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Don’t Get Spooked by One of these Halloween Scams!

That cackling witch might send your heart fluttering, but Halloween scams are even spookier! Here’s what to know about them:

1. The Joker

Scammers target people with messages promising loads of money for little effort. Just send a bit of money to a digital address using a money transfer app, and your money will double, triple or more. Unfortunately, the joke’s on you.

Spot a money-flipping scam through the amateur writing and the promises of unreal rewards. Also, you know what they say about anything that sounds too good to be true … it probably is. 

2. Night of the Living Dead

In the deceased identity theft scam, scammers steal the identity of someone who is no longer living. They may empty the decedent’s accounts, use their credit history as their own, and use their Social Security number.

Protect a late loved one’s identity by locking their social media accounts, credit report, and Social Security number. Keep an eye on their accounts until their assets have been lawfully divided. 

3. Trick or Treat

You found the perfect costume online – and for a bargain price! You complete your order and wait for the package to arrive. And wait … and then you realize you’ve been tricked. 

In a variation of the online order scam, the package arrives but looks nothing like it did online. You try to find a customer service representative, but they’ve apparently vanished!

Don’t get tricked! Only order from reputable sites that display complete contact information for the company. Ignore offers that scream “Hot Deal! Act Now!” Shop with caution so you’ll only walk away with treats. 

4. Hitman

There’s a hitman at your door – and no, this is no disguise! 

In the hitman scam, scammers pretend to be assassins hired to take out a target. They’ll send extortion emails and messages, promising to spare the target’s life for just a few thousand dollars. Yikes!

Don’t get scammed! If you receive an extortion message, contact local law enforcement. Never share money with an unverified contact. Keep your money and your life safe.

Have a happy and safe Halloween!

Beware Cryptocurrency Scams

Cryptocurrency is one of the hottest investments on the market. It’s also a popular ruse topic for scammers. Here’s what you need to know about cryptocurrency scams. 

How the scams play out 

There are several ways scammers are using cryptocurrency to con people out of their money. 

  • Blackmail. Emails are sent to targets, falsely claiming to have compromising photos, videos, or embarrassing info about them. The contact threatens to go public unless the victim pays up — in cryptocurrency. 
  • Social media. A target receives a social media message appearing to be from a friend, asking for cryptocurrency to help them out of a bind. 
  • Giveaways. These “giveaways” claim to be sponsored by celebrities or big-name cryptocurrency investors. They promise exponential returns for small investments in crypto, or for simply sharing personal info. 
  • Unrealistic Investment Opportunities. Some scammers make offers to invest in a nonexistent crypto mining operation. This is just a way for them to take your money!
  • Romance. Scammers convince victims they have met a legitimate love interest who soon starts talking about fabulous cryptocurrency opportunities with incredible returns. The victim acts upon this advice, and, sadly, loses their money. 

In each of these scams, the victim has no way of recovering the cryptocurrency they shared once an “investment” has been made. 

How to spot a cryptocurrency scam

Look out for these red flags to help avoid cryptocurrency scams: 

  • You’re promised big payouts with guaranteed returns on a small investment in cryptocurrency. 
  • A celebrity or famed cryptocurrency investor is sponsoring a cryptocurrency giveaway.
  • A friend contacts you on social media, claiming they’re caught up in a bind and need quick help by cryptocurrency. 
  • You’re promised free money in cryptocurrency in exchange for sharing some personal information.
  • A caller, new love interest, or organization insists on payment by cryptocurrency.

Never share personal information or money with an unverified contact. Also, if you’re looking to invest in cryptocurrency, look up secure investment sites like Robinhood and Coinbase on your own.

If you’ve been targeted

If you believe you’ve been targeted by a cryptocurrency scam, report it to the FTC. If the scam was pulled off on social media, also let the platform know so they can take appropriate action. 

Proceed with caution to keep your money and your information safe. 

How do I Raise my Kids to be Financially Independent Adults?

Q: How do I help my kids become financially independent grown-ups?

A: Teaching your kids how to be financially independent will help smooth the transition into adulthood. It will also give them what they need to stay financially stable throughout life.

Here are some tips for raising kids to be financially independent adults.

Start with basic budgeting

Introduce your children to the concept of earning money and spending mindfully when they’re young, and build upon that as they grow up. Preteens can watch you work on an actual budget, and teens can even assist you in creating a budget for a large expense, like a family vacation. You can also help kids create a budget for how they plan to spend their own money.

Split the costs of “must-have” items

If your children are like most kids, they’re asking you for trending items they claim they must have; from a pair of designer jeans to the latest fad toy they insist everyone else already has.

A great compromise is to have your child pay half the cost of expensive trending items. They’ll likely quickly see that a “must-have” really isn’t when you’re footing half the bill.

Teach them about credit cards

If your child sees you using a credit or debit card often, teach them what’s behind that card. Show them your credit card bill when it arrives and talk about how you need to pay for all those expenses during the month, plus the possible interest. Teach them about debit cards, too, explaining how money is withdrawn from your checking account each time you swipe the card. You can also give older kids a quick rundown on credit scores, how they work and why they’re so important.

Talk openly about what they can expect in terms of support for the future

When your child is mature enough to talk about the future, discuss how much financial support you plan to offer while they attend college, immediately after graduation and into their adult years. Ask about their plans as well, paying attention to when they anticipate being financially independent.

You can bring up the topic of career paths, too. Help your child determine a basic budget for the lifestyle they plan to lead and assist them in narrowing down their career choices until they have just a few that will support their future life. Talk about student loans, too, and explain how crippling debt can be.

If you haven’t already, consider opening a Youth Savings Account for your child at High Point Federal Credit Union. This way they can get hands on experience with a financial account and understand the importance of putting money away. If they get an allowance, or are gifted money at some point, you can encourage them to put a certain percentage in their account. Stop by one of our branch locations, contact us,  or call 800.854.6052 to discuss opening a Youth Savings Account.

Use the tips outlined above to help raise your child to be a financially independent adult.

6 Steps to Crushing Debt

Getting rid of high debt takes hard work and willpower, but it’s doable. Here’s six steps to help you start crushing debt today.

Step 1: Choose your debt-crushing method

There are two approaches toward getting rid of debt:

  • The snowball method involves paying off your debt with the smallest balance first and then moving to the next-smallest, until all debts have been paid off.
  • The avalanche method involves getting rid of the debt with the highest interest rate first and then moving on to the debt with the second-highest rate until all debts are paid off.

Each method has its advantages, with the snowball method placing a heavier emphasis on achieving results at a faster pace, and the avalanche method focusing more on actual savings to the borrower money in overall interest paid. Choose whichever method appeals to you more.

Step 2: Maximize your payments

Credit card companies are out to make money, and they do this by making it easy to pay just the minimum payment each month. Beat them at their game by maximizing your monthly payments. Free up some cash each month by trimming your spending in one budget category or consider freelancing for hire and channel those funds toward the first debt on your list. Don’t forget to continue making minimum payments toward your other debts each month!

Step 3: Consider a debt consolidation loan

A personal loan from High Point Federal Credit Union can provide you with the funds you need to pay off your credit card bills and leave you with a single, low-interest payment to make each month. Or, you can transfer your credit card balances to a single card having a low-interest or no-interest introductory period.

Step 4: Build an emergency fund

As you work toward pulling yourself out of debt, it’s important to take preventative measures to ensure it won’t happen again. You can do this by building an emergency fund. Start small, squirrelling away whatever you can in a special savings account and adding the occasional windfall to beef up your fund.

Step 5: Reframe your money mindset

What got you into this mess? Are you consistently spending above your means? Is there a way you can boost your salary or significantly cut down on expenses? Lifestyle changes won’t be easy, but living debt-free makes it all worthwhile.

Step 6: Put away the plastic

Credit cards are an important component of financial health, but when you’re working to free yourself from debt, it’s best to keep your cards out of sight and out of mind. Learning to pay your way with cash and debit cards will also force you to be a more mindful spender.

Best of luck on your journey toward financial freedom!

Safe Back-to-School Shopping on a Budget

This year’s back-to-school shopping season requires shoppers to stick to their budgets without exposing themselves, or their kids, to the coronavirus. Here’s how to shop for school safely without breaking your budget.

Set a budget

Look through your kids’ school supply lists, jot down any other necessities you need to purchase for them now, and set a reasonable budget you can stick to. If you dare, assign a dollar amount to each category.

Order online

If you’re trying to avoid crowded stores, your best bet is to shop online. You can find everything your child needs for school on sites like Amazon, Target.com, and Walmart.com. Most big brands offer quick and cost-free delivery when you spend a minimum amount.

Shop the sales

Retailers tend to place different back-to-school items on sale each weekend throughout the summer, and if you’re a careful shopper you can take advantage of them all. Check out the sites of major retailers, or flip through the sale flyers, to find the best bargains leading up to the start of school.

Pair up with a friend

Pair up with another parent and split the supply list between the two of you, with each parent buying items for the kids in both families. This way, one of you can run across town to the store with the crazy deals on crayons while the other picks out binders at the store selling them at the lowest price. As a bonus, you’ll be limiting your exposure to the virus by shopping in fewer stores.

Avoid the crowds

Time all in-person shopping for hours when stores tend to have smaller crowds. Consider an early-morning run or an evening shopping spree instead of an afternoon of hitting the shops.

Don’t forget the masks

The CDC continues to recommend face coverings for all students in K-12 schools. While you may already have a sizable collection of masks at home, consider purchasing some new masks for your child before school begins. After a summer at home, getting used to wearing a mask for hours at a time again will be challenging, and some new, breathable masks will make it easier for your child to adjust.

Follow the tips outlined above for a safe back-to-school shopping season that doesn’t break your budget.

Why You Need to Be Financially Fit

You give your abs a daily workout, but are you neglecting those money muscles? Here’s why being financially fit is super-important and how you can overcome common barriers to financial wellness.

Financial wellness: a ripple effect

Managing money responsibly will affect many aspects of your life:

  • According to a recent study by AARP, financial problems are the second leading cause of U.S. divorces.
  • Mental health. Money stress can severely affect your mental health, causing depression, restlessness, anxiety and more.
  • Physical health. Stressing over finances can directly impact your physical health, leading to recurring symptoms like headaches, fatigue, insomnia, high blood pressure and an increased risk of heart disease and stroke.
  • Work life. Money worries can make it difficult to focus at work, which can also bring down productivity levels and hamper career growth.

What are the leading causes of money stress?

According to a survey by Credit Wise®, 73% of Americans rank money issues as the top stressor in their lives. Here are the top causes for financial stress:

Barriers to financial wellness and how to overcome them

Unfortunately, there can be barriers that make it difficult to get and keep financial wellness. First, because it hasn’t been taught in school until recently, many people lack basic financial knowledge necessary to manage money responsibly. Second, many mistakenly believe that budgeting and saving are time-consuming and tedious. Finally, some consumers have fallen so deeply into debt they’ve lost hope of ever pulling themselves out.

Here are simple steps you can take to get financially fit:

  • Get educated. Check out financial literacy blogs, personal finance books, podcasts or online classes to learn about money.
  • Have the money talk with your partner. It’s important to be on the same financial page as your partner. Talk openly and honestly, being careful not to be judgmental, and discuss your individual and shared money goals. Then, come up with a plan to reach them together.
  • Pay all bills on time. If you can’t take aggressive steps toward getting out of debt just yet, be sure you’re making at least the minimum payment on each credit card bill.
  • Create a budget. Giving every dollar a destination makes it easier to spend mindfully and cut down on extraneous expenses.
  • Start saving. Every dollar counts, and once you get the ball rolling, you’ll be motivated to pack on the savings until they really grow.

Let’s get those money muscles into shape! Follow the tips outlined above to stay financially fit at all times.

What to Buy and What to Skip in August

Q: I’d love to get some great bargains as summer winds down. Which products go on sale in August and what should be pushed off for now?

A: The tail end of summer brings with it some fantastic finds, but some marked-up products, too. Here’s what to buy and what to skip in August.

Buy: Patio furniture

Pick up a sweet deal on patio furniture at the end of the season. While giving your patio a facelift, you’ll also find grills, outdoor decor and similar items on sale in August.

Skip: Major household appliances and mattresses

If you’re in the market for a major household purchase, you’re best off waiting until September. Retailers tend to slash prices on these items by 30% or more during Labor Day weekend sales.

Buy: Swimwear

Stores and online retailers need to clear their summer stock to make room for the autumn and winter line, which gives you the perfect chance to snag a super swimsuit deal! Stash your treasures for next year’s beach season or keep them for a winter getaway to warmer climates.

Skip: iPhones

If you’re looking to update your iPhone, you’re best off waiting a month or two. The new iPhone 13 is expected to be released in mid-September, and older models typically see a price cut when new models hit the market.

Buy: School supplies and kids’ clothing

August is already deep into the back-to-school shopping season, when school supplies and kids’ clothing tend to see generous markdowns. Stock up on supplies to last all year and get your kids outfitted for the coming season at rock-bottom prices.

Skip: TVs

Don’t run out and buy a new TV just yet. If you need a new flat screen, you’re best off waiting for Black Friday to get the best deal.

Buy: Office supplies and furniture

Back-to-school sales means you can also cash in on office supplies and furniture. Restock your home office with basic supplies, upgrade your office chair or spring for a new desk at bargain prices.

Skip: Fall clothing

Fall apparel will be just hitting the stores in August, so you likely won’t be seeing steep discounts on fall wear until October.

Beware Back to School Scams

Whether you’re a college student prepping for the fall semester, a high school student getting ready for a new school year or the parent of a student of any age, beware of these trending back-to-school scams!

The student tax scam

In this scam, a crook posing as the IRS calls a college-bound student claiming they didn’t pay the student tax. If it is not paid up and pronto, the “agent” says, the student will not be allowed to attend school. They may even threaten imprisonment.

Don’t get scammed! First, know that the “student tax” doesn’t exist. Second, the IRS will never initiate contact with a taxpayer through a phone call. Finally, the IRS will never demand payment through a prepaid debit card or wire transfer, which is a common scammer ploy.

Scholarship scams

The scholarship scam cons students and parents into paying money for government student loans or financial aid, or by promising a scholarship in exchange for a fee. Follow these rules to stay safe:

  • Never pay to apply for a government student loan or financial aid.
  • There’s no way to guarantee a scholarship or grant. If a company promises to get you approved for either one, it’s a scam.
  • There is generally no fee necessary to receive a scholarship.

School supply giveaways and freebies

Back-to-school shopping can cost a bundle. Messages promising a free back-to-school shopping spree can be welcomed if they’re legit. Unfortunately, they rarely are.

Back-to-school giveaway scams ask the victim to visit a website to provide their email address for claiming their prize. The victim is then rewarded with an endless stream of emails, texts, robocalls and more from the company that now has their information, with no giveaway in sight. In some cases, the scammer may demand a “processing fee” before the victim can claim their prize.

Protecting yourself from a giveaway scam is easy by remembering that, if it sounds too good to be true, it probably is. Also, legitimate contests will rarely select a winner out of thin air; you’ll have to enter it first by providing your email address. They are also not likely to make you give up lots of info before claiming your prize. Finally, there is generally no payment necessary for claiming an authentic prize.

Follow the tips outlined above for this back to school season and stay safe!

How to Save on Wedding Costs

Did you know the average U.S. wedding costs $28,000*? That’s a lot of money to spend on one event!

But it doesn’t have to be this way. Here’s how you can have the wedding of your desire and your budget, too.

Choose your top priority

Most couples-to-be have some fantastical dreams about their wedding day. It might be a huge wall of flowers, a custom wedding gown or a wedding aisle fitted with hundreds of floating candles.

Whatever your dream, count on it costing a pretty penny. To avoid going into debt for your special day, choose the one item for your wedding that is most important to you as a couple. That one must have you are willing to get at almost any cost. Trim costs in other places to leave room in your budget for your top priority.

Skip the invites (average cost: $590)

Snail mail is so last millennium. Bring your wedding up to date and make some budget breathing room by creating a cost-free e-invite that includes all the wedding details and the ability to RSVP electronically. You’ll be doing your wallet, and the environment, a favor!

Go nontraditional with the venue (average cost: $10,500)

A typical venue can eat up a wedding budget fast. Make your wedding extra-special and save on costs at the same time by choosing an out-of-the-box venue, like an art gallery, your favorite upscale restaurant or even atop a scenic lookout point.

Ditch the rehearsal dinner (average cost: $1,900)

Why not put that money toward something with lasting value?  If you feel like you need a rehearsal to make sure everything goes smoothly, ask the officiator and the members of the wedding party to practice the ceremony with only a short, no-food run-through.

Choose a non-bridal gown (average cost: $1,600)

Everything on your list gets more expensive when you tack on the word “wedding.” Save on one of these expenses by purchasing a gown that’s not designed exclusively for a wedding. Any floor-length white gown from a department store or boutique will do, and you can always add embellishments to dress it up a bit. You’ll still save a fortune.

Limit your guest count (average cost per guest: $70)

So many parts of your wedding, from the catering, to the bar, to the cake, cost more with each added person. Keep your wedding intimate by only inviting guests who really count. You can limit the plus-ones, specify that the reception is adults-only or restrict the guest list to people who are currently in your life, instead of inviting every acquaintance you’ve ever had.

Rethink your cake (average cost: $500)

Consider a shorter or narrower cake for pictures and cutting, and have the caterer serve a frosted sheet cake so there’s enough for all your guests.

7 Tips for a Budget-Friendly Road Trip

Ready to hit the open road? Before you do, check out our budget-friendly road trip tips so you can set out in style and without breaking your budget!

1. Save on food costs

Here’s how to save on food costs during your road trip:

  • Shop your local stores for staples before setting out.
  • Get your “kitchen” into gear. A good knife, cutting board and small cooking appliances like a portable grill and plug-in burner are great starting points.
  • Plan a mix of meal types, alternating between home-cooked meals, dining out on fine cuisine and tasting local street foods.
  • Save the dining out for delicacies unique to your current location.

2. Camp out instead of sleeping in hotels

Sleeping under the stars when possible adds a whole new layer of awesomeness to your trip. And it can be super cheap! Check out recreation.gov, where you can book spots among 3,600 facilities and 103,000 individual sites across the country.

3. Find free attractions

Most tourist hotspots have a wide selection of free activities and sights to see at no cost. Check out local websites or ask around on the street to find the best-kept secrets at every stop.

4. Map out your route for greater savings

Instead of blowing money on gas, create a detailed schedule of all your stops before setting out, choosing the most efficient and inexpensive route. Look up local attractions in the areas you plan to stop at and book reservations in advance when possible.

5. Download GasBuddy

Download the GasBuddy app to find stations with the lowest nearby gas prices throughout your trip. You can save hundreds of dollars on gas costs using this game-changing app.

6. Check in on Sunday

For those nights when you must have a hot shower and comfortable bed, you’ll probably be checking into a hotel. If you can, check in on a Sunday. According to a study from the travel app Kayak, hotel reservation rates are lowest on Sundays.

7. Explore more and drive less

Hit the brakes and get out of the car! Spend some time covering miles on foot by hiking through local trails or backpacking through city streets. You’ll enjoy an enriching experience and save on gas costs at the same time.

How to Make a Vacation Budget You Can Keep

Summer is here, and it’s time for your getaway!

While it’s great to get away for some fun in the sun, sticking to a budget is a must, even when on vacation. This year, attack your vacation with a financial plan you can actually keep by following these tips:

Rethink vacation

Before you start working on a vacation budget, consider an alternative to a conventional getaway that can provide an escape from real life without the prohibitive price tag.

  • Staycation. Spruce up a spare bedroom with scented hand towels and mini soaps and shampoos to give it a hotel feel. Sleep there during your “vacation” and spend your time trying out local attractions, festivals and restaurants you’ve always wanted to experience.
  • Swap houses. Have friends or family who live out of your area? Ask about switching houses for a week. Then, you can all get an inexpensive vacation.
  • Camping. If you have camping gear or can borrow it from a friend, camping can cost next to nothing. It can also be a fantastic way to enjoy a rejuvenating break from the grind of life.

Create a budget

If you just gotta splurge on a typical getaway, here’s how to create a realistic budget:

  1. Review your savings. If you’ve been steadily saving up for this vacay, you’ll know how much you have to spend. If you haven’t saved anything, consider an unsecured loan through your credit union and/or saving up until your vacation by trimming your discretionary expenses.
  2. Prioritize. Before assigning dollar amounts to categories, pick what’s most important to you while on vacation. List your priorities from most to least important for future reference.
  3. Assign dollar amounts to big-ticket items. Choose and price a destination. Set aside money from your budget to cover what it takes to get there, as well as accommodations.
  4. Divide and conquer. Now, assign a realistic dollar amount to your remaining categories. Include food, tickets to entertainment venues and attractions, gifts and souvenirs, transportation costs, and pack in some “miscellaneous” money for unplanned expenses.

Stick to your budget

Now comes the hard part: sticking to your budget while on vacation.

First, consider using cash. You’ll be forced to stick to your budget with no way to overspend. Just make sure you plan for how to keep it secure at all times.

Next, make advance reservations when you can. This way, you have fewer spending choices for when you’re actually on vacation.

Finally, keep a copy of your vacation budget handy while you’re away so you can pull it out whenever you come up against a spending challenge.

Don’t let your budget go on vacation!

Post-Pandemic Money Moves

Mask mandates are going away and restaurants are opening again. Finally, life is going back to normal! Here are some forward-thinking money moves to make as you adjust to post-pandemic life.

Review and adjust your budget

Pandemic budget rules were unique, as people cut down on costs, like dining out and updating work wardrobes, but spent more on things like at-home entertainment. Others may have had to adjust their spending to help them coast during a stint of unemployment. The pandemic may have also shifted something in people’s mental list of needs and wants, as they found they can live with a lot less than they’d thought.

As you adjust to post-pandemic life, take some time to review and tweak your monthly budget. Be sure to incorporate any changes in income, as well as a readjustment to pre-pandemic spending or changed priorities.

Rebuild your savings

If you are one of the many Americans who were forced to dip into savings, or even to fully drain them, during the pandemic, create a plan to get your savings back on track. Tighten your spending in one area until you’ve built up an emergency fund that can keep you going for 3-6 months without an income, or use a windfall, such as a work bonus or tax refund, to get the bulk of your emergency fund in place.

Once your emergency fund is up and running again, continue to practice basic saving habits, such as setting aside 20% of your monthly income for savings, or whichever approach you prefer.

Rethink your long-term and short-term financial goals

The pandemic has prompted lots of people to reevaluate their goals. Take some time to rethink your long-term and short-term financial goals, then adjust your savings and budget accordingly.

As you move through this step, be sure to consider any long-term goals you may have put on hold during the pandemic. Have you stalled your contributions to your retirement accounts? Have you been making only the minimum payments on your credit cards? If any of these apply to you, be sure to revert your savings and debt payments back to pre-pandemic levels as soon as you can.

Spend with caution

It’s perfectly fine to enjoy a shopping spree in celebration of a return to pre-pandemic norms, but spend with caution.

First, prepare to encounter inflated prices wherever you go. Gas prices have jumped, and the cost of many consumer goods has spiked. If you planned on purchasing a big-ticket item like a new car, consider waiting until prices cool off.

Also, you may be eager to make up for lost time, but no number of nights out on the town will bring back the months you spent at home. To avoid irrational overspending, set up a budget before you hit the shops and only spend what you’ve planned.

What Do I Need to Know About the Advance Child Tax Credit Payments?

Q: What do I need to know about the advance Child Tax Credit payments of 2021?

A: The advance Child Tax Credits of 2021 will be distributed monthly to eligible families, beginning on July 15. Here’s what you need to know about these payments.

What are the changes to the Child Tax Credits for 2021?

The Child Tax Credit (CTC) for 2021 will be greatly expanded:

  • Eligible families will get $3,000 per qualifying child between ages 6 and 17 at the end of 2021.
  • Eligible families will get $3,600 per qualifying child under age 6 at the end of 2021.
  • The credit is fully refundable.
  • Advance payments of up to 50% of the total CTC per family will be distributed once a month, from July 15 through Dec. 15, 2021.

Who’s eligible for the Child Tax Credits?

Taxpayers who have a primary residence in the U.S. and live in it at least half of the year are eligible for the child tax credits.

Payments will begin to be phased out for married taxpayers filing a joint return who earn more than $150,000 a year, for heads of household earning more than $112,500 a year and for all other taxpayers earning more than $75,000 a year. Income eligibility will be based on 2020’s tax return.

How much will I receive per month through the advance Child Tax Credits?

The advance payments being sent to qualifying families will be equal to up to 50% of each family’s total CTC. The payments will be based upon the income information found in taxpayers’ 2020 tax returns, or, if these are not yet filed, in the 2019 tax returns.

Families eligible for the full CTC will receive half of the total across a six-month time span. From July to December, eligible families will receive $300 a month per child under age 6, and $250 a month per child ages 6-17.

Can I decline the advance payments of the 2021 Child Tax Credits?

Eligible taxpayers who do not want advance payments of the 2021 Child Tax Credit can choose not to receive them. This may apply to taxpayers who anticipate earning more in 2021 than in 2020, or who have primary custody of the child(ren) receiving the credit in 2020, but not in 2021. The IRS has not yet provided instructions for how to officially decline the advanced payments, but has promised to update its website when they are available.

The advance CTC payments will be a boon for families struggling with the financial fallout of the pandemic, but it may not be in every taxpayer’s best interest to accept these payments now. Use our guide to brush up on the details of these payments so you can make an informed decision.

SOURCES:

https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

https://www.cnbc.com/2021/05/17/new-monthly-child-tax-credit-payments-start-july-15-what-to-know-.html

College Degree Scams

For many young adults, a college degree is the key to a secure financial future. Unfortunately, though, scammers are offering fake diplomas and bogus degree programs to the unsuspecting college-bound crowd. Here’s what you need to know about college degree scams.

How the scams play out

College degree scams can take on several forms:

  • Diploma mills advertise to attract potential students, claiming they don’t need to do any studying, take exams or even interact with professors to earn their “degree.”
  • Accreditation mills will allegedly provide higher education accreditation to diploma mills. Unfortunately, though, they cannot grant authentic accreditation because they are not recognized by the U.S. Department of Education (USDE) or the Council on Higher Education Accreditation (CHEA.)
  • Life experience degrees offer a fully accredited “degree” for work experience alone.

In each of these variations, the victim will only discover that the degree is bogus when they try to use it. It won’t be recognized by reputable employers, can negatively impact a career path even if the victim is already employed and can get the victim into trouble with the law.

 10 signs a college or degree program is bogus

  • The school’s mailing address is a P.O. box.
  • Tuition is billed as a flat rate per degree.
  • The “school” claims you can get your degree in an impossibly short time.
  • You have little to no interaction with the “professors” of the school.
  • The name of the “college” is similar to a well-known legitimate university.
  • The web address doesn’t end in .edu.
  • The school is accredited by an organization that isn’t approved by the USDE or the CHEA.
  • The school does not ask for any form of I.D. upon enrollment.
  • A degree can be earned with minimal effort.
  • The school claims you can earn your degree solely through experience in the workfield.

How can I be sure my degree program is legit?

The Federal Trade Commission (FTC) suggests taking these steps before enrolling in any college program:

  • Is the school officially accredited? You can verify this by checking for the school or program on College Navigator, and/or looking it up on the USDE and the CHEA If your school or program isn’t listed on these sites, you’re looking at a scam.
  • Ask the registrar of any local community college or state university if they’d accept transfer credits from this institution. If the answer is no, it’s an obvious scam.
  • Contact the state attorney general’s office in the state where the school or program is located to ask if it’s operating legally.

If you’ve been targeted

  • Report scam attempts to the FTC at FTC.gov and to your state attorney general. Let your friends know about the scam, too.
  • Be alert and do your due diligence before signing up for a college or degree program, and stay safe!

Tips for Recent Homebuyers

Becoming a homeowner is a major milestone. There’s a thrill in owning your own place, and you’ve got a new, large investment to maintain. Successful homebuyers are those who can perfectly balance that new freedom and responsibility.

There are several upcoming firsts for recent homebuyers. Check out these common homeowner situations, and you’ll be prepared for a possible setback.

1.       Something major breaks

As a renter, if the refrigerator breaks, the landlord repairs it. In contrast, when something like an appliance or major system breaks in your home, you’ll be responsible to fix it.

If you’re counting on homeowner’s insurance or a home warranty to cover you, check your policies carefully. Most home warranties end at the walls of your house, and insurance won’t cover damage outside of a disaster. If your home needs significant work, you’ll probably be covering the costs yourself.

Consider practicing self-insurance. Start a home repair and renovation fund, and build major expenses into your monthly budget. These expenses become manageable when spread out over the course of several months. Expect to spend 1-4% of the value of your home in repairs and maintenance annually.

2.       Costs increase

When considering a budget in your new location, housing costs aren’t the only thing likely to increase. If you’re moving from a smaller apartment into a larger home, utility costs will rise. If you’re moving into an older house, appliances won’t run as efficiently.

Additionally, transportation costs may rise if you’ve moved further away from work. A larger kitchen might encourage more cooking and entertaining, increasing the grocery budget. Lawn maintenance costs may appear on your budget for the first time.

During your first month as a homeowner, document your new living expenses so you can budget for them properly. If, after a month, you see that your expenses are too high, you’ll have an idea about where you can make cuts.

3.       Tax bills come due

Property taxes can wreak havoc on your budget. While many mortgage companies include these costs in your regular mortgage payment, other homeowners are responsible to pay them at tax time. If that’s the case for you, it’s important to determine what your tax bill might look like.

The U.S. average property tax bill is under $3,000, or $250 per month. Here also, setting the expense aside monthly instead of paying it in one shot makes it manageable.

4.       Maintenance requirements increase

There are dozens of things around the house, such as smoke alarms and toilet bowl seats, that decay with time. Some of these objects can damage your house if they don’t work properly.

Make a list of chores that need to be done monthly, weekly or annually. Keep a spreadsheet so you know the last time maintenance was performed on major items in your home. As always, it’s a good idea to fix little problems before they turn into big ones.

Six Reasons to Switch to E-Statements

Quick, convenient, and clutter-free, E-statements are the way to secure your account info.

Your E-statements work similarly to paper statements, except for the fact that they’re delivered electronically. At the end of each statement period, you’ll get an email from your credit union informing you that your E-statement is ready to view through the online app or another secure means. Once you access the E-statement, you’ll find it has all the information you’re used to getting with your paper statements. You can also access your E-statement by logging into your online banking account, E-teller, or app at any time throughout the month.

Here are six reasons to consider switching to E-statements.

1.       Check your accounts at a glance

With E-statements, there’s no need to wait for your monthly statement to arrive in the mail. With just a few clicks, you can check your account balance at any time, anywhere, using the mobile device of your choice.

2.       Clear out the clutter

Why bother with piles of paperwork when you can access your accounts digitally? It’s neater, cleaner, and helps cut down on stuff flooding your mailbox.

3.       Keep your information safer

With E-statements, you’ll never have to worry about losing a paper that has confidential banking information, or mistakenly tossing it into the trash where it can be nabbed by shady peeps.

4.       Monitor your accounts for fraud

When you have instant access to your accounts throughout the month, it’s a lot easier to check for signs of fraud. Plus, when you spot the fraud sooner, you can take steps to stop and fix the damage earlier, giving you a better chance of a full recovery.

5.       Eco-friendly

Less paper statements means less paper waste and fewer trees getting felled for something that will ultimately be tossed. Go green for the environment with E-statements!

6.       Safe and secure storage

Filing cabinets are so last century. With E-statements, you’ll never stress about misplacing your account statements again. Your online banking portal or app acts as a convenient and secure filing cabinet, storing your account statements for access as needed.

Ready to make the switch to E-statements? Signing up is easy! Just follow the instructions on our mobile app, Mobile CU, or click on this link to get started. Hello, convenience!

The Promises and the Perils of Buy Now, Pay Later

Gotta have it now, but don’t have the cash? Why not buy now, and pay later? (BNPL). It’s the perfect way for you to walk away with that overpriced exercise bike even if your wallet is practically empty, right?

Maybe. Or maybe not.

Let’s take a look at these programs, how they work and what to be aware of before you sign up.

How BNPL works

You’ll find a BNPL button when checking out at most online retailers. This option will usually link you to a BNPL app, such as Afterpay, Affirm or Quadpay. A brick-and-mortar store may offer you this option at checkout as well. Here, too, you’ll pay up through an affiliated app.

If you choose to go with a BNPL option, you’ll need to get approved. Apps will usually run just a soft credit check to confirm your information. Once approved, you can choose to link your debit card, checking account or credit card so the app can collect the payments when they’re due. Next, you’ll generally make a 25% deposit on the purchase, and the item is yours! Most BNPL plans require you to pay off the rest in three fixed installments, but payment schedules can vary.

When to choose BNPL

BNPL programs can be a good choice for items you urgently need, but can’t afford right now, like medical equipment that’s not covered by insurance. It can also be ideal for workers with an uneven income flow who may experience lean times of the year, but know that better cashflow is ahead.

Why BNPL can be a bad idea

It encourages overspending. It’s easy to think that, if you’ll only be paying a small part of the price today, why not buy it now instead of financing the full amount?
Missed payments are penalized. Some services slap an interest charge on your outstanding balance, with rates as high as 40%. Other programs will charge a one-time late fee, which can be as high as $39. Others will tack on an extra fixed fee to all subsequent payments.

It can kill responsible financial habits. If a consumer has purchased multiple items through BNPL programs, the monthly payments won’t be so minimal. The payments will need to be factored into a budget and can eat into other categories, like savings.

Buy now, pay later programs can be super-convenient, but they also present risks. Our best advice? Use with caution.

Don’t Share Your Grad Photo Online

Congrats  — you did it! You’ve spent years studying for exams, keeping up with your coursework and writing papers. Finally, the finish line is within reach. You’re graduating!

It’s a super-exciting time, and all you want to talk about is your graduation. So when a bunch of your friends are sharing their senior photos and joining graduation contests on Facebook, Instagram or other social media platforms, you think it’s harmless to do it, too. Unfortunately, though, posting a senior portrait with your graduation year and the name of your school on a public platform can mean playing right into a scam.

Here’s what you need to know about grad photo scams and how to play it safe.

How the scams play out

The Better Business Bureau (BBB) is warning graduates not to post their senior pictures on any social media platforms. Scammers, they explain, are using these sites to gather new targets. When they see a grad photo with a graduation year and the name of a school, they can take this information. Since these items are commonly used for security questions, scammers can look up more details about the target or even hack into private accounts. Once they’ve completed this step, they can pull off identity theft and more.

Also, lots of trending post-your-list-of-favorites contests for graduates can be exploited by scammers. In these contests, graduates are asked to share their senior portrait along with a list of favorites, such as their favorite songs or cars they’ve owned. This information can also be unknowingly seen by scammers.

How to stay safe

The BBB shares the following tips to help graduates and others keep safe on social media:

  • Only share your graduate photos privately with friends.
  • Don’t join grad photo contests that compromise your privacy.
  • Review and adjust the security settings on your devices and social media accounts.
  • If you believe you’ve been targeted, consider changing your passwords and security questions.

If you find evidence of fraud, let your credit union know so it can place a fraud alert on your accounts. You’ll also want to report the fraud to the FTC at FTC.gov.

Graduation is a super-exciting milestone and you don’t want scammers ruining this special time. Stay safe!

Technology a Necessity in Today’s World

Whether you’re trying to keep up with younger family members or you’re trying to make an appointment for a COVID vaccination, like it or not, you need to be up on the latest technology.

Some devices may still be somewhat intimidating, but digital devices have become more user-friendly over the years.

If you can yell, “Alexa!” you have the ability to get the news and weather, find out where your delivery is and, more importantly, call for help just by using your voice.

Older adults and technology usage

According to AARP , people over age 50 are using smartphones, tablets, smart speakers and wearable devices as much as adults ages 18-49. Many say they use their devices daily, mostly for social media.

Those who are not adopting technology say there is a lack of knowledge and a presence of health problems, such as hearing and vision issues. Cost is also sometimes noted as a reason for shying away from buying that smartphone or Apple watch.

Most devices that are specifically designed for older people, such as wearable fall-detection devices, are viewed as a negative stereotype for aging.

Useful products for older adults

Charlotte Yeh, the chief medical officer at AARP, says technological devices geared toward older adults should not only focus on protecting their safety, but also give them a feeling of purpose and connection, as well as a positive view on aging.

Some examples of these products include the Amazon Alexa Care Hub, created for independent living with the security of knowing you’re connected to loved ones; and the BUDDY app for Fitbit smart watches to monitor and manage fall prediction, prevention and detection, medication schedules and reminders, GPS locations and emergency notifications, all with modern style.

Some libraries and township recreation departments provide free instruction on how to use tablets and e-readers, like Amazon Kindle. Check their schedules or grab your teenage grandkids to hook you up. Technology is a necessary part of today’s world, and once you embrace it, you’ll feel less isolated and more in control of your daily life.

Financial technology

Having the ability to manage your financial accounts without going into a branch is especially important for older adults. If you haven’t already, enroll in High Point FCU’s digital banking service, and enjoy 24/7 online account access!  Learn about the benefits of digital banking here.

Teach Kids to Set Savings Goals

Your child wants a new longboard ($200) or the latest basketball shoes ($120), but it’s just not in the budget this month — or for the next three months. Rather than a flat-out “no,” work with your child to set savings goals and then help them reach them. Here’s how:

Identify the goal

If your child has an item they’d like to purchase, the goal amount would be the purchase price. If the item is exceptionally pricey, offer to match their savings once they get halfway there. Setting a reasonable goal amount will help them see when the end is in sight and provide more motivation to reach the goal.

Make a plan

What will they do to reach the goal? Sit down with your child and discuss ways to earn the money. Do they have a part-time job? Babysit? Are there additional chores they can do around the house to earn more money? Get creative! Together, figure out how much money they can save each week or month and how long it will take to reach their goal.

Set money aside

Make sure your child has a savings account or another method for savings. Spending can often be quite tempting if the cash is easily accessible. If your child is serious about saving, make sure they have a place to put the money away.

High Point Federal Credit Union offers a Youth Savings Account that will help your child get the most out of their savings! Learn more by clicking here.

Follow through

Once your child has reached their savings goal, follow through and allow them to purchase what they saved for. And if you agreed to match their savings, make sure you’re ready to do so, too.

Giving your children the knowledge and help to reach a savings goal is a life lesson that they will carry with them throughout their adult lives. You might even be surprised. Once your child has reached their savings goal, they may decide that the item they originally wanted to purchase isn’t worth the work they put into it and use those savings even more wisely.

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