Borrowing from life insurance — known as a life insurance loan — is an easy way to get cash immediately without the high interest rates of bank loans and credit cards. However, there are a few potential downsides, including reduced benefits and the possible loss of your life insurance policy altogether, so it’s important to understand the rules of life insurance loans before you consider this option.

Christmas club savings accounts are banking products that combine the advantages of traditional savings accounts and certificates of deposit. You can open an account with a small initial deposit and fund it with regular deposits on a set schedule. Your savings then earn interest, and the account matures in time for holiday shopping in December.

Companies often provide benefits to their employees, including 401(k) retirement plans. To encourage their employees to save for retirement, these companies will usually match contributions up to a certain amount. If your company offers a 401(k), how much you should contribute to it in your 20s depends on the annual limit on matching contributions and your ultimate retirement savings goal.

Certificates of deposit (CDs) allow you to lock in an interest rate for a set period of time at the cost of immediate access to your money. High-yield savings accounts, on the other hand, provide easy access to your money, but interest rates will vary over time. Issued by U.S. banks, both products are insured and protected by the FDIC, so which option is better for you depends on whether you prefer a predictable interest rate or the ability to withdraw your money at any time.

Exchange-traded funds can be great investments, as they often contain diverse securities, come at a low cost, and allow you to immediately reinvest your dividends. However, depending on the ETF you invest in, you may find that you receive fewer dividend funds and have less diverse securities than you previously realized. Because of this balance between benefits and drawbacks, ETFs aren’t a great fit for every investor.

“Being poor” can mean having an income that falls below the poverty line. In that case, you may need to take advantage of assistance programs, improve your education, and find better work. “Being poor” can also mean feeling poor because you can’t seem to avoid spending every cent you make, aren’t saving or investing, and are piling on debt. In that case, you need to learn better money management skills so you can live within your means and save for the future.

Two of the primary ways the U.S. government taxes individuals are by taxing income and taxing investment gains. The government encourages investing for the long term by setting a lower tax rate on realized profits from investments held longer than one year. There are commonly used strategies to defer or reduce capital gains taxes, but generally speaking, you cannot legally eliminate them entirely.

Both a cash-out refinance and a home equity line of credit (HELOC) are refinancing options for homeowners looking to tap their property’s equity. Through a cash-out refinance, the homeowner receives a check for the difference between the original mortgage and the home’s equity by applying for a new, larger mortgage. A HELOC, on the other hand, acts as a revolving line of credit that the homeowner can access as needed.

Annual percentage rate (APR) and annual percentage yield (APY) both sound similar, but they are actually quite different. APR is the annual cost of a loan to a borrower. It is the rate usually advertised when people shop around for a loan or line of credit. APY, on the other hand, is the real rate of return earned on an investment, taking into account the effect of compounding. It is the rate featured when a financial institution wants you to invest your money as a lender or deposit it in an interest-earning deposit account.

Contingent offers represent about 8 out of every 10 home purchases, yet only about 1 in 10 of them fall through. Both buyers and sellers may have contingencies in place to protect themselves from failed financing, outrageous home repair expenses, or ownership disputes.