Financial aid offers make college possible for many students across the country. But not all are created equal. It is essential to make an apple to apple comparison when it comes to financial aid packages to make the best decisions about your higher education options.

What Types of Financial Aid are Available?

Financial aid comes in many different styles and can include support from your college or university, the federal government, or private sources. These are some of the types of financial assistance that may be included in your financial aid offer. While other financial aid types are available, these are the most common financial aid types available today.

What Is a Good Financial Aid Offer?

The best financial aid offers are those that allow you to proceed with and complete your college education with the least amount of debt. If you must take on debt, it is best to prioritize subsidized debt over unsubsidized debt. The sad truth is that most people cannot fund their complete college education with grants and scholarships alone. Rising tuition and on-campus housing costs have created a scenario in which most grant programs are insufficient to meet students’ needs over four years. Consider that many students require five years to complete all course requirements, and those expenses are even more significant. That means you must compare financial aid offers that consider a wide range of information in addition to the cost of tuition, such as: Loans exist to fill in the gaps that grants, scholarships, and work-study programs leave open in your educational funding needs. They should be approached cautiously and used only when necessary. The best financial aid packages offer you the option to use few if any, student loans for your education.

Which Offer Is Better?

Because some grants, scholarships, and work-study offers are college-specific, you will have to compare packages individually to determine which best meets your needs. You will need to do a little homework to compare the cost of attending the various colleges and universities, including living expenses in and around the college.

Takeaway

The financial aid landscape can be tricky to maneuver, especially for students just beginning to explore their financial aid options. These tips can help you make better-informed decisions about which college you attend, the financial aid you accept, and even where you live while attending college.

Comparing Your Financial Aid Offers

View Resource Comparing Your Financial Aid Offers
With all the available credit card reward programs, the problem is not whether you should get a rewards card, but what type would be the best?

What Are Credit Card Points and How do They Work?

Credit card points are one of the three primary credit card rewards types. The other two are miles and cash back. You can earn credit card points in various ways, which include: When it comes to a points credit card, you will most likely earn a minimum of one point per $1.00 you spend on all your purchases. However, other cards may offer more or less. Individual card programs may provide the same point amount across all purchases. Others will reward specific spending categories (i.e., restaurants, gas, groceries) with extra points. You can typically redeem your credit card points for things like: Sometimes, you could also redeem donations to charity or exclusive events. Each issuer provides a distinct range of choices and configures your redemption price settings. For instance, your points might be worth a penny when you put them towards travel. Then for cashback, they might be worth half a cent. While individual issuers have their own redemption instructions, you can typically redeem your points by going to your online account and the issuer’s reward center. This is where you will see your reward choices and their cost in points.

Getting the Most From Credit Card Points

When you contemplate signing up for a rewards card, the most essential thing is to do some serious thinking. An application you get in the mail might seem perfect, but it might not be a good fit in practicality. For instance, you might get an airline miles card, but you hardly ever fly. This would not be an ideal match. So, here are some tips to help you get the most out of your credit card points:
  1. Align Your Interests and Your Rewards
    Different reward card programs will come in various forms. Typically they allow you to collect points toward:
    • Gift cards

    • Merchandise

    • Cash back

    • Points

    • Travel miles
    Therefore, it would make sense to align your rewards with your goals or with what interests you. Suppose you are focused on budgeting your income better, for instance. In that case, you may select a card that provides cash back on basic things like filling your gas tank or shopping at the grocery store. Obviously, you would probably want to go with an airline miles reward card that provides you with miles if you travel. Try to avoid reward programs that try and entice you to spend more money, like those where you are required to meet a specific spending requirement within a short period. You might wind up spending more money than you normally would have.

  2. Do Some Comparison Shopping
    A big mistake a lot of consumers make is impulsively adding a credit card to their wallet. Rather than making an impulse decision at the moment, take several minutes to compare similar credit card offers online.

  3. Run Spending Through a Single Card
    Narrow the number of cards you use and do most of your spending on that card. That way, you will maximize the value of that card’s rewards program. Having a good rewards card will not do much good if you do not use it. While you do not want to spend needlessly to earn rewards, use the rewards card to pay for your usual expenses. This way, you will get more out of your spending in the form of rewards.
    To keep your credit card balance under control, you might wish to make weekly payments to avoid an unexpected bill at the end of the billing cycle.

Cash Back or Travel?

Selecting a rewards credit card will often mean choosing between travel benefits or cashback. There are advantages to both. Cashback is easy to redeem and flexible. Miles or points offer you the chance of free vacations. These days, individual cards allow you to redeem rewards for travel or cash at the same value. However, if you are making a decision between the two, your lifestyle is really what you should consider. Cash Back Rewards come in dollar form with a cash back card, not miles or points. You can redeem your rewards for: Cashback cards do not typically charge an annual fee. Not to mention, redeeming the rewards is really simple. Travel With travel credit cards, you receive miles, points, and in some cases, cash. There are two primary types: For individuals looking to earmark vacation rewards, these types of cards could help and may provide extra benefits.

Takeaway

There are a few essential things you need to consider when it comes to rewards cards or credit card points. You must decide whether you want a card with increased rewards in specific areas or a card with straight points across all of your purchases. Then base your decision on how you typically spend. Once you choose, regularly use your card – but not too much, so you can earn rewards and redeem them. Be sure you completely understand all your redemption options, particularly the value of your points for each.

Evaluating Credit Card Reward Programs

View Resource Evaluating Credit Card Reward Programs
If you own a home, the mortgage payments you make each month could help you build a substantial asset – home equity. The home equity you build represents how much of your home you own, which can grow with time.

What Is Home Equity?

Equity is how much of your house you actually own after you account for debt. To calculate this value, you will need to subtract your loan’s balance from your home’s market value. If you come up with a negative number, your house is worth less than what you owe, and you end up with negative equity. Having equity is valuable. It enables you to:

How to Build Equity in Your Home

There are ways to build up your home’s equity, including:
  1. Make a Large Down Payment
    Making a bigger down payment when you purchase a home allows you to gain equity right from the start. It is instant equity. For a bonus, when you put 20% or more of your property’s value down, you avoid costly private mortgage insurance.

  2. Pay More Money on Your Mortgage
    If you choose to add to your monthly mortgage payment each month, ensure the money you are adding will apply to the mortgage principal. Ask the lender of your mortgage how you can do that and keep an eye on your monthly mortgage statements to ensure the money is being credited accurately. There are several ways of paying more regularly:
    • Add more money to your monthly payment. Ensure it is a high enough amount that will make a difference but doesn’t harm your budget.

    • Change to making mortgage payments biweekly. Instead of paying monthly on your mortgage, pay biweekly. This will add on an extra monthly payment annually to your mortgage.

    • Schedule additional automatic payments with your bank or credit union to apply to the mortgage at regular intervals.

  3. Enhance the Property
    Some home improvements, remodeling, and curb appeal projects can boost the equity of your home. Smaller projects, such as replacing a front entry door or garage door or adding attic insulation, do better at increasing your home’s equity, particularly if you pay with cash rather than through a loan.
    Other things you can do to improve your property’s value involve enhancing your home’s energy efficiency. For instance, you can install double-paned windows, switch to LED lighting, upgrade to energy-efficient appliances, and add solar panels. Even smaller upgrades, like adding a smart thermostat, can appeal to energy-conscious buyers. Of course, modern bathrooms and kitchens are sought after, as are finished basements and decks.

How Does Building Home Equity Help Me?

Building equity in your home could be a long-term wealth-building strategy. Making your monthly payments decrease the amount you owe, therefore making payments on your home is often referred to as “a forced savings account.” This is different than almost all other assets bought with a loan, like vehicles, which lose their value as you’re paying them off.

Takeaway

It can take some time to build equity, but it is worth it. After you have built up enough equity, you can turn around and draw from it through a home equity credit line or home equity loan. Boosting your property’s value, making a larger down payment, and paying more on your mortgage each month are only some ways of growing your equity.

Building Equity in Your Home

View Resource Building Equity in Your Home
You may have wondered what happens if your aging parent ends up losing their ability to make financial or health decisions. How will you or other family members help them in these circumstances; how will you know what to do? A power of attorney, or POA, provides the legal ability to decide on another person’s behalf, like a loved one or an aging parent.

What Is a Power of Attorney?

A POA is a legal document that provides a person, referred to as the attorney-in-fact or agent, the authority to make decisions and take action on behalf of another person, known as the principal. Depending on the POA’s terms, the agent will have either limited or extensive authority to make a legal decision about the principal’s:

Steps to Create a Power of Attorney

There are certain steps you need to take to create a power of attorney. These include:
  1. Determining Your Needs to Help You Choose the Accurate Document
    You will first need to know the various types of POA documents available to you. So, what are your needs? Will you have to take over another person’s personal affairs or monthly expenses? Will someone have to take over yours? Do you need or want someone to make business decisions for you? Sell your property?

  2. Determining the Agent
    Depending on the state, the agent might be called an attorney-in-fact. Either way, they will receive the legal authority outlined within the POA to decide on behalf of the other person (the principal). This should be an individual who is:
    • Responsible and trustworthy

    • Won’t abuse this power

    • Make decisions in the best interest of the principal

  3. Filling Out the Document
    Once the “needs” have been determined and an agent selected, it is time to fill the document out. This is a simple process, but the document must comply with your state’s rules.

  4. Signing the Document
    Sign the document properly to make it legally binding. Again, depending on the state, you might have to sign it in front of a notary and two witnesses. Make copies of the document and keep the original. Many institutions won’t accept a photocopy of the document.

Different Types of Power of Attorneys

There are various types of POAs, including:
  1. Non-Durable Power of Attorney
    This type of POA is used for a certain period and typically for a specific transaction where you grant them the authority to act on your behalf. After the completion of the transaction, the non-durable POA ceases.

  2. Durable Power of Attorney
    The durable POA is a bit more binding than the non-durable POA. It might be used for allowing the agent to manage the principal’s affairs if they were to become unable to do so themselves. It doesn’t have a set period, and it becomes effective right away once the principal becomes incapacitated. It does expire in the event of the principal’s death, however.

  3. Medical Power of Attorney
    The medical POA grants the agent authority to take absolute control over the principal’s medical decisions if they cannot do so themselves or if they become incapacitated. This typically becomes effective upon the presiding doctor’s consent and allows the agent the authority to make all medical decisions for the principal.

  4. Limited or Special Power of Attorney
    This type of POA is used temporarily for one-time banking or financial transactions or selling a certain property. It is most frequently used when the principal cannot complete the transaction because of illness or prior commitments and wants to appoint the agent to act on their behalf.

  5. Springing Power of Attorney
    The springing POA becomes effective when a certain event occurs, such as your incapacitation. The springing POA must be extremely carefully crafted for avoiding any issues in identifying exactly when the triggering event occurred.

Takeaway

Suppose you are incapacitated or take care of a person who has no power of attorney chosen to handle things. In that case, your family will potentially be forced into time-consuming and costly delays. A power of attorney can be reassuring as a way to protect your real estate and financial interests, medical needs, health, and maybe even the manner of your death.

Creating a Power of Attorney

View Resource Creating a Power of Attorney
Spoofing is where an unknown person disguises communications as a trusted and known source. It is a form of cyberattack that criminals employ to meet specific malicious ends.

What Is Spoofing?

When it comes to cybersecurity, spoofing is where something or someone pretends to be something else in order to: A spoofing attack comes in various forms, mainly: So, how do cybercriminals fool you? They often simply invoke the name of large, trusted companies to get people to take some type of action or give up information. For instance, a spoofed email from Amazon or PayPal may inquire about a purchase you never made. Then, after raising concerns about your account, you may click on the link they include in the email. After you click on the malicious link, you are sent to a fake login page with a spoofed URL and a familiar logo, where you are prompted to provide your username and password. They may also use a malware download in an attempt to harvest your information.

Different Types of Spoofing Attacks

There are numerous types of spoofing attacks, including:
  1. ARP Spoofing. ARP spoofing is a common type of man-in-the-middle attack. It allows the attacker to intercept communications between network devices. Cybercriminals execute it by overloading a local area network with false ARP (Address Resolution Protocol) packets to allow them to tamper with the regular traffic routing process. Traffic is then redirected and read at the attacker’s computer before reaching its intended location. The attacker might also distort the data prior to forwarding it the actual recipient or they may stop all network communication.

  2. Spoofing. To perform an IP spoofing attack, the cybercriminal sends falsified source address Internet Protocol packets in order to obscure the packet sender’s actual online identity and thereby impersonates a different computer. IP spoofing is frequently used for setting denial of service (DDoS) attacks in motion.

  3. Website Spoofing. Con artists might try to dupe a target company’s staff into clicking into a “carbon copy” of a website they regularly visit and use for their work. Sadly, black hats (i.e. hackers looking to compromise systems, steal data, or take down networks) are rapidly becoming proficient at mimicking the legitimate website:
    • Branding

    • Layout

    • Sign-in forms

  4. GPS Spoofing. With people relying increasingly on geolocation services for avoiding traffic jams or reaching their destination, cybercriminals might attempt to manipulate the GPS receiver of a target device into signaling incorrect whereabouts.

How Can I Protect Myself Against Spoofing Attacks

Some ways of protecting yourself against a spoofing attack are:
  1. Be Observant. One way to prevent spoofing is to be observant. When you are alert, you can more easily spot any substantial spoofing attempts. Keep an eye out for various types of email message errors. Also, look for unusual sentence structures or inconsistent grammar. Typically, professional business entities don’t make trivial correspondence mistakes.

  2. Don’t Download Unsolicited Attachments or Click on Unfamiliar Links. If you doubt the sender, you could send a separate email to the sender’s actual email address, looking for confirmation.

  3. Check Out the Address of the Sender. One form of spoofing involves the sender’s address being tampered with by making slight changes to the letters’ positions in the address. By looking carefully, you can see if you’re dealing with a false address.

  4. Look Out for Phone Spoofing. Spoofing can occur on the phone as well. Install software on your phone that traces out the right caller ID. Or, you could check search engines to see if the number is linked with spam. You could also hang the phone up and call back the correct number.

Takeaway

In many ways, spoofing is worse than phishing since spoofing could be an attempt to steal data. Spoofing tricks the person into believing they are doing something right, but it is actually the opposite. The person will part with the data unwittingly, thereby causing harm to the company and its safety.

What is a Spoofing Attack?

View Resource What is a Spoofing Attack?
In the military, you can use available resources to help prepare for your future. As far as saving money, you have various tools to help you build and secure your financial future. And, the more you save, the more prepared you will be for unexpected events or opportunities that might come along. You might wish to purchase a new vehicle, help your kids pay for college, or contribute to a retirement fund. You can master these skills with tools and resources for saving and budgeting.

What Are the Basics?

There are some financial basics you need to know about:
  1. Saving and Budgeting
    You might be shocked at how small everyday costs add up. Go over your monthly cash flow to see how much you have coming in and how much goes out. What does the payment look like for your home? How much are you spending on your vehicle loan, entertainment costs, or household bills?
    There are various free downloadable apps to help you keep track of your expenses. You will also find software programs that can help, as well.

  2. Borrowing
    Being able to manage your debt is a critical part of your financial health. Having too much debt can negatively impact your financial position and credit score. A higher score could make it harder for you to obtain future loans.
    There are smart strategies available to help you recognize things like:
    • Bad debt vs good debt

    • Decreasing your credit card dependency

    • Paying down your bills

    • Taking control of your personal finances

  3. Blended Retirement Essentials
    Around 85% of all reserve and active-duty service members, under the Blended Retirement System by the military, will receive a retirement benefit, regardless if they are not eligible for full retirement. This is a huge difference from the number of service members who are saving for retirement today. You will be helping your future self out if you start saving today.

  4. Protecting Your Finances
    Many individuals fall victim to financial scams or identity theft every year which costs them time, money and aggravation. You do not want to join them. Learn different ways of protecting your military, personal and financial data and reducing your risk of becoming swindled while you are trying to build your financial security, which can slow you down.

What Options Are Available?

A primary resource for active-duty, National Guard, and Reserve service members and their families is Military OneSource. It is a U.S. Department of Defense program that provides free support and resources 24 hours a day, 7 days a week. Some available options include:
  1. Installation Financial Readiness Management Program
    The U.S. Department of Defense offers a network of support for the military community, including MilitaryINSTALLATIONS, one of many free resources from Military OneSource. These include:
    • One-on-one counseling

    • Seminars

    • Classes

    • Moving assistance
    They also provide additional information to educate service members about consumer rights and help them become financially stable.

  2. Family Life and Military Counseling Program
    This program provides counseling to help families manage finances, reach long-term goals like buying a home, get an education, plan for retirement, and resolve financial problems.

  3. Financial Counseling
    The Department of Defense provides numerous financial counseling options you and your family can use to plan and control your financial future.
    This resource helps service members learn personal finance basics, such as managing a checking account, paying down debt, creating a family budget, and selecting good investments. You can also read about military pay and compensation benefits, consumer rights, and military savings programs.

Benefits of Financial Counseling for Service Members

As a service member, you can gain access to financial counseling through MilitaryINSTALLATIONS programs for free. Counselors recognize and understand the financial challenges you have to deal with as a service member. The available resources could help you plan and manage your fiscal future. Obtaining financial counseling could help you by:

Additional Tools That Can Help

Service members have access to several resources for managing expenses and saving money. Learn about ways of saving and protecting your family’s financial health through these programs:
  1. Benefits.gov
    Visit Benefits.gov to find information on a large range of benefits you have available to you if you are an active-duty military or veteran. It is a resource available to all service members and their families. It provides information on:
    • Interest benefits

    • Interest rate reductions

    • Medical benefits

    • Educational benefits

    • And more

  2. Servicemembers Civil Relief Act (SCRA)
    The SCRA offers service members with a large range of benefits and rights, from eviction protection to interest rate reductions.

  3. Tax Preparation and Consultations
    Speak to a Military OneSource tax consultant by calling 800-342-9647 or visit their website for free tax consultations and tax preparation resources.

Takeaway

Having financial security may be simpler than you might think, particularly with the resources and tools available to you as a service member. Using them can help you create a successful financial plan for each phase of your life.

Financial Basics for Service Members

View Resource Financial Basics for Service Members
Google, Apple, T-Mobile, and the U.S. government are each working hard to end robocalls as well as other types of phone-based spam. While we all wait for these calls to end, it helps to know what you can do to end these aggravating and sometimes dangerous phone calls.

What Is a Robocall?

Robocalls compromise public safety and privacy, subject vulnerable consumers to intrusive and harassing debt collection and telemarketing tactics, and undermine the federal Lifeline telecommunications program. They use up low-income individuals’ precious limited minutes too. If you get a phone call and a recorded message is on the other end instead of a live person, you are dealing with a robocall. If you are receiving robocalls attempting to sell you something, chances are the calls are not legal – and are most likely scams. Unless you give a company your written permission to place a robocall to you to sell you something, it is likely illegal. The company must be clear about their request to call you with robocalls and gain your permission. It cannot make you agree to receive these calls to get a service or product. Even if you do give the company permission, you can always change your mind down the road.

Is There a Difference Between Telemarketers and Robocalls?

Telemarketers make unsolicited phone calls to help them sell their products and services. Robocalls, however, automate calls using autodialers and recorded messages.

Methods on Stopping Robocalls

The FCC is dedicated to doing what they can to protect you from these types of automated calls and unwelcome messages. They are taking various steps to crack down on illegal calls, such as:
  1. Budgeting millions of dollars to take enforcement actions against robocallers.

  2. Making it mandatory that phone companies use caller ID to help decrease illegal spoofing.

  3. Empowering phone companies to block unwanted or illegal calls by default before the calls even reach individuals.

  4. Making consumer complaint information available to allow for better labeling and call blocking solutions.

  5. Enabling consumer options or tools for blocking calls from numbers that don’t appear on their contact list or another “white list.”
What you can do: The FCC has provided some simple steps you can take to help decrease robocalls:
  1. Do not answer calls from unknown or blocked numbers.

  2. Do not assume any incoming call that appears to be from a local number is, even if it looks like it is.

  3. Hang up on any calls where you hear a recording like, “Hello, can you hear me?”

  4. If you receive a call from someone that says they are from a certain company, hang up and place a call to that company yourself. You can find the company’s official number on their website.

  5. Do not answer questions that a simple “yes” can answer.

  6. Hang up on any call that requires you to press a number to connect with a representative. By pressing a number or interacting with voice prompts, you let spammers know your number is genuine. They then can turn around and target your number more often or sell it to another company.

Takeaway

Keep an eye out for common phone scams, such as those scam calls that impersonate the government. If you receive a call from someone asking you to pay with a gift card, wire money, or hand over personal information, it is a scam. Look into call-blocking services to get fewer illegal robocalls. The call-blocking solution you decide on depends on where you are receiving the robocalls, whether on your traditional landline, mobile phone, or home phone, using the internet (VoIP).

Stop the Robocalls!

View Resource Stop the Robocalls!
There is no doubt about it. COVID-19 is one of the worst economic disasters this country has faced. Fortunately, we are a resilient nation. We can bounce back from storms such as this. Many people will be helped along the way by the various entities offering housing relief options for struggling homeowners who may be failing to make ends meet due to COVID-19. Whether you are unemployed or underemployed due to COVID-19 or are one of the millions of small business owners that simply could not remain solvent, there are various housing relief options available. They just may prevent you from losing your home as a result of the pandemic raging on our shores.

What Are My Options?

You may not feel like you have a lot of options when it comes to saving your home in light of your current financial situation. Relief might seem a foreign concept. However, the federal government and various lenders are stepping in to provide assistance to families in this time of great need. While some are providing humanitarian assistance, others are more practical in nature. The housing crisis of 2007-2009 looms large in recent memories for large and small lenders alike. No one wants to go through unprecedented foreclosures. As a result, new options are available to help you stay in your home. Whether you are a homeowner or a renter, there are protection options available for you. Each of these options offers some pros and cons, but all offer options for homeowners to find relief from overdue payments.

Protections for Rental Housing Relief

For renters who have fallen upon hard times due to COVID-19, there are protections to prevent landlords from evicting you. This protection went into effect beginning March 27, 2020, through January 31, 2021. There is a possibility this gets extended in later legislation. Some states offer additional security beyond what the federal government provides. What you need to know about this protection is the following: Your rent payments are still due. The protections only exist to buy you time. If you are experiencing hardships, it is always wise to seek state and local assistance and make arrangements with your landlord. You do not want to get too far behind. The ultimate goal is to avoid eviction once the restrictions are lifted.

How Do I Qualify?

For most of these programs, you only need to have the right kind of loan and take action to get started. The best place to start is with a call to your mortgage lender or landlord (according to your circumstances). Understanding options available can help you make informed decisions about the future of your mortgage.

Takeaway

Even with protections in place to provide housing relief options for COVID-19 and the financial devastation in its wake, you are still ultimately responsible for paying your rent and mortgage. These protections offer only temporary relief. It is up to you to repay your mortgage as promptly as possible and/or make arrangements with your lender for long-term relief.

Housing Relief Options and COVID-19

View Resource Housing Relief Options and COVID-19
Cryptocurrency is one of those words that is slowly trickling into our everyday vocabulary. Thanks to massive media coverage, many people have heard of it, but few people understand what a cryptocurrency is and what it could mean for them. The Cryptocurrency Evolution Perhaps the most widely known cryptocurrency on the market today is Bitcoin, which boasts nearly 14 million bitcoins in circulation. You have probably heard of this particular cryptocurrency. What you may not know, is that the intention of Bitcoin founder, Satoshi Nakamoto, was not necessarily to create a new currency, but to create a decentralized digital cash system. Many attempts to do just that have failed over the last several decades, mostly because they all attempted to utilize a Trusted Third Party (TTP) approach. Ultimately, all of these previous attempts failed, primarily because of security holes in the TTP approach. It was not until Satoshi tried to create a peer-to-peer system for electronic cash that a digital method succeeded. What makes this system different than so many others that failed? One reason is it is currently decentralized. That means no central servers are involved, and there is no controlling authority. What is a Cryptocurrency? The transactions are recorded both publicly and chronologically on a digital ledger referred to as blockchain. Blockchain technology has many uses other than cryptocurrency, but it works exceptionally well for this purpose because all currency transfers are verified simultaneously at both ends of the transaction. Today, cryptocurrencies have moved beyond Bitcoin. While Bitcoin remains the most recognizable name in the industry, other names are making waves and Investopedia recommends keeping an eye on these cryptocurrencies: Bitcoin may be leading the pack, but it is not the only one in the race. Of course, there is always the one we have not heard of yet that is waiting in the wings. One thing seems clear; cryptocurrencies appear to be here to stay. Where Can I Buy and Sell Cryptocurrency? There are a few exchange applications that can be used to buy and sell cryptocurrency: Exchange applications will help you keep track of your exchanges for cryptocurrencies and will list the current market as well. What Sets Cryptocurrency Apart from Regular Money? Several things that set cryptocurrencies apart from traditional money. Understanding these critical differences between conventional currency and cryptocurrency may help you understand the demand for cryptocurrency and how they might benefit you. Government bodies do not create or issue cryptocurrencies. Computer programs use highly sophisticated algorithms to identify new ‘coins’ and release them for public use. The combined user base of each currency, using vast amounts of computing power, record transactions between users in a peer-to-peer blockchain. The methodology used to create cryptocurrency keeps supplies limited and removes political or centralized decision-making from supply considerations. Because there is a restricted supply of any individual cryptocurrency, the value of the currency will theoretically grow over time. Fewer coins will be required to pay for goods in the future because the growing supply of products or services will outpace the limited, or static amount of coins. That is a deflationary model rather than the inflationary model traditional currency creates. Because an increasing supply of money decreases its purchasing power over time, prices typically rise with conventional currencies. That is not the case with cryptocurrencies making them attractive investments to some people. How Can It be Used? Some of the benefits related to cryptocurrencies are the very things that set them apart from traditional money. One of the most significant benefits is the anticipated increase in the value of these currencies over time. However, this is still more theory than fact as these currencies have not been around long enough to establish this maxim as absolutely correct. There are some benefits cryptocurrency users can enjoy right away, however. They include things like: For now, cryptocurrency is used primarily as a type of investment, but there is no limit in sight for its use if it becomes more widely available, distributed, and accepted. What Does the Future Hold for Cryptocurrencies? The one thing that remains up in the air about cryptocurrencies and their future is government regulations. Throughout the world, governments currently seem divided about how to address the issue of cryptocurrencies and their legalities. When the use of cryptocurrencies become more commonplace, new laws and regulations are likely to appear. We do not know how these things will impact cryptocurrencies and their usefulness. The evolution of technology has created more than a few new industries, regulations, and now even the invention of a new currency. Cryptocurrency may very well become the currency of the future – and perhaps a new economy — one that is driven by technology and access to that technology rather than numbers in a bank account or on a credit report.

What is a Cryptocurrency?

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Online bill paying has moved to the mainstream. According to a October 2019 report by the Credit Union Times, 57% of all bills are now being paid online with 21% being paid via mobile applications. Not surprisingly, Millennials and Gen Xers are leading the way, paying 61% and 60% of their bills online, respectively, according to the same the study. That is not surprising: Online bill paying is convenient and environmentally friendly. It can also save consumers money. Here, then, are the basics of how online bill paying works, and why you should embrace it. Convenience Think about how much work it is to mail your mortgage payment each month. Think about your car payment or student loan bill too. You have to write a check, record the amount in your checkbook’s ledger, address an envelope, find a stamp and go to your local post office or the nearest mailbox to mail the payment. When you are paying many bills each month — as the average U.S. household is — this can add up to a lot of wasted time. When you pay your bills online, though, you just log onto your bank’s Web site, enter your username and password and pull up your account. You can then either manually send your payments to your credit card company, auto lender or mortgage company. Alternatively, you can set up automatic payments, where your bank sends your payments to your credits on the same day each month, with you doing nothing. To set up online bill paying, call your bank. Most financial institutions today offer this service. Moreover, the vast majority of them provide the service at no charge. Cost savings That leads to the next benefit of online bill paying: It can save you money over the long run. If your bank or credit union offers free online banking, it makes financial sense to sign up for the service. Consider these numbers from ClearPoint Credit Counseling: The company estimates that the average U.S. household pays 15 bills every month. If you factor in the cost of a stamp for all of those bills, it comes out to more than $70 a year. If you sign up for online bill paying, you will not have to pay for as many stamps. Also, those calculations do not factor in the costs of an envelope or the gasoline you spend driving to and from the post office. Now, $70 a year might not seem like much money, but it can add up. Why spend it if you do not have to? Environmental factors Do you care about the environment? Do you consider yourself a “green” person? Then online banking is for you, too. Think of how much paper you waste when paying bills the old-fashioned way. Your creditor sends you a paper bill. You use an envelope to send it back. You tear off a check from your checkbook to write in your payment. That is a lot of paperwork that merely disappears when it comes to online banking. Security Some consumers are hesitant to sign up for online bill paying because of security concerns. They do not want hackers to gain access to their accounts. That is a reasonable fear, and massive banking hacks have happened in the past. However, you can take simple steps to protect your accounts. First, choose a password for your accounts that will be difficult for others to crack. Make sure to include numbers, symbols, and letters in your password. Secondly, don’t fall for phishing scams. Your bank will never ask in an e-mail message for your password, ATM number or Social Security Number. Never give out personal information online or over the phone to someone claiming to be from your financial institution. If you receive such requests, the odds are good someone is trying to steal your personal information.

Introduction to Online Billpay

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