Financial decision-making Archives

The hidden cost of cash: Your money has a job

In my book Making Big Money Decisions, I explain how understanding opportunity cost can help you make better decisions when you’re considering a major purchase. But opportunity cost isn’t just about buying a car, a home, or other big-ticket items.

It applies to your everyday money decisions, too.

You may think your money is safe because it’s sitting in your checking account, Venmo balance, or waiting for you to pay your taxes. But there’s a hidden cost to letting money sit idle: opportunity cost.

As a refresher, opportunity cost is the value of the next-best alternative you give up when you make a choice.

Keep reading to learn where these opportunity costs may be hiding in your accounts.

An Advanced Placement (AP) course parents should know about

What if one of your child’s AP courses could help prepare them for one of the most important subjects they’ll face after high school—managing their money?

Starting in the 2026–27 school year, the College Board is introducing AP Business with Personal Finance, a new college-level course that combines business fundamentals with practical personal finance.

For parents, this is worth paying attention to.

Where should your money live?

A common question I hear from young adults is, “Which investment accounts should I be using?” Often, the question focuses on choosing between a company 401(k) and a Roth IRA.

That’s an important decision, but it’s better answered in the context of your overall saving and investing strategy. Different accounts serve different purposes, and the goal is to give every dollar a job and put it in the right place.

To learn more about your account options and how to decide where to put your next dollar, please keep reading.

Why your 20s are worth more than you think

Most people think building a multi-million dollar investment portfolio requires earning a huge salary or making risky investments. In reality, the most powerful tool isn’t a higher income—it’s time.

The hosts of the Money Guy Show popularized a simple concept called the Wealth Multiplier. It estimates how much each dollar you invest today could be worth by the time you reach retirement. The younger you are, the more years your money has to compound, allowing your investments to do most of the heavy lifting.

The lesson is simple: every dollar invested in your 20s can be worth several times more than a dollar invested in your 40s.

The hidden cost of living: A young adult’s guide to inflation

If your streaming service raised its price by 3% every year, you’d probably notice. If your rent rose 3%, you’d definitely notice. But when almost everything gets a little more expensive each year, many people don’t notice until they wonder:

“Why does my paycheck feel bigger, but my money feels smaller?”

That’s inflation—and understanding it is one of the most important financial skills young adults can develop.

Most young adults spend time tracking their bank account balances, investment returns, and credit scores. Yet many overlook inflation – one of the most important financial metrics affecting every dollar they earn, save, and invest.

Ignoring inflation is like driving a car while covering up the speedometer. You might still get where you’re going, but you’re missing information that could prevent expensive mistakes.

If you’re interested in better understanding inflation, including why and how to track it for planning purposes, keep reading.

Why more young professionals are choosing HSAs

After my post on the rising cost of healthcare, a few readers reached out asking for additional guidance on how to choose the right health insurance plan.

Choosing a health insurance plan can feel overwhelming—especially when you’re staring at unfamiliar terms like deductibles, copays, premiums, PPOs, and Health Savings Accounts (HSAs). Many young adults simply pick the plan with the lowest deductible or the lowest monthly premium without fully understanding how that decision could impact their finances for years to come.

The reality is that your health insurance choice is more than a healthcare decision—it’s also one of the first major financial decisions you’ll make as an adult. Selecting the right plan could save you hundreds or even thousands of dollars each year while helping you build long-term financial security.

In particular, Health Savings Accounts (HSAs) have become one of the most powerful—and often misunderstood—tools available to young professionals. When paired with the right health plan, an HSA can help you reduce taxes, save for future medical expenses, and even build wealth over time.

In this post, you’ll learn what an HSA is, who qualifies for one, how it compares to traditional health insurance plans, and how to determine whether an HSA could save you money while helping you build long-term financial security.

How to manage escalating HOA fees

The cost of living crisis in the U.S. isn’t just about increasing utilities and grocery bills — it’s also about growing “mandatory” expenses that Americans can’t directly control. Rising Homeowner Association (HOA) fees are a prime example.

With average condo and HOA fees increasing 14% last year, what was once a predictable, modest expense has become another pressure point in the modern cost of living crisis.

For many homeowners across the U.S., those fees are rising faster than expected—sometimes by hundreds or even thousands of dollars per year.

As housing affordability continues to tighten, escalating HOA fees are becoming a hidden expense that can quietly erode household budgets and long-term financial plans. If you pay these fees and want to understand why these costs are rising and how to hold your HOA accountable, please read on.

Are you prepared for growing healthcare costs?

Healthcare is one of the single biggest — and fastest-rising — lifetime expenses for most Americans. The exact number depends on your age, health, location, and the benefits you carry, but the total estimated lifetime healthcare costs may surprise (or even shock) you.

Concerningly, many Americans don’t have a clear picture of their potential healthcare costs while working and during retirement, or how to estimate these fast-growing living costs for planning purposes.

For example, a 25-year-old could pay anywhere from $400K+ to ~$1.5M for healthcare over their lifetime depending on personal decisions, medical needs, insurance coverage, and inflation rates.

Does your financial plan include annual estimates for healthcare costs with projected inflation?

Below I’ll sketch projected lifetime (or remaining lifetime) healthcare costs, and explain why tracking and managing these costs over time is crucial for your financial stability and well-being.

How to avoid the rising cost of ATM fees

ATMs were once a symbol of banking convenience, but today they’ve become a hidden drain on many consumers’ wallets. According to Bankrate’s 2025 checking account survey, the average out-of-network ATM fee is now $4.86 per transaction, the highest on record. In some large cities, fees are nearly $6.

If you withdraw cash often, that’s not pocket change—it’s a recurring cost that adds up fast.

To learn more about the true cost of ATM fees and how you can avoid these costs, please read on.