The Penny Hoarder

In 2 Minutes, Credit Sesame Can Help Improve Your Chances of Getting a Home in This Market
This Sesame Cash Debit Card Gives You up to $100 for Raising Your Credit Score
With CalTier Realty, Invest in Multi-Family Real Estate for as Little as $500
Utah 529 Plan for College Savings
Nurturing Jobs: 5 Side Gigs Taking Care of People and Pets
The Penny Hoarder’s 2021 Survey on Child Care Costs
Dear Penny: Can My Boyfriend Sue Me for His Big Sacrifice if We Break up?
How to Build a Photo Scanning and Digitizing Side Gig

In 2 Minutes, Credit Sesame Can Help Improve Your Chances of Getting a Home in This Market

Posted: 17 Nov 2021 02:00 PM PST

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If you've been trying to buy a house in this chaotic pandemic housing market, you know you could lose an opportunity from right under your feet in an instant.

The market is as competitive as we've ever seen it, and cash buyers are snatching up houses left and right. Bidding wars start within hours of a house being listed, and it's not uncommon to see people offering $50,000 over asking price. Some things are just out of your control.

But there's one thing that you do have control over — and that's making sure you get approved for a mortgage, at a rate you can afford. Home sellers want to sell to someone who won't give them any trouble during the closing process — and having a pre-approval for a mortgage loan is a great selling point. But without a good credit score, you might not stand a chance.

That means now is the time to improve your credit score and make sure there are no dings on your report holding you back. A free website called Credit Sesame can help you build your score, getting you one step closer to living in your dream home.

A Bad Credit Score Can Deny You a Pre-Approval — Or Cost You Thousands

If you've ever applied for a loan, you know that the lowest interest rate will save you the most amount of money. The same goes for a mortgage — and the only way to get the lowest interest rate is to make sure banks don't think you're a risky client (aka someone with a bad credit track record).

And with a poor credit score, you might not get a pre-approval at all — meaning just putting an offer on a home is out of the question.

A higher interest rate on your mortgage could cost you tens of thousands of dollars more over the life of your loan. In just 90 seconds, Credit Sesame will show you your free credit score, plus what's impacting it. It'll even tell you if there are any mistakes on your credit report — one in five people have one, according to the FTC. Then, they'll give you customized advice to get your credit score back on track, which could make you more appealing to lenders — and home sellers.

Make sure your dreams of homeownership don't get squashed by bad credit. Get your free credit score here (it only takes about 90 seconds) and see how much you could improve your score. You could be that much closer to getting the keys to your new home.

Kari Faber is a staff writer at The Penny Hoarder.

60% of Credit Sesame members see an increase in their credit score; 50% see at least a 10-point increase, and 20% see at least a 50-point increase after 180 days.

Credit Sesame does not guarantee any of these results, and some may even see a decrease in their credit score. Any score improvement is the result of many factors, including paying bills on time, keeping credit balances low, avoiding unnecessary inquiries, appropriate financial planning and developing better credit habits.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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This Sesame Cash Debit Card Gives You up to $100 for Raising Your Credit Score

Posted: 17 Nov 2021 12:52 PM PST

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You know this classic dilemma: You want to build credit, but first you need to prove you can be trusted — that you'll make your payments on time and keep your usage low. Of course you can, but how can you prove it if no one will extend you any credit?

Luckily, we found a debit card with a credit builder feature that can help you get you into the credit game by helping you raise your score, much like a credit card could. It's from Sesame Cash, a digital, all-in-one account from Credit Sesame. The Sesame Cash debit card isn't your typical debit card. It has a free credit builder feature you can enable, and it'll even pay you up to $100 just for raising your credit score.¹

Here's how it works: Once you have your free Sesame Cash debit card, they'll open a virtual secured credit card, or "credit builder," which gets reported to the major credit bureaus. You'll pick the security deposit amount to put toward your credit builder account each month, then Sesame Cash tallies up some of your already-made debit purchases (not more than your deposit amount), moves them to your credit builder account, and reports them to the bureaus. Then you get to watch your credit grow!²

It gets even better — your Sesame Cash account will pay you for raising your credit score. Just put $100 toward your account every month and Credit Sesame will pay you as much as $100 when your score increases.¹

Once the money is deposited into your Sesame Cash Account, you can spend it however you want to. And if it's at one of the more than 5,000 stores Sesame Cash partners with, like Burger King, Sephora or Walmart, you could earn up to 15% back instantly on your purchase.³ It's like a gift that keeps giving.

Creating a Sesame Cash account is quick and secure. And if you need to raise your credit score anyway, getting paid to do it makes the process that much sweeter.

¹ This is a limited time offer. To be eligible for cash rewards, a minimum deposit, every 30 days, must be made into your Sesame Cash account. Rewards earnings are available for credit score improvements of ten points or more within a 30-day reward cycle. Improvements are calculated from your baseline credit score, as determined by Credit Sesame. Please review the full program terms for more details, including the minimum deposit amount for this program term.

²Sesame Cash is a prepaid debit card issued by Community Federal Savings Bank (CFSB). Building credit with Sesame Cash requires you to also open a secured line of credit with CFSB that is reported to the credit bureaus. Use money from your Sesame Cash account to create a secured line of credit (Secured Account). Your debit card purchases are then added up to create a balance on your Secured Account. As you make these purchases, an amount equal to the balance on your Secured Account is also set aside in your Sesame Cash account to ensure you can make timely payments to pay off the balance on your secured line of credit at the end of each month, allowing you to build a positive payment history. Credit Sesame does not guarantee credit score improvement. Any predicted credit improvement from the use of your Secured Account assumes that you will maintain healthy credit habits, including paying bills on time, keeping credit balances low, avoiding unnecessary inquiries, appropriate financial planning, and more.

³ Cash back offers are powered by Empyr, Inc. Cash back requires the activation of any active offer before payment is made. Payment must be processed as a credit transaction and made before the offer expires. Offers vary by geographic location and are subject to change. Please review the full program terms for more details.

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With CalTier Realty, Invest in Multi-Family Real Estate for as Little as $500

Posted: 17 Nov 2021 12:45 PM PST

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We all have the same 24 hours in a day. But what we don't all have is access to the same opportunities. This is especially true for investing. The high-and-mighty 1% have access to exclusive, lucrative real estate investments that you'd likely never be able to afford, even if you could get your hands on them.

Until now, that is.

Now you can invest in real estate, too. And you don't need to be extravagantly wealthy. You just need $500. A company called CalTier lets you invest in commercial real estate — specifically, multi-family apartment complexes across the country that CalTier buys into.

Typically, to buy into an investing opportunity like this, you'd need to be an accredited investor with a six-figure income or a million-dollar net worth. But this is open to the rest of us, the everyday investor.

It's no wonder multi-family housing has been such a popular investing option — it's outperformed the S&P 500 for the last 20 years*. Plus, it's considered by many to be a safe, easy way to diversify your investments. It's the age-old principle of not keeping all your eggs in one basket. Many financial advisors will tell you this is a key strategy for building long-term wealth.

Even better? CalTier partners with big-time real estate companies and institutional investors that do billions of dollars in real estate deals and gives you access to a diverse and exclusive portfolio of properties.

How to Get Started in Real-Estate Investing for as Little as $500

We know what you're probably thinking: Won't my money be tied up for years? What if I need to withdraw? Normally, that would be the case. But here's another way CalTier is changing the world of real-estate investment. CalTier also gives you a 30 day money-back guarantee.

If you have any questions along the way, CalTier's accounts team is available to get your questions answered by a real human.

So if you're ready to join the ranks of wealthy and institutional real-estate investors, it's no longer out of reach. It's easy to open a free account and get started.

So sure, we all have the same 24 hours in a day — isn't it time we had access to the same opportunities?

Mike Brassfield (mike@thepennyhoarder.com) is a senior writer at The Penny Hoarder.

An offering statement regarding this offering has been filed with the SEC. The SEC has qualified that offering statement, which only means that the company may make sales of the securities described by the offering statement. It does not mean that the SEC has approved, passed upon the merits or passed upon the accuracy or completeness of the information in the offering statement. You may obtain a copy of the offering circular that is part of that offering statement here.

You should read the offering circular before making any investment.

There is no guarantee of success, and there is a potential for loss of your investment.

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Utah 529 Plan for College Savings

Posted: 17 Nov 2021 10:29 AM PST

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College can help unlock a world of possibilities. However, having to pay for college tuition can feel like a burden long before the acceptance letter even arrives. But by using a 529 plan as an investment vehicle, you can start saving for college tuition now to launch a college career affordably later.

529 plans are tax-advantaged investment accounts that allow you to invest and grow your money to use on qualified education expenses. And the state of Utah happens to offer some of the best 529 college savings plans in the country — and it's not just for Utah residents.

Get the rundown on Utah's 529 plan for college savings, find out how rewards programs like Upromise can help you grow funds even faster.

What Is a 529 Savings Plan?

529 plans are tax-advantaged investment accounts used to grow money for education expenses. They come in two forms: the widely used education savings plan and the dwindling prepaid tuition plan, which is only accepted at a handful of Utah colleges.

These plans typically generate money for college through mutual funds, a shared portfolio of investments, but they can use individual funds too. Unlike retirement accounts, you can't make pre-tax contributions to them.

Plans can also generate money through 529 rewards programs that help grow savings accounts through cashback programs.

Here's a rundown of some of the top benefits of 529 plans and the ways they can grow your college savings:

Taxed deferred

While you can't skirt payroll taxes to contribute to them, the money generated from a 529 plan is generally tax-free if used for qualified expenses.

Tax deductions

You can claim a 529 plan tax deduction on your income taxes, a tax credit that enables you to contribute even more. The State of Utah offers a 5% tax credit of up to $2,070 for single filers, $4,140 for married couples in 2021.

No federal taxes

You don't even need to mention it to the IRS on your federal taxes.

Account holder control

The beneficiary has no control over when or how much money is withdrawn from the account, or any say on investment options. The account holder has to request a withdrawal for qualified expenses or pay a penalty for a non-qualifying disbursement. So no, your student can't blow your savings on digital currency for Fortnite or Roblox.

Accessible

You don't have to live in Utah to manage and contribute to a 529 plan in the state.

Flexible

You don't have to be an experienced investor to generate money from your 529 plan. But you'll likely have general options for how aggressively or conservatively your account targets growth. The closer to college a student is, the more you'll likely want to ease off the gas and target safer investment options.

Ground Rules on Utah 529 Plan Withdrawals, Beneficiaries and More

Neither you nor your beneficiary has to live in Utah to qualify for a 529 plan in the state. Yes, you can start a Utah educational savings plan and use it for qualified expenses in another state. However, your account will still be subject to Utah's rules.

As flexible as 529 plans are, there are still rules regulating them.

Who can benefit:

Anyone with a Social Security number or tax identification number can be a beneficiary.

Account holder requirements:

You must be at least 18 years old to open a Utah 529 plan.

Who can contribute:

Anyone can contribute: family, friends, acquaintances — though only the account holder can claim the tax deduction.

Ways to contribute:

Contribution options include online payments, checks, money orders, income tax refunds, payroll, bank transfers and rollover funds from other accounts.

Age-based limits:

Beyond the requirement for the account holder, there are no age-based limits on Utah's 529 plan. The student doesn't have to use the funds in the Utah 529 plan by a certain age or before a certain amount of time has passed.

Annual contribution caps:

$15,000 per beneficiary ― you can contribute more, but you'll be hit with a gift tax.

Lifetime contribution caps:

$510,000 total per beneficiary ― but you can contribute to someone else's fund.

Qualified expenses:

Eligible expenses include tuition, books, fees, supplies, computer equipment, certain software, education loan repayment and room and board when enrolled in enough credit hours to be considered a part-time student. Other higher education expenses may qualify.

Non-qualified withdrawals:

For non-qualified expenses, money generated from 529 investments is subject to state income tax and a 10% penalty.

How to Start a 529 Plan

Knowing what it takes to start and maintain a 529 college savings plan is one thing. Making the most of it is another. But there are services that can help you maximize your investments and hit your goals. Upromise is a rewards program that offers tools and advice to help you hit your savings goals, maximize your plan's benefits and find additional ways to save along the way.

Link your 529 account with Upromise to get rewarded for savings. You'll get $5.29 just for joining the program and $25 if you link your account.

Upromise also offers a Mastercard, an optional debit card you can use to earn cashback on purchases, such as groceries and household items, and apply those funds to your Utah 529. It's a force multiplier for saving for college.

Want to move the needle as soon as you launch your college savings investment plan? Give your Utah Educational Savings Plan a boost from this introductory offer from the Upromise Mastercard, backed by Barclays Bank, FDIC insured.

Need to step on the gas to grow your savings faster? Enabling the Mastercard's roundup feature will make it easier to corral and nurture those extra dollars and cents, by rounding up charges for each purchase you make with the card.

Upromise has already helped families save more than $1 billion for college. Link up and save more today.

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Nurturing Jobs: 5 Side Gigs Taking Care of People and Pets

Posted: 17 Nov 2021 09:05 AM PST

If nurturing comes naturally to you, there are ways to turn that instinct into extra money.

Side gigs aren't limited to doing other people's grocery shopping or selling stuff online. There's a slew of more personalized and nurturing jobs for anyone who likes to take care of people and animals.

Here's a quick rundown:

5 Nurturing Jobs Taking Care of People or Animals

1. Pet Sitting

Pet sitters provide owners peace of mind by watching over their animals while the clients are away. For midday walks or in-home visits, a sitter will come to the client's house to feed and let the pets out. During in-home overnight visits, a sitter will stay at the client's house to feed, walk, administer medication, play with and watch over the pets all night.

If you use a pet-sitting app like Rover or Wag, you'll create an online sitter profile where you'll answer questions about your experience and availability. You may also need to pass a phone and in-person interview.

Once approved, dog owners will reach out to you, and you choose which gigs you want. Extra belly rubs encouraged.

2. Babysitting

The standard first job for preteens everywhere is now a thriving industry with plenty of apps to connect you to potential clients. For starters, check out Care.com and Sittercity to create a free membership.

And babysitting is no longer just the purview of the 10th grader down the block. Adults who offer their services can command a higher rate, along with those who are willing to watch kids in their own home or provide extras like homework help or carpooling.

Need a banking service that's built for freelancers, helping you save for taxes and keep track of your expenses? Check out Lili. (It's free!)

3. Elder Care

We love this app that aims to connect two of the loneliest groups: seniors and college kids.

The Papa App, which is currently operating in cities across 17 states, provides "grandkids on demand": college students, mainly, who are looking for extra money who help seniors with grocery shopping, chores, tech help and genuine companionship.

The company used to employ only college students as Papa Pals but has dropped that requirement. Now, to qualify, you must have at least four days of availability per week, demonstrate some tech savvy and pass a background check. There are further requirements for driving if you do in-person visits.

Toni George, owner of Scratcher Girls, scratches client Daria Ortiz in Hollywood, Fla.

4. Back Scratcher

True story: This Miami woman cultivated a legitimate business from a side hustle scratching other people's backs.

If that sounds a little weird, stop and think for a moment how good it feels to get a thorough back-scratch. See? So maybe it's not so surprising that people pay $50 for a half hour of that feeling.

The lesson here? Well, for one thing, there's always a market for services that meet our basic human needs.

Which leads us to …

Professional snuggler Samantha Varnerin poses in her bedroom in Medford, Mass.

5. Professional Cuddling

This is just what it sounds like: spooning, holding hands and snuggling with strangers. Professional cuddling is a real thing, and this woman charges $60 an hour for it.

You must like people and approach the work free of judgment. Otherwise, you've already got the tools to start handing out hugs.

Molly Moorhead is a senior editor at The Penny Hoarder.

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The Penny Hoarder’s 2021 Survey on Child Care Costs

Posted: 17 Nov 2021 08:53 AM PST

When you have a baby, you understand your life is going to change significantly.

You're responsible for another human being. You'll lose tons of sleep. And, of course, you'll have a bunch of new expenses.

Diapers. Formula. Clothing. Toys. But one of the biggest expenses that hits parents is child care.

The Penny Hoarder surveyed 2,000 parents in September 2021 asking about how child care costs affected their lives. Despite extra financial support in the form of pandemic stimulus checks and child tax credits this year, a large majority of families feel overwhelmed.

This graphic breaks down how many parents feel overwhelmed by the cost of childcare.

The Financial Toll of Child Care

For working parents, child care is a necessity. Yet, it's often challenging to secure and afford quality care.

"Working families across the country pay a significant percentage of their annual earnings to cover the price of child care," said Mario Cardona, Chief of Policy and Practice for Child Care Aware of America, a national child care advocacy organization.

For many parents, it costs more to send their kids to day care than to put a roof over their heads.

"In the Midwest, Northeast and South, the price of full-time, center-based care for two children is the highest category of household expenses, including housing, transportation, food and health care," Cardona said. "In the West, the price of child care for two children is surpassed only by the high price of housing."

Half the parents we surveyed reported spending at least 25% of their income on child care. That's a significant increase from when The Penny Hoarder surveyed parents about the cost of child care in 2018. Back then, the median percentage of income parents said they spent on child care was 15%.

Child Care Aware of America uses an affordability benchmark from the U.S. Department of Health and Human Services, which states that families who are receiving child care subsidies should not pay more than 7% of their income toward co-payments.

"We've used this benchmark to say that no family should pay more than 7% of income towards child care, whether they receive child care subsidies or not," he said.

Following these guidelines, a family earning $5,000 a month should be paying no more than $350 a month for child care.

The Sacrifices Parents Make

The expense of child care forces parents to make hard choices.

Four out of 10 parents say they've gone into debt due to the cost of child care. Over a quarter of parents have had to move to a different home to afford child care. Almost 38% of parents have had to take on a second job or side hustle.

Having to pay a child care provider makes it tough to meet other financial responsibilities. Almost 28% of parents say they've had to choose between paying for child care or paying their rent or mortgage on time.

About 35% say they've had to choose between paying for child care or paying a credit card bill on time.

Not paying a bill on time often results in late fees, but for some families, an extra fee is better than losing a coveted spot at a child care center and facing the challenge of finding other arrangements.

Other parents figure that it makes more sense to leave the workforce than to spend so much of their income paying for child care. Nearly 1 out of 5 parents say they've had to quit a job due to the costs of child care.

Pro Tip

Here are 17 companies that provide child care assistance as an employee benefit.

Leaving the workforce has ripple effects beyond a loss of income. Many stay-at-home parents find it difficult to return to work due to gaps in their employment history. They lose out on opportunities for career advancement. Not having access to an employer-sponsored 401(k) plan means stay-at-home parents miss out on the ability to grow their retirement savings.

63 percent of people consider childcare costs in whether or not they'll have another child.

Help Needed

The Penny Hoarder's survey on child care costs survey found that financial support during the pandemic has helped parents pay for child care.

Seventy percent of parents said stimulus check money helped with the cost of child care during the pandemic. Over 83% of those receiving monthly child tax credit payments said that money has helped with child care expenses this year.

This financial assistance, however, is temporary. About 1 in 5 parents receiving child tax credits reported that once the monthly payments end in December, they don't believe they'll be able to continue paying for care.

Looking for more help? Read how FSAs, employer programs and tax benefits can help you manage the cost of child care.

Methodology: The Penny Hoarder used Pollfish to conduct a national survey about the cost of child care with 2,000 people completing the survey Sept. 8-10, 2021. Survey responses are weighted so that each response is representative of the U.S. population.

Nicole Dow is a senior writer at The Penny Hoarder. Chris Zuppa, The Penny Hoarder's multimedia content creator, contributed to this report.

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Dear Penny: Can My Boyfriend Sue Me for His Big Sacrifice if We Break up?

Posted: 17 Nov 2021 07:00 AM PST

Dear Penny,

I am going to be starting nursing school in January 2022 and have a question about potential future obligations to my boyfriend. He has offered to drive me to all of my school obligations until my license is restored in May 2022. My alternative would be to pay for a ride-share which could cost $2,000 or more per month.

This is obviously very generous and I am deeply appreciative. He will be making large sacrifices of his time to help me with this.

Our relationship is great, and I don't see that changing. We've even talked about getting married, but that would not happen until after nursing school. (We both graduate at almost the same time.)

I know that pre-written agreements in a marriage can be helpful in situations like this in case of separation. I'm trying to be responsible not knowing the future. If he and I do break up, would I have any legal responsibility to compensate him for his help? If so, is there an agreement we can make beforehand to avoid that unlikely scenario?

-Nervous Nursing Student

Dear Nervous,

It's impossible to plan for every nightmare scenario that could occur during a breakup. I think you're on pretty safe turf accepting your boyfriend's generosity, though.

Typically, couples need a written agreement when significant assets or debt is involved. For unmarried couples buying a house together, for example, a legally binding agreement is a must. You'd want a domestic partnership agreement that spells out who would get to stay in the home and how you'd manage any related debts if you broke up. But unless your boyfriend has asked you to sign a contract spelling out his compensation for being your chauffeur, it would be tough for him to sue you for his services in the event that the two of you split.

What I'd worry more about is the toll that this arrangement will take on your relationship. It sounds like you're going to be spending a lot of time in the car together if paying for ride-shares would cost you $2,000 a month. That may sound peachy right now. But it may be a different story after a couple of months, particularly if you're both exhausted from studying.

In deciding whether to accept this offer from your boyfriend, think about what it will cost him not just in terms of money, but also time. If he wouldn't be going that far out of his way, riding along with him seems like a no-brainer. But if he'd be spending a couple hours each day driving you around while trying to complete his own studies, relying on him for 100% of your transportation needs probably won't be a great option.

Fortunately, this doesn't seem like an all-or-nothing decision. You can accept your boyfriend's offer, but also set aside some money so you can give him a break when he needs it.

Instead of budgeting $2,000 a month for ride-sharing, maybe you can set aside several hundred dollars a month. You can use that money to pay for an Uber or stay in a motel that's close to your campus from time to time. Once you start school, you might also want to ask around to see if any classmates live near you. Perhaps they'd be willing to let you hitch a ride in exchange for gas money. Regardless, be sure to throw some gas money your boyfriend's way.

Your boyfriend sounds like a good guy, given his willingness to sacrifice for you. It also sounds like you're appropriately grateful to him. Whenever possible, try to show that gratitude by freeing up his time in other ways. For example, you could cook for him or do extra household chores if you live together.

This situation may be tough, but it's only temporary. But if you communicate clearly and find alternative options so your boyfriend can prioritize his needs when he's short on time, I think you'll be able to make this work.

Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder. Send your tricky money questions to AskPenny@thepennyhoarder.com or chat with her in The Penny Hoarder Community.

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How to Build a Photo Scanning and Digitizing Side Gig

Posted: 17 Nov 2021 05:00 AM PST

As simple as it sounds — and actually is — most people are overwhelmed by the thought of taking hundreds or even thousands of photos and organizing them into searchable, digital files.

Then there are the videos filmed on various versions of clunky cameras over the decades.

Perhaps the most daunting version of unorganized photographic memories are slides. Once the butt of so many jokes about boring dinner parties, now they are covered in dust with no hope of ever seeing the light of a projector again.

Well, anyone armed with a $250 scanner and a computer can make searchable digital files of photos and slides. To turn videos into digital files, it takes the original camera they were filmed with or a VCR, an $87 adapter and a computer.

Here's how to make photo scanning and digitizing your new side hustle.

Five years ago, professional photo curator Sabrina Hughes decided she could make a business out of helping people organize their photos, videos and slides. Her company, PhotoXO, has a compelling slogan: "Show your photos the love they deserve."

Her years as a photographer, plus a graduate degree in art history and experience as a curatorial assistant at the Museum of Fine Arts in St. Petersburg, Fla., combine to make her an astute photo archivist. But all of this expertise and experience is not required.

"There's a certain point when I'm not doing anything you can't figure out on your own," she said. "A college student or really anyone could do this to make extra money."

Hughes offers a self-paced online class called Disaster to Done for $297, which includes lifetime access to course materials. But she's also sharing her tips with The Penny Hoarder.

Get the Right Equipment

Scanner. There are hundreds of scanners out there, but she prefers the Epson v600, which sells for $250.

Video adapter. Hughes uses the Elgato Video Capture for digitizing VHS tapes. It can be bought online for $87.

Storage. "When I first started out, I was giving everything back on hard drives," Hughes said. "I was trying to get away from DVDs, since most computers don't even play those anymore." She then offered flash drives filled with the photos. Though they are also becoming less common, this is still probably the best tool for beginners. Hughes now uploads everything to her website, which offers permanent storage.

Software. Hughes uses Adobe Lightroom ($119), which enables her to label photos so they can be searched and has photo editing functions. Software isn't required to organize unlabeled photos into folders, however.

A stack of old black and white photographs sits on a person's desk.

Develop and Perfect Your Process

The first step to starting your photo scanning business is setting aside a space in your home. It can be as small as a corner of your bedroom or a desktop if an actual office or spare room isn't possible.

Next, create a storage system for clients' photos and video tapes while your work is in progress. Clear boxes that stack are great, but they come with a cost. Cardboard shipping boxes work just as well. Place white adhesive labels on the ends with the name of the client and the date the work started. You can place new labels over these when one project is done and the next client's photos go into the boxes.

Scanning and Organizing Photos

To digitize photos and slides, scan each one with the scanner to upload it to your computer. Make files for certain years or topics such as "1970s beach trips" or "kids' birthday parties." Drag and drop the photos into the appropriate file.

You may have to limit the number of photos to digitize if the client wants to save on time and your fee. If the photos are organized in albums, ask the client to mark which ones to exclude with sticky notes. If they are loose in boxes, suggest you select which ones to use.

"Sometimes it's easier for a third party to make the decisions in narrowing things down," Hughes said. You can pick what you think is the best of the three or four repetitive photos.

To organize and select from loose photos overflowing from shoe boxes or boxes under beds, Hughes hand sorts them into piles based on the clothes people are wearing, the backgrounds and the time of year.

You can offer photo editing if it's something you can handle. Hughes uses a simple process in Adobe Photoshop. "You can also do it as you are scanning them," she said. Adding, that many scanners have color correction options.

Processing Videos

Videos must be played the whole way through on the camera that originally filmed them, then the adapter will transport the movies to a computer. If you don't have the camera, you can play them on a VCR connected to the computer with the adapter.

Because they're filmed using a lower resolution, digitized videos won't look as sharp on a TV, especially if it's high definition. Advise your clients of this ahead of time to avoid unhappy customers.

Scanning and Organizing Photos

"Sometimes it's easier for a third party to make the decisions in narrowing things down," Hughes said. You can pick what you think is the best of the three or four repetitive photos.

Processing Videos

Deciding What to Charge

It's smart to charge by the hour when you start out, and give an estimate of how long the project will take.

Determine ahead of time how many photos you can scan in an hour. If you are sorting and scanning, that may be harder to estimate, but it probably adds another 30 minutes onto each hour of scanning. Say you can scan 40 photos an hour, then it would take you five hours to digitize 200 photos that don't require sorting.

A high schooler or college student might charge $30 to $50 an hour, or approximately $150 to $250 for 200 photos. Allow an extra hour for computer glitches, labeling files and calling the client with questions.

A woman looks off into the distance toward a window with an old photograph on a television screen behind her.

Hughes started out charging by the hour, but found clients were spending so much time "pre-organizing" their photos themselves to save money, it would take them six months or more before they were finally ready for her to start archiving. So she switched to a flat fee of $2,222 for unlimited archiving of slides, photos or videos. To do all three formats, she charges $7,777. She also offers small projects a-la-carte based on the amount of work.

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How to Attract Clients

You might have to offer to digitize photos for one or two friends at no cost first to get an idea of how long the process takes and what you will charge.

Then spread the word on social media. Give an estimated price of how many photos you can do for a certain price. Ask your early clients to share something about how wonderful it feels to finally have photos organized and saved forever.

Digitized photos make a great Mother's Day, Father's Day or Christmas gift. Promote your business online and in emails during these times and throughout the year.

Katherine Snow Smith is a freelance editor and journalist living in Chapel Hill, N.C., and author of Rules for the Southern Rulebreaker: Missteps and Lessons Learned. Reporting from Lindsay Luebbering was used in this report.

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Wednesday, November 17, 2021