Author: Maurie Backman

Losing a job can be a huge blow at any age. But when you’re in your 60s, it can be an even harder struggle.

Although it’s illegal for employers to discriminate against job candidates based on age, it happens frequently and it’s hard to prove if it happens to you. AARP reports that 74% of job seekers aged 50 and over have concerns that their older age will be an impediment to being hired.

If you’re in the position in question, it could make for a difficult financial situation. Plus, you’re still a year away from being able to claim Social Security benefits.

While you’re old enough to access a 401(k) or IRA without facing an early withdrawal penalty, tapping one of those accounts at 61 could lead to a savings shortfall later on.

There’s also the issue of health insurance to think about. If you were covered through your job, you’re still four years away from being eligible for Medicare.

Here’s how to handle this unfortunate situation on a short- and longer-term basis.

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Plan of action: Up to 3 months

Losing a job can be a shock, so you may need a few days or even weeks before you feel ready to dive into a job search. But one thing you should do immediately is file for unemployment benefits.

Typically, you’re eligible for up to six months of benefits if you lose a job through no fault of your own and meet your state’s earnings requirements. Unemployment benefits won’t replace your full paycheck, but at least you’ll have a portion covered.

You should also talk to your employer about severance, if applicable. And if there’s no severance package, see if you’re entitled to be paid out on accrued vacation or sick days you never used. That could add some extra money in your bank account while you figure out your next steps.

Additionally, it’s time to assess your emergency fund to see how many months of bills it can cover. If you’re able to cut back on spending, between lower expenses, your wife’s paycheck and unemployment benefits, you may be able to get away with minimally tapping your emergency fund while you start your job search.

You’ll also need to figure out next steps regarding health insurance — check to see If you can get onto your wife’s job plan (if it offers health benefits).

The Consolidated Omnibus Budget Reconciliation Act (COBRA) may be an option, as it allows you to retain your employer coverage for a period of 18 to 36 months. But it can prove to be extremely expensive, since you’re effectively paying the unsubsidized rate for your old health plan. You may find that a marketplace plan through healthcare.gov is cheaper, especially if you qualify for a subsidy.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Plan of action: Months 3 to 12

This is the time to be aggressively job-hunting. Until you’re able to find a full-time job, it’s important to preserve your savings — both your emergency fund and your retirement nest egg.

If you’re still unemployed at the six-month mark, look at gig work, a side hustle or a part-time job when your unemployment benefits run out. That way, you’ll have some income coming in while you continue looking for a full-time job.

It’s also important to look at your retirement portfolio carefully. If you weren’t planning to use that money for another five years or longer, you may have a larger portion of your portfolio in stocks.  If it’s looking like you may need to tap into your nest egg sooner, shift a portion of your portfolio out of stocks and into assets that are stable, such as bonds and CD ladders.

The good news is that interest rates are still pretty strong, so you can earn a decent return from a CD ladder without taking on the same risks you do with other investments. You can even keep a chunk of your retirement funds in a high-yield savings account, for added flexibility.

Plan of action: 12 months and beyond

It can be discouraging once you’ve reached the 12-month mark of being unemployed. But keep the faith and don’t give up!

It could make sense to shift away from seeking a full-time job and see if you can get by with a couple of part-time jobs or expand your side hustle to tide yourself over until retirement.

Of course, you may not end up being able to earn the income you want in the coming years, so you’ll need to figure out if you can maintain a pared-down lifestyle to avoid draining your nest egg early.

By now, your home may be paid off. If so, downsizing is an option. It could allow you to not only lower your housing costs, but walk away with some equity you can use as income.

Another option you can look at is claiming early Social Security. You’ll face a permanent reduction in benefits if you don’t wait until age 67 to claim them, since that’s your full retirement age based on your year of birth. But if you’re scared to tap your retirement funds and can only reduce your expenses so much, at least it’s on the table.

Depending on your situation, it could make more sense to tap your savings than to claim Social Security early. If you get a full-time job at the 18- or 24-month mark, you can replenish your savings then. But once you claim Social Security early, you’re generally locked into the lower monthly benefit for life.

Looking on the bright side, if your financial situation permits, you could leverage your current lower income by converting some retirement funds to a Roth IRA, which offers tax-free withdrawals in retirement.

Keep in mind, though, that you’ll need to pay taxes on the converted amount in the current tax year. If you’re experiencing financial difficulties, adding this tax burden might not be the best choice right now.

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Some people like to celebrate their birthdays in a low-key fashion. But Hester Petty of Jacksonville, Florida, decided her milestone birthday warranted a week-long trip to New York City.

Petty turned 100 on May 17. And she isn’t done by a long shot.

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“I really feel that I might make another 100 [years],” Petty told News4JAX in a story published May 31.

Along with sharing the details of her birthday trip, she sounded off on the keys to living a joyful life.

A well-deserved celebration

Petty decided to treat herself to a week-long trip to New York and New Jersey to see friends and family, visit some familiar city hotspots and take in some nightlife.

Petty’s first stop in New York City was Grand Central Station’s iconic Oyster Bar & Restaurant. As she told News4JAX, Petty would dine there with her late husband, Leon, while she attended college and he worked in the area. Petty and her husband were married for 71 years.

“They had renovated the whole area,” Petty said. "It was really very, very interesting for New York because it was [dry] when I was there in 1947.”

Petty also visited the Museum of the City of New York. The late Shirley Chisholm, a longtime friend of hers, is the subject of an exhibit there.

But Petty’s visit wasn’t just a trip down memory lane. According to the broadcaster, she also enjoyed three Broadway shows — Wicked, Hamilton, and MJ the Musical. And a big highlight of Petty’s trip was a birthday meal at her hotel.

“The chef came out with a cake,” Petty said. “They were singing, the people at the hotel, a great, great celebration. I am overwhelmed really. I cannot find words to express how wonderful and compassionate Americans are. I am so thankful and I want to thank America for it being here because I have had a big, long journey and I have lots to tell.”

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Living a rich life in your golden years

It’s clear that Petty isn’t letting her older age stop her from getting out and exploring.

“There is so much to learn and so much given,” she said. “The world is so big and I have not explored many parts of it. Just a fraction. I’ve been all over the world, but I still have missed so much and there’s so much more to learn.”

One of the best ways to make the most of your older age is to think about what’s most important to you. A 2024 Transamerica Institute survey found that retirees’ top priorities were enjoying their lives (70%) and being fit and in good shape (67%). A good number of retirees also prioritized time with family (32%) and lifelong learning (12%).

Of course, if you want to enjoy your later years, it’s important to take good care of your health. That means following up with doctors on routine matters and taking care of your body through diet and exercise.

Another way to truly enjoy your golden years is to stay true to who you are.

“I strongly felt I should do what I think is right. I believe that still today,” Petty said. “If you move along and figure things out for yourself, as long as you feel strongly that you are right, you will make it.”

Petty also cited “love” as something that got her through her first 100 years of life.

The centenarian has a doctorate in education and spent 45 years working in roles that included being a teacher, administrator and college professor, reports News 4JAX. Petty has also documented her family’s experience with discrimination and perseverance in writing, yet remains thankful for the life she’s lived.

Interestingly, the number of Americans who are 100 or older is expected to more than quadruple in the next 30 years, from an estimated 101,000 in 2024 to 422,000 in 2054, according Pew Research, citing Census Bureau data. In 2024, 78% of Americans aged 100-plus were women and 22% were men.

Whether you’re the adventurous type, like Petty, or you prefer to stay closer to home, either way, making it to 100 is an impressive feat. You shouldn’t hesitate to celebrate that milestone any way you see fit.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Redfin puts median asking rent in the U.S. at $1,633, so if you’re paying $2,000 a month in rent, that doesn’t seem so out of line – especially if you live in a city with higher rent prices, or if you’re renting a larger unit because you need more than one bedroom.

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Housing is the largest expense for Americans. But if you’re spending $2,000 a month on rent and your take-home pay after taxes is only $4,000, you may be in a position where it’s tough to impossible to cover your remaining bills.

The popular 50/30/20 budgeting rule says 50% of your take-home pay should cover your needs, 30% should go towards wants and 20% is for savings and debt repayment. However, such guidelines are not realistic or wise for everyone, so don’t worry if you can’t meet those goals.

Your situation isn’t hopeless. But some changes may be in order so that you don’t fall behind on either your rent or your non-housing expenses.

How to cope when rents are high

One thing you can do is create a budget for yourself and try to identify areas you can cut back on. You can use one of several budgeting apps available to make this process easier.

Housing may not be one that immediately comes to mind. But if you live in a walkable area, it may be possible to get by without a car and rely on buses and the occasional rideshare.

AAA puts the average cost of owning and operating a new car at $1,024.71 per month. But even used vehicles can be expensive to own and maintain. So if you’re able to unload that expense, it could help.

You can also look into getting a side job to boost your income. However, if you’re 32 with two kids, your children may be on the young side. And that means childcare costs could eat into your side hustle profits. So you may want to focus on opportunities you can do from home, like data entry.

You can also see if your state has a rental assistance program you can apply for. You may, for example, be eligible for subsidized housing. Contact your local public housing agency to find out more.

Finally, do some research to see if moving to a different neighborhood results in lower rent prices. If you have children in school, moving may not be easy, as it could mean having to switch districts. But if you’re struggling to keep up with your bills, it may be your only choice for the time being until your income increases or other costs of yours start to go down.

Once you feel like you’re covering your basic costs, focus on building an emergency fund that will protect you from taking on debt in the future.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Why so many Americans are rent-burdened

An estimated 21 million renter households in the U.S. are cost-burdened, says the U.S. Census, meaning they spend more than 30% of their income on rent. That represents nearly 50% of all renter households based on 2023 data.

Rents soared after the pandemic, and the reason largely boils down to limited supply and high demand. According to Zillow, the U.S housing shortage grew to 4.5 million homes in 2022, up from 4.3 million the year before. "This balance reached a tipping point when the Great Recession ushered in a decade of underbuilding and millennials — the biggest generation in U.S. history — reaching the prime age for first-time home buying. The result has been worsening affordability, now exacerbated by stubbornly high mortgage rates," it said in a press release.

The National Low Income Housing Coalition recently said the U.S. has a shortage of 7.1 million affordable housing units. Only 35 affordable and available rental homes exist per 100 extremely low-income renter households.

The good news is rents have been gradually decreasing. The bad news? This makes multifamily housing less appealing to investors, according to Realtor.com, which could result in lower rental unit inventory going forward and, in turn, cause rent prices to go up.

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Social Security has been under scrutiny now that the Department of Government Efficiency (DOGE) is digging into its finances.

For this reason, Social Security is invested in recouping all of the money it can due to erroneous payments.

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That’s how 65-year-old Ruth Podmanik from Sheffield Lake, Ohio found herself in a messy situation. The recent retiree revealed that her husband, Ed, passed away from leukemia back in 2012.

She’d recently been approved to start receiving her late husband’s Social Security benefits. But now, as News 5 Cleveland reports, they’re going after Ruth for nearly $70,000 the agency claims was paid out mistakenly to Ed.

“I feel scared,” Ruth told News 5. “Am I going to have to sell my house?”

Social Security policies are leaving older adults confused

The Center on Budget and Policy Priorities says that Social Security has a payment accuracy rate of over 99%, and that only 0.3% of its payments are improper. Still, between 2015 and 2022, Social Security made roughly $72 billion in erroneous payments, according to its Office of the Inspector General.

Meanwhile, Podmanik says her husband received Social Security payments during a five-month period of being out of work due to his illness. But when Ed went back to work, Social Security kept sending him money.

She told News 5 that Ed called the Social Security Administration (SSA) "constantly" to ask why he was continuing to get benefits. They told him he was entitled to the money because of his leukemia.

Now, Social Security is coming after Ruth for an overpayment to Ed of over $69,000.

“Not once did they say anything to me about, ‘Hey, you know you still got an overpayment here?’” Podmanik told News 5.

Despite reaching out to the SSA to resolve the matter, she isn’t getting answers. And she’s not the only one.

"Every year, we’ve seen an increase in the volume of people calling and looking for help," Natasha Pietrocola, director of the Division of Senior and Adult Services in Cuyahoga County, told News 5.

She says many older Americans are confused about Social Security overpayments and are worried about the consequences.

Social Security can reclaim its money by withholding benefits from seniors. But, as Pietrocola told News 5, "that’s going to have devastating effects for them to be able to actually afford to live."

Part of the problem stems from a recent SSA change. In March, the agency said it’s looking to recoup overpayments at a rate of 100%. This means that the SSA can withhold 100% of a person’s monthly benefits to recover money it’s owed.

The change amends a previous rule where the SSA could only withhold 10% of benefits to recoup overpaid funds. The change is expected to help Social Security recover around $7 billion over the next 10 years.

Social Security later amended its message to limit clawbacks to 50% of benefits.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

How to cope with changes to your Social Security checks

If you’re someone who’s collecting Social Security, you may be reliant on that money to cover your expenses.

So, if you get a notice letting you know that your monthly checks are being reduced due to an overpayment, it could have a huge impact on your ability to pay your bills.

If that happens, your first move should be to contact the SSA and ask for an explanation if there’s something about the notice that isn’t clear or you don’t agree with it. If you can’t get an answer by phone, you may want to make an appointment at your local Social Security office to speak to a representative in person.

It’s also possible to appeal a decision made by the SSA. And if that doesn’t help, you can weigh your options for low-cost legal aid.

It’s also a good idea to create a my Social Security account and monitor it regularly. And be sure to reach out to the SSA if you start receiving smaller benefits or your benefits go missing.

Meanwhile, Podmanik is still trying to get answers from Social Security.

"There’s days when I sit here and I cry," she said. "It wasn’t my mistake. It wasn’t my husband’s mistake for the overpayment. It was their mistake."

News 5 reached out to the SSA to look into her situation. But for Cuyahoga County residents, further resources for similar situations may be available through the Division of Senior and Adult Services.

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Planning for retirement is something that’s best to do throughout your career, not just when you’re approaching that milestone and have a year or two left to work.

Only half of Americans have tried to calculate how much money they’ll need in retirement, according to a 2024 survey by the Employee Benefits Research Institute (EBRI).

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However, among those workers who did the calculation, 52% were inspired to save more. Even if you feel confident in your ability to cover your retirement expenses, it’s important to be mindful of hidden costs that could impact your retirement finances. Here are three to keep on your radar.

Healthcare expenses not covered by Medicare

Fidelity Investments expects the typical 65-year-old to spend $165,000 on healthcare during retirement. That may sound surprising, but even with Medicare coverage, several expenses could arise.

For one thing, Medicare isn’t entirely free. Most enrollees don’t pay a premium for Part A, which covers hospital care. However, Part B, which covers outpatient care, charges a monthly premium, as do some Part D drug and Medicare Advantage plans. Plus, higher earners risk surcharges on their Medicare premiums.

Premiums aside, there are a number of expenses that original Medicare (Parts A and B plus a Part D drug plan) does not cover, which retirees commonly need. These include dental care, eye exams, prescription glasses and hearing aids.

You’ll also face copays and coinsurance under Medicare that you must pay out of pocket. If enrolled in original Medicare, you can buy supplemental insurance known as Medigap to help offset those costs. But then you’re looking at premiums for Medigap, too.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Long-term care

It’s a big misconception that Medicare will pay for you to live in a nursing home or cover the cost of a home health aide. Medicare’s scope of coverage is typically limited to medical issues only. So while Medicare might pay for rehab or physical therapy because you broke a hip, it won’t pay for a home health aide because you’re getting older and need help dressing yourself and using your kitchen.

Meanwhile, the cost of long-term care can be astronomical. According to Genworth, here are the annual median costs for certain long-term care services in the U.S. for 2024:

Home health aide: $77,792

Assisted living: $70,800

Shared nursing home room: $111,325

Private nursing home room: $127,750

One option for defraying these costs is to buy long-term care insurance. But that might bust your budget, too. The American Association for Long-Term Care Insurance says an average $165,000 policy with no inflation protection purchased at age 55 by a single male costs $950 a year. For a 55-year-old female, that policy costs an average of $1,500. And for a 55-year-old opposite-gendered couple, the average price is $2,080 combined.

Of course, the actual cost of long-term care will depend on factors such as where you’re located, your age at the time of your application and the state of your health. But all told, you might spend a lot of money to put that coverage in place.

Inflation

In recent years, retirees and working Americans alike have experienced their share of rampant inflation. But even when inflation isn’t as aggressive, it’s still a hidden cost that can upend your retirement budget.

Social Security benefits are, thankfully, designed to keep up with inflation. They’re eligible for an annual cost-of-living adjustment tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers, a subset of the more widely known Consumer Price Index.

But ensuring that your savings can keep up with inflation is also critical. One way to do this is to avoid eliminating equities from your portfolio in retirement. You need some growth in your portfolio to make up for rising living costs. You can work with a financial advisor to develop an appropriate asset mix based on your income needs and risk appetite.

A financial advisor can also help set you up with assets in your portfolio that generate income. These could include dividend stocks, bonds and real estate investment trusts (REITs).

It could also be a good idea to delay your Social Security claim past your full retirement age, which is 67 for anyone born in 1960 or later. For each year you do, until age 70, your benefits rise 8%. And that boost is guaranteed for life.

Having a larger monthly benefit gives you more leeway to tackle not only inflation, but also surprise medical and health-related expenses. So it’s a move worth considering if you don’t need to sign up for Social Security sooner.

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• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Financing a car at a high interest rate can be frustrating, but what’s even worse is being promised a specific rate through the car dealer and then being stuck with a different one.

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It’s called yo-yo financing, a deceptive tactic used by auto dealers that allows you to drive the car off the lot before the financing is fully finalized. You are then informed that the loan fell through and that you must accept less favorable terms to complete the purchase.

You might have regrets about taking out a $15,000 car loan with a 14.89% annual percentage rate (APR). But it looks like your APR is even higher and you need to re-sign the documents?

Should you proceed, or use this opportunity to get out of the loan?

Considering your options

The average user car loan rate was 11.87% in Q1 2025, according to Experian. However, the average for customers with Deep subprime (credit scores 300 to 500) and Subprime (credit scores of 501 to 600) credit was 21.58% and 18.99%, respectively.

Considering you say you have bad credit, the rate you were offered at the start (14.89%) isn’t surprising. However, it doesn’t mean you made a smart financial decision with this purchase. More on that later.

Now it seems the actual rate has come through at 15%, which means the dealership may be engaging in yo-yo financing. Or, it could just be a case of poor communication.

Usually, with yo-yo financing, there’s a substantial difference between the original APR offered and the one a dealer tries to stick you with. Here, the difference here isn’t so tremendous. Also, dealers commonly use yo-yo financing to lure buyers with super low rates. A 14.89% APR isn’t that competitive.

Review the paperwork you signed. It could be that it says the sale is not final and the dealer can change the terms. In this case, you would have to resign the documents with the new APR to keep the car.

You probably also have the right to give back the car instead of paying a 15% APR on your loan.

This could actually be a great opportunity to get out of a bad deal that could hurt you financially. It may be time to give back the car and consider other options, like saving up for a car you can pay in cash for or saving to pay a larger down payment. You don’t want to be stuck making payments for a car that you can’t afford, and a 14.89% rate is quite high.

If you’re committed to keeping the car, you’ll have to decide if it’s worth paying the slightly higher rate. You may be able to refinance later. You can also find alternative financing for the car instead of going through the dealer. If you shop around, you may secure a lower APR.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

How to snag the best rate you can get on an auto loan

A lower APR means lower interest costs and monthly payments. So, always do what you can to secure the lowest rate possible.

One of the best ways to do this is by boosting your credit score. According to Experian, the average used car loan rate for Prime (credit scores of 661 to 780) and Super-prime (credit scores of 781 to 850) buyers was 9.06% and 6.82%, respectively.

“There’s no minimum credit score required to get an auto loan. However, a credit score of 661 or above … will generally improve your chances of getting approved with favorable terms,” says the credit bureau.

To boost your credit score, aim to pay all debts on time and try to keep your credit utilization as low as possible. Credit utilization is the percentage of total available credit that you’re currently using, and is a key credit score factor. Paying down credit card debt can improve your utilization.

It’s also important to check your credit report regularly for mistakes. You can request a free copy every week here.

Also, shop around when you’re taking out an auto loan, and don’t assume your dealership has the best rate to offer.

Financing an auto loan through your dealership may be convenient, but you’re probably better off reaching out to banks and credit unions to see what rates they offer. A good place to start is with a bank or credit union you already have a relationship with.

Choosing a shorter auto loan term can lower your interest costs, assuming you can get the same interest rate or better. You’ll have a higher monthly payment, but you should pay less interest by paying off your car loan more quickly.

Finally, you can also save on interest by taking out a smaller loan, by providing a larger down payment up front, or purchasing a more affordable vehicle.

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Renting a home is not cheap. In fact, Zillow puts the average monthly cost of rent at $2,100 nationally.

Let’s say you’re in your mid-20s and looking to rent a townhome for more space and a sense of independence. The catch? You have to fork over $5,000 in advance for two months’ security and additional fees. That’s a hefty chunk of change.

It’s not uncommon for young adults to live at home with their parents until they have sufficient funds stashed away for rent and utilities. Sometimes, parents will charge their kids “rent” only to set it aside to give back to them once they’re ready to move out.

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But what if your parents went back on that promise and instead deposited your “rent” into one of their 401(k)s? Now, you’re short on the $5,000 you owe for the townhome.

It’s a difficult situation, but it doesn’t mean all is lost.

When family lets you down

It’s not uncommon for young adults to move back into their parents’ house. A recent Thrivent survey found that 46% of parents with children aged 18 to 35 had a child move back home.

It’s also not a bad thing to contribute financially when you’re living with your parents as a young adult. That could mean paying rent, chipping in for utilities or covering food costs. However, problems can arise if someone fails to follow through on a financial arrangement, such as your parents promising to return your rent and not doing so.

You may have a few options if you find yourself in that situation. First, you should know that if your dad is at least 59½ years old, he can access his 401(k) plan without an early withdrawal penalty. Just because the money you paid has landed in that account doesn’t mean it’s off limits.

Next, you can try negotiating with your parents. If you’re short, say, $1,200 on move-in fees, you can ask if they’d at least be willing to return that sum immediately — even if you were promised you’d get more rent back than that. This could allow you to cover your costs and leave their home, which you may especially want to do if you’re feeling hurt about them not keeping their promise.

Another option is to delay moving until you’ve saved more. This might be a good idea in general. A recent Ipsos poll found that 73% of Americans have a negative view of the U.S. economy, and 72% think new economic policies could spur a recession.

It’s a dangerous time not to have savings, because if you lose your job, you might struggle to cover your rent. And if your living costs increase broadly because of tariffs, you might have a hard time paying your bills or risk ending up in debt.

So, if $1,200 is the difference between being able to move out or not, you may want to hold off until you’ve saved that sum plus enough money to cover at least three months of essential bills.

Another option may be to negotiate a lower move-in fee. For example, if you can’t swing a full security deposit, but have great credit, a landlord may be willing to let you put less money up front.

You could also consider moving to a smaller rental for a year and then upsizing once you’ve saved more. A townhome might seem like a comfortable place to live, but you might spend a lot less on rent by moving into a studio or one-bedroom apartment.

That said, if the townhome is large enough, it may be feasible to get a roommate. If that person can split the move-in costs with you, you may be able to get into that home right away. And as a bonus, you’ll have someone to split rent and utilities with on an ongoing basis.

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The cost of financial independence

There are many reasons why so many young adults struggle to leave the nest and end up moving back home. Thrivent found that 32% of young adults moved back home because of a lack of housing affordability, while 30% cited increasing prices on essentials.

The ever-rising initial cost of renting a home can also catch young adults — and renters of all ages — off guard. Take the security deposit, for example. In a 2023 report, Zillow found that 87% of renters paid a security deposit, with the average cost ranging from $500 to $999.

Some landlords charge a security deposit equal to a full month of rent, which can be cost-prohibitive for people with limited funds.

There’s also the issue of rent itself being unaffordable. Recent data from the Harvard Joint Center for Housing Studies found that 22.4 million renters spend more than 30% of their income on rent. A 2023 Bloomberg survey also found that nearly half of Americans ages 18 to 29 were living at home due to being unable to afford rent, the same amount as in the 1940s.

Part of the problem is that landlords are less likely to negotiate rent when you’re first moving in. Tenants tend to have more negotiating power when their leases are up, because there’s a cost to finding a replacement tenant, and because landlords are more inclined to bend for tenants with a strong history of paying rent on time.

When you’re a new tenant, a landlord is taking a chance, so you may not have the same wiggle room to negotiate. But, that doesn’t mean you can’t or shouldn’t try if it spells the difference between being able to afford a rental or not.

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

As of June 23, the average gas price in California for regular fuel was $4.66 per gallon, according to AAA, making it the most expensive place to fuel up in the country.

However, Golden State drivers could be in for even more pain in the near future when it comes to paying for fuel.

That’s because some experts believe gas prices in the state could rise significantly following the impending wind-down of two major refineries if lawmakers don’t intervene soon.

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Why gas prices could spike even more

In October, Phillips 66 announced plans to shut down its Los Angeles-area refinery in late 2025. Valero, meanwhile, said in April it intends to “idle, restructure, or cease refining operations” at its Benicia, California, refinery by April 2026.

Phillips 66 says its decision was due to uncertainty about the refinery’s “long-term sustainability.” Valero cited “the uncertainties that remain with respect to current or contemplated legal, political or regulatory developments that are adverse to or restrict refining and marketing operations” as a diver of its decision. The company was also hit with a record $82 million fine by the Bay Area Air Quality Management District last year after regulators uncovered a long history of unreported toxic emissions.

On May 28, Petroleum Market Oversight Director Tai Milder, California Energy Commission Vice Chairman Siva Gunda and California Air Resources Board Chair Liane Randolph testified before state lawmakers. The regulators were put on the hot seat, as lawmakers wondered if they were plunging California into a gas crisis.

“We have a crisis on our hands that may have been self-created by the actions that have been taken, perhaps by the state, by regulators,” assemblymember David Alvarez said during the meeting.

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According to CBS News, closures of these refineries could lead to a 20% reduction in California’s gas supply. Experts say this could have a major impact at the pumps.

“I think if we are not prepared for the closure of these two refineries, we could see a very abrupt increase in prices,” Severin Borenstein, UC Berkeley professor and director of the Energy Institute at Haas, told the broadcaster. “That is a real threat right now. California needs to get out ahead of it. This is a fire drill, this is not a long-term planning problem.”

Lawmakers urged to take action

A report by USC professor Michael Mische warned that a combination of the refineries shutting down and certain legislative actions could see California gas prices could rise to an estimated average of $7.348 to $8.435 by the end of 2026.

Tahe report stated that California retail gas prices are routinely 40% to 50% higher than the national average. State regulatory fees and taxes add a significant amount to the price of gas per gallon. Even without the closures of the two refineries, the report estimates the price could potentially increase by $1.18 per gallon.

Similar to the sentiments of Alvarez, the report calls the state’s gas crisis largely "self-created." Despite more cars being on the road, the number of refineries in the state has dropped over the last 30 to 50 years. Meanwhile, the report says regulatory costs affecting refiners, distributors and local operators have had a compounding effect on retail prices.

The report included a number of suggestions, such as incentivizing Phillips 66 and Valero to remain in the state and relaxing regulations. For example, Executive Order N79-20, which is set to take effect in 2035, bans the sale of new gas-powered vehicles. Bill Abx2-1 allows regulators in California to set minimum petroleum inventory levels for refineries located in the state. And so on.

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

The U.S. fertility rate may not be as weak as in other developed nations around the world, but nevertheless in 2023 it reached a historic low, according to Pew Research Center data.

It figures: the economic case for having kids has maybe never been harder to muster, as inflation — housing and child-care costs, especially — has pushed parents to their financial limits.

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But not having children carries its own risks. The Pew data finds that 26% of child-free Americans aged 50 and up frequently worry about who will care for them as they age. And 19% worry extremely about being lonely.

If you’re nervous about aging alone, here are some steps to take now.

1. Ramp up your savings

Being child-free has a major benefit — you don’t have to take on the expense of raising a child. The USDA puts the cost of raising a child from birth through age 17 at $233,610 for children born in 2015. Given recent inflation trends, it’s more than fair to say that that figure has grown exponentially since it was last calculated. The money you aren’t spending on child-related costs is money you can save and invest in a retirement account.

And remember, even older parents continue to provide financial support to their children. A 2024 Savings.com survey found that 47% of parents with grown children provide them with some form of financial support. And almost shockingly, the average amount comes to $1,384 per month.

If you’re 50 or older, you’re eligible to make catch-up contributions in an IRA or 401(k). Not having to worry about helping grown children pay their bills could make those catch-ups far more feasible.

2. Establish a social network

Aging without a support system isn’t easy. But one thing that may help is surrounding yourself with people of a similar age who can provide you with the company you need.

Put some focus into creating a network, whether through volunteer work, writing clubs or community events. You’ll want to be well established with relationships and a social routine long before you retire.

If you’re looking for convenience as well as community, you may consider a 55-and-over community. Many of these facilities are loaded with amenities that include fitness centers, tennis courts, swimming pools, and more that are instrumental to helping retirees keep busy.

Of course, one drawback to these communities is the cost, which can range from a more reasonable $1,500 a month all the way up to $4,000, according to AssistedLiving.org. But it could pay to prioritize this expense in your budget if you know you’ll be entering retirement without grown children to lean on.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

3. Reduce the hassle of home maintenance

Aging alone could mean facing mobility and health challenges. One big source of stress for seniors is maintaining their homes. You may not have the physical ability to mow the lawn, remove snow, and do other types of upkeep once you’re well into retirement. So to that end, it pays to eliminate as much home maintenance as possible.

Again, a 55-and-over community could be an attractive option to avoid this expense. Often, these communities feature condo-style living so that you’re only responsible for maintaining the interior of your home, while your monthly HOA fee goes toward exterior maintenance.

If one of these communities isn’t what you want, consider downsizing out of a larger home and into a smaller space that requires less work. It could also be a good idea to buy a one-story home in case climbing stairs becomes an issue down the line.

4. Buy a long-term care insurance policy

One of the scariest things about aging alone is reaching the point when you simply can’t perform daily tasks without assistance. In the absence of having grown children to step in and help, it’s important to be prepared for long-term care. One way to do that is by putting insurance in place to help defray the often-astronomical cost.

Genworth reports that the average annual cost of an assisted living facility is $64,200, while a home health aide costs $75,504 per year. A semi-private nursing home room, meanwhile, has an average yearly price tag of $104,025.

Meanwhile, the median retirement savings account balance among Americans 65 to 74 is $200,000, according to the Federal Reserve. Costs like these have the potential to bankrupt a retiree with just the typical savings, so it’s important to have insurance as a backup plan.

The ideal time to apply for long-term care coverage is in your mid-50s. This makes it more likely that you’ll qualify for a policy with premiums you can afford. It’s possible to secure coverage beyond your mid-50s, but the older you get, the harder and more expensive it might become.

In addition to these specific tips, consider sitting down with a financial adviser and talking through your retirement concerns. They may be able to make the process of aging alone easier from a money-related perspective.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs

Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.