This Week’s Money Map:

• 🏠 Why December is one of the best months to buy a home or car

• 💳 Use your credit card points to pay for gifts and utilities with zero extra cost

• 🐶 Pet insurance: How to get coverage without overpaying

• 💵 2026 retirement contribution limits updated

🏠 Why December is one of the best months to buy a home or car

While everyone else is distracted by holiday shopping and family gatherings, you could be saving thousands on the two biggest purchases most Americans will ever make. December is always the best month to buy a car or a home. Here's everything you need to know before these deals disappear on January 1st.

Why dealerships are practically giving cars away right now
Dealers are desperate to clear 2025 inventory before 2026 models take over their lots. The auto industry is facing a glut of unsold vehicles, which means massive pressure to move metal.

The numbers tell the story. Honda is offering rates as low as 1.9% APR for 24 to 36 months, Chevrolet has deals with no payments for 90 days, and Tesla dropped its Model Y lease to $299 per month, down from $349. Other manufacturer deals with 0% APR financing and thousands of dollars off are flooding the market.

These offers expire between now and January 2nd. The sweet spot? Late December, specifically between December 20th and December 31st. Dealers have annual sales quotas to hit. The closer you get to year-end, the more motivated they become.

The home-buying window everyone ignores
Think about it. Who wants to move during the holidays? Not many people. That's exactly why you should. Sellers listing during winter are often highly motivated due to job relocations, financial changes, or other urgent circumstances. Translation: they need to sell, and they'll negotiate.

Current mortgage rates are holding near 12-month lows at around 6.3%. That's not the rock-bottom rates of 2020, but it's significantly better than where we were. Combined with motivated sellers and lower asking prices, December creates a rare alignment of favorable conditions.

The insurance conversation you need to have
There’s one catch when buying a car or home in December — your insurance costs will hit the moment you sign. And right now, those costs are brutal.

The average cost of full coverage car insurance climbed to $2,638 in 2025, a 12% increase from 2024. That's roughly $220 per month. For homeowners, the average cost of homeowners insurance in the U.S. is $1,754 per year, though costs vary wildly by state.

The money you save on the purchase price could evaporate if you're paying premium rates for coverage. So before you commit to any purchase, get unbiased home and car insurance quotes. And make sure you compare at least three providers. Many insurers offer significant discounts if you bundle auto and home policies.

The clock is ticking. Every day that passes is one less day to capitalize on year-end desperation from sellers and dealers.

💳 Use your credit card points to pay for gifts and utilities with zero extra cost

Your credit card points are sitting there right now, worth hundreds or even thousands of dollars. Most people think these rewards only work for flights and hotels — they're wrong. You can transform those points into thoughtful gifts and cover everyday bills.

The gift card play nobody talks about
Most credit cards let you redeem points for gift cards at a straightforward rate. Chase Ultimate Rewards typically converts at 10,000 points for $100 in gift cards. American Express Membership Rewards offers select retailers at $0.01 per point. Capital One miles work the same way.

Here's what makes this powerful — you're spending zero actual dollars but giving real gifts. Target, Amazon, Best Buy, Starbucks, and hundreds of other retailers are available. Some programs even run periodic sales where gift cards cost fewer points than usual.

Beyond travel: Your points can handle real life
American Express lets you use points at checkout with many merchants through its "Pay with Points" program. The value typically sits at 0.7 cents per point, which isn't amazing but beats paying cash when you're tight on funds.

The Wells Fargo Active Cash card offers 2% cash rewards on everything. That's actual cash back you can apply to future bills. The U.S. Bank Cash+ gives you 5% back on utilities when you select that category, capped at $2,000 per quarter. If you spend $2,000 quarterly on utilities and insurance combined, that's $400 back annually just for paying bills you already owe.

Gift points directly to someone else
Most programs don't let you transfer points to another person for free. There are exceptions. Hilton Honors allows free point transfers and pooling between up to 10 members. World of Hyatt permits point transfers to family members and friends.

If someone you know needs hotel points for a trip, you can transfer your Hilton or Hyatt points directly to their account. They use them for their stay, and you spent nothing out of pocket and gave a valuable gift.

Chase Ultimate Rewards points can be combined between household members. If you and your spouse both have Chase cards, you can pool your points into one account and redeem together. This isn't technically gifting to an outside person, but it lets you combine balances for larger redemptions.

The merchandise trap you should probably avoid
Every rewards program sells merchandise. Headphones, watches, electronics, kitchen gadgets. The redemption rates are usually terrible. You might pay 50,000 points for a speaker that costs $250 in stores. That's only 0.5 cents per point in value.

Act now before these opportunities shrink
Several transfer partners are running bonuses through January 2026. American Express occasionally offers 30% transfer bonuses to Air France-KLM Flying Blue. These bonuses mean your 100,000 points become 130,000 miles when transferred. Even if you don't fly, having more miles increases your gift-giving options.

The gift-giving season is happening right now. Your points are ready. Use them strategically and you'll handle both without opening your wallet.

🐶 Pet insurance: How to get coverage without overpaying

The right pet insurance policy protects your pet without destroying your budget — but finding it means cutting through the marketing noise and understanding what actually affects your premium.

Cheapest providers worth considering
Lemonade offers the cheapest pet insurance at $41 monthly, while Pumpkin provides the lowest cat premiums at $20 monthly. ASPCA, Hartville, and Figo are also worth comparing since the "cheapest" depends heavily on your specific situation — i.e., your pet's age, breed, and where you live all factor into your final premium. But before you jump at the lowest price, understand what you're getting.

How to actually save money

👉 Compare pet insurance quotes from at least three companies. The same 3-year-old Golden Retriever might cost $45 monthly with one insurer but $60 with another, saving you $180 a year just by shopping around.

👉 Adjust your deductible. Choosing a higher deductible can save $10–20 per month, though you'll pay more when filing claims. If you can afford a $500 hit in an emergency, don't pay extra each month for a $250 deductible.

👉 Lower your reimbursement rate. Picking 70% instead of 90% reimbursement can reduce monthly costs while still providing solid coverage for major expenses.

👉 Stack available discounts. You can often save 5–15% with multi-pet, military, annual payment, and other discounts. Ask about every discount when getting quotes — they add up quickly.

Why December is the best time to review pet insurance
December offers a strategic advantage for purchasing or switching pet insurance policies. Here's why this timing matters:

• Fresh annual benefits — Most pet insurance policies operate on an annual basis with deductibles and coverage limits that reset January 1st. Purchasing coverage in December means your deductible clock starts immediately, but you gain nearly a full year of coverage before the next reset.

• End-of-year discounts — Some insurers offer promotional rates in December to meet annual enrollment targets. You might find better pricing or enhanced benefits that disappear in January.

• Tax planning considerations — Although pet insurance generally isn't tax-deductible for personal pets, if you have a service animal or use your pet for business purposes, purchasing coverage in December could affect your year-end tax situation.

Don't wait until your pet needs expensive treatment to start researching coverage. A few days spent comparing policies in December could save you thousands in 2026 and beyond.

💵 Bigger savings ahead: 2026 retirement contribution limits updated

Good news for savers: the Internal Revenue Service (IRS) has officially raised contribution limits for several key retirement accounts in 2026, giving you more space to grow your nest egg in a tax-advantaged way.

What’s changing
Here are the headline numbers:
👉 The base contribution limit for 401(k), 403(b), most 457, and federal Thrift Savings plans rises to $24,500, up from $23,500 in 2025.  
👉 For those age 50 and over, the “catch-up” contribution increases to $8,000 (up from $7,500). That means eligible savers can contribute up to $32,500 under these plans in 2026.  
👉 The limit for individual retirement accounts (IRAs) also goes up: you can contribute $7,500 next year (up from $7,000). Catch-up for IRAs (50+) increases to $1,100.
👉 Income thresholds and phase-out ranges for deductible Traditional IRAs, Roth IRAs, and the Saver’s Credit have also climbed.  

Why this matters
You have more breathing room. Whether you’ve maxed out contributions before or not, the extra dollars give you another chance to accelerate savings or catch up. The higher limits mean you can shelter more income from tax (or grow more in after-tax vehicles), depending on your plan design.

If you’re 50+ and playing “catch-up”, the bump gives you even more leverage to boost your retirement readiness. Lastly, more room to contribute also means more important decisions: Roth vs pre-tax contributions, asset allocation, tax diversification, and retirement timing all become more meaningful.

What you should do
✅ Check your employer plan for how much you’re contributing now – can you increase your deferral to reach the new limit?
✅ Review your IRA contributions and see if you’re making full use of the $7,500 limit (if eligible).
✅ Think about tax strategy: With more contributions possible, choosing between traditional (pre-tax) vs Roth (after-tax) options, and where to hold assets, becomes more important.
✅ Update your projections: The higher limits mean you might hit your target retirement savings sooner or with less income sacrifice – recalculate if your plan allows.

These 2026 contribution limit increases may look modest, but they add up, especially when you’re aiming for long-term retirement readiness. Use the extra room smartly: this is your chance to save more, plan smarter, and give your future self a stronger hand.

Smart Cents gives you actionable tips and mindset shifts to help you reach your financial happy place. Thanks for being a part of our community.

The MoneyGeek Team

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