Money Management

Victims of identity theft and fraud lost an average of $650 per case last year. See what moves you can make to stop criminals using your personal information. 

Identity theft is increasingly common and impacts millions of Americans. It’s horrible to think that someone might be lurking on the internet or rifling through your trash to find data they can use to impersonate you. But sadly, criminals can use even scraps of personal information to open accounts or get credit in your name.

If you’ve been the victim of identity theft, you’ll know the fallout can be both stressful and financially damaging. Americans lost $8.8 billion to fraud and identity theft last year, per the FTC’s Consumer Sentinel Network Data Book for 2022. The median loss was $650, but sadly, the damage goes beyond the cost. Identity theft can impact your credit score, medical care, and even your home. Moreover, it can take hours (sometimes hundreds of hours) to resolve.

What is identity theft?

Identity theft is essentially any situation where someone uses your personal information without your consent — usually for financial gain. That might involve running up false charges on your bank account or creating completely new accounts in your name. It might be someone filing a fake tax return so they can claim your refund. Criminals could even use your identity to get medical services or apply for a job.

According to one 2018 Proofpoint study, 33% of Americans have had their identities stolen at some point. The FTC data shows that credit card and bank fraud — particularly the opening of fraudulent new accounts — were the most common types of identity theft in 2022. Both had increased significantly year on year. Most top credit cards will refund fraudulent transactions, but that protection doesn’t apply to identity theft.

How to protect yourself against identity theft

Having recently lost my passport, I’ve been hypervigilant about protecting my financial data recently. Spotting identity theft quickly can really help minimize the damage. Online security company Aura says, “How soon you discover a case of identity theft can be the difference between a $200 and a $10,000+ loss.” Here are some of the steps you can take.

1. Check your credit reports and bank activity regularly

You can get a free weekly copy of your credit report from all three credit bureaus from AnnualCreditReport.com until the end of 2023. Weekly reports are probably a bit excessive unless you have reason to worry about identity theft. But it’s worth checking regularly to see if there’s anything you don’t recognize — like someone opening an account in your name.

My online bank also messages me whenever there’s activity on any of my accounts. It makes it easier to track my spending, and means I’ll see any usual activity straight away. Everybody is different. If you find that level of messaging annoying, you might prefer to check your bank account transactions every week or so. Some checking accounts also let you set up alerts for certain types of movements, such as large withdrawals or unusual activity.

2. Consider a credit freeze

One of the best ways to protect yourself against identity theft is to freeze your credit. It basically limits who can access your file to do a credit check. Without a credit check, it’s hard for someone to open an account or borrow money in your name.

To freeze your credit, you need to contact each credit bureau individually:

EquifaxExperianTransUnion

You can unfreeze your account or lift the freeze temporarily whenever you want. So a credit freeze won’t stop you from taking out a mortgage or personal loan. Importantly, it makes it a lot harder for anyone to impersonate you.

3. Be on the alert for phishing attempts

Phishing is when criminals pose as legitimate companies and try to trick you into giving out your personal data. It might involve a phone call or an email that looks like it comes from your bank saying there’s an urgent issue with your account. Those messages are designed to panic you, but try not to let them get under your skin.

If you receive an odd email, look at who sent it. The email address may not be quite right — or it may come from a Gmail account instead of the actual company. The message will often demand immediate action in some form or other. Other telltale signs? Watch out for poor grammar or odd wording, strange attachments (don’t open them), or a greeting that sounds slightly off. For example, I recently got an email from “Coinbase Team !” with no salutation at all.

4. Use different passwords for every account

It’s much harder to hack into your accounts if each has its own password. Ideally, each one will have a mix of upper- and lowercase letters, symbols, and numbers. It can be irritating to do, but it really does minimize your risk. A password manager can help you keep on top of all those unique passwords.

I used to use the same three passwords for everything. When the company I ordered vegetables from online got hacked, it meant criminals had my email and password for a bunch of other accounts, too.

5. Don’t use public wifi for online banking

There are a few ways you can protect your data when you’re out and about. One is to be careful when using public wifi and avoid logging into any confidential accounts. Another is to limit what you carry with you. For example, you’ll rarely need to have your Social Security card and all your credit cards in your wallet at the same time.

Bottom line

In an increasingly online and connected world, it’s almost impossible to make yourself invulnerable to identity theft. That said, the harder you make it for criminals, the more likely they are to leave you alone and look for easier targets elsewhere.

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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.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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It’s important to give yourself time to save for college. Read on for ways to play catch up if you need to. 

Many parents have the goal of putting their kids through college so they don’t have to accrue a ton of debt in the course of getting a degree. But what if you’re only a few years away from your kids starting college and you’ve yet to sock money away for it?

It’s easy to see how that might happen. It’s hard to set aside money for college when you have a mortgage to pay, a car that keeps needing repairs, and other such unavoidable expenses. So try not to get down on yourself for landing in the situation you’re in.

You should also know that all isn’t lost when it comes to funding your kids’ college education. If you’re late to the savings game, here’s what to do.

1. Choose the right home for your money

It may be that you’re finally ready to sock away a meaningful amount of money for your kids’ education. The only problem is that if you’re just a few years away from that point, investing in stocks or other assets that could lose value is a risky proposition.

As a general rule, you shouldn’t invest money in the stock market that you might need in less than seven years. That’s because you never know when there might be a prolonged stock market downturn that takes years to recover from.

The good news, though, is that while stocks might be off the table for your kids’ college fund, right now is a good time to put money into a longer-term CD. CD rates are up across the board, and banks are still paying upward of 4% for a 5-year CD. So if college is five years away, a CD is a good bet since it’s pretty much risk-free (provided you’re at an FDIC-insured bank and aren’t socking away more than $250,000, which is the limit for FDIC insurance per depositor).

Let’s say you have $15,000 available to set aside for your kids’ college expenses. If you put that money into a 5-year CD paying 4.10%, you’ll grow it to about $18,340 without putting yourself at risk of losing any of your principal. You just need to make sure you’re able to commit to leaving that money in place for the full five years. Otherwise, you could be penalized for cashing out a CD early.

Now, you may be thinking, “Well that’s great, but $18,000 and change won’t cover my kids’ college costs in full.” And chances are, you’re right. But that assumes you won’t continue to add to your savings. If you keep setting money aside and opening shorter-term CDs, you can build on that $18,000 and change so you’re looking at a much larger sum over the next few years.

2. Encourage your kids to make smart choices about their education

If you got a late start on college savings, it’s important to be open and honest with your kids about that. And it’s a good idea to encourage them to take steps to keep their college costs as low as possible.

One option is to spend two years at community college to satisfy core requirements, and then transfer to a four-year school in-state to keep tuition expenses down. If your kids are able to live at home and commute rather than pay a premium to live in a dorm, that, too, could keep your bills lower and minimize the amount of debt your children have to rack up.

It may also be feasible for your kids to work during their studies. If they’re able to earn a few thousand dollars a year, they can put that money toward tuition and other expenses so they’re not forced to accumulate loads of debt.

It’s best to start saving for your kids’ college when they’re super young. But if that didn’t happen, you can’t go back in time and change things. So rather than bemoan your late start, embrace it and work with it. You still have options for amassing some savings to help your kids cover their costs. And if they make wise choices, they can get their degrees without upending their finances on a long-term basis.

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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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Want a $50,000 brokerage account balance? Read on to see how to pull off that feat by age 30. 

A $50,000 brokerage account balance might seem like the sort of thing you could attain by age 50. But believe it or not, you may be able to grow your balance to $50,000 much sooner than that — by age 30, in fact.

If your account balance is currently $0, you might assume that’s impossible. But thankfully, it’s not. If you follow these steps, you could easily end up sitting on $50,000 by the time your 30th birthday rolls around.

1. Start investing as soon as you begin collecting a regular paycheck

A lot of people don’t start working full-time until they graduate college. And that may not happen until you turn 21 or 22. But if you want to end up with $50,000 in your brokerage account by age 30, you may need to commit to investing a portion of your earnings from the moment you begin collecting a steady paycheck.

The good news, though, is that you don’t necessarily have to part with a lot of money on a monthly basis to get to $50,000 by 30. Over the past 50 years, the stock market has delivered an average annual 10% return, as measured by the performance of the S&P 500 index. If you invest $365 a month starting at age 22 and continue to do so until age 30, you’ll end up with a $50,000 balance if your portfolio, too, delivers a 10% annual return.

2. Load up on stocks across a range of industries

A diversified portfolio won’t guarantee that you’ll manage to snag an average yearly 10% return on your investments. But you’ll be more likely to see your portfolio match the stock market’s performance over the past 50 years if you maintain a broad investment mix.

You can go about that in a couple of ways. You could buy stocks across a range of market sectors and keep tabs on them. But that’s a lot of work. So a better bet may be to buy shares of an S&P 500 ETF, or exchange-traded fund. This way, you get to invest in that index on a whole without doing a lot of legwork.

3. Resist the urge to tap your brokerage account for unplanned bills

To grow your brokerage account balance from $0 to $50,000 by age 30, you’ll need to do more than just fund that account steadily. You’ll also need to make sure you’re not tapping your brokerage account when unexpected expenses arise.

To that end, make sure to maintain a solid emergency fund. If you make a point to keep enough money in the bank to cover a few months’ worth of essential bills, you’ll be less likely to cash out investments in a pinch.

Funding your emergency savings should actually take precedence over funding your brokerage account. And it might take you a couple of years to get to that point. So if that’s the case, know this — you can still get to $50,000 by age 30 even if you get a slightly later start.

If you first begin investing at age 24, it’ll take $540 a month to reach $50,000 by age 30, assuming the same 10% return in your portfolio as earlier. But if you’re able to make that happen, you can hit that goal even if you only have six years to do it.

A $50,000 brokerage account by age 30 is quite an impressive thing to pull off. But if you play your cards right, you might manage to hit that goal — or even exceed it.

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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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If you’re celebrating the season, the Dollar Tree has you covered. Check out these fall favorites, from candy pails to decorative dishes. 

Fall is a wonderful time of year. The weather gets cooler in most parts of the country, holidays like Halloween and Thanksgiving provide endless fun, and you have a great chance to decorate your home.

You don’t want to run up a huge credit card bill celebrating this season though. Fortunately, you don’t have to, as the Dollar Tree has plenty of fall favorites you can enjoy. Check out some bank-account friendly options from the Dollar Tree that can get you in the spirit of fall without busting your budget.

1. Pumpkin-scented candles

If you’re crazy for everything pumpkin-spiced (and really, who isn’t?), the Dollar Tree’s Pumpkin Bourbon Scented Mason Jar Candle could help you bring the magic home. This affordable and adorable little scented jar candle received a five-star rating and costs less than half of what a small glass-jar pumpkin candle costs from Yankee candle. The smell is pretty great, too.

2. A pumpkin carving kit

Carving pumpkins is a key holiday tradition. Whether you make your pumpkin face spooky or friendly, you’ll need the right kit to create your masterpiece. You can get one at the Dollar Tree that includes a carving knife and a spoon to clear out those pumpkin innards. That’s a much, much better price than the $31 set Amazon has on offer.

3. Halloween LED lanterns

Decorating your house can help you get into the spirit of the season. And it’s cheap with the $1.25 lanterns from the Dollar Tree. You can choose from a spooky black skeleton lantern or a pretty orange pumpkin one. While two AA batteries are required but not included, these affordable lights received an average rating of 4.1 out of 5 stars, and reviewers said they “loved the look” as the lanterns glowed on their porch.

Again, these items are a huge bargain compared to $20.99 Halloween lanterns sold at Amazon.com. Just don’t forget to pick up batteries.

4. Halloween-themed tin pails

If you have little trick-or-treaters in your home, you know they need that classic orange bucket to pick up all the candy they’ll collect.

While you could opt for a plastic bucket, the Dollar Tree has upgraded tin additions for only $1.25. There are three patterns, including a smiley jack-o-lantern, a purple bucket with three pumpkins and some bats, or an orange bucket with some clever Halloween sayings.

The buckets measure 5.5 inches by 7.75 inches, so they aren’t too big for little hands to carry even once they get some candy in them. And, of course, they have a convenient handle on the top to make them easy to transport.

5. Metallic plastic leaf dishes

If you are throwing a Halloween party, these metallic plastic leaf dishes can make your table look festive and beautiful — and you won’t have to worry about doing the washing up afterward. They’re perfect for larger servings at 9 inches by 8.5 inches, and they come in an assortment of three beautiful fall colors, including red, green, and orange.

Check out each of these items at your local Dollar Tree today to see if any of them belong on your must-buy list for fall! Remember, though, that the holiday season is a time when you tend to do a lot of spending. While it’s fun to buy nice fall items, you don’t want to go overboard and end up in credit card debt — which can happen even with small purchases.

Set a budget for yourself for things like gifts, decor, and entertaining, and then keep a spreadsheet or use a budgeting app to ensure you’re tracking your spending and sticking to it. Fortunately, with these Dollar Store finds, it will be easy to stay within your spending limits while still celebrating the season.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

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Got a solid chunk of money saved up? Discover why it’s worth opening a high-yield savings account to house it. 

If I were to sit down and rank the best money moves I’ve made in the last few years, opening a high-yield savings account last year would definitely be near the top. Not only was the account incredibly easy to open, but I’ve made more than $1,000 on my savings this year so far, thanks to earning a generous APY.

Admittedly, I’m in the process of meeting a big savings goal, so you may not have as much saved cash as I currently do. But even if you have a smaller amount saved, say $5,000, it’s still worth your time to move that money into a high-yield savings account. Here’s why.

By the numbers: Regular savings account vs. high-yield savings account

Let’s say you keep your hypothetical $5,000 in a traditional savings account — perhaps one that’s linked to your checking account. It only earns 0.10% APY, though. At least with a balance of $5,000, you likely aren’t charged a monthly maintenance fee — as I discovered last year, $300 is the minimum required balance on my own traditional savings account to avoid fees.

But even without a maintenance fee, your money is losing spending power in this account. The most recent Consumer Price Index Summary report noted that inflation is currently at 3.7%. But the average APY across all savings accounts is currently just 0.45%, according to the FDIC, and your traditional savings account earns far less than that.

What if you were to move your money to a high-yield savings account paying an APY of 4.5%? Here’s what you can expect to earn, interest-wise, over the course of a year in each account (and assuming you don’t add any money to your balance):

As you can see, the difference in what you can earn is staggering — surely an extra $220 could make a difference for your bottom line. And best of all, this money represents passive income, so you don’t have to work extra hours to earn it.

Where can you find a high-yield savings account?

So you’re not going to make this kind of money with a savings account at your trusty old brick-and-mortar bank. Instead, look to cyberspace for a 21st-century bank! Online banks have a few advantages over their brick-and-mortar counterparts, including offering higher APYs on savings accounts. This is because online banks have fewer overhead costs, since they don’t have physical branches to maintain. These banks also have excellent remote customer service (including phone lines, email, and online chat features) and mobile apps.

One word of caution, though: If you need to deposit cash, you may have some difficulty with no physical branch to visit. If you’ve got an account with a brick-and-mortar bank, you can deposit cash there, then transfer it to your online bank account. Yes, this is an extra little song-and-dance to do, but I think the perks of an online bank are worth it.

Use these tips to make saving easier

It’s not enough just to have the right savings account; you also need to put money into it. If you have $5,000 now, that’s a great starting point, and your money could grow to become a full emergency fund, fund a dream vacation, or even buy you a home. Here’s how to make saving money easier.

Automate it: Here’s where I give advice I don’t follow myself. Automating my finances makes me nervous, but a lot of people have found success with it. If it’s hard to set aside money to save every month, setting up an automatic transfer from checking to savings before you’ve spent the money you want to save can help.Set a goal: Give your money a job, and dream about that job. In my case, the big savings goal I have is to buy a home in 2024, so every time I add money to the account, I think about how wonderful it will be to wake up in a house I own. It makes it more fun to save.Get a side hustle: This is always my go-to advice, because it’s easier to increase your income than to cut your spending in a big way. Money you earn from a side hustle isn’t already earmarked for bills, so you can save all of it (less taxes, should you find yourself in a freelance situation where you receive a 1099 form).

Having cash savings is an excellent position to be in. Don’t lose money to inflation — move your cash to a high-yield savings account today.

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Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts can earn you 11x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2023.

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.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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Ready to shop the fall Prime Day event, but not sure what deals are worthwhile? Check out a few great deals that you can shop through today, Oct. 11. 

Prime Day is a popular summertime online shopping event hosted by Amazon. But the summer isn’t the only time Prime members can score major discounts. The online retailer has a fall savings event called Prime Big Deal Days. It’s not too late to shop the sale, but today is the last day — so don’t delay. Let’s outline a few fantastic deals only available during this fall Amazon Prime Day shopping event so you can start drafting your shopping list.

1. Apple Watch SE

If you’ve been thinking of buying an Apple Watch and love a discount, you may want to scoop up Apple’s most affordable model, the Apple Watch SE. Prime members can save $50 by purchasing one during the Prime Big Deal Days event.

Here’s a breakdown of the discounted prices by model and case size:

GPS model (40 mm): $199GPS model (44 mm) $229GPS + Cellular model (40 mm): $249GPS + Cellular model (44 mm): $279

2. Vitamix 5200 Blender

For those who want to invest in a high-quality blender, the Vitamix 5200 Blender is available at a significant discount through Oct. 11. You can upgrade your smoothie routine without draining your bank account balance. You’ll pay $299.95 instead of $549.99 if you buy it today.

3. LANEIGE Water Sleeping Mask

Quality skincare products can be expensive. But if you can stay on budget by purchasing skincare essentials during sales like this. The LANEIGE Water Sleeping Mask is a top-rated skincare product from Korea. It hydrates and strengthens the skin’s moisture barrier overnight. As a Prime member, you can get a container for $22.40 instead of $32 through Oct. 11.

4. Shark NV352 Navigator Lift Away

If you have furry friends or young kids, you may be considering upgrading your vacuum to make it easier to keep your home clean. The Shark NV352 Navigator Lift Away is available to Prime members at a $50 discount. You’ll pay $128.99 instead of $178.99. This upright vacuum features a detachable pod so you can easily clean stairs, furniture, and hard-to-reach areas.

5. T3 AireLuxe Digital Ionic Professional Blow Hair Dryer

Looking for a professional-quality hair dryer without a hefty price tag? You may want to buy the T3 AireLuxe Digital Ionic Professional Blow Hair Dryer. It’s on sale during Prime Big Deal Days for $139.99 instead of $199.99. While I don’t have this hair dryer, I have a hair straightener from the same brand, and I’ve been pleased with its performance.

6. Amazon Essentials Women’s Lightweight Water-Resistant Hooded Puffer Coat

Fall is already here, and now is the ideal time to upgrade your wardrobe so you’re prepared as the weather continues to get cooler. The Amazon Essentials Women’s Lightweight Water-Resistant Hooded Puffer Coat is on sale for as little as $45.40. Prices vary by color, but you’ll get the best deal if you choose a black jacket. That’s not a bad price at all.

Shop during sales to stay on budget

This list is just a sampling of the deals available throughout the day. But you’ll need to have a Prime membership to shop the sale. If you’re not ready to invest in an Amazon Prime membership, check to see if a free trial is available.

Shopping during a big sale, so you get a good deal on items you’ve been meaning to buy, is an excellent personal finance strategy. Before entering your credit card details at checkout, ensure you’re using a credit card that earns rewards. Don’t have a rewards credit card yet? Check out our list of the best rewards credit cards to learn more about the many benefits of these cards.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

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