Common financial mistakes to avoid

Plus: Are you in a codependent relationship?

View this email online Today’s newsletter is brought to you by digital editor Malaka Gharib I once lost a friend over a student loan. She was getting her master's degree and needed someone to cosign her loan. She was desperate. And so she asked me -- would I do it?  I was working an entry-level job at the time and I didn't know what it meant to be a cosigner. So I told her I didn't think it was a good idea.  Frustrated, she blocked me from social media and didn't talk to me after that. I felt like a terrible person! In hindsight, I'm glad I said no. Financial educator Yanely Espinal says cosigning a loan is one of the biggest mistakes you can make with your finances. 5 common financial mistakes Cosigning a loan means you're agreeing to be responsible for someone else's debt -- and if the main borrower misses payments, you must repay the loan.  Espinal says there are other ways to support a loved one with this ask. I could have helped my friend find a loan for people with lower credit scores, for example, or helped her find ways to boost her credit score. "If you do that from a place of authenticity, love and kindness and not judgment or spite, I think most people will understand," she says.    rob dobi/Getty Images Don't make these financial mistakes! 💸 Mistake 1: Thinking a loan is free money  If you need money, your instinct might be to borrow from a lender. But remember, a loan is not free money, says Espinal. Those lenders are “running a business and are going to make a profit.”  📈 Mistake 2: Not putting your money in a high-yield savings account If your cash is in a traditional savings account, it’s probably making little, if any interest, says Espinal. Rates are as low as .01% at major banks.  So put those funds in a high-yield savings account with interest rates between 4% and 5%. These higher interest rates allow your money to grow and protect your savings against inflation. 🤑 Mistake 3: Spending more when you make more Some people who earn hundreds of thousands of dollars a year find themselves living paycheck to paycheck. That can happen when people think a higher income means they have to live a lifestyle that matches it, says Espinal. If you're making more money, your savings rate should also increase. Adjust how much you save based on what you earn.  I'm ready to save more money P.S. Have you made a financial mistake you've learned greatly from? Email us at lifekit@npr.org with the subject line "financial mistake" and we may feature your response in an upcoming newsletter.  Newsletter continues after sponsor message We asked, you answered: Would you ever swap your smartphone for a basic phone?   Photo illustration by Becky Harlan/NPR Last week, we asked you: Would you ever consider getting a phone without apps like Instagram and Maps to curb the time you spend online?  Here's what a few of you had to say. These responses have been edited for length and clarity.  A happy flip phone user My wife is glued to her smartphone. When we are watching the news on TV, she will be looking at something else. I don't need that. I've had a flip phone for years now. I can text and call. That is all I want. --Phillip Roullard Information overload  It seems we spend a huge about of time managing our data on our smartphones, deleting emails and texts we didn’t ask for. There's also not enough time to interact with everything that's interesting on the internet. I’d go back to a simpler phone. --Ron Melmon I love my smartphone  No, I would not like to have a basic phone. I love that my phone has the internet, my calendar and especially maps. If anything, I would prefer to remove the phone option from my smartphone because of all the pesky spam calls. --Peggy Walters Listen Sponsor-Free Support public media while getting expert advice on health, finance, relationships and more with Life Kit+. You'll get sponsor-free listening AND that warm fuzzy feeling that comes with making a difference. You can also check out loads of other NPR+ podcasts with benefits at plus.npr.org. Splitting chores and newborn care: Your thoughts  Photo illustration by Becky Harlan/NPR This week, we published a story on how new parents can fairly split housework and child care duties with a newborn at home.  “The division of roles and responsibilities is the biggest difficulty that parents face” when bringing home a new baby, says couples coach Aaron Steinberg.  What often happens is that both parents feel like they’re taking on too many tasks, he says. And that can lead to resentment -- on top of the stress of taking care of a newborn.  Some of you wrote in with your thoughts on the story. These responses have been edited for length and clarity.  The birthing partner needs way more support  With all due respect, the birthing parent needs more support than the non-birthing parent. Splitting chores 50-50 or 60-40 does not help the birthing parent recover from physical trauma after birth. The non-birthing parent needs to balance the scale in a far more generous way than doing laundry and diapering. Having a baby is hard for everyone involved. It is harder for the person who physically produced the baby. --Sheri Fabian My wife and I alternated the days we cared for our son There is a natural tendency for child care duties to fall to women but I wanted to do my share.So my wife and I came up with the idea of alternating days for child care responsibility.  Weekends were split one day on, one day off. Night duty was split into two shifts: 10:00 p.m. to 2:30 a.m. and 2:30 a.m. to 7:00 a.m. If one person was at work (we both had part-time jobs), the other was caring for our son.  Be creative. Divide free time equally but remain flexible. Trade days. Take over when your partner needs a break even if it isn’t your turn. --Jack McKee  This week on Life Kit Jasjyot Singh Hans for NPR  How to know if you're in a codependent relationship. Do you always fall for people who don't like you back? Do your friendships feel one-sided? Do work obligations creep into your personal life? If you notice that your needs aren't being met or that your boundaries aren't respected in your relationships, these connections may have grown codependent. Luckily, there are ways to break the pattern and reclaim your sense of self. Listen to the episode here.  Snuggles, pep talks and love notes: 10 ways to calm your kid’s back-to-school jitters. Teachers, pediatricians and child development experts share loving, creative advice on how to ease children (and their parents!) into a new school year. Read the story here.  Scared of lifting weights in front of others? Here's how to fight 'gymtimidation.' Strength training is a great way to exercise efficiently while preventing injury. But it can be nerve-wracking if you're worried about what other people think of you at the gym. Read the story here.  Upcoming Life Kit topics 🚫 Anti-consumerism  🪰 Fruit flies  🔍 Breast cancer detection  Stream your local NPR station. Visit NPR.org to find your local station stream. What do you think of today's email? We'd love to hear your thoughts, questions and feedback: LifeKit@npr.org Enjoying this newsletter? Forward to a friend! They can sign up here. Looking for more great content? Check out all of our newsletter offerings — including Daily News, Code Switch, Health and more! You received this message because you're subscribed to Life Kit emails. This email was sent by National Public Radio, Inc., 1111 North Capitol Street NE, Washington, DC 20002 Unsubscribe  |  Privacy Policy