Money Management

Like it or not, artificial intelligence is changing the way we shop. Here’s what you need to be aware of. 

It wasn’t that long ago that applying artificial intelligence (AI) to everyday activities seemed like something straight out of The Jetsons. Yet here we are, using AI to find our way around town, translate one language to another, diagnose medical conditions, and shop. Retail has embraced AI, counting on its power to make customers happy and increase revenue. In order to become a better-informed consumer, here’s some of what you should know.

Smile, AI-powered cameras and sensors (could be) watching you

According to a 2020 article in Forbes, retailers are using AI-powered video surveillance to see what customers buy. Further, thanks to self-checkout, these retailers can log the quantity and weight of items purchased. Being able to log what consumers buy allows retailers to restock popular items before there’s a shortage, which many of us can agree is a positive thing. After all, who wants to trek to the store at midnight for baby formula only to learn it’s not in stock?

However, a murkier advancement of AI centers around video technology that helps identify shoplifters, what they took, and the value of those items. On one hand, cutting down on shoplifting helps lower prices for the average customer. On the other hand, the technology is new enough that it’s fair to worry that someone might be misidentified as a shoplifter. According to the same Forbes article, data can identify shoplifters based on previous behavior, flagging them to store managers the next time they enter the store.

AI-powered cameras and sensors are also used to track the in-store movements of ordinary customers. This ability allows a retailer to arrange its store to make it easier for customers to pick up the products they most commonly buy. While that’s good for the customer, AI-powered cameras also make it easier for retailers to optimize their profits by making sure higher-priced items are within easy reach.

Those personal recommendations? They’re coming from inside the house

Most of us have searched for an item online, only to receive online ads for that product over the next few days. That’s due to AI-driven engines that analyze our browsing history, purchase history, and preferences to customize recommended products.

Let’s say you’re a pet owner who frequently buys dog food online. You are the ideal audience for pet toys, beds, training, and other pet-related products.

Again, from a retailer’s perspective, this is a good thing. AI enables merchants to offer you products you may be interested in, rather than flooding you with ads for items of no interest to you. If you’re a person who tends to overspend, though, the constant temptation to spend more may not be so positive.

Chatbots: Friend or foe? (Talk among yourselves)

When was the last time you attempted to reach a customer service department? Whether you called your bank or logged online to “chat” with a customer service department, there’s a fair chance you reached a chatbot (my credit union calls its chatbox Bob). Is it annoying? Absolutely. However, it also has an upside. As long as you ask a basic question, you can receive an immediate response 24 hours a day.

The frustrating bit is when it’s the middle of the night, and you realize your credit card or bank account has been hacked. Sometimes, you just want to speak with a real human.

Visual search is like retail GPS, taking you where you want to go

No matter how you feel about AI, it’s hard not to be impressed by visual search. Say you’re looking for the name of an unusual piece of fruit you ate on vacation. You’re not exactly sure how to describe it or what to type into a search bar, but fortunately, you took a photo.

Using your smartphone, tablet, or computer, you upload the photo and wait for the visual search tool to identify the kind of fruit you were served.

And you know that great dress your sister wore to your cousin’s wedding? Take a quick pic, and if you so choose, you can conduct a visual search and buy one in every color. Take that, Becky.

Like many things in life, AI is a mixed bag. It has the potential to make life easier, but can also feel pretty intrusive. Since it does not appear to be slowing down, perhaps the best you can do is find ways to use it for the benefit of your personal finances. That may include using AI as a reminder to end unwanted subscriptions or let you know a bill is coming due. It may mean letting AI dig for product discounts or even help you become more comfortable investing. The point is, if AI is going to be around, it might as well help make your future brighter.

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It’s no surprise that some online purchases don’t work out. Here’s what you can do if you want a refund, but it’s just not coming. 

It’s barely been a month since we were busy figuring out our personal finances so we could buy holiday gifts for the people we care about. But with the winter gift-giving holidays behind us, you may now realize that one or more of those purchases didn’t work out. If that’s the case, there are things you can do. According to the Federal Trade Commission (FTC), these are the steps you can take to secure a refund.

Work with the retailer

Go back and look at the retailer’s return/refund policy. While there, make sure you’re still within the return deadline. Some stores will not accept returns or exchanges after a specified number of days.Follow return instructions to the tee, including any documentation the retailer wants you to include with the return. Keep a copy of everything.The retailer’s return/refund policy should show how long you’ll wait for a replacement or a refund.If nothing has happened by the time the stated time expires, reach out to the retailer, preferably by phone.If the retailer does not provide a customer service number but does offer a customer service email address, send an email asking about the status of your return. Remind them of your original order number and your payment method (for example, whether you paid via PayPal or with a credit card).Send a follow-up email if you don’t hear back from the retailer within 24 hours (unless it’s a weekend). Again, keep a record of all correspondence.

Sadly, some online retailers will ghost you like a bad date once they know you’re not happy with a purchase, and you’ll need to take things further.

Escalate the matter

If you’re not getting the response you need via phone, ask to speak with a manager. Be calm but persistent as you seek a remedy. Managers typically have more authority and flexibility when it comes to resolving issues. If you don’t get the response you need via email, find out if there is a specific customer complaints department you can reach out to. In any case, continue to send emails.Keep notes about each step you take to resolve the problem, including a list of people you speak with, the date you speak with them, and any promises made. If you chat online or send anything to customer service, save a copy of what was written.

Seek outside help

If you are not satisfied with the retailer’s response to your concern, you have other options, including:

Contact your state attorney general. You could also try your state consumer protection office. These government agencies have the power to conduct investigations and take action against retailers who break consumer protection laws.Reach out to a national consumer organization like Call for Action. Consumer Action is another option.File a report with the Federal Trade Commission (FTC). The FTC works by helping law enforcement discover retailer patterns that could lead to an investigation.

Post an online review

If you can’t come to a resolution with the retailer, you’re free to post an online review of its business practices thanks to the Consumer Review Fairness Act. This act protects consumers who share their honest opinions in any forum. Even if that money is never returned to your bank account, you may save someone else from the same frustration.

Ideally, we’d get every purchase just right, but it doesn’t always work out that way. When a purchase goes wrong, keep in mind the options at your disposal.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Dana George has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: short March 2024 $67.50 calls on PayPal. The Motley Fool has a disclosure policy.

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Adulthood is all about paying bills — but missing your credit card bill can have major consequences. Learn what to do if you can’t pay a credit card bill. 

Adult life is complicated. There are so many bills and responsibilities to juggle. It’s pretty common to miss credit card payments — research from Clever Real Estate found that 43% of credit users have done so in the last five years (and 14% did last year).

But while this might be a frequent occurrence among Americans, it’s certainly not ideal. Here’s why — as well as what you need to do if you can’t make a credit card payment.

What’s the harm in missing a credit card payment?

Missing a credit card payment can be seriously bad news for your finances, and in particular, your credit score. Your payment history is the largest part of your FICO® Score, at 35%. This makes sense — lenders prefer to loan money to people who can be relied upon to pay that money back on time and in full. If you’ve struggled with on-time payments in the past, it’s likely reflected in your credit score. Conversely, even if you’re in debt, having a stellar payment history can help keep your credit score afloat.

If you’re starting from a place of good credit, missing a credit card payment (or paying it 30 days or more late) will have an even more severe adverse effect on it. A score of 780 could drop by as much as 110 points after 30 days, and further if you’re even later with your payment — or skip it entirely. And you’ll end up with a black mark on your credit report.

In addition to the credit score damage (which basically guarantees that you’ll have difficulty borrowing money again in the future), you’ll face late fees from your credit card issuer. If you’re less than 30 days late with your payment, your credit score may be unscathed — issuers report to the credit bureaus monthly, so if you’re just a few days late with your payment, you might not be reported as late. But credit card late fees aren’t any fun — they typically amount to $25-$40, and if you’re already struggling financially, do you need another bill on top of that?

I can’t make my payment — now what?

If you’re struggling, the prospect of hiding under your bed and pretending you don’t owe your credit card company might be more appealing than picking up the phone. But sincerely, the best thing to do in a situation like this is to call the issuer. Your credit card company has a vested interest in keeping you as a customer. So get in touch, and see what your options are — ideally, before your payment is late.

Tell the fellow human on the other end of the line that you can’t afford your payment, and explain why. You might be able to skip a month’s payment to help get your finances back on track, or maybe your card issuer has a hardship program you can join. You might get a break on your interest rate, waived fees, or possibly a deferment of your payments for a period.

Hardship programs might have consequences like a reduction in your credit limit or the closure of your account, but it’s better than the alternative — dealing with mounting credit card bills and severe credit score damage.

Being unable to afford your credit card payments is scary, but trust me, credit companies have heard it all before. So try not to panic, and give yours a call — you might be surprised at the options you’ll have to remedy the situation.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
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Sick of throwing out ingredients that have gone to waste? SuperCook is a free app that can help you stay organized and find recipes using food you have. 

You’re not alone if you’re sick of leaving the grocery store feeling broke. Compared to a few years ago, many of us are paying significantly more money to fill our fridges. Higher food prices are now the norm, but you can still make strategic moves to avoid overspending.

Mobile apps can make it easier to save money. Find out more about an app that could help you stay organized and better plan what meals to make so you don’t waste food or money.

Don’t let the food essentials you already have go to waste

Many shoppers neglect to take regular inventory of their food before grocery shopping. You likely have basic cooking staples and canned goods in your cupboards. When did you last look at what you have at home before going to the store? If it’s been months, keep reading.

You need to take inventory before making a grocery list to avoid buying unnecessary items and wasting money. Discovering you have food that’s long expired can be upsetting. But with good inventory practices, you can prevent this from happening.

Use mobile apps to stay organized and informed

Mobile apps can help you be better organized. One example of a helpful app is SuperCook. With this app, you can keep track of your current grocery inventory to know what ingredients you have to make informed decisions while at the grocery store. It’s free and can be downloaded to iOS and Android devices.

You can add items to your pantry by manually searching for them or selecting popular ingredients suggested within the app. You can also deselect items to remove them once you use them up. SuperCook also has a shopping list section where you can list items you need to buy the next time you shop. There will be no more forgetting your paper list at home!

Stretch your money further with free recipe suggestions

Here’s another way SuperCook can help you save money. Once you input your ingredients, the app will recommend recipes you can make. This feature makes it easier to plan meals for the week by maximizing what you already have so you don’t waste food.

The app also lets you search for recipes that only require one missing ingredient, so you can make your upcoming grocery trip more affordable. Plus, a quick trip to the store for a handful of things may be less stressful than planning a big haul. If you’re sick of draining your bank account and wasting money on ingredients you already have at home, why not try this app?

As someone who gets easily overwhelmed in the kitchen, I hope to experiment with this app to save time and avoid decision fatigue. It’s been difficult for me to decide on recipes in the past, but knowing my current inventory will make it much easier to choose what to cook.

Learning new habits can save you money

Being willing to develop new habits can be beneficial. One example is learning to use apps that allow you to be more organized and informed. As you make positive changes, the savings will add up. For additional tips, check out our personal finance resources.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Looking for a higher yield on your savings before the Fed cuts interest rates? Here’s why a CD might not be the right choice. 

Have you seen how high the APYs have gotten on certificates of deposit (CDs)? As of Jan. 21, 2024, some of the offers on our best CDs list were offering rates of up to 5.51% APY! With the Fed (possibly) getting ready to cut interest rates, now could be a good chance to lock in a high yield on a CD.

But even though the APYs are tempting, I’m not convinced that opening a CD is the right move for my personal finances. And CDs might not be the right option for you, either.

Here are a few reasons why I’m not opening any CDs in 2024.

1. I don’t want to lock up my money in a CD

With my cash savings, I like to keep my options open. Putting money in a CD requires you to commit that cash for a certain length of time — a short CD term might only be three months, but you can’t take the money out. If you do need to pull money out of a CD before the term is up, you will owe an early withdrawal penalty.

Instead of a CD, putting your cash savings in a bank or credit union savings account gives you flexibility for using that cash. What if you have an emergency expense? What if you need to replace your car, and you need cash for a down payment? What if you find a can’t-miss deal on an affordable winter vacation, or find some other investment that you want to make with that money? None of these financial moves are possible when your money is locked up in a CD.

This lack of flexibility means that I don’t consider CDs to be the best place for your emergency fund. And if you’re saving for short-term or medium-term goals, like a down payment on a house, I don’t believe CDs are the best fit for that either — because the higher APY of a CD isn’t always worth the financial freedom and flexibility that you lose by locking up your money.

2. The best high-yield savings accounts pay high APYs too

CDs aren’t the only game in town if you want to earn a better yield on your savings. The best high-yield savings accounts (as of Jan. 21, 2024) are also paying yields of 5% or higher — the best savings account on our list offers 5.32% APY!

Is earning an extra 0.19% APY on your savings worth the inconvenience of a CD? Maybe if you have $250,000 to put into a CD, but even then, that difference in APY only amounts to an extra $475 in one year. I would rather have the flexibility of a savings account or money market account.

With a high-yield savings account, you get:

APYs almost as high as (and sometimes higher than) the best CDsThe freedom to withdraw your cash at any timeNo early withdrawal penalties

It’s true that if interest rates go down in 2024, savings account APYs will go down too. I could be missing out on a chance to lock in a higher APY on a longer-term CD. But I don’t try to time the market with stocks, or with savings account APYs. No one knows what the future holds, and no one knows what the Fed will do at their next meeting.

Even if interest rates (and savings account APYs) go down by 1% by the end of 2024, that’s a risk I’m willing to take and a price I’m willing to pay. My savings account will be earning a pretty good interest rate during all that time, and I’ll have complete flexibility for how to use my cash.

3. CDs aren’t a good long-term investment

Some CD investors like to get long-term CDs (like 3-year or 5-year CDs) so they can lock in a high APY for a longer duration of time. But these long-term CDs are also not a good fit for my personal finances. If I’m reluctant to lock up cash for 12 months or six months, why would I want to lock up that cash for several years?

I’m still at an age and stage of life where I basically think about investing in terms of two buckets: I like to have one bucket of short-term cash, with plenty of emergency savings and money for short-term goals like vacations and home repairs. And then everything else that’s not short-term cash goes in the bucket of long-term investments.

Based on my age, investment time horizon, and risk tolerance, most of my long-term investments are in stocks. So the idea of buying a 5-year CD doesn’t make sense to me. If I’m investing for five years from now, I’m going to buy stocks. If I need cash for something that’s shorter term, I want the flexibility of a highly liquid, immediately accessible savings account.

Your life stage, risk tolerance, time horizon, and overall personal finances and investment goals might be totally different from mine, and that’s totally OK! If you’re a retiree who needs fixed income, maybe buying CDs should be part of your strategy. But if you’re still trying to grow your wealth with long-term investments, buying stocks is likely to be a better strategy.

Bottom line: I’m not opening a CD in 2024 because I value the flexibility of a savings account. I don’t want to commit my money to a CD that charges early withdrawal penalties, and the best high-yield savings accounts offer similarly high APYs. My philosophy on CDs is: don’t lock up your emergency savings in a CD, and don’t use CDs as long-term investments. Flexible access to cash in the bank can provide priceless peace of mind.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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