Applied math: which egg size is cheapest?
I recently started eating egg whites regularly, and that meant I needed to start shopping for eggs every week. My local grocer sells a variety of egg sizes. Can you figure out which one is cheapest? Here are the prices: Here is how I approached the problem.

The gimmick of dollar cost averaging (DCA)
You just received a $100,000 in cash. Do you invest the money all at once, or do you spread it out into equal investments using dollar cost averaging? Most advisers will say to dollar cost average, but I do not think this is the right answer. Dollar cost averaging has nearly ...

Quick tip: how I saved money on servicing at the car dealership
I recently went to my car dealership for scheduled maintenance. Now I will already admit this was probably not the best decision. If you are trying to save money, it is often better to avoid overpriced dealerships and go to other mechanics (a former mechanic makes this case of how overpriced ...

Beware of smiling faces in financial advertising
Finding the best savings account is mathematically simple. You should shop around for the best rates at reliable banks, and then pick an account that offers a competitive rate. But our predictably irrational ways can get in the way. I was reading an interesting example of how something as simple as ...

The Flexible Spending Account: an “investment” with a great “ROI”
Flexible Spending Accounts (FSAs) are an incredible way to pay for health expenses. While FSAs can be complicated and require some effort, I now think their rewards are worth the hassle. I want to explain a bit about how FSAs work, and then I'll get into the math. Most people know ...

Do you want batteries with your cereal? An example of behavioral economics in retailing
The last time I was at a local Target store, I noticed something strange. At the end of the cereal aisle, there was a display rack for batteries. Not something complementary like snack bars, or nuts, or hot chocolate mix. The rack had batteries, hundreds of packs of disposable batteries ...

Study: jealousy can drive purchases
Do you buy things because you can really afford them, or because you see people poorer than you have bought those things? We are influenced by how others spend, and a recent paper documented how social status can affect our spending. From the press release at the Journal of Consumer Research:

Capital One Venture card rewards math: how does it stack up?
I saw an ad for Capital One’s Venture card that got me curious. The ad stated the Venture card offers much better rewards than other cards offering miles, and it was named as one of Money Magazine's best credit cards. That claim naturally got me skeptical, so I dug into the ...

Budget and expense tracking – quarterly review
Three months have already gone by this year. How are you keeping up with your financial goals and New Year's Resolutions? Now is a good time to evaluate if you have been keeping up with your budget and spending plans. If you are spending too much, you have enough time left ...

Why would CD rates be lower than savings account?
On the surface, it would seem certificate of deposits (CDs) should always offer higher rates than savings accounts. With CDs, you have to lock your money in for months at a time, invest a certain minimum, and suffer penalties or lost interest if you want your money early. With many ...

Would you pass this 1971 economics test?
A while ago I was in Madison, Wisconsin and was browsing the small library at the hotel. Inside one of the books I found a few pieces of paper, which turned out to be an economics final examination dated June 10, 1971. Even though the test was over 40 years old, the ...

4 ways tracking expenses helps when filing taxes
Years ago I started tracking expenses simply to see how much I spent and earned. I was thrilled to see how writing down all my purchases made me more aware of my spending habits. I ultimately became more conscious of my spending and ended up saving a lot more money ...

5 common credit card mistakes, and how to avoid them
Even though I consider myself an educated consumer, I know that smarts alone will not prevent money mistakes. I occasionally take time to read basic personal finance advice to remind myself of good habits. I came across a document at the Federal Reserve website about basic credit cards tips. These are basic ...

Video: do not invest your emergency fund
This is really basic, conventional financial advice that too many people ignore. With saving accounts offering very low interest rates, it can be tempting to invest emergency funds into the market for gains. This is not a good idea due to stock market volatility, as explained in the following video from USAA.

4 stupid things people do when researching tax information online
Are credit card opening bonuses taxable? When is the deadline for contributing to an IRA? These are just a few of the questions people will be searching for with tax time just around the corner. These days, it will not be hard to find the answers online. There are so many good ...