Investing in real estate can feel like a big step, but multifamily real estate investing offers unique advantages that make it a popular choice. Whether you’re a seasoned investor or just getting started, multifamily properties provide a balance of steady income and long-term growth. Let’s dive into why multifamily real estate investing might be your next smart financial move and explore the benefits that make it a compelling option.

Consistent Cash Flow

One of the biggest draws of multifamily real estate investing is the consistent cash flow it can generate. With multiple units rented out, you have several income streams, reducing the risk of vacancy impacting your bottom line. The reliable monthly income can help cover mortgage payments, maintenance costs, and still leave room for profit. This steady cash flow is a significant reason why many investors choose multifamily properties.

Lower Risk of Vacancy

When you invest in a single-family property, one vacancy can wipe out your rental income. With multifamily real estate investing, the risk is spread out across multiple units. Even if one tenant moves out, the other units continue generating income. This diversified tenant base makes it easier to manage vacancies and keep your investment profitable.

Easier to Finance

It may seem counterintuitive, but banks often view multifamily real estate investing as less risky than single-family properties. The consistent cash flow from multiple tenants can make it easier to qualify for loans. Lenders know that multifamily properties have a better chance of generating stable income. This increased financing availability is a key benefit for investors looking to scale their portfolios quickly.

Potential for Appreciation

Multifamily properties not only provide monthly income but also have the potential to appreciate in value over time. As the neighborhood develops and rental demand increases, the property’s value can rise. Multifamily real estate investing allows you to build equity, which can be leveraged for future investments. It’s a win-win scenario of immediate cash flow and long-term growth.

Tax Benefits

Multifamily real estate investing offers several tax advantages that can boost your overall returns. Investors can deduct mortgage interest, property taxes, and depreciation from their taxable income. These deductions can lower your tax liability, allowing you to keep more of your earnings. Taking advantage of these tax benefits is one of the smartest ways to maximize your investment.

Easier Management

Managing multiple single-family homes can be a logistical nightmare, but with multifamily real estate investing, everything is under one roof. This centralized management approach saves time and effort, making it simpler to handle maintenance and tenant issues. Many investors find it easier to hire a property management company for multifamily buildings, streamlining the process even further.

Scalability for Investors

Multifamily real estate investing is an excellent way to scale your portfolio quickly. Acquiring a multifamily property allows you to own multiple rental units in a single transaction. This can accelerate your growth compared to buying individual single-family homes one at a time. It’s a smart strategy for investors looking to build wealth and expand their real estate holdings.

High Demand for Rentals

The demand for rental properties is on the rise, making multifamily real estate investing a sound choice. Many people prefer renting due to lifestyle flexibility, job changes, or the rising cost of homeownership. This growing demand keeps vacancy rates low and rental income stable. It’s a trend that shows no signs of slowing, providing investors with a solid opportunity for consistent returns.

Diversified Income Stream

Multifamily real estate investing diversifies your income, reducing the risk of relying on a single tenant. With multiple units, the likelihood of all tenants vacating at once is low. This diversification provides a cushion against market fluctuations and economic downturns. It’s a way to safeguard your investment while enjoying multiple revenue streams.

Strong Long-Term Investment

Multifamily properties are often seen as strong long-term investments due to their potential for appreciation, consistent cash flow, and scalability. Holding onto a well-maintained multifamily property can generate passive income for years. It’s an investment that can provide financial security and help build generational wealth. The benefits make it a smart move for those looking to secure their financial future.

Making the Right Investment Choice

Multifamily real estate investing offers a combination of income, appreciation, and tax benefits that can enhance your financial portfolio. With the right approach and a little due diligence, you can leverage these advantages to achieve both short-term and long-term financial goals. It’s a strategic way to diversify your investments and build wealth over time.

The post 10 Key Benefits of Investing in Multifamily Real Estate: Why It’s a Smart Move appeared first on Budget and the Bees.

If you’re anything like me (and if you are, I’m sorry, and have you tried therapy?) then you’re well-acquainted with those online tables of the top savings accounts. But have you considered smaller building societies that might not make these lists?

We all know the drill in 2024. You need somewhere to park your cash. An account with an interest rate that sees your stash nibbled at rather than swallowed up by the Inflation Monster. 

My personal go-to are the tables updated by the Money Saving Expert team. But there are lots of others. Search for ‘top savings rates’, and you’ll get up-to-date results. 

The top scorers are usually online challenger banks. Mostly they’re absolutely fine. Just check any potential candidate has the full FSCS protection of £85,000 – especially if it sounds like something Del Boy threw together in a get-rich-quick scheme.

(“Rodders, what’ll we call our bank? Monzo? Nah – how about Pockit?”)

However I’m going to make the case that you should consider your local building society.

Rate expectations

National building societies (BS) are included in those Best Buy tables, alongside banks new and old.

For instance, top BS picks as I write include…

• Leeds BS (paying 4.67%)
• Yorkshire BS (paying 4.35%)

…which are respectable enough, though they can’t compete with the likes of Trading 212 and Moneybox, which both tout 5.17% right now. (T&Cs apply with all these accounts, and that Trading 212 link is monetised so The Investor may be able to buy an M&S Meal Deal this weekend if you sign-up!)

What the tables might not show you is the best rate offered by your local building society.

And you could be surprised at just how competitive these can be. 

What are building societies?

I think of building societies as slightly more cuddly banks.

Rather than being run for the benefit of shareholders, as banks are, building societies are accountable to their members. And the members are their customers. 

The first society was formed in 1775 in Birmingham, with recognition of the nascent industry coming with The Regulation of Benefit Building Societies Act in 1836. The next 200-odd years saw more legislation and regulation, with the sector hitting its high-water mark in 1986. That year The New Building Societies Act gave them the option to become banks. Over the next few years many did just that.

So don’t be fooled by a local-sounding name from yesteryear – like a fancy surname retained since the Norman conquest – because you may be looking at a bank in sheep’s clothing.

For example, when I was a kid in North East England we had accounts with the Halifax Building Society. But while I was a teenager and wasn’t paying attention, Halifax went to the dark side. It ‘demutualised’ and turned into a bank. Others followed suit.

However not all building societies did the (mis) deed and there are plenty left today.

Surviving building societies tend to have a local focus. They usually have a town or city in their name.

Again though, not always. Nationwide Building Society is, as its name suggests, a nationwide mega-building society. And the Teachers Building Society is specifically for teachers – and also, slightly confusingly, for anyone in Dorset, Wiltshire and Hampshire, with its local hat on.

Beware the bankers

I’m not saying all banks are sharks nor that all building societies are cuddly teddy bears. That’s not true.

In fact I tend to err on the side of believing that every big organisation is out to get me.

I’m just saying that these days my local Halifax branch won’t let you go to a counter unless you’ve first run the gauntlet of three different iPad-wielding staff members – each time announcing your financial business to every curious onlooker perched nearby on the soft-play sofas.

My mother’s been trying to make it to the counter of Halifax for two years. 

Kafka would be taking notes.

What are the advantages of building societies?

Sometimes building societies have savings rates that equal the top online banks, and mortgage offerings that are just as good or better than other brokers. Other times they come close.

My point is they are definitely worth checking out. Yet they don’t often show up in comparison sites or tables. You have to do the leg-work yourself.

The good news is that you don’t always have to live nearby. These days most building societies have useful websites. Some – like Yorkshire BS and Leeds BS – enable you to open accounts online even if you don’t live in the area.

And yet… there’s also a case for getting up from your sofa (did I hear you actually gasp there?) and wandering along to your local high street to have a chat with the building society folks.

Assuming you a) have a local high street that isn’t derelict and b) have a building society with a building.

Field report

The last time I went out exploring – to open a cash ISA at my local building society – I was armed with info from its website, only to be told: “Oh, those were yesterday’s figures. This morning’s issue of the account has a higher interest rate”.

So I came out happier than I expected. A rare situation in dealing with banks, I’ve found.

They sometimes chat to you, too. You can go in, sit in the warm for a bit, and talk to someone about money. There’s a coffee machine in the corner. They’ll occasionally offer you a cup while you wait.

People really seem happier in my local building society. It’s like a weird banking utopia.

Do building societies have any disadvantages compared to banks?

Building societies don’t have as much to offer as banks. They’ll do savings accounts (including ISAs) and mortgages, but many don’t do more than that.

If you want a current account and lots of additional features, you’ll probably have to look elsewhere.

Building societies aren’t usually a one-stop-shop then. They’re more targeted at a particular strand of your financial management.

Also, their online offerings can be pretty limited. You might be able to check your account online, for instance, but not actually move your money around much without going into a branch. For some people that’s a huge disadvantage.

However I find that the relative simplicity of building societies works well for me in some situations.

For instance, last month I gave my 12-year-old son his first prepaid card. He was off on a school trip abroad – don’t even get me started on how much that cost – to a country that doesn’t use cash very much. The kids were advised to take a card for buying snacks and souvenirs. 

Naturally getting my son equipped wasn’t a smooth process. I had to get a card for myself too, so that I had a parent account for the child account. (And ever since I did, it’s been spamming me with ads for ‘easy investing’ and ‘want to buy gold?’).

But eventually both cards were set up. My son now has a card loaded with donations from his grandparents to take on his trip.

Slower and steadier saving and spending

The worrying thing is that my son loves his card. He carries it everywhere he goes. I think he’d sleep with it if I let him.

Sometimes he stops by McDonalds on his way home from school to buy a drink just because, he says, “It’s fun to use the card”. 

Okay, I can see why. You select something on the big shiny ordering machine, tap your card, and like magic somebody brings you a large Sprite Zero. That was science fiction when I was twelve.

But the money doesn’t seem real to him. The can of Sprite does, but the cash that paid for it is just a number that changes on a phone screen. For those of us who are old and grey (just a bit grey in my case, honest), it’s easy to make the connection. But for kids growing up in an increasingly virtual world, it’s different.

The building society approach counters that. It slows things down.

If his grandmother gives my son a £20 note, I’ll take him to the building society with his passbook. He hands in the £20, his book gets stamped, and he can see the physical money transferred to a number on the page. If he wants to do anything with that money, he has to go into the building society and ask.

There are levels of checks that slow down the immediacy of spending. As a parent I like that a lot.

Why I like to support my building society

There are other benefits to using your local building society

As already mentioned, in my neighbourhood the benefit is physical branches. My local BS – Newcastle Building Society, if you’re interested – hasn’t just hung on to a high street presence where banks have fled. It’s actually expanding its operations, opening new physical branches around the region. 

Then there’s the community side. 

Building societies can offer some interesting services. My local branch, for instance, provides a meeting room that you can book free of charge. I was so impressed by the offer that I immediately started trying to think of people I could assemble for an official meeting of some kind. (It didn’t work, of course – there’s nobody in my town who wants to meet with me except my cousins. And I’ve been crossing the street to avoid them for years.)

Now, I don’t know anything about high-level finance. I’m just a regular person in a regular town, doing regular shopping in a run-down high street that has more nail bars than banks.

But it seems to me that building societies are becoming increasingly attractive to people because they’re looking at what their customers want, rather than trying to tell their customers what they should want.

BSs: no BS

There’s no denying I’m a dinosaur about a lot of things. 

I don’t have the new Vanguard app. (Why would I want to check my investments on the bus?)

I resent the ubiquity of QR codes. (If I have to scan a QR code for your information, then I don’t want your information).

My approach to change can be best described as ‘grumpy’. 

So maybe I’m missing the advantages of our kids being born digital. Perhaps my views will change in a few years, when newer and more terrifying forms of progress make tappable cards look like Victorian slates. Maybe I’m alone in liking a passbook that can be stamped.

But in this age of online everything, in which you need two-factor authentication to change your socks, I find it strangely comforting to have an account that tucks my money away without any online tinkering.

I don’t think that I am alone. My building society has big posters advertising their use of passbooks, and apparently they attract a lot of new customers. My parents moved their savings from the bank to a building society when their bank phased out passbooks.

Lots of regular people resent it when the relentless march of progress whisks away a system that worked for them.

Anybody else still miss video tapes? Nobody?

Alright, I’m a dinosaur. But there are other dinosaurs out there too.

And in the dinosaur community, building societies are our happy place.

The post Are building societies still a good place for your money? appeared first on Monevator.

We have some amazing mentors in the Millionaire Money Mentors forums. Some of them are even accomplished authors!

Over the next few months I’ll be sharing excerpts from some of these authors’ works.

Today we have an excerpt from F.I.R.E. for Dummies — a book that I loved reading and is now my go-to for introducing people to F.I.R.E. 

It’s written by one of the mentors in the forums and makes for a great Christmas present (if you need any ideas).

The section today covers some basics of F.I.R.E. that often aren’t discussed on other sites, which is why I like it. It will be pretty basic for most ESI Money readers, but I wanted to share this so you can see how it starts from the ground floor — which makes it a perfect gift for those in your life who “just don’t get this FIRE thing.”

With that said, let’s get to today’s excerpt…

—————-

UNDERSTANDING F.I.R.E. PHILOSOPHIES

There is no doctrine or fixed set of rules you need to agree to in order to be a part of the F.I.R.E. community. There are, however, some common tenets to help achieve the primary goal of buying your time back and creating freedom in your life. 

Here are some of the philosophies of F.I.R.E.: 

• Living on less than you earn: That may mean earning a higher income, lowering your expenses, or both (see Chapters 10 and 14). 
• Maintaining a high savings rate: The gap you have created between your income and your expenses will give you room to save and invest more than the average. A savings rate of 50% or more is considered high, and it’s the goal you want to work toward. The more you save and invest, the faster it gets you to F.I.R.E (see Chapter 4). 
• Keeping investing simple and low cost: The strategy is to invest in index funds that offer a diversified basket of stocks or other investments and stay the course even when the market is down (see Chapter 12). 
• Minimizing taxes: Taxes are controllable, and there are many opportunities to reduce your tax liability when you understand how taxes work. This includes big areas such as tax advantaged retirement accounts and other investments with favorable tax treatment (see Chapter 15). 
• Optimizing corners of your life that matter most: It’s impossible to optimize everything, but everyone has superpowers in certain areas. Common places in which the F.I.R.E. community optimizes are travel rewards, house hacking, and real estate investing (see Chapter 2). 
• Being a lifelong learner and doer: Some of the smartest people you will find when it comes to personal finance are F.I.R.E. people who are curious and act on that curiosity (see Chapter 2). 
• Valuing community and connections: You will find support from other like-minded people with common goals. The community has grown big enough that you can connect with others in all kinds of ways: online, in person, one on one, small groups, big groups, and so on (see Chapter 3).
• Enjoying the journey: How you feel and your happiness is key even when you are hyper-focused on your goals. The psychology of F.I.R.E. is real and deserves as much mental energy as the math (see Chapter 3).

WHO WANTS F.I.R.E. AND WHY?

Many people would choose to spend their time in different careers and jobs if money were not a factor. 

If all careers and jobs paid the same amount of money, would you change yours? Do you feel stuck in a job you don’t love, or would you simply like to do the work you love on your own terms without being beholden to an employer? 

F.I.R.E. is a whole community of people who reject the default construct of work and retirement. Thinking differently about the balance of labor, leisure, and life leads many people to want more freedom to define this themselves. 

Most of the F.I.R.E. concepts are simple and aren’t new. They are just updated versions of the advice from wise people — parents, grandparents, and other influential people — who came before you. 

If you’ve read the book Your Money or Your Life by Vicki Robin and Joe Dominguez, you had an early glimpse into what financial independence and retiring early looks like. Just think about the legacy this iconic pair built and how many people they’ve touched since reaching F.I.R.E. 

If you’ve never imagined having an identity that did not include your job or career, you’re not alone. But there’s a lot of power in creating your own identity with you as the lead character and everything else in a supporting role. 

There are many different reasons people navigate toward F.I.R.E. Here are some examples: 

• One tough day at work pushes someone to the point where they’ve just had enough. 
• Someone has a series of reminders that they don’t have the control of their time they’d like to have. 
• A person discovers a passion or project that they can’t do because of commitments to work. 

What’s on the other side of F.I.R.E. can motivate you more than what you’re moving away from. Think about your “why.”

Every person’s why is different than the next person’s. One of the great things about F.I.R.E. is that it’s flexible, and there’s not one precise way to do it. 

My why for F.I.R.E. was to follow my big dream of creating a financially literate society. I know. I have a lot of work to do, but it’s work I love, and I couldn’t do it the way I want while at my full-time job. I tried, and it just became progressively more exhausting to do both. 

Don’t let what the larger F.I.R.E. movement does dictate your goals. You are unique, and the only person who can design what time freedom looks like for you, is you.

EXAMINING THE PUBLIC PERCEPTION OF of F.I.R.E.

As aspirational as F.I.R.E. may seem to me and you, it doesn’t always get a fair shake from other people. It’s healthy to take a critical look at things and examine a situation from other perspectives. 

In the early days, there were some stereotypes assigned to the F.I.R.E. movement. As a member of the F.I.R.E. community, I could understand where they came from, but like most stereotypes, they were overgeneralized.

Here are some examples of the stereotypical perception of a person who could achieve F.I.R.E.: 

• Mostly high-income people 
• Mostly white men working in the tech or engineering fields 
• Mostly people without kids or other extended family obligations 
• Mostly people who are extremely frugal or excessive minimalists 

There’s a lot more I could add to this list, but I got depressed just looking at some of these because I definitely don’t fit the mold, and you may not either. These descriptors in no way fully represent the F.I.R.E. community. 

The source of these stereotypes was probably clickbait articles or other media content with limited scope. 

I remember my first exposure to a diverse voice talking about F.I.R.E. on a major media platform. It was Jamila Souffrant, host of the podcast Journey to Launch and author of the book Your Journey to Financial Freedom (Hanover). 

I admit that I was a skeptic when I first started exploring what F.I.R.E. was all about (back in 2014). I read some salacious headlines that got my attention, but my curious nature led me to do a lot more digging than reading a single article.

I started diving into it by devouring all the F.I.R.E.-focused podcasts, blogs, and books I could find. 

I recall platforms with names that focused on the more extreme parts of F.I.R.E. like frugality or minimalism. Years later I felt that focus shifted toward things like simplicity, choice, and the wealth part of F.I.R.E. from sources like these: 

• The Simple Path to Wealth 
• Our Rich Journey
• rich & REGULAR
• Wealth Twins 
• ChooseFI

Needless to say, there are a lot more platforms, resources, and communities where you can learn about F.I.R.E. I mention many throughout this book and offer a list of some of my favorites in Chapter 21.

———————–

That’s it for today…just a taste of the book for now to get us started.

Future excerpts will be much more detailed and lengthy, so brace yourself for some good stuff coming for the next several weeks!

The post The Basics of FIRE appeared first on ESI Money.

It’s easy to overspend around the holidays. I know that when I’m armed with wish lists from kids and family members, I have a hard time avoiding the shopping frenzy that seems to take place every time I leave the house. After all, those sales are tempting and who doesn’t need that third coffee pot at such a steal of a deal? If that’s your struggle too, not to worry! Today I’m sharing my favorite tips to save money this holiday season so that you don’t have to spend the month of January getting caught up on bills. Sound like something you need? Well then, let’s get started.

Links for This Episode

• Check out these DIY Resources and Templates
• Download your FREE Holiday Budget Worksheet
• Join the Financial Fix Up Membership

Podcast Episode Recommendations

• #32: How to Have Stress-Free Money Conversations with Family
• #31: So You Can’t Afford Christmas This Year, Now What?
• #30: How to Create and Stick to a Holiday Budget
• #8: 3 Simple Ways to Create Your Family Grocery Budget

Grab Your Financial Fix Up Planner Today

Here’s the deal: in order to achieve your long-term financial goals, you have to have a budget that works for you and your family. That means, getting super clear on your income, expenses, and total debt payoff amounts, so you can make any necessary changes and begin to see progress. That’s exactly what the Financial Fix Up Planner is designed to help you do. With step-by-step instructions to set up your budget, monthly challenges to keep you on your toes, menu planning resources, and space to reflect on your goals, you’ll have everything you need to pursue your dream of financial freedom. Sound like something you need? You can grab your copy today at lemonblessings.com/planner and take back control of your family finances. Once again that’s lemonblessings.com/planner for your copy of the Financial Fix Up Planner.

7 Simple Ways to Save Money This Holiday Season

Well hey there and welcome to the Financial Fix Up Podcast. I’m your host, Sarah Brumley, and if you’re anything like me, the holiday season brings a mix of joy and financial stress. Between those wish lists from kids and family members and all of the ‘deals’ that flood our inboxes, it can be so easy to overspend and then have to start the new year in debt and catching up on bills and really just not in a good spot financially. But if you recall from a couple of episodes ago, this year we’re doing it differently, right? And that’s exactly why I want to share a few of my favorite tips to help us save money as we navigate this season. Because it is possible to have a memorable holiday without feeling that financial strain – it just might take a little forethought.

So without further ado, let’s just jump into my tips.

Tip #1: Plan Your Budget Wisely

And my first tip is to plan your budget wisely. This should come as no surprise to you if you’ve been a podcast listener for any length of time, but the key to success really does come down to having a budget in place, having that solid plan in place down to the dollar so that you know exactly what you CAN spend for each gift, event and gathering. So take the time to create a plan that you can stick to throughout the holiday shopping season. Trust me, it’ll make it easier for you to avoid overspending because you can consult the budget to determine if a purchase is financially feasible.

And if you need help getting this in place, grab my FREE Holiday Budget Template by heading to lemonblessings.com/holiday. Who knows? It might just be the best gift you give yourself this year!

Tip #2: Question “Sale” Items

My second tip is to question “sale” items. Here’s the deal, sales are meant to be tempting. Even if the price isn’t “too good to be true” a small chang in price combined with some flashy advertising is designed to draw you in and make you spend more money. That’s why it’s important to make sure you know that you’re REALLY getting a deal on the items you purchase.

Make sure to check the ads ahead of time – sometimes different stores will have different prices, so make sure you know where to grab the item for the best deal. Then compare the “sale” price to the regular price and determine if your purchase is really as good of a deal as you think it is. Another thing to consider is that just because something is on sale, doesn’t mean it’s what you need. A lot of times we are tempted to purchase items in the holiday season just because there are more sales and it seems like things are better priced, but if that item isn’t part of your holiday budget, it’s probably better to leave it behind – sale or no sale.

Tip #3: Consider a “Gift Formula”

Tip number three is to consider a gift formula and I’m really speaking to the parents out there, but I’m guessing this could work for anyone at any stage of life. The thing about parents is that, if we can, we tend to overspend on our kids. That’s a big challenge to overcome, so using a gift formula can help you stay on track financially and “bonus!” it might also help eliminate the clutter around your home that often results from unnecessary gifts.

A popular example of this could include giving:

• Something to wear
• Something to read
• Something they want
• Something they need

Of course, you can adjust it to make it work for your family situation, but by sticking to a formula, you can prevent yourself from overbuying no matter how tempting it might be to pick up just one more gift for the kids.

Tip #4: Skip the Christmas Cards

Tip number five to save money this season is to skip the Christmas cards. This is a tip that I personally don’t like because I LOVE LOVE LOVE sending and receiving Christmas cards. We use them as decor throughout our home and I start addressing and filling out my cards in early October so they are ready to mail right after Thanksgiving.

But I did just chat with a friend and she told me that’s one of the things she had to cut from her budget this year in order to make it all work. So, if it’s not in the budget, then it’s okay to say no. The idea behind the cards is to provide cheer for all the parties involved, but if they’re stressing you out, just let them go.

Tip #5: Look for Secondhand Treasures

The next tip is to consider secondhand purchases. Sure, there’s a pretty good chance your loved ones won’t be happy with ratty t-shirts or sweaters from your local thrift store, but the truth is that – if you’re willing to put in the work – it can be fun to cash in on secondhand deals and, if it’s done right, you can save a lot of money. Things like popular electronics, bikes, home decor and other items can be found in like-new condition at yard sales and secondhand shops or even on your free neighborhood trade groups. This is especially true when you have little ones who won’t notice if the item is new or not. Don’t spend the money if you don’t have to.

The key is to look for items that are lightly used or unopened. And don’t limit it to non-clothing items either. One year I was able to purchase my daughter a full outfit with tags still on from our local thrift store. It turned out to be her favorite gift of the year and cost significantly less than it would have if I’d paid the retail price.

So, definitely be on the lookout for those types of gifts.

Tip #6: Give Back Instead of Shopping

Another tip for saving money this holiday season is to give back instead of shopping. The truth is that when you dedicate your time to volunteer activities, whether that’s with your church, a local school, or a non-profit, you’ll be far less likely to overspend because you won’t be out at the mall or Target considering those amazing deals you just can’t leave behind. So, fill your time with those types of activities and you might just save some money along the way.

Tip #7: Snooze Promotional Emails

My final tip is to snooze those promotional emails. Remember when we talked about advertisements designed to draw you in so that you spend your hard-earned money? I don’t know about you, but in the months and weeks leading up to the holidays, the number of promotional emails I receive increases exponentially. If you find yourself in the same situation and those emails prey on your emotions and make you want to spend, then it’s time to snooze them from your favorite brands until after the holidays. And truly, if you’re struggling with them now, you might even want to unsubscribe completely so you can start the year with a clean inbox.

And while it’s not an email, I think there’s merit to removing apps from your phone that cause similar issues. For me, the Amazon app is just too convenient, so there are times I take it off of my phone and only use it when I sit down to my desktop computer. So, just something to consider.

How Will You Save Money This Holiday Season

So, there you have it – my seven tips to help you save money this holiday season. And I think it’s important to remember that saving money doesn’t have to be a huge gesture. Even little savings can make a big difference, so take them where you can get them.

Of course, if you don’t have a holiday budget in place just yet, that’s the first step. Make sure to grab my FREE Holiday Budget Worksheet to get that up and running so you can have the most successful holiday season yet. You can find it at lemonblessings.com/holiday or by following the link in the show notes.

Whatever you decide, just know that I’m cheering you on! You’ve got this! Have an amazing day and I’ll chat with you again next time!

The post 7 Simple Ways to Save Money This Holiday Season appeared first on Lemon Blessings.

Cosa sono gli ETF Hedged? Come funzionano? Quali sono i pro ed i contro? Quando ha senso utilizzarli?

Gli ETF Hedged sono una particolare tipologia di Exchange Traded Fund che permette di proteggersi dal tasso di cambio tra Euro e altre valute straniere.

Infatti quando investi in ETF su mercati internazionali, le oscillazioni valutarie possono influire significativamente sul rendimento complessivo del tuo investimento. In alcuni casi possono influire anche di più del rendimento del sottostante stesso!

Immagina di investire in un ETF su obbligazioni USA. Il loro rendimento è il 3% all’anno, ma il cambio euro dollaro porta ad una svalutazione improvvisa del dollaro rispetto all’euro. Ecco che il valore del tuo investimento non dipende più tanto da quel 3%, quanto più dalle oscillazioni del cambio euro/dollaro!

È qui che entrano in gioco gli ETF hedged, ovvero ETF a copertura valutaria.

In questo articolo analizzeremo cosa sono gli ETF hedged, come funzionano e quali sono i principali vantaggi e svantaggi di questi strumenti. 

Per spiegare il funzionamento di un ETF hedged però dobbiamo avere ben chiaro un altro concetto: la differenza tra la valuta di quotazione e la valuta di riferimento di un fondo.

Iniziamo proprio da qui.

Differenza tra valuta del fondo e valuta di quotazione del fondo

Se hai approfondito abbastanza il mondo degli ETF probabilmente ti sarai reso conto che alcuni ETF sono quotati in una valuta (nella maggior parte dei casi Euro) ma la valuta di riferimento è un’altra (spesso Dollari).

Quando si investe in un ETF quindi è importante considerare sia la valuta di riferimento del fondo che la valuta di quotazione.

• La valuta di riferimento di un ETF è quella in cui il fondo mantiene i suoi asset e determina il valore netto del portafoglio (NAV).
• La valuta di quotazione è quella in cui l’ETF viene scambiato sul mercato.

Ad esempio, un fondo che investe in titoli azionari statunitensi potrebbe avere il Dollaro americano (USD) come valuta di base ma essere quotato in Euro (EUR) sulla Borsa Italiana. Questo implica che, se non è prevista una copertura valutaria, l’investitore è esposto al rischio di cambio tra EUR e USD. Anche se il valore dei titoli azionari dovesse aumentare, un’eventuale perdita di valore del Dollaro rispetto all’Euro potrebbe erodere parte dei guadagni.

Esempio pratico: iShares Core MSCI World (SWDA)

Uno degli ETF più conosciuti per investire nel mercato globale è l’iShares Core MSCI World (SWDA). Questo fondo ha come valuta di riferimento l’USD ma viene quotato in EUR.

Cosa vuol dire in termini pratici?

Se l’Euro si rafforza rispetto al Dollaro, il tuo investimento in SWDA renderà di meno rispetto all’equivalente in dollari.

Al contrario, se l’Euro si indebolisce rispetto al Dollaro, il valore del tuo investimento in SWDA aumenta in termini di Euro.

Come fare a proteggersi da queste oscillazioni del cambio valutario?

Indovina…. con gli ETF Hedged!

Cosa sono gli ETF Hedged

Gli ETF hedged, o ETF a copertura valutaria, sono strumenti che utilizzano strumenti derivati, come contratti futures, opzioni, o swap per ridurre il rischio di cambio.

Se per esempio il Dollaro si deprezza rispetto all’Euro, la copertura valutaria offerta dagli ETF Hedged dovrebbe ridurre o eliminare questa perdita, garantendo all’investitore un ritorno più in linea con la performance dell’asset sottostante.

Gli ETF hedged quindi permettono di concentrarsi esclusivamente sulla performance degli asset sottostanti, senza doversi preoccupare delle fluttuazioni valutarie.

Sembra tutto bellissimo ma c’è una cosa importante da ricordare: la copertura comporta dei costi aggiuntivi che possono incidere sul rendimento complessivo dell’investimento.

Come qualunque costo quindi va valutato attentamente. Vale la pena pagare per la copertura valutaria?

Prima di rispondere a questa domanda vediamo come funzionano nello specifico gli ETF hedged.

Come funzionano gli ETF Hedged

Il funzionamento degli ETF hedged si basa su contratti derivati, in genere contratti a termine (forward) o opzioni, che bloccano il tasso di cambio a un livello prefissato.

Facciamo un esempio pratico.

Analizziamo il caso di un ETF che investe in titoli statunitensi e ha il Dollaro come valuta di riferimento, ma è quotato su Borsa Italiana in Euro. Il gestore del fondo utilizza una parte dei fondi in gestione per acquistare contratti derivati. Questi contratti derivati prevedono la vendita futura di una quantità prefissata di dollari in cambio di Euro. Questa promessa di scambio di valute future è studiata in modo tale da bilanciare l’eventuale apprezzamento o svalutazione del sottostante (i titoli statunitensi quotati in USD) dovuto alla variazione del tasso di cambio EUR/USD.

Questa operazione viene ripetuta con una frequenza costante, esempio giornalmente, mensilmente o trimestralmente a seconda della strategia del fondo (spesso trovi questo dettaglio nel KIID o nella scheda prodotto del fondo).

Ovviamente più è frequente, maggiore è il costo della copertura. Ma non solo, il costo dipende anche dalla differenza dei tassi di interesse tra le due valute coinvolte.

Esempi di ETF Hedged

iShares MSCI World EUR Hedged UCITS ETF

iShares MSCI World EUR Hedged UCITS ETF replica l’indice MSCI World, che include società a grande e media capitalizzazione nei principali mercati sviluppati. La versione EUR Hedged protegge il rendimento del fondo dall’oscillazione tra Euro e Dollaro, permettendo all’investitore di beneficiare della performance dell’indice senza subire l’effetto della volatilità del cambio EUR/USD.

Amundi S&P 500 II UCITS ETF EUR Hedged Dist ETF

Amundi S&P 500 II UCITS ETF EUR Hedged Dist ETF replica l’indice S&P 500, che rappresenta le 500 maggiori società quotate negli Stati Uniti. Grazie alla copertura giornaliera, il fondo protegge gli investitori dalle variazioni del tasso di cambio tra Euro e Dollaro, rinnovando costantemente la copertura valutaria.

Xtrackers II USD Emerging Markets Bond UCITS ETF 1C – EUR Hedged

L’Xtrackers II USD Emerging Markets Bond UCITS ETF 1C – EUR Hedged mira a riflettere le performance del debito investment grade e high yield denominato in dollari US emesso da governi, governi regionali ed entità governative, domiciliate nei paesi dei mercati emergenti.

Quali sono i pro e i contro degli ETF Hedged

Così come tutti gli strumenti finanziari, anche gli ETF con copertura valutaria hanno sia dei pro dei contro.

Scopriamoli.

Vantaggi degli ETF Hedged

Protezione dal rischio di cambio
La copertura valutaria permette di proteggersi dalle oscillazioni dei tassi di cambio, garantendo un rendimento più in linea con la performance dell’asset sottostante.

Minore volatilità
Grazie alla copertura valutaria, gli ETF hedged tendono a mostrare minore volatilità rispetto ai corrispettivi non coperti, riducendo il rischio complessivo del portafoglio.

Svantaggi degli ETF Hedged

Possibile sotto-performance rispetto agli ETF non coperti
In scenari in cui la valuta di riferimento del fondo si apprezza rispetto alla valuta di quotazione, un ETF hedged potrebbe performare peggio rispetto a un ETF non coperto, che beneficerebbe invece della rivalutazione.

Complessità aggiuntiva
La gestione della copertura richiede l’uso di strumenti derivati, che aggiungono complessità operativa al fondo. Anche se questo aspetto non incide direttamente sull’investitore, è comunque un fattore da considerare.

Costi aggiuntivi
La copertura comporta costi di gestione superiori rispetto agli ETF non coperti. Questi costi possono incidere sul rendimento complessivo, specialmente in periodi in cui il rischio di cambio è ridotto.

Vediamo per esempio la differenza di costo tra ETF Hedged e non Hedged per alcuni ETF.

Conviene investire in ETF hedged?

La domanda dunque è: vale la pena pagare un piccolo extra per avere la copertura valutaria?

Le considerazioni che vengono fatte in questi casi sono:

• nel lungo termine,  la copertura valutaria non è efficiente sul mercato azionario
• nel breve termine può avere effettivamente degli effetti benefici sul tuo investimento
• la copertura valutaria invece può avere senso quando si parla di investimenti obbligazionari, dove l’impatto del tasso di cambio può diventare molto rilevante se non addirittura dominante rispetto al rendimento delle obbligazioni (es. un obbligazione che rende il 2%, mentre il tasso di cambio oscilla del 10% in un anno specifico)

Detto questo quindi investire in ETF hedged può essere vantaggioso in specifiche situazioni:

Quando l’investitore ha un orizzonte temporale di breve o medio termine
Se hai un orizzonte temporale d’investimento relativamente breve (da pochi mesi a qualche anno), la volatilità del cambio può incidere in modo significativo sui rendimenti complessivi del tuo investimento.

Di conseguenza potresti considerare di inserire gli ETF hedged, per evitare che improvvisi movimenti valutari compromettano il risultato dell’investimento.

Per proteggere un portafoglio denominato in una valuta specifica
Visto che con ogni probabilità spendi e guadagni in Euro, è probabile che non ti interessi l’andamento del tuo investimento in dollari. Quello che conta alla fine è il controvalore in Euro. Adottando un  ETF hedged potresti limitare il rischio di cambio e mantenere il portafoglio concentrato sulla tua valuta domestica (in questo caso l’Euro).

Per investitori con bassa tolleranza al rischio
Per definizione gli ETF hedged coprono dal rischio di cambio. Eliminando questo rischio, si va quindi a ridurre il rischio totale del portafoglio, rendendo l’investimento più prevedibile. Gli investitori più prudenti potrebbero quindi considerare la versione Hedged per ridurre il rischio del loro investimento.

Quando si investe in valute notoriamente instabili
Se l’ETF investe in asset denominati in valute con alta instabilità (come la lira turca o il real brasiliano), la copertura valutaria può ridurre i rischi derivanti dalla fluttuazione significativa di queste valute, proteggendo il capitale e migliorando la gestione del rischio.

ETF Hedged – Conclusioni

Gli ETF Hedged rappresentano una soluzione interessante per coprirsi dal rischio di cambio quando il fondo investe in sottostanti quotati in valute straniere.

Questi ETF tendono ad avere una volatilità minore rispetto all’equivalente non hedged ma hanno anche dei costi maggiori legati alla necessità di acquistare i contratti derivati necessari per la copertura valutaria.

Numerose ricerche hanno dimostrato che nel lungo termine la copertura valutaria è inefficiente visto che ha un costo superiore rispetto ai benefici che porta.

Nel breve termine invece la copertura valutaria può effettivamente essere molto efficace per gestire eventuali oscillazioni repentine nel tasso di cambio.

Dunque la chiave per scegliere se utilizzare o meno un ETF hedged dipende dalla tua strategia nel lungo, medio e breve termine. In altre parole dipende dalla tua asset allocation.

Per maggiori dettagli su come fare l’asset allocation ti rimando alla Guida al Portafoglio d’Investimento.

The post 219: Smart Shopping Strategies for Black Friday appeared first on Wealthy Mom MD®.

Reading Time: 2 Minutes

I was perusing the interwebs whilst trying to put BabyFrugalSamurai down to sleep last night, and an article happened to catch my eye:

House prices fall in 40pc of Sydney suburbs

“House prices are now falling across two out of every five Sydney suburbs, a five-fold increase from a year ago, and the highest level in 20 months… the share of Melbourne suburbs where house values dropped in the past three months also blew out to 76.3 per cent, six times higher than last year”.

Holy smokes was my initial thought, wondering if the precipitous drop had ensnared the suburb where we reside.

I quickly scanned the rest of the article, and breathed a sigh of relief when I couldn’t spot said suburb.

“Looks like we dodged a bullet darling”, I whispered to BabyFrugalSamurai.

She looked at me, and yawned.

Turning back to the article, I read:

“Sydney home values fell by 0.1 per cent last month, the first monthly decline in almost two years, while Melbourne dipped by 0.2 per cent as the housing outlook dimmed”.

0.1%? Surely that’s just a rounding error.

Hardly enough to get your underpants twisted in a knot.

Although what is more knotting, and which I think is driving the stagnation, is the high number of property listings which have come onto the market:

“Total listings climbed by 7.1 per cent across Sydney over the past four weeks to November 3 compared to a year ago and lifted by 4.2 per cent and 4.9 per cent in Melbourne and Brisbane, respectively.

Total listings are now 13.2 per cent above the previous five-year average in Sydney and 13 per cent higher in Melbourne”.

I explained to BabyFrugalSamurai that any high school economics student will tell you if supply increases whilst demand remains relatively stable, then prices will fall.

She just looked at me blankly.

This increase in supply can also be seen here:

Practically every major city (bar Darwin) has seen a double digit growth in new listings.

Couple this with higher interest rates, higher cost of living and a general sluggishness in the economy and it really isn’t a big surprise to see house prices have either slowed down or gone backwards across our cities (although Perth and Adelaide still fighting the good fight).

“What would I be putting my money in then you ask?” I turned to BabyFrugalSamurai.

She was almost drifting off.

Well, first of all – I honestly would not be putting my money into the Australian residential property market right now, there are so many better risk/reward payoffs at the moment (see cryptocurrency).

But if you twisted my arm, I would be taking a long hard look at Melbourne.

I’ve said it before, but I truly think Melbourne, from an investors point of view offers the most attractive bang for buck right now.

It has the population base, immigration levels, job opportunities and economic levers to grind through most downturns.

Forget the ridiculous levels of state government regulation and bullshit new taxes being imposed – just factor those numbers into your calculations.

You make money when you buy – and certainly from a counter-cyclical stance, investing in Melbourne to me, makes the most sense.

And the beauty is you don’t even have to act swiftly.

No, like I’ve said time and time again – the property market is one giant cruise ship.

It takes a helluva long time to get going, and a helluva long time to stop.

So you’ve got time, be patient and get all your ducks lined up now, if you’re seriously considering buying another property.

I looked down at BabyFrugalSamurai.

She had fallen asleep.

Did you enjoy this post? If yes, put your email in and click on the little “subscribe” button at the top right. You’ll also receive a free copy of the Complete Aussie FIRE e-book – The Ultimate Guide to Financial Independence for Australians.

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P.S. Every post is the personal opinion of yours truly, please seek your own personal financial advice regarding your own personal circumstances.

The post House Prices Fall In 40% Of Sydney Suburbs appeared first on The Frugal Samurai.

Want to go shopping in Anchorage, Alaska, while you’re visiting the city? Here’s a guide on what stores to visit in Anchorage, and ones I would recommend based on multiple trips to this city. Here’s our shopping guide to Anchorage, Alaska.  

Planning an Alaska Trip? Here’s what to do: 

• How to spend Two Weeks in Alaska (itinerary)
• Alaska Planning
• Holland America Alaska Cruise Review
• Family Fun at the Reindeer Farm in Palmer Alaska
• Buy our Alaska Book (Amazon)

Stores To Visit in Anchorage, Alaska

Note that if we put in the times in the stores below, they are all Alaska time.

Grizzly’s Gifts

Address: 501 W 4th Ave, Anchorage, AK 99501
Hours: Open daily from 9 am to 8 pm
What I bought here: Scrimshaw earrings in ancient ivory

Pro Tip: If you’re staying at the Historic Anchorage Hotel, let the cashier know so you can get a 10% discount on your purchase price.

Grizzly Bear Gifts is located next door to the Historic Anchorage Hotel and the Hilton. You won’t miss it, they have a giant bear on the second floor of the store. The store also puts out life-sized mascots in front that you can take photos with. 

If you’re looking for scrimshaw earrings, this is the place to go in downtown. The interiors have a kooky design and have a lot of variety so take your time looking for interesting and unique pieces. 

The Gift Store Inside the Captain Cook Hotel

Address: 939 W 5th Ave, Anchorage, AK 99501
Looking for local souvenirs in the Western part of downtown? If you find yourself close enough to the Captain Cook hotel, you can get local souvenirs at the gift store inside. Not only do they have amazing accessories and handmade gifts, its convenient enough to visit if you’re staying at the Captain Cook. 

Polar Bear Gifts Outlet 

Address: 600 W 4th Ave, Anchorage, AK 99501
Hours: Daily from 8 am to 6:30 PM

What I bought here: Discounted hoodie since it’s colder in Anchorage than I thought!

Pro Tip: If you just want discounted items to bring home and don’t care if they’re made in China, make the Polar Bear Gifts Outlet stores your first stop.  

The items that are discounted the most are located on a rack in the back of the store. Make your way there first then look for other gifts after. Depending on the store, you may also find a table with discounted goodies. 

The store charges for bags, but they’re distinctive. If you see people walking around with a yellow paper bag in Anchorage, it’s from Polar Bear Gifts! 

Anchorage Museum’s Gift Shop

Address: 625 C St, Anchorage, AK 99501
Hours: Tuesdays to Saturdays 10 am to 6 pm, Sundays from 12 pm to 6 pm. Closed Mondays

If you have a bigger budget and are going to the Anchorage Museum, why not check out their gift shop? Named one of the best places to shop in Anchorage, their selections are good, albeit in a small store. 

The Kobuk Anchorage

Address: 504 W 5th Ave, Anchorage, AK 99501
Hours: Tuesdays to Saturdays 9 am to 4 pm. Closed Sundays and Mondays.

More than a cafe, The Kobuk is also a store. During the summer, The Kobuk transforms in the evening into a wine bar, and there are plenty of things to try. In the daytime, aside from local gifts, coffee is available. What better place to go than to have a coffee run and souvenir shop at the same time? 

Alaska Native Center’s Gift Shop

While the Alaska Native Center is a 10-minute drive from the downtown and midtown areas of Anchorage, it will not disappoint. The museum gift shop is big and is well-stocked with Alaska-made items. 

The accessories are plentiful, with loads of designs and materials to choose from. There’s enough variety for every member of the family if you have the budget for it. 

Occasionally, some craftsmen and women sell their goods on tables at the Alaska Native Center. It’s a great way to support local businesses while also buying a souvenir from the folks who made the items themselves. 

Shopping in Anchorage, Alaska

Hopefully, this article helped you plan where to shop and what to buy in Anchorage. Bring your own reusable bags with you since Anchorage charges for plastic bags whenever you shop in a store. Are you excited about your trip? 

Please share this article with those who are going to Anchorage and are going shopping. You’ll help us grow as a blog!

The post Best Shopping in Anchorage, Alaska (What Stores to Visit) appeared first on A Journey We Love.

If you’re going to find a bank for your kids, you should also find a smart banking solution for your whole family. After all, no one wants to juggle sending money back and forth or remembering millions of passwords. Then, check out our best banks for families. 

This list of banks offers products to help kids build their financial literacy. Additionally, they also offer services that will address your banking needs. Think of the best banks for families as a one-stop shop to help you build a financially brighter future. 

Best Banks for Families

These are some of the best banks to bank with if you have kids and teens at home. Read on to learn more! 

Capital One

Capital One is an excellent bank for families. It is one of the original online banks that also has in-person locations with both kids and teen accounts. 

Benefits for Families

Some of the best Capital One benefits for families include: 

• High APY: A lot of banks with physical branches don’t offer competitive interest rates. That’s not the case with Capital One! As of the time of this writing, they are offering a 4% APY with their 360 Performance Savings account.
• Actual Locations: Are you looking for a bank you can visit in person? Capital One has branches in some locations. Plus, Capital One cafes are popping up too! 
• Kids Accounts: The kids savings accounts feature higher interest rates than many in-person banks. With no fees and no minimums, all kids can learn to be savers. Kids Savings Accounts with Capital One are offering 2.5% APY as of the time of this writing.
• Teen Accounts: Your teen gets the freedom to manage their money, but there are oversight options for parents to help monitor account activity as well. With their Money Teen Checking account, your teen will get their own debit card with their name on it and an app to review their account balances.
• Options for Parents: Capital One offers a variety of banking options, including checking accounts, savings accounts, and CDs. 
• Time-Tested Reputation: Capital One is a well-known online bank. For many people, that established history is important when it comes to entrusting a bank with your money! 
• FDIC Protected: Your bank deposits are FDIC-insured up to $250,000.

Things to Consider

If physical branches really matter to you, it will be important to check your area. Capital One has an inconsistent footprint, with cafes in some big cities and branches in other places.

Additionally, the APY for the Kids Savings Accounts is lower overall than the competition.

ATM Access

70,000 fee-free ATMS with Allpoint, Money Pass, and Capital One. Find them with this ATM locator. 

Costs / Fees

No monthly fees, no minimums, no overdraft fees. 

Ally

Ally is a longstanding favorite in the personal finance community! While it may not have dedicated kids’ accounts, Ally is still a contender for top family banks.

Benefits for Families

• Well-Known Online Bank: Ally is perhaps the most well-known online bank. That means that you can feel at ease using their robust service offerings.
• FDIC Protected: Your bank deposits are FDIC-insured up to $250,000.
• Investment Options. In addition to offering savings and checking accounts, Ally also has investing and retirement products as well. 
• Bucket Tools. One of our favorite ways to set up sinking funds is to use the buckets tool in an Ally savings account. No need to manage multiple savings accounts; instead, you can label, categorize, and set goals within a single Ally account. 
• High APY. Ally offers one of the most competitive online interest rates on your money. As of the time of this writing, Ally offers 4% APY on all savings accounts.

Things to Consider Before Getting An Account

Ally does not have any physical branches. Additionally, there is not a lot of detail on kids accounts on their site. In fact, they don’t really target family finances specifically. (But we can help you set up an Ally account for your kids!)

If allowing your child to manage their own debit card is important to you, it’s worth noting that debit cards do not have kids’ names on them. Also, they will not have access to their own app experience to check their account balances. Get ready for “Mom! Dad! How much do I have in my account?”

ATM Access

You can access your money using Allpoint, Money Pass, or Ally ATMS. Find an Ally ATM here!

Costs / Fees

No monthly maintenance fees, no minimums (on savings, checking, and CDs), and no overdraft fees. 

Crew

Crew knows that debit cards for kids are important teaching tools. That’s why Crew offers a variety of tools including a kids debit card to help you teach your kids about financial literacy. 

Benefits for Families

• High APY: Crew savings accounts and checking accounts have some of the highest interest rates around. Currently, they are beating out both Ally and Capital One at 4.2% APY, but that is subject to change.
• Allowance Feature: Do you want to use an allowance with your kids but have a hard time making the cash-to-online bank transfer? Crew has a built-in allowance feature to make it easy to pay your kids every week or every month. 
• Pockets Feature: Set up sub-accounts within your savings account to set money aside for certain goals. 
• Kids Debit Card: Kids receive a Crew debit card with their name on it and can log-in to view their account balances and transactions. 
• FDIC Protection: Your money is FDIC-protected through Bangor Savings Bank.

Things to Consider

Crew is relatively new to the finance scene. As such, families might be hesitant to use them. Though your money is FDIC protected by Bangor Savings Bank, Crew is a fintech company, not an official bank. Additionally, there are no physical locations. 

Check out our full Crew review to learn more!

ATM Access

Crew users can access ATMs on the Mastercard, Maestro, or Cirrus networks and be reimbursed up to 20 times per year. 

Costs / Fees

No minimum balance or deposit is required. Right now, you can get an extra 0.5% APY for three months by using our affiliate link in the button below.

Chase

Chase offers a variety of products and services for families. The standout option is Chase First Banking, a debit card designed to help kids ages 6-12 learn to manage their money. The card can be used by teens up until they are 17. 

Benefits for Families

• In-Person Banking. Chase boasts almost 5,000 branches, so there’s a good chance you can bank in person near you. 
• Solid Financial Institute. Chase is one of the best banks for families in the USA and abroad. Its global reputation means you can trust them and access your money from virtually anywhere. 
• Established Accounts. Many adults are Chase credit cardholders. As a result, it may be very convenient to pick up more products and services from a bank you already use.
• Chase First Banking. Chase offers a debit card geared toward kids ages 6-12 tied to a bank account owned and managed by a parent or guardian. 

Things to Consider

Chase offers a paltry APY. If you want to teach your kids about compounding, Chase savings accounts aren’t going to be much help. 

Additionally, the app experience is only OK. It’s not difficult to navigate, but it doesn’t offer helpful features like Ally Buckets or Crew Pockets.

ATM Access

The Chase ATM locator will help you find one of nearly 15,000 ATMs in the US or worldwide. 

Costs / Fees

Different Chase accounts have many different fees. To avoid surprises, Chase spells them all out here.

Bank of America

Bank of America makes our list of best banks for families because of its SafeBalance Banking for Family Banking offering. That’s because Bank of America understands that not every child is ready to manage money on their own. With a SafeBalance Banking account, children can learn to make money-smart decisions with your help! 

Benefits for Families

• Many Branches: There are nearly 4,000 Bank of America branches in the United States. That means there’s a good chance you can bank in person if that matters to you!
• Established Accounts: It’s possible you may already be a Bank of America customer. If you have an established account with them, it’s certainly convenient to use more products and services within one bank. 
• Well-Known: Bank of America is a well-known, FDIC-insured bank. 
• SafeBalance Banking for Family Banking: This bank account (that comes with a debit card!) is designed to help children under 16 manage their money better. You can use parental controls to guide your child’s spending. It’s also worth noting that there are no monthly fees! 

Things to Consider

Bank of America offers a lackluster APY, which means your money isn’t working as hard as it could be. Plus, the app user experience is equally dull.

Perhaps the biggest thing to consider is that Bank of America users say their customer service experience is poor. 

ATM Access

You can use the Bank of America ATM locator to access 15,000 ATMs nationwide!

Costs / Fees

Different products and services come with different fees. Use the fee finder to learn more about what you might pay for Bank of America services. 

Final Thoughts on Best Banks for Families 

When it comes to financial literacy, nothing takes the place of allowing your kids and teens to manage their own money. However, not all banks make it easy to do that.

The banks on this list are some of the best banks to bank with if you are looking for kids savings accounts, checking accounts to manage with your child, or kids debit cards. By allowing kids to manage their money with your help, you can set them up for a successful financial future. At the same time, parents need a great bank too. These options support with the needs of the entire family!

Do you have another suggestion for our best banks for families list? Have you ever used one of these banks?

Please let us know in the comments below.