Save more, spend smarter, and make your money go further
As we ring in the New Year, financial resolutions top our to-do lists, from saving more to finding a new, better-paying job and getting out of debt once and for all.
As you map out your next money move, take heed of some of these top market and economic predictions for added guidance.
Higher Borrowing Costs
Looking to open a new credit card or apply for a mortgage this year? It may be wise to act sooner than later.
With the broader economy improving since the financial crisis (e.g. the national unemployment rate is hovering at 5%, down from nearly 10% in 2009), economists, including Janet Yellen, chairwoman of the Federal Reserve, believe it’s time for a tightening of monetary policy (translation: boost interest rates to curb inflation.)
Fortune Magazine’s “Crystal Ball,” says we can expect a three-quarter-point increase by next Thanksgiving to 1.25%.
When the Fed raises the overnight bank-lending rate (aka the Fed Funds rate) that typically has a domino effect on interest rates for other mainly short-term financial products like credit cards and car loans.
What this means for us? If you’re in the market to borrow money, I recommend reviewing your credit ahead of any applications to see what improvements (if any) are necessary. The higher your credit score, the better chances you have of achieving the lowest interest rates on the market.
If you’re seeking to refinance or buy a home this year, also aim to lock in a rate as soon as possible. While an increase in the Fed Funds rate isn’t necessarily a precursor to higher mortgage rates, we’re already seeing an uptick on 30-year home loans to above 4%. And Fannie Mae’s National Housing Survey shows that more than 50% of consumers think mortgage rates will continue to elevate over the next year.
Finally, for those of us with adjustable rate loans (e.g. some student loans and mortgages) we may want to pay off our debt more aggressively or refinance to a fixed-rate loan to put a lid on rising monthly payments down the road.
Less Sticker Shock in Housing
With home loan rates expected to track north, home values may see some cooling in 2017. That’s because when mortgage rates jump, demand for housing tends to slowdown, placing pressure on sale prices.
Not to mention, after riding a hot streak in recent years with prices across the country hitting near pre-recession levels, real estate experts at Zillow.com now predict a “normalizing” market with more moderate price growth of 3.6% across the country in 2017, compared to 4.8% last year.
Prepare for more affordability in areas that have experienced the steepest gains. In Los Angeles, for example, home prices have trended considerably higher in recent times (up 7.3% over the past year, alone). In 2017, though, the city can expect a tempering of home values to a growth of just 1.7%, according to real estate website Zillow.com.
As for rentals, after double-digit surges, rents in many large metro areas will also see slower growth in 2017, per Zillow. Rents across the country are expected to rise approximately 1.7 percent this year to about $1,429 per month, down from a 6% appreciation reported last year.
Partly to blame for the cool down in rent is a glut in inventory. Builders were very busy over the last few years, but the demand for new units in some hot neighborhoods like Brooklyn, N.Y. is failing short of supply.
As a result, some landlords at higher end luxury apartment buildings in that borough have been striking sweet deals with renters since last summer, The New York Times reports. For example, at 7 DeKalb, a new high rise in Brooklyn, “the landlord is offering two months of free rent with a 14-month lease, and use of the building’s fitness center and other amenities for a year without charge.”
That’s a good reminder to prospective renters everywhere that it can never hurt to negotiate, especially this year!
Have a question for Farnoosh? You can submit your questions via Twitter @Farnoosh, Facebook or email at [email protected] (please note “Mint Blog” in the subject line).
Farnoosh Torabi is America’s leading personal finance authority hooked on helping Americans live their richest, happiest lives. From her early days reporting for Money Magazine to now hosting a primetime series on CNBC and writing monthly for O, The Oprah Magazine, she’s become our favorite go-to money expert and friend.
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Should we worry? Home sellers are hitting it out of the park, a potentially ominous sign we’ve gotten a little too house happy again, this according to a new report from RealtyTrac.
The company’s data revealed that U.S. home sellers chalked an average gain of 17% in March, the highest of any month since December 2007.
Back then, home prices were quite lofty and it wasn’t long before the market nosedived. Yes, things are a lot different this time around, thanks mainly to a cleaner stable of mortgages, but it’s still somewhat worrisome.
I don’t think this housing rally is over yet, but we might be getting closer to the end of the positive portion of the current cycle.
RealtyTrac noted that home sellers on average sold their homes for $30,500 more than what they purchased them for. The largest gains were seen in San Francisco (72%); San Jose (60%); Boulder (53%); Prescott (51%); and Los Angeles (48%).
Many other markets saw gains at twice the national average, including Denver (42%); Portland (40%); Austin (40%); Seattle (38%); Baltimore (38%); Riverside-San Bernardino (37%); San Diego (36%); and Sacramento (35%).
More Than a Third of Housing Markets Have Hit New All-Time Highs
RealtyTrac senior vice president Daren Blomquist said home sellers in many parts of the country are seeing average gains “close to or above” those experienced in the prior boom.
And the median sales price has reached a new all-time high in 36% of markets nationwide, including Boulder, Denver, Portland, Fort Collins, Austin, Greeley, and Cincinnati. Four of those markets are in the state of Colorado.
Nationwide, the median sales price was $210,000 in March, a nine percent increase from February and an 11% rise from a year earlier. March was also the 49th consecutive month of year-over-year home price increases. I’m guessing we’ll hit 50 next month…
After all, we are still eight percent below the $228,000 peak seen in July 2005, and chances are we’ll pass that and then some. Factor in inflation and maybe home prices aren’t as high as they appear.
The biggest year-over-year winners included Philadelphia (+29%); Rockford, Illinois (+22%); Jacksonville (+22); Cincinnati (+19%); and Deltona-Daytona Beach-Ormond Beach, Florida (+18%).
It’s Not All Rosy
Despite an overall uptrend in much of the nation, some 17% of housing markets from coast to coast actually lost value in the past 12 months.
This bad list includes Washington, D.C. (down 7%); San Francisco (-2%); Baltimore, Maryland (-6%); Pittsburgh (-4%); Virginia Beach (-2%); Birmingham, Alabama (-5%); and Tulsa, Oklahoma (-1%).
In San Francisco, a 47-month winning streak has been broken, and in Pittsburgh a 21-month streak has come to an end. You can blame affordability concerns for that, along with an increase in distressed sales.
Sellers were cutting their losses in another 15% of housing markets, with Rockford, Illinois (11% average loss relative to purchase price) the leader in that department. Interestingly, homeowners there have seen some of the biggest gains in the nation over the past year. But sellers still decided to move on.
Other losers included Winston-Salem, North Carolina (10% loss); Cleveland, Ohio (8% loss); Columbia, South Carolina (7% loss); and Wilmington, North Carolina (5% loss).
Smaller losses were seen in bigger metros such as Milwaukee, Chicago, Cincinnati, Birmingham, and Flint.
Those who sold last month had owned their properties for an average of 7.67 years, up four percent from the 7.37-year average seen a year earlier.
Remember, most folks don’t hold onto their homes very long so you can make an argument for a 7/1 ARM instead of a fixed product. Of course, everyone always thinks they’ll stay longer.
Where We’re At Now
It appears as if a lot of homeowners are happy to either break even or sell for a small loss after so many years of being underwater on the mortgage.
There are probably lots of investors cashing out as well after holding for just a few years. And of course we’ve got the flippers buying, renovating, and cashing in.
But I don’t think we’re at another market peak just yet. Yes, there are affordability concerns and hearing about new all-time highs gives me shivers down my spine.
Just because we’re hitting new highs doesn’t mean prices can’t go any higher. And as mentioned, you have to factor in inflation to the numbers. If they’re adjusted for inflation they’re still far off the real all-time highs.
Of course, you could argue that the previous all-time highs were absurd, driven by crappy mortgages, and completely unsustainable.
So where does that leave us? Well, my personal opinion is that with rents so high and unattractive, and many would-be homeowners still getting back on their feet (and Millennials beginning to believe in housing again), we’ve got more home price growth to come.
However, the bulk of the gains have already been realized. I think the gains will continue to defy estimates for a little while, kind of like how mortgage rates continue to stay low despite wrong forecast after wrong forecast.
But like rates, there will come a time soon when things finally shift. Even if home prices do kind of plateau, as some have said, buying is still a better deal than renting in many areas of the country. That tells me there’s more upside for a while, though as the data shows, it will vary widely by market.
I first read about the envelope system back in college. I used it regularly, but after graduating and paying off my debt, I sort of abandoned it. I’d gotten a hold of my finances, and I figured I could budget safely without having to use this tactic. I could afford to give myself a break.
Then, last month, I realized just how much of a break I’ve given myself over the years, especially when it comes to food. Upon examining my expenses for the year, I complained to Brian:
“Hey, why am I always paying when we go out? I know it’s the 21st century, but come on!”
“What are you talking about?” he argued. “I always pay!”
“Then why did I spend upwards of $400 this month?” I asked.
“I don’t know, but so did I.”
“No,” I argued. “There’s no way we spent a grand on food in just four weeks.”
Turns out, we did. We’ve been spending a ridiculous amount on food and groceries. And while it hasn’t put us in the poor house, it’s still a waste. It’s a waste because there are things we want to save up for — a house, maybe. Who knows if that’s what we’ll want in a few years? But when we get there, it would be nice to know we have the option and didn’t squander it on burgers and beer.
“We’ve got to start using the envelope system,” I declared.
“What’s the envelope system?” Brian asked.
“We take a set amount of cash from our paychecks and stuff it an envelope,” I explained. “And that’s the only money we can use on groceries and dining out.”
“I don’t like it.”
Brian doesn’t enjoy frugality as much as I do. For him, it’s more of a means to an end. Still, he knew it was the right thing to do if we wanted to stop spending like maniacs.
It’s been almost a month since I’ve returned to the envelope system. Here’s what I’ve learned (and re-learned).
I Overestimated My Frugality
I forgot how much power tangibility has. I stopped using the envelope system years ago because, as I mentioned, I was earning more and was financially independent. My debts are paid, I have an emergency fund and, each month, I auto-deposit into my retirement and savings accounts. All of this convinced me that I was on top of my finances; I didn’t really question my thrift. And maybe I had a good hold on my finances, but I also spent $400+ on food in one month. In fact, in one week, I’d spent $90 on groceries and another $80 on restaurants.
And hey, sometimes in life, things happen and maybe you do spend crazy money like that. Or maybe you really love food, and you earn enough to spend money on what you love. But the thing is, I didn’t even think twice about it. Oh, sure, I noticed I was blowing my budget a little every now and then. Life happens. A friend comes into town one month; I throw a party the next. But I was blowing my budget by the hundreds on a regular basis, and maybe I was in denial, but I failed to admit that.
Being restricted by cash helped me understand how liberal I was being with my debit card.
Expect the Unexpected
This week, we had a couple of friends unexpectedly come into town. They wanted to go out and enjoy the city, and we wanted to show them around. Of course, dinner was involved, because you can’t come to Los Angeles without eating Umami Burger.
“We just won’t go out this weekend,” I told Brian. He argued that their visit shouldn’t come out of the envelope money, as it was unexpected. We talked about it for a while and eventually realized that most of our overspending is usually due to the unexpected: A friend comes into town. It’s someone’s birthday. We have to bring a pie to an impromptu potluck. The things that don’t happen every month keep happening every month. Thus, when we calculate our food budget, we should expect the unexpected.
Planned Splurges Are More Enjoyable
A couple of Saturdays ago, we headed downtown with some good friends. These friends know where all the best spots are to eat, drink and play. We knew we were going to spend money, so before we left, we talked about how much cash we should bring. We decided on $60. Taking out $150 every Friday, this would give us $90 for the week, which should be plenty.
Going out that day, we were conservative with our money. We still enjoyed each spot we visited, but we didn’t spend carelessly, as we knew the $60 would have to last us the entire day. We were more conscious of what we wanted to spend money on. This kept me from ordering cheese fries when I wasn’t even that hungry to begin with. Under the old system, I would’ve ordered the fries without thinking about my budget. Under the old system, my budget was something I dealt with later — I already spent $240? Okay, then I’ll try to only spend $10 for the rest of the month. But using cash made the budget something I had to consider as I was spending. This made budgeting much more effective. No kidding, right?
That day, we held back enough to enjoy the most delicious bowl of ramen later that night. I’d been looking forward to that Ramen all day. Knowing that we planned for this splurge made it all the more tasty.
Leftover Money Feels Awesome
This week, we’ll actually have $12 left over. It’s just $12, but the fact that we stayed within our budget feels great — because it wasn’t hard. We didn’t go out as much, and when we did go out, I ordered less food. I only paid money for things I really wanted. And I don’t feel any different; I don’t feel as if I missed out on anything.
I thought it would be painful to return to the envelope system. It’s a little surprising that spending less has been so easy.
Another thing I learned: it’s important to make a regular habit of looking at the big picture when it comes to my finances. I assumed I was being a good little saver who just had a few occasional unexpected expenses. I didn’t take a step back and consider that I was being haphazard about my spending.
These days, I’m in a much better financial position compared to my college days. The ramen I eat now is a little more sophisticated, a little more expensive. My lifestyle and savings goals now are different than they were in college, but the envelope system works just as well now as it did back then.
California is home to hundreds of top-notch universities and colleges, including the California Institute of Technology, Santa Clara University, Stanford University and the University of California, Los Angeles or UCLA.
With so many higher education options, it’s no surprise that 3 million students attend college in California. While the cost of education in California can be expensive, the state operates various financial aid programs that can make higher education more affordable. From grants and scholarships to free college financing workshops, there are many resources California residents can use to pay for school.
The cost of education in California
California’s higher education system comprises three public segments: the University of California, California State University and California Community Colleges. Students can also choose from 150 private nonprofit schools and 160 for-profit schools.
If you are planning to attend a post-secondary school in California, here is how much you should expect your education to cost, according to data from the National Center for Education Statistics:
Public four-year school: The average cost of attending a public four-year school as an in-state student in California for the 2020-2021 school year was $24,015, including tuition, fees, room and board — nearly 13% higher than the national average.
Private non-profit school: Private schools are much more expensive than public institutions. The average cost in California is $53,680 — nearly 16% higher than the national average.
Public two-year school: The average cost of public two-year schools for in-state students was $1,285, less than half the cost of the national average.
Although those prices may be intimidating, keep in mind that you may not have to cover the entirety out of your pocket. You may be eligible for financial aid programs that reduce the cost.
Financial aid options in California
Regarding state-based financial aid, California stands out for its robust programs. From grants and scholarships to student loan repayment programs, students can qualify for a significant amount of assistance.
You must be a state resident to qualify for California’s financial aid programs. The residency criteria depend on your age and marital status.
If you are under 18, you must meet one of the following requirements:
Your parents must have been legal California residents for one year before the year in which you are applying for financial aid.
You have a parent in the U.S. Armed Forces, stationed in California and on active duty when you enroll.
If you lived with another California resident who is not your parent, you must have lived with them for at least two years.
If you are married or over 18: Married persons, regardless of age, and unmarried persons 18 or older must establish their own residency. You must live in California for at least a full year before applying for financial aid and show proof that you intend to make California your permanent home. Potential proof includes:
California driver’s license.
Mortgage statement for a residential property in California.
Active California bank account.
Voter registration card.
California car registration and insurance.
State income tax return.
California utility bills.
Under the California Dream Act, undocumented students and Deferred Action for Childhood Arrivals, or DACA, recipients can qualify for state financial aid, including in-state tuition rates. To qualify, students must meet the following requirements:
Three or more years of full-time attendance at a California high school, adult school or community college.
Three or more years of full-time high school coursework and attended a combination of elementary, middle and high school for three or more years.
As a California resident, you may qualify for one or more of the following financial aid options:
529 plans.
In-state tuition.
Scholarships.
Student loan repayment assistance.
California 529 Plans
Unlike some states, California does not have a prepaid tuition plan. However, it does have a 529 college savings plan called ScholarShare 529. Under this program, parents and family members can invest money on behalf of a child. The money can grow and deliver compound earnings over time, and withdrawals for qualifying education expenses are tax-free. You can open an account with any dollar amount; the maximum balance is $529,000.
Contributions to ScholarShare529 are not tax-deductible on federal or California income taxes. But California does offer one unique benefit: the CalKIDS program. Through this program, children born on or after July 1, 2022, or who attend an eligible low-income public school within the state will receive a seed deposit to pay for their future education.
Qualifying newborns will receive up to $100 in seed deposits, and low-income students will receive up to $1,500.
California In-State Tuition
Public universities are generally much less expensive than private schools, but only if you attend a school within your state. However, California participates in programs that may allow California residents to attend select colleges in other states and pay a lower rate than out-of-state tuition cost.
Western Undergraduate Exchange: Through the WUE, eligible California residents will pay no more than 150% of the college’s in-state tuition rate. On average, savings total $10,895 per student.
Western Regional Graduate Program: WRGP allows graduate students to pursue master’s or doctoral degrees at partner universities and pay no more than 150% of the in-state tuition rate.
Professional Student Exchange Program: The PSEP program is for students pursuing careers in specific healthcare fields. It allows them to attend school at partner schools at a lower rate. Eligible students can save between $34,100 and $133,600 throughout their programs.
California Grants
California has six major grant programs available to college students:
Cal Grant Program
The Cal Grant program is for qualifying residents attending the Universities of California, California State Universities, California Community Colleges or eligible independent colleges or technical schools.
There are several awards within the Cal Grant program, but students don’t have to apply for each individually. Instead, the state determines your eligibility for each based on your responses on the Free Application for Federal Student Aid, or FAFSA, or the CA Dream Act Application, household income, the schools you list on your application and whether you’re a recent high school graduate.
Cal Grant Community College Entitlement: Low- to middle-income students can receive assistance with tuition and fees at a California community college. Low-income students also may qualify for an additional award for living expenses.
Cal Grant High School Entitlement: This award is for low- to middle-income high school seniors and recent high school graduates. Students can use the grant to pay for their enrollment at two- or four-year schools. In addition, low-income students can qualify for an additional award for living expenses.
Cal Grant Transfer Entitlement: Students who intend to transfer from a California community college to a four-year school may qualify for this award. Low-income students may be eligible for an additional award for living expenses.
Cal Grant Competitive Awards: This award is only for students who do not receive an entitlement grant. It is a competitive award based on the student’s GPA, parent’s education level, family income and household size. Only 13,000 awards are issued per academic year.
Cal Grant Foster Youth: Current or former foster youth can qualify for this grant until their 26th birthday. It can help pay for up to eight years of undergraduate education.
Cal Grant C Award: Students who intend to attend technical or vocational schools can receive up to $2,462 for tuition and fees and up to $547 for tools, books and supplies.
California Chafee Grant for Foster Youth
Current or former foster youth can qualify for up to $5,000 through the California Chafee Grant for Foster Youth program. The money can be used toward your expenses at a qualifying California college, university, career or technical school.
California College Promise Grant
According to the Public Policy Institute of California, approximately 40% of California’s high school graduates enroll in community colleges — the fourth-highest percentage in the nation.
One of the reasons for the popularity of community colleges in the state is the California College Promise Grant. This grant waives student enrollment fees at eligible schools, and students can use other financial aid programs to cover the cost of textbooks or living expenses.
California Dream Act Service Incentive
The California Dream Act is for undocumented and DACA students attending school in California. Under the California Dream Act Service Incentive, students can get up to $4,500 per academic year in grants. To qualify for this award, students must complete at least 150 hours of community service or volunteer work for an eligible organization per semester.
The California Military Department GI Bill Award Program
This GI Bill program pays up to 100% of the tuition and fees at the Universities of California, California State Universities or a California community college for qualifying members of the California Army or National Guard, California State Guard or the California Naval Militia.
Golden State Education and Training Grant
The Golden State Education and Training Grant is a one-time award of $2,500 for Californians who lost their jobs due to the COVID-19 pandemic. It can be used to learn new skills or get additional training to reenter the workforce.
Law Enforcement Personnel Dependents Grant
The Law Enforcement Personnel Dependents Grant is for the spouses and dependent children of employees who lost their lives in the line of duty or were totally and permanently disabled due to an accident or injury caused by violence or force while on duty. Eligible employees include:
Department of Corrections and Rehabilitation.
Department of Corrections and Rehabilitation, Division of Juvenile Justice.
Firefighters.
Law enforcement.
Tribal firefighters
As of the 2022-2023 academic year, qualifying students can receive up to $9,358 per semester.
California Scholarships
In California, some students may qualify for the Middle Class Scholarship. Under this program, students pursuing a teaching credential with less than $201,000 in family income and assets may be eligible for this award. Scholarship amounts vary by school and student.
California Incentive Programs
California instituted education incentive programs to encourage residents to live and work in the state — particularly in areas with shortages of health care professionals or educators. Students can receive money for their education in exchange for committing to working in high-need areas for a specific period.
If the student fulfills their obligation, the award is treated as a grant and does not need to be repaid. However, if the student doesn’t complete their service term, the award is converted into a loan and must be repaid.
California has the following incentive programs:
Golden State Teacher Program
The Golden State Teacher Grant Program awards up to $20,000 to students currently enrolled in a professional preparation program approved by the Commission on Teacher Credentialing and working toward their preliminary teaching credential. In exchange, participants must commit to working at a priority California school for four years within eight years of completing their program.
California Department of Health Care Access and Information Incentives
Through the HCAI, students and graduates pursuing careers in health care — including dentists, mental health counselors, nurses, pharmacists, physicians and social workers — can qualify for up to $25,000 for their education if they make a 12-month service commitment to work in a qualifying facility in an underserved area.
Other California Programs
Besides its scholarships, grants and incentive programs, California also offers Cash for College Workshops. Families can attend and get one-on-one assistance with completing the FAFSA or the California Dream Act Application.
Student loan repayment programs in California
If you’re a California resident and have outstanding student loans, you may be eligible for repayment assistance through the state. To address worker shortages, the state will repay a portion of your loans. In return, you must commit to working in high-need areas for a specific period.
The following student loan repayment assistance programs, or SLRAP, are available in California:
Health care professionals
Health care providers can qualify for a substantial amount of money to repay their loans through the following HCAI programs:
Allied Healthcare
Eligible health care providers who commit to 12-month service obligations in approved counties and sites can get up to $16,000 in loan repayment assistance. Federal and private student loans are eligible for repayment.
Bachelor of Science Nursing Loan
Registered nurses with BSN degrees can get up to $15,000 in loan repayment benefits in exchange for a 12-month service commitment in a medically underserved area. Federal and private student loans are eligible for repayment assistance.
California State Loan Repayment
Through the California State Loan Repayment Program, eligible health care professionals can receive up to $50,000 for an initial one-year service obligation in a federally designated health care professional shortage area. Practitioners can qualify for up to $50,000 in additional assistance by committing to another three years. Both federal and private student loans are eligible for repayment assistance.
County Medical Services
Primary health care professionals at approved county medical services sites can receive up to $50,000 for an initial one-year term. An additional $50,000 is available for working for another three years. In addition, both federal and private student loans can qualify for repayment assistance through the County Medical Services program.
Licensed Mental Health
Licensed mental health providers can qualify for up to $30,000 in loan repayment benefits. In exchange, they must complete a 24-month service obligation. The funds can be used to repay federal or private student loans.
Licensed Vocational Nurse
Licensed vocational nurses in good standing with the California Board of Vocational Nursing and Psychiatric Technicians can qualify for up to $8,000. They must commit to working for at least 12 months providing direct patient care in an approved facility. Federal and private students are eligible for repayment assistance.
Steven F. Thompson Physician Corps
Physicians and surgeons can receive up to $105,000 in loan repayment benefits if they work for at least three years in a qualifying facility providing direct patient care. Through the Steven F. Thompson Physician Corps, you can use repayment assistance to pay off federal and private student loans.
Veterinarians
Like many states, California has a shortage of licensed veterinarians, leading to long waits for pet and livestock owners. As a result, the state has a loan repayment program to encourage veterinarians to practice within California.
California Veterinarian Shortage
Qualified veterinarians in California can get up to $25,000 per year (up to a maximum of three years) for student loan repayment by committing to working in high-priority veterinary shortage areas. Under the California Veterinarian Shortage program, veterinarians must care for food or large animals, practice in rural areas or work in public service. This program can be used to repay federal or private student loans.
How to apply for financial aid in California
To apply for California-specific financial aid, follow these steps:
Make a note of deadlines: The federal FAFSA deadline is June 30, but California’s deadlines are much earlier. The FAFSA or California Dream Act Application — and grant verifications — must be submitted by March 2.
Complete a GPA Verification: Work with your school counselor to complete the GPA Verification Form. Email the completed form as a PDF to [email protected].
Create a Web4Grants Account: After processing your FAFSA or California Dream Act Application, you will get an email telling you to create a Web4Grants account. You’ll use this account to upload additional information and view your grants.
Check for other instructions: Some California-specific financial aid opportunities, such as the California Chafee Grant for Foster Youth and the Golden State Teacher Grant, have their own applications and requirements. Review the program’s website through the California Student Aid Commission to see what steps to take for these awards.
Frequently asked questions
Who qualifies for free community college in California?
In California, students can qualify for a waiver of community college enrollment fees if they meet the following requirements:
They are California residents or qualifying undocumented or DACA recipients.
They are full-time students.
They are first-time college students.
Are undocumented or DACA students eligible for financial aid in California?
Under the California Dream Act, undocumented students and DACA recipients are eligible for state financial aid, including state grants and community college waivers. They also qualify for in-state tuition rates at California public universities.
Is the FAFSA required to qualify for California financial aid?
To qualify for California financial aid, you must complete the FAFSA or, if you don’t have a valid Social Security number, the California Dream Act Application.
What is the FAFSA deadline for California?
Although the federal FAFSA deadline for the 2023-2024 academic year is June 30, 2024, California has separate deadlines to keep in mind. Most state financial aid programs had a deadline of March 2, 2023.
While price is important to many people, you might also want to consider other factors when choosing an auto insurance company. The best car insurance policy looks different for everyone and will depend on your needs, lifestyle and financial responsibilities. To see which car insurance company might provide the best fit and options for you, here are some steps you can take.
Consider minimum insurance requirements in California
California requires drivers to carry at least minimum levels of liability insurance coverage on their vehicles to drive legally in the state. This includes the required minimum amounts of bodily injury liability and property damage liability coverage. According to the California Department of Motor Vehicles, all California motorists must carry at least:
$15,000 in bodily injury liability coverage per person
$30,000 in bodily injury liability coverage per accident
$5,000 in property damage liability per accident
California also requires that insurance companies offer you uninsured and underinsured motorist bodily injury coverage, along with uninsured motorist property damage, but you can decline in writing if you do not want to have them. Understanding California’s car insurance laws can help you understand if you need additional coverage or higher limits.
Consider lender requirements
If you finance or lease your vehicle, you may need to purchase a car insurance policy that complies with your financial institution’s requirements. For example, collision and comprehensive insurance are typically optional coverage types, but if your car is financed, most lenders will require you to purchase them. This is commonly known as a “full coverage” policy. Your financial institution may also require you to purchase higher liability limits, especially if you lease your vehicle. You might also want to consider gap insurance, which is designed to pay the difference between your vehicle’s actual cash value and the loan or lease amount if your car is totaled or stolen. According to the Insurance Information Institute (Triple-I), it is typically cheaper to purchase gap insurance from your insurer instead of from an auto dealer.
Consider your individual needs
Every driver has a different set of auto insurance considerations. You might live in an area where traffic and tourism are heavy, like Los Angeles or San Francisco, have a teen driver to insure or maybe have a few accidents or moving violations on your driving record. Based on your unique needs, it could make sense to have collision coverage and comprehensive coverage, uninsured motorist coverage or towing and rental reimbursement. Understanding your individual coverage needs might help you narrow down the companies you request quotes from. Households with teen drivers might look for companies with specialized young driver discounts, for example.
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Home is no doubt where our mama’s heart is. Let’s celebrate her with home decor gifts that remind her of the people she loves most. Whether it’s practical day-to-day items like a fresh new set of towels or personalized gifts like a print of her kiddos or grandkids, these gifts for the home decor enthusiast will spruce up her space while thanking her for a job so well done.
We curated these gifts from our new favorite app, Ibotta, which has hundreds of cash back offers on everything from home decor items to groceries to beauty and fashion gifts, even gift cards! Earn real cash back (no points here) while you shop your favorite brands like Target, Sephora, H&M, Trader Joe’s, Container Store and much more. Give the gift that makes mom feel loved and her space feel just a little more charmed with these $60-and-under ideas!
Lucky Seven Wall Art ($58)
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Print your favorite photos on sustainably sourced canvas and make a collage of mom’s favorite little and big people. Nothing like a photo gift to remind her that all the hard work is paying off.
Stackers White Classic Jewelry Box Collection ($18-$40)
Earn up to 5% cash back when you shop with Ibotta!
Jewelry is big around Mother’s Day and birthdays. Help her keep it all protected in this modular box that’s all velvety inside (with vegan leather outside) and keeps all her jewels intact.
OAKE Ethicot Bath Towel ($14)
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Baths are a mom’s best friend. Treat her to a set of new cotton towels in her favorite hues so she can feel all warm and cozy coming out of one!
Society6 Los Feliz Pillow ($28)
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Throw pillows are a fun way to change up your decor for the season. Find tons of modern, even quirky, prints to suit your mom’s style personality.
Voluspa Mini Candle Set ($48)
Earn 2% cash back when you shop with Ibotta!
Send her on a sensory vacay with these mini scented candles. Depending on her mood, she can choose from Barbados Grapefruit, Tahitian Coconut Vanilla, Kalahari Watermelon and French Cade Lavender.
LUCID Comfort Collection Weighted Blanket ($54)
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A mom needs her sleep (beauty or otherwise). Give her a great big hug in the form of a weighted blanket, which can help reduce anxiety and acts as a sleep aid by soothing her to sleep.
Flower.com Lady in Pink Peony ($60)
Earn 10% cash back when you shop with Ibotta!
Flowers are the more traditional gift route but can still brighten a mom’s day, especially if her favorite petals are in season. Send a pretty bouquet on her big day to boost her mood and decor.
Chevron Seagrass Belly Basket ($15)
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Every decor lover has a basket problem – they’re the perfect clutter busters! These seagrass baskets are roomy enough for things like cleaning supplies, toys, media, and blankets – and don’t cost a pretty penny.
Black+Decker Cordless Drill and Charger ($47)
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Creative moms who like to DIY will love this gift that puts the power in her hands to take on projects around the house. It’s lightweight and cordless, making it the perfect power tool for small projects like hanging art and putting furniture together.
Wayfair Gift Card ($25+)
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Know your decor-loving mom needs a lamp or rug or something specific, but you want to give her the chance to choose? Ibotta offers cash back on loads of gift cards too, including Wayfair, Lowe’s, Michaels, Crate & Barrel, Macys and more!
All offers were valid as of publish date. Check your Ibotta app for details, as offers change frequently and may not be available in all areas.
Brit + Co may at times use affiliate links to promote products sold by others, but always offers genuine editorial recommendations.
I’ve been talking about down payments a lot lately, thanks to all the new zero down mortgages and 1% down loan options that sprang out of nowhere in the past few weeks.
It seems every lender out there is beginning to introduce a lower and lower down payment requirement to get homeowners in the door. And it might be out of necessity, not just convenience.
The brains over at Realtor crunched some numbers to determine what it would take to come up with the average down payment in America’s 15 top cities and the results weren’t very welcoming.
Perhaps that explains the resurgence of all these low-down payment mortgage programs.
Can You Set Aside $68 a Day for Five Years?
I’ll start with my own beloved city, Los Angeles, where the typical down payment is 17%. In order to squirrel away enough cash for an 83% LTV mortgage, you’ll need to set a daily savings goal of $67.95.
Yes, instead of spending money every day on gas, groceries, lattes, Uber, healthcare, and so forth, you’ll need to sock away $68 for five straight years while still paying all your bills and living your lavish lifestyle.
Only then will you have the average down payment, roughly $125,000, needed to buy a $678,000 median home price. Oh, and that median is rising…
Of course, as I mentioned, there are plenty of loan programs that require a lot less than 17% down, including the many 1% down options surfacing, the 3% down mortgage option widely available, and of course FHA, which only requires 3.5% down.
You can also get a USDA loan if it’s in a rural area and come in with no down payment at all.
So there are options here, assuming you’re able to convince the seller in a hot market that you’ll get approved for a mortgage over someone else willing to put 20% or more down (or simply pay for the house with cash).
Assuming you can’t muster $68 in savings daily, you can stretch out the down payment goal to a full decade and save $33.97 per day instead.
By then home prices might just be on sale again, you never know.
Ready to Save $100+ a Day to Buy in SF?
The scary part is that Los Angeles isn’t even the least affordable city in the nation. If we drive or fly (or take a hyperloop) north to San Francisco, a prospective home buyer will need to save $104.46 per day for five years to come up with the average 21.8% down payment.
Again, that’s if home prices stay put and don’t just keep on rising to the stratosphere. And even then, you’ll still have to compete with a million other home buyers just to get your offer accepted.
That might explain why some banks are offering unique loan options, such as the POPPYLOAN, to high-paid workers who may not have the necessary funds for a large down payment at the moment.
If you want to take things a little slower, you can save $52.23 per day for 10 years and accomplish the same thing. Heck, 2026 might be a great year to finally buy a home!
It’s Not All Bad News
While I touched on some of the more unattainable cities across the nation, or perhaps across one state, there are still bargains out there.
In Detroit, you only need to save $13.14 per day for five years to come up with the 12% down payment needed to buy a median priced home valued at $200,000.
If you extend the timeline to 10 years, the daily saving goal drops to just $6.57. That seems pretty reasonable.
And it will only set you back $15.57 per day for 1,825 straight days to buy a home in Philly, or $7.79 per day for 10 years.
Chicago is fairly reasonable as well, with daily savings of $19.44 required for five years, or $9.72 per day for 10 years.
If that all sounds too cold for you, Phoenix homes can be had for daily savings of $20.14 for a period of five years. Or just $10.07 if you save for a decade.
The takeaway here is that buying a home isn’t an overnight decision, even if there are loan programs out there that seem to make it so.
If you’re a parent, you could start socking away some cash each day/month for your kid so they can move out eventually…
Frank Lloyd Wright is undoubtedly one of the most influential architects of all time.
A champion of organic architecture, a philosophy he promoted throughout his career that focuses on the harmony between human living and the natural world — incorporating buildings into their surroundings — Lloyd Wright designed more than 1,000 structures in his lifetime, out of which 532 were actually built.
Credited with building some of the most innovative spaces in the United States, Frank Lloyd Wright’s most famous works include the Solomon R. Guggenheim Museum in New York, the striking Fallingwater in Mill Run, Pennsylvania, Taliesin West in Scottsdale, Arizona, Hollyhock House in Los Angeles, California, Robie House and the Illinois Unity Temple in Oak Park, Illinois, the Tokyo Imperial Hotel in Inuyama, Japan, and the famous Blade Runner-featured Ennis House.
But of the hundreds of architecturally distinct homes he built in the span of his 70-year career, Lloyd Wright’s own home in his native Wisconsin has the most interesting — and downright tragic — backstory.
While undoubtedly one of the legendary architect’s best works, Frank Lloyd Wright’s Taliesin house was the site of a gruesome attack that took the life of Wright’s girlfriend and her two children.
It also burned to the ground (more than once), growing bigger every time the architect had to rebuild it. So let’s take a look at the storied history of Taliesin.
What is the story of Taliesin, Frank Lloyd Wright’s personal home in Wisconsin?
The American architect was born and raised in the Driftless Area of Wisconsin, which left a lasting impression on his young mind and inspired many of his most iconic works.
At the age of 29, in 1896, Wright built a windmill on the Taliesin estate, on land that belonged to his mother’s family.
The project, requested by his aunt, was the first in a series of developments that over the years became part of the 600-acre Taliesin estate as we know it today.
Wright would return to his homeland of Taliesin in 1911, under more controversial circumstances.
In the early 1900s, Wright was married to Catherine Lee Tobin, had six children, and was living in Oak Park, Illinois.
He was then tasked to design a house for his friend and neighbor Edwin Cheney when he fell in love with his friend’s wife, Mamah Borthwick Cheney.
In a daring and controversial move, the two lovers ran off to Europe, where their affair flourished, and when they returned to the U.S., they wanted a place to call their own, far from the judgmental eyes of the public.
That’s when Frank Lloyd Wright decided to leave his Chicago family behind, return to his roots and build a house for himself and Mamah in the secluded hills of Taliesin.
Frank Lloyd Wright’s Taliesin I — the “love cottage” with a harrowing story
Lloyd Wright’s Taliesin I, as we now call it, was completed in 1911 near Spring Green, Wisconsin, to serve as the home of Wright and Borthwick.
The earliest known image of Taliesin I, taken in the winter of its construction in 1911-12. Southwest elevation. Photo credit: Henry Fuermann and Sons, Public domain, via Wikimedia Commons
The home/studio that Wright created is the quintessential representation of the architect’s Prairie School design.
Wright described the 12,000-square-foot house as ‘low, wide, and snug,’ and that’s exactly what it is.
The house, which was named after the Welsh bard Taliesin — and translates into ‘radiant brow’ — was the result of Wright’s attempt to blend man-made structures and materials with nature and the elements.
The house had an open-space design, with windows placed so that the sun could come through in every room at every point of the day.
A closer look at Taliesin, WI, though it’s worth noting that the original house was significantly smaller. Photo credit: Stephen Matthew Milligan, CC BY-SA 3.0, via Wikimedia Commons
All the materials used in the construction were locally sourced, in an effort to seamlessly integrate the house with its surroundings.
Wright was a big fan of Japanese culture and architecture, and he was inspired to bring a taste of Japan to Taliesin, as well. The architect’s home included an artificial lake stocked with fish and aquatic fowl, a water garden, as well as a ‘tea circle’ in the middle of the spacious, green courtyard.
The home that Wright built was stunning, and to this day it remains one of his most beautiful creations.
The beauty of Taliesin, however, did not do much to impress those living in nearby communities, who disapproved of Wright’s relationship with Borthwick.
At the time the couple lived in Wisconsin, Borthwick had divorced Cheney, but Wright was still married, as Catherine Tobin refused him a divorce. Due to the scandalous aspect of their relationship, locals and media dubbed Taliesin ‘the Love Cottage.’
Nonetheless, the couple lived happily at Taliesin, joined by Mamah Borthwick’s two children and a number of household workers and employees.
Among those employees were Julian Carlton, a handyman and servant, and his wife Gertrude.
In 1914, the 31-year-old worker started acting strangely, becoming more and more paranoid and staring out the windows holding an axe. Given his strange behavior, Wright and Borthwick decided to let the couple go, and they gave Carlton and his wife notice in mid-August.
The events that followed the next day, on August 15, 1914, were so shocking that Taliesin will unfortunately forever be associated with them.
That August day, while Wright was away on business, Julian Carlton attacked Mamah Borthwick and her two children, ending their lives.
He then turned against the other members of the household, after which he set the house on fire.
His killing spree ended the lives of Borthwick, her two children, as well as two other workers and their young boy.
Frank Lloyd Wright (left) surveys damage after the Taliesin I attack in 1914. Photo credit: Albert Rockwell, Public domain, via Wikimedia Commons
Following the attack, Carlton hid in the basement’s fireproof furnace and swallowed hydrochloric acid in an attempt to end his own life. Somehow, he survived, and he was arrested and taken into custody.
While awaiting his trial and sentencing, he died of starvation, as the acid he swallowed had burned his esophagus to the extent that he could no longer eat.
Carlton’s wife was luckily not in the house at the time, as she was waiting for her husband to join her on a train to Chicago.
Taliesin II – Frank Lloyd Wright rebuilds his Wisconsin house
Taliesin I was, in large part, destroyed, and Frank Lloyd Wright was left heartbroken, losing the love of his life and the beloved home that they shared.
He was so devastated that he couldn’t even bring himself to hold a vigil or a formal funeral for Borthwick, instead burying her in an unmarked grave in a nearby graveyard.
However, Wright soon got back on his feet and decided to rebuild Taliesin.
Sketches of Taliesin WI. Photo credit: See page for author, Public domain, via Wikimedia Commons
By the end of 1914, he had built Taliesin II, and had found companionship in Miriam Noel, who sent him a condolence letter after that summer’s massacre.
Wright, however, only settled in at Taliesin II in 1922, after he finished work on the Imperial Hotel in Tokyo.
RELATED: Frank Lloyd Wright’s Ennis House also known as The Blade Runner House
He was finally granted a divorce by Catherine Tobin, and married Miriam Noel in 1923. The marriage, however, was doomed to not last, as Noel’s erratic behavior, later diagnosed as schizophrenia, led to a tense relationship between her and Wright.
Noel eventually left Wright and moved out of Taliesin II in 1924. One year later, in an eerie turn of events, Taliesin II burned to the ground due to faulty wiring, and Wright was back to square one.
However, like a phoenix, Taliesin would rise from the ashes once again.
Taliesin III – Wright rebuilds it once more, but the costs drive it into foreclosure
Even after two fires tried to destroy his work, Frank Lloyd Wright was not ready to give up on Taliesin, and he rebuilt it once again, as Taliesin III.
Each time the architect had to revamp Taliesin, the house grew bigger.
In its third and final form, Taliesin featured 37,000 square feet, and all the buildings on the estate combined totaled no less than 75,000 square feet on 600 acres of land.
Inside Taliesin, arguably the most impressive of Frank Lloyd Wright’s houses. Pictured here: the living room of the imposing property. Photo credit: Stilfehler, CC BY-SA 4.0, via Wikimedia Commons
The third reconstruction of Taliesin did, however, create a pretty big dent in Wright’s pockets, and he was severely in debt at the time work on Taliesin III was finished.
In 1927, the Bank of Wisconsin foreclosed on the property, and the architect moved to La Jolla, California, forced to leave his beloved hilltop home behind.
His fans and students, however, devised a plan to have the revered architect reunited with Taliesin.
Darwin Martin, a former client of Wright’s, formed a company dubbed Frank Lloyd Wright Inc., to issue stock on the architect’s future earnings. Various other clients and students purchased stock and ended up successfully bidding on Taliesin for $40,000, giving it back to Wright.
SEE ALSO: The Chemosphere House and 6 other striking John Lautner-designed homes
Thankfully, the innovative design and historic importance of Taliesin were recognized by Wright’s clients and admirers, and the efforts to preserve and keep the estate alive paid off.
In January 1976, Taliesin was named a National Historic Landmark District by the National Park Service. More than three decades later, Taliesin was one of the buildings included in The 20th Century Architecture of Frank Lloyd Wright, a UNESCO World Heritage Site featuring a selection of eight buildings designed by the architect across the U.S.
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Today, Taliesin is a historical and architectural gem, and Frank Lloyd Wright fans can visit the estate on professional, guided tours.
If you’re an architecture fan, a student, or design aficionado and you’re ever traveling near Spring Green, Wisconsin, you don’t want to miss out on the chance to visit Taliesin.
Frequently asked questions
Where is Taliesin?
Frank Lloyd Wright’s house in Wisconsin, Taliesin, is located at 5481 County Road C, Spring Green, WI 53588, USA, about 2.5 miles south of the village of Spring Green in the Driftless Region of southwestern Wisconsin.
What does the word Taliesin mean?
Taliesin is a gender-neutral name of Welsh origin, meaning “radiant brow” made famous by a 6th Century Welsh bard who is said to have performed at the courts of three different kings. Lloyd Wright reportedly named his house in Wisconsin Taliesin to signal that was “of the hill,” not on it, building it below the hillcrest, on its brow rather than its crown.
Did Frank Lloyd Wright rebuild Taliesin?
The legendary architect had to rebuild his Taliesin house in Wisconsin twice. The first time was in 2014 after a gruesome attack by employee Julian Carlton who ended the lives of Wright’s then-girlfriend, Mamah Borthwick and her two children, and then set the house on fire. The second time was in 1925 when Taliesin burned to the ground due to faulty wiring.
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A new bill written up by California Assemblymember Bob Blumenfield (D-San Fernando Valley) calls for a $20,000 fee to be charged to banks for every foreclosure they carry out in the state.
Aimed at reducing foreclosures in the hard-hit region, Assembly Bill (AB) 935 would fine mortgage lenders or loan servicers $20,000 per foreclosure in the form of a “foreclosure mitigation charge,” creating incentives to offer loan modifications or refinance alternatives.
Blumenfield said each foreclosure costs the local governments an average of $20,000 in the form of public safety calls and arrests, unpaid property taxes, inspections, trash removal, lawn maintenance, and other expenditures.
Each borrower loses some $7,000 in fees, and each foreclosure lowers neighboring home values by one percent.
The bill would supposedly generate up to $16 billion over the next two years, as nearly 800,000 foreclosures are expected in the Golden State.
So where would the money go?
AB 935 wound send 20 percent of the proceeds to K-14 public education, 20 percent toward public safety, 20 percent to redevelopment activities, 20 percent to cities and counties to pay for mitigating the effects of foreclosures on communities, and 20 percent toward small business loans.
California has seen more foreclosures than any other state, and is expected to see two million homes go through the process between 2008-2012.
This translates to roughly $632 billion in lost home value, $3.8 billion in lost property tax revenue, and $17.4 billion in costs borne by local governments.
For Los Angeles County during the same period, 381,000 foreclosures are expected, resulting in $150 billion in lost home value, $918 million in lost property taxes, and $2.8 billion in maintenance costs to local governments.