Author: Abigail Siebert

The Anatomy of a Mortgage Payment

Trying to understand your mortgage payment can be like trying to decode a secret language. At the very least, you may be wondering what all the lingo means.

 No worries; we can help! Let’s take a look at the different components of your mortgage payment, explain how it’s calculated and offer tips for managing payments effectively.

Principal

The principal of your mortgage is the amount of money you borrow from your lender when buying your home. A portion of each payment goes toward paying down this principal. In the early years of your mortgage, a smaller portion of your payment goes toward the principal while most goes toward interest. As time goes on, though, this balance shifts, and more of your payment goes toward principal.

Interest

Interest is the cost of borrowing money from your lender and is calculated on the outstanding principal balance. It’s typically expressed as an annual percentage rate (APR). The interest rate you get depends on several factors, including your credit score, your down payment amount and current market. There are two main types of interest rates: fixed and variable. A fixed-rate mortgage keeps the same interest rate for the life of the loan, while a variable-rate mortgage can change over time based on market conditions. 

Property taxes

Property taxes are levied by local governments and are based on the assessed value of your property. These taxes fund essential services in your community, like schools, police and fire departments and road maintenance. The amount of property taxes you’ll pay varies widely by location. 

Homeowners insurance

Homeowners insurance protects your property and belongings from damage or loss due to events like fires, storms and theft. Most lenders require borrowers to carry homeowners insurance, so your choice will not be whether to get insurance, but how much coverage to purchase.

Private mortgage insurance 

If your down payment is less than 20% of the home’s purchase price, your lender will likely require you to carry private mortgage insurance (PMI), which protects the lender in case you default on your loan. The cost of PMI varies, but typically ranges from 0.3% to 1.5% of the original loan amount per year. Once you have built up 20% equity in your home, you can usually request to cancel PMI.

Tips for managing mortgage payments

Budget for your payments: Create a budget that includes your mortgage payment and other homeownership costs. 

Refinancing: If interest rates have dropped since you got your mortgage, consider refinancing. Refinancing can lower your interest rate and/or monthly payment. It’s also a way to switch from a variable to a fixed-rate mortgage.

Extra payments: Making extra payments toward your principal can help you pay off your mortgage faster and save on interest paid over the life of the loan. 

Understanding the anatomy of a mortgage payment is essential for managing your finances. Use this guide to learn about the components of your mortgage and how to manage your payments effectively.

How to Protect Yourself from Google Voice Verification Scams

The Google Voice verification scam can result in a lot of inconvenience and possible identity theft. Here’s all you need to know about Google Voice verification scams and how to stay safe. 

How does the scam play out?

It all starts with a scammer contacting a target under the impression of responding to an online ad or inquiry the target has posted. The scammer expresses interest in buying an item the target is selling. To verify the victim’s legitimacy, they’ll claim they need to send a Google Voice verification code. They’ll ask the victim to share this code with them. What they are really doing is using the victim’s code to set up a Google Voice account in the victim’s name. Once they have this account, they’ll use it to carry out additional scams, masking their identity behind this phone number. 

Protect yourself

Follow these tips to protect yourself from falling victim to this scam:

  1. Understand how the scam works

Be aware that no legitimate transaction or interaction requires you to share a verification code sent to your phone by Google. If someone asks for this code, it’s a huge red flag!

  1. Do not share verification codes

Giving verification codes to someone else can grant them access to your personal accounts or allow them to set up new accounts in your name.

  1. Enable two-factor authentication

When possible, enable two-factor authentication (2FA) on your Google account and other sensitive online accounts. This adds an extra layer of security by requiring a second form of verification in addition to your password.

  1. Verify identities carefully

When dealing with online transactions or interactions, verify the identity of the person you are dealing with. Use trusted platforms and be wary of deals that seem too good to be true.

  1. Monitor your accounts

Check for unauthorized logins or any other unusual behavior. If you notice anything suspicious, change your passwords and contact the platform’s support team.

If you’ve been scammed

If you suspect you’ve fallen victim to a Google Voice verification scam, here’s how to mitigate the damage:

  • Reclaim your Google Voice number by following Google’s support instructions. 
  • Report the scam to Google and the platform where the scam originated.
  • Change your Google account password and any other passwords that may have been compromised. 
  • Enable additional security measures, such as security questions or biometric verification, to your Google Voice number account. 

Stay safe!

Political Fundraising Scams

The Better Business Bureau (BBB) is warning of an uptick in political fundraising scams seeking to collect donations allegedly going toward a candidate’s campaign or specific cause.

Here’s all you need to know about political fundraising scams:

How the scams play out

In a political fundraising scam, the victim receives a call from someone claiming to be collecting money for a political candidate or cause. The caller is aggressive and demanding until the victim agrees to make a donation. They will also insist on immediate payment. The victim, not recognizing the scam, willingly donates money — which goes directly into the scammer’s pockets.

In another variation of this scam, the victim is targeted by a bogus online ad or email. After clicking on the ad or embedded link in the email, the victim is directed to donate funds. Here, too, the money goes directly to the scammer.

Red flags

To spot a political fundraising scam, be on the lookout for these red flags:

  • Fundraising email has grammatical errors and spelling mistakes
  • Caller urges voter to make an immediate donation
  • Caller or email insists on payment by specific means, such as wire transfer or prepaid debit card
  • Email is sent from an insecure domain
  • Email is sent from a domain that does not have a legitimate online presence

If you’d like to donate

If you’d like to make a donation to your favored campaign or cause, follow these tips:

  • Donate directly on the candidate or cause’s official website.
  • Never make a donation on a website that has an insecure address.
  • Be cautious of phone solicitations for donations.
  • Research any cause you’d like to donate to by researching FEC.gov or the Center for Responsive Politics.
  • Don’t donate to a cause that does not ask for your citizenship status.
  • When donating funds, it’s best to use a credit card.

If you spot a scam

The FBI urges all citizens to report any election scams to a local FBI field office as soon as possible.

This election season, vote no for scams!

Summer Entertaining on a Budget

Summer is the perfect time to gather with family and friends to enjoy warm weather, but all that hosting can come with extra costs. Fortunately, you can have your party, and your budget, too. Here’s how to host the best gatherings this season without draining your wallet. 

Plan ahead

Start by creating a guest list and deciding on a theme or menu. This will help you stay focused and avoid last-minute impulse buys. 

Keep it simple

Keep your menu simple and focus on a few crowd-pleasing dishes that can be prepared in advance. Of course, you can always go for a barbecue in the summer, and grill your proteins and veggies on the spot. 

Host a potluck

If you want to host another dinner, but you don’t want to cook for it, have a potluck. Divide your menu and have each guest bring one dish along for a varied meal that’s easy and inexpensive for everyone. 

DIY décor

Get creative and make your own decorations using items you already have at home or inexpensive materials from a dollar store. You can use fresh flowers, candles, Mason jars or colorful tablecloths to add a festive touch to your outdoor space.

Choose budget-friendly beverages

Save money by serving budget-friendly beverage options like homemade sangria or signature cocktails. Consider shopping at discount stores or keep it dry and stick to refreshing non-alcoholic beverages. 

Take it outside

There’s no need to book a venue when the weather is gorgeous outside. Take advantage of your outdoor spaces and host your gathering in your backyard or out on your patio. You can also have your party at a local park or scenic waterfront. 

Shop smart

Shop discount stores, warehouse clubs, or dollar stores for affordable party supplies, decorations, and disposable tableware. If you’ll be hosting often this season, consider buying in bulk to save even more. 

Get creative with entertainment

Entertainment doesn’t have to cost a fortune … or anything, actually! Get creative with budget-friendly options like backyard games, DIY photo booths or even just a playlist of your favorite tunes. Encourage guests to bring their own games or sports equipment to add to the fun.

Let those savings sizzle!

Beware Advance Payment Scams!

It’s an awesome deal, but there’s a catch: payment of an advance fee. Before you pay up, though, take a step back and look at the transaction from every possible angle. You might be wrapped in the allure of an advance payment scam. 

Let’s take a look at these scams, how they work and what steps you can take to keep yourself from falling for these ruses. 

How the scams play out

In an advance payment scam, a fraudster asks for an upfront payment from the victim. They promise something valuable in return. Once the payment is made, the promised goods, services or benefits never materialize. Instead, the scammer disappears with the money and is never heard from again. 

Variations of advance payment scams

Advance payment scams can play out in many forms: 

  1. Job offer scams-Scammers post fake job listings offering high-paying positions. They’ll ask for an upfront fee to cover the cost of background checks, training materials or other expenses. Once the fee is paid, the job offer vanishes.
  2. Lottery and prize scams-Victims get notifications claiming they’ve won a big payday or valuable prize. To claim it, they must pay taxes, fees, or shipping costs ahead of time. After paying, they receive nothing.
  3. Loan scams-Individuals seeking loans are asked to pay processing fees, insurance, or collateral fees upfront. The loan is never provided, and the advance payment is lost.
  4. Investment scams-Scammers lure victims with promises of high investment returns. They require an initial investment or fee. After payment is made, the scammer disappears.
  5. Online marketplace scams-Fraudsters advertise high-demand items at attractive prices online. Buyers are asked to pay upfront for the items, which are never delivered.

Red flags

Here are red flags of a potential advance fee scam:

  • Offers that are too good to be true 
  • Requests for upfront payment 
  • Pressure to respond quickly
  • Lack of contact information 
  • Poor grammar and spelling 
  • Requests for untraceable payments  

Protect yourself

Here’s how to protect yourself from advance payment scams:

Before making any payments, research the company or individual offering the deal to confirm legitimacy through official sources. You’ll also want to verify every job offer by contacting the company directly using authenticated contact information. Be wary of surprise wins; if you don’t remember entering a sweepstakes, you probably didn’t win a big prize. Consult with a professional when investing in a new stock and, finally, only make online payments by methods that offer protection and recourse, such as credit cards.  

If you’ve been scammed

If you’ve fallen for an advance fee scam, contact your financial institution or payment provider to request a reversal of the transaction. Next, reach out to the FTC and other law enforcement agencies to let them know about the scam. Share your experience to warn your friends and family about the scam. Finally, keep a close eye on your bank and credit card statements for any unauthorized transactions.

Stay safe!

How to Report Fraud

You’ve been frauded! It’s a disaster, and the longer you wait to act, the worse it will get. 

What do you do now?

It’s a crucial question, and we’ve got answers! Here’s what to do if you’ve fallen victim to fraud: 

Immediate steps

As soon as you discover the fraud, take these steps:

  • Document the fraud. Collect all relevant info, including emails, receipts, account statements and any other documentation that can serve as evidence.
  • Contact your financial institutions. Notify your credit union or bank, credit card companies and any other financial institutions about the fraud. They can freeze your accounts, issue new cards and help prevent further unauthorized transactions.
  • Change passwords. Immediately change passwords for any online accounts that may have been compromised.

Reporting fraud to the authorities

Here are the key organizations to contact:

  1. Federal Trade Commission (FTC). The FTC is the primary agency for reporting fraud in the United States. You can file a complaint online or call 1-877-FTC-HELP (1-877-382-4357).
  2. Local law enforcement. File a report with your local police department. Provide them with all the evidence you have collected. 
  3. Internet Crime Complaint Center (IC3). For online fraud, report to the IC3, a partnership between the FBI and the National White Collar Crime Center. File a complaint here. 
  4. State consumer protection offices. Many states have consumer protection offices that handle fraud complaints. 
  5. Credit reporting agencies. Contact the major credit bureaus (Equifax, Experian and TransUnion) to place a fraud alert on your credit report. 

Specialized reporting for specific types of fraud

Depending on the type of fraud, you may need to report to additional specialized agencies:

  1. Identity Theft: Report identity theft to the FTC at IdentityTheft.gov. 
  2. Securities Fraud: If you’re a victim of investment fraud, report it to the Securities and Exchange Commission (SEC) at SEC.gov.
  3. Tax Fraud: For tax-related identity theft or fraud, contact the Internal Revenue Service (IRS) at IRS.gov or at 1-800-908-4490.
  4. Mail Fraud: If fraud was conducted using the U.S. Postal Service, report it to the U.S. Postal Inspection Service at USPIS.gov.

How to protect yourself from future fraud

Monitor your checking account statements, credit bills and credit reports regularly for sketchy activity. Also, use strong, unique passwords for all of your accounts. Never share personal information with an unverified contact. Finally, keep yourself educated about scams.

Stay safe!

How Can I Save on Energy Costs This Summer?

Q: Summer’s here, and my energy bill is burning right through my budget! How can I save on energy costs?

A: It’s hot out, but you can keep your cool with our energy-saving tips! Follow these hacks to save on energy costs this summer.

Have your HVAC system professionally inspected

First, you’ll want to make sure your home is being cooled efficiently. You can do this yourself, but it may be worth hiring a professional to check your HVAC system for leaks and other problems. 

Use your AC efficiently

Don’t waste any of that cold air! In addition to regular maintenance, ensure you’re using your AC system as efficiently as possible. Avoid placing lamps or large TV screens near your thermostat, clean your air intake vents regularly and keep doors and windows closed when running the AC. 

Get smart

If you haven’t already done so, consider using smart technology to keep your home cool and your costs down. Connecting your thermostat to a mobile device will enable you to control it from a distance and avoid cooling an empty home. You can also use smart technology to set your thermostat on a schedule that suits your family’s needs. 

Get grilling

Your oven and stovetop can heat up much more than your food this summer. Make it a habit to take your cooking outside and keep your home cooler.

Time your chores

Using large appliances, like a washing machine and dishwasher, can add extra heat to your home, especially if you live in a small space. Use these machines after dark, when it’s generally cooler. 

Use appliances efficiently

  • Only wash full loads of laundry. If possible, use cold water. 
  • Use glass pans in the oven when possible since they retain heat better and can shorten cooking time. 
  • Use appropriately sized pots and pans on your burners. 
  • Only run your dishwasher when it’s full. 
  • Unplug small and medium-sized appliances when not in use.

Use these tips to learn how to save on energy costs this season so you can keep your cool, and your budget, too. 

What’s the Difference Between ACH and Wire Transfers?

In 2024, there’s no shortage of ways to electronically transfer funds between accounts. Let’s take a look at two popular methods: automated clearing house (ACH) and wire transfers.

What is ACH?

ACH utilizes a clearing house to transfer funds between accounts. ACH transfers can take several days to complete.

ACH transfers include:

  • Direct deposit for paychecks
  • Direct deposit for government benefits
  • Automated and one-time bill payments
  • International payments
  • P2P payments 
  • B2B payments

What is a wire transfer?

A wire transfer moves funds from one account to another. Wire transfers can be domestic or international and can generally be sent through a bank or credit union. They can also be sent using a wire transfer service, like Western Union or MoneyGram. The individual sending the transfer will have to pay a fee. Once a transfer has been accepted by the receiver, it cannot be reversed.

Wire transfers are commonly used for these transactions:

  • Down payments  
  • Federal tax payments
  • Car purchases

What’s the difference between ACH and wire transfers?

There are several important distinctions between ACH and wire transfers:

1) Speed and timing

ACH transfers are usually scheduled for deposit between one to three business days after the request is sent. Same-day processing is available for a fee, and daily deadlines are generally later in the day or evening.

Wire transfers are typically processed the day they arrive, often in just a few hours. The transfer will need to be initiated before the insitutions’s or service’s established deadline, which is typically 3 p.m., to benefit from same-day processing. Also, international transfers will take longer to clear, up to 10 days. 

2) Cost and fees

ACH transfers made from your own bank or credit union will usually come at no cost. Sometimes, a nominal fee will be charged. However, if you attempt to make an ACH transfer from an account having insufficient funds, you may be charged an overdraft fee of up to $35 for each attempt made. 

Wire transfers, on the other hand, have high fees attached to them. Domestic wire transfers typically cost between $25-$30, international wire transfers can cost up to $50, and internal wire transfers (being on the receiving end of a wire transfer) can cost you $15.

3) Limits

ACH transfers are typically limited by day, month, account and/or method of transfer. You may not be able to send more than a few thousand dollars via ACH each month. 

Wire transfers have much higher limits, and you can usually send hundreds of thousands of dollars through a transfer. You may be able to send an unlimited amount by visiting your bank or credit union, or by seeking their assistance over the phone. 

4) Security

ACH transfers can be hijacked by scammers to divert the funds to their own accounts. Be sure to track any ACH transfers you make and request a reversal of funds if you notice any suspicious activity. 

On the other side of the table, wire transfers are notoriously favored by scammers for their irreversibility and lack of traceable evidence. Once a wire transfer has been accepted, there’s usually no way to reclaim the lost funds. It’s also difficult to identify the recipient of the transfer once it has been made. 

It’s crucial to verify the identity and account information of a wire transfer recipient before agreeing to send funds. Never wire money to an unverified contact or new retailer. 

Use this guide to learn how ACH and wire transfers work so you can make an informed decision about transferring your funds. 

Cash, Credit or Debit–How Should I Pay?

Q: When paying for my everyday and occasional purchases, should I be using cash, credit or debit?

A: Some purchases should be paid for with cash, some with a credit card and others with a debit card. Let’s take a closer look at each method and when they should be used.

When should I use cash?

Some retailers offer discounts for paying in cash, making it the wise go-to. Also, if you have a tough time sticking to your budget when shopping, it can be helpful to only take along the cash you plan to use. Finally, some small businesses only accept cash payments. 

On the flip side, cash offers no purchase protection and should not be used for large purchases. Also, cash leaves no paper trail, so it may be difficult to track expenses. Finally, cash always carries the risk of being lost or stolen. 

When should I use my credit card?

Credit cards are the double-edged sword of personal finance. Credit card debt is a leading cause of consumer debt. However, owning credit cards and using them responsibly is a crucial part of your credit rating. 

Credit cards also offer two primary advantages: rewards and purchase protection. Many credit cards can earn rewards as you spend on them, so it earns you something for your use. The purchase protection a credit card offers also makes it the ideal choice for paying for large purchases. In addition, using a credit card and making on-time payments can help boost your credit score while also making expense tracking easy. 

Ideally, credit cards should only be used to cover fixed or steady payments and for purchases you know you can pay in full when the bill is due. 

When should I use my debit card?

Debit cards allow you to track your spending and help you stay within budget since you can generally only spend what you have. In addition, if your card is lost or stolen, you can cancel it and/or close the connected account. 

Debit cards can be a great choice for everyday purchases of any kind. However, since they usually don’t offer rewards or the same level of purchase protection as credit cards, they are not the best choice for large purchases. 

Use this guide to help you choose the right payment method in every situation. 

What Kind of Home Improvement Projects Will Add Value to My Home?

Q: I’m doing work on my house soon, so it has me wondering how I can increase my home’s value at the same time. What kind of home improvements can add value to my home?

A: Renovating your home with an eye toward its future value can help you recoup the costs of the project – and more. Here are five home improvement projects that can boost your home’s value when it comes time to sell.

Kitchen remodel

The biggest return on investment in home projects is the kitchen. This is where realtors and interested buyers usually spend the most time while checking out a new home. And the kitchen is the hub of many households. 

The most recent Cost vs. Value Report shows that a kitchen remodel involving cosmetic changes like new floors, cabinet fronts and appliances, can net an 85.7% return on investment (ROI). For example, a $26,790 kitchen remodel can add $22,963 to a home sale. If you do go with a kitchen remodel, keep costs down. A major remodel, such as replacing cabinets, adding custom lighting and expensive appliances will likely not return as much as a more modest renovation.

Bathroom remake

Next up, the bathroom. Potential buyers pay these areas extra attention. Updated walls, floors and fixtures can really make your home more marketable. Plus, you can charge more for your home when the bathrooms have been remodeled. According to the RenoFi Renovation Index, a mid-range bathroom remodel has an ROI of 64% while an upscale remodel can net a 56% return. 

Upgrade your insulation

Improving your home’s insulation generally pays for itself when you sell your home, according to the Remodeling Impact Report. However, in addition to breaking even on the cost of the project, your home will feel warmer in winter and lower your energy bills.

Basement conversion

Converting a basement into a livable area can be another fabulous way to increase the value of your home.  According to the National Association of Realtors, a basement conversion can cost $57,500 on average while bumping your home value up by $49,250 for an 86% ROI. 

Replace your roof

A roof replacement is one of the most expensive homeowner jobs, so a new roof can significantly boost your home’s resale value. According to the 2022 Remodeling Impact Report, a new roof at $12,000 will easily pay for itself. However, a larger, metal roof, at $52,436, will only boost a home’s value by $28,196, netting you a 54.8% ROI.

What determines if a renovation will add value to your home?

In addition to the type of remodeling job, several other factors can determine if home improvements will increase the value of your home, including: 

  • Current real estate market
  • Home décor trends
  • Quality of the work
  • Materials used 
  • Buyer preferences

Are there any home renovations that can decrease the value of my home?

Believe it or not, yes, some remodeling projects can lower home value. This includes renovations that are highly personalized, converting bedrooms into closets and remodels that require ongoing maintenance.

Are you looking to fund a home improvement project through a HELOC? Call, click or stop by today to get started. Our favorable rates, generous eligibility requirements and easy terms, make a HELOC a great choice. 

Spring has Sprung Scams: Facebook Marketplace

With Spring in the air, a lot of people have started their Spring Cleaning, selling unused, unwanted items on Facebook Marketplace. Facebook Marketplace has become a hotspot for scammers. Here are some things to look out for:

Prices that are too good to be true

One red flag to watch out for is if a seller is offering an item at a price that seems too good to be true. Scammers often lure in buyers with significantly low prices to attract attention. In the end, the buyer never receives the item. Another warning sign is if the seller insists on using unconventional payment methods or requests personal information such as your bank details or social security number. Never share your personal information and report any suspicious behavior.

Rental Scams

A scam that has become increasingly popular is rental scams. These scams show fake listings for a number of different items. Such as, boats, bikes, equipment, properties, etc. In this scenario, the scammer will ask for payment upfront or a deposit to secure their rental. The victim then ends up with no rental and lost money. Protect yourself by first seeing the rental in person and paying after, use reputable rental platforms instead of Facebook, be cautious of below-market pricing, and avoid wire transfers.

Return Scams

In this scam the buyer states that they want to return the item that they purchased, they will ask for a refund. The scammer will then either not return the item or return a similar item that is broken or something totally different than the original item. The fraudster will send fake tracking information to show “proof” that they are returning the item. To avoid this scam, sellers should wait for the returned item and check that it is in good condition before issuing any sort of refund.

Two-Factor Authentication Codes

Never share a two-factor authentication code! If someone asks for this code, there’s a high chance that you are speaking to a scammer. These codes are ONLY meant for you. Phishers will ask you to send them this code to verify that you are who you say you are. In reality, they are really going to use this code to log in to one of your accounts. You are at risk of being hacked if you share a two-factor authentication code.

Trust your Instincts

To stay safe while using Facebook Marketplace, it’s recommended to meet sellers in person, in a public place, and inspect the item before making any payment. Share your meeting location/plan with a friend or family member and avoid carrying large amounts of cash with you. Additionally, trust your instincts – if something feels off or suspicious, it’s better to walk away from the deal. By staying informed and alert, you can enjoy the benefits of Facebook Marketplace without falling prey to scams.

https://www.aarp.org/money/scams-fraud/info-2024/facebook-marketplace.html

https://www.comparitech.com/identity-theft-protection/top-facebook-marketplace-scams/

https://www.facebook.com/help/2374002556073992

Emergency Funds – Not Just For Adults

Divvying up your kid’s allowance into different jars, each with a specific label and purpose, has become pretty standard. Your kids probably have one jar for savings, one for spending and maybe another for giving.

What most parents and kids omit, though, is one more jar for emergencies. Yes, emergencies, even for kids. Granted, they won’t be shelling out thousands of dollars for a roof repair or a medical crisis like their parents might, but emergencies come in all shapes and sizes, and to all-sized people.

No one needs convincing that having funds for an unexpected expense is crucial to financial security. In fact, building an emergency fund is the first of Dave Ramsey’s famous seven baby steps for getting out of debt. It’s definitely something you want to build into your kids’ psyche. So why not start now?

Some examples of small and not-so-small emergencies for children are:

  • The pair of new sneakers left in the locker room after PE, now gone forever
  • The shattered car window from an overeager, but poorly aimed, baseball
  • The huge data plan overage charge
  • The misplaced spending money for an afternoon at the mall

So yes, kids have emergencies. Helping them set up a fund to pay for some of these mini crises instead of bailing them out each time will teach them to be prepared.

Here’s how to do it:

  • Help your kid add an extra jar to their existing set and mark it for emergencies.
  • Allocate a portion of your kid’s weekly allowance or chore payment to the emergency fund.
  • With your child, create a goal for the new jar. For a younger child, $25 should be enough, with the number steadily growing to about $100 for preteens.
  • Once the jar has hit its target, revert back to the original division of money among the other jars.

The next time your child has a financial emergency, have them pay for all or part of it. It’s okay to share the costs for larger emergencies, or even for smaller ones. Your child will still learn responsibility by coughing up some of the funds on their own.

These should be situations due to negligence, irresponsible behavior or simple forgetfulness on the part of your child.

When the fund is depleted for an emergency, be sure to encourage them to replenish it by going back to step two.

Remember, it’s baby steps like these that will prevent your child from having to crawl their way out of debt later on in life.

Don’t Get Caught in an Emergency Scam!

Your grandson’s calling – and he’s in bigtime trouble! He’s been kidnapped and being held for ransom, so he needs you to wire over money ASAP.

Before you wire over anything, stop! You’re probably being scammed. Here’s what you need to know about emergency scams and how to protect yourself. 

How the scams play out

In an emergency scam, a target gets a phone call, email or text message pretending to be a close relative. The caller will claim to have been caught in hot water, which can be anything: a kidnapping, an issue with the police, a car accident or getting stuck overseas with no money. 

The caller will then ask the target to send over money pronto, using a wire transfer or prepaid debit card. While emergency scams are commonly played out with a grandparent of an alleged caller, they can also target the parents, uncles, aunts, and siblings of the “caller.”

Unfortunately, if the target follows the caller’s directions by sending over money, these funds will go into the scammer’s pockets. 

Red flags

Here are some signs that can alert you to the possibility of an emergency scam:

  • Your “relative” calls to tell you about an emergency situation they’re in, but they ask you not share this information with family members or anyone else.
  • You’re urged to act quickly.
  • You’re asked to send money by a wire transfer, prepaid gift card or cryptocurrency. 
  • You’re asked to share sensitive information over the phone.

Protect yourself

Follow these tips to help keep yourself safe from emergency scams:

  • If a friend or family member calls you with an urgent request for funds, hang up and call them directly from a number they’ll recognize. 
  • Never wire money or send a prepaid gift card to an unverified contact. 
  • Ask an alleged caller some questions about your shared memories to determine if they actually are who they claim to be.
  • Always be cautious and avoid acting rashly regardless of the situation.
  • Don’t share your personal info with an unknown contact. 
  • Don’t be afraid to share details of a phone call with other family members and friends.

Stay safe!

Building Financial Resilience: Strategies for Overcoming Financial Stress

In today’s fast-paced world, we face many financial challenges as we juggle a lot of responsibilities. The constant pressure to earn enough for covering day-to-day expenses while remembering to put away money for your financial goals never lets up. To make it even more difficult, life only gets more expensive as time goes on. However, despite the inherent hurdles, overcoming financial stress and living a financially fit life is very doable. Let’s take a look at key strategies for building financial resilience. 

Manage debt

Debt can be a big source of financial stress. To effectively manage debt and gain control of your finances, take a proactive approach:

  • Assess your debts and choose which to prioritize.
  • Create a repayment plan, like the snowball or avalanche method. 
  • Maximize debt payment until you’ve paid them all off.

Build an emergency fund

Building an emergency fund is important for creating financial resilience. Here’s how to do it:

  • Start small. Gradually increase the amount you regularly save over time. 
  • Automate your savings. Make saving automatic by setting up regular transfers from your checking account to a separate savings account. 
  • Aim for three to six months’ worth of expenses.  While this can take time, make this amount your ultimate goal so you can weather any surprise and keep your finances intact.

Set financial goals

Setting clear financial goals will empower you to take control of your financial well-being and build your financial resilience. Follow these steps to successfully set financial goals: 

  • Identify your short-term and long-term goals. 
  • Make your goals specific and measurable. 
  • Break goals into actionable steps.

Practice self-care

Taking care of yourself is a vital part of reducing financial stress. Find time to pursue your interests and to take frequent breaks from the daily grind. And it doesn’t have to put you into debt, either. You can go for a walk alongside a beautiful lakefront, learn a new language, visit free galleries showcasing your favorite art or develop a hobby by watching free DIY videos.

Managing money responsibly in current times is super-challenging, but financial resilience is within reach. Use the tips outlined here to achieve and maintain financial resilience. 

Practical Budgeting Made Easy

With the right tools and information, building a budget can be quick and easy. Here’s how to create a simple and practical budget for the time-strapped consumer. 

Review your income and expenses

Most budgeting plans recommend tracking income and expenses for three months. If you’re pressed for time, though, you can choose to look at one month and review your spending and income throughout this time. Review your checking account details and credit card statements to see where your money went and what funds came in. 

Compare income and expenses

Hold up your two numbers from the previous step and see how they compare. If your income outweighs your expenses, you’re doing great! If it falls short, you’ll need to trim your expenses in the next step or look for ways to boost your income. If the numbers balance each other out, it’s still a good idea to trim expenses to leave some budget wiggle room.

Assign a dollar amount to every expense category

Next, review the ways you spend your money and assign a dollar amount to each category. Include fixed and changing expenses as well as savings contributions.

If you’re pressed for time, you can make your categories more broad. For example, instead of setting a separate number for groceries, work lunches and dining out, you can set a larger number for all monthly food expenses.

If your income does not cover your expenses or just barely covers them, look for ways to trim the fat however possible. 

Jot down your dollar allocation on paper, or create a digital version of your budget and upload it to your personal devices for easy access.

Use technology

Harness the power of technology to help you track and manage your expenses well. A budgeting app can make tracking your monthly spending super-easy. You can upload your budget to the app and track expenses throughout the month. The app will let you know how much you’ve spent in each category and warn you when you’re approaching the limit. 

Live with your budget

You’re ready to live with a budget! Remember to keep your monthly expense categories in mind as you spend throughout the month. 

If you find it too hard to keep track of your spending throughout the month, the money envelope system can make it easier. Simply withdraw cash amounts for each non-discretionary expense category in your budget at the start of the month and only use the money in these envelopes to pay for these costs throughout the month.

Review and adjust

Your budget is up and running! Review your spending plan regularly to see if it’s still working for you and adjust as needed.

Budgeting doesn’t have to take a lot of your time or be overly complicated. Use this guide to learn how to create a practical, easy budget that works. 

All You Need to Know About Tech Support Scams

There’s little in life that’s more frustrating than a computer that won’t do its job. But sometimes, like your own private miracle, a message appears on your screen. It says: “Technical difficulties? Click here for assistance.” 

Unfortunately, if you follow these instructions, you’ll probably fall directly into a scammer’s trap. Here’s what you need to know about technical support scams and how to prevent yourself from falling victim.

How the scams play out

In a tech support scam, a target may have an unresponsive computer with a message, get an email, text message, pop-up or even a phone call allegedly from a computer technician who works for a well-known company. The “rep” will offer to help with any computer issues they may (or may not) have. They’ll direct the target to call a specific number or click on an embedded link, which will connect them to the “rep” who can supposedly help them. Once connected, the scammer will ask the victim to pay for the services before they’re rendered using a wire, prepaid gift card or cryptocurrency. Once the payment is made, the scammer disappears.

Red flags of technical support scams

  • You get an unsolicited message or phone call offering tech support for an issue you aren’t having.
  • Your computer may be unresponsive playing an alert audio with a phone number to call.
  • You’re required to pay for tech support by wire transfer, prepaid gift card or crypto.
  • A pop-up message appears claiming there’s a security issue with your computer and directing you to call a specific number. 

What you need to know about tech support

  • Legitimate tech companies won’t reach out to you by phone, email or text message to let you know your computer is having issues. 
  • Security pop-up warnings from authentic companies won’t ask you to call a number or click on a link. 
  • Legitimate companies won’t demand that you pay for a service by wire transfer, prepaid gift card or crypto. 
  • Logos are easily spoofed and should never serve as proof of a message’s true origin.

Protect yourself

Don’t fall for a tech support scam! 

First, if you run into technical difficulties with your computer, don’t wait for a rep to contact you to offer assistance. Instead, directly reach out to a trusted company.

Also, if you believe there may be a problem with your computer, update its security software and run a scan to identify any potential problems.

Finally, never provide an unverified contact with access to your device or credit card information.

If you’ve been targeted

If you believe you’ve been targeted by a tech support scam, here’s how to mitigate the damage. 

If you’ve given a scammer remote access to your computer, update your computer’s security software, then run a scan and delete anything that’s flagged as a problem. If you’ve shared your login credentials with a scammer, change all your passwords.

If you’ve provided any credit card or banking information, contact the institution and relay the situation.

Report the scam to the FTC. 

Stay safe!

How to Avoid Romance Scams this Valentine’s Day

Don’t be the next victim of a romance scam! Here’s all you need to know:

How the scam plays out

In a romance ruse, a scammer will create a bogus online profile and attempt to connect to singles on dating apps and websites, as well as through social media platforms. After a connection is formed, the scammer will work to build up the relationship with the victim, calling and texting often. Once the scammer has gained the victim’s trust, the scammer will spin a sorry story and ask the victim for money.

The scammer may explain that they cannot meet in person because they are currently living or traveling outside the United States. They’ll claim to be a doctor working for an international organization, a blue-collar worker in the middle of a construction project or to be part of the military and currently serving overseas. They may ask for money to help cover travel expenses, pay for medical treatment, cover customs fees at the airport or to pay for a visa or other official travel documents.

The scammer will ask for payment via wire transfer or prepaid debit card. Once they’ve received the funds, they will disappear. Alternatively, the scammer will ask their “date” to share personal financial information and then go on to empty the victim’s accounts.

How to spot a romance scam

If you’re in the market for a new date and you’re hoping to meet someone online, look out for these red flags:

Profile is too good to be true. If a single’s profile has unrealistic credentials, including a magazine-worthy photo, you’re likely looking at a scam.
Single rushes into the relationship. If the contact comes on too strong, too fast, it may be a scam.

Single asks you for money. Don’t believe a money-starved story of someone you just met online, especially if they start asking you to help them out.

How to play it safe online

Avoid falling victim to romance scams and similar ruses by following basic online safety rules.

First, never share personal details online with anyone whose identity you cannot verify. This includes all financial information, credit card details and personal information that can be used to unlock a password on any of your accounts.

Second, only visit secure sites and keep all the settings on your social media pages private. Never engage in conversation with a stranger who reaches out to you on a platform you’ve just begun using, or who sends you personal texts or emails you without any prior communication.

It’s equally important never to send money to anyone online.

If you suspect a romance scam

If you believe you’ve been targeted by a romance scam, take these steps to avoid further damage:

Research the name on the profile to see if the details check out. You can also use an online background checking tool, such as BeenVerified or TruthFinder, to verify the credibility of the profile.

Do a reverse-image search of the profile picture to see if it’s a stock photo or an image that was plucked off the internet. You can also ask the contact to share a current photo of themselves.

If your research confirms your suspicions, stop all communication with the scammer immediately. Block the scammer’s number and flag their emails as spam. If you’ve already paid a romance scammer with a prepaid gift card, call the company that issued the card to ask them to refund your money.

Report the scam to the FTC. It’s also a good idea to alert the website or app that the scammer is using. You may also consider warning your friends about the scam.

Follow the tips outlined above to keep your love life scam-free.

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