Having the ability to apply for and be approved for credit by a lending institution is essential for most people. However, many people do not take the steps necessary to help ensure they will qualify for a loan. One of the most important things you can do is review your credit report on an annual basis. Credit Report Overview A credit report is a record of your personal credit history compiled by credit bureaus using data submitted by your creditors. Before creditors approve a new loan or line of credit, they will carefully review your past borrowing and repayment practices to determine if they want to extend you credit, and if so, how much. Importance of an Annual Review The information on your credit report can affect how much money you can borrow and the interest rate applied to the loan. Additionally, you should review your report for the following reasons: How to Get Your Free Credit Report Obtaining your free credit report is easy. Just go to the federally authorized website AnnualCreditReport.com. At AnnualCreditReport.com, you can get reports from each of Equifax, Experian, and TransUnion. These are the three major reporting agencies. Alternatively, you can request the reports by calling 1-877-322-8228. You will need to provide your full name (with the suffix if applicable, such as Sr., Jr., III), your current address, your Social Security number, past addresses within the preceding five years, and your date of birth. Each of the credit bureaus compiles your credit report independently from each other, although their information sources are the same. What to Look For Above all, you should review your credit report for errors or inaccuracies. If you discover an error or mistake, you should contact the credit agency that is reporting the inaccuracy as soon as possible. Reports prepared by different credit bureaus may provide the same basic information in different formats. The components you will likely see and should review on your credit report, include: Whether you are looking to apply for an additional credit line or maintain your existing credit line, it’s important to review your credit reports annually for accuracy. It may also be a time of reflection to make changes to impact your credit score positively.

Your Annual Credit Report Review

View Resource Your Annual Credit Report Review
Once again, CD rates are back on the rise, leaving people who have decided against them in the past to reconsider whether now might be the time to begin investing in CDs once again. Before you decide whether CDs are the right choice for your investment or savings strategy and style, keep the following in mind. As a precursor though, we will need a short vocabulary lesson for CD products, as they sometimes go by different names, depending on whether you are saving with a bank or credit union. Your bank will most likely use the term “CD” or “Certificate of Deposit.” However, if you work with a credit union, they might use the phrase “term certificate” or “certificate” in talking about the same essential product. Within this article, we will use the shorthand “CD,” but the term covers the credit union naming conventions as well. Purpose of CDs The primary purpose of a CD is to allow investors the opportunity to invest their cash in a short-term financial instrument that provides them with guaranteed interest. In most cases, the return on CDs is higher than what you will experience with savings accounts and most treasuries, making it a better place to park cash. Over the past few years, interest rates on CDs have been unprecedentedly low. That has changed, though, making them a more attractive option to consider for investors. That does not mean it is the right choice for all investment situations. The people who like to use CDs generally prefer them because they are considered incredibly low-risk investments. They are federally insured (either by the FDIC or NCUA), and the rate is guaranteed. When you “purchase” a CD, you are essentially giving the bank or credit union a loan. It works much the same as it does when you borrow money from a bank, but this time In reverse. In this case, you give the bank a specific amount of money. You agree to allow the bank to keep your money for a specific amount of time, known as the “term.” In return, they pay you a specified amount of interest on the money at the end of the term. While CD terms can be for any length of time, common term lengths for CDs are: Financially speaking, the longer the term of the CD is, the higher the interest rate you will receive and the more interest you stand to earn. Keep in mind, though, that your cash is locked up in the investment for the duration of that term unless you have a particular type of CD that allows you to withdraw your funds early without paying the penalty. When to Use CDs Not all savings and investment plans operate well in combination with CD purchases. There are some strategies, though, where CDs shine as investment options, including the following: CD Drawbacks The one major drawback to consider when investing in CDs is time. A CD investment is not exactly the most liquid of your investment options since you promise the bank or credit union access to your money for a specific period. That means you won’t have access to those funds until the term expires. A strategy to minimize this drawback is to create a “CD ladder” to spread out your term lengths, giving you access to some of the funds as each term expires. Another drawback to consider is that the return is lower than other investment options. That is the price you pay for the low-risk nature of CDs as investments. What is the takeaway? With the right strategy in place, CDs can be sound investments, and now might be the perfect time to buy as interest rates on CDs rise again.

Is it Time to Use CDs for Investing Again?

View Resource Is it Time to Use CDs for Investing Again?
Most employers want you to be healthy. Really. Healthier workers are more productive workers. They cost companies fewer dollars over time because they are not always tapping into their healthcare benefits. When employees are physically fit and healthy, they tend to take fewer sick days. It should come as no surprise, then, that many employers offer quality-of-life and wellness benefits to their workers. These quality-of-life benefits can come in many forms: Some employers provide free or reduced-cost membership to local gyms. Others require their employees to schedule annual physical exams. Still, others cover the costs of weight-loss and anti-smoking programs. Some companies even choose to provide discounts to employees signing up for swimming or exercise classes in their communities. Others offer on-site fitness rooms and walking trails or sponsor company basketball or floor hockey leagues. That is good news for workers. We should all strive to be healthy. When our employers are helping to foot the bill? That is just a bonus. Grim numbers It is not surprising that a growing number of employers are offering wellness and quality-of-life benefits to their employees; workers, just like the general public, are too unhealthy today. Moreover, unhealthy workers tend to be unproductive ones. According to recent numbers from The Centers for Disease Control and Prevention — 40 percent of U.S. adults are obese. At the same time, the President’s Council on Fitness, Sports & Nutrition reports that more than 80 percent of U.S. adults do not meet the guidelines for both aerobic and muscle-strengthening activities. That is a perfect recipe for health problems. Adults who do not exercise and are overweight are more likely to develop high blood pressure, diabetes, heart disease and other serious issues. They are also, unfortunately, more likely to die at a younger age. Companies want to protect their workers; employees are, after all, the most significant investment that most companies make. To help do this, they have developed innovative workplace wellness and quality-of-life programs and benefits. Doing the research You should want to take advantage of the wellness programs that your company offers. However, you must research before signing up for any quality-of-life programs. Workplace wellness programs usually come in two varieties: One offers a stick approach, the other a carrot. First, the stick: Many employers require their employees to schedule a physical each year with their primary care physician. If these employees do not do this, their health insurance rates will rise. Companies might also require those employees who smoke to pay higher prices for their health insurance. Other benefits are of the carrot variety. That includes companies that offer their workers reduced rates or free access to local health clubs. It also includes businesses that provide on-site fitness centers, running tracks or walking trails. These benefits are designed to keep workers healthy and happy. However, workers are not penalized for not taking advantage of them. It is essential to keep wellness and quality-of-life benefits in mind when you look for a new job. It is not easy to put a price on good health. However, the healthier you are, the less likely you will be to overspend on health care.

Quality of Life and Wellness Benefits

View Resource Quality of Life and Wellness Benefits
Do you look forward to receiving a big income tax refund every year? If so, you are taking the wrong approach with tax withholding. You do not want that big of a return. That merely shows that the federal government took too much out of your paycheck every pay period. Think about it: The government was able to hold onto your money throughout the year, interest-free. Sure, you will get a refund at the end of the year. However, if the government had not withheld so much of your money, your regular paychecks would have been more significant. You, then, would have had the opportunity to use that money during the year, whether you needed it to pay down your credit card debt or invest in the stock market. The right goal? You would love to end the year without owing the federal government any money on your income taxes or having the government owe you any money through a refund. That, of course, rarely happens. However, you can get closer to this ideal by making sure that the federal government takes the right amount of money from your paycheck. Withholding The IRS withholds a portion of each of your paychecks. However, you can change the amount of these withholdings quickly, just by filing a revised W-4 form with your employer. The W-4 is the IRS form that employees fill out when they start working for a new company. By entering essential information into this form, you tell the federal government how much money to withhold from your regular paycheck. Unfortunately, too many employees forget about this form even as their lives change. If you earn promotions and a more substantial paycheck, you should revise your W-4 form. If you get married or have children, you need to update your information. If you start your own business on the side, you need to rethink your W-4 form. Here’s a handy rule: If you either owed much money to the IRS last year or received a big refund, you need to change the allowances on your W-4 form. The Good News Here’s the good news: You can rework your W-4 form at any time. Just request a new form from your company’s human-resources department. Of course, deciding how much the IRS should withhold from your paycheck can be difficult. Fortunately, the IRS offers an online withholding calculator. This tool, which is a bit complicated, asks you a series of questions to help you determine the correct amount of money to have withheld from each paycheck. Changing your W-4 form will require some research on your part. However, you will be glad come April 15. Remember, there’s no sound financial reason to overpay the federal government throughout the year. Keep your money where it belongs; with you.

Setting up Tax Withholding

View Resource Setting up Tax Withholding
Financial freedom often begins by becoming financially independent. Many people do not realize how financially dependent they’ve grown or how easy it is to find oneself there. Some people never really break free from financial dependence on their parents. For others, debt is what is holding them back and keeping them from the economic freedom they seek. Fortunately, it’s not an all-or-nothing process. There are various stages of financial independence. When your income grows, your spending habits improve, and your ability to save becomes more commonplace, you can move on to higher-level stages. Moving from one step to the next takes time and slow and steady progress with your finances until you reach your goal of financial independence. Stages of Financial Independence Financial independence rarely happens all at once. Not unless you win the lottery or created the next million dollar wonder app that everyone has to have. In other words, it’s a long-term strategy. Therefore, you shouldn’t feel frustrated about not achieving all at once. Most people get there in seven stages that take years, if not a lifetime. Stage One – Financial Dependence on Others Most children are completely dependent, financially and otherwise, on their parents. Others who may fall into the category include: Your goals for gaining greater financial independence at this stage may include finding a job or more lucrative employment, surrounding yourself with people who have different economic priorities, and seeking financial advice and guidance from a trusted source. While acting to move to the next stages of financial independence, it is essential to begin building your credit, arranging transportation, and finding a place of your own to live – even if your first apartment or home involves roommates. Stage Two – Financial Dependence on Debt If you cannot make it from payday to payday without putting purchases on credit, taking advantage of payday loans, or otherwise borrowing money, you are financially dependent on debt, and that can be a frightening place to be. At this stage, it’s time to make lifestyle changes that focus on saving money or even considering a second job, at least part-time, to get out of debt and the continuous need to borrow. Stage Three – Financially Dependent on Your Paychecks Many Americans ( 75 percent, according to CNBC) fall into this “stage three” category. In this stage, you are making enough to get by, and little else. Some refer to this as living paycheck to paycheck. At this stage, the only thing left to do is eliminate the low-hanging debt fruit you have and then chip away at all other debt, one debt at a time until you can move forward with your financial independence goals. Stage Four – Early Stages of Financial Independence At this stage, you are still on the edge of financial instability. You do have many debts paid off, but you must continue bringing in income from your job to maintain your current standard of living. You are a lot more comfortable and better prepared for the financial realities that lay ahead when you are in stage four. Now is the time to ramp up your efforts to save for the economic freedom you seek. Stage Five – Moderate Financial Independence During this phase of financial independence, you can see the light at the end of the tunnel. You have saved enough money and could conceivably manage several months of unemployment but are not ready to face life without a reliable income or salary. You have more personal freedom at this stage. You may consider changing careers to one that provides greater fulfillment, even if it does offer fewer financial rewards. Continue saving until you have prepared for the final stage of your journey. Stage Six – Partial Financial Independence At this stage of financial independence, you can shift your focus to work you find meaningful or take pleasure in doing. You do not depend on your income to survive, though you may not be financially free enough to live the lifestyle you desire without continuing to bring in some form of income. Stage Seven – Complete and Total Financial Independence At this stage, you never need to work a day in your life again unless it is work you genuinely want to do. With this degree of financial freedom, you can live the lifestyle you desire without being forced to tighten your belt to make ends meet. “The journey of a thousand miles begins with one step.” – Lao Tzu. So, begins your journey to true financial independence. These are the stages involved.

Becoming Financially Independent

View Resource Becoming Financially Independent
Cash back is an incentive that many credit card companies offer to encourage the loyal and consistent use of their cards. For some consumers, the promise of getting cash back for specific types of purchases was a major selling point used in the selection of a particular credit card over other options available. Depending on the card you choose and the types of purchases you make, you could earn cash back in the range of one percent to five percent, or possibly even more, on those expenditures. Cash Back Credit Cards At one time, the leading reward credit cards offered were airline miles. These miles represented dollars you spent on travel and could be traded in for flight upgrades, flights, hotel rooms or room upgrades, or other travel-related expenses. As credit cards evolved, so did the rewards, with credit cards offering rewards that enabled you to purchase gift cards for select retailers. Today, many credit card companies allow customers to earn cash back rewards on purchases they make at certain retailers. When appropriately maximized, this is cash back that can make a difference for your annual financial bottom line. Tips for Maximizing Rewards Many people who have cards that offer cash back for purchases are not taking full advantage of the cash back benefits available to them. There are a few ways you can maximize your rewards, so you get more cash back bang from your credit card bucks.
  1. Choose your cash back card wisely. Different cards offer higher rewards for different categories of purchases. Popular categories include things like travel, groceries, dining out, or gas. While one card may offer one or two percent cash back on all purchases, it may offer an additional one or two percent cash back on a specific category of purchases. While gas was once a popular choice, that might not be the best way for you to maximize your cash back reward. Purchases of groceries, for example, often offers a great opportunity for maximum value, especially if you have a large family and grocery bill. With cards that reward you for grocery purchases, every time you spend money on food, you are getting cash back in your pocket.

  2. Pay all your bills with your cash back credit card. Think of all the bills you currently pay each month using, a check, debit card or through online bill pay. Consider using your rewards credit card instead and you can earn cash back on things you are already spending money on. It adds up pretty fast when you consider monthly payments such as:
    • Mortgage or rent

    • Utilities

    • Mobile phone bills

    • Internet fees

    • Subscription services

    • Hotel reservations (especially for people who travel for work)

    • Health insurance

    • Auto loan payments
    Each month, these bills can add up to several hundred if not thousands of dollars. Pay them with your credit card, then immediately pay your credit card bill, so you are not paying interest on these purchases.

  3. Pay attention to the details. One of the biggest mistakes people make when attempting to maximize cash back on credit cards is failing to read the fine print. It is vital to know if there are quarterly or annual limits on the amount of cash back you can earn. If there are, it might be wise to consider multiple cards, so you can employ your cash back maximization efforts accordingly to get more money back month after month.

  4. Pull out your plastic for major purchases. Whether you are buying appliances for your home, electronics, furniture, or outfitting your new home office, if you are making big purchases, credit cards, especially those offering cash back rewards, are the best way to go. Credit cards can also provide an added layer of consumer protections for any disputes you might have with the seller.

  5. Be aware of cash back options. Some consumers may not realize that they have several options available to them as to how they can receive their cash back rewards. Most credit card companies allow you to choose between cash back in the form of checks, gift cards, and statement credits.
    What you might not realize is that accepting these rewards in the form of statement credits may be the best way to go. Not only does it help you reduce the balance owed on the card, which is almost always good news. It also helps to increase your available credit. Which, in turn, improves your overall credit score, reducing interest rates, and ensuring a wider availability of credit for you.

  6. Take advantage of bonus categories. Other things you can do to help maximize your ROI with your credit card spending is to take advantage of bonus categories each month. These allow you to earn higher cash back on specific purchases in that category.
There is not a single best cash back card that is best for everyone. Finding the best cash back credit card for you depends on your spending habits, the card’s specific rewards program and benefits, and the value of the cardholder benefits you can use. However, when you use all the above strategies together to maximize your cash back, you can get far more mileage in the form of cash back rewards from your efforts.

Are You Maximizing Your ‘Cash Back’?

View Resource Are You Maximizing Your ‘Cash Back’?
Children might not fully understand the whole concept of money as a measure of value, however, many children like money because they do recognize it as a medium of exchange or method of payment. They generally realize that to buy something they want, they need it. Teaching kids to count money can be a little confusing at first for them, but it is essential since it is one of the basic concepts they will use throughout their lives. You can introduce the concept of counting money once your child has a basic understanding of simple math. You will then move on to helping them identify different types of currency and their value, and fun counting games can help you do this. Identifying Coins and Currency Money comes in various sizes and shape. It also comes in paper and coins. The size doesn’t matter — the denomination of money is what matters. Different units of money come with a specific value. While adults understand these simple facts, children may have problems with these facts. Paper money currently in circulation comes in bills of: Current coins in circulation come in denominations of: Of course, you might find also run across half dollar ($0.50) and dollar ($1.00) coins in your change, but they are a lot rarer to possess. An essential concept you should convey to your children is that all U.S. money or currency has the dollar as the unit of value. Coins are only fractions of this unit and bills are multiples of this unit. One hundred pennies make up a dollar. Twenty nickels or five-cent coins also make up a dollar, and so forth. When you can get your kids to understand money is based upon the dollar unit, it will allow you to further explain equivalents to them such as: Learning to Skip-Count Before introducing money into your child’s lesson, teach them how to skip-count. Skip-counting is where you count by multiples of 5s or 10s or 20s. It is a simple way for your child to count bills and coins of most U.S. denominations. Continue practicing skip-counting with your child until they can skip-count all coin values up to one dollar and 100 by 5s,10s, and 20s. Counting Games Here are some fun counting games you can implement with your child to make learning how to count money fun: Hundreds Chart Create a chart that has 100 squares, labeling each square in sequence with the numbers one through 100. Give your child a handful of different coins and tell them to place each one on the square representing the total value, having them begin with the highest-value coin and working their way down. For instance, if you give your child three pennies, a nickel, two dimes and a quarter, they would begin with the quarter, placing in on the square with the number of 25. They would then place the dime on the square with the number 35 since the total of both coins comes to 35 cents. They then proceed by setting the next dime on the square with the number 45, the nickel on the square with the number 50 and so on. Matching Game Using single coins, create pairs of cards. On one card, put a photo of a coin (or tape a coin to a card). Then, write different coin values on separate cards. Shuffle the cards and have your child practice matching coin cards with its matching written value card. You can even try combining several coins on one card to make the game more of a challenge. Your child can practice adding up the values of the coins on a card with its corresponding written value amount. Partner Match Game Here is an excellent game for a group of children. Before starting the game, place sets of coins in individual plastic baggies. Make sure that each baggie has a mate that contains the same value of coins, but use different combinations of coins to match overall totals. To start the game, give each child one of the baggies. Their challenge is to find the partner who has their matching coin total. Takeaway Counting money is an essential functional skill for all children. For kids, learning to count money does not just provide them access to items they wish to buy, but it also provides them with the foundation for comprehending the base ten numbering systems that will help them later learn percentages, decimals and the metric system essential for technology, science, and even the social sciences. Like all skills, using and counting money will eventually teach your child independence, but it all starts with “baby steps.”

Teaching Your Child to Count Money

View Resource Teaching Your Child to Count Money
If you look long and hard enough, you will find a subscription service for just about everything these days. From shaving supplies to dog food and more, there are hundreds of subscription services to meet the diverse needs of individuals living in a modern society. One category of services that are getting attention and interest from people across the country are “grocery delivery subscriptions.” What do they have to offer you and are they worth the prices they charge for the convenience they provide? Overview of Subscription Grocery Services You have a variety of features and options among today’s grocery delivery subscriptions, including services: Advantages Before you shake your head and walk away from this new-fangled way of getting food into your pantry, refrigerator, freezer, or on your table, there are plenty of benefits to consider when it comes to grocery delivery subscriptions, including those listed below. Disadvantages While the list of advantages is long and impressive, there are some drawbacks to consider as well. The better you understand them, the wiser decision you’ll be able to make for your needs. For most people, it does come down to the question of time and money. The right grocery delivery subscription services can save you both, which may make them well worth a few added dollars to your grocery spending.

Do Grocery Delivery Subscriptions Make Sense?

View Resource Do Grocery Delivery Subscriptions Make Sense?

What is Beneficial Ownership and How it Affects Your Accounts

View Resource What is Beneficial Ownership and How it Affects Your Accounts
Often for small to medium businesses and even some larger businesses, it is not economical to have your own merchant account and be a merchant service provider. That’s why third-party payment processors are a great solution – instead of having a merchant account which comes with high set up costs, a business will work with a third party who has their own relationship with a merchant services provider. Third party payment processors frequently offer their clients payment services via the Automated Clearing House (ACH) network, which is convenient, but also comes with its own set of rules and requirements to avoid fraud and other problems. For businesses and other third-party senders who process ACH transactions, there are a number of security requirements required by NACHA (National Automated Clearinghouse Association). These rules apply to any business that processes ACH transactions in either direction, whether to pay employees or vendors or to accept payments. Most business owners either have an ACH merchant account to process ACH transactions or use a third-party system to process ACH transactions. Businesses that use third-party vendors need to maintain a level of security to make sure the process goes through accurately and sensitive ACH data stays protected. The business itself is responsible for the security of the data and must put access controls, including data encryption and firewalls, in place to safeguard sensitive information. Third party venders process on behalf of their different clients and use their deposit accounts to conduct the payment process. From the business owner’s perspective, the ACH rules require any transmission of banking information, such as a customer’s bank account and routing number, be encrypted using “commercially reasonable” encryption technology if transmitted via an unsecured network, like the Internet. Regular email or insecure web forms are not an acceptable way to send personal and sensitive information. So if you use a third-party software solution for transmitting ACH, ensure that the company you choose has the most up-to-date encryption available. From the bank perspective, businesses that use third-party vendors also have to comply with the security procedures outlined by NACHA. To maintain security and assure validity of the items on ACH files, these procedures should be followed: – The business is responsible for security of sending ACH items to the bank, and the bank is responsible for the security of processing and transmitting the ACH item to the Federal Reserve. – When the ACH files are received by the bank, they are processed exactly as they are received. Dates cannot be modified after the receipt of files. – If a file has been processed by the bank, the bank will reverse files or entries only after receiving a Reversal Request through Business Online Banking from any two authorized users that have the authority. – If the file has not been processed by the bank, the bank will delete the entire file after receiving a written, signed request from any two authorized signers. The bank will verify that the person signing the request is authorized to do so. – When a business submits transactions through Business Online Banking, this will be considered a valid transaction by the bank – no additional verification will be performed. This is the main reason that only granting Business Online Banking access to necessary people is so important. – The business is responsible for establishing the Business Online Banking access IDs and passwords. Only employees responsible for ACH transmissions should have access to this information. – The business is responsible for ensuring that passwords are secure by changing them on a regular basis, especially in the event of an employee termination. – The business is responsible for notifying the bank if unauthorized personnel may have gained access to the Business Online Banking platform. – Both the business and the bank agree that all telephone conversations, emails, and data transmissions are secure and are only shared with the necessary people, but they may also be electronically recorded and retained by either party. If your company processes ACH transactions, make sure to stay on top of all the latest rules and procedures as established by NACHA. Visit their website for the most up-to-date information.

Keep Your ACH Transactions Compliant with NACHA Requirements

View Resource Keep Your ACH Transactions Compliant with NACHA Requirements