Over the years, I have been teaching my children how to manage their finances. With this comes questions, and I may not always have the answers. This is common when parents teach their children about finances because we think they should know the answers or the questions have never come up in our personal lives. My youngest daughter continually asks questions about investing, credit, and budgeting. Here are a few of the questions. When Did You Start Investing? My daughter began investing when she was 14, and I have encouraged other family members to start investing for their children even earlier than that. I started investing in my twenties. This combination of investments included savings bonds, certificates of deposits (CDs), and retirement accounts. At that time, I was focused on saving instead of building my wealth using stocks, money market accounts, or ETFs. Now, I invest heavily in these investment vehicles and have started dabbling in cryptocurrency. Whether you started in your teens, twenties, or thirties, it's never too late to begin investing. It's essential to know your risk tolerance when it comes to investing. This is one reason why I delayed the riskier investments. I didn't feel comfortable risking my hard-earned income when I still had kids at home and other financial obligations that were a priority. If you don't know your risk tolerance, talk to a trusted advisor and your partner so you're all on the same page when making financial decisions. See my feature in How To Make Yourself A Retirement Millionaire. How Often Do You Pay Your Credit Card? I added my children as authorized users on my credit card to get experience managing credit and build their credit scores simultaneously. When you add an authorized user to your credit card, their purchasing and payment activity can affect your credit and theirs. As a result, I had a conversation with my children to let them know that it's essential to stay aware of their credit card balances. This included knowing credit card due dates and knowing when interest would be charged on their purchases. So, I encourage them to pay their credit card balances at least semi-monthly to avoid any late fees or interest. See my feature in 9 Secrets Habits of People With Credit Scores Above 800. How Often Do You Balance Your Checking Account? The answer to this question depends on my purchase activity for the month. I balance my checking account at a minimum twice a month for the most part. Balancing my budget semi-monthly helps me ensure that all paycheck deposits, automatic transfers, bills, and regular monthly expenses are accounted for. It also helps to keep my spending in control. If I notice that I'm spending more on groceries than the previous month, I work to find different ways to stretch our meals or cut back in other spending categories. See my feature in Conversations To Have Once Your Teen Starts Earning Money. Getting Comfortable With Questions Whatever the questions are, it's okay to be uncomfortable at first. As I mentioned, I don't always have the answers, and you may not either. But after a while, you will find that it gets easier to answer the questions and share information with your teens. If you don't know the answer, let them know that and find the answer together. Finding the answers together can encourage your teen to continue the money conversation and prepare them for making financial decisions on their own.

Do you want to learn how you can pay cash for your vacations? Well, here are a couple of ways that my husband and I fund our vacations without using credit cards. It helps us keep our vacation budget in check and eliminates the financial impact on our regular monthly expenses. We started taking semi-annual trips about three years ago, so we've learned a few traveling tricks. Plan Your Vacations In Advance When planning for a vacation, it's essential to plan as far as possible in advance. Planning allows you to know what to expect financially for your vacation. Many hotels and resorts will enable you to book at least 18 months in advance, which will make it easier to plan. If you know how much it's going to cost, you will be able to adjust your budget and save accordingly. See my feature in How You Can Save on Travel on a Tight Budget to choose wisely when deciding when to travel. Take Advantage of Paying Later If you are going on a cruise or booking an all-inclusive resort (my favorite), you may have the option to pay later. Many popular vacation destinations and cruises allow you to pay on your vacation monthly, 90 days in advance, or once you arrive at your location. Again, planning will enable you to build up your vacation budget or add it to your monthly savings budget for the year. This will eliminate the need to pay all at once using your credit card. Create a Souvenir Budget It was my husband's idea to create a souvenir list. So, we sat down together and made a list of everyone we wanted to souvenir shop for. We also listed the items we wanted to get for each individual, magnets, t-shirts, bracelets, etc. This included items for our neighbors who collected our mail, family members, and coworkers. Then, we created a souvenir budget. We ended up spending less on souvenirs than we expected and were able to redeposit the remaining funds back into our savings account to be used for our next vacation. Haggling with the vendors helped reduce our spending a lot. Don't be afraid to haggle. Plan for Excursions If you don't want to stay on the cruise ship or the resort property the entire time, it's essential to research and budget for excursions. For the most part, planning for tours at resorts may cause you to pay more. So, we plan our excursions through a reputable source such as Viator and end up saving hundreds of dollars. We've used Viator on our last two trips and loved every tour guide they assigned us with. Just remember to take tips for the tour guide. Tips Speaking of tips, you should include money for tipping in your vacation budget. Some resorts like Sandals don't require tips, but you may have luggage or a driver to your destination if you are flying. It's a good rule of thumb to tip them a few dollars because they tend to make most of their money from tips. See my feature in Keeping Up with the Joneses (Tip 2). Stick to Your Budget Sticking to your budget is essential. If you see that you are running low on funds, avoid the temptation to use your credit card for excursions, dinners out, or souvenirs. You have already planned and set a budget, so keep your budget in mind when traveling alone or with friends.

I am sure you've heard the phrase that 'nothing is certain but taxes and death.' There are many types of taxes that individuals must pay that consist of federal, state, payroll, self-employment taxes, and more. Taxes paid fund schools, roads, the government, and many other things. So, why do we pay taxes, and which ones apply to you? Here are four types of taxes that you need to know. As an Advertiser, this post may contain affiliate links to E-file. Federal & State Income Taxes You may see federal income tax deducted from your gross pay if you work for an employer. When you completed your W-4, you would have selected the allowances or adjustments you wanted to withhold from your paycheck. You can adjust these withholdings throughout the year if you think too much or too little tax is deducted from your gross pay. State income tax is also deducted from your gross pay like federal income tax. There are seven states with no payroll income tax. Many fixed-income retirees live in states with minimal to no state tax requirements. You can E-File a State Tax Return using E-file. If you qualify for their Basic Software, you could also qualify to file your federal taxes for free See my feature on Yahoo, where I discuss how to manage your tax refund. Self-Employment Taxes You may be subject to the self-employment tax if you own your own business. If you operate your business consistently and the sole purpose is to profit, this tax may apply to you. Depending on the type of business you establish, you may be able to file a Schedule C with your tax return, or you may have to file a business tax return. Property Taxes If you own property such as a home, you will have to pay annual property taxes on the home's value. These taxes are collected by the city where you live, and tax rates can differ based on the value of your property. Some states allow property tax exemptions for specific individuals. For example, Florida offers a $5,000 property tax exemption for eligible disabled veterans. If you are a 100% permanent and total disabled veteran in Florida, you can apply for a complete property tax exemption. However, eligible residents must still pay specific non-ad valorem assessments. Sales Taxes Whenever you make a purchase in-store or online, you may see that you must pay tax on your items. Sales tax can apply to groceries, furniture, vehicles, travel, clothes, and any other things you can consider. Some states may charge a sales tax on food items, and others may not. Many states offer a tax-free holiday during the beginning of the school year as a way for families to save money on their purchases. Not only is this beneficial to the consumer, but it can also increase sales for business owners. See my feature in the Back-to-School Budget Planner to see how you can take advantage of your state's tax-free shopping.

Voluntary contributions or deductions from your pay can affect your net take-home pay. Voluntary contributions are considered to be flexible spending accounts, dependent care accounts, retirement contributions, and more. These voluntary contributions can reduce your current tax rate and potentially increase your net take-home pay because they are considered pre-tax deductions. These contributions or deductions are included in your employer's cafeteria plan, and participation is optional. What's a Cafeteria Plan? A cafeteria plan can be described as going into a high school cafeteria and you get to select what you want to put on your tray. You may consume some of the items you choose, and other options are declined. Read below to learn more about what are pre-tax deductions and contributions and how they are deducted from your gross pay. What are Pre-Tax Deductions? Flexible Accounts You can use Flexible Accounts for daycare and medical expenses. A Flexible Spending Account (FSA) can be used for qualifying medical purchases throughout the year. With an FSA, you can pay for eyeglasses, dentures, over-the-counter medication, menstrual supplies, and more using an FSA card. You can use the Dependent Care Account (DCA) for qualified daycare expenses. If you decide to contribute to an FSA or DCA, your contributions will be deducted from your gross pay using pre-tax dollars. See my feature in Smart Ways to Use Up Your FSA Before the Year Ends Retirement Contributions Contributing to your retirement can help you build a secure financial future. Whether it's a 401(k), 403(b), or other qualified retirement plan contributing a portion of your income can increase your current and future wealth. If you elect retirement contributions or your employer auto enrolls you, contributions will be deducted from your gross pay. View the calculation below to see how a 10% retirement contribution rate could affect your gross income*. See my feature in the Retirement Planning Guide Insurance Benefits If you've elected medical, dental, vision, life insurance, or any other insurance benefits through your employer, premiums will be deducted from gross pay. Premiums for insurance benefits can become expensive, so it's essential to understand that your employer shares some of the costs. The term that relates to this is cost sharing. For example, if your employer shares 70% of the cost of your family medical premium and you pay the other 30%, the monthly breakdown could look like this: 0.30 x $1,100 = $330 Your shared cost x monthly premium = premium you pay 0.70 x $1,100 = $770 Your employer's shared cost x monthly premium = premium your employer pays Understanding an employer's cost share is essential when negotiating your salary. Cap Contribution Limits There are cap or maximum contribution limits that you can make to some of these plans. For 2022 the annual maximum you can contribute to an FSA is $2,850. Dependent Care contributions vary based on your tax filing status. Rates were increased in 2021 when the American Rescue Plan Act was signed into law. Basic defined contribution plan (401(k)) contribution limits are capped for 2022 at $20,500. It's important to note that there are maximum contribution limits, but your employer has the option to choose a lower amount. *This example calculation assumes gross pay is $30,000, a 10% retirement contribution, no state taxes, semi-monthly pay frequency, and federal filing status of single.

The tax season is almost here. Prepare for tax season with advice that can help you eliminate April woes. You may even be able to file your taxes for free if you meet specific income-level requirements. Last year I volunteered to file taxes for free with the United Way's RealSense program under the IRS's Volunteer Income Tax Assistant program. Well, this year, I'm back at it! I will volunteer with AARP Tax-Aide to help seniors file their tax returns. To find out if you are eligible to file for free, visit the IRS's website and search for a VITA center near you. Before you go, here are a couple of tips to help you prepare to file your taxes. As an Advertiser, this post may contain affiliate links to E-file. Gather Your Documents If you are not going to file your taxes on your own, it's essential to ensure that you have all the appropriate documents to file your taxes. Having all your needed documents can reduce the number of trips you need to make and expedite receiving your refund if you are due one. The most common documents you may need to take with you are your W-2s, interest income statements, identification documents like your social security cards and photo ID, unemployment income, mortgage interest, and charitable donations. The least common documents are gambling income or losses, jury duty records, and even canceled debt. Canceled or forgiven debt is considered taxable income, and you must report this on your tax return. File Your Taxes Securely Online After you've gathered your documents, it's time to file your tax return. Filing your taxes online can help you complete your tax return in the comfort of your own home. Using E-file, you can file your taxes securely and quickly. You can also choose to save all of your tax return or for your future goals. If you qualify for E-File's Basic Software, you can also file your federal tax return for free. 3 Effective Ways To Manage & File Your Taxes Research Potential Deductions When filing your tax return this year, you may be eligible for numerous deductions. So, will you file using the standard deduction or the itemized deduction? It depends on whether or not you have eligible expenses that will lower your tax rate even further using the itemized deduction. Expenses like mortgage interest, real estate taxes, medical expenses, or charitable contributions you've paid can increase your eligibility to itemize. If you don't have these types of expenses, then you may automatically be required to take the standard deduction. You can qualify for other deduction credits: educational expenses, qualified childcare expenses, educator expenses, and even retirement savings credits. You will receive documents of any expenses paid from eligible institutions to help determine your eligibility. Consider Saving Your Tax Refund Once you have filed your taxes and found out that you're eligible for a refund, consider saving a portion or all of your refund. Before clicking the submit button, most tax software asks you to purchase savings bonds with all or some of your refund. This automatic saving method can help you build your future wealth. Savings bonds are a safer alternative than other investments when investing in your future wealth. You can also consider using a portion of your refund to reduce your debt. Paying down debt is considered saving since you reduce the interest you pay on past purchases. No debt? Then consider building or increasing your emergency fund. We all know that unexpected events occur, so having an emergency fund can reduce the need to use credit cards or loans to cover emergencies. See my feature on Yahoo, where I discuss how to manage your tax refund. Evaluate Your Tax Withholding My final note is that receiving a refund may not always be a good thing. If you constantly receive a large refund when you file your taxes, then your withholdings on your W-4 form may need to be adjusted. Receiving a large refund can mean that your withholdings are incorrect and that you have too much of your income withheld from your pay. Having too much tax withheld is a free loan you give the government every time you get paid. If you need assistance filling out your W-4, visit the IRS's website and use the withholding tool to determine your best options.

As a parent, you can teach your child how to budget by having conversations about income, spending, and saving every day. Even the most minor thing can be a positive discussion about money habits. Having a family money conversation with your children at an early age can motivate them to learn more. You can accomplish this by starting with age-appropriate discussions to boost your child's financial literacy and yours too. Here are a couple of tips on how you can get the conversation started. Budgeting For Groceries One of the most significant expenses is the grocery budget as a parent. Your family can save money by planning your meals as a family. You can accomplish this by inventorying your freezer and pantry items to determine what groceries you need for the week or month. Keep a few staples such as dry goods, beans, pasta, and canned vegetables stocked in your pantry. These are fillers in the meal and have a long shelf life. Keep a stock of proteins, frozen vegetables, and prepared oven meals in your freezer. Planning meals as a family and in advance allows you to reduce your grocery budget and teaches your children grocery shopping habits. It can also eliminate the need to stop at fast-food restaurants on the way home from work. Helping Children Set Money-Saving Goals Teaching your children about money, budgeting, and saving for goals can help them build a solid financial future. When my husband and I have conversations about money, we bring the children to the table to encourage them to talk about money and goal planning. Teaching your children to save funds they receive from an allowance, holidays, or birthdays for a goal they have set for themselves creates an invaluable teaching moment. Their savings goal could be to purchase a toy, a new dress, or books. When they finally make the purchase, children tend to value the item that much more. See my feature in Conversations To Have Once Your Teen Starts Earning Money. Helping Children Track Expenses Once your child sets a goal, teaching them how to track their expenses is essential. Your child can track deposits, interest, and purchases using a check register, Excel spreadsheet, or budgeting app. Tracking their flow of income can help them realize how money flows and encourage them to save for short-term and long-term goals. It can also show them the result of spending their hard-earned savings and guide their future spending. Talking with Your Children About Credit Does your child know what happens when you swipe your credit card? They may or may not know that you have to pay for purchases after using your credit card. Teaching your child how credit works is essential when teaching them how to budget. Whether for furniture or grocery purchases, it is vital to show them that you must repay all purchases. Have a conversation with your child to show them how you repay your credit card purchases and the result of any interest you may pay for carrying a balance on your credit card. Ultimately, it can reduce any credit card debt they incur as adults.

Parents with teens are on the verge of raising young adults preparing to begin their first job or heading off to college. When teens get their first job, they may want to spend their first paycheck on a shopping spree. That is why it's so important to teach children age-appropriate money habits before getting their first job. Young adults face insurmountable credit card and student loan debt, so teaching your teen positive money habits is essential. Teaching Children How to Save Money Parents should encourage their teens to save money and set financial goals to understand the practice of budgeting, saving, and investing. Encouraging saving and goal setting with teens helps build a solid financial foundation for their future. In addition, knowing how to budget and save for goals can reduce the chances of getting into uncontrollable debt in the future. Money Lessons Finance 101 for Kids: Money Lessons Children Cannot Afford to Miss (Ad) can help your teen understand interest, budgeting, investing, and other basic financial lessons. Andal also covers the fees associated with a bounced check. Today's teen has probably never used a check or seen you use a check. However, they may receive a checkbook when they open their first checking account and should understand the responsibilities of the payer and the payee. Many other lessons can help you start the conversation with your teen about money management. Helping Teens Save for the Long-Term Saving can help teens prepare for financial responsibilities later in life because it can reduce the need to get into debt using credit cards or obtain loans with high interest rates. It can also show how putting away a little money can grow over a long-term period. Having a savings account in addition to an emergency fund can help ensure that you can pay for unexpected expenses with cash. Ultimately, preparing for financial obligations in the teenage years will set a solid foundation for budgeting and saving for future goals. See my feature in Conversations To Have Once Your Teen Starts Earning Money. Teaching Teens How to Budget Teens can learn how to balance a budget at home to be prepared for life after high school. Most college students leave home with limited knowledge of how to manage their finances. A survey by Piper Sandler found that teens spend 22% of their income on food and 21% on clothing. Spending will increase even further as the effects of the pandemic lessen. For this reason, teaching your children to budget at home can help them manage future student loans, scholarships, and household expenses such as rent or groceries. It can also decrease the need for their parents to fill in the gap when they run short on cash. Teaching Teens about Investing Parents can start investing on behalf of their teens by opening up a custodial investing account. The money in a custodial account is in the teens' name and can be transferred after they turn 18. It's a good practice to have your teen by your side when you are investing on their behalf. It can help them understand how to invest, the market, and how market fluctuations affect their investments. Continuing The Conversation It's essential to continue to talk to teens about money. Having continual money conversations can develop other questions that build on their financial knowledge. It's okay if you don't know the answer to their questions. You and your teen can learn together and realize that not knowing the answer is common. Constant discussions about money also imply that their financial situation should be monitored and adjusted as their financial goals change.

Debt can come in many forms. Debt can consist of payments due for auto loans, credit cards, mortgages, payday loans, student loans, and even borrowing from your retirement accounts. Debt management may seem like a chore. However, keeping track of what you owe can help you build a solid financial future and eliminate future financial stressors. Read on to discover the four most common types of debt. Managing Your Credit Cards It's no surprise that credit cards top this list. You may see credit card offers on television, in your mailbox, and even in your emails. It's essential to monitor your credit card usage to ensure you use it responsibly and not for every purchase you need to make. A good habit is to pay cash for any purchases under $20. See my feature in 10 Signs Your Spending is Out of Control. Finding the Best Auto Loan For most individuals, transportation is a need. You need it to get to work, go grocery shopping, and ensure that you have a reliable means of transportation. As a result, you may require an auto loan if you don't have the cash on hand to pay for your new or used car in full. To control your auto loan debt, it is essential to consider the loan's total cost and evaluate your loan options. If you are a member of a credit union, you may be able to get a better deal than the dealership is offering. Understanding Mortgage Loans Mortgages typically are between 15 and 30 years. It's a debt that never seems to go away. However, you can reduce the time you have to pay for a mortgage by paying additional towards the principal. I lowered my 30-year mortgage to eight and a half years by adding additional payments toward the principal every month. This method saved my family over $140,000 in interest. Here's a great book that can help you on your credit journey. Your Score: An Insider's Secrets to Understanding, Controlling, and Protecting Your Credit Score (Ad) How to Fund your College Education Providing that you want to increase your income or move on to the next step in your career, you may need to take out a student loan. However, other options can help you avoid student loan debt. You can find scholarships or grants and use employer tuition reimbursement to fund your education. If you still require a student loan, federal student loans are preferred over private student loans. Federal student loans give you a better interest rate, and loan forgiveness may be available if you work in public service for ten years.

Building your resume can sometimes feel like an art form. You should include the required items on your resume, like your job title, dates of employment, and your job accomplishments for each role. However, there are also items that you should leave off of your resume to avoid various types of discrimination. The following are standard items that you may include on your resume that can subject you to bias and how you can prevent it. This post contains affiliate links and I will be compensated if you make a purchase after clicking on my links. Don't Put Your Address on Your Resume Including your address on your resume lets the potential employer know that you are near their physical office. Adding your address can be advantageous if the employer is looking for someone who does not require relocation expenses or looking for a remote opportunity. However, this can lead to zip code discrimination. Zip code discrimination occurs when there is bias based on where you live in a specific city. To avoid bias based on your location when crafting your resume, you can enter the city and state in which you live. If you are selected to move forward, you can provide more detailed information as needed. Remove Your Graduation Dates from Your Resume If you're a recent college grad or have had your degree for 20-plus years, this can show employers that you are someone who continues their education or is experienced in your field. Many employers look for recent college graduates because they can hire them at a lower salary due to their inexperience in their field. On the other hand, if you graduated 20 years ago and your graduation date on your resume could lead to age discrimination. Recruiters or hiring managers may be able to calculate your age based on when you graduated from high school or college, which can cause you to be passed over for that sought-after opportunity. The solution is to enter the degree you received and the college you received it from without your graduation date. Advertiser Disclosure See 8 Things to Do After Being Laid Off. Edit a Lengthy Employment History When applying for an opportunity, you want to show the employer why you're the best candidate for the job. Displaying that you are the best candidate may mean that you want to include all of your relevant experience on your application. Right? The answer is sometimes no to this situation if it may lead to age discrimination. If you are applying for entry-level or management-level positions, the past 30 years of your work history may not be needed. It's essential to include your most recent and relevant work history in your resume and keep it to, at the most, two pages in length. See how to Organize Your Job Job Search. Remove Photos, Headshots, and Selfies from Your Resume You will rarely include your photo on your resume, but it may be required for some professions. If you are submitting a curriculum vitae or are looking for employment in the medical field, these are two instances in which a photo may be required. Presuming that you are not entering the medical or teaching industry, you should leave your picture off your resume. Most employers will pass over resumes with photos to avoid any potential discrimination or unconscious bias. A best practice is to use your headshot for your LinkedIn profile or website. After you've updated your resume, you need to ensure that you are prepared for the interview. Here are a couple of tips from me and other HR professionals on how you can prepare to land your next career. Advertiser Disclosure

The ushering in of the new year enables you to start afresh with your future goals. It gives you time to reflect on your past and current plans and give them new life. If you set your financial goals for the year, did you accomplish them or make progress? If you did, congratulations! If you did not, that's okay too. Here are five financial goals that can guide you in building wealth and securing your financial future. How to Set a Budget and Stick to It Setting a budget for your expenses, savings, and future goals can help you keep your budget on track. Determining what you will spend on groceries, personal care, entertainment, and even gifts can help ensure that you don't overspend in those categories. It's essential to keep track of your budget using a notebook, Excel, or a banking app to ensure you know how much you're earning, spending, and saving every month. Keeping track of your income, expenses, and savings will enable you to make adjustments to your budget. Pay Down Your Debt Reducing your debt can save you money in the long run. You save money by reducing the fees and interest that you are paying for your purchases. Here are three ways that you can reduce your credit card debt. Start an Emergency Fund You can't always predict when emergencies will occur, but you can plan for them. While establishing your budget, you can create a separate account to save for emergencies. Building an emergency fund for unexpected expenses can eliminate the need to use credit or loans to cover the cost of home repairs or your medical needs. A popular rule of thumb is to set aside at least three to six months of your monthly expenses in an emergency fund. Plan For Retirement The earlier you start to plan for retirement, the better. Setting a goal to begin your first paycheck of the year with an adjusted retirement savings rate can reduce your taxable income. Pretax contributions to a 401(k) or 403(b) can be made automatically through your employer using a payroll deduction. Your retirement savings will occur before your regular pay enters your checking account! If you've already started planning for retirement, continue building your retirement by maximizing the employer match. It's free money. After maximizing the employer match, contribute additional income to prevent future debt later in life. See my feature in MoneyRates: Retirement Planning Guide. Improve Your Financial Literacy You are one step closer to improving your financial literacy if you've read this far. Expand your financial knowledge by reading financial books, like the Psychology of Money and discussing your financial situation with a trusted resource. Having conversations about money can bring up financial options that you have not considered when managing your money. There are also many YouTube videos and other free resources that can guide you in building wealth and securing a solid financial future. Need additional financial insights? Feel free to reach out to me for a one-on-one consultation.

Buy now, pay later (BNPL) is prevalent in today's consumer market. Buying now and paying later enables you to purchase economical or big-ticket items without using your credit. The advantage is that you don't pay interest on things you would typically buy using a credit card or loan. It's best to consider other key factors when evaluating whether buying now and paying later fits into your budget. Let's review some key points to examine below. Is Buy Now, Pay Later Interest-Free? Using BNPL, you can finally purchase items without being charged interest. BNPL enables you to pay for the item's actual value and can help you keep your budget intact. Typically, you would pay between 12% to 25% interest on your overall purchases when using a credit card. Estimating what you are paying for an item can be challenging if you do not pay your balances off monthly. BNPL eliminates the guesswork. How Affordable is Using Buy Now, Pay Later Sometimes it may be challenging to purchase items that are not in your budget. Using the BNPL model, you may feel that you can now afford purchases that you have been delaying for months or years. These items could include furniture, appliances, clothing, or even groceries. During the holiday season, prices increase, and using BNPL could be an excellent opportunity to enjoy this time of year. See Top 4 Ways To Budget For The Holidays Do You Need a Credit Credit Check Or Approval for BNPL? BNPL does not require a credit check or pre-approval. When you enter a store or shop online, you can select BNPL without it affecting your credit. This means that it will not show up on your credit report as an inquiry. If you want to make a home purchase soon, the BNPL model is advantageous because your debt-to-income ratio and credit are examined closely during this time. Can I use BNPL If My Credit Cards are Maxed Out? Is your credit card maxed out? If so, BNPL can provide you with another method to afford your future purchases. However, if your credit cards are at the maximum, this may be a sign that you should reduce your spending and start paying down your debt. BNPL may be enticing because you don't have to pay the balance right away, but it can encourage you to make additional purchases that you can't currently afford. Are there Penalties or Late Fees for BNPL? There are penalties for not abiding by the agreements set in the BNPL model. It's essential to ensure that you pay the installments or total balance of your purchase so that additional fees are not added to your total amount due. These fees are similar to what you would be charged if you paid for your credit card, utilities, or cell phone bill after the due date. So, try not to overextend your budget and keep track of when your bills are due by enrolling in automatic reminders. Overspending BNPL can encourage overspending. It's essential to know your limits when using BNPL. BNPL is a tool, and you should use it in moderation. Evaluate your priorities, future goals, and budget to determine if you need to purchase the items in your cart. Conducting a self-assessment of your financial roadmap can help ensure that you control your financial situation.

Financial technology can be accessed from anywhere. You can access financial technology from home, work, and even while you're on vacation. Leveraging financial technology can help you achieve your banking and savings goals. Opting in for financial alerts can be accomplished by logging in to your financial institution's websites and setting up alerts specific to your financial goals. Here are five ways that you can take advantage of fintech. Setting up Low Balance Alerts Opting in for low balance alerts lets you know when your checking account balance reaches a certain level. This notification will help you cover any expenses or purchases that you plan to make. You will also be able to reduce your spending so that your balance does not decrease further. Some banks will charge you fees for not maintaining the minimum required balance. Reducing your spending can eliminate insufficient fund fees that can continue to drain your bank account balance. Opting in for Monthly Statement Notifications Getting notified that your statement is ready can trigger you to log into your account to view your income and expenses for the month. Checking your credit card statements and reviewing them will give you a breakdown of your purchases, interests, and any fees you were charged for the month. Being aware of your monthly income and expenses can help you find ways to save or cut back on your spending. Verification Of Deposits And Withdrawals You can sign up for text alerts on your phone when deposits or withdrawals are made on your account. Being notified of deposits informs you that your paycheck has been deposited and the amount. In addition, if you are looking for a transfer from someone else, you can be notified when it has made it to your account. Getting notified of withdrawals from your account triggers you to check and ensure that any withdrawals are legitimate. Payment Due Notifications Opting in for notifications that your payment is due is very beneficial. Payment due notifications can help ensure that you don't miss payments for your utilities, credit card, mortgage, or other loan balances. It can also eliminate any fees or interests that may be charged because of late payments. If your bank does not offer financial technology, you should see my feature in 10 Steps to Finding a Better Bank to recognize how you can make the best of your banking needs. Fraud Alerts Opting in for fraud alerts is essential. Fraud alerts can notify you of suspicious activity that occurs on your accounts. Getting notified of fraudulent activity on your checking account is highly advantageous because you have 60 days to report the activity or risk losing your refund. In addition, if there's fraudulent activity on your checking account, it's essential to stop that as soon as it happens because it takes time for the banks to do their investigation, up to 45 days. During that time, you may risk missing your mortgage, car, or utility payments. These missed payments and fraudulent activity can affect your credit and your credit score. What other ways can financial technology help you achieve your financial goals? Leave a comment below.