Money Management

Online banking services are convenient, but be sure to consider your account security. Find out how to protect your bank accounts when using mobile banking. 

Many people use mobile apps to handle everyday affairs, including financial tasks. While banking apps can be convenient and help us save time, it’s essential to take extra steps to keep your online accounts safe. Otherwise, you could put your money at risk of being stolen. The following tips can help you keep your online banking accounts secure.

1. Use strong passwords

The password that you choose for your online bank account matters. It’s best to use strong passwords that aren’t easy to guess. Experts recommend using a mix of upper and lowercase characters and symbols for the best results. If your current password is easy to guess, now is the time to update it so you can keep the money in your checking account safe.

2. Use a unique username

You may already have a safe, strong password, but what about your username? It can be tempting to choose a simple username to save time when logging in, but that can make it easier for fraudsters to access your online savings account or checking account. When setting up online financial accounts, create a unique username and avoid using your name.

3. Be wary of links included in messages

Phishing scams are becoming more common. What might look like a genuine email or text message from your bank could be a fake message from a scammer attempting to access your online accounts. Avoid clicking on links included in emails or text messages, especially if they look suspicious. Instead, visit your bank’s website directly to access your account or call it to determine if the message you received is legitimate or fake.

4. Avoid accessing accounts when using public wifi

Mobile banking is convenient because you can access your bank accounts anytime and anywhere. But that doesn’t mean you should access your bank accounts everywhere. It’s best to avoid accessing your account while connected to public wifi. Hackers can intercept data on unsecured networks, which means they could access your financial account information. Before using mobile banking services, connect to a private network you trust.

5. Enable two-factor authentication

Two-factor authentication adds an extra layer of security to your online accounts and should be enabled for mobile banking accounts. Once you set this up, you’ll be asked to take two steps to verify your accounts when logging in. Enabling two-factor authentication can give you peace of mind and make it harder for scammers to access your bank accounts.

6. Access official websites and mobile apps

Most banks have mobile banking services built into their websites and mobile apps. But always check to ensure you’re logging into an official mobile banking app or website. Some scammers set up fake websites and mobile apps that look real. If you use them, you may accidentally provide your personal login information to a scammer and put your money at risk. Always review the website address and mobile app details before logging in.

7. Review your online accounts often

Another step you can take to protect your security is to review your online banking accounts often. You can view your recent account transactions through your bank’s website or mobile app. By doing this, you can spot suspicious activity quickly and take action right away. If you notice something abnormal, contact your bank immediately to report it.

Practice caution when accessing online accounts

Mobile banking services make it easy to handle everyday banking needs from home. But it’s essential to take extra steps to protect your online banking accounts so you don’t fall victim to financial fraud. Check out our personal finance resources for more money management tips.

These savings accounts are FDIC insured and could earn you 12x your bank

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 12x 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.The Motley Fool has a disclosure policy.

 Read More 

Veterinary care can be prohibitively expensive. Read on to see how pet insurance can help. 

Adopting a pet can be one of the most rewarding things you’ll ever do. And many pet owners grow attached to their pets, to the point where it’s extremely difficult to let them go as their health deteriorates.

But what if your pet runs into a health issue sooner than expected? You might have a perfectly healthy dog that sustains an injury, resulting in a $4,000 surgery. Or, your cat might get diagnosed with cancer — a potentially treatable illness if you’re willing and able to shell out the thousands of dollars needed for their care.

Many pet owners would no doubt go to great lengths to save their pets. On average, dog and cat owners would be willing to spend $6,060 to save their pet in the event of an extreme medical event, according to a Lemonade survey.

But just because you’re willing to spend that kind of money doesn’t mean it’s a good idea. If you don’t have that sort of cash in your savings account, a vet bill in the ballpark of $6,000 could spell financial ruin for you. You might easily have to charge that expense on a credit card and pay it off over time, thereby racking up scores of interest that trap you in a very unfortunate cycle.

That’s why it’s so important to put pet insurance in place. You might think you won’t ever have to spend such a large amount of money on your pet in one fell swoop. But you never know when disaster might strike.

Get the protection you need

A lot of people think pet insurance is a waste. The logic is that they hope their pets will stay healthy, and they’ll therefore never need to use their insurance.

But actually, that’s a good thing. You want a situation where you’re paying for pet insurance and never have to file a claim because your pet manages to live a long, happy, healthy life.

The reality, though, is that as pets age, health issues tend to arise. Your pet might develop a condition that’s costly to treat, or it might require some type of surgery that your typical paycheck can’t come close to covering. The whole point of pet insurance is to pick up the tab (or most of it, anyway) in situations like these so you’re never forced to choose between saving your pet or preserving your finances.

It pays to shop around for pet insurance

The cost of pet insurance varies based on a host of factors, including:

The type of pet you haveYour pet’s ageThe state of your pet’s health when you applyWhere you live

But a good bet is to shop around with different insurers, compare policies and quotes, and see what makes the most sense for you. Some pet insurance plans, for example, include a wellness benefit that reimburses you for routine care for your pet. But those tend to come with higher premiums, so you’ll need to run the numbers carefully.

All told, you might be willing to write out a giant check in the event your pet gets hurt or sick. But that doesn’t mean you should have to. And if you put a pet insurance policy in place, you might avoid a scenario where you have to risk your own financial stability to care for an animal you love.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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.

 Read More 

Mortgages have gotten expensive. Read on to see why it might soon cost you more to sign one — even if your credit is great. 

These days, higher mortgage rates are driving many would-be buyers out of the housing market. But when you sign a mortgage, there are different factors that determine how much that loan ultimately costs you. And now, an impending change to the way certain upfront fees are calculated could make it so that borrowers with strong credit see their costs go up.

A fair amount of upheaval

Most U.S. mortgages are backed by Fannie Mae and Freddie Mac, the two government-sponsored entities that guarantee mortgages and reduce the risk for lenders. Beginning May 1, the upfront fees charged for loans that are guaranteed by Fannie Mae and Freddie Mac will be adjusted to account for changes in Loan Level Price Adjustments, the fees that vary by borrower depending on factors like down payment size and credit score.

Generally, the higher your credit score, the lower an interest rate you can expect to snag on a mortgage. But starting next month, you might end up paying a higher upfront fee for your mortgage if you have great credit.

USA Today reports that a borrower with a credit score of 659 borrowing 75% of their home’s value will pay an upfront fee of 1.5% of their loan balance once these new changes take effect. Before those changes, a borrower in that same boat would’ve been looking at a fee of 2.75%. On a $300,000 mortgage, that amounts to a difference of $3,750 in closing costs, which are fees charged by lenders to finalize a home.

On the other hand, a borrower with a much better credit score of 740 or higher will pay an upfront fee as high as 0.375% starting May 1 for mortgaging 75% of their home’s value. That’s a big uptick from the current rate of 0.25%.

What’s with these seemingly unfair mortgage changes?

The purpose of these changes is to make homeownership more accessible to borrowers of different financial backgrounds, and to make the process of signing a mortgage more fair. But so far, these changes have been the subject of controversy.

While borrowers with higher credit scores will ultimately continue to be rewarded with lower mortgage rates than their counterparts with less favorable credit scores, the changes in the upfront fee structure are effectively penalizing borrowers with great credit. Meanwhile, borrowers whose credit isn’t as strong are going to see their fees go down.

It’s easy to argue that borrowers with higher credit scores should not have to pay more to subsidize borrowers with worse credit. But unfortunately, that might soon be the case, so those looking to buy a home should brace for higher upfront fees.

This isn’t to say that it’s in borrowers’ best interest to now try to lower their credit scores by being delinquent with bills. Having too low a credit score might mean not being able to qualify for a mortgage at all. Rather, borrowers with strong credit should simply know to anticipate that the cost of signing a mortgage could soon get more expensive.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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.

 Read More 

Women can struggle to get loans for their businesses. Read on to see why that might soon change. 

Getting funding for a small business is not always an easy thing to do. Banking customers who have held checking and savings accounts for years often struggle to get approved for a loan even when they turn to the same bank they have an established relationship with.

Meanwhile, Black business owners have long experienced difficulties when it comes to getting business loans. And many female business owners have had a similar experience. So it stands to reason that the combination of being both Black and a woman might put a given small business applicant at a pretty large disadvantage.

Banking giant Goldman Sachs is seeking to change that. And now, it’s introduced a new initiative that could significantly increase access to funding for Black women-owned businesses.

Positive changes are in the works

Women, and particularly women of color, have long struggled to earn the same amount of money as their male and white counterparts. In fact, Goldman Sachs points to a 90% wealth gap between Black households and white ones, which is actually pretty astonishing.

That’s why Goldman Sachs has committed to investing $10 billion into Black women-owned businesses and nonprofits through its One Million Black Women program. Black women, the banking giant says, are foundational to their families and communities. They also play a huge role in the broad U.S. economy. But businesses owned by Black women have historically been sorely underfunded, and this new program seeks to address that issue in short order.

Goldman Sachs is specifically seeking to invest directly in Black women-owned businesses and supply grants to those in need. And that could have many positive impacts, such as job creation in underserved communities.

It’s just the beginning for Goldman Sachs

Goldman Sachs has already identified 50 Black-women led nonprofits from across the country for an initial $10 million investment. But that’s really only one piece of the puzzle. In time, Goldman Sachs plans to continue to provide financial support to Black female business owners so they can grow their companies and impact their communities in a positive way.

Small businesses are often said to be the backbone of the U.S. economy. They not only create jobs, but sustain communities by giving back.

Supporting Black female business owners can better communities, because the more built-up a neighborhood is, the more property values have the potential to rise. And once that happens, property owners get a chance to tap their home equity, which could pave the way to a world of opportunity and financial stability.

In time, ideally, more banks will jump on this bandwagon and offer support to those who have long been underserved on the business loan front. Reducing the earnings gap for Black women, says Goldman Sachs, has the potential to create up to 1.7 million U.S. jobs and increase gross domestic product by up to $450 billion on an annual basis. So that’s reason enough to encourage female Black business owners to keep bringing their great ideas to the table and support their ventures with funding.

These savings accounts are FDIC insured and could earn you 12x your bank

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 12x 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.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy.

 Read More 

Some of the most impactful purchases you’ll make in your life will be surprisingly inexpensive. Here’s one writer’s experience. 

Most of us know that part of responsibly managing your personal finances is to carefully consider any major purchase. You need to weigh the pros and cons, compare your options, and make sure you’re prepared for any financial repercussions.

But it isn’t just the big buys that can have important impacts on your life. The small purchases can have as much — if not more — impact on your life, both collectively and on their own.

For example, some of the most impactful things I’ve ever purchased cost me less than $10. Every item on this list has had a large, lasting, positive effect on my life.

1. Kitchen scale

Of all the tools in my kitchen, I think the $9 digital scale is probably the thing I use the most often. Why? Because anything else is frustratingly inaccurate.

Kitchen measuring has a long and complicated history, from the pre-standardization chaos down through the modern cups vs. liters divide. (I recommend the book Consider the Fork if you want to learn more.) But no matter how you measure something, the weight of it doesn’t change — 100 grams of flour is always 100 grams, whether you put it into measuring cups, liter jugs, or that weird mug you made by hand in fifth grade.

With my handy scale, I can reproduce my results more consistently and with less fuss. I can measure in anything — including directly into the mixing bowl — saving time and stress.

2. Toilet paper roll holder extender

For such a small task, changing the toilet paper roll has to be one of the most hated chores on the planet. Which is why we all love super giant mega rolls. What I don’t love? That the darn things don’t spin right in a standard toilet paper roll holder.

After years of complaining, I finally got my hands on a $7 toilet paper holder extender. It’s a replacement part for the spring-operated holder in most home bathrooms — except this one has little arms on it that allows it to stick out further from the wall. Voila, your gargantuan roll of toilet paper finally spins without resistance, even when new.

3. Toilet spray

While we’re talking about bathroom accessories, I need to also give an enthusiastic shout out to toilet spray. If you live in a household with a shared bathroom, I consider this to be an essential item.

Toilet spray is an oil-based liquid that you spray into the toilet before you use it (the major name-brand spray is called Poopouri). The liquid creates a film over the surface of the toilet water that helps trap any odors as you…take care of business. The spray also contains essential oils and other scents that help mask any odors that manage to escape.

Most sprays cost between $5 and $10 for a bottle that will last a few months. It’s a little pricey for something you literally put down the toilet — but it’s far cheaper than renovating your home to add a bathroom

4. Back scratcher

When I was younger and my joints were made of rubber, I could scratch any spot on my back without issue. These days, however, I find myself mimicking a bear in the woods trying to ease the itch with a handy door jamb.

That’s why I got a back scratcher. For around $5, I picked up what looks like a weird miniature rake with an extendable handle. And this is one of the most satisfying purchases I’ve made in years. That maddening itch right in the middle of my back is no longer a threat to my mental health; now it’s just a minor inconvenience, easily solved.

5. Analog timer

Most of the electronics in my life have some sort of built-in timer feature, from my microwave to my watch. But the one I use the most? The little $7 analog timer on my desk.

Study after study has shown that sitting too long, especially in front of a computer, is bad for your health. But it’s really hard for me to keep track of how long I’ve been sitting (especially when I’ve been sucked into an email vortex).

So now, every time I sit down to work, I set my little timer for 45 minutes. When the timer goes off, I get up and move around a bit. (The Mayo Clinic actually recommends getting up every 30 minutes, but I found that to be a little too frequent for my productivity.) Oh, and I get bonus points when I remember to drink some water on my breaks, as well.

6. Reusable grocery bags

I made the switch to reusable grocery bags many years ago, and I’ve never regretted it. A $5 investment scored me three nylon bags — two of which I still have; one mysteriously disappeared — and a brand-new lifestyle.

Besides the whole fewer single-use plastics thing — and the potential savings — these reusable grocery bags simply make my life easier. They hold more than those thin plastic shopping bags, so I don’t have to juggle multiple bags. They’re sturdier, so I’m not worried about them dumping my groceries on the ground. And I don’t have those tumble-weed-esque grocery-bag-filled grocery bags piling up in my garage that I tell myself I’m going to recycle (but never do).

Little things can have big impacts

We all think of life-changing things as being big events: buying a house, moving across the country, quitting your job. But even small things can change your personal finances for the better. So the next time you’re frustrated by something in your life, consider what you can do to improve it. There’s a chance you’ll only need to spend $10.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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.

 Read More 

Thinking of getting a mortgage? Read on to see if you’re in a good place to sign one or not. 

There are many benefits to buying a home rather than renting one. But to go that route, you’ll generally need a mortgage (unless you happen to have a heaping pile of cash sitting in the bank that could cover a home purchase outright).

When you sign a mortgage, though, you may be committing to making payments on a home for a 30-year period of time. So it’s important to make sure you’re in a good place to take on that loan. Here are some signs that you may not be ready.

1. You haven’t crunched numbers to set a home-buying budget

Before you make the decision to buy a home, you should know how much house you can afford. Generally, a good rule of thumb is to make sure your total housing costs, including your mortgage payments, homeowners insurance premiums, and property taxes, do not exceed 30% of your take-home pay. But if you don’t know what that number looks like, then it’s probably too soon to be looking at getting a mortgage.

RELATED: Mortgage Calculator

2. You don’t know what your credit score looks like

Mortgage rates are higher today than they were a year ago. For the week ending April 20, the average 30-year mortgage rate was 6.39%, according to Freddie Mac.

But the higher your credit score is, the more competitive an interest rate you might snag on a home loan (or any loan, for that matter). And on the flipside, if your credit is poor, you might get stuck with a really high interest rate on a mortgage that makes a home unaffordable. So before you apply for a mortgage, it’s important to know what your credit score is — and take steps to boost your credit score if it needs work.

3. You don’t have an emergency fund

Once you purchase a home, you might face your fair share of unexpected expenses, like repairs. It’s important to have a solid emergency fund before signing a mortgage. That means having enough cash to cover at a minimum three months of essential living costs.

4. Your income isn’t steady

When you rent a home and have a good relationship with your landlord, they may be understanding if your fluctuating income sometimes means you’re a little late making rent. But mortgages don’t tend to be so flexible.

You’re generally required to make your payments on time to avoid credit score damage and other consequences, and being late repeatedly could damage your credit to an extreme degree. That’s why it’s important to have a steady income before you sign a mortgage.

Now, this isn’t to say that if you’re self-employed, you shouldn’t get a mortgage or buy a home. Plenty of people with variable income buy homes and manage the associated costs just fine. Rather, if your income isn’t in a place where you can anticipate a certain minimum monthly paycheck, then you may want to hold off on homeownership.

When you sign a mortgage, you’re making a big commitment, so it’s important to make sure you’re really ready. And if any of these signs apply to you, you may want to put your plans to buy and finance a home on hold for the time being.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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.

 Read More