Cash advances have been used to help countless Americans out of tight financial spots. However, they have also received a fair amount of criticism over the years for fostering situations in which people become dependent on cash advances and are unable to recover and get back on their feet financially. Here we explore the good, the bad, and the alternatives to cash advances so, as a financial consumer, you can make informed economic decisions when life’s little emergencies come your way. What is a Cash Advance? The term “cash advance” may mean different things in certain situations. There are essentially three types of cash advances. They include: Cash Advance Benefits Perhaps the most important benefit for all cash advance scenarios is that you get fast access to cash when you need it. You do not have to wait for banks to open, or for long approval processes. You get an immediate response and immediate cash (or money deposited into your account as the case may be). The other benefit is that credit is not a primary determining approval factor for a cash advance. While you are limited to the funds available on your credit card for that particular cash advance, you do not need to apply for new credit to take advantage of it. Finally, you do not have to do much paperwork when applying for cash advances either. It does not ding your credit report, and no collateral is required to secure the loan. For many people, it is an easy and quick solution for emergencies that require fast cash to fix. That does not mean it is all sunshine and roses though. There are a few potential downsides to consider before you pull the trigger on a cash advance. Issues with Cash Advances Before you dive in and whip out your credit card or apply for a payday loan online, it is a good idea to consider the potential pitfalls of this type of loan, especially since some of them are pretty substantial. Interest and fees are one drawback to consider. There is a price to pay for fast access to cash, and it is sometimes much more significant than you expect. Investopedia warns that some payday loan providers charge fees of up to 15 percent of the total borrowed amount plus interest which can be as high as 100 percent or more of the borrowed amount. The other downside is that these are incredibly short-term loans. That means they must be repaid quickly, often within two weeks without paying substantial penalties or rolling the loan over and paying even larger interest rates. If you use your credit card for the loan, there are still problems to consider as the interest rate is often higher than on your other purchases, meaning your new debt can linger and grow for months, years, or even decades if you do not promptly pay back the advance. Alternatives to Cash Advances Fortunately, there are options to cash advances that you can also consider. They include borrowing money from friends and family. That is not always the most attractive option but one that is better in the long-term. Personal loans are also options to consider. Some lenders offer prompt answers and far more attractive interest rates than payday lenders. Alternately, you could tap into your home’s equity or cash out retirement accounts. Understanding these realities of cash advances helps you make better-informed choices in your financial journey.

The Pros and Cons of Cash Advances

View Resource The Pros and Cons of Cash Advances
We all like to think of ourselves as savvy shoppers who do what it takes to get great deals on the things we buy. However, the things you do not know about dynamic pricing could cost you more than you realize. That is even true when you think you might be getting a bargain on the things you buy. What is Dynamic Pricing? Simply put, dynamic pricing is variable or flexible pricing placed on goods that allow for price adjustments based on changing market conditions. As those market conditions change, so do the prices. It takes the concept of supply and demand to new heights as prices can adjust in real-time, and on a minute-by-minute basis. You might also have heard it referred to as surge, demand or time-based pricing. A simple example of dynamic pricing involves holiday vs. post-holiday prices. Items in high demand for various holidays, such as chocolates or roses for Valentine’s Day and decorations or gift wrap at Christmas, will see prices peak ahead of these holidays as demand increases for these items. Then the prices for these items crash, often by 50 percent or more, the day after the holiday occurs. They decrease even further as retailers seek to eliminate the extra inventory to make room for the next seasonal items. The same holds for seasonal clothing. Coats, hats, gloves, and scarves are much cheaper to purchase as spring approaches than in months preceding winter. Likewise, swimsuits are much more expensive to buy during the spring than when you are seeking the perfect swimsuit for your winter cruise. On the Internet, the rules of dynamic pricing are even more complicated. That is why it is so crucial for you to understand what dynamic pricing is, how it works, and how you can make it work for you. Tips for Bypassing Dynamic Pricing These tips will help you avoid much of the dynamic pricing traps you will find when buying items at Internet e-commerce sites. Try them for yourself and see how much you stand to save.
  1. Search With a Different Zip Code
    If you live in an area where the income is typically higher than other areas, consider entering a different zip code, one in a lower income area to see if you get a different price. Don’t forget to disable location tracking features on your phone or computer when doing this to make sure it does not automatically update at the higher price location. This trick also works for people who live in more rural areas, where prices may be higher.

  2. Clear Your Web Brower’s Cache
    Take it one step further and disable third-party cookies as well. You can typically do this from within the preference section of your browser’s controls. Clearing your cache, erases your browsing history and prevents retailers from seeing if you have looked for this item from other retailers. If an e-commerce site knows that you have been searching far and wide for a specific product, they will use this information against you and price it a bit higher.

  3. Navigate to Merchant Sites from other Discounters
    According to eBlocker, a provider of anonymous surging technology, navigating to a merchant’s site from a discount or price search engine can save you money if you do that instead of typing the retailer’s address into your browser. For instance, if you use a service like Google Shopping, Shopzilla, or PriceGrabber to look for items and compare prices, you may find better bargains than going directly to Amazon, Best Buy, and other merchants.

  4. Abandon Your Shopping Cart
    How many times have you placed a product in your shopping cart before getting distracted or deciding the price was too high and moved on to another site only to receive an email a day or two later informing you that product in your cart is now a different price? This tactic is used to encourage shoppers to buy an item at a new lower price if you don’t buy it the first time around.

  5. Set Price Alerts
    You can do this easily with browser extensions or by using sites like CamelCamelCamel.com or Joinhoney.com. Doing this lets you set the price you are willing to buy certain items for and will notify you when they go on sale for that price or approach that price.
No one wants to pay more than is necessary for the things they buy. The better you understand the ways to circumvent dynamic pricing, like those listed above, the better deals you can get on all the stuff you buy online and in retail stores.

Dealing with Dynamic Pricing

View Resource Dealing with Dynamic Pricing
If you are like many people, you have been planning and building a nest egg for decades for the moment when you finally reach retirement age. However, have you also considered how you would restructure your budget, to accommodate your needs at retirement? Understanding Spending Limitations Your spending reality will change once you retire. Not only will your income be different, so will your expenses, and the way you fill your time. With much more free time on your hands to fill during the day, it is easy to overspend. You need to do two things before you retire so you can establish better expectations of your spending power and limitations after you retire.
  1. Gather your expenses.

  2. Know your income.
The better you understand your budget and spending habits now, the more prepared you will be to make the appropriate changes when you retire. Now is also an ideal time to assess your monthly expenses and seek out ways to trim the fat. This attitude of slimming down spending will carry over into your retirement to help you budget wisely when the time comes. Adjusting Your Expenses Retirement changes much more than just the number of hours you spend at home each week. At first, it can be a blessing to have nothing to do every day. It does not take long, though, for boredom to set in. You will want to be careful that you do not compensate by increasing your spending in response. You must adjust your expenses to accommodate your new financial reality. That includes things like: The key is to minimize expenses without limiting your quality of life. Other things you might do is take advantage of senior discounts to reduce costs related to dining out and entertainment. Things to Consider Not only are you spending more time at home once you retire. The types of things you are responsible paying for will also change. As you work to create a functional and effective retirement budget, make sure to include a few unexpected twists, such as: In other words, you need to have room in your retirement planning and budget to accommodate a few unexpected expenses along the way. Natural disasters, marital strife, medical emergencies, and more can create chaos within your budget. Putting it All Together for Your Retirement Budget In order to get the most out of your retirement budget it needs to be the following: While there are no guarantees, following a successful budget throughout retirement dramatically increases your odds of financial independence along the way.

Restructuring Your Budget for Retirement

View Resource Restructuring Your Budget for Retirement
Maintaining a balance between your work life and personal life was a lot easier in earlier times it seems. Today, however, maintaining this balance is not as simple, since work is almost assured to intrude on your personal life. Advances in technology, the Internet, email, texting, and smartphones keep people constantly connected to the office, making it easy for your work life and personal life to merge. According to the U.S. Small Business Administration (SBA), entrepreneurs tend to be laser-focused on revenue and their bottom line. This focus can lend itself to neglecting certain aspects of their personal lives. Likewise, small businesses with employees might often have a management team that demands 150 percent dedication and commitment from their employees. While these employees are probably hard workers, passionate and dedicated, they need to be able to maintain a work-life balance. Pitfalls of Being Out of Balance Having an improper imbalance between work and life, with work being more heavily weighted, can lead to some pitfalls, including poor health and fatigue. Fatigue Being able to think clearly and work productively might become a problem if you are tired. This could lead to costly mistakes and hurt the company’s professional reputation. Poor Health Stress is known to affect the immune system and worsen symptoms of existing medical conditions. It can also lead to substance abuse. Lost Time with Family and Friends When you are working too much, you may be missing out on important milestones and family events. This could harm your relationships with loved ones and leave you feeling left out. It is hard to nurture friendships when you are always working. Tips for Maintaining a More Balanced Approach Maintaining a healthy balance between your personal life and work life is easier by following the below tips. Track Your Time There are tools you can invest in to track your time. These days, you can track everything from the duration and frequency of meetings to the time it takes to attract and convert sales leads. You can quickly understand the length of time each particular task takes through time-tracking software. This will allow you to estimate the length of time each task will take, allowing you get control and manage your schedule. Manage your Time for the Long Term Construct a timeline of your tasks. You can use Word tables or an Excel spreadsheet to do this or specific computer programs. Enter in dates across the top and enter your tasks down the side. Break down each of your tasks into components. Make sure to add family commitments like birthday parties, holidays, and so forth to remind yourself that you cannot work during these personal event times. Work on Things that Really Matter Too often small business owners spend too much time being busy instead of being productive. This is because they are working on things that are not a priority. Instead, focus on the things that will move your business forward and help you achieve your overall goals. Take the time to scrutinize your daily schedule to max out each hour so that your focus is on the most important tasks. This could require a high degree of structure and planning. Pace Yourself For you to live a healthy, long and happy life and have a productive career, you have to know how to pace yourself. There will be times when you will need to expend all of your energy on work and other times when it will be beneficial to take a break, whether it is for a vacation or personal family time. It is crucial to have self-awareness. This will help you enjoy your journey as well as the destination. Remember, people work to live, they don’t live to work. At least this is the way it is supposed to be. Although it might be overwhelming trying to maintain a proper work/life balance, putting an emphasis in this area is well worth it. A better balance will result in you feeling more content and at ease with all areas of your life.

Maintaining a Work/Life Balance

View Resource Maintaining a Work/Life Balance
Federal law requires banks, investment brokers, mutual funds and other creditors to adopt identity theft prevention programs. This is the Red Flags Rule, so-named because its central feature requires financial institutions to identify certain practices that are indicators, or ‘red flags’ of identity theft. The rule exists as part of FACTA (the Fair and Accurate Credit Transactions Act of 2003), which amended the Fair Credit Reporting Act (Regulation V). Although this is a law geared toward financial institutions and creditors, all businesses may find it beneficial to implement. According to the regulation, an institution’s red flag program must include reasonable policies and procedures for detecting, preventing and mitigating identity theft, and enable a financial institution or creditor to: Overall, the program should be designed to detect the red flags of identity theft in day-to-day operations, take steps to prevent the crime and mitigate its damage. The bottom line is that a program can help institutions spot suspicious patterns and prevent the costly consequences of identity theft for the customer. How to Comply In our introduction above, we talk about how a red flags program must include four basic elements that create a framework to deal with the threat of identity theft. The following points expand on how an institution can comply with requirements of the Red Flags Rule: Simply completing a red flags risk assessment or creating a policy is not enough to achieve the objectives of the regulation. The program must be incorporated into daily business operations and procedures. Having a strong red flags program helps financial institutions ensure customers are protected against identity theft and fraud. The program should have specific features, including appropriate policies and procedures, specific elements related to risks identified, detailed actions to take for incidents that are discovered, and details on how to keep the program current to protect against new threats. By being vigilant and following our procedures that are integrated into our daily operations, we can all help protect against these types of crime to provide a better overall customer experience, and to provide the protection that our customers deserve. Sources Office of the Comptroller of the Currency: https://www.occ.treas.gov/topics/bank-operations/financial-crime/identity-theft/index-identity-theft.html Federal Trade Commission: Bankers Online: https://www.bankersonline.com/regulations/12-222-suppa

Steps financial institutions take to combat identity theft

View Resource Steps financial institutions take to combat identity theft
We live in a time where people can access a surprising and alarming amount of information about our personal and financial lives with only a few critical details about us. You can find many of these details in your wallet, and so can others. That is why it is best to be cautious about the things you keep on you or carry with you. This guide will help you recognize the things you should keep in your wallet, the things you want to keep securely elsewhere, and the things you might want to digitize for safe keeping. What to Keep Many of us live our lives on the go these days and prefer to have the things we are most likely to need at our fingertips at all times. However, that convenience isn’t always wise. Discover recommends keeping a few essential items in your wallet and leaving other items secured safely elsewhere. Among the items Discover recommends carrying around with you, are the following: These are the essentials you want to have in your wallet at all times so that you have your bases covered when life goes sideways and to ensure smooth sailing otherwise. What Not to Keep There are also several things you do not want to keep in your wallet. Wallets are a notorious collection point for a surprising amount of revealing information about you and your family. From photographs of your children to identifying information about you. The fewer of the following items you carry in your wallet, the better. Although ideally, you will not carry the following: The idea is that if you meet up with a pickpocket, or lose your wallet, you want the thief or person who finds it to have as little identifying information about you as possible. Digitizing Items It just so happens that most people today are far more security minded when it comes to mobile phones and cellular devices than they are about their wallets. Many of the items you may carry with you can be transferred to digital wallets and stored on your password, fingerprint, or retinal scan-secured, mobile devices. That includes credit card information, passwords to various devices and websites, and family photographs. Keep these items securely locked away from the world by keeping them out of your wallet. What to Do if it is Stolen Once upon a time, a stolen wallet was only a matter of missing money and the hassle of canceling a few credit cards. Today, however, it can be the beginning of a long, drawn-out, nightmare of identity theft and red tape. If your wallet gets stolen there are several things you need to do right away: The better you understand the things you need in your wallet; the better-informed decisions you can make about the items you choose to keep in your wallet. These tips should help.

What Do You Need in Your Wallet?

View Resource What Do You Need in Your Wallet?
Money management skills and financial literacy are two things many adults lament not having a grasp on while growing up. It is a subject that most schools fail to teach. Also, if you are a parent that is economically struggling, you may feel ill-equipped to teach your child about finances. This guide can help you begin your child’s money education early, even before he or she starts school. What is Money? The first step is to teach your child what money is. Not just that it is something people exchange for goods and services; you will need to teach them to understand the value of different values of currency, including coins and dollar bills. Once your child has an idea of the value of money and how it works, teach your child about things that cost nothing, like playing with their friends at home, going to community parks in your town, or playing in the backyard. Then, work on the value of specific items that cost money like food, clothing, toys, and even gas that helps cars take them places. Making Spending Decisions While your child is not nearly ready to hold the keys to the kingdom when it comes to making spending decisions, once your child has an idea of the value of money, it is time to allow your child to make a few small spending decisions. The more practice your child receives making these types of decisions at a young age, the better able he or she will be able to understand the potential consequences of making poor spending choices without getting in over their heads as adults. It is almost always good, though, when you can encourage young children to think critically about money and how they would spend it. Spending Plans Creating spending plans are essential tools to help young children understand where money comes from, where they are spending it, and how it can be used to reach specific goals. The University of Nebraska Cooperative Extension recommends having children answer three specific questions to establish their spending plans:
  1. How much money do they have?

  2. What is their spending goal?

  3. How much money do they need to accomplish that goal?
You can record all the spending your child does each week for three weeks, so your child knows where his or her money is going. Then, you and your child can sit down together and brainstorm a plan that will help accomplish his or her spending goals. Usually, this involves opportunities to earn more money, to save money by spending less, or some combination of the two. Earning Money Unfortunately, most money for pre-school aged children comes, in one form or another, from dear old mom and dad. You can offer an allowance to help them make better financial decisions along the way, as well as opportunities to earn money so they can learn to equate hard work and accomplishments with monetary rewards as well. Since most young children cannot exactly go out and get jobs, you may have to think a little outside the box to help your preschooler learn the value of earning money. While they may still be too young to put these options in place, common options they can begin to learn about, according to The Balance, include: Of course, mom or dad will need to be involved in all these activities, but motivated children can learn invaluable lessons about the rewards of hard work while taking their spending plans to the next level by observing events that bring in extra side money. Takeaways to Help Your Pre-Schooler Learn Healthy Money Management Skills Children are never too young to begin learning the basics of financial literacy and how to handle money. This is how parents can help: Doing these things in a child’s formative years will help them understand the value of money, its importance in modern society, and how they can control their spending rather than being controlled by it.

Things Your Pre-Schooler Should Know About Money

View Resource Things Your Pre-Schooler Should Know About Money
It is more important today than perhaps at any other recent time for children to be financially literate. Unfortunately, financial literacy is not something that gets taught in most schools, and many parents often feel ill-equipped to do so. This guide will help you provide valuable lessons to your grade school child about money. Allowances and Spending Plans One of the most important and earliest lessons that children need to learn about money involves its limitations. You only have so much money, and it can only buy so many items. Allowances and spending plans are ideal tools for teaching them, at early ages when they have safety nets in place, about the importance of both. Allowances teach them to manage their money. You can set the parameters for how they should use their money and how much those allowances should be. Some parents prefer kids to use them for recreational pursuits. At young ages, that may be the best route. As they mature and their spending habits evolve, you can add other parameters (i.e., clothing, cosmetics, personal care items, food or entertainment). Spending plans help children learn how to use their limited funds and allowances to help them accomplish specific goals. They teach them about spending wisely and staying within their means each month while also setting some money aside for items that are important to them. Being Responsible With Money While financial responsibility is often tricky for grade school children, mastering this skill, at this point in their lives, helps them set the stage for impressive money management skills and techniques as they age and find themselves making essential decisions about their spending. Concepts to teach here include: Small things like these teach young children greater responsibility, at early ages, than many college students have upon graduation. Saving and Investing Teach them about the time value of money, how interest works, and the importance of saving and investing money so their money can grow. You especially want your child to understand the concept of compound interest. Financial gurus often list compound interest as the most important thing to teach children about money. As far as saving and investing lessons go, you have to keep it as simple as possible to keep their attention and give them all the critical details. Start with the basics, such as: In all of this, be honest with your children about your own experiences and what you wish you had known and understood at their age. Comparison Shopping Most grade school children have a pretty basic set of wants and needs. Some have specialized interests or want at least one big-ticket item at any given time, such as a new bicycle. Teaching your child to comparison shop for that big-ticket item will help them get that item faster, understand that prices differ from one location to the next and that investing their time and effort can help them spend more effectively. Putting it all Together for Greater Grade School Financial Literacy At the end of the day, you want to lay the foundation for your child to face fewer financial struggles as an adult. Teach your child the basics of things like: Most importantly, allow your child to practice the valuable lessons you are teaching. Doing these things will help your child develop exceptional financial skills that will carry over into adulthood.

Things Your Grade Schooler Should Know About Money

View Resource Things Your Grade Schooler Should Know About Money
The Balance, a personal finance website publisher, recently reported on the alarming rate of medical bankruptcy in the U.S., stating that 643,000 Americans face bankruptcy each year as a result of medical costs. One thing that was shocking about the information gleaned from the many studies conducted on the relationship between high medical bills and bankruptcy is the fact that people who have health insurance are three times more likely than those who do not to file bankruptcy related to healthcare costs. The hypothesis is that the actual protection provided by the health insurance was considerably less than expected once copayments, deductibles, and excluded fees and expenses were added up. Others found their insurance denied claims or excluded specific services, hospitals, or physicians. For all these reasons and more, it is more important in retirement, as you adjust to life under Medicare coverage, to consider supplemental healthcare coverage and protect the nest egg that funds your retirement and avoid overwhelming medical expenses that could cripple your retirement budget. What is Supplemental Health Insurance? Some refer to supplemental health insurance as a type of “gap” insurance. It is designed to plug in holes in your Medicare coverage by filling in the gaps. What this means is that supplemental health insurance helps to pay for the expenses your Medicare insurance doesn’t cover. This includes things like: You might not realize it at first glance, but these expenses can add up quickly, and things like deductibles reset every year. The way supplemental policies for Medicare insurance work is that you pay a monthly fee for the insurance and you get to eliminate the additional debt. Is supplemental health insurance good for everyone? There is no such thing as one-size-fits-all. Every home, family, household, and individual is different. While working and earning a living, a supplemental policy may not be critical. However, that takes on a different relevance once you retire, especially if you are using Medicare. The other thing to realize is that there are different types of supplemental or “Medigap” insurance policies available. AAA reports that there are ten different types of Medigap policies, each one offering different levels of coverage and types of coverage. That can keep things more than a little confusing on the consumer end. It also means you need to think about whether now is an ideal time to invest in supplemental health insurance. Those who are just retiring and do not yet have significant medical expenses may not be ready to invest in additional protection. However, your health status is something that can change on a dime with little notice. Many people feel it is necessary to invest in supplemental insurance for their Medicare coverage from day one. When Should You Consider Supplemental Health Insurance? One key consideration when choosing supplemental health insurance involves whether you are enrolling in Medicare Part B. If that is the case, you should strongly consider signing up for additional Medicare insurance within the first six months of enrollment in Medicare Part B. If you do not purchase supplemental health insurance during this six month grace period, your additional coverage options may be severely limited. Most importantly, failing to do so within the first six months of Medicare Part B coverage eliminates the “guaranteed issue” aspect of supplemental health insurance, meaning you may not be able to enroll at all after the six-month window closes. In other words, the ideal time to purchase supplemental health insurance, if you suspect you will someday need it, is within the first six months of enrolling in your Medicare coverage. Otherwise, you run the risk of being unable to do so at a later date. Key Details about Supplemental Health Insurance With so many bankruptcies every year over mounting medical costs, the average retiree cannot afford to skip out on supplemental health insurance protection. Just make sure you get the coverage most likely to meet your needs today, and as they evolve, best.

Supplemental Healthcare Coverage in Retirement

View Resource Supplemental Healthcare Coverage in Retirement
Almost anytime you book travel online or over the phone, websites or agents will ask whether you would like to purchase travel insurance for your trip. The pitch for travel insurance is usually a hard sell. Companies warn that failure to purchase travel insurance could leave you responsible for cancellation fees and other expenses. The reality is that most people are not sure whether it is necessary or not. They may add it on blindly (or fail to buy it) without fully understanding what it offers or how it might impact their travel plans. It is essential to weigh the pros and cons of purchasing travel insurance for your particular situation since there are many factors to consider and exclusions to take into account. What is Travel Insurance? In a nutshell, travel insurance is designed to protect you, the traveler, from financial losses that could occur during your travel. However, only certain situations and benefits are covered, plan coverage varies, and there are many exclusions. When Should You Take It? One of the prime times to consider travel insurance is when you are traveling out of the country. When traveling abroad, choose a robust travel insurance plan and understand the intricacies of offerings for things like: Even in these situations, you might want to check to see if you have coverage and protection elsewhere, such as through your credit card provider, first. When Should You Skip It? The short answer to this question is “some of the time.” That is the case when traveling domestically on a short trip where the cost of the trip is minimal. Another time to skip the travel insurance is when your credit card company offers protection already. No one wants to pay for the same service twice. More importantly, most credit card companies provide more robust coverage than the average add-on insurance plan when booking flights and hotels. Also, some airlines offer no change fees, which allows you to change your flight without incurring a cost to do so. If you book your trip through an airline offering this perk, then considering skipping travel insurance for this portion of your itinerary. Further, many of the items “covered” by flight insurance are available to airline passengers automatically. Some of them allow airlines to get out of what they owe to passengers, according to Smarter Travel. Lastly, consider the exclusions in the travel insurance plan. A recent NBC news report states that travel insurance protection is actually very thin, and the exclusions make the coverage somewhat sketchy. Those inclusions include things like delays caused by the following common reasons for flight delays and/or cancellations: It also excludes things considered pre-existing conditions, including pregnancy and childbirth or “reasonably foreseeable” problems resulting in delayed or canceled flights from protection. Considerations Concerning Travel Insurance The next time you are faced with the question of travel insurance when booking your travel, consider these points before clicking to buy. Most of the time, the answer to these questions will answer your questions about the necessity of travel insurance.

Should You Take the Travel Insurance?

View Resource Should You Take the Travel Insurance?