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5 Ways for Retirees to Save on Travel

By U.S. News & World Report

Traveling when you’re young isn’t always easy. If you have kids at home, your opportunities for travel may be limited to school breaks. And even then, school breaks are often monopolized by school sporting events and activities.

When you work a full-time job, it can be hard to take a vacation, let alone travel anywhere meaningful. You might have 20 personal or vacation days, but you’ll need to save some for sick days and activities with your kids. Even then, it can be difficult to plan travel around everyone else’s schedule.

When you’re a retiree, on the other hand, all of these problems fade away. Since you’re no longer limited by parenthood or your work schedule, you can theoretically travel at any time and to any place. That is, of course, if you have the money to do so. Most of the time, a lack of funds is the only thing standing between retirees and their travel dreams. The good news is, there are plenty of ways for retirees to affordably travel if they are flexible and adventurous enough. Here’s how to save on travel when you’re retired:

[See: 10 Places to Retire on a Social Security Budget.]

1. Swap houses with someone else. If you want a place to stay without spending a dime, consider a house swap instead of a traditional hotel or motel route. With a house exchange, you’ll place your dwelling on a website like HomeExchange.com with the goal of finding someone who wants to switch. Most exchanges last a few weeks or months, giving each party a taste of the other’s home environment. “Even if you don’t think you live in a desirable location you just might be surprised,” says Jamie Pomeroy, a financial planner for Financial Gusto in Minnesota. “Someone, somewhere would probably love to come stay in your home and experience your environment.”

2. Rent a condo, then rent out your home. If you’re traveling for any length of time, skipping the traditional hotel experience can save you money. By renting a condo or small home with a kitchen and cooking utensils, you can make some of your meals at home and spend less on food.

Perhaps you could also make money on your home while you travel by renting out your home while you’re gone. “Rather than sitting unoccupied while you are abroad, your home will generate rental income to offset the cost of your travel,” says Benjamin Brandt, a financial advisor for Retirement Starts Today in Bismarck, North Dakota.

[See: 10 Classic (and Unique) Retirement Gift Ideas.]

3. Pursue credit card rewards. These days just about every business in the travel industry has a rewards program, including hotels, airlines, rental cars and even chain restaurants. “Choose your favorite airline, your favorite hotel chain and your favorite rental car service, and sign up for their rewards programs,” says Grant Bledsoe, a financial planner at Three Oaks Capital Management in Lake Oswego, Oregon. “If you use them every time you travel, you’ll eventually earn discounts and even free travel.”

Also make sure to explore travel rewards cards and cash back cards if you are debt-free and have a plan to stay that way. The best travel credit cards can help you earn free travel with your favorite hotel chains and airlines. “However, do your research first before going out and signing up for the first one that looks like a good deal,” says Clint Haynes, a financial planner at NextGen Wealth in Kansas City. “And, most importantly, make sure you pay it off every month.”

4. Pick up a housesitting gig. Websites like TrustedHousesitters.com connect travelers with homeowners looking for someone trustworthy enough to watch their house and maybe even their pets. If you’re a retiree willing and able to travel to new places, you can see how this might look. If your idea of travel is slightly flexible, you might be able to score free lodging and earn some cash with this strategy. You’ll have to be willing to work some, but not too much. Best of all, you can throw any money you earn back into your long-term travel budget. “As always, be sure to check out the details, but this seems to be a very cost-efficient way to go,” says Charles Scott, a financial planner at Pelleton Capital Management in Scottsdale, Arizona. If you score a gig in an awesome spot, you can stay for free and live like a local, too.

5. See if you qualify for discounts. Retirees have many discounts available to them including senior discounts, AARP rates and AAA memberships. There may also be special discounts for military members. “As an Armed Forces retiree, my wife has made many opportunities available to us,” says Tom Diem, a financial advisor at Diem Wealth Management in Fort Wayne, Indiana. Some resorts allow bookings for up to three rooms as long as an eligible Armed Forces member is part of the group. That’s good to know if you’re traveling with others or bringing family along for part of your itinerary.

[See: 10 Retirement Hot Spots in the U.S.]

If you’re a retiree who loves to travel, it’s crucial to find ways to stretch your dollars as far as they can go. Fortunately, there are plenty of ways for retirees to save if they’re flexible and willing to consider creative travel strategies. The world awaits, but you’ll definitely see more of it if you’re savvy with your vacation funds along the way.

Jeff Rose is a certified financial planner, U.S. combat veteran and the founder of GoodFinancialCents.com.

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5 Ways for Retirees to Save on Travel originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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