If last year’s winter holiday travel season felt costly or chaotic, this year’s might seem even more so.

That’s because half of Americans (50%) plan to spend money on flights or hotel stays this holiday season, according to a new NerdWallet survey conducted online by The Harris Poll. The survey was based on responses from 2,057 adults collected Sept. 5-7, 2023.

That 50% figure is higher than last year when 44% of Americans said they’d planned to spend money on travel.

When will crowds be the biggest? Probably the Sunday after Thanksgiving. That was the busiest travel day in 2019, 2021 and 2022, according to a NerdWallet analysis of Transportation Security Administration data showing the number of passengers screened at TSA checkpoints over the past four years. Travelers can expect 2023’s winter holiday travel season to follow suit.

The busiest travel days this holiday season

While half of Americans will travel for at least one of the winter holidays (and some will travel for more than one), some holidays prompt more activity than others.

According to NerdWallet’s survey, which defines “travel” as staying away from home for at least one night, regardless of whether it includes flights or hotel stays as opposed to driving or staying overnight with family or friends:

• 40% of Americans plan to travel for the December holidays (Christmas, Hanukkah or Kwanzaa).
• 29% plan to travel for Thanksgiving.
• 19% plan to travel for New Year’s Eve or New Year’s Day.

If more Americans say they intend to travel for the December holidays compared with Thanksgiving, why does the latter tend to set the travel records? It largely comes down to timing.

Thanksgiving takes place on the fourth Thursday in November every year. Travelers tend to have the same itinerary, departing the Wednesday before the holiday and returning the Sunday after, creating the two busiest days to fly around Thanksgiving.

With Christmas, trend lines are more opaque because the holiday is on a different day of the week every year. Christmas in 2023 falls on a Monday. So, while Tuesdays and Wednesdays tend to be the best days to fly (meaning lower costs and smaller crowds), this year Tuesday, Dec. 26, might be unusually busy.

In fact, Dec. 26 may be the most expensive day to return in the week after Christmas this year, according to the 2023 Holiday Travel Outlook from the travel booking site Hopper. As far as busy travel days ahead of the holiday, expect the preceding Friday (Dec. 22 this year) to be among the worst days to fly ahead of Christmas.

What about people who aren’t traveling?

While about 50% of Americans plan to spend money on flights or hotel stays this holiday season, 39% say they don’t plan to spend money on holiday travel and 11% are undecided, according to NerdWallet’s survey.

For some, the decision not to travel is pretty straightforward. For example, 39% of those not traveling say it’s because their friends and family are local, and 10% are hosting others for the holidays.

Of those not spending money on flights or hotel stays this holiday season, 24% say it’s because they can’t afford it.

Planning to travel at the same time as everyone else

Traveling on peak days alongside everyone else brings more challenges than just longer airport security lines or the increased likelihood of sitting in the middle seat.

With that in mind, budget more time to get to your destination. Boarding may take longer, and airport lounges might be busier, if not full. If the airline cancels your flight, expect to compete with more people to get on the next available flight.

Seek ways to bypass the lines. For example, holding TSA PreCheck can help get you in expedited security lines (and you might even be able to get TSA PreCheck for free). Earning airline elite status can mean access to VIP lanes for things like checking baggage, while hotel elite status might get you into expedited check-in lanes.

And if that all sounds like too much, consider opting out of holiday travel entirely. Those 39% of people who don’t plan to spend money on flights and hotel stays this holiday season might be onto something.

Erin El Issa contributed to this report.

The article Get Ready for an Even Busier Holiday Travel Season in 2023 originally appeared on NerdWallet.

Black Friday is Nov. 24 this year. Retailers thrive on tantalizing shoppers ahead of the post-Thanksgiving event, keeping them guessing about how exactly the experience will unfold. But economic conditions, past sales and other factors can provide clues about what’s to come.

Here’s what marketing, retail and supply chain experts expect for Black Friday 2023.

Shoppers and retailers may scale back

“A lot of macroeconomic indicators are pointing to a big slowdown in spending,” says Jeff Galak, associate professor of marketing at Carnegie Mellon University’s Tepper School of Business. Signs include record-high consumer credit card debt — balances reached over $1 trillion in the second quarter of 2023, according to the Federal Reserve Bank of New York — a reduced personal savings rate and the increased cost of goods due to inflation, Galak says.

Consumers are feeling the pinch. Some 2023 shoppers say they plan to purchase gifts for fewer people this holiday season (31%) or spend less on gifts per person (30%) compared with past years, according to the 2023 Holiday Shopping Report from NerdWallet.

Retailers are facing pressures too, which likely means smaller markdowns for Black Friday, Galak says. “Their supply chains are also pushing prices higher, so it’s not like there’s an infinite amount that they can discount whatever the latest television is. There’s still a floor, and that floor is going up.”

Sales will persist

While Black Friday prices probably won’t reach all-time lows, shoppers will find deals galore. In fact, many retailers have been in holiday sales mode since the beginning of October. Among the early entries: Walmart Deals Holiday Kickoff, which ran from Oct. 9 through 12, and Amazon’s Prime Big Deal Days on Oct. 10 and 11.

These events preview the products and discounts shoppers might find during Black Friday sales. For example, Amazon and Walmart discounted Apple Airpods Pro (2nd generation) from $249 to $189, the lowest price so far this year.

Retailers bring out some of their best sales when they know customers are most prone to shop. Black Friday remained the most popular shopping day of Thanksgiving weekend in 2022, notes Katherine Cullen, vice president of industry and consumer insights at the National Retail Federation. “It does seem that even with the early start to the shopping season, consumers do still very much look to Thanksgiving weekend for a sense of tradition,” she says.

Expect additional chances to save money as holiday deals continue past November. But if you spot a price that suits your budget, it may be worth buying early.

Deliveries could face interruptions

Lingering effects from a weekslong autoworkers strike could create shipping delays for holiday shoppers and retailers, as could a federal government shutdown.

Logistical problems stemming from the United Auto Workers strike could cause delivery issues if trucks can’t get parts needed for repairs, says Rob Handfield, a professor of supply chain management at North Carolina State University’s Poole College of Management.

The U.S. government narrowly escaped a shutdown in September, but funding lasts only through Nov. 17 — one week before Black Friday.

“We rely on a lot of government services to make supply chains work: Customs and Border [Protection], a lot of the regulatory agencies, the FAA,” Handfield says. “If there’s a government shutdown and some of those agencies are impacted, it’s going to impact import/exports, it could impact our rail system, it could impact our transportation system.”

Still, experts don’t expect the same level of supply chain disruptions as in the past couple of years.

Retailers have taken steps to diversify their supply chains and work around external shocks, Cullen says. “Oftentimes, they’ve moved up the lead times for holiday inventory for key events. Also, a longer shopping season gives more runway for consumers to come back and find items that may have been in short stock early in the season.”

Cullen adds that retailers have been increasingly transparent about what’s in stock, where it’s available and how long deliveries might take, which can help shoppers decide what to buy and when.

Shoppers have more time to make returns

Black Friday shoppers may get accommodations when it comes to making returns.

Many major retailers relax return policies or extend return windows around the holidays. Walmart, which normally has a 90-day return limit, will allow most purchases made from Oct. 1, 2023, to Dec. 31, 2023, to be returned through Jan. 31, 2024. Target won’t start its 30-day return clock until Dec. 26 for electronics and entertainment items purchased from Oct. 1 to Dec. 24.

Some consumers can even get a refund without leaving their cars or their homes.

Target rolled out free drive-up returns in time for holiday shopping. The service lets shoppers initiate a return in the app and complete the transaction in the store’s parking lot.

Uber also recently launched a “Return a Package” feature allowing people to send up to five packages via courier to a local post office, UPS or FedEx location for a $5 maximum fee.

Read return policy and service details before you shop Black Friday sales to better understand your options.

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

The article Black Friday Shopping Could Look Different This Year, Experts Say originally appeared on NerdWallet.

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

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

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

Buy: TVs and big-ticket tech

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

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

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

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

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

Buy: Small kitchen appliances

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

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

Skip: Sporting goods

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

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

Buy: Winter apparel

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

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

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

Skip (maybe): Tools and home improvement items

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

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

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

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

Holiday shopping tips

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

Read up before you buy now, pay later

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

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

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

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

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

Check your feelings at checkout

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

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

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

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

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

Four days are left until the government faces another shutdown.

A government shutdown would stop or reduce operations for national parks, benefits verification, food inspections and more. It would also send millions of federal workers home without pay for the duration.

All that is on the line unless Congress passes crucial budget appropriations or agrees on another funding extension. The latter may be more likely with this bunch.

What you need to know

• Congress must fund 12 key appropriation bills in order to fund the government for its new fiscal year, which began Oct. 1.
• A last-minute stopgap was passed Sept. 30 and extended government funding through Nov. 17.
• Come Nov. 18, the government shuts down.
• The looming shutdown is a test for newly elected House Speaker Mike Johnson, who said at a press conference Tuesday that the House GOP conference “had a very refreshing, constructive, family conversation” on the options on the table to prevent a shutdown. He added that they would “be revealing what our plan is in short order.”
• Senate Democrats are reportedly working on their own funding measure. Last week, the Senate passed a package of three government funding bills for the 2024 fiscal year.

Why you should care

• Shutdowns are disruptive for the federal government at large. For consumers, a government shutdown could result in various problems and inconveniences.
• Unless you work for the federal government, a government shutdown might not have an immediate impact on you.

What happens during a shutdown

• Nonessential services like national parks, customer service for the IRS and Federal Student Aid assistance will be suspended.
• Essential services like air traffic control, national security, law enforcement, and power grid maintenance continue to operate.
• Some essential services like benefit verifications for Social Security, Medicare and Medicaid; food and environmental inspections; scientific research; and the Centers for Disease Control and Prevention may have reduced operations.
• If you have travel plans, a shutdown could get in your way.
• It could hamper your homebuying plans if you are trying to get a reverse mortgage or Title I loan insured by the Federal Housing Administration or a loan from the U.S. Department of Agriculture.
• The brunt of the disruption would fall on furloughed government workers. But all federal workers go without pay during a shutdown even if they’re not furloughed. Federal workers are paid retroactively once funding is restored.

The basics

• There have been 21 government shutdowns since 1976, and most ended in under a week,  according to the Bipartisan Policy Center.
• When Congress passes some of the required appropriations, but not all of them, it results in a partial shutdown.
•  The most recent shutdown, which was partial, lasted 34 days beginning in December 2018.

What happens next

• House Republicans say they’re aiming to bring a bill to the floor next week. It would likely be a continuing resolution.
• Senate Democrats are working on their own stopgap bill.
• However, lawmakers will balk at any continuing resolution that goes beyond Dec. 31, thanks to the Fiscal Responsibility Act that was passed in spring. It includes a provision that says if a continuing resolution is in effect come Jan. 1, then the spending limit revises on its own — and that automatic revision includes a significant cut to defense, which would be at odds with House Republicans’ efforts to increase defense spending.

More From NerdWallet

The article Government Shutdown Looms Yet Again: What You Need to Know originally appeared on NerdWallet.

Entering the holiday season with high-interest debt or financial struggles can put you at risk for a debt hangover that could linger for years.

It’s a crossroads that many will unfortunately encounter this holiday season. Credit card balances rose to over $1 trillion in the second quarter of 2023, according to a report by the Federal Reserve Bank of New York. The average rate for credit cards assessed interest as of August 2023 was 22.77%, according to data by the Federal Reserve. Compared with previous years, that rate is alarmingly high.

With interest rates sky-high, this is one of the worst times to charge expenses to credit cards that you can’t pay off quickly. Before you shop for the holidays, consider these ways to help you get clear on your goals and protect your finances.

1. Find a way to lower high-interest debt

If you’re already carrying debt, consider ways to save money on interest. Depending on your credit, some options may include:

• A 0% introductory APR balance transfer credit card: This card lets you move debt onto it from a different account to get the lower interest rate. The ideal card has no annual fee and a balance transfer fee of 3% or lower. Compare the cost of the fee with the projected interest payments on your current card to determine if it’s worth paying.
• A personal loan: For multiple debt balances, a personal loan that consolidates debts into a single low-interest fixed payment can simplify your finances.
• A debt management plan: If you’re struggling to keep up with bills, a counselor at an accredited nonprofit credit counseling agency can determine your eligibility for a debt management plan that consolidates balances into a single low-interest fixed payment, for a fee. A lower interest rate is possible because these organizations have relationships with creditors, says Madison Block, a product marketing manager at American Consumer Credit Counseling.

Also explore your budget for opportunities to save, removing unnecessary expenses and swapping others for less costly alternatives. Then put any savings toward your debt, and contribute enough money each month to pay it down by the desired deadline. Commit to prioritizing your debt over the holiday season and tailor your purchases to facilitate that goal.

2. Create a holiday list

Building holiday spending into your year-round budget is a good way to prepare for seasonal expenses. But even if you know how much you have to spend, holiday shopping can overstuff your budget quickly if you’re not careful. One simple but powerful tool can help. Make a list and use the amount you have available to determine how much to spend on gifts, decorations, food, travel and any other holiday purchases.

Every Christmas, Lizbet Barajas, a Texas resident, sticks to a holiday list of expenses to stay on track with her goal to pay down student loan debt. With her husband, she budgets for gifts year-round for two kids, ages 3 and 6, and both sides of their family.

“Having that list early on makes it easier to know exactly what I’m buying them without having to do last-minute shopping, which then causes you to overspend,” says Barajas, a content creator of the YouTube channel Lizbet Talks Money.

Robyn Goldfarb, a Florida resident and blogger at A Dime Saved, also budgets year-round for Hanukkah to avoid taking on debt. With her husband, she budgets $50 per gift for their three kids, ages 2 to 10, and she only gives gifts on one of the eight nights of Hanukkah.

“One night we’ll do donuts, one night we’ll do cookies, so there’s something exciting happening every night, but it’s not necessarily a gift or something expensive,” she says.

3. Explore money-saving alternatives

Consider which expenses are negotiable and which aren’t. If necessary, stretch your dollars by changing expectations with friends and family this year. With prices still high due to inflation, they might welcome a more budget-friendly option, like a potluck, a secret gift exchange, gifts for kids only or a price limit for gifts.

Supplementing your income over the holiday season can also help you avoid debt for those must-have purchases.

“One thing people can do is potentially take on a seasonal part-time job or a side hustle,” Block says. “If you have some unused items or old furniture or things around your house that you aren’t even using, selling that on Facebook Marketplace or Craigslist could be potentially a good way to get a little bit of extra cash for the holiday season.”

Creativity can also lead to savings. It’s how Goldfarb saves on decorations.

“I’ll have my kids make things and I save them from year to year,” Goldfarb says. “There are so many ideas online.”

4. Set guardrails to stick to your budget

Switching your payment method temporarily to debit or cash can protect finances from debt. In previous holiday seasons, Barajas used a version of the cash envelope system to stay on track. By having an envelope with a fixed amount of money for every categorized holiday expense, like gifts, meals and travel, you can prevent overspending.

“It’s more visual,” Barajas says.

5. Look for deals

Scavenge for the best deals. Using browser extensions or apps, like Honey, Flipp or CouponCabin, may help you find coupons or potential savings on different items. Some large retailers such as Amazon, Walmart and Best Buy also have online outlets and open-box deals that may offer items at lower costs. Compare prices to know if it’s a good deal.

The article 5 Moves to Prevent More Debt This Holiday Season originally appeared on NerdWallet.

Most weeks of the year, Friday is the busiest day for air travel, and Tuesday is the least busy day. During the holidays, though, that doesn’t necessarily hold true.

In most years, the Sunday after Thanksgiving is the busiest travel day at U.S. airports, according to the Transportation Security Administration, which tracks the number of passengers screened daily. The two days after Christmas also see heavy travel. And since Christmas falls on a Monday this year, that might mean an abnormally busy Tuesday and Wednesday of that week.

To avoid crowds and save money, consider skipping the busy days and book your flights on one of the slower ones. Here’s a breakdown of the best and worst days to fly during the winter holidays, and how you can strategize to avoid crowds and save money.

The busiest days to fly around Thanksgiving

The Sunday after Thanksgiving is brutal for airport crowds. Last year, about 83% more people flew on the Sunday after Thanksgiving than on Thanksgiving Day, according to TSA data, making it the busiest travel day of 2022.

That same Sunday was also the year’s single busiest airport travel day in both 2019 and 2021. In 2020, the busiest days of the year for air travel were largely concentrated in January and February, before the widespread impact of COVID-19, which would reduce holiday travel later in the year.

Here’s a look at the three busiest days to fly in the seven calendar dates before and after Thanksgiving over the past four years, based on TSA checkpoint data:

And here are the three least busy days to fly in that period:

Assuming past trends continue in 2023, expect Sunday, Nov. 26, to be the busiest travel day around Thanksgiving, followed by Wednesday, Nov. 22. Even if you fly out one day ahead of the biggest crowds, Saturday, Nov. 25, will also likely be busy.

And this year, crowds will likely be bigger based on the fact that past 2023 holidays have already set air travel records. For example, 2023’s Fourth of July weekend set records for U.S. air travel. More than 2.884 million people passed through TSA checkpoints on the Friday before July 4, according to TSA checkpoint data. That topped the previous record, which was on the Sunday after Thanksgiving 2019, when a recorded 2.882 million people passed through TSA checkpoints.

The busiest days to fly around Christmas

Christmas airport crowds can be trickier to predict than Thanksgiving crowds given that the holiday falls on a different day of the week each year and air travel patterns are often dictated by the workweek. This year, Christmas falls on a Monday.

But just as the Sunday after Thanksgiving tends to draw huge crowds, the days just after Christmas are wildly popular. And much like how few people travel on Thanksgiving Day itself, relatively few people travel on Christmas Day or New Year’s Day.

Here’s a look at the three busiest days to fly in the seven calendar dates before and after Christmas over the past four years, based on TSA checkpoint data:

And here are the three least busy days to fly in that period:

This year, you might expect Friday, Dec. 22, to be particularly busy. Friday is typically the busiest travel day in any given week, and — especially during Christmas week — many holiday travelers may leave on that day.

According to Chase Travel, Friday, Dec. 22, is one of the top three busiest days across all flights booked in either December 2023 or January 2024 (the other two busiest days are Saturday, Dec. 23, and Saturday, Dec. 30). Similarly, booking site Hopper anticipates that day having the highest fare for the Christmas season.

This holiday travel season may see some relief, though. Hanukkah, which begins on the 25th of Kislev in the Hebrew calendar, can sometimes align closely with Christmas. The eight-day celebration ran from Dec. 18-26 in 2022, but this year will commence on Dec. 15 — likely before the Christmas crowds start.

Another consideration for travel is that the weeklong celebration of Kwanzaa runs from Dec. 26 through Jan. 1.

How to choose less crowded (and cheaper) travel days

The holiday travel season is always expensive, but there is some decrease from last year’s prices. Airfares for Christmas trips are averaging $400 according to Hopper data. That’s down 12%, or about $52 per ticket, from last year. The bad news is that it’s still 29% higher than holiday airfares were in 2019.

Travel on the holiday: Traveling on the holiday is often the best way to avoid crowds and save money. Last year, 23.4% more people flew on the day after Christmas versus Christmas Day, which fell on a Sunday.

And that demand has a strong effect on prices. According to Hopper, domestic flights on Christmas Day average about 26% less than peak prices.

Book morning flights: If you are traveling on the holiday, catch the first flight out for the day and you might arrive in time for evening festivities. Taking early flights is also considered good practice to reduce your odds of a flight delay. In the first half of 2023, 7.8% of flights were delayed because an aircraft arrived late, according to Bureau of Transportation Statistics data.

Stay longer: If you can take the days off or work remotely, then it can make sense to fly as long before or after a holiday as possible.

For Thanksgiving, Hopper recommends flying the Monday of Thanksgiving week and returning any weekday the following week. The Sunday after Thanksgiving is historically the busiest day to fly, so extending your trip by just one day can save you money. According to Hopper, airfares average 40% less on the Monday after Thanksgiving versus the Sunday after.

For Christmas, Hopper recommends departing the Monday or Tuesday before Christmas weekend and returning midweek following the holiday.

Skip holiday travel completely: If you don’t mind celebrating in an unconventional way, consider participating in something like an un-holiday, where you shift the celebration by a couple of days or weeks.

The article The Busiest Days to Fly During the Winter Holidays originally appeared on NerdWallet.

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

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

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

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

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

Is flying truly worse?

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

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

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

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

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

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

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

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

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

What type of travel insurance should you get?

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

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

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

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

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

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

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

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

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

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

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

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

1. Paying more for the same coverage

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

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

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

2. Paying more for less coverage

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

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

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

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

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

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

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

3. Paying too much for add-ons

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Cash-outs drain future retirement security

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

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

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

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

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

Necessity doesn’t drive most retirement plan cash-outs

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

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

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

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

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

How employers can counteract the temptation to cash out

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

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

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

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

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

Intuit Inc. announced this week that it will shut down Mint on Jan. 1, 2024. The company’s decision to discontinue the popular budgeting app could leave millions of users scrambling to find a replacement.

Here’s what the news means for consumers and what to consider when choosing a new budgeting service.

What is Mint?

Mint, acquired by Intuit in 2009, is a free personal finance app. It has long been one of the most widely used and highly rated budget apps. Mint links to nearly all types of users’ financial accounts, such as credit cards, investments and loans.

Mint’s loyal following has gravitated toward its comprehensive features, including the ability to review spending, track net worth and personalize goals and budgeting categories.

What’s happening to Mint?

In its announcement on Tuesday, Intuit said the company is “reimagining Mint” as a part of Credit Karma, also owned by Intuit. Users will no longer have access to their Mint accounts on Jan. 1, 2024, or sooner if they choose to migrate to the Credit Karma app before that date.

While several Mint features will live on in the Credit Karma app (such as spending and net worth tracking), setting monthly budgets and customized categories won’t make the cut. It’s unclear whether these capabilities might move over eventually.

How you can prepare for the end of Mint

The good news is that Mint isn’t shutting down overnight. The company is giving Mint users “ample time” to plan for the change, an Intuit Credit Karma spokesperson said in a statement.

Those who rely on the app will have two months to gather their financial information from Mint and search for an alternative budgeting tool. Still, this window may not feel long enough for some users. Here are steps you can take to make the change less painful.

First, take stock of any stored information you don’t want to lose. You can download your existing Mint transaction data as an Excel spreadsheet by following the instructions on Mint’s help center page. Taking screenshots of helpful charts or insights is another option.

Then, make a list of the Mint features you used most often or that were most helpful to you. Refer to this list when exploring what replacement apps have to offer.

What to look for in a new budgeting app

There are plenty of other budget apps out there that can help fill the void once Mint shuts down. Many personal finance websites, including NerdWallet, offer free money management tools.

PocketGuard is a free service that highlights your spending and net worth and allows you to budget for goals. YNAB is a popular app that also lets users create customized plans for their money, but it has a subscription fee.

Mint users don’t necessarily have to start from scratch. Some apps, like Monarch and YNAB, allow new users to manually import data files from their banks or other personal finance apps. Like Mint, there are many other apps that automatically sync with users’ financial accounts. Some may even pull multiple years of your transaction history, which can be ideal if you don’t get a chance to save your Mint data before it vanishes.

Before committing to a paid budget service, take advantage of free trial periods — if offered — to learn whether it’s worth the money. And before signing up for any budgeting service, read reviews in app stores and on trusted financial websites.

An app’s community and customer service (or lack thereof) may be worth paying attention to as well. Mint’s large user audience and customer support made it easier for many to learn and troubleshoot.

The article Mint App Closing: What It Means, How to Pick a New Budget Service originally appeared on NerdWallet.