Money Management

Fraud cost Americans billions of dollars last year. Find out what steps to take if criminals steal your identity and your savings. 

Identity theft is an increasingly common crime, but that doesn’t make it any less upsetting. According to the FTC, Americans lost $8.8 billion to fraud and identity theft last year. Knowing someone has used your personal information to steal money or create accounts in your name is unsettling. The good news is that in many cases, you’ll be able to recover your money and protect yourself against future threats.

I’ve had my card cloned on several occasions. You’ll often find the bank notices the problem before you do and freezes your card as a precaution. But that’s not always the case, and identity theft can go much further than spending money on a card.

Here are three steps to take to recover your savings and your identity.

1. Contact your bank

The sooner you contact your bank or card issuer, the better chance you have of getting your money back. According to the Consumer Financial Protection Bureau, the timeframe and amounts you can recover depend on what went wrong.

Lost or stolen debit card

If your debit card goes missing, time is of the essence. If you tell the bank within two days from when you realize it’s missing, it can only charge you for the first $50 of spending. If you wait longer, you may have to pay for up to $500 in unauthorized transactions. After 60 days, you may be liable for the full amount.

What to do: Call the number on your bank statement or the back of your card. If you use online banking or an app, you may be able to report fraud that way. You’ll likely need to cancel your existing card and get a new one sent to you.

Unauthorized transactions on your bank account

If you notice spending you didn’t make in your checking or savings account, report the issue within 60 days of receiving your bank statement. Your bank then has 10 days to investigate. If it finds an error, it has one day to fix it.

What to do: Contact your bank and ask for the fraud department. You may need to freeze your account, get a new card, and reset your banking passcodes. Follow up the phone call with a letter or email so you have a paper trail. Your bank will probably ask you to fill out and sign a physical form or affidavit that says you didn’t make the transactions.

Credit card transactions

Credit cards offer a lot more protection against fraud than debit cards do. The maximum your card issuer can hold you responsible for is $50. Many top credit cards come with zero liability, meaning you won’t have to pay for any unauthorized transactions.

What to do: Contact your card issuer to report the issue, put a stop on the card, and get a new one sent to you. You can start by calling or making a report online. Either way, follow up in writing — the FTC has a sample letter you can use.

2. Report the crime

The FTC has a dedicated website for reporting various types of identity theft. It’s worth creating an account so you can check back and use all the resources available. Not only could your report help catch the criminals or prevent others from experiencing similar issues, but it will also give you a personal recovery plan. You’ll need to take your FTC identity theft report if you go to the police or have to follow up with specific companies to get your money back.

What to do: Go to identitytheft.gov for step-by-step instructions that differ depending on what kind of fraud was committed.

3. Check your credit reports and set up a fraud alert

Unfortunately, once criminals have your information, they may do more than steal from your bank account. They may borrow money in your name, which can do serious damage to your credit score if left unchecked.

If someone’s stolen your identity, a fraud alert will make it harder for criminals to misuse your identity. Potential creditors will call you or take other steps to verify who you are before they open new credit. It will stay in effect for a year.

What to do: Contact the fraud department of one of the three credit bureaus. You only need to report the fraud to one bureau — it will notify the other two.

Equifax: Call 888-836-6351 or register it with EquifaxExperian: Call 888 397 3742 or register it with ExperianTransUnion: Call 800-916-8800 or register it with TransUnion

The bureaus should send you a copy of your credit report as soon as you set up the fraud alert. If they don’t, you can request a free weekly copy from annualcreditreport.com. Check for any activity you don’t recognize, such as accounts you didn’t open or other errors or suspicious activity.

Be alert

Identity theft can happen in any number of ways. It’s important to be suspicious of anyone who calls or emails asking for personal data, even if they say they are from an organization you trust. Review your bank and credit card statements for transactions you didn’t make, and consider setting up suspicious activity alerts with your bank.

If you’ve been the victim of identity theft, it’s worth being extra vigilant in the coming months. Schedule some calendar reminders to request copies of your credit reports so you can keep tabs on what’s happening. That way you can sleep easy knowing nobody is running up debt in your name.

Criminals have increasingly sophisticated ways to part you with your cash. The more aware you are, the better chance you have of protecting yourself. Moreover, the earlier you spot any suspicious activity, the less damage they can do to your bank balance and credit history.

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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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They are rich, they are debt free, and they speak your language. Learn more about some of the women who are taking the personal finance world by storm. 

Personal finance doesn’t always get the best rap. To be fair, I can understand why. There was a time when a lot of financial advice took the form of slightly preachy lectures or hard-to-digest jargon-laden investment guides. Small wonder some people would rather go to the dentist than manage their money.

Luckily that time has passed. Now there’s an army of interesting financial voices ready to share a mix of stories, advice, and experiences. Whether it’s through blogs, books, podcasts, TikTok, Instagram, or a mix of all the channels, these women make money more accessible.

1. Tiffany Aliche, the Budgetnista

Aliche has already impacted a whole generation. Not only can she influence how you and I might handle our cash, but she also played a key part in a New Jersey financial literacy law that was passed in 2019. Thanks to her efforts, all sixth to eighth graders in the state will learn about things like debt, saving, budgeting, and credit cards.

Aliche — aka The Budgetnista — is one of the financial coaches featured in her Netflix documentary, Get Smart With Money. The documentary builds on one of her best-selling books, Get Good with Money, which is packed with practical advice on taking control of your money.

Aliche hit financial rock bottom around 2009 when she lost her job and her home, and found herself in serious debt. That experience, and the lessons she learned as she rebuilt her finances, inspired her to teach others. According to the site, her Live Richer movement has helped over 2 million women collectively save more than $350 million.

Standout advice: There’s a difference between saving to spend money — such as putting cash aside so you can buy a vacation or a new TV — and saving to make money. Saving to make money involves putting cash into your savings account or brokerage account so that it starts to work for you. This is where the wealth building happens. If you’re working to increase this amount, the tools and resources on thebudgetnista.com will help you on your way.

2. Tori Dunlap, author of Financial Feminist

The self-proclaimed financial feminist is all about empowering women through money. In addition to the Financial Feminist book, she has a weekly podcast and a resource-packed website. Unsure about how to talk about money with your partner? Dunlap has downloadable money conversation cards that’ll get you started.

Dunlap wants to help you get rich — and not be ashamed about it. She had saved $100,000 by the time she was 25. That money gave her the freedom to walk away from what she describes as a toxic job. Dunlap’s company, called Her First $100K aims to give other women that same freedom.

Standout advice: It’s OK to want to be rich. A lot of women feel they should be altruistic and self-sacrificing. They feel guilt or shame around wanting money. But building wealth doesn’t have doesn’t have to damage others. Moreover, wanting to have money in your bank account does not make you a selfish person. That money might, for example, mean you can pay for healthcare when you need it or make other choices around how you live your life.

3. Berna Anat, author of Money Out Loud

A Filipina-American, Berna Anat is passionate about financial literacy and unpicking the taboos that stop us from talking about our finances. This year saw the release of Anat’s book, Money Out Loud, which follows years of success on social media.

The @HeyBerna instagram feed is packed with entertaining takes on money, spending, banking, and all things financial. To use her words, she makes money talk “hella fun.” Join Anat to learn how she paid down $50,000 in debt and figured out money in her own way.

Standout advice: Feelings underpin a lot of our money goals and habits. If you want to pay down debt, it might be because you want to feel free or less anxious. Understanding those underlying feelings can really help you to build change.

4. Erin Lowry, author of the Broke Millennial series

It would be almost impossible to talk about women who redefine personal finance without mentioning Erin Lowry. Ten years ago she realized how many of her friends were terrified of money. Not only that, she could see it was holding them back in their careers and day-to-day lives.

The Broke Millennial blog was born. It was packed with relatable tales and actionable advice. Next came the first Broke Millennial book, which pulled together a lot of the info in the blog into a step-by-step plan. Lowry has since written two more books, and also published a Broke Millennial workbook earlier this year.

Standout advice: Money doesn’t have to be scary or boring. Not only that, but you don’t need to understand complex formulas to deal with your finances. There are budgeting styles (and budgeting apps) to suit every personality, so dig in and experiment with different ones. Try to have fun with it and enjoy the power that comes from actively managing your money.

Bottom line

The so-called experts who tell us we shouldn’t overspend or take on debt rarely make any difference to how we behave. Many of us already know we need to spend less than we earn. We understand that debt can be costly. What we don’t know is how to use that knowledge in real life.

The secret sauce of personal finance is in helping people to act. These women give us emotionally intelligent and relatable ways to improve our relationships with money. They’re redefining personal finance to make it fun, powerful, and inspiring. Most of all, they make it about you, whatever your background.

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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.Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy.

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Looking for affordable winter vacation locations? Here are three great ideas for mountains, beaches, and city winter vacations at low prices. 

Finding the cheapest winter travel destinations depends on what kind of vacation you want. Some people dream of warm-weather beaches, while others want to go skiing in the mountains.

We’re going to suggest a few surprisingly cheap winter travel options that might not be the usual destinations. Getting creative with your winter vacation can unleash great deals — and wonderful memories.

Let’s look at a few of the cheapest winter travel destinations for a variety of interests.

Winter mountain vacation: Colorado — YMCA of the Rockies

Want a winter vacation in the mountains? Consider Colorado’s YMCA of the Rockies. With locations in Estes Park and Snow Mountain Ranch, these YMCA resorts are affordable and family-friendly, with comfortable private cabins or hotel-style lodge rooms.

I have visited both YMCA Rocky Mountain resorts, and they are some of the most beautiful places I’ve ever seen. You get to wake up each morning in the midst of the Rocky Mountains — but with the convenience and comfort of on-site dining and hotel-style amenities. You can be in the wilderness without “roughing it.”

Along with mountain hikes, the YMCA of the Rockies Nordic Center offers downhill skiing, cross-country skiing, ice skating, and more. And don’t feel intimidated if you’re a newbie skier — low-cost lessons and equipment rentals are available.

How much it costs:

Lodging at YMCA of the Rockies starts at $109 a night. Flights to Denver are usually cheapest in January, according to Kayak.com.

How to get there:

Get to the YMCA of the Rockies by flying into Denver. The Estes Park resort is about 1.5 hours by car from Denver International Airport, and Snow Mountain Ranch is about a two-hour drive.

Beach vacation: San Juan, Puerto Rico

Many Americans love to go to Mexico or the Caribbean for a winter beach vacation. But what if you don’t have a passport? Try an affordable beach destination in the United States: the beautiful island of Puerto Rico!

Americans can travel to Puerto Rico without a passport because Puerto Rico is a U.S. territory. San Juan, Puerto Rico, is known for its pristine beaches, fun nightlife, and unique culinary scene with a mix of influences from African, Spanish, American, and indigenous Taíno cuisines.

Go wander the distinctive architecture of El Viejo San Juan (Old San Juan) and historic Spanish colonial forts from the 1600s. San Juan offers many fun “warm weather” activities, like rum distillery tours, snorkeling, rainforest excursions, or a nighttime guided kayak tour.

How much it costs:

We found well-rated lodging options (via Google search) a short distance from San Juan beaches in mid-January starting at around $100 per night.

How to get there:

Fly to San Juan’s Luis Muñoz Marín International Airport (SJU). Just as an example, we did a flight search using Denver as a departure city (since The Ascent has offices in Denver, and we’re always trying to curry favor with our editors by giving them free travel agent services).

According to Kayak.com, flights from Denver to San Juan are available for $250 or less during the months of January and February.

Winter city break with international flavor: Montréal

Want the feeling of visiting Europe, without the long flight? Consider Montréal, Canada! I visited Montréal for the first time in November 2022, and it’s one of the most surprising cities I’ve ever seen — fun, friendly, creative, multicultural, accessible, and affordable.

Montréal is a bilingual city where French and English are spoken everywhere. It’s a diverse international city with immigrant communities from all over the world, with restaurants serving Vietnamese, Portuguese, Greek, Indian, Italian, Mexican, and Japanese cuisines (among others). Montréal is also famous for its bagels, which I thought were world-class — although New Yorkers might disagree.

There’s so much to do in Montréal, and the public transit buses and metro trains are so efficient, you’ll barely notice the cold. My family attended a Montréal Canadiens hockey game, went to the Symphony, and visited museums. If you want to experience some of the cultural vibes of France along with some of the best of North America, go to Montréal.

(And don’t feel bad if you don’t speak French — I don’t. Just make an effort to say a few things in French, and be polite; almost everyone in Montréal also speaks fluent English.)

How much it costs:

You might not think of Canada as a winter vacation destination. But don’t let the cold scare you away! Hotels in Montréal are cheap in January; a quick Google search revealed 4-star hotels and rental apartments ranging from $90 to $125 per night.

Also keep in mind that as an American visitor to Montréal, every time you swipe your credit card, you’re paying for everything with Canadian dollars. As of December 2023, $1 Canadian is equal to $0.75 U.S. Everything you buy in Canada is going to feel surprisingly cheap! A $20 restaurant meal in Canada is “only” $14.98 in U.S. dollars. This makes Montréal an even cheaper winter travel destination — especially if you use a credit card with no foreign transaction fees.

How to get there:

Fly into Montréal-Trudeau International Airport (YUL). Flights from Denver to Montréal are around $306 in January.

Bottom line

The cheapest winter travel destinations aren’t the most-visited tourist destinations. But you can save money by avoiding the tourist mobs and getting off the beaten path. Instead of a big-name ski resort like Telluride, go to the YMCA of the Rockies. Instead of Cancún, go to San Juan (and save money on passport fees). Get away from cold weather in your home city and enjoy the cultural richness (and warm bagels and welcoming people) of Montréal.

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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.Citigroup is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

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Do you have an unused or unwanted credit card? Here’s what you should consider before you cancel it. 

Do you have an unused credit card or two in your wallet? Maybe you got a “starter” credit card years ago with few perks and can now qualify for much better products. Or maybe you’re tired of paying for a credit card whose benefits you aren’t using.

There can certainly be some good reasons to cancel a credit card, but there is also a potential drawback to be aware of. Here’s a quick guide to some of the best reasons to get rid of a credit card, and one big reason you might want to keep it after all.

1. Your spending is getting out of control

Credit cards are designed to get you to spend as much as possible. That’s the point of all the welcome bonuses, 0% intro APR offers, and rewards programs. Credit cards are a business, and like any business, the goal of the credit card issuer is to maximize profitability.

To be clear, all of the welcome offers, promotional financing, and credit card rewards can be valuable financial tools if you use your credit cards the right way — meaning that you avoid carrying high-interest balances. But if you’re finding yourself having trouble maintaining wise spending habits, it can be a good reason to close your credit card(s).

2. You are tired of paying an annual fee

This is one of the best reasons to close a credit card. To be clear, in a lot of cases, it could be well worth paying an annual fee — even a high one — if you get value from the card’s benefits. But if a credit card has an annual fee, and the value you get from the card doesn’t justify continuing to pay it, it can be a smart idea to close it.

It can be especially worth a closer look if your credit card’s annual fee is about to increase.

3. Your interest rate is too high

The average credit card APR is nearly 25% as of December 2023. However, 0% intro APR offers on purchases and balance transfers are still very easy to find. If you need to carry a balance and have a decent FICO® Score, there’s no reason to pay tons of interest. It can make good financial sense to open a balance transfer credit card and get rid of the high-interest plastic in your wallet.

One reason to think twice

Closing an old or unneeded credit card might seem like a smart financial move, and it certainly can be, but there is one big drawback to keep in mind. It might surprise you, especially if your credit card has been sitting unused for a long time, but closing a credit card can damage your credit score — at least in the short term.

There are two reasons for this. First, the second most important category of information that makes up the FICO® Score is “amounts you owe.” This doesn’t necessarily refer to the actual dollar amounts you owe, but the amounts you owe relative to your available credit.

Consider this example. If you owe $2,000 on your credit cards and have total credit limits of $20,000, you’re using 10% of your available credit. If you close two unused credit cards that each have $5,000 limits, your total available credit will drop to $10,000, and you’re now using 20% of your credit even though you haven’t spent another dime. This could hurt your score in the “amounts you owe” category.

There’s another category called “length of credit history” that makes up 15% of your FICO® Score. If you’re closing a credit card that has been open for a while, it could harm you in this category as well. Among other time-related metrics, this category considers the average ages of your credit accounts and the ages of your individual accounts. Keep this in mind, especially if you’re thinking of closing a starter credit card that you’ve had open for many years.

The bottom line

To be perfectly clear, although your credit score could take a short-term hit, it isn’t likely to have a devastating impact. And depending on your reasons for closing the account, it could certainly be worth dealing with a temporary credit score decline — for example, getting rid of an unnecessary annual fee. Just be sure to consider the pros and cons before calling to close your account.

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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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Too many people wrongly assume that they can get tax deductions for charitable donations. Learn how to follow IRS rules and avoid mistakes at tax time. 

Giving money to charity is wonderful, but don’t do it for the tax breaks. A few years ago, it was easier for everyday people to get a little tax break for donating to charity. But the 2017 Tax Cuts and Jobs Act (TCJA) changed the rules and made it harder for most people to claim tax deductions for charitable donations.

Let’s look at what it takes to make sure your charitable donations are tax deductible.

1. Itemize your deductions (if it makes sense to)

First of all, your charitable donations are tax deductible only if you are itemizing your deductions. But most people don’t itemize.

You should take whichever deduction (standard or itemized) reduces your taxable income by the largest amount. Recent IRS data shows that approximately 90% of tax returns take the standard deduction.

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For the 2023 tax year, the standard deduction is:

$13,850 for single filers and married people filing separately$20,800 for head of household filers$27,500 for married filing jointly

In order for itemized deductions to be the right choice for your tax situation, your itemized deductions need to equal more than the standard deduction. And for most people that’s unlikely to happen. Types of deductions that can be listed in itemized deductions include:

State and local income taxes (like real estate taxes or local property taxes)Mortgage interestState and local sales taxes (this could include sales tax for a major purchase like a new vehicle)Personal property taxesDisaster lossesSome medical and dental expenses (if they exceed a certain percentage of your adjusted gross income)Gifts to charities

The average taxpayer’s itemized deductions rarely add up to be more than the standard deduction. Most people cannot donate enough money to charity to be worth itemizing.

Why it’s hard to itemize deductions: Two examples of taxpayers

Example taxpayer No. 1: This taxpayer is single, with an income of $50,000. They rent their home. Because they’re not a homeowner, this person is already missing out on most of the itemized deductions. And let’s say that they live in a state with no state income tax, they don’t get to itemize that number either.

This person donates a generous 10% of their income to charity ($5,000), and has a total of $5,000 in other itemized deductions like local sales taxes or excess medical bills.

Here’s what it looks like when you add up your itemized deductions:

As you can see, this person’s itemized deductions add up to only $10,000 — which is less than a single person’s standard deduction of $13,850. In this scenario: Don’t itemize! Take the standard deduction instead. But you can’t count your charitable contributions as tax deductible.

Example taxpayer No. 2: A married couple filing jointly has a combined income of $125,000. They own their home, and they live in a state with income tax and high local property taxes. Let’s say this couple paid $12,000 of state and local property taxes, $4,000 of mortgage interest, and they donated $10,000 to charity. Because of the $10,000 cap on SALT (state and local tax) deductions, they can only itemize $10,000 of their $12,000 state and local property taxes.

So in this case, this married couple can try to itemize:

$24,000 sounds like a lot, right? They can get a nice tax break for those charitable contributions, right? Wrong! Sorry, but this married couple still cannot itemize their deductions; they should take the standard deduction ($27,500) instead. This couple’s $10,000 of charitable donations were a wonderful gesture, but from a tax standpoint, they might as well not exist.

If you’re a higher-income, higher–net worth household that makes massive contributions to charity, to the point that your total charitable contributions are more than the standard deduction, you will likely be able to claim tax deductible charitable donations on your tax return.

2. Donate to 501(c)(3) nonprofit organizations

Here’s another fundamental of tax deductible charitable donations: You must donate to a qualified tax exempt organization that can receive tax deductible donations. These are called 501(c)(3) nonprofit organizations.

These can include a wide range of charities and nonprofits, including churches and religious groups, education organizations, museums, scholarship funds, colleges and universities, schools, veterans’ organizations, and more. If a nonprofit is a 501(c)(3), it will usually tell you.

3. Keep good records and file necessary IRS forms

To claim a tax deduction for charitable donations, you need to keep good records of your donations. This can be a paper receipt, a bank statement, or an electronic receipt provided by the nonprofit.

If you’ve made any donations of $250 or more, the IRS rules require you to keep a receipt. If you’ve made non-cash contributions of $500 or more, you have to file additional IRS forms. For larger donations, you might want to consult an accountant or tax attorney to claim the correct tax deduction.

Bottom line: Many American taxpayers are no longer going to qualify for tax deductible charitable donations.That doesn’t mean you should stop giving to charity! But the biggest tax deductions for charitable donations are likely to go to higher–net worth people who can afford to give more money away.

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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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