Holiday travel can be taxing even without the added stress of disruptions such as cancellations, flight delays or lost bags.

Last winter, Southwest Airlines’ holiday travel meltdown left millions of travelers stranded and angry. Travelers were still filing for compensation for ruined trips weeks later. Consumer complaints against U.S. airlines to the Department of Transportation in February 2023 increased sixfold compared with February 2019, forcing the agency to temporarily stop reporting more data as it processes complaints.

Despite the chaos, holiday travel shows no signs of slowing down this year. About 50% of Americans plan to pay for flights or hotel stays this holiday season, according to a NerdWallet survey conducted by The Harris Poll in September among over 2,000 U.S. adults. They will be referred to as “2023 holiday travelers” going forward.

More than a third of 2023 holiday travelers (35%) say they will keep their usual holiday travel plans this year, regardless of expense. And given the rising cost of gas, a quarter (25%) of those traveling say they’re flying rather than driving.

If you’re determined to get your dose of festive cheer, you may wonder if it’s worth paying extra for travel insurance this year. The survey found that 21% of 2023 holiday travelers plan on buying or have already bought travel insurance for their holiday trips, up from 16% last year.

Is flying truly worse?

The post-pandemic travel surge is real. But has the flying experience honestly gotten worse? Let’s take a look at the numbers.

The Department of Transportation releases reports on the performance of the 10 largest airlines and their marketing carriers. An analysis of data through June 2023 (which, it should be noted, doesn’t capture the complete picture of summer travel) by the U.S. PIRG Education Fund found:

• The number of airline passengers for the first half of 2023 increased by 11%, to 419.2 million, compared with 2022. That’s almost back to 2019 pre-pandemic levels (419.7 million).

• On-time performance for flights in June fell to 71.3%, worse than a year ago. The on-time rate for the first half of 2023, at 76.5%, was slightly better than in 2022, but worse than in 2019.

• Flights are fuller this year than they were before the pandemic. More than 419 million passengers traveled in both the first half of 2023 and the first half of 2019. There were, however, fewer flights operated in 2023 — nearly 3.5 million compared with nearly 3.9 million in 2019 — meaning the same number of travelers had fewer flight options.

• The flight cancellation rate in June fell to 2.1%, better than a year ago. The cancellation rate for the first half of 2023, at 1.6%, was half of what it was in 2022 and better than in 2019.

So, while travel returns to pre-pandemic levels, travelers have fewer flight options. Given those gloomy statistics, travel insurance is at least worth considering this year.

Insurance aside, one way to lower the risk of disrupted travel is by adjusting when or how you fly. Nearly 2 in 5 2023 holiday travelers (35%) in the NerdWallet survey plan to avoid busy travel days by extending the duration of their holiday trips.

» Learn more: The busiest days to fly during the winter holidays

What type of travel insurance should you get?

The type of insurance you should buy depends on a few factors, including:

• Whether your trip is nonrefundable.
• Where you’re going.
• If your credit card has built-in protection.
• What your health coverage is at the destination.

Let’s assume you’re traveling domestically and already have health insurance coverage. Depending on your age and health, you may not have to pay extra for medical coverage. Note that only some travel insurance policies cover pre-existing conditions.

Some travel credit cards offer basic trip cancellation or interruption, baggage delay coverage and rental car coverage up to a certain dollar amount. If you think the options your credit card provides are good enough, you won’t need additional coverage.

If you don’t have a credit card with built-in protection or the limits aren’t high enough for you, look into buying a stand-alone travel insurance policy.

You can opt for the trip insurance your airline offers, buy it directly from an insurance provider or get it via an online travel agency such as Expedia. You can also compare quotes from travel insurance marketplaces you can find online. The cost of your policy will depend on the details of your trip.

Flying home for the holidays may not get any better this year, but having travel insurance could give you some comfort during your trip.

The article Should You Buy Travel Insurance for Holiday Travel? originally appeared on NerdWallet.

Medicare beneficiaries can buy Medicare Supplement Insurance, or Medigap, to help cover certain out-of-pocket costs associated with Medicare Part A and/or Part B. (If you’re shopping during Medicare open enrollment, Oct. 15 to Dec. 7, remember that people with Medicare Advantage can’t buy Medigap plans.)

For example, depending on which plan type you choose, a Medigap policy could cover the 20% Medicare Part B coinsurance for office visits and the $1,600 deductible before Medicare Part A starts to pay for inpatient hospital care.

Medigap policies are sold by private health insurance companies. They’re regulated by the federal government and have certain standard benefits. But shopping for them isn’t always straightforward.

Shoppers might expect higher prices to come with more benefits, but that’s not always the case. Here are three scenarios to watch for so you don’t end up paying too much.

1. Paying more for the same coverage

New Medicare beneficiaries in most states can choose from up to eight out of 10 letter-named Medigap plan types: A, B, D, G, K, L, M and N. Each plan type offers a different set of benefits. (Medigap Plans C and F aren’t available to new Medicare members.)

“One of the most common and popular counseling tips we provide is that all plans of the same letter, i.e., A, B, C, D, are exactly the same. So there is no reason to pay more for one Plan A, B, C, D, over another,” Maureen McIntyre, CEO of Connecticut’s North Central Area Agency on Aging, which offers free Medicare counseling for local residents, wrote in an email.

It’s worth comparing quotes for the plan type you want. Companies might differ in terms of customer service and minor non-Medicare perks, but there’s no additional coverage to gain from buying a more expensive Plan G policy when a cheaper one is available, for example.

2. Paying more for less coverage

Of the eight standard Medigap plan types available, Plan A has the most basic benefits and Plan G is the most comprehensive.

One might expect Plan A to cost less than other plan types with more coverage. But sometimes lower-coverage plans are priced higher.

For example, for a 65-year-old female nonsmoker in Chicago, Cigna quotes monthly premiums of $152.06 for Medigap Plan G and $169.33 for Medigap Plan A, with identical discounts built into both rates. The lower-coverage option (Plan A) costs $17.27 more per month.

“While it is not typical for Plan A plans to be rated higher than Plan G, we recognize that this can sometimes happen, due to the actuarial experience and cost relativities related to those plans,” a Cigna spokesperson wrote in an email.

Plan A might have higher premiums if the insurance company expects members with Plan A to have more expensive claims, even though Plan G has more coverage, according to the Cigna spokesperson.

Representatives for State Farm, Mutual of Omaha and Blue Cross and Blue Shield of Texas offered similar explanations for instances when their quotes showed Plan A priced higher than Plan G.

When you’re shopping, your own budget is what matters, so compare prices carefully to find the most cost-effective option.

3. Paying too much for add-ons

Some companies offer add-ons for purchase with their Medigap plans. For example, UnitedHealthcare’s “wellness extras” packages include access to a 24/7 nurse line, vision, hearing and dental discounts and a gym membership. (In some locations, these perks are included at no additional cost.)

Sometimes adding these packages might have unexpected effects on the price of the plan.

For example, here’s what it costs to add UnitedHealthcare’s wellness extras — the same package — to two plans for a 65-year-old female nonsmoker in Dallas:

• Plan G: $6.62 per month ($133.22 for the base plan, or $139.84 with extras).

• Plan A: $174.80 per month ($130.81 for the base plan, or $305.61 with extras).

These extras might be compelling with Plan G, but the drastically higher price to add the same perks to Plan A is a much worse deal.

On the other hand, there are also scenarios when add-ons make the whole package cheaper.

In Columbus, Ohio, UnitedHealthcare quotes $91.71 per month for Medigap Plan A for a 65-year-old female nonsmoker. But Plan A with wellness extras costs $87.23 — $4.48 cheaper. Even if you never use any of the extras, Plan A with the add-ons would still be a better deal than the option without them.

This article was written by NerdWallet and was originally published by The Associated Press. 

The article Watch for These 3 Medigap Shopping Surprises to Avoid Overpaying originally appeared on NerdWallet.

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

Many companies try to help their workers to save for retirement. Employers often offer 401(k)s, company matches and automatic enrollment to encourage saving.

Much of that effort goes to waste, though, when employees leave. A study published last year in Marketing Science, a peer-reviewed research journal, found more than 40% of departing workers cashed out at least part of their 401(k)s, and most of those drained every dime.

What’s more, employers may bear at least some of the blame, according to researchers Yanwen Wang of the University of British Columbia, Muxin Zhai of Texas State University and John Lynch Jr. of the University of Colorado.

The study, titled “Cashing Out Retirement Savings at Job Separation,” suggests generous company matches can make cashing out more tempting.

Cash-outs drain future retirement security

The researchers examined records of 162,360 employees who left jobs at 28 employers between 2014 and 2016. Of the 41.4% who cashed out retirement savings, about 64% took all the money out in one transaction, while 21% emptied their accounts with two or more withdrawals.

The people who took money out had smaller balances — $15,271 on average — compared with those who left their accounts in the employer plan ($69,546) or who rolled their savings into an IRA or a new employer plan ($67,353).

The damage from any 401(k) withdrawal is significant, however. Cash-outs trigger taxes and penalties that often equal 30% or more of the withdrawal, plus the loss of future tax-deferred compounded returns. Every $1,000 withdrawn at age 35 can mean about $8,000 less in retirement funds at age 65, assuming 7% average annual returns. So a $15,000 withdrawal could mean $120,000 less at retirement age. (The younger you are, the greater the damage; the same $15,000 withdrawal at age 25 could mean $240,000 less at retirement.)

Cashing out once is bad enough, but multiple job changes could lead to workers repeatedly draining their accounts, Wang says. The median job tenure, or time employees typically remain with an employer, is about five years, according to the Employee Benefit Research Institute. That can give workers many opportunities over a working lifetime to raid their retirement savings.

“Ultimately, you might be only left with the very last pile of money you accumulated from your job,” Wang says.

Necessity doesn’t drive most retirement plan cash-outs

Sometimes a premature withdrawal is the best of bad options. People may have pressing expenses and no other savings.

But relatively few workers cash out savings while they’re working, whether through hardship withdrawals or 401(k) loans that aren’t paid back, Wang says. And previous research shows that most people who cash out when they leave a job don’t need the money for emergencies or other pressing expenses, she says.

Wang’s team hypothesized that the composition of account balances might help explain why people cash out. Thanks to a behavioral quirk known as mental accounting, people tend to treat different pots of money differently, depending on the source. So we may be more likely to spend a $20 bill found on the street versus one that we earned on our own.

The researchers wondered if something similar happens when more of an account balance comes from employer matches versus employee contributions. Would people be more likely to see their 401(k) money as a windfall to be tapped rather than a resource to be protected? The researchers found that yes, bigger matches did influence cash-outs: A 50% increase in a company match raised the probability of a cash-out by 6.3%.

That’s not the only way our mental biases get us in trouble, Wang says. When people leave jobs, they’re typically told their retirement plan options — leave the money in the plan, roll it into an IRA or a new employer’s plan, or cash out. Often, though, they’re not given much guidance about the best course to take. Simply mentioning the cash-out option may make people more likely to see the money as a windfall, Wang says. Plus, cashing out may seem like the easiest course if people aren’t warned about the cumulative impact of withdrawing retirement money and aren’t sure whether or how to roll the money over.

How employers can counteract the temptation to cash out

The answer to reducing 401(k) “leakage” isn’t to discourage rich company matches but to encourage employers to understand and counteract the temptation to cash out, Wang says. Companies could provide financial education to departing employees, explaining the long-term impact of withdrawing retirement money prematurely.

“If they really care about their employees, they should provide more information,” she says.

Another option could be for the employer to offer separate emergency savings accounts in addition to retirement plans. That would give departing workers a source of funds to tap without penalty if they needed money. Having distinct accounts labeled for different purposes — “emergencies” versus “retirement” — could help people view their retirement savings as a resource for the future rather than a windfall to be spent today, Wang says.

This article was written by NerdWallet and was originally published by The Associated Press.

The article Does a 401(k) Employer Match Tempt You to Cash Out? originally appeared on NerdWallet.

The holidays are fast approaching, and the time to book holiday flights is even closer. But as travelers securing end-of-year trip reservations begin to reach for their wallets, another payment option is on the table.

A growing list of airlines offers travelers the chance to buy expensive flights now and get an interest-free loan to pay off the purchase in smaller monthly installments. These “buy now, pay later” financing options are available through third-party providers, like Affirm, Uplift, Klarna or PayPal Credit, directly on the airline’s checkout page.

Almost 1 in 5 holiday travelers (about 18%) plan to use a buy now, pay later service to pay for their holiday travel expenses, according to a NerdWallet survey conducted by The Harris Poll in September among over 2,000 U.S. adults. For the purposes of the survey, holiday travelers were defined as people who plan to spend money on flights/hotels for 2023 holiday travel.

Buy now, pay later is a way for holiday travelers to finance the $1,947 they plan to spend on holiday flights and hotels this season, according to NerdWallet’s findings. This is an increase of more than 23% from last year’s holiday travel spending ($1,582 on average). That’s despite a decline in airfare prices since last year, according to the consumer price index data released in October.

The question is whether using these programs is a good idea.

The rise of buy now, pay later services

Buy now, pay later programs with five major lenders grew 970% from 2019 to 2021, according to a September 2022 report from the Consumer Financial Protection Bureau (CFPB).

The agency also noted the dollar value of loans doled out by those companies rose from $2 billion before the pandemic to a whopping $24.2 billion in 2021. Buy now, pay later usage included everything from beauty products to groceries, gas, pet care and travel.

Experts say the jury is still out on whether buy now, pay later programs benefit consumers. A big reason for the uncertainty is the rapid rise of these financing options.

“There’s a lot we still don’t know about consumer uses of these,” says Michael Collins, an expert in consumer and personal finance at the University of Wisconsin.

According to the CFPB, these loans, paid down monthly by consumers, range in size from $50 to $1,000.

Benefits of using buy now, pay later for travel

There are some benefits to using buy now, pay later for travel.

For one, buy now, pay later can keep travelers from immediately paying for a sizable airfare expense when holiday gifts and other year-end costs can quickly add up.

Plus, there’s a convenience factor to making a buy now, pay later purchase, Collins says.

“You can instantly finance it even if you don’t have cash in the bank and you don’t want to use your credit card,” he says, noting its appeal to those who might not have stellar credit or who don’t have a credit card.

Unlike a credit card, though, many of these programs don’t charge interest if you make the minimum monthly payment.

Drawbacks of using buy now, pay later for travel

Buy now, pay later programs do carry risks, especially if you miss your monthly payment.

In the CFPB’s report on Buy Now, Pay Later trends, the explosion in popularity of these financing options last year is discussed, and users are cautioned about the risks of data harvesting, inconsistent consumer protections, minimal dispute resolution options and the potential to accumulate debt and late fees.

“We will be working to ensure that borrowers have similar protections, regardless of whether they use a credit card or a Buy Now, Pay Later loan,” the bureau’s director, Rohit Chopra, said in the report.

The agency also found that 10.5% of buy now, pay later borrowers were charged at least one late fee in 2021.

Use credit responsibly

Ultimately, Collins says, consumers considering taking advantage of one of these programs — or incurring any other debt, for that matter, should consider the basic principles of responsible credit.

“You should be your own best judge of what you can handle,” he says. “You have to take out these loans with the intent to pay them back in a timely way, or else they will get very expensive very fast.”

Survey Method:

The 2023 survey was conducted online within the United States by The Harris Poll on behalf of NerdWallet from September 5-7, 2023, among 2,057 U.S. adults ages 18 and older, among whom 967 plan to spend money on flights/hotel stays this upcoming holiday season. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.7 percentage points using a 95% confidence level. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact press@nerdwallet.com.

The article More Travelers Are Using Buy Now, Pay Later for Holiday Trips originally appeared on NerdWallet.

Why spend the time and expense to get a second opinion if your doctor recommends surgery or they diagnose a serious disease? After all, you’ve been examined, tested and evaluated by an expert with many years of training.

But the harsh reality is that misdiagnosis happens a lot — and sometimes with the gravest consequences. Each year, approximately 371,000 people in the U.S. die because of diagnostic error, according to a July 2023 study in the medical journal BMJ Quality & Safety.

A medical second opinion can increase the chances that you get the correct treatment from the start, saving money, distress and maybe your life.

“Second opinions are probably the single fastest way to address diagnostic errors today,” says Dr. David Newman-Toker, director of Johns Hopkins Medicine’s Center for Diagnostic Excellence.

Seeing the right specialist or subspecialist can make all the difference. “We know [from research] that if a patient with sarcoma is seen at a sarcoma center, their survival is longer,” says Kristen Ganjoo, a medical oncologist who teaches at Stanford University’s School of Medicine.

What is a second opinion, and why is it valuable to you?

Second opinions — whether to review a surgery recommendation or a cancer diagnosis — typically require a step-by-step reexamination of a patient’s case.

The first step is to review the existing diagnosis, according to Ganjoo. For example, patients may need a pathology review at an institution that has experts in sarcomas, she says. “We have a hundred different types of sarcoma, and they’re all treated differently. If a pathologist is not familiar with sarcomas, they may make a mistake in diagnosing patients.”

Next, Ganjoo determines whether the patient needs more tests, such as a scan or an assessment of a tissue sample for genetic mutations.

Finally, she reviews the treatment plan and makes any necessary changes to it, based on all test results and her diagnosis.

But second opinions aren’t only about coming to the correct diagnosis. They can be about “what’s the best possible treatment for this particular patient at this point in their life,” says Caitlin Donovan, a senior director at the nonprofit Patient Advocate Foundation, which works to educate and empower health care consumers.

“How can you incorporate quality-of-life concerns and still get the result you want?” says Donovan. “Physicians may differ on that.”

What does a second opinion cost, and does insurance cover it?

Charges for a second opinion vary widely, as does insurance coverage.

Some major medical centers offer a second opinion service at a fixed price. A virtual second opinion at the Cleveland Clinic costs $1,850. Stanford Medicine charges $700 for an online second opinion. The package of services provided — and the medical staff’s knowledge of particular specialties — vary by institution.

If you are insured by an employer or through a state or federal health insurance marketplace, contact your insurer to ask about your coverage for second opinions for people with your diagnosis.

Medicare may pay at least some of the cost of a second opinion when surgery is recommended. Medicaid offers some coverage of second opinions; call your state’s Medicaid office for details.

You may be able to pay any out-of-pocket costs of a second opinion through your health savings account (HSA) or flexible spending account (FSA).

Financial assistance for second-opinion expenses for certain diagnoses may be available through a variety of organizations, including the Patient Advocate Foundation and the Sarcoma Alliance.

If you are shy about asking for a second opinion

Some patients are embarrassed to let their doctor know that they’d like to get a second opinion. But if you do encounter resistance, know that you’re pursuing a reasonable course of action.

“Any good physician is going to encourage you to explore your treatment options,” says Donovan.

“Sometimes you just have the wrong clinician,” says Newman-Toker. “They’re overconfident or they’re not interested in asking deeper questions or hearing your concerns as a patient. Then, you just need a new doctor.”

Avoiding misdiagnosis

Newman-Toker offers these tips:

• Come to your appointments prepared with a simple, printed summary of your timeline of symptoms and problems, to leave more time for discussion and questions.
• Ask hard questions, such as, “What’s the worst thing that this could be, and why is my condition not that,” says Newman-Toker. If the doctor bristles, consider going to another. “You have to rely on asking probing questions to see if your physician is committed to getting it right.”
• After treatment begins, remain vigilant, Newman-Toker says. “Don’t assume that if you don’t get a good result, your treatment needs to be adjusted, rather than your diagnosis reevaluated. Maybe it’s time for a second opinion.”

The article Getting a Second Opinion Can Help Ward Off Misdiagnosis originally appeared on NerdWallet.

Retailers like Amazon, Target and Walmart pushed October sales as an early start to the holiday shopping season again this year. But only about a quarter of Amazon Prime Big Deal Days shoppers used the Oct. 10-11 event to buy holiday gifts, according to a survey of verified buyers from market research firm Numerator.

The rest might be waiting for Black Friday (Nov. 24 this year) to get the gift list going.

If that’s you, here’s a short list of what to buy (or skip) during the traditional start to holiday shopping, which is the sale period that includes Thanksgiving Day (Nov. 23), Black Friday and Cyber Monday (Nov. 27).

Buy: TVs and big-ticket tech

This one is no secret, but you may be looking for confirmation: Black Friday is still the “sweet spot” for TVs, says Trae Bodge, shopping expert from truetrae.com. “Yes, we saw some TVs on sale over Amazon [Prime Big Deal Days], but I really think that we’ll see better deals over Black Friday.”

Expect discounts on electronics like laptops, wireless headphones and soundbars at all the usual big-box stores. And if you need more time to save for the right size and model TV, the next best time to buy is around the Super Bowl.

Skip (for a couple of weeks): Toys and holiday decor

Toys aren’t off limits on Black Friday and Cyber Monday, but you may save more if you wait a couple of weeks for when retailers start to sweat. It’s better to hold off on holiday decorations too, if you can.

Bodge says there’ll be better prices on kids’ toys and holiday decorations as December wears on. “I like to wait on those things because as we get closer to the Christmas holidays, that’s when retailers are going to be scrambling to get rid of that stuff to clear space for the new year,” she says.

Buy: Small kitchen appliances

NerdWallet’s latest holiday sale price-tracking data shows Black Friday and Cyber Monday bring great deals on kitchen gadgets. Prices on the three kitchen items NerdWallet watched since late last year — which included a Ninja air fry oven, KitchenAid mixer and Nespresso coffee machine — hit bottom dollar last Cyber Monday.

The price of the KitchenAid Classic Series 4.5-Quart Tilt-Head Stand Mixer, for example, dropped to $220.99 at Target (down from its $329.99 retail price) last Cyber Monday.

Skip: Sporting goods

Some sporting goods are hard to wrap and hide. That may be reason enough to wait until closer to Christmas. Another reason is based on data from software company Adobe’s holiday season forecast for online shopping. The company, which analyzes U.S. e-commerce transactions across many retailers, predicts Dec. 4 will be the best day to get geared up for sports.

“Historically the best pricing for these items tends to be during the first week of December as older inventory clears and new personal fitness equipment and other sporting goods become available,” said Vivek Pandya, group manager at Adobe Digital Insights, in an email.

Buy: Winter apparel

In a bit of a twist, Bodge says Black Friday may bring better buys on winter clothes than are typically expected, possibly due to the weather staying warmer longer in many regions. Retailers fearing they’ll have too much supply could move sales on parkas, beanies and sweaters up to Black Friday and Cyber Monday.

“[It’s] notable because, in my experience, winter apparel is most deeply discounted in December,” says Bodge.

So, look for layers while you’re browsing for clothes with a hot beverage Black Friday morning.

Skip (maybe): Tools and home improvement items

Many major product categories are fair game for good discounts on Black Friday and Cyber Monday, but you may want to double-check the price history before you order a new drill or circular saw.

“Tools and home improvement equipment tend to lag behind [other categories] in the percentage of discounts during the holiday season,” said Pandya.

That’s not to say all deals on tools won’t be good enough. If you’re unsure, try a coupon-finding browser extension like PayPal Honey or Rakuten, or a site like Camelcamelcamel.com, which tracks product prices over time.

You can always look to June, around Father’s Day, to buy tools.

Holiday shopping tips

Comparing prices and doing your research will certainly help you save money this holiday season, but make sure you consider how you’ll manage expenses too.

Read up before you buy now, pay later

Many shoppers will rely on credit for their purchases. Adobe’s forecast predicts record use of “buy now, pay later” options — an estimated $17 billion in online spending to fund purchases during the holiday season.

When you can adhere to the payment schedule, Bodge says, BNPL is like “the modern layaway.” “It’s a great way to spread out your financial outlay for a particular month,” she says.

She also recommends that those newer to the concept read the fine print before signing up, because late payments can lead to late fees, which could negate any discounts realized.

NerdWallet’s 2023 holiday shopping report found 52% of Americans incurred credit card debt when shopping last holiday season and, among them, nearly a third (31%) have still not paid off those balances.

“If you’re dragging credit card debt month to month, you should maybe use debit only or just cash,” says Bodge.

Check your feelings at checkout

With the holiday season comes pressure to make others happy, reminds Bodge.

The holiday shopping report found that more than half of 2023 holiday shoppers said holiday shopping stresses them out.

You have to block out the urge to keep up with the Joneses and try to buy within your means, says Bodge.

“Be mindful of your own personal financial situation and gift accordingly.”

Tommy Tindall writes for NerdWallet. Email: ttindall@nerdwallet.com.

The article What to Buy (and Skip) on Black Friday and Cyber Monday 2023 originally appeared on NerdWallet.

The delayed release of the 2024-25 Free Application for Federal Student Aid (FAFSA) could make it more difficult for “early decision” applicants to accurately gauge the cost of their college education.

Early decision is a binding process, usually with a November application deadline and a December admissions decision. Students may apply to only one college via early decision, and if accepted, they typically must attend or risk having to sit out of school for a year. An early decision application can boost a student’s odds of getting into their dream school, but it also means they lose the chance to compare and negotiate financial aid offers from multiple schools.

Because the 2024-25 FAFSA will be simplified — and the release delayed from Oct. 1, 2023, until sometime in December — many colleges won’t be able to provide accurate financial aid estimates or final packages alongside early decision admissions, says Connie Livingston, head of college counselors with admissions counseling group Empowerly and a former admissions counselor at Brown University.

“In years prior, you knew what your package was when you knew your decision,” Livingston explains. “Now you’re getting an estimate, which is better than nothing, but it’s not a guarantee.”

If you’re thinking about applying early decision this fall, here are six tips to help you navigate the FAFSA overhaul and your college financial aid prospects.

1. Apply to CSS Profile schools

About 250 universities use the more detailed CSS Profile alongside the FAFSA to calculate institutional aid, like scholarships and grants. The 2024-25 CSS Profile opened on Oct. 1. At CSS Profile schools, prospective early decision applicants may have better luck getting an accurate financial aid estimate before they decide to apply, says Shannon Vasconcelos, senior director of college finance for Bright Horizons College Coach, an admissions and financial aid counseling company.

However, students who apply early to FAFSA-only schools likely won’t have a reliable financial aid estimate before applying, Vasconcelos says.

The vast majority of institutions that use the CSS Profile are private, although a handful of public schools like the University of Virginia and the University of Michigan also use it.

2. Estimate your financial aid

In past years, colleges’ online net price calculators have been the best way to estimate how much your education could cost at an institution — but with a lack of clarity around the new FAFSA, many of these calculators have not yet been updated, Vasconcelos says. Early decision applications should use other calculators.

The Education Department recently released a new Federal Student Aid Estimator to help students gauge their eligibility for aid like federal student loans and the need-based Pell Grant for the 2024-25 school year. The College Board’s Expected Family Contribution (EFC) calculator can estimate the aid you may get through the CSS Profile.

If your family has an income below a certain threshold — check the income cap with the early decision school to which you’re applying — it’s more likely that you’ll get enough aid to attend. Most early decision schools meet 100% of demonstrated financial need, but they don’t offer merit aid, Livingston says.

3. Read the fine print

Students have the option to back out of early decision agreements if they can’t afford to attend. Carefully read the agreement at your school of choice before applying.

“I think that we’re going to see more families take advantage of that fine print this year and pull out of that early decision agreement, because they didn’t understand what they were getting into financially, or they did not have an accurate estimate of financial aid eligibility upfront,” Vasconcelos says.

Backing out from an early decision acceptance is a process. For example, at Columbia University in New York, families must consult with a financial aid officer and explain their circumstances before a student can be released from an early decision agreement. The timing can also be risky: When students finally get their delayed financial aid packages for the 2024-25 school year, application deadlines at other schools may have passed.

Make sure to print out and save any financial aid estimates you’ve received from schools, Vasconcelos advises. These records can come in handy if you need to request more aid or get out of your binding admissions agreement.

4. Request your FSA ID now

Each person — including the student and parents — who fills out the 2024-25 FAFSA will need a unique FSA ID. It can take up to three days to receive an FSA ID after you request it.

Request your FSA ID ahead of time so you’ll be ready to fill out the FAFSA right away upon its December release and get your financial aid package as fast as possible.

Everyone should fill out the FAFSA, regardless of whether or not they think they’ll qualify for aid, says Livingston. Many colleges use the application to help determine eligibility for scholarships and merit aid in addition to need-based aid.

5. Consider early action or regular decision

Roughly 87% of U.S. undergraduates received financial aid in 2020-21, according to the National Center for Education Statistics. For these students, applying early action (which is nonbinding) or regular decision may be a safer bet than early decision.

If you get multiple admissions offers, you can compare financial packages and costs of each school, and even try to negotiate your aid offers.

“When you apply early action or regular decision, then you’re not making a commitment,” says Vasconcelos. “You can go back to schools and say, ‘Thanks for this nice $5,000 scholarship but this other school gave me $10,000; is there anything else you can do?’ and some schools are amenable to that.”

That type of negotiation is off the table if you apply early decision, Vasconcelos says, but you might still be able to appeal for more aid after an early decision acceptance if your financial situation changes.

6. Reach out to financial aid offices

If you need more help understanding how the FAFSA simplification and delay could affect your plans to apply early decision, reach out to the financial aid offices at your target schools.

“They are expecting a lot of questions, and maybe some confusion, so they’re ready to help students and families through this process,” says Livingston.

The article Applying to College Early Decision? 6 Tips for the FAFSA Delay originally appeared on NerdWallet.

Forget the ghouls and ghosts — inflation is spooky enough. And it’s coming for your Halloween candies.

Candy and gum prices rose 7.5% between September 2022 and September 2023, according to the Bureau of Labor Statistics. For context, the broader category of grocery prices increased 3.7% over that time frame.

Why is candy so expensive?

Beyond overall inflation, which rose 3.7% year over year since September 2023, there are a few more reasons why candy is so expensive right now. The cost of raw sugar reached an 11-year high in April, per CNBC, due to the effects of extreme weather on the crop, as well as rising demand.

And a U.S. agricultural policy that requires 85% of sugar purchases to come from domestic processors is further tightening an already strained supply, according to The Wall Street Journal.

Consumers are taking notice. In a survey of 1,000 U.S. households that celebrate Halloween, 41% of respondents said that inflation has impacted how much they plan to spend on Halloween candy this year, according to Advantage Solutions, an e-commerce analytics firm.

Go for this cheap Halloween candy in 2023

Thankfully, there are some candies whose prices actually fell year over year, according to a new report from Pattern, an e-commerce analytics firm. So you can still indulge in some sweet treats without exceeding your budget.

Pattern tracked the price changes of more than 30 types of candy on Amazon every day for one year. First, Pattern data scientists calculated a baseline price for specific candies — such as Twix, Milky Way or Skittles — by taking the average of the 10 most popular versions of those candies.

For example, Milky Way’s 10 most popular products may include a two-pack of candy bars, a 36-pack of candy bars and a bag of Milky Way “Fun Size” minis. Those prices, as well as the prices of the seven other most popular products, would then be averaged. That average would represent the Milky Way baseline price.

Then, Pattern compared that initial baseline cost from October 2022 with each candy’s baseline price one year later.

By measuring how each candy’s baseline price changes over time, a picture emerges of how each candy’s price rose or fell over a given time period — regardless of product.

In the 12 months leading up to Oct. 9, 2023, the analysis found that prices fell on Amazon for these candies:

• Hot Tamales (-44.90%).
• Mounds (-13.23%).
• Heath (-10.24%).
• Rolos (-9.83%).
• Milk Duds (-7.58%).
• Whoppers (-6.9%).
• Reeses (-5.13%).
• Milky Way (-4.28%).
• Nerds (-2.96%).
• Kit Kat (-1.63%).

Those percentages translate to significant real-world savings. Last year, Hot Tamales’ baseline cost on Amazon was $45.69 on Amazon. Today, that figure is 44.9% less, at $25.32, per Pattern. Even Milky Way’s much smaller percentage change of -4.28% means the candy’s average price dropped from $21.70 in 2022 to $19.01 in 2023.

To avoid inflation’s hardest-hit treats, stay away from these candies, whose prices rose the most dramatically over that time period: Airheads (+26.34%), Baby Ruth (+13.51%), candy corn (+13.24%), PayDay (+12.0%) and Tootsie Rolls (+11.36%). Airheads’ average cost was $10.15 in 2022; today, that figure is $15.32.

How to save money on Halloween

With expensive winter holidays like Christmas and Hanukkah just around the corner, here’s how to spend less on Halloween, beyond avoiding the priciest treats.

Avoid buying your favorite candy. Seems counterintuitive, right? But, as Fortera Credit Union notes, you’re more likely to munch on your favorite treats before Halloween, leaving you in a pinch on the big night. Stock up on sweets you won’t be tempted to eat.

Make your own costume. You can also ask friends if they want to trade costumes, recommends Farmers Trust & Savings Bank. If you’re responsible for kids’ costumes, reach out to other families in your social circle and see if any parents would be interested in a costume swap.

Trade home and yard decor with friends and family. For decorations, buy art supplies from a dollar store, per Advisors Management Group, an investment firm in Wisconsin.

The article Candy Prices Are Up. Here’s Why, and How to Save on Halloween originally appeared on NerdWallet.

Interest rates on 30-year fixed-rate mortgages have hit yet another high, with lenders offering loans above 8% for the first time since 2000. Mortgage rates have gone up rapidly this year, rising two full percentage points from lows near 6% back in February.

That’s been brutal for home buyers, who have watched their buying power erode. At a 6% interest rate, a buyer looking to spend $2,000 a month on principal and interest could afford a loan of roughly $333,500. With interest rates at 8%, that same buyer can afford only $272,500. Their target home price has dropped $61,000 as more of that monthly payment has to go toward servicing interest.

Here’s why mortgage interest rates are so high, and why they could remain elevated. Still, there are ways that home buyers can contend with such a challenging housing market.

Why mortgage rates climbed so high

A year ago, many housing economists, including in forecasts from Fannie Mae and the Mortgage Bankers Association, were anticipating that today’s mortgage rates would be in the 5%-6% range. Though that seems wildly off base now, at the time it looked pretty reasonable.

“Last year around this time, the Fed was in the midst of hiking interest rates very rapidly,” explains Chen Zhao, head of economic research at Redfin. “And most economic forecasters were really looking at this and saying, OK, this is most likely going to lead to a recession.”

A recession could have forced the Federal Reserve to cut interest rates, with mortgage rates likely falling, too. But that recession hasn’t arrived.

“Despite what the Fed has done, hiking rates at the fastest rate ever, the economy, especially the job market, has really just remained very resilient. As a result, investors are now expecting that the economy is going to avoid a recession and remain very strong for longer,” Zhao says. “And that means that the economy can sustain higher mortgage rates for a longer amount of time.”

Where are mortgage rates headed in 2024?

Looking at last year’s predictions for 2023, it’s clear that a lot can change in just a few months. With political upheaval in the U.S. and multiple wars overseas, there’s potential for tectonic shifts in markets and in economic policy.

“I would say that right now uncertainty is unusually high,” Zhao comments. “Maybe the most plausible forecast would be to say that rates are probably going to stay in this range for the near term or at least in the foreseeable future.” But Zhao also outlines scenarios for mortgage rates going lower — an economic downturn forcing the Federal Reserve to encourage economic activity by easing interest rates — or higher, if mortgage spreads remain elevated.

The mortgage spread is the difference between the 30-year fixed mortgage rate and 10-year Treasury rate. “Historically, the spread between the 10-year Treasury and the 30-year mortgage rates is about 1 3/4%,” explains Melissa Cohn, New York-based regional vice president and mortgage banker at William Raveis Mortgage. Because of economic and geopolitical volatility, “Those spreads have grown over the course of the past couple of years, and our mortgage rates are now trading at 3% or higher above the 10-year Treasury.”

That said, it’s also worth noting that while we haven’t seen mortgage interest rates this high in 23 years, prevailing interest rates are in line with longer-term historical averages. Interest rates collected by government-sponsored enterprise Freddie Mac, which go back to 1971, are widely used as the yardstick for mortgage interest rates. Over that half century, the average 30-year fixed interest rate has been 7.74%.

“Looking holistically at the entire history, we’re about where the average is,” comments Jessica Lautz, deputy chief economist and vice president of research for the National Association of Realtors. Lautz points out that recent history is fairly exceptional: “We don’t want to say that the interest rate of 18 is normal, but the interest rate of 2.5 is also not normal,” she says, referring to historic highs of the early 1980s and the low point of 2020. “Both of those were very unusual time periods for interest rates.”

How high rates might affect buyers’ plans

Higher interest rates have got home buyers scrambling to keep their budgets in line with costs. But buyers should also consider the wider effects that rates have on the housing market and how these could play out.

Cohn contends that those who can afford to buy now, despite high interest rates, are likely better off going ahead with a purchase, as home prices continue to rise. “Are you better off buying in the higher-rate environment today and paying hundreds of dollars more a month in a mortgage payment so that you can refinance in a year when rates are down instead of having to pay 5% more on the purchase price of that home in a year?” she asks. This argument assumes interest rates will drop, but it’s also worth noting that while today’s buyer waits for rates to fall, they’re building equity.

Lautz also leans toward acting now if you can, but for different reasons. With housing inventory limited, a drop in interest rates could bring currently priced-out buyers off the sidelines, driving up home prices. “I do think there is pent-up demand,” Lautz explains, “and so they may be facing a multiple-offer situation.” In other words, lower rates could lead to the return of bidding wars.

What homebuyers can do now

If you’re in a position to buy a home despite today’s mortgage rates, there are a few steps you can take to buffer the effects of high rates.

Get all the help you can: If you’re a first-time home buyer, look into state and local programs that provide down payment and closing cost assistance. These can be no- or low-interest loans or even outright grants. You may not even have to be a true first-timer: Many programs consider you a first-time home buyer if you haven’t had an ownership interest in a home in at least three years.

Consider a variety of home types: Rather than a detached, single-family home, a condo or townhouse might better suit your budget. New construction is worth a look, as newly built homes are nearly one-third of the current market. Home builders with robust inventories are often able to provide incentives that make new homes more affordable.

Be interest-rate-aware: When you’re researching sample interest rates at various lenders, read the fine print. With rates so high, many lenders are including discount points — prepaid mortgage interest — to make their sample rates appear lower. Buying points can be a good strategy, but there’s an upfront cost, so you want to know if they’re included when trying to decide which lender has the best rates for you.

Kate Wood writes for NerdWallet. Email: kwood@nerdwallet.com.

The article As Mortgage Rates Top 8%, What Home Buyers Should Know originally appeared on NerdWallet.

Adopting a rescue or shelter dog doesn’t just give a needy animal a home. It can provide a playmate for your kids, a jogging buddy for you and a loyal companion for everyone to cuddle with on the couch. But a new pet can also come with unexpected vet bills, which is why you might want to consider pet insurance.

Pet insurance policies can help pay for treatment if your furry friend gets sick or hurt. In some cases, they may also cover vaccinations and other routine care. Here’s how to decide whether pet insurance is right for your rescue dog.

Estimate the cost of vet care

It’s impossible to know which medical problems a given pet may have in the future. However, researching the breeds you’re interested in can help you get a sense of which health conditions are most likely to crop up, says Dr. Antonio DeMarco, chief medical officer at GoodVets, a chain of animal hospitals with locations across the U.S. Some of these conditions can be both serious and expensive to treat, he says.

For example, large-breed dogs like golden and Labrador retrievers are prone to hip dysplasia, a deformity of the hip joint. Some dogs may need surgery to treat it, costing thousands of dollars.

A local vet can advise you on potential health concerns and how much it might cost to manage them. They can also help you estimate the price of routine care.

Understand pet insurance

Pet insurance likely won’t reimburse every dollar you spend at the vet. For example, most plans won’t cover pre-existing conditions that your dog had before you bought the policy. So if you adopt a senior dog with diabetes, you’ll need to pay for the treatment yourself.

For the same reason, you can’t simply wait to get a policy until your vet diagnoses an injury or illness. DeMarco has had pet owners ask him if they can buy insurance after their dog tears an ACL. “[You] sure can, but this isn’t covered,” he tells them.

Most pet insurance plans pay to treat illnesses and injuries but won’t help with routine care unless you buy extra coverage. That coverage may be worth adding for certain dogs, says Maureen Sosa, director of pet support at the Humane Rescue Alliance in Washington, D.C. Smaller dogs are more prone to dental disease and benefit from regular cleanings, which wellness plans can help pay for.

When shopping for pet insurance, check for deductibles and copays. Say your plan will pay 80% of your expenses after you’ve met the $500 annual deductible. That means you’d have to spend $500 on your pet’s treatment in a given year before your plan would start reimbursing you.

Your policy may also have a maximum payout limit, such as $5,000 or $10,000 per year.

Get pet insurance quotes

The average cost of accident and illness coverage for a dog is about $640 per year, according to the North American Pet Health Insurance Association. However, you might pay more or less depending on where you live, the coverage options you choose and the breed and age of your dog.

You can get online quotes from most pet insurance providers. Check rates from at least three companies to make sure you’re getting the best price for the coverage you want.

Pet insurance isn’t worth the cost for every rescue dog. Policies may be prohibitively expensive for older dogs, especially if they already have chronic conditions that the policy won’t cover. In these cases, you may be better off skipping insurance and setting up an emergency fund for vet expenses.

Consider your peace of mind

One of the biggest benefits of pet insurance is avoiding heart-breaking financial decisions. Sosa has seen owners forced to surrender pets because they couldn’t afford to treat their medical conditions. “The economy is in a really bad place,” she says. “That’s trickling down and affecting what people are able to afford.”

Even worse, some owners may have to euthanize their dogs if the treatment for a serious condition is simply too expensive, DeMarco says. “As veterinarians, that is the worst-case scenario for us.”

You may go years without having to use your pet insurance. But in a crisis, having the policy can give you peace of mind, DeMarco says. You’ll know that “if those situations arise, you’re going to be able to handle them financially and not have to make decisions based on finances rather than what’s best for your animal.”

This article was written by NerdWallet and was originally published by The Associated Press.

The article Adopting a Rescue Dog? Here’s What to Know About Pet Insurance originally appeared on NerdWallet.