage, which locks in an interest rate and predictable payments that apply over the full loan term, an ARM starts at an initial fixed rate for a period of three years or longer, after which it adjusts to a higher rate and then further adjusts periodically over the remaining life of the loan.

For a 5/1 adjustable-rate mortgage, the first number indicates the number of years at the fixed rate — or five years — and the second number indicates the rate at which the mortgage rate readjusts after — in this case, each year or annually.

Why are mortgage rates so high?

Mortgage rates are influenced by complicated factors like inflation, employment rates, the bond market and the overall economy. While the Federal Reserve doesn’t set mortgage rates, this central bank of the U.S. sets benchmark rates that indirectly affect rates on financial products like mortgages, personal loans and deposit accounts.

March inflation data came in higher than expectations, which is among the main concerns driving mortgage rates higher in April.

Can I negotiate my mortgage rate?

It’s not likely — lenders consider the market conditions and other financial factors when determining rates. You can, however, ask about how you can reduce costs in other ways when comparing mortgage lenders. For instance, many lenders offer lower rates in exchange for “mortgage points” — upfront fees you pay to your lender. A mortgage point could cost 1% of your mortgage amount, which means about $5,000 on a $500,000 home loan, with each point lowering your interest rate by about 0.25%, depending on your lender and loan.

Editor’s note: Rates shown are as of Tuesday, June 18, 2024, at 6:15 a.m. ET. APYs and promotional rates for some products can vary by region and are subject to change.

Sources

Primary Mortgage Market Survey, Freddie Mac. Accessed June 14, 2024.
Employment Situation Summary, U.S. Bureau of Labor and Statistics. Accessed June 7, 2024.
Consumer Price Index Summary, U.S. Bureau of Labor and Statistics. Accessed June 12, 2024.
Producer Price Index News Release summary, U.S. Bureau of Labor and Statistics. Accessed June 13, 2024.
Mortgage Industry Insights, Bankrate. Accessed June 18, 2024.

Source: aol.com

Apache is functioning normally

June 19, 2024 by Brett Tams

Looking for the best places to sell a wedding dress? If you want to sell your wedding dress online or near you, you have options! As wedding costs continue to rise, an easy way to make some extra money back is by selling your wedding dress. With the average wedding dress in the U.S. costing…

Looking for the best places to sell a wedding dress? If you want to sell your wedding dress online or near you, you have options!

As wedding costs continue to rise, an easy way to make some extra money back is by selling your wedding dress. With the average wedding dress in the U.S. costing a bride $1,800, selling your dress to recoup some money back makes sense.

If you’re looking to sell your wedding dress, you’ve come to the right place.

In today’s article, I’ll teach you:

How to sell your wedding dress
Where you can sell your wedding dress
If it’s better to sell your dress online or in person
Tips for getting the most money for your wedding dress

Recommended reading: How To Sell An Engagement Ring For The Most Money

10

This free workshop will teach you how to get into the flipping business. It will teach you how to resell furniture, electronics, appliances, and anything else you can find.

Why you should sell your used wedding dress

There are many reasons to part ways with your wedding dress including:

Recovering a portion of your wedding costs, which can be put toward a vacation or financial goals
Environmental benefits as this reduces waste and encourages reuse of things already made
Helping another bride afford a beautiful gown
Declutter your home and free up space

For many people, your wedding dress just sits in a closet for years. Instead, you may be able to free up some space and make some extra money by selling your wedding dress.

Are used wedding dresses worth anything?

Used wedding dresses are worth some cash, especially if your wedding gown is expensive and made of high-quality materials and craftsmanship.

Wedding dresses are often made to retain their beauty and integrity. Since these dresses are only worn once, brides see these dresses as a cheaper gown option.

Is your wedding dress from a well-known designer like Vera Wang, Oscar de la Renta, Monique Lhuillier, or Carolina Herrera? If so, your dress likely holds substantial resale value. These designer dresses are highly desired by brides who dream of a designer gown on a budget.

But, affordable dresses are worth something too! People buy used wedding dresses all the time, whether they are $50 or $5,000.

This is a great way to sell your stuff for cash!

Best Places To Sell A Wedding Dress

Here’s a list of the 10 best places to sell your wedding dress.

Recommended reading: 16 Best Places To Sell Clothes For Cash

1. Poshmark

Poshmark is a website for buying and selling secondhand items in the clothing, home decor, and beauty space. This online platform has a large customer base, helping you reach someone looking for wedding dresses.

Listing items on Poshmark is incredibly easy and convenient and can be done directly from your phone. Write a clear and descriptive title like ‘Vera Wang Lace Dress Size 8’ and a detailed description including things like brand, size, condition, details, and price. You can use relevant tags like “wedding dress” and the designer’s name to help the dress get seen by more people.

Poshmark provides a prepaid shipping label once the item is sold, and it’s your responsibility to properly package the dress so it gets to the buyer in excellent condition.

Selling on Poshmark does have fees since you are using their platform. For sales under $15, Poshmark takes a flat commission rate of $2.95. For sales over $15, you keep 80% of your sale and Poshmark’s commission is 20%.

2. eBay

Posting your wedding dress on eBay works similarly to Poshmark and you’ll reach international buyers. With eBay, you can choose to list your dress as an auction or at a fixed “Buy It Now” price. There’s also an option to accept offers which allows you to negotiate.

If you want extra help selling your wedding dress, you can promote your listings on eBay for an extra cost which will help your dress appear higher in search results.

eBay charges a fee when your item sells. For clothing, the fee is 12.9% of the total sale amount, including shipping, plus $0.30 per order. If you sell an item over $7,500, the final value fee is 12.9% of the first $7,500 total sale amount, plus 2.35% of the portion of the sale over $7,5000.

3. Still White

Still White is the world’s largest online marketplace for wedding dresses. They’ve sold over $97,000,000 in wedding dresses, making it one of the best places to sell your dress.

This is a great place to sell your wedding dress since brides are actively coming to this site to look for their dresses. Still White operates globally, meaning your dress can reach a large audience, helping you sell your wedding dress faster.

If you’re wondering how much you can potentially get for your wedding dress, Still White’s sell page has an estimate section where you put the designer, year, and condition of the dress, and get an idea for how much you can make.

For example, I entered my sister’s wedding dress into their estimator, and it said she could earn around $700 from her dress. Her dress is exactly 10 years old, too!

Still White charges a one-time listing fee of $20 and a premium option of $30, which includes added features like a featured listing. They do not take a commission on top of the listing fee. This platform also allows you to upload videos of the dress, which helps a buyer on the fence make a purchase quicker.

4. Nearly Newlywed

Nearly Newlywed is an online marketplace for selling new, sample, and used wedding dresses. This is a site where brides can come to find great deals and discounted prices on gowns.

To sell your gown on Nearly Newlywed, you submit your wedding dress through an online form. You’ll share details like the designer, size, condition, and photos of your wedding dress.

The Nearly Newlywed team reviews your submission to ensure it meets their criteria for dresses on their website. The listing fee for sellers is typically $20 with a 30%-40% commission fee once the dress is sold. This is much higher than other platforms, so keep this in mind. Nearly Newlywed also has a minimum list price of $375.

5. Vestiaire Collective

Vestiaire Collective is an online platform that specializes in buying and selling pre-owned luxury items. This platform has experts on staff to authenticate items so people know they’re getting the real thing. So, if your wedding dress is from a well-known designer, this may be the place to sell your dress.

This is how Vestiaire Collective works: You get started by taking pictures of your wedding dress, listing it, and they’ll recommend a price for you. Vestiaire Collective gives you a prepaid shipping label for you and is known to have the lowest selling fees on over 4,000 brands. This platform will find buyers for you and alert buyers to your item. Sales are final so you don’t have to worry about anyone returning your wedding dress.

6. Wedding Bee

Wedding Bee is a website primarily for wedding planning and inspiration. The platform has forums, articles, photo galleries, and vendor listings to get inspiration for your wedding. You can hear from other brides who already got married and learn DIY tips, ideas, vendor lists, and discussions on wedding-related topics.

While there’s not a specific part of the website for selling your wedding dress, you can browse forums to see if people are looking for used wedding dresses. You can share links to your wedding dress for people who are interested in buying a gown at a reduced price.

7. Craigslist

If you want to sell your wedding dress locally, Craigslist is a good option. Craigslist makes it easy to reach local buyers and sell to people in your city. This limits your pool of targeted buyers, but can potentially lead to a faster sale if you’re in wedding season and people are actively looking for a dress.

Selling on Craigslist is easy. It’s important to take high-quality, well-lit pictures of your wedding dress and even include pictures from your wedding day. Write a detailed description of your wedding dress including condition, size, designer, and any special features of the dress.

Make sure to meet the buyer in a public, well-lit, and safe location like a police station parking lot, mall, or coffee shop. Tell a friend you’re meeting a potential buyer and keep your friend or family member updated on how it’s going.

8. Local consignment shop

If you want a more hands-off approach and want someone else to handle the sale of your wedding dress, I recommend going to a local consignment shop near you.

Consignment shops handle the entire sale process for you, from marketing your dress to answering questions from potential buyers. Some consignment shops even specialize in selling preowned wedding dresses, so they can provide guidance on selling price and what to do to sell your wedding dress quickly.

Keep in mind that consignment shops do take a percentage of the profit since they are doing most of the hard work. However, this might not matter to you if you don’t want to spend time working on selling the dress. Working with a consignment store is also a great option if you’re trying to declutter space in your home and don’t want to communicate with buyers.

9. Preownedweddingdresses.com

Preownedweddingdresses.com is an online platform that sells new, used, and sample wedding dresses. To list your wedding dress on Preownedweddingdresses.com, there is a $25 one-time listing fee and they take 20% of the gross sale price. Free shipping and insurance are included and there’s a seller protection program as well. Besides wedding dresses, you can also sell your jewelry and other bridal accessories.

This online platform has bridal experts on staff to help you throughout the selling process. They’ll walk you step by step through listing your wedding dress, the actual sale, and the shipping process. Their experts also act as a mediator between you and the customer if any issues arise with your buyer.

10. Facebook Marketplace

Facebook Marketplace is a helpful online platform for selling and buying all kinds of things, including wedding dresses. You can reach people locally and all over the country, and you probably already have a Facebook account anyway, so it’s easy to start using.

When listing your wedding dress on Facebook Marketplace, make sure to include plenty of details in the description as this will help when people are searching for your dress. Add keywords to the description such as the designer of the dress, dress size, and any other special details to the dress like lace, open back, etc.

There can be scams on Facebook Marketplace, so take a few steps to protect yourself. Avoid wire transfers or prepaid credit cards and opt for safer payment methods like PayPal. Meet in a safe location that is well-lit and public. Trust your instincts. If something doesn’t feel right with the potential buyer, move on and find someone else to buy your wedding dress.

FAQ: Best Places To Sell Wedding Dresses

Below are answers to common questions about the best places to sell wedding dresses.

What is the best way to sell a wedding dress?

There are things you can do to help sell your wedding dress quickly and get the most money.

Use online marketplaces specifically geared to selling used wedding dresses. This includes sites like preownedweddingdresses.com and stillwhite.com. These sites are set up and ready for new brides looking for used dresses, and past brides looking to sell their dresses. You’ll get a targeted audience looking for used wedding dresses unlike Facebook Marketplace and Posh.

Take high-quality photos of your dress from multiple angles. Make sure to include close-ups of any fine details like lace, embroidery, or beading. It’s also a good idea to include photos of your wedding day wearing the dress, so potential buyers can see what it looks like on a body instead of a hanger. Provide measurements and respond to inquiries about your dress quickly.

Will a pawn shop buy my wedding dress?

Some pawn shops may buy your wedding dress, but this isn’t all that common. Pawn shops typically focus on items with larger resale markets like electronics, jewelry, and tools. Also, pawn shops have to make a profit so you might get significantly less than what you’d get on a used wedding dress site that resells dresses.

Can I sell my wedding dress to David’s Bridal?

David’s Bridal focuses on selling new inventory and does not sell used dresses. However, there is a Facebook group called David’s Bridal Resale with over 30,000 members. This group is specifically for reselling David’s Bridal items.

What is the best place to sell a wedding dress near me?

The best place to sell your wedding dress depends on where you live and your preferences. Generally, selling your wedding dress online will offer the most money. While local shops can provide a hands-on approach, online platforms like stillwhite.com and preownedweddingdresses.com are reaching people who want to buy used dresses.

Is it better to sell a used wedding dress in person or online?

Selling a wedding dress in person vs. online has its pros and cons. Selling online has benefits like a larger audience actively looking for a wedding dress with detailed listings and communication tools set up to get the sale done quickly.

Selling in person has benefits like cash payment, which can be nice if you want to avoid using online platforms and shipping logistics.

How long does it take to sell a used wedding dress?

The timeframe for selling a wedding dress depends on who designed your dress, the style, condition, price, and the platform you’re selling the dress. For some people, it takes just a few weeks to sell a wedding dress, whereas for others it might take a few months.

Dresses from well-known and sought-after designers like Vera Wang tend to sell faster, especially if the gown is in excellent condition. Keep in mind that factors like wedding season and demand play a role in how long it takes to sell a wedding dress. This is why it doesn’t hurt to post your wedding dress on multiple online platforms and in-person stores.

Best Places To Sell Wedding Dresses – Summary

I hope you enjoyed this article on the best places to sell a used wedding dress.

Selling your wedding dress has a ton of benefits including recouping wedding costs, helping the environment by producing less stuff, and helping a bride get a beautiful gown on a budget.

If you have a wedding gown sitting in the closet gathering dust, then you may want to try selling it for cash.

Many of the sites listed above aren’t a hassle to use, and many even have a commission rate.

Are you interested in selling your wedding dress?

Recommended reading:

Source: makingsenseofcents.com

Apache is functioning normally

June 19, 2024 by Brett Tams

Saving money can be a challenge, especially for those with a lower household income. To help individuals and families with lower incomes save, some financial institutions offer a type of bank account known as a micro saving account.

A micro savings account works similarly to a traditional savings account, but it’s designed for consumers who can only make small deposits. It can also be helpful for anyone else who finds that stashing away small amounts suits them. Regardless of your income, if micro saving suits your financial style, it can be a win-win.

What Is a Micro Savings Account?

A micro savings account (also sometimes seen written as microsavings account) is a savings account that can help meet the financial needs of consumers with smaller household incomes. It can also suit any saver who likes to tuck away small amounts here and there.

A micro savings account works a bit differently from how a savings account works at most financial institutions. Micro savings accounts typically don’t have a minimum deposit requirement, don’t charge service fees, and are more flexible regarding the possible amount of withdrawals.

Many financial institutions that offer micro savings accounts do so to incentivize consumers to save $1,000 a year by encouraging them to save just $20 a week. They often have educational initiatives in place to help guide micro savings account holders towards meeting this goal.

💡 Quick Tip: An online bank account with SoFi can help your money earn more — up to 4.60% APY, with no minimum balance required.

Benefits of Micro Savings Accounts

The following benefits are typically associated with micro savings accounts:

• Low-risk savings account that can earn interest

• Little to no upfront costs

• No credit checks required for new account holders

• Additional microfinance services such as microloans may be available for account holders

• Lower or fewer fees or no fees at all

• No minimum account balance requirements

• More flexible withdrawal limits

Disadvantages of Micro Savings Accounts

There aren’t any real disadvantages associated with micro savings accounts. That said, here are a few small downsides worth considering:

• Savings accounts tend to have a smaller return than other forms of investing (such as a CD vs. a savings account)

• Micro savings accounts can be harder to find than normal savings accounts

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Open a SoFi Checking and Savings Account with direct deposit and get up to a $300 cash bonus. Plus, get up to 4.60% APY on your cash!

What Are Micro Savings Accounts Used For?

Here’s a closer look at what micro savings accounts are typically used for.

Creating a Regular Savings Habit

Micro savings accounts can help savers boost their liquid assets at an incremental level while giving them the chance to earn interest on their savings. Financial institutions offer micro savings accounts to help encourage good saving habits. These accounts can help remove barriers to saving for those who can’t afford to put away a lot of money. They can also suit those who like to save a little money here and there.

Saving Money Consistently in Smaller Amounts

One of the ideas that drives micro savings accounts is the concept that consistently saving small amounts of money can add up and make an impact. It may not seem that worthwhile at first glance, but setting aside $10 a week can help make a difference. That sum can begin to build a savings fund that can help consumers meet their financial goals or avoid taking on debt when unexpected expenses arise.

Keeping Savings Separate

Storing money in a checking account makes it a lot harder to ignore when spending temptations arise. Keeping money stored in a savings account (where it can grow slowly but surely if not touched) can make it easier to keep it separate from spending money.

Maybe you are saving for a vacation or you need a new washer/dryer. Whatever your goal is, when you are ready to spend money from a savings account, the funds will be there for the taking.

Managing Money Through a Mobile App

Today, lots of people love the convenience of using apps for P2P transfers and other activities. That ease is available with the many micro savings accounts that can be managed through mobile banking accounts. These can make it simpler to monitor spending and saving.

There are also micro savings apps (like Acorns) that have automated savings features that make it easier to save small amounts of money.

Alternatives to Micro Savings Accounts

If you don’t find a micro savings account that meets your needs, there are alternative saving options that can offer similar benefits. Here are two options worth considering.

• Credit unions: Because credit unions are member-owned, unlike not-for-profit financial institutions such as banks, they tend to charge less fees and offer higher interest rates on savings. Applying to a credit union where you can consider opening a checking vs. savings account (or perhaps both) may be able to replace the purpose of a micro savings account.

• High-yield savings accounts: High-yield savings accounts work the same way that normal savings accounts do but they tend to have a much higher interest rate on deposits.

A high-yield savings account is a great way to take advantage of the power of compound interest and help your money grow faster.

These savings accounts can often be found through online banks. Because these institutions don’t have the overhead of brick-and-mortar locations, they may be able to afford to offer higher interest rates.

You don’t have to do anything differently than you would with a normal savings account to earn this extra interest. You can add small deposits as funds become available.

Recommended: A Guide to High-Yield Savings Accounts

The Takeaway

Saving money is hard and requires a lot of discipline. Micro savings accounts are designed to help those with lower incomes or who simply like to save little by little. These accounts typically allow you to make small contributions, charge fewer (or no) fees, and have lower minimum balance requirements. Having the right savings account can make it easier to meet your financial goals.

Another way to save successfully: Open a high-yield bank account.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

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FAQ

How do I create a micro savings account?

Creating a micro savings account works the same as opening any type of savings account. First, you will need to open a bank account or just the savings account by filling out an application and providing the necessary identifying information and documentation. Once you’ve opened the account, you can start making contributions to the micro savings account.

What are the advantages of micro savings?

The main advantages of micro savings accounts are rooted in accessibility: These accounts tend to have no or lower account fees, have smaller or no minimum account balance requirements, and have more flexible withdrawal options. They make it easy to save with small contributions. Many financial institutions that offer micro savings accounts also offer educational initiatives and mobile banking apps that make it easier to learn how to save more money.

Are micro savings apps worth it?

Yes, micro savings apps can be worth downloading, as they can make it a lot easier to achieve savings goals. Alongside making it easier to track spending and saving habits, micro savings apps even have automated savings features that make it easier to stash away small amounts of money.

Photo credit: iStock/princessdlaf

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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 recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit 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, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.