More than 32 percent of 18- to 34-year-olds live with their parents, according to the Pew Research Center.
Even if you’ve moved out, there’s a good chance that your last financial tethers to Mom and Dad are your family plans. Whether for your phone or Netflix, family plans can save you money.
Aside from sharing an account with your folks, you could also discover savings by teaming up with your significant other or roommate.
3 best family plans that could save you money
Family plans save you money when you and a relative (or close friend) pay to use the service together instead of as individuals. If you and your roommate have a YMCA gym membership, for example, you could qualify for a lower monthly rate that combines your expenses.
Not all family plans are money-savers. You’ll see “family plan” advertisements directed to parents with young children, for example. They’re all over the place, from meal-planning service Blue Apron to hotel stays at the Hyatt, and they result in extra costs.
Say you book a second hotel room at the Hyatt because it comes at a 50 percent discount, for example. You’re spending more than you would have by keeping the family in one room.
Let’s review the three best sorts of family plans that could actually fatten your wallet.
1. Cell phone plans
The average age of adults on their parents’ phone plan is 28, according to a 2016 Harris Poll. Plus, 32 percent of those adults are older than 30.
The reasons you stay close to your parents are obvious. There’s the convenience of not switching phone plans when you move out. There’s also the potential savings in adding lines to an existing plan versus opening a new one.
As you search for the best family phone plans, take into account factors like data usage and coverage areas. Cost, of course, should also be a primary concern. Don’t overlook the opportunity cost of buying the latest iPhone, either.
The first line on T-Mobile One unlimited data plans, for example, costs $75. But the second only costs $35, according to Consumer Reports. The more lines you need, the more your family can save.
Potential savings: Using T-Mobile One prices as a proxy, a family of four could save $30 per person per month (or $360 per year). You would pay $45 per person on a family plan costing $180 total, instead of paying $75 each on individual plans totaling $300. Your savings vary based on your provider and pricing.
2. Streaming subscriptions
If you’re in a family of smartphone users, chances are you’re also among subscribers to streaming services. Whether music or TV is your thing, combining accounts could save you money.
If you and your parents or a significant other is an Amazon Prime subscriber, for example, you could link your accounts to enjoy the same benefits at a lower price. Using the Amazon Household feature, you could go from two annual payments of $99 to one.
Besides cost, you’ll also want to consider family plans that allow each person to stream on their phone, laptop, and tablet. Google Play Music separates itself from the competition by allowing each user to stream on up to 10 devices.
Potential savings: Although smaller than the savings on the best family phone plans, sharing streaming services could help you pocket some cash. Here are additional examples of monthly rates and annual savings for an individual in a family of four:
|Service||Individual price||Family price||Individual’s annual savings|
3. Auto insurance
You might be aware that if you’re under the age of 26, you could stay on your family’s health insurance plan. That offers significant savings to young people without access to employer-provided plans. The same goes for signing up for dental insurance, where family rates are effectively lower than an individual’s.
What’s less obvious is that staying on your family’s auto insurance plan could save you big bucks. It’s one path to avoiding unnecessarily pricey student car insurance if you’re still in school.
If you’re out of school, you might need to share the same permanent address to stay on your family plan.
The upside of staying on family plans is that you can share a lower premium with your parents. The Nationwide Family Plan, for example, extends multi-driver discounts to everyone living in the same household.
Potential savings: The average teen could spend $7,689 annually on individual auto insurance or share a $3,852 policy with their parents, according to consumer research firm ValuePenguin*. Although the parents’ premiums would increase, the teen would save $5,763 per year by joining forces with family.
Finding savings through family plans
You would be right to be wary about getting financial advice from family. But sharing the costs and benefits of your recurring purchases is a no-brainer.
Just remember the real definition of family plans. Adding an authorized user on a credit card, for example, might provide convenience. It might even help a family member build their credit. But unlike sharing the costs of the best family phone plans, streaming services, or insurance, you’re unlikely to save money.
Review the repeating charges in your budget, and ask your relatives or roommates if they pay for the same services. If you have an expense in common, there could be savings in your future.
*ValuePenguin is an affiliate of LendingTree, Student Loan Hero’s parent company.
Interested in a personal loan?Here are the top personal loan lenders of 2019!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.95% to 35.89%*. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: LendingClub, 71 Stevenson Street, Suite 1000, San Francisco, CA 94105.
†Per reviews collected and authenticated by Bazaarvoice in compliance with the Bazaarvoice Authentication Requirements, supported by anti-fraud technology and human analysis. All reviews can be reviewed at reviews.lendingclub.com
**Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between January 1, 2018 to July 20,2018. The time it will take to fund your loan may vary.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|5.72% – 16.99%1||$5,000 - $100,000|
|7.54% – 35.99%||$1,000 - $50,000|
|7.99% – 35.89%*||$1,000 - $50,000|
|5.99% – 24.99%2||$5,000 - $35,000|
|5.99% – 29.99%3||$7,500 - $40,000|
|6.79% – 20.89%4||$5,000 - $50,000|
|9.99% – 35.99%5||$2,000 - $25,000|
|6.95% – 35.89%6||$1,000 - $40,000|
|6.99% – 18.24%7||$5,000 - $75,000|
|9.95% – 35.99%8||$2,000 - $35,000|
Interested in refinancing student loans?Here are the top 6 lenders of 2019!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for SoFi.
2 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.54% APR (with Auto Pay) to 7.27% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of March 18, 2019, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 0318/2019. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at email@example.com, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
3 Important Disclosures for Laurel Road.
Laurel Road Disclosures
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the fixed rate will decrease by 0.25%, and will increase back up to the regular fixed interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.
All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.5% effective February 10, 2019.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.54% – 7.12%3||Undergrad & Graduate|
|2.54% – 7.27%1||Undergrad & Graduate|
|2.67% – 8.96%4||Undergrad & Graduate|
|3.23% – 6.65%2||Undergrad & Graduate|
|2.69% – 7.43%5||Undergrad & Graduate|
|2.98% – 9.72%6||Undergrad & Graduate|