 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.
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 Are you self-employed and without a retirement plan? A solo 401(k) may be the solution you need! This retirement plan is designed specifically for self-employed individuals and small business owners who have no full-time employees other than a spouse.
Let’s take a closer look at solo 401(k)s, how they work and how to manage one effectively. How solo 401(k)s work Here are some key features of a solo 401(k). Contribution limits:
How to manage a solo 401(k) effectively
What are the benefits of a solo 401(k)? Here are some of the benefits of opening a solo 401(k):
What are the potential drawbacks of a solo 401(k)? Here are some of the potential drawbacks of opening a solo 401(k):
A solo 401(k) is a versatile and powerful retirement savings vehicle for self-employed individuals and small business owners.  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. 1. Have your HVAC system professionally inspectedFirst, 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. 2. 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. 3. 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. 4. Get grillingYour 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. 5. Time your choresUsing 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. 6. Use appliances efficiently
Have you brought down your energy costs this season while still keeping your house cool? Share your best tips and tricks!  It’s a new product — and you can try it for free!
Sounds amazing? Well, know that a free trial can actually be a gateway to a devastating scam. Here’s what you need to know about free trial scams and how to stay safe. What are free trial scams? Free trial scams typically involve a business offering a product or service at no cost for a limited time. But the catch is that by signing up for the trial, consumers unknowingly agree to pay for ongoing subscriptions or other products. These scams are particularly shady because they seem legit, often using professional-looking websites and marketing materials to trick users. There’s also nothing criminal about free trial scams; just manipulative and deceitful marketing. How do free trial scams work? Here are the steps of a free trial scam:
 One of the most effective tools for a comfortable retirement is a 401(k) plan. This employer-sponsored retirement savings plan has many benefits, making it a cornerstone of retirement planning for millions of Americans.
Here’s what you need to know about the 401(k) and how to maximize it. How do 401(k)s work? A 401(k) plan allows employees to save and invest a portion of their paycheck before taxes are paid. This pre-tax contribution means that the money put into the 401(k) reduces the individual’s taxable income for that year, potentially lowering their overall tax bill. Employers often match a portion of employee contributions, which is essentially free money added to your retirement savings. Tax benefits and compound growth One of the most attractive features of a 401(k) is the tax deferral on earnings. Investments in a 401(k) grow tax-deferred until you withdraw the money, usually after age 59½. This tax deferral allows your investments to grow faster than they would in a taxable account, since money that would have been used to pay taxes is being invested and earning returns. With compound interest, this can lead to exponential growth in your retirement savings. Diversification and investment options 401(k) plans typically offer a range of investment options, including mutual funds, stocks, bonds, and sometimes even company stock. This variety allows you to diversify your portfolio, which is a key strategy for managing risk. Potential drawbacks While 401(k) plans offer significant advantages, there are potential drawbacks to consider. One is the limited control over investment choices compared to an individual retirement account (IRA). The investment options in a 401(k) are selected by the plan administrator, and while you can choose from this selection, it may not include all the assets you’d choose yourself. It’s also important to remember that 401(k)s have penalties for early withdrawal. If you withdraw money from your 401(k) before age 59½, you’ll typically owe a 10% early withdrawal penalty on top of regular income taxes. Finally, some 401(k) plans have high administrative fees or expensive investment options that will decrease your overall savings. How to maximize your 401(k) benefits To get the most from your 401(k), start by contributing enough to get the full employer match. Next, consider increasing your contributions over time. Lastly, take advantage of catch-up contributions if you’re age 50 or older. Getting started If you’re interested in opening a 401(k), check with your employer to see if they offer the quintessential retirement account to employees. Most businesses do, and getting started is as easy as filling out some paperwork. Once you’ve enrolled in a 401(k), you’ll be offered a selection of investment opportunities for your funds. Make your choices and your 401(k) is good to go! Use this guide to learn how to open a 401(k) and manage it effectively.  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:
Here are the key organizations to contact:
Depending on the type of fraud, you may need to report to additional specialized agencies:
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!  Q: I need to transfer funds between accounts, so I’m considering my options. How do Automated Clearing House (ACH) payments and direct deposits differ?
A: ACH payments and direct deposits both involve the electronic transfer of funds, but there are differences between the two methods. Let’s take a look at ACH payments, direct deposits and their unique characteristics. What is direct deposit? Direct deposit is the electronic transfer of funds directly into an individual’s checking or savings account. It’s routinely used by employers to pay their employee salaries. Instead of issuing paper checks, employers can electronically deposit funds into employees’ designated accounts on payday. What are ACH payments? ACH payments include a broad range of electronic transactions beyond payroll deposits. The ACH network also facilitates bill payments, business-to-business transactions and person-to-person transfers. It generally takes two to five days for the clearing house to process the transaction. What are the primary differences between direct deposit and ACH payments? There are several key differences between direct deposits and ACH payments, including: UsageACH payments can be used for a large variety of electronic transfers, while direct deposits can only be used for payroll, government benefits and other transactions where money is transferred directly into one’s checking account. TimingDirect deposit transactions are typically initiated by employers on payday, with funds deposited into employees’ accounts on the designated pay date. ACH payments, however, can have varying processing times. Depending on the transaction type, there can be a delay of several business days before the payment clears. Authorization requirementsDirect deposit requires authorization from the employer and the employee to initiate the electronic transfer of funds. In contrast, only some types of ACH payments require authorization from the account holder. Credit vs debitWhile ACH payments can include both credit (adding funds) and debit (withdrawing funds), direct deposits are only credit payments, in which money is deposited to another account through ACH. Use this guide to learn the key differences between these two electronic transfers and how to make an informed decision when choosing the method that best suits your needs.  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:
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 Home Equity Loan Call, click or stop by Ingersoll-Rand FCU today to get started. Our favorable rates, generous eligibility requirements and easy terms, make a Ingersoll-Rand FCU Home Equity Loan, a great choice.  Investments are rarely without risk – and it’s not just the basic risk. Investing also brings the risk of falling prey to a scam.
Investment scams can include promises of high returns for super-low investments that never materialize, scammers posing as financial planners offering useless advice for a hefty fee and illegal securities offered as IRA investments. However, the most common investment scam is the Ponzi scheme. Let’s take a closer look at this scam and how you can avoid falling victim. What is a Ponzi scheme? In a Ponzi scheme, the orchestrator promises high returns, often through a fictitious investment opportunity or business venture. Instead of using investments to generate profit, though, the scammer uses these funds to pay returns to prior investors. The scheme grows, with more investors joining, and the scammers at the top of the pyramid making the most money. Eventually, it all comes toppling down, with investors losing tons of money. How to spot a Ponzi scheme Watch for these red flags of a Ponzi scheme:
Protect yourself from Ponzi schemes Ponzi schemes are fairly common, but with a little bit of knowledge and awareness, you can prevent yourself from falling victim. Here’s how to protect yourself from Ponzi schemes:
 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:
Protect yourself Follow these tips to help keep yourself safe from emergency scams:
Stay safe!  Q: I’m newly married and I just found out my partner brought a lot of debt into the marriage. Am I responsible for it?
A: Saying “I do”, generally does not make you accountable for your partner’s debt. Here are all your questions about debt and marriage, answered. Am I responsible for my spouse’s credit card debt incurred before marriage? You won’t be held responsible for debt your spouse has incurred before your marriage. The only exception to this rule is if you become a joint account holder during the marriage. If you take this step, you will accept ownership of the debt and be held accountable for repayment. Am I responsible for debts my partner incurs during our marriage? Most states, generally referred to as “common law states,” use a set of common rules to determine if you are liable for debt in a new marriage. In these states, you will not be held responsible for debt incurred by your partner unless the debt accumulated from a joint purchase with your spouse or it benefited the marriage. The remaining states, known as “community property states,” have different rules to determine responsibility for a partner’s debt:
What are joint debts? Joint debts are debts for which you and your spouse are both responsible. They include the following when both partners’ names are on the debt or loan:
How does a prenup change things? If you and your spouse decide to sign a prenup, you can assign responsibility for debts to the partner who incurred them. This way, if the marriage ends in divorce, the other party will not be accountable for these debts. How can we effectively manage debt during marriage? As always, communication and transparency are key to success. Speaking openly about each of your individual debts and financial circumstances can help strengthen the marital bond and allow you to make informed decisions about your joint and individual finances. If you know that your partner is bringing a lot of debt into the marriage, consider taking steps to protect your financial health. For example, you may want to maintain separate accounts and work together to create a plan for paying down debt. Finally, you may want to seek professional advice for managing debts during marriage. Use this guide to learn the ins and outs of debts and marriage, as well as how to navigate them successfully.  It’s your bank or credit union on the line asking for your account information – or is it? It may actually be a spoofing scam!
Let’s take a look at spoofing, how it works and red flags that can alert you to a possible spoofing scam. What is spoofing? Spoofing is the criminal act of disguising a communication from an unknown source to appear as if it’s being sent from a trusted and known contact. The ultimate goal of spoofing is to get the target to share their sensitive information and/or their money with the scammer. For example, a spoofer may pretend to represent a victim’s credit card company and lead them into sharing their account details. Types of spoofing Cybercriminals have a variety of ways to pull off their spoofing. Here are the more common forms: Email spoofingIn email spoofing, an attacker sends an email message that appears to be from a known or trusted source. The emails often include links to harmful websites or attachments that will infect the victim’s device. IP spoofingIn IP spoofing, an attacker tries to gain access to a system by sending messages via a bogus or spoofed ID address appearing to be from a recognized, trusted source, such as one on the same internal computer network. Caller ID spoofingHere, attackers make a phone call to a target that appears to be from a known caller. The scammer will often pose as the victim’s bank or credit union. The victim, believing they are speaking with a representative of their financial institution, will not hesitate to disclose their account information and passwords. Facial spoofing In this most recent form of spoofing, a scammer uses a photo or video of a target’s face to simulate their facial biometrics. This enables them to unlock accounts that can only be opened by facial recognition. Website spoofing In website spoofing, a scammer creates a bogus site that looks just like a reputable site the victim frequents. Attackers lure victims to this site to steal their login credentials and personal info. Text-message spoofingIn this scam, also known as smishing, a victim gets a text message on their personal device that appears to have been sent from a trusted source, such as the victim’s financial institution, place of work or doctor’s office. Deepfakes and spoofing Deepfakes is a relatively new and dangerous tool for spoofers. A deepfake is a fake image, video or audio clip that has been edited to appear authentic. For example, a scammer may create a deepfake video using an image and audio recording of a celebrity to make it appear as if they are telling you to open a link or support a specific cause. Protect yourself Spoofing is a formidable danger for consumers across the economic spectrum, but with the right tools and knowledge, you can avoid falling victim to these scams. Here’s how to protect yourself from a spoofing attack:
Red flags Look out for these red flags that can alert you to a possible spoofing attack:
Stay alert and stay safe!  It’s that time of year again: Time to clean out those closets, polish that furniture and clear out that clutter! Spring is also the perfect time of year to review your saving habits and spruce up your saving goals.
Here’s how to spring-clean your savings in five easy steps. Assess your saving habits First, take stock of how much you’re putting into savings each month. If you believe you should be setting aside more of your monthly income toward savings, look for ways to cut back on your discretionary spending. Spruce up those savings! Consolidate and simplify accountsNext, take a look at the places you keep your money. If you have multiple savings accounts, retirement accounts or investment accounts, consider consolidating them to streamline your finances and reduce the hassle it takes to manage them all. Be sure to compare fees, rates and other features before making changes. Clean up those accounts! Reevaluate your financial goalsWhat are your long- and short-term saving objectives? Do you still want to go after them? If not, consider setting new ones. Think of your future wants and needs, as well as small pleasures you’d love to enjoy in a few years, or even in a few months. Get those goals sparkling! Automate your savingsNow that you have your saving goals clearly defined, it’s time to make it happen by itself. Set up automatic monthly transfers from your checking to your savings account(s) so you never forget to feed your savings. Make that monthly transfer shine! Use the IRFCU AppBring your savings into the 21st century with the power of the IRFCU mobile app. Our app will allow you to track your savings, review and analyze your spending habits and help you stick to your budget without fail. Taking your savings to the digital level will make you more likely to stick to your goals. Spiff up those saving apps! Spring is in the air – it’s time to make your savings sparkle!  Q: What changes can I expect for my retirement accounts and plans in 2024?
A: Here are some changes for retirement plans you can expect to see in 2024: IRA and 401k contribution limits increaseContribution limits for traditional and Roth IRAs are going up in 2024. The limit on annual contributions to an IRA rises to $7,000, up from $6,500. Catch-up contributions for taxpayers aged 50-plus are subject to cost-of-living adjustments (COLA), but these limits remain unchanged for 2024 at $1,000. The boosted contribution limits for IRAs are only available to account holders having a modified adjusted gross income (MAGI) below the set threshold for the year. Contribution limits are also going up for 401k and other employer-sponsored plans in 2024. To read the full scoop on these changes, check out the IRS site. 529 plans can now be converted to RothsIn December of 2022, Congress passed the SECURE 2.0 Act, allowing for a portion of eligible 529s to be converted to a Roth IRA, tax- and penalty-free. Here’s what you need to know:
Starter 401k plans are coming Starter 401k plans, or simplified employer-sponsored retirement plans, are being introduced in 2024. These accounts have lower contribution limits than a standard 401k, but auto-enrollment is required. In addition, employers are not allowed to make contributions to the account. For 2024, Starter 401k limits are set at $6,000 annually, with an additional $1,000 catch-up contribution allowed for account holders aged 50 and older. Employees can contribute an extra $500 to their 401k plan in 2024. Also in 2024, there are more exceptions allowing employees to tap into their 401k plans early without getting hit with penalties – though these distributions are subject to taxation. Updates to full retirement age (FRA) and Social Security paymentsFull retirement age and Social Security payments will see some changes in 2024. First, Social Security payments are jumping by 3.2% due to COLA adjustments. Social Security recipients will receive an average of $1,907 per month, up from $1,848 per month in 2023. Retirees receiving survivors or spousal benefits will also see an increase in benefits. The maximum Social Security benefit will be boosted to $4,873 in 2024, up from $4,555 per month in 2023. In addition, the Social Security tax wage base will see changes. The government will only tax the first $168,600 you earn. Finally, in 2024, $1 for every $3 earned over $56,520 will be withheld for retirees who reach their FRA and hit that amount before their birthday. In addition, retirees earning over $22,320 and falling under their FRA will have $1 withheld for every $2 earned. Use this guide to learn all about the changes for retirement plans in 2024. Are you making any changes to your retirement accounts in 2024?  Your home will probably be the most expensive item you’ll ever buy. That’s why it’s of utmost importance that you time your purchase right and learn the best time of year to buy a home. Of course, market conditions, like mortgage rates and the general state of the economy, will significantly impact the price of your new home as well. Here are the best times of year to buy a home.
Winter As the traditional slowest season for the real estate market, winter will generally bring the lowest prices on homes. As one of the few buyers on the market, you’ll also likely have an easier time negotiating a better deal with a seller. Finally, the professionals guiding you through the home-buying journey may be more available to work with you during this slower season, possibly making the process quicker. Buying a home in the winter is not all fun and games, though. First, fewer homes for sale means slim pickings for you. If you’d like to have a wider selection of homes to choose from, winter may not be the best time for you to go house-hunting. Depending on the area of the country you live in, you’ll also be checking out homes and properties in less than ideal conditions. In addition, you’ll have fewer daylight hours to get a feel for the home’s true curb appeal and the amount of natural light that shines into it. Late spring The real estate market really blossoms in the spring. This is the time of year when you’ll see a large influx of new homes on the market. The warmer weather and longer days are ideal for scouting properties, inspecting roofs and exteriors of homes, as well as getting a feel for a community. You’ll also have a robust inventory of homes on the market to choose from. However, shopping for a new home during the warmer months of the year means competing with many other shoppers who can be interested in the same homes you are. This can lead to higher prices, fierce bidding wars and the inability to negotiate for a lower price. Lastly, realtors and title agencies can be swamped during this time of year and may have less time to work with you, resulting in a lengthier buying process. Early summer Early summer is peak real estate season in the U.S., and often sees the most homes sold out of the entire year. The weather is still warm and the days long, making for ideal home-shopping conditions. Shopping for a home in the summer means shopping the homes that are left over from the influx of spring. You may have slimmer pickings, but sellers will also likely be more eager to sell before autumn and winter arrive. Use this guide to learn the best times of year to buy a home.  Q: I’m reevaluating the ways I use my credit and wondering if I’m doing it right. Which purchases should I charge to my credit card?
A: Your credit score, which is the key to long-term loans at favorable rates, employment opportunities and more, depends on your credit card usage. You want to make sure you use your cards, but you don’t want to spend more than you can pay. In addition, there are some purchases that are best off being made on a credit card. Here are six purchases you may want to charge to your credit card: Electronics and appliancesIt’s a good idea to pay for big-ticket items, like electronics and appliances, with your credit card. This will provide you with an insurance of sorts on these purchases, such as doubling up on the offered warranty. Some cards also offer price protection, which covers the difference if the price of an item drops after you’ve bought it. Car rentalsHere, too, paying with a credit card can provide you with a level of insurance on the car. The insurance likely won’t be as robust as temporary insurance you might buy through the rental service, but it will probably offer some collision coverage at no extra charge. Purchases made abroadWhen traveling and making purchases abroad, a credit card is usually your best way to pay. Cash has the risk of loss or theft and debit cards may have fees for transactions that are made outside the country. They may not even be accepted at some vendors. Credit cards from well-known issuers, on the other hand, are accepted almost everywhere and are a lot safer to carry than large sums of cash. In addition, many credit card companies offer a favorable exchange rate. Fixed monthly billsIf you’re looking for an easy way to build credit, pay a fixed monthly bill, such as a subscription or payment for phone or internet service, on your credit card each month. This will ensure regular transactions are made on your card. As long as you’re paying your credit card bill on time or early each month, you will show a pattern of responsible credit usage! Online purchases When shopping online, you’re usually best off paying with a credit card. Unlike other forms of payment, credit card transactions are always traceable and provide some coverage for fraud. Mobile phone bills Another good candidate for credit card payments is your monthly mobile phone bill. Many credit card companies offer some coverage for phones that are lost, damaged or stolen if the card was used to pay a specific number of bills and the cardholder is up to date on their bills. Use this guide to learn which purchases to charge to your credit card.  Q: How can I prepare my teen for their first job?
A: Preparing your teen for their first job will help ensure their entry into the working world is as smooth and successful as possible. Here’s how to help your teen get ready for their first job. Talk about their goals Help your teen hash out their goals before looking for their first gig. Sit down with them and ask what they hope to achieve with their job. Defining their goals and expectations will help your teen find and keep the job that suits them best. Find out if they’re eligible Depending on your teen’s age and the protocols of local businesses, your teen may not be able to work at an official position just yet. Many companies only hire employees who are age 18-plus. If your teen is underage, you can guide them toward an unofficial position instead of a real job, such as mowing lawns, walking dogs or babysitting for neighbors. Share salary expectations It’s important for your teen to know what kind of paycheck they can expect to get at their first real job. Explain to your teen that people working for 20 years will earn more than someone working their first job. Talk to them about work experience and how they can anticipate their earning potential growing with the passage of time. Resume polishing Draft a resume with your teen. Ensure it provides info on their education as well as their professional goals and aspirations. Include special skills they possess, along with any extracurricular projects they’ve been involved in and organizations they volunteer for during their free time. Job hunt and application process Once you’ve narrowed down your teen’s skills and work goals, talk to them about effective job-search strategies, such as checking online job boards, visiting local businesses and networking with friends and family. Encourage them to explore part-time, seasonal or entry-level positions that match their interests. Once they’ve found a few possible job options, guide them through the application process, including sending their resume and follow-up emails. Interview prep To help your teen prepare for their first job interview, review common interview questions they can expect and come up with responses that will leave the best impression. Talk about finances Once your teen has landed a job, it’s time to talk finances. Here are some work-related money topics you may want to cover:
Your baby is growing up too fast and wants to look for their first job! No worries; you can still teach them a thing or two. Use this guide to help prepare your teen for their first job.  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 will 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
What you need to know about tech support
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. 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. You’ll also want to report the scam to the FTC. Stay safe!  Q: Should I start investing if I have debt that I am paying off?
A: Here are questions that can help you determine whether you should start investing before getting rid of your debt and various factors to consider when making this decision. How high is your interest rate? Your first consideration when making this decision is the interest rate on your debt. Credit card debt tends to hover at 20%, on average. The stock market, in contrast, has historically returned 10% for investors. When you run the numbers, investing money you could otherwise use toward paying down high-interest debt will generally not make sense. This is especially true when interest rates on credit cards are currently rising. If the interest rate on your debt falls under the 10% mark, it may be worthwhile for you to start investing while still carrying debt. Read on for additional considerations first, though. How much outstanding debt are you carrying? If your debt is so large it’s impacting your budget and making it difficult for you to get through the month, you’ll likely want to pay it off before you begin investing. Carrying a large amount of credit card debt can negatively impact your credit score. What kind of debt are you carrying? Not all debt is created equal. There are some good kinds of debt, which will ultimately increase your net worth or earning power. These include mortgage loans, auto loans, home equity loans that are used for home improvement projects and student loans. On the flip side is bad debt, which will not boost your equity or earning power, such as credit card debt and most personal loans. If you want to start investing but you’re still paying off your mortgage or your auto loan, don’t let these hold you back! As good debt, these loans should not have a negative impact on your credit score and general financial health as long as you continue to make full and on-time payments. What is your retirement timeline? It’s never an ideal time to carry outstanding debt, but it’s especially not recommended to bring debt into retirement. If you’re nearing the end of your working years and you’re still carrying debt, it’s probably best to work on paying it off before you begin investing. How can I invest and pay down debt? The good news is, you don’t necessarily need to wait until you’ve finished paying off all your debts before you begin investing. If you aren’t carrying a large amount of high-interest debt, here’s how you can start investing while paying down debt:
Use this guide to learn when and how you can start investing while still paying down debt.  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. |
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