As the store aisles fill up with pencils and crayons and the frantic back-to-school shopping season begins, scammers are ready to strike. Whether you’re a college student preparing for the fall semester, a high school student ready to make the most of the coming 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 informing them that they have failed to pay the student tax. If it is not paid up immediately, the “agent” says, the student will not be allowed to attend school and may even face jail time. IRS scams like this one can happen at any time of year, but are especially common before the start of a new school year. Here are three things to know to help you avoid this scam:
Scholarship scams Another school-related scam that can be more prevalent this time of year, the scholarship scam cons students and their parents into paying money for government student loans or financial aid, or promises a scholarship for a fee. Follow these rules to avoid falling for scholarship scams:
School supply giveaways and freebies Between backpacks, new clothing and loads of supplies, back-to-school shopping can cost a lot. Messages promising a free back-to-school shopping spree can be most welcome, if they’re legit. Unfortunately, they too often are not. Back-to-school giveaway scams will ask the victim to visit a website and provide their email address to claim their prize. The victim will then be rewarded with an endless stream of emails, texts, robocalls and more from the company that now has their information and other companies they’ve sold this information to, with no true rewards or prizes in sight. In some cases, the scam is a lot more nefarious, and the “company’s” website will infect the victim’s device with malware. Or, the scammer may demand a “processing fee” before the victim can claim their supposed prize. Protecting yourself from a giveaway scam is easy when you remember this simple rule: If it sounds too good to be true, it probably is. Also, legitimate contests will rarely select a winner at random; you’ll have to enter it first by providing your email address or another way the company can contact you if you win. They are also not likely to make you jump through hoops or provide all sorts of information before claiming your prize. Finally, there is generally no payment necessary for claiming an authentically won prize. Social media scams In these scams, victims are targeted through their social media platforms and offered incredible deals or offers on school supply shopping. This can be presented in the form of deeply discounted gift cards at favored stores, expensive technology at bargain prices and more. Of course, these deals are bogus and if the victim clicks on the embedded link, their device will be infected with malware. Here, too, stay alert and remember that if it sounds too good to be true, it’s almost certainly a scam. No, you won’t be scoring an iPad for just $19.99 and you can’t buy a $1000 gift certificate to Abercrombie for just $250. Ignore all ads like these and, if you can, opt out of receiving them in the future. It’s back to school season, and the scammers are at it again. Follow the tips outlined above and stay safe! Your Turn: Have you been targeted by a back-to-school scam? Share your experience with us in the comments.
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Individual Americans spend hundreds of dollars a year and at least as many hours on keeping themselves physically fit — but too many people neglect their financial health. Just like physical health, being financially fit is crucial to your wellbeing, your future and your quality of life.
Here’s why being financially fit is so important and how you can overcome common barriers to achieving financial wellness. Financial wellness: a ripple effect Being financially fit is about more than just having enough money in your account to cover your expenses and put away something for tomorrow. Managing money responsibly will affect many aspects of your life:
What are the leading causes of money stress? According to a survey by Credit Wise®, 73% of Americans rank money issues as the number one stressor in their lives. Here are the top causes for financial stress:
Barriers to financial wellness and how to overcome them We’re convinced: being financially fit is super-important. But what happens now? Why are 80% of Americans in debt? Why do only 39% of Americans have enough saved up to get them through a $1,000 emergency? Unfortunately, while many people may understand that financial fitness is crucial to their wellbeing, there are several barriers that make it difficult to follow through on their convictions. First, many lack the basic financial knowledge necessary to responsibly manage their money. Second, many people mistakenly believe that budgeting, saving and being more mindful of how they manage their money are too time-consuming and tedious. Finally, some people may have fallen so deeply into debt, they’ve begun believing they will never be capable of ever pulling themselves out. Here are some simple steps you can take today to help you achieve and maintain financial wellness:
You give your abs a great workout each day — now it’s time to get those money muscles into shape! Follow the tips outlined above to stay financially fit at all times Your Turn: What are your best tips for maintaining financial wellness? Tell us about it in the comments. Q: Help! I need to fill out my FAFSA forms and I don’t know where to start! What do I need to know about filling out my FAFSA forms?
A: Free Application for Federal Student Aid (FAFSA) season is in full swing! Whether you’re a college student, a high school senior or you’re seeking financial aid for your college-age child, it’s time to get those forms filled out. The rules and deadlines can be confusing, but we’re here to help. Below, we’ve answered many of the questions you may have on applying for FAFSA. When is my application due? There are three FAFSA deadlines you need to note: federal, college, and state. The federal FAFSA submission has one set date, while each college and state sets its deadlines that may or may not coincide with the federal deadline. To be considered for federal student aid for the 2021–22 award year, the FAFSA form must be completed between Oct. 1, 2020, and 11:59 p.m. Central time (CT) on June 30, 2022. Any FAFSA corrections or updates must be submitted by 11:59 p.m. CT on Sept. 10, 2022. The application for the 2022-23 award year will become available on Oct. 1, 2021, and must be completed by 11:59 p.m. Central time (CT) on June 30, 2023. Any corrections or updates must be submitted by 11:59 p.m. CT on Sept. 10, 2023. As mentioned, many states and colleges have their own deadlines for submitting applications for state and institutional financial aid. You can find your state’s deadline here. Check with your college choice(s) about their deadlines. The deadlines can get confusing, and while the federal government provides ample time to submit forms, many states and colleges provide aid based on a first-come, first-served basis. For this reason, it’s best to get your application in as soon as you can to increase your chances of receiving aid. Who is eligible for FAFSA? To qualify for FAFSA, you must meet the following criteria:
How do I apply for FAFSA? You can now apply for FAFSA using the free myStudentAid app, available on Apple and Google Play. If you use the app with an Apple device, be sure to disable the “smart punctuation” feature before filling out the form to avoid errors. You can also apply for FAFSA online at FAFSA.ed.gov. You can still send in your application via snail mail, but this is not recommended for several reasons: Online applications are simpler to complete and generally have fewer errors because they are designed to detect common mistakes and/or typos. Your application is also likely to be processed sooner when it’s submitted online. Finally, when applying for FAFSA online, you will be given the option to have your IRS data automatically retrieved and then populate the relevant fields, significantly lowering your chances of errors in your tax reporting. What are some common mistakes people make on the FAFSA form? A mistake on your form can delay your application and limit your eligibility for aid. To avoid errors, be sure to read every question carefully and review your application before submitting it. Here are some of the most common errors on FAFSA forms:
Can I apply for FAFSA as an independent? If your parents are not paying any part of your college tuition, you may be able to apply for FAFSA as an independent. If you can apply as an independent, your parent’s income will not be considered when your eligibility is determined. You may be able to apply for FAFSA as an independent if you meet any of the following criteria:
The sooner you apply for FAFSA, the greater your chances of obtaining financial aid for college. Don’t delay; complete your FAFSA early! Your Turn: Have you applied for FAFSA? Share your tips with us in the comments. Q: I’m trying to heal financially as life returns to pre-pandemic norms, but the rising cost of many commodities, like groceries and gasoline, is making a financial rebound a challenge. Why are prices skyrocketing right now?
A: The jump in prices of many goods is proving to be a formidable challenge to millions of Americans who are attempting to recover from the pandemic. There are several compounding factors triggering the rise in prices across multiple industries, and the upward trend is likely to continue for a while. Here’s what you need to know about the sky-high prices dominating the post-pandemic economy. How much more do groceries cost compared to a year ago? A trip to the grocery in 2021 doesn’t come cheap. According to new data from NielsenIQ, all 52 tracked food categories are more expensive now than they were a year ago. The cost of fresh meat, for example, jumped by 8.6% from May 2020 to May 2021, while processed meats are up by 9.2% and the cost of eggs has seen a nationwide increase of 8.2%. What is causing the increase in grocery prices? A confluence of factors is causing grocery prices to rise. For one, the pandemic has caused a shortage in many materials due to a prolonged disruption in the labor force and supply chain, which has increased demand, and the prices of these goods, to rise. Grocery items, in particular, also saw a surge in demand due to the many Americans cooking at home while on lockdown during the pandemic. Many industries are still suffering from these shortages and don’t expect to recover for a while. In fact, the Bloomberg Commodity Spot Index, which tracks 23 raw materials, is at the highest level it’s been in nearly a decade. Second, there is a shortage in the labor market now, which can likely be attributed to the inflated and extended pandemic unemployment insurance, which made many laborers reluctant to return to work. Employers are forced to offer more pay for attracting workers, and they pass this extra cost on to consumers. Finally, the increase in prices can be linked to the rise in transportation costs as gas prices continue to rise, which we’ll explore more in a moment. Again, this increased expense is passed on to the shopper through higher prices on consumer goods. Why are gas prices so high? It’s sticker shock at the gas pump these days, with prices as high as $4 per gallon in some parts of the country. There are many factors contributing to the rise and fall in gas prices, of which the fluctuating price of crude oil is most prominent. According to the U.S. Energy Information Administration (EIA), approximately 60% of the money we pay for a gallon of gas goes to cover the costs of the crude oil that went into making it. Another 25% pays for the costs of refining, distributing and marketing the gas, while the rest pays for federal taxes, and state taxes in some states as well. Crude oil prices, in turn, rise and fall in direct correlation of multiple factors. Most recently, here’s what’s causing the price of crude oil to peak:
What can I, as a consumer, do about the rising cost of goods? Unfortunately, as a private consumer, there’s not much you can do to bring down the costs of common goods. However, there are steps you can take to help you manage these costs in a financially responsible manner. First, you’ll likely need to make some changes to your monthly budget to accommodate the higher costs of groceries and gas. Shuffle your spending categories by trimming discretionary expenses until you have enough money to cover the costs of food and transportation. Next, incorporate cost-saving techniques you may not have needed to use until now to help you manage these increased expenses. Think couponing, shopping the seasons and the sales, buying items you always use in bulk, and cutting back on pricey grocery items you can do without. To save on gas costs, consider walking to work or to do your errands, carpooling when possible, or using public transportation more often. Rising prices might be hard on the wallet, but with some proactive steps, you can still stay on top of your finances and help bring your financial health back to pre-pandemic norms. Your Turn: How are you budgeting for the rise in the cost of groceries and gas? Share your tips with us in the comments. |
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