Ask Liz Weston

Get smart with your money

Liz Weston

Wednesday’s need-to-know money news

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Today’s top story: How to pay for college when you haven’t saved enough. Also in the news: How credit cards are fueling bigger gas savings, how to see the world in your 20s without racking up debt, and what rising mortgage rates will cost you if you’re looking to buy a home.

How to Pay for College When You Haven’t Saved Enough
All hope is not lost.

How Credit Cards Are Fueling Bigger Gas Savings
Savings at the pump.

How to See the World in Your 20s Without Racking Up Debt
The trip of a lifetime without a lifetime of debt.

Buying a home? Here’s what rising mortgage rates will cost you
State-by-state findings.

Tuesday’s need-to-know money news

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Today’s top story: 4 ways to save on housing costs in your 20s. Also in the news: Billions in free college money went unclaimed this year, the complications of putting plastic surgery on your plastic, and how being lazy can actually help you save money.

4 Ways to Save on Housing Costs in Your 20s
Skipping avocado toast won’t cut it.

$2.6B in Free College Money Went Unclaimed by 2018 Grads
Fill out the FAFSA.

Putting Cosmetic Surgery on Your Plastic? Avoid These Complications
Sizing up the costs.

How being lazy can actually help you save money
Yes, you read that correcly.

Should you pay off mortgage before you retire?

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Most people would be better off not having mortgages in retirement. Relatively few will get any tax benefit from this debt, and the payments can get more difficult to manage on fixed incomes.

But retiring a mortgage before you retire isn’t always possible. Financial planners recommend creating a Plan B to ensure you don’t wind up house rich and cash poor.

In my latest for the Associated Press, why a mortgage-free retirement is usually best.

Monday’s need-to-know money news

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Today’s top story: How to see the world in your 20s without racking up debt. Also in the news: How a single mom masterminds $700K swing from debt to savings, 6 places to shop on Black Friday, and how to find out what your Social Security check will be in 2019.

How to See the World in Your 20s Without Racking Up Debt
Travel tips for the budget conscious.

Single Mom Masterminds $700K Swing From Debt to Savings
Learning from the experts.

6 Places to Shop on Black Friday — Big-Boxes and Beyond
How to shop strategically.

Here’s how to find out what your Social Security check will be in 2019
There’s an increase coming.

Q&A: A reader’s college funding rules

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Dear Liz: I’d like to share with other parents how my husband and I paid for college for our two daughters. We had three rules. 1. If an out-of-state or private college was chosen, then they would be required to pay us back the difference compared to an in-state public school. They both did opt for that and both paid us back every cent. 2. We would only pay for four years and not one more day. Get in, get out. Go to summer school and work jobs. 3. They would receive a monthly allowance of $100 only. Both daughters got a fabulous education, are grateful and felt they had invested in their future well. So did we and we are very proud of them.

Answer: As well you should be! Obviously, many parents can’t afford to be nearly as generous with their kids, but those who can be should think about putting limits on their generosity to make sure their progeny are motivated to get the most out of their education. One caveat: Getting a degree in four years has become increasingly difficult at many public colleges because of budget cuts. You don’t say when your daughters graduated, but today’s parents may need to keep that in mind when figuring out how much to contribute.

Q&A: Medicare Part B allows an eight-month grace period

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Dear Liz: I have a question after reading your column about avoiding costly Medicare mistakes. My husband and I have both reached 65 this past year. We both signed up for Medicare Part A hospital coverage, which is free. I retired two years ago, but am covered by my husband’s employer’s health insurance. I’m now confused about whether I should have signed up for Medicare Part B, which covers doctors visits but requires monthly premiums. His employer explained to him that he would avoid penalties if he signed up for Part B within eight months of his retirement, but no one has mentioned his wife.

Answer: You’re covered under the same rules. As long as your spouse is still working and you’re covered by that employer’s health insurance, you don’t have to sign up for Medicare Part B. But, as your husband’s employer noted, when that employment ends you both should enroll in Part B within eight months to avoid future penalties.