Learning how to identify online fraud and understanding how fraudulent activity happens helps with prevention. Here are some past blog posts with information on identity theft and prevention.
Parents want what’s best for their kids, especially when it comes to their education. But what’s a parent to do if they feel that their child is not getting the schooling, or hand-on assistance they need to excel in life? Fortunately, there are several educational avenues available today beyond public education, among them private schools. But affording private school can prove to be a challenge.
Creating even more of a challenge is sorting through other options, including charter schools, magnet schools, home schooling/online schooling, and parochial schools. Before delving into affordability, let’s take a closer look at each of these options.
Private Schools/Independent Schools
These two types of schools have some similarities. Funding sources for both include tuition payments, charitable donations, and endowments. Private schools might also rely on religious organizations for funds. Independent schools typically are governed by a board of trustees. Students need to apply for admission to be considered for either type of school.
These schools are independently operated public schools that are founded by community organizations, teachers, parents, for-profit companies or a mix of some or all. They are funded by tax dollars and often private funding. Students are not charged tuition.
Although charter schools must follow basic curriculum requirements established by the state they’re located in, they are not bound by many of the regulations that conventional schools must adhere to. Oftentimes they specialize in certain areas, such as the arts or sciences, and may be geared toward specific groups such as high-risk and gifted students.
Magnet schools, which have been around since the 1960s-‘70s, got their start as a way to desegregate public school systems by encouraging students to attend schools beyond their neighborhoods. These free public schools are often highly selective and competitive. They mirror charter schools in that many of them specialize in the sciences or arts. In addition to receiving public dollars, magnet schools are funded by local, state, and federal sources via donations and grants.
These are church-related schools that are owned and operated by religious institutions such as Catholic, Protestant, and Jewish denominations. Most private schools in the country are parochial operations. Many of these schools will accept students of other religious affiliations, but most of them require students to attend religion classes and participate in prayer services.
Parochial schools are funded by tuition payments, charitable donations, endowments, and government funds.
Home Schooling/Online Schooling
Many parents choose to educate their children at home using a variety of resources, including online classes and curricula. This type of schooling gives parents more control over the educational process and also frees up kids to pursue what interests them the most. It also provides for more flexibility as far as when a student “attends” school. Parents typically shoulder the financial burden of this type of education.
Several of the types of schools described above offer scholarships as well as financial aid to students, particularly those who are facing monetary hardships. And there are schools that will offer discounts if more than one child from a family attends the school.
In addition to these funding sources, parents can use a special savings account to help pay for schooling. According to Investopedia, “a Coverdell Education Savings Account is a tax-deferred trust account created by the U.S. government to assist families in funding educational expenses for beneficiaries 18 years old or younger. The age restriction may be waived for special needs beneficiaries. While more than one ESA can be set up for a single beneficiary, the total maximum contribution per year for any single beneficiary is $2,000.”
By researching the type of school you want your child to attend and exploring the funding opportunities it has to offer, you can pave the way for an exemplary education.
The cost of a wedding keeps spiraling higher and higher. According to a survey by popular wedding website TheKnot.comAs a courtesy, you will be leaving Blog.Bank5Connect.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of Bank5Connect.com. Come back soon!, the average cost of a wedding in the United States was $33,391 in 2017.
If you’re serious about keeping a financial lid on your wedding celebration, there are dozens of ideas that can help make it more affordable. Taking some time to plan ahead can have a significant impact on the cost of your special day.
Here are some wedding saving tips to consider:
Start saving early. Create a special savings account for your wedding and routinely place money in it. Even if it’s only $50 or $100 per paycheck, your balance will add up over time. Relying on credit cards to carry you through could leave you with a hefty bill for years to come.
Get a good return on those wedding dollars. If you’re planning on having a relatively long engagement, you could benefit from placing your wedding funds in an add-on CD, rather than a savings account. For starters, interest rates on CDs (also known as “certificates of deposit”) are usually higher than that of traditional savings accounts, and an add-on CD allows you to add funds to your account at any time, so you can continue stashing money away on a regular basis. This is in contrast to traditional CDs, which don’t usually allow you to add funds after your initial opening deposit. But remember, if you do decide to go the “CD route”, be sure to choose your term-length wisely! You’ll typically be slapped with an early-withdrawal penalty for taking your money out of a CD before it matures, so before you commit, make sure you can afford to leave the funds in your CD until the maturity date.
Skip the wedding planner. It would be nice to have someone else handle all the details surrounding your big day, but is it a necessity? Probably not. Rather than shell out the big bucks for a professional, recruit a friend or two to help you pull the big day together.
Give yourself enough time to plan. The more time you have, the more research you can do to make the event more manageable money-wise. You’ll have a better chance of finding money-saving deals, and you’ll be able to avoid rush-delivery fees.
Tie the knot during the off-season. June and October have become the most popular months to get hitched, mainly because it’s usually neither too hot nor too cold during those months in most areas of the United States. Wedding dates around Christmas, New Year’s, and Valentine’s Day are also popular choices. But keep in mind the concept of “supply and demand”. Holding your wedding during a coveted time period is going to be more expensive than other dates. But by picking a date during the off-peak season, you can save yourself some big money – not just on a venue, but on everything from flowers to photographers and food!
Choose flowers that are in-season. You may have been dreaming about having a specific flower in your wedding bouquet since you were a little girl, but if that floral favorite isn’t blooming during the season you’re marrying, you’ll likely end up paying a premium for it. Visit a florist to get a sense of what flowers will be in-season during the time of your wedding, and pick from that selection to ensure you don’t break the budget. Chances are you’ll have plenty of beautiful options to choose from.
Stay away from Saturday. It probably doesn’t come as a surprise that Saturday is the most popular day of the week to hold a wedding. But just because it’s the most popular choice, doesn’t mean it needs to be your choice. If you’re serious about being smart with your wedding budget, you should at least consider an alternative day of the week. You could possibly save hundreds, if not thousands, of dollars by selecting a day other than Saturday. Speak with your preferred venue and other vendors before committing to a date, to get a sense of just how much money you could save.
Pick a venue that allows you to choose your own vendors. This wedding saving tip alone can make a huge difference in your budget. If you go with a wedding venue that is tied to (and mandates) specific vendors, it’s usually a given that those vendors are going to cost a lot more than if you shopped around yourself. Between the DJ, caterer, florist, and photographer, you could save a pretty penny in the end by hand-selecting each of your vendors.
Avoid the sit-down dinner. Needless to say, per-person plate costs can really whack you in the wallet, depending on what you’re serving. Why not opt for a buffet instead? Another option is to have a cocktail reception and serve only hors d’oeuvres.
Do you really need a wedding cake? Considering the price tag tied to a formal tiered or fondant cake, you could come up with a less expensive alternative that’s just as enjoyable. Consider trying a cupcake spread instead. Or, if your weakness is ice cream, set up a “sundae shop” with all the fixings. And, if your heart’s set on a traditional treat, another option is to order a “dummy cake”As a courtesy, you will be leaving Blog.Bank5Connect.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of Bank5Connect.com. Come back soon! with a small layer you can cut into, and then have your venue serve a less expensive sheet cakes to guests. They’ll never know the difference!
Tap into your crafty and creative side for table decorations. There’s no rule that you have to have flowers at each table, let alone flowers that are professionally arranged. Go online and see what ideas are floating about. If you’re having a fall wedding, a small pumpkin, a few gourds and some colorful autumn leaves can add a special seasonal touch. Photo albums can also make unique, conversational centerpieces.
Sometimes, it pays to think “outside of the box”. With careful planning and an eye on your budget you can have a memorable wedding celebration that you’ll cherish for the rest of your life, but won’t break the bank!
It’s a lot easier to send money to people these days thanks to peer-to-peer payments, commonly referred to as “P2P payments”. Using money transfer systems like Popmoney®, Venmo, and PayPal, you can easily send cash to friends and family over the internet – a lot more convenient than writing a check and sending it through the postal mail!
So how does this technological marvel work?
In the case of Popmoney, which Bank5 Connect uses to power its “Pay People” feature, funds are moved directly from one bank to another bank using the Automated Clearing House (ACH) network. This is in contrast to other P2P payment platforms like Venmo and PayPal, where an account is created and holds a balance.
P2P payment systems are steadily growing in popularity. According to one reportAs a courtesy, you will be leaving Blog.Bank5Connect.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of Bank5Connect.com. Come back soon!, there were more than 63 million adult mobile phone peer-to-peer payment users in the United States in 2017, up 40% from 2016. But with the rise in usage, just how safe are P2P payments?
All of the major P2P systems use encryption technology to protect customers’ financial information. Many platforms also use fraud monitoring and offer support services to deal with questions and issues, and to address unauthorized transactions. It’s best to familiarize yourself with the provider’s security policy, as well as your financial institution’s policy, before signing up for a P2P payment service.
Another way to protect yourself when using a peer-to-peer payment platform, is to sign up for, or opt-into, transaction notifications and alerts. Doing so will allow you to get a text message or email every time money is moved from your account. This can help you to spot any fraudulent transactions as soon as they occur, so you can alert your financial institution or P2P provider.
Other security tips to keep in mind include:
- Only send and receive money from people you know.
- The Federal Deposit Insurance Corporation (FDIC) recommends linking a credit or debit card, or a bank account, when using P2P payment services. By following this advice, if your money is misdirected, you can have the matter resolved by federal law. Keep in mind that if you keep funds in a P2P account, rather than a bank account, you are subject to the P2P provider’s policies and state laws, which can vary.
- Always double-check the phone number, name, and email address of those you’re conducting transactions with to avoid making a mistake and sending money to the wrong person.
- If you use a provider that requires you to set up an account with them, check the account activity on a regular basis and immediately report any suspicious activity to the provider.
While P2P payments are typically a lot more convenient than writing and sending paper checks, understand that they’re not instant. While transactions and notifications are sent and received almost instantaneously, it may take two to three business days for the transactions to actually be completed and posted to your account. The amount of time these transactions will take to post will vary depending on the P2P service or bank used.
It’s also a good idea to read all of the fine print before signing up for and using a P2P payment service. While Bank5 Connect’s “Pay People” service (powered by Popmoney) allows users to send and receive money using standard processing times, expedited payments may result in a fee. Other services may have fees associated with their services as well, so it’s best to do your homework before choosing the service that’s right for you!
Chances are you’re not going to find a book titled “The Basics of Financial Literacy” in your child’s backpack from school. But it certainly would be a helpful part of their curriculum.
If your child isn’t learning financial basics in the classroom, like how to save money, how to create a budget, or how to balance a bank account, that means the burden falls on you to teach them the financial ways of the world. Research has shown that kids who have sound money management skills, and who develop good money habits, have a greater chance of personal financial success in adulthood.
So when should you start laying this groundwork? Early on, according to experts. One of the first financial lessons you can teach your child revolves around that time-tested tool – the piggy bank. The simple act of having your child put coins in the bank on a regular basis can set the stage for learning how to save. You can even show them by example by having an “adult” piggy bank they can watch you put money into.
Once your child is a bit older, it’s time to introduce them to real-world situations where money is involved. A trip to the bank is a good place to start. Your child can watch you deposit money into a savings account, and you can explain to them that you’re putting that money aside, just like they do with their piggy bank. You can drive this point home even more by helping them to open a savings account of their very own.
Another great way to teach your child about money is to take them with you on a shopping trip. Even just heading to the grocery store is a great start. Your child can help you make a list of what you need at the store, and you can even have them add an item or two that they want. Once at the store, try to pay with cash so they can see that money is being used to purchase the items – the same kind of money that they have in their piggy bank.
If they have money of their own saved up, you can even let them bring it with them to the store. This can be a good opportunity to explain “needs” versus “wants” with your child. And, by letting them make a decision about whether to spend their money on a toy or a candy bar, or save up their money to purchase a “big ticket item” down the road, they’ll be able to start thinking about the financial choices available to them on a daily basis.
As they enter their teenage years, kids are old enough to understand the importance of creating and sticking to a budget. Again, showing by example is a good way to convey this knowledge. Let them sit with you while you pay the bills and explain what you’re doing. By showing them the importance of knowing how much money is coming in and going out of the household each month, you’ll be driving home a valuable lesson that will help them to manage their own money.
You might also consider helping your teen to open their own checking account. Since you’ll be acting as a co-owner on the account (children under the age of 18 need a parent or guardian to open a bank account with them), you’ll have a chance to oversee your child’s spending and money management habits, and step in when you see they need some guidance. By allowing them firsthand experience managing their own money, they’ll be a lot more financially savvy by the time they head out into the “real world”.
Once your teen proves to be responsible with their checking account, you can introduce them to the world of credit. Explain the basics of establishing credit and what it means to carry a balance on a credit card and pay interest on that balance. You can even walk your child through the process of applying for a credit card if you think they’re ready. And don’t forget to stress the importance of making credit card payments on time and paying at least the minimum required. A later lesson would be to show how maintaining good credit is important when it comes to taking out a car loan or applying for a mortgage.
Let’s be honest; what parent doesn’t want a bright financial future for their child? By introducing your child to the skills and knowledge they’ll need to manage their own money, you’ll be helping them to build a strong financial foundation they can take with them into adulthood.
As a parent, don’t you want your child to have a strong financial future? If so, the earlier you can start teaching them about money, the better. Research has shown that children start to understand the concepts of saving and spending as early as three years old, and some experts believe that money habits are formed by age seven. One way to get your child on the right track financially, is to give them a savings account of their very own.
A children’s savings account can help lay a solid financial foundation. From teaching the benefits of putting money aside, to allowing children to discover what interest is all about, a savings account can be a great educational tool.
Some of the specific benefits of opening a children’s savings account include:
- It gets children in the savings habit. By regularly depositing the contents of their piggy bank into a savings account, your child will foster good savings habits they can take with them into adulthood. By the time they head off to college or out into the “real world”, they’ll already be used to routinely putting money aside. As they say – “old habits die hard” – and saving money is a habit you won’t want them to break!
- They can watch their money grow over time. One valuable lesson is that you don’t have to spend it just because you have it. Kids tend to get excited when they find themselves with a few bucks, but instead of blowing their money on candy or cheap toys, placing it in a savings account can allow them to save up for something special. It can be a satisfying experience for them to watch their money grow with each deposit they make. And, a savings account that pays interest shows a child firsthand how their money can make more money.
- It puts them on the road to financial freedom. Using a savings account to save for something special can be a great way for your child to learn about financial independence. Rather than rely on Mom and Dad to buy them a new tablet or skateboard, they can use their own funds to make the purchase. Not only does this provide them with a sense of achievement, but it helps to teach them the value of a dollar. They won’t be as inclined to waste money down the road once they know how much effort goes into saving up for a treasured item.
- It can serve as a stepping stone to other financial products and services. By managing their funds in a savings account, kids can learn about interest and the difference between deposits and withdrawals. If their account comes with an ATM card, they’ll also learn how ATM transactions work, and what the consequences can be if they overdraw their account. All of these lessons will come in handy down the road when they open a checking account, or try out different savings vehicles like certificates of deposit (CDs), or Money Market accounts.
A children’s savings account can be a great way to lay the groundwork for sound financial habits. As for deciding where to open your child’s account, there are many options out there. You can go with an account specifically tailored to children, you can opt for an online-only account – which typically offer higher interest rates than traditional accounts – or you can open an account at your regular bank. Generally, you’ll want to look for an account that offers a competitive interest rate, and that doesn’t have a minimum balance requirement or monthly maintenance fee. And keep in mind that no matter what type of account you choose, any child under the age of 18 will need a parent or guardian listed on the account as well.
When you’re shopping around for a new savings account or a certificate of deposit, chances are that you’re looking for a competitive interest rate. But have you ever wondered just how the financial institution decides what rates to offer?
The truth of it is, there are several factors that influence the interest rates on deposit accounts. The first factor is the financial product itself. For example, savings accounts and money market accounts typically offer lower interest rates than a CD. This largely has to do with the level of access you have to your money. With savings and money market accounts you can typically make a certain number of withdrawals without penalty, while a CD requires you to leave your money with the bank for a specified period of time. Generally, the longer the term of your CD, the higher the interest rate you’ll receive. Think of it like this – the bank rewards you for leaving your money with them for a set amount of time. The longer you agree to leave the money there, the more likely you are to receive an attractive rate.
Of course, interest rates will vary by financial institution. Many online-only banks offer higher interest rates on their deposit accounts than their brick-and-mortar counterparts because they have less overhead costs to deal with. Because they’re not paying money to maintain and staff physical branches, they can pass that cost-savings along to their customers in the way of more competitive interest rates. Likewise, many brick-and-mortar banks offer “online-only” accounts with more attractive interest rates than their regular deposit products. The customer is expected to handle their banking needs online (and in some cases they’ll even be charged a fee if they need to visit a branch), and in return they receive a higher interest rate on their account.
Another factor in how banks determine the interest rates for savings products is supply and demand. The money that customers deposit into their bank accounts is the same money that the financial institution lends out to borrowers, who pay interest on the loans. So, if the demand for loans increases, and the bank needs more deposits from which to lend, they may be inclined to increase the interest rates on their deposit accounts to make them more attractive to savers like you. On the flip side, a decreased demand for loans could result in lower interest rates on savings accounts, because the bank doesn’t need as many deposits to keep up with lending demands.
It’s also typical for banks to base their deposit account rates on “benchmark” interest rates. The federal funds rate is the rate that financial institutions charge each other for extremely short-term loans. This federal funds rate is a common benchmark for the interest rates that banks offer their customers. In other words, if the federal funds rate changes, banks will typically adjust the rates they’re offering customers on savings products like savings accounts and CDs.
Investor demand for U.S. Treasury bonds and notes is another factor, as is the Federal Reserve, which sets the federal funds rate. The Federal Reserve (often referred to simply as “the Fed”) frequently makes announcements and decisions about how monetary policy will impact rates.
The Fed influences these rates by buying or selling previously issued U.S. securities. When it buys more securities, banks end up with more money than they can use for lending, and the interest rates decrease. And when the Fed sells securities, money from the banks is tapped, resulting in fewer funds available for lending. This, in turn, forces a hike in interest rates.
Knowing which factors affect the interest rates on deposit accounts can help you to make a more informed decision when you’re shopping around for a savings product. And don’t forget to review and factor in any fees or maintenance charges associated with the account before you open it – those can take a real bite out of your earned interest if you’re not careful!