Money Management

Check washing is a tactic from before the age of digital payments. 

You work hard for your money, so it’s a good idea to do everything you can to keep it safe. To that end, you likely have a secure password on your mobile banking app. Maybe you even went paperless with your bank statements, so you don’t get mail with account information delivered to your mailbox. Unfortunately, if you’re still using paper checks to pay bills or send money to others, you could be a victim of an old scam that’s recently come back into fashion: check washing.

What’s check washing?

Check washing is when thieves steal checks you’ve written and use a chemical solution to remove the ink from the amount and the payee lines (while leaving your signature behind). Per IAG Forensics & Valuation, acetone is the most common chemical used (you may know it better as nail polish remover). Then the thieves can fill in their own names as the payee, write in any amount of money they want, and cash your check, potentially draining your checking account in the process.

According to IAG, check washing accounts for more than $815 million of stolen money every year, and first began in the 1980s. I remember hearing about it on TV news programs when I was growing up, and was surprised to discover it’s hit the news again recently. For example, WTVG Toledo ran a story about it a few months ago, as some local residents have had money stolen in this way. As more and more people rely on digital payments, this old-fashioned scam has come back to prey on those still using paper checks.

How can you protect yourself?

Now that you know how check washing works, you’re ready to protect your money. Here’s how to keep your check payments safe and secure.

Use the right kind of pen — and checks

The Better Business Bureau (as told to ABC7 Chicago) reported that black gel ink is the most resistant to being washed off checks. Blue ink, ballpoint pens, and markers labeled as being “permanent” are most susceptible. It’s also important to choose checks that have embedded security features (such as watermarks and security inks). It’s worth it to pay a little extra for these features.

Don’t mail checks from home

Rather than leaving mailed checks in your home mailbox for pickup, where anyone can take them, drop them off at a mailbox inside your local post office. You can also drop your mail in a blue outside mailbox, but these aren’t completely secure, so aim to drop mail off as close to a pick-up time as possible.

Keep an eye on your bank account

If you mail checks for bill payments, watch your account to ensure the checks arrived and were cashed for the right amounts. If you mail a check to a friend or family member, contact them to verify receipt. If something has gone wrong (the payments don’t come out of your account or a different amount has), report the problem to your bank ASAP.

Consider making online payments instead

Finally, if you’re still writing out paper checks, consider transitioning to online bill pay. Just about every entity out there accepts them, and they are usually free to make. You might need to create an online account for your utility company, credit card issuers, and so on, but you’ll get the peace of mind that comes from knowing your money has been safely delivered to its intended recipient. You may also be able to pay bills through your bank; simply fill in the payment details and schedule it, and the bank will securely mail a physical check on your behalf.

It’s a big scary world out there, and the resurgence of check washing is proof that increasing reliance on digital payments is making life more difficult for enterprising thieves. Be careful when paying with physical checks to avoid becoming a victim.

These savings accounts are FDIC insured and could earn you more than 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 more than 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.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.

 Read More 

The issue of one-time stimulus payments remains under debate. 

Minnesota lawmakers find themselves in a unique position. The state is sitting on a huge budget surplus and must now decide how to spend that money. In January, Governor Tim Walz announced a plan, promising residents the largest package of tax cuts in state history.

But that’s not all. As part of the ambitious plan, as many as 2.5 million Minnesota households would receive a rebate check totaling up to $2,600.

Who’s eligible?

Individuals earning up to $75,000 annually would find an extra $1,000 in their bank accounts. Married couples earning up to $150,000 can look forward to a $2,000 rebate. In addition, parents would receive a $200 rebate per child, up to three children. For a married couple with three children, the benefit would be $2,600.

Proposed budget features

If approved, here’s what the new, two-year budget will include:

Reduced state tax on Social Security benefits for approximately 350,000 recipientsLegalized marijuana for recreational use$1.1 billion for child tax credits$670 million to launch a paid family and medical leave program$300 million to support public safety agenciesOver $4.4 billion in extra public school spending$458 million toward making the state’s energy sector become carbon free by 2040Increase in the state’s capital gains taxNew payroll tax to fund a paid family and medical leave programIncreased vehicle tab fees

Who supports the plan and who doesn’t

Walz is a second-term governor, a member of the Minnesota Democratic-Farmer-Labor Party (DFL), an affiliate of the Democratic party. The DFL party currently holds the majority in the state legislature and Walz appears to have a fair measure of support from members of his own party.

Less happy are Republicans who say that most of the state’s surplus should go towards cutting taxes. The Minnesota Chamber of Commerce is also less than pleased with the governor’s plan, particularly those newly proposed taxes.

The Coalition of Greater Minnesota Cities said that the $30 million earmarked for local government aid does not meet their needs and calls the proposal “disheartening.”

Naturally, Walz holds a different view of the issue. Here’s what he had to say about the budget surplus: “I’ve made no mistake about it that people can make good decisions for themselves and a portion of this surplus needs to get back into their hands.”

As government and business groups make their voices heard and state lawmakers edge toward a vote, MPR news reports that the final decision is likely to come down to possible fractures among Democrats and harmony among Republicans.

Even if the entire plan does not pass the legislature, there is a chance that one-time rebate checks will be approved. Any funds sent could help Minnesota families cover bills, build up an emergency savings account, or invest in the future.

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 

If you’ve never shopped at Aldi before, it may be time to change your routine. 

It took me a while to get on board with the idea of shopping at Aldi — not because I had anything against the store, but rather, because my local Aldi happens to be located right across from my nearby Costco. And it’s pretty hard to tear me away from Costco and its gloriously low prices.

But recently, I decided to give Aldi a chance, and I discovered some pretty neat things about it. And so if you have an Aldi in your neck of the woods that you’ve yet to check out, it could pay to pop in for a visit. Here’s why.

1. Low prices

As someone who shops at Costco a lot, I’m clearly the type of consumer who likes to save money on groceries and household essentials. When I visited my local Aldi, I was shocked (in a good way) at my total credit card tab. Not only were the prices lower than my neighborhood ShopRite, but they were extremely competitive with Costco’s prices — only at Aldi, you don’t have to commit to buying in bulk.

As of the end of 2022, the cost of food at home (meaning, grocery store items) was up 11.8% on an annual basis. That’s well ahead of the general pace of inflation, which, as of December 2022, came in at 6.5% compared to the previous year. And so at a time when food costs are so unbelievably high, shopping at Aldi could result in a nice amount of savings.

2. New and exciting brands

A lot of the brands Aldi has in stock aren’t national ones you see advertised frequently. Now, you may decide that’s a bad thing. But if you’re someone who enjoys sampling new brands, it can be a good thing.

Plus, because most of Aldi’s brands aren’t so well-known, you can bet they’re not spending millions of dollars on advertising each year. That means they can pass that savings onto consumers by keeping their prices low.

3. Different products all the time

Aldi is known to rotate its product line frequently. On the one hand, this does mean that if you find a product you love at Aldi, you run the risk of it not being there for the long haul. But you also get an opportunity to try out different products from one shopping trip to the next. If you’re someone who finds it fun to explore new products, shopping at Aldi might end up being quite enjoyable for you.

Shopping at Aldi can be a mixed bag. You may find that the selection of food is limited at your local store, and if you have members of your family who are picky eaters (that’s right, kids, we’re talking about you), then Aldi may not end up being your ideal grocery shopping destination. But if your goal this year is to spend less and add more money to your savings account, then it pays to shop at Aldi for the discounts alone. And you might even discover some cool new brands and products along the way.

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

 Read More 

Those cash rewards and points are worth big bucks. 

Rewards credit cards are no secret at this point. Even those who don’t use them have probably heard about them and seen them advertised. What most people don’t realize is just how much card issuers pay out in credit card rewards.

A recent study revealed that information, and it’s a staggering sum. The largest banks paid $35 billion in rewards in 2019.

However, that value isn’t distributed equally. It’s largely savvy consumers with good credit scores who benefit the most. Consumers who don’t follow good credit habits, on the other hand, usually lose money. By learning more about how rewards work, you’ll be able to make the most of them.

How credit card rewards work

If you’re new to credit card rewards, the best place to start is the basics. Many credit cards earn rewards on purchases you make. There are a few popular types of rewards:

Cash back: Exactly as the name suggests, this is cold, hard cash. You can normally use it to reduce your credit card bill, deposit it to your bank account, or request a check.Travel rewards: These are rewards you can redeem for travel, and there are a whole lot of options out there. Depending on the travel card, you could earn frequent flyer miles with an airline, points with a hotel chain, or transferable points that can be used with many airlines and hotels.Store points: Points you can redeem to get a gift card or discount at a specific store.

If you want to save money and keep it simple, cash back is the way to go. If you travel often, travel rewards should fit you well. Store credit cards, to be honest, are rarely a good choice. They’re much more limited than cash back and travel cards, since they typically only offer value at the stores that issue them.

The way that rewards credit cards work is pretty straightforward: Every time you make a purchase with your rewards card, you earn rewards. The amount is determined by the card’s rewards rate. Let’s say you have a cash back card that earns 2% back on any type of purchase. If you make a $100 purchase, that’s $2 in cash back.

Your card issuer will deposit the rewards you earn to your rewards balance. When you’re ready to redeem rewards, you can do so online or by phone. There may be a redemption minimum, such as $25 in cash back. Fortunately, many of the top rewards credit cards don’t have redemption minimums.

Getting the most value from credit card rewards

It might seem like it’s easy to make money from credit card rewards; that’s actually not the case. The rewards study cited above found that on average, only consumers with high credit scores came out ahead. Consumers with lower scores paid more in fees, and particularly credit card interest, since rewards cards tend to have higher APRs.

There’s really just one key habit you should follow to ensure you make money from credit card rewards: Pay your credit card’s full balance, by the due date, every month. When you pay in full, the card issuer doesn’t charge you interest. That means you make a profit from all the rewards you earn.

If you do that, you’re already in a good position. You can also get even more value by learning how to maximize credit card rewards. Here are some tips that will help with this:

Take your time picking the right rewards card. There are many rewards cards available, all with their own unique sets of features. Start by figuring out if you want a cash back card or a travel card, and then look at some of the best credit cards in that category.If a card has an annual fee, make sure you’ll get your money’s worth. Cards with annual fees normally have more benefits, so they can be worth it for some people. But if you’re not sure you’ll break even, stick to no annual fee credit cards.Use your rewards credit card for all your expenses — but don’t overdo it. It makes sense to pay for everything with your credit card to earn the most possible rewards. Just be careful not to start overspending and justifying it with the rewards you’ll earn.Get a card that matches your spending habits. Some rewards cards earn the same rate everywhere, while others earn higher rates in bonus categories, such as gas and groceries. Pick one that matches up well with the areas where you spend the most.

Those are all simple, effective ways to get more value from credit card rewards. There are also more advanced strategies, such as opening multiple rewards credit cards for more benefits. Doing so also allows you to earn more bonus rewards, if those cards have different bonus categories.

It’s up to you how much you want to learn. Some people find rewards cards fun and interesting, but it doesn’t take hours of study to make money from rewards. If you want an easy-to-follow strategy, just get a rewards card you like, use it for your purchases, and always pay in full.

Top credit card wipes out interest until 2024

If you have credit card debt, transferring it to this top balance transfer card secures you a 0% intro APR for up to 21 months! Plus, you’ll pay no annual fee. Those are just a few reasons why our experts rate this card as a top pick to help get control of your debt. Read our full review for free and apply in just 2 minutes.

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 

It’s an option I find easier. 

Whether you’re trying to cut back on spending because it’s one of your New Year’s resolutions or because your savings account simply needs a boost, it’s certainly a good goal to strive for. But if you’re struggling to slash your spending, you’re certainly not alone.

Take it from me. I write about personal finance matters all the time, and I’m constantly offering up tips on how to spend less. Some of them might work for some people some of the time. But some of them maybe won’t. And I know from firsthand experience that as much as you can try to slash your personal spending, often, life just gets in the way.

Last year, for example, my goal was to cut back on spending in the months leading up to the holidays, knowing full well that I’d be swiping my credit card many times over in November and December to tackle my list of gifts. But things came up in September and October. My kids got invited to multiple birthday parties, and you can’t just show up without a gift. My kids also needed new uniforms for one of their activities — something I couldn’t say no to.

In fact, rather than cut back on spending in September and October, I actually wound up spending a little more than I’d budgeted for. And this isn’t the first time something like this has happened to me.

That’s why I’ve sort of given up on cutting my spending. But I’ve also come up with a way to compensate for that.

When you can’t spend less, try to earn more

I’m self-employed, so the more work I do, the more I get paid for. Because of this arrangement, it’s generally easier for me to pick up additional assignments when I want to pad my savings rather than cut my spending.

The way I see it, an uptick in spending is something I often can’t control. But I can control the amount of work I’m willing to do. And doing more work and boosting my income basically has the same effect as spending less.

Of course, taking on extra work has its own consequences. In addition to my job, I have a household to run and kids who need help with everything from homework to getting to and from activities. So when I talk about taking on extra work, I’m talking about sitting down at my laptop at 9 p.m. or 10 p.m. to get those assignments done, or spending time in my office over the weekend rather than relaxing or hanging out with my family.

In other words, working more isn’t necessarily the easy way out. It’s just easier for me in the sense that it’s more effective than trying to cut my spending.

You may want to boost your income sources, too

Maybe you’re not self-employed like me. But that doesn’t mean you can’t pick up extra work in the form of a side hustle, and then use those earnings to pad your savings. In fact, as of last year, 40% of Americans had a side hustle, as per a Zapier report, so this is clearly a popular route to take.

This doesn’t mean you should give up on trying to cut back on expenses. And if there are certain items you can cancel, from a rarely used gym membership or a streaming service you haven’t watched in months, then by all means, get rid of those bills. But if, despite your best efforts, spending cutbacks just haven’t been working out, then you may want to consider taking on extra work to boost your income instead.

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