Money tips for seniors

How you spend money on electronics and cars can affect later years.

Editor’s note: This article was written by Craig Johnson and originally appeared on Clark. com.

To mark money expert Clark Howard reaching the milestone age of 65, he’s sharing some of his most important steps toward financial freedom.

The perks that Clark is getting for turning the big 6-5 this year are a pension, Medicare, and discounts at some restaurants and grocery stores.

Here are some “SENIOR” money tips Clark wants you to know.

Savings: “Savings are key to freedom as a senior. If you don’t have sufficient savings then it typically means that you’re going to have to keep working or you’re going to have to lead a very spartan life,” Clark says.

Electronics: “As a senior who uses electronics — from cell phones to televisions and other things we pay for — there may be special deals that you can get,” says Clark. “Some of the deals start as early as age 50 or 55. All you have to do is ask, and you may even have to change companies to get the best deal as a senior.”

New or used vehicle: “No matter when you ask me, no matter what age, I’m going to say used vehicle instead of new, but especially when you’re new in retirement,” Clark says.

“The reason is that you’re adjusting to living on typically a fixed income and taking a huge chunk of your money — with the average new vehicle costing about $37,000 — that won’t be there for you and can’t grow for you is something that really troubles me. And so, because the average used vehicle is about $17,000, which is less than half the price of a new vehicle, without a doubt, I want you to go with a used vehicle — not new.”

Interest: “So you’ve got two aspects of interest: One is on savings when you’re earning interest, although it may be close to nothing. Another is if you’re paying out huge interest, especially on credit card debt,” says Clark.

“If you are looking to have independence as a senior, a huge percentage of senior citizens now are carrying credit card debt and that just eats at you. The average credit card carries an interest rate of about 17% or so. That’s not a recipe for financial comfort and security. So I’d like you to work as hard as you can to pay off any credit card you have BEFORE you retire.”

Overdraft: Clark says: “Overdraft fees are a pure profit for the bank. They con you into signing up for overdraft, which is typically about $35. They make it seem like a benefit, but you had to give the bank permission to charge you overdraft. Get rid of it, go back into your bank branch or talk to them over the phone and tell them to discontinue their overdraft protection because it doesn’t protect you, it harms you.”