MAKE MONEY ONLINE POSTS: 04/04/17

الثلاثاء، 4 أبريل 2017

CLOSING BELL: Stocks tread water as energy companies rise and banks fall

Stock indexes flickered between tiny gains and losses throughout the day before they mounted a small rally over the last half hour of trading.

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That $1.3 Trillion in Student Loan Debt is Taking a Toll on Homeownership

If you have a college degree and plan to buy your own home one day, I’ve got good and bad news.

The good news: Having a degree makes you more likely to own a home than someone without one.

The bad news: As your student loan debt rises, your chances of homeownership fall, according to a report released by the Federal Reserve Bank of New York.

Researchers with the Federal Reserve Bank studied how much debt students owed, then compared that by age, graduation status, the level of degree held and homeownership status. Those factors accounted for widely varying homeownership rates.

For example, those who took on debt to pay for an associate degree are more likely to buy a home by age 33 than those who didn’t attend college by 4 percentage points. For those with a bachelor’s degree or higher and no debt, homeownership by the same age is 25 percentage points higher than those who never attended college.

So regardless of debt, homeownership rates rise with education. But when comparing similar levels of education and factoring in the amount of debt each person has, the data show that student loan debt becomes a roadblock to homeownership.

This is especially a concern as student loan debt continues to rise.

The Insane Rise in Student Loan Debt

Ten years ago, the average college grad left school with about $20,000 in student loan debt. By 2015, that number jumped to $34,000. In December 2016, students nationwide owed $1.3 trillion in student loan debt, a 170% increase from 2006, according to the Federal Reserve Bank.

The Wall Street Journal attributes that spike in part to the rising number of Americans attending college.

This is significant because the gap in homeownership between those who graduated with and without debt widens with age.

Beginning at age 25, those who didn’t attend college have a lower rate of homeownership compared to college grads, regardless of student loan debt.

College Levels the Homeownership Playing Field

A bright spot in the study came when researchers looked into how family background impacted homeownership rates.

“One might expect those from wealthier areas, who presumably have greater financial resources, to own homes at a higher rate,” the report said. “However, we find that homeownership rates among college attendees are quite similar for both income groups.

“Thus, in terms of homeownership, college appears to be effective in ‘leveling the playing field’ across students from different socioeconomic backgrounds.”

Your Turn: Is your student debt delaying your home buying plans?

Desiree Stennett (@desi_stennett) is a staff writer at The Penny Hoarder. She graduated with an average amount of student debt and does not own a home.

This was originally published on The Penny Hoarder, one of the largest personal finance websites. We help millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. In 2016, Inc. 500 ranked The Penny Hoarder as the No. 1 fastest-growing private media company in the U.S.

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Owe the IRS? A Private Debt Collector Could Soon be Calling You

It used to be a rule of avoiding scammers that if someone called trying to collect money on behalf of the IRS, things weren’t kosher.

But starting this spring, the IRS can tap four contractors to collect debts on its behalf, meaning private debt collection agencies can now call you to track down what you owe Uncle Sam.

While the change seems huge and threatening, a deeper look reveals that debt collectors will only take on special cases.

What Kinds of IRS Debt Will Go to Private Debt Collectors?

This new program snuck into the Fixing America’s Surface Transportation Act (the FAST Act), which became law in 2015.

The option to contract out to debt collectors (Section 32102, for those of you who don’t have time to pore over all 490 pages of the FAST Act) applies to “inactive tax receivables,” which the law defines as outstanding assessments that have been removed from active inventory for one of the following reasons:

The taxpayer can’t be found.

More than one-third of the statute of limitation has passed without the case being assigned to an IRS employee.

The case has been stagnant for more than a year.

The new debt collection option mostly applies to accounts that have gone seriously delinquent. So if you’ve already set up a payment plan or have been in regular communication with the IRS about your ability to pay your taxes, your account likely won’t fall under the provisions of this option.

The IRS will not assign a variety of special cases to private debt collectors, including those in which the individual is:

Deceased.

Under 18.

Classified as an innocent spouse.

Currently under examination, litigation, criminal investigation or levy.

In a combat zone.

In a presidentially declared disaster area and requesting relief from collections.

A victim of tax-related identity theft.

The subject of an offer in compromise or a right of appeal.

Working with the IRS to pay a tax bill through an installment agreement.

How to Tell if Your Debt Collector is Really Working for the IRS

You’ll receive written notice if your accounts get transferred to one of the private collection agencies, an IRS explainer notes. The agency that takes your case — it’ll be Conserve Fairport, Pioneer Horseheads, Performant Livermore or CBE Group — will then send a second letter to confirm the transfer.

If you don’t want the IRS to transfer your account, you will have to send a written request to the private collection agency.

“Private collection agencies will be able to identify themselves as contractors of the IRS collecting taxes,” the IRS explained in a statement.

The private collection agencies will not ask for payment on a prepaid debit card — a tactic scammers posing as IRS agents frequently use.

“Even with private debt collection, you shouldn’t receive unexpected phone calls from the IRS demanding payment,” the IRS guide says. “When people owe tax, the IRS always sends several collection notices through the mail before making phone calls.”

So if you get an unexpected phone call asking you to hand over some cash to the IRS, remember, you can always just hang up the phone.

Your Turn: How do you feel about private debt collectors taking over some unpaid tax accounts?

Lisa Rowan is a writer and producer at The Penny Hoarder.

Amazon is Hiring Reps to Work From Home on Weekends and Evenings

As Amazon rapidly expands (and pulls out all the stops to stay ahead of the competition), so does the need for employees to run the instant-gratification machine that is this online sales giant.

So surprise, surprise — Amazon is hiring once again.

The company is looking for part-time, work-from-home customer service associates to promptly assist customers during nights and weekends.

To apply for this position, you must be located in one of these states: Arizona, Colorado, Connecticut, Illinois, Indiana, Florida, Georgia, Kansas, Kentucky, Maryland, Michigan, Nevada, New Jersey, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, West Virginia, Wisconsin or Virginia.

A Work-From-Home Job with a Flexible Schedule

The job is hourly and pays $10 per hour, with the opportunity to work up to 40 hours per week.

After a period of paid training (you’ll select your training schedule and self-direct the process), you’ll join the nights and weekends Reserves Program.

Then you’ll be able to claim your own hours from a weekly online scheduling portal.

Core hours will generally be on weekdays from 2:30 p.m. to midnight Pacific Standard Time and on weekends from 7 a.m. to midnight Pacific Standard Time.

From now through the fall, you’ll have to opportunity to log anywhere from one to 40 hours of work each week, although most of the Reserves choose to work an average of 12 hours.

During periods of high call volume, you may be required to work between 20 and 40 hours each week, and on holidays.

Are You Qualified for This Work-From-Home Customer Service Job?

Once you are approved to begin working, the company will send you a headset to the address provided during the application process.

It will be up to you to ensure that your computer meets some pretty standard requirements (you can check out the original job listing for more details), but if you’re using a laptop, you’ll need an external monitor, keyboard and mouse.

To be considered for this position, you’ll need at least a high school diploma or equivalent, English language proficiency, typing, phone and some pretty general computer literacy, and the ability to work in a quiet home environment.

Bonus points if you have a history in customer-centric jobs and working in a self-directed remote situation.

While benefits may vary by location and position, you can find the usual benefits for part-time U.S. based employees here.

If you’d like to see more posts like this, follow our Jobs page on Facebook so you’ll never miss another job posting again.

Your Turn: Do you need a part-time gig? Know somebody who does? Be sure to pass this info along!

Grace Schweizer is a junior writer at The Penny Hoarder.

You Can Finally Shop on Amazon Without a Credit Card. Here’s How

Amazon reported $857 million in income in the second quarter of 2016. That huge number — from only three months — shows just how insanely popular the online retail giant is.

If you’re bankless and without a prepaid debit card or gift card, though, enjoying the convenience of online shopping can be nearly impossible.

But Amazon just introduced a feature to overcome this issue and make online shopping less of a headache for those without credit or debit cards.

Amazon Cash: A New Way to Pay Online

On April 3, the online retail giant launched Amazon Cash, an alternative payment method. This concept is meant to bridge the gap between consumers without credit or debit cards, or access to e-commerce.

The best part? There are no fees.

If you wish to use the service, Amazon will send you a unique bar code linked to your account via text message. Don’t have a smartphone? No problem — there’s also the option to print it.

To load cash into your account, simply take the bar code to a participating retailer, and have the cashier scan it. You can load $15 to $500 in a single transaction.

Participating retailers include CVS, Speedway, Sheetz, Kum & Go, D&W Fresh Market, Family Fare Supermarkets and VG’s Grocery — and Amazon promises to add more retailers to the program soon.

Need a reason to try out this service now? Through May 31, 2017, loading your first $50 in Amazon Cash will get you a $10 digital credit. Keep in mind this credit expires June 30, 2017.

Those who use this program should be aware that Amazon treats these funds the same way it treats gift cards — meaning Amazon Cash transactions are nonrefundable, except as required by law.

Now, pretty much anyone can purchase items from Amazon, which can be dangerous!

Check out our tips on how to save money while clicking away on the online commerce giant.

Your Turn: Will you use Amazon Cash?

Kelly Smith is a junior writer and engagement specialist at The Penny Hoarder. Catch her on Twitter at @keywordkelly.

The Wage Gap Still Exists. Here are 3 Straightforward Ways to Narrow It

If you’re a tech worker who identifies as a woman, person of color or member of the Lesbian, Gay, Bisexual, Transgender and Queer community, you may wonder if you’re being paid fairly compared to your colleagues.

Here’s the short answer: No.

Job-search marketplace Hired recently conducted a survey that confirms other reports that show a canyon-sized gap in wage equality in the U.S. tech industry.

Research results show that white men outearn women and minorities at an astonishing rate.

wage gap

*Image courtesy of Hired.com

Non-LGBTQ men outearn everyone in the LGBTQ community, with LGBTQ men taking second place on the compensation scale. Non-LGBTQ women come in third, followed by LGBTQ women in last place.

According to Hired’s survey, LGBTQ women earn less than $110,000 while their male non-LGBTQ counterparts earn over $120,000 in comparable positions.

3 Steps You Can Take to Help Narrow the Wage Gap

It’s tempting to blame unfair practices in the tech industry for all wage inequality issues, but research shows there’s more to the pay gap problem than clueless hiring managers.

1. Make Sure You Get Paid What You’re Worth

Women, we’re bringing some of this on ourselves.

“When examining our candidates’ preferred salaries, we discovered that for 69% of the roles for which both a man and a woman were given an initial offer, women set their preferred salary less than men,” researchers say. “Women asked for an average of 4% less than men, though this number rose to as much as 80% in some cases.”

The good news is women are getting better at asking for higher salaries and recognizing they deserve to get paid what they’re worth.

“Instead of basing salary expectations off your current salary, which can perpetuate past wage inequalities, candidates should base their salary requests off their market worth using objective, third-party salary data that takes years of experience, skillset and location into account,” suggests Hired’s data scientist, Dr. Jessica Kirkpatrick.

“Thanks to online resources, it’s becoming easier to find objective salary information. For example, Payscale offers free salary surveys for people looking to get a new job or negotiate their current salary.”

It pays (literally!) to know your value in the workplace because women who specifically ask for more money than their male colleagues usually get it, especially women with four years of work experience or less.

2. Find Your Tribe

Women, people of color and LGBTQ community members can fight back against wage inequality by connecting with employers who embrace inclusivity.

Look for companies that openly support gender equality, gay rights and diversity.

Check with local schools, universities and civic organizations for networking events that could result in job leads.

Some organizations feature their inclusiveness and diversity initiatives right on their websites.

Scour job descriptions that give specific insight into the company’s hiring practices.

Consider switching careers to an industry where women already make more than men.

3. Interview the Interviewer

When you find a job you’re interested in, don’t be afraid to ask questions to make sure the organization is a good fit for you.

“One way to evaluate companies is during the final phases of the hiring process,” Dr. Kirkpatrick says. “After receiving an offer, I encourage candidates to ask questions that reveal how important diversity, equality and inclusion are to the company.

“One phrase that job seekers may find helpful is, ‘it’s important for me to understand more about the company’s philosophies on [diversity, equality and inclusion],’” she recommends.

“Asking these types of questions can help job seekers understand the company’s values and know if this is the right place for them to be.”

Your turn: How do you combat wage inequality in the workplace?

Lisa McGreevy is a staff writer at The Penny Hoarder. She’s always looking for fresh ways to help readers find satisfaction at work. Look her up on Twitter @lisah to share your favorite tips.

Cash In on Naptime: 14 Creative Ways to Make Money While Your Kids Sleep

Raising a family is hard work. The greatest mistake a stay-at-home parent can make is to plan on a flexible schedule and tons of free time to run a home business.

But if you’re flexible and you manage your time cleverly, you can make extra money while your kids are asleep.

“On a perfect day, my youngest naps around 9 a.m. for an hour and then they both nap for about two hours in the afternoon,” says Ami Spencer Youngs, freelance writer and mother of one- and three-year-old boys.

“Some days it doesn’t work out,” she admits, “but when it does, it’s good found time to get some emails sent, invoicing done or some other administrative stuff that might take up time later when I could be focusing on billable work.”

Not every day will yield that glorious uninterrupted work time. Some days, you’ll have to squeeze in a few minutes of work during your child’s power nap, or after you’ve put your kids to bed.

Here’s how to make money from home, whether the kids are out for a few minutes or a few hours.

You’ve been running around all day, and your brain is fried. The baby is finally asleep.

But now you’ve only got 20 minutes before the rest of the kids come home from school — and the baby wakes up again.

Here are eight ways to make money during a short nap — with minimal brain power.

1. Take Online Surveys

Earning potential: $7-$8 per hour

The pay per hour isn’t high, but the energy you’ll put into taking surveys is minimal. If you sign up for several survey sites, like Swagbucks or Ipsos, you could start a steady stream of revenue.

Complete 10-20 surveys in your free minutes to earn an extra $50 per month.

2. Watch Videos

Earning potential: $20-$225

It won’t be quite like getting paid to watch Netflix, but sites like Swagbucks pay you to watch videos. Brands pay the company to get their clips in front of as many people as possible, and it passes some of those earnings on to you.

The videos cover everything from entertainment to travel, so you’re bound to find something you’ll enjoy.

And if you don’t want to actually pay attention, you don’t have to. This writer figured out how to make the videos run in the background — on mute.

3. Earn Sign-Up Bonuses

Earning potential: $100-$250 per bonus

Banks and credit card companies are always looking for new customers — and are willing to reward you for being one of them.

If you’re smart with your savings and credit, why not earn money for the financial services you’d be using anyway?

Here are some of our favorite bank offers. Some of them require you to actually leave the house, but you can open several of them online.

Once you’ve earned a bank account bonus, take a look at credit card sign-up bonuses.

Follow our guide to choose the cards with the best bonuses and how to ensure you’ll be able to meet spending requirements. Apply for the credit cards online, use them for your normal purchases to earn cash or travel rewards.

4. Sell Your Junk Mail

Earning potential: $20 every six to 10 weeks

SBK Center is a market research company that will pay you for your junk mail and email.

Start by applying to be a Consumer Panelist. Then forward your junk email to SBK, and send it your junk direct mail in the self-addressed, stamped envelopes it provides.

You’ll earn points for each piece of qualifying mail you send. Once you earn 2,000 points, you’ll receive a Visa gift card. These work just like debit cards, so you can spend the money you earn nearly everywhere.

Frequent users can earn up to $20 in points every six to 10 weeks. It’s not a huge source of income. But it’s easy, and you’re getting the junk mail, anyway — why not get paid for it?

5. Become a Mail Decoy

Earning potential: $100 per month

If you want to earn more money from your junk mail, consider signing up for additional mailing lists. The Hauser Group will pay you to tell it about the mail you receive.

Run out to the mailbox while your child’s asleep, and report when you receive mail from certain mailing lists, like specific catalogs and flyers.

The company will pay you 25 cents for each piece of decoy mail you report. Consistent reporting can boost the amount of mail you receive, so you could eventually start earning about an extra $100 per month.

6. See If You’ve Got Unclaimed Money

Earning potential: Varies

This woman got a check for $50,000 when she learned of a life insurance policy her brother had forgotten about. A payout that high isn’t common, but around $1,000 is. That makes a quick online search worth it, right?

Every U.S. state has unclaimed property programs, as do Puerto Rico, the U.S. Virgin Islands, and Quebec, British Columbia and Alberta, Canada.

Here are some instances where you might have unclaimed money:

Inactive bank accounts

Contents of safe deposit boxes

Utility security deposits

Uncashed paychecks

Uncashed dividend checks

Unclaimed trust distributions

Unclaimed refunds of mortgage insurance

Forgotten retirement accounts

7. Browse Class-Action Settlements

Earning potential: Varies

Speaking of claiming surprise money, I recently submitted my information to claim $50 worth of free StarKist tuna from a class-action settlement. These opportunities pop up all the time, and most consumers have no idea they could qualify.

That’s because these cases often don’t make headlines. And you can’t be expected to search online for potential lawsuits for everything you purchase!

Instead, use your free minutes in the day to scan through Top Class Actions, which keeps updated listings of — you guessed it — top class-action lawsuits and settlements.

You won’t have to wade through legal jargon to understand what you’re owed. The site summarizes settlements clearly, and you can usually claim your money online pretty easily.

And don’t worry; not every settlement requires you to provide proof of purchase to claim your money. That could be tough, as they’re often for products you may have purchased more than a year ago.

If your kids are a little older or tend to take longer naps, you’ve got a bit more time to work with — sometimes an hour or more.

“I’ve been known to try to make these magical hours happen by putting the boys in the car after lunch and going for a drive,” says Youngs.

“If all goes well, I can park, pull out my Surface and my lap desk that I keep in the vehicle, and get an hour to 90 minutes of focused work done before anyone wakes up.”

These options are a little more involved than the ones above, but you’ll still be able to accomplish a fair amount of work during your child’s hour-long nap.

8. Fulfillment by Amazon

Earning potential: $400 to $9,000+ a month

Through Fulfillment by Amazon, you buy items you’d like to resell, then send them to Amazon — which handles the rest of the selling process, from storage to shipping to customer satisfaction.

Choose to sell anything you want (that fits Amazon’s categories), ideally something you know well. The Penny Hoarder founder Kyle Taylor sells toys, and he made $10,000 through FBA in November and December 2014.

FBA offers a great opportunity to do a little bit of work during each nap. One day, you might research buying opportunities — sales or promotions where you can buy your inventory at a discount.

The next, you might upload your items to Amazon and package them for shipping to the distribution center. Amazon has a partnership with UPS, so you might be able to ship directly from your house.

9. Find and Sell Unused Gift Cards

Earning potential: Varies; in 2014, a study estimated $750 million in gift cards went unredeemed.

The last time you received a gift card, did you spend it right away, or tuck it in your wallet for later?

Chances are, you’ve got a few gift cards lying around — so turn them into cash.

Take a few minutes to go through your wallet, purse, dresser, junk drawer or anywhere else you might have tossed a gift card. Then check sites like Raise, Gift Card Granny, CardCash or even eBay to see which one will help you sell your card for the most money.

For example, right now on Raise, one seller is asking $49.59 for a $52.68 Target gift card. So you won’t quite make back the card’s full value, but hey, you’re getting paid for something you weren’t using!

10. Sell Stock Photos

Earning potential: $1 per photo

You may have tons of untapped money-earning potential in your daily life. Pull out your camera while walking the dog, playing at the park, grocery shopping or just playing with blocks in the living room.

These are all valuable moments — and people are willing to pay for photos of them.

To get started, check out our beginner’s guide to selling stock photography. Then use naptime to edit, upload and list photos for sale on microstock sites.

You don’t even have to invest in a professional camera to get into the stock photography game! Download an app called Foap to sell photos directly from your iPhone.

11. Find Short-Term Freelance Gigs

Earning potential: $5-$50 per gig

Hammering out an online task or two each afternoon could help pay for a much-needed date night next weekend.

What you’ll do varies wildly.

For $5 or $10, you might design a simple logo for a client through Fiverr, tag photos through Mechanical Turk or promote someone’s website through Gigbucks.

When you have more time (and want to earn a bit more money), grab a proofreading assignment from Upwork, complete virtual odd jobs through TaskRabbit or scan online gigs on Craigslist.

If you’re able to wake up before your kids a few days a week, or otherwise carve out a few uninterrupted hours while they’re down for the count, you’ll probably find it easier to work on these earning opportunities than you would in short power-nap bursts.

They might not be quick money-makers, but these options can help you lay the foundation for future growth — for example, something you might want to pursue once your kids are in school.

12. Start a Freelance Business

Earning potential: limitless!

Whether you choose freelance writing or personal shopping or even calligraphy, you’re probably going to need a little more time to focus than a 20-minute nap will give you.

However, you can still start a freelance business while your kids sleep — if you’re strategic about it.

“If only my youngest is napping, I focus on short tasks like responding to emails, updating and sending out invoices, and writing notes and doing research for blog posts,” says Spencer.

But she takes advantage of the longer, quieter periods to do the bulk of her creative work.

“When I have more time and both boys are sleeping, I’ll flesh out those blog posts, work on document creation and editing for clients, and do other more focused tasks.”

Dipping your toes in the freelance waters? Try some of these in-demand virtual assistant services, like formatting blog posts in WordPress or curating content for social media.

13. Find or Create a Product to Sell

Earning potential: up to you!

Can you sew adorable Halloween costumes?

What about cute holiday ornaments and decorations?

If you prefer to work with a keyboard over a glue gun, why not create a fun Helvetica T-shirt or package your experience as an ebook or digital course? Or find a generic product to sell under your own private brand?

You’re probably not going to turn a profit in a weekend, but a few long naps or post-bedtime work nights could help you lay the foundation for your new business.

14. Start a Blog

Earning potential: up to you!

It’s definitely not a quick way to make money, but starting a blog can eventually help you earn some cash.

“As I worked to develop my blog, it began to attract advertisers,” says Cat Alford, blogger and mom of twins, told The Work at Home Woman.

“It was very slow at first, and I used to only receive one email from advertisers every month or two.”

“Now, I field emails every day, and in the last three months, I’ve made a full-time income from my website after only making pocket change for several years.”

Here’s our step-by-step guide to starting a blog, from coming up with an idea to figuring out how to make money from it.

How Will You Make Money While Your Kids Sleep?

Whether you have 10 minutes or two hours, you can earn extra money while your kids are asleep. It might not be enough to cover your mortgage payment (yet!) but every little bit helps.

Your Turn: Do you make extra money while your kids are napping or after they go to bed? Share your stories in the comments!

Disclosure: We have a serious Taco Bell addiction around here. The affiliate links in this post help us order off the dollar menu. Thanks for your support!

Heather van der Hoop is senior editor of The Penny Hoarder. When she’s not reading, you can usually find her playing along with Jeopardy! or climbing rocks, mountains and trees.

Tesco Bank reopens 3% interest current account but tightens eligibility criteria

Adam Williams

Tesco-bank-front_1.jpg

Tesco Bank has reopened applications for its 3% interest current account, although new customers face restrictions if they want to earn the headline rate.

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OPENING BELL: Stocks slip again following weak business investment report

Banks and energy companies are taking some of the biggest losses. Stocks fell the previous day after weak car sales raised some worries about spending on other types of purchases.

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ATMs Don’t Give Out Free Cash: 5 Things Your 5-Year-Old Should Know About Money

Teaching 5-year-olds about money sounds crazy. They can barely go potty by themselves — what could they possibly need to know about money?

If you want to raise a future Penny Hoarder, though… It’s never too early to start teaching financial literacy for kids.

Which is why we’ve decided to lay out what your 5-year-old should know about money, as well as some kid-friendly ways to teach them.

The first four concepts are straight from Money As You Grow, a helpful resource created by the President’s Advisory Council on Financial Capability, and the last tip is a special one for Penny Hoarders.

Here are five lessons your 5-year-old — and future money rockstar — needs to know…

1. You Need Money to Buy Things

What is money? What do you use it for?

Money concepts that may seem basic and obvious to you are probably baffling to your child.

For starters, let your child physically interact with money. Teach them the names of coins and small bills, then use them to practice counting.

Whenever you purchase a low-cost item — like a new pair of socks, a book or a cookie — talk about how much money it costs. Then, count out that amount of money together.

Playing “store” (one of my personal favorites!) is another great way to drive this concept home.

2. You Earn Money by Working

One of my friends recently learned that her kids thought ATMs made money and gave it out to anyone who wanted it. (Wouldn’t that be nice?)

Clearly, it’s not only important to help your child understand what money is, but also where it comes from. You don’t want them thinking there’s some magic money tree or machine.

Explain to your child the only way to earn money is by working hard.

Point out different jobs they can have when they grow up, and explain what you do at your job. Tell them you work every day so you can buy food, clothes and other items that keep your family happy and healthy.

Don’t forget to tell your child they also have a job: to do well in school. You don’t need to correlate good grades with higher earnings yet; just explain that everyone has a job, and for kids, that job is to pay attention and do their best in school.

3. There’s a Difference Between Things You Want and Things You Need

It can be difficult to teach kids to distinguish wants from needs — after all, it’s something many adults still can’t or don’t want to grasp!

One fun way to illustrate this is by having your child make a drawing with two circles: one for wants and one for needs. They can draw different items within each circle, and you can talk about why each one is a want or a need.

Another great opportunity? Going to the grocery store.

Use these sometimes insanity-inducing trips as a chance to talk with your kids about both money and healthy eating. Hold up different items and ask your child, “Need? Or want?”

By making the battle over cookies vs. cucumbers into a game, you can hopefully make your trips both bearable and educational.

4. You May Have to Wait Before Buying Something You Want

Piggybacking off the last concept is the idea of delayed gratification. (This one’s a good reminder for adults, too!)

This is where an allowance — regardless of how small it is — or an entrepreneurial venture, like a lemonade stand, can be effective in building financial literacy for kids.

With your child, pick an item out of the “want” side of their illustration, and talk about how they’re going to save for it. Make sure it’s something small and achievable, like a set of markers or a stuffed animal.

After you’ve figured out how they’re going to save for their purchase, get them a clear jar so they can see their money growing week after week. Help your kids develop a savings habit early in life, and hopefully it’ll be less of a struggle for them as they grow older.

5. It’s Fun to Save Money

This one is a special tip just for Penny Hoarders; since we know you love saving money, we want your kids to enjoy it, too.

An easy way to do this? Clip coupons together!

Look through the circulars and ask your child to point out items you normally buy. Get them even more involved in the process by letting them clip, carry and hand the coupons to the cashier.

If you’d like, you can take it a step further and give them whatever money you save with their coupons — that’s a surefire way to motivate them into bargain hunting!

Even if you don’t want to teach your child any of these specific concepts, just make sure you start talking about money. The worst thing you can do is avoid the subject completely.

You may not be as good with money as you’d like (newsflash: None of us are), but by equipping your child with basic financial knowledge, you’ll set them up for a bright future.

Here’s to your future Penny Hoarders!

Your Turn: Have you started teaching your kids about money?

Susan Shain, senior writer for The Penny Hoarder, is always seeking adventure on a budget. Visit her blog at susanshain.com, or say hi on Twitter @susan_shain.

9 Tactics for Figuring Out If You Really Need a Tempting Purchase

It’s a pretty familiar feeling for everyone at some time or another in their life.

You’re doing some household chore and you realize that having some particular item would make this task more convenient, so you add that item to your shopping list.

Or, maybe, you’re at the store and you see something that is pretty obviously going to take care of a problem in your life.

Or, maybe, you’re at the store and you find some sort of incredible bargain on something you don’t strictly need, but it’s a bargain that you’ll basically never find again.

Do you pull the trigger? Do you spend the money to buy these things?

These things aren’t quite needs. You can definitely go on in your life without them. However, it’s pretty clear that this is a relatively useful purchase as things go. You’re getting a huge bargain on something or you’re buying something that you’re pretty confident will be useful in the future.

On the other hand… is this really a sensible purchase? Is this something you should be buying right now, with all of your other goals in life?

People face these kinds of decisions all the time in modern life, and they’re not easy decisions. These kinds of decisions represent value conflicts, where one value we hold true in life is in conflict with another value, and whenever we make a call in those areas, it never really feels right. We might talk ourselves into the idea that we made the right call, but doubt often lingers.

How can you ever be sure you made the right call? How can you remove second-guessing from such purchases?

There is no magic recipe for doing so, but there are a number of things you can do to clearly decide if most tempting purchases really make sense or not. If you apply those tactics and then make a good decision as a result, you eliminate an awful lot of the doubt from that purchase.

Here are nine such tactics that you can use to separate the good purchases from the bad when you’re unsure.

Tactic #1 – Think about the difference between this product and what you already have available to you

Let’s say you’re looking at a new clothing item. What exactly sets this apart from items you already have in your closet? There’s probably something about it that’s different than what you have, so spend some time identifying what it is.

Now, consider just that difference, all on its own, and look at that price tag. Is it worth it to spend that much just for that difference?

I use this same strategy when comparing electronics purchases. Let’s say, hypothetically, I’m looking at buying a new laptop to replace an older one at home. When I’m comparing models, I don’t just compare them to each other – I compare them to what I already have at home. What exactly is this new laptop going to provide that I don’t already have with my old laptop and my tablet as a combo? What are the new things I’m going to get? A bit more memory? A somewhat faster processor? Now, is that worth several hundred dollars?

If you follow this tactic, purchases where you’re not directly replacing a broken item begin to look very weak, especially if most of the use for this item is already covered with items you own. In other words, it keeps you from adding yet another thing to a large collection of items or keeps you from buying a gadget that replicates features you already have.

Tactic #2 – Consider whether you can borrow this item and get all of the usefulness out of it

This is my primary tactic whenever I’m in a bookstore. I can’t help but be interested in lots of books there, so I ask myself whether I could get the same value out of checking that book out from the library instead. For most books, a library checkout provides the same value for me, as the value comes from reading the book and not necessarily owning it. Books I want to own are ones I’ll reread regularly.

I do the same thing at hardware stores when considering tools. Could I just borrow a drill like this from a friend when I need one? Could I borrow a staple gun? Most of the time, with tools, the answer is yes, as they often sit around in garages until they’re needed.

Whenever you’re considering buying something, consider whether there’s a way to borrow the item instead to get most of the value out of it. You can do this with books, tools, movies, games, hobby equipment, and many other things. Don’t buy something unless you’re getting significant additional value for owning it beyond what you would get from merely borrowing it; if you’re just going to read a book or watch a movie or listen to an audiobook for the first time, borrowing is well worth it. Save the purchases for repeated enjoyment.

Tactic #3 – Ask yourself whether you would consider this item seriously if it were not for the price

Sometimes, items will jump out at you because they’re on deep discount. You’ll see something that’s mildly interesting, but because it’s sitting below a 50% off or an 80% off sign, it suddenly becomes really tempting.

Here’s the thing, though: are you guying this item because of the item or because of the price tag?

The reality is that if something wasn’t under your serious consideration before you noticed a sale, then the change in price tag shouldn’t matter in the least. (There is an exception to that – flipping items for profit – which we’ll touch on again later.) If an item was one you were already considering and it just happens to now be on sale, then it’s a pretty compelling case, but if you weren’t considering an item before, then you have no reason to own it now.

Would you have seriously considered buying this item at full price? If the answer is no, then there’s no reason to buy it at sale price unless you’re going to flip it immediately for a profit, because if the answer was no from the beginning, you have no need or use for this item, regardless of the price.

I find myself falling into this trap during “buy one get one free” sales. It’s often tempting to pick up items under those conditions, but quite often what will happen is that I’ll see one item that I actually want and have been thinking about buying along with a bunch of stuff that I don’t want. I’ll then try to convince myself that now is the time to buy that one item because I get something else for free.

There’s a catch, though: I’m pretty sure I can get that singular item at a better price elsewhere, which means I’m actually paying some amount for that other item that I have zero interest in. For example, let’s say all of the BOGO items are $20 each and I see only one item I want, but I can get that item alone at another store for $15. What I’m essentially doing here is paying $15 for the item I want and $5 for some other item I have no interest in. Why would I do this? Why would I buy that second item that I have no interest in for any price?

The reality is that buying something that you don’t really want or need just because the sticker price is right is a fool’s errand – again, unless you’re going to flip it immediately, which we’ll talk about below.

Tactic #4 – Consider whether you need this item immediately

The idea that you could buy this item and have it right now if you’re willing to pull out the plastic and purchase it is very tempting. You could take that item home immediately and use it immediately. That immediacy is sometimes mistaken in our minds for a sense of urgency and it can feel much like a call that this is our one chance to get this item.

That’s rarely true. There are very few items that are anywhere close to unique and there are very few purchases that need to be made right now.

The simplest thing to do in a case like this is to just stop for a moment and agree that you can wait a certain amount of time before buying the product, for two reasons. One, you’re making sure you actually want or need this item. Two, you’re giving yourself some time to find the item elsewhere at a better price.

What I often do is give myself thirty days to wait on any new purchase idea that pops into my head. If I decide that I want something or need it in a non-urgent fashion, I wait. I don’t have to purchase this today – it can wait for thirty days.

During that time, I usually just let it rest. What often happens is that wants completely fade away and new solutions for many non-urgent needs are found, usually through borrowing or repurposing something else. If a desire can’t wait a month, it’s not much of a desire, after all, and if a need isn’t urgent, how much of a need is it?

If I reach a month’s time and I’m still serious about that purchase, then I start price checking. I shop around for a good discount on that item so that I’m sure I’m paying a good price for it. I’m surprised how I can sometimes find an item on sale, no matter what it is, if I do some price checking on it. In general, for every $100 of sticker price of the item on Amazon, I spend about 15 minutes searching for a better deal, and I usually end up finding that time was really worth it in terms of how much I save.

Tactic #5 – Look at what you will cut from your budget to make room for this purchase and compare them

Whenever you buy something, that means you’re not buying something else. That’s the reality of having a limited pool of money – if $50 goes toward one thing, that’s $50 less in the ol’ checking account for other purposes.

So, what would that $50 buy you? It’d help build toward a car down payment. It’d buy part of your grocery bill. It’d probably replace a bunch of your light bulbs with LEDs, thus lowering your energy bills going forward and eliminating light bulb replacement costs for a long time. There are many, many other things you could be doing with that $50.

Whenever you spend $50 on a frivolous want, you’re also sacrificing all of the other things you could do with that $50. Sure, you’re gaining something with that purchase, but you’re losing the potential to do a lot of other things as well.

This isn’t a call to never buy anything or do anything fun. It’s a call to be smart about it and to be somewhat selective in what you choose to do with your money. Stick to things that are surefire wins and have exceptional potential and avoid things that are relatively unexciting “maybes.”

Tactic #6 – Consider whether you’d use this item with any regularity

When you’re considering a purchase, it’s easy to visualize yourself using that item a lot, but often that’s just the picture that the marketing related to the product wants you to visualize. Is it actually real?

There are a lot of tell-tale signs you can look for in your life to help you figure out whether or not you actually would utilize the tempting item.

First, is it related at all to something you already do regularly in your life? If it’s an item that’s meant to cultivate a new habit, start with the new habit rather than the item. That way, you’ll know if the habit is something you’ll stick with and you’ll also have a better sense of what you need for that routine.

Second, if it is connected to something you do regularly, do you already have something that does this? If so, is this intended to replace it and, if so, have you really assessed that first tactic earlier in the post? In other words, what is this thing doing differently than what you already have, and how useful is that difference? How much is that difference actually worth?

If either of those situations is setting off any warning bells about this purchase, give it some time first to figure out whether this purchase actually makes sense. Establish a new habit and look at your habits and routines to figure out whether an item actually adds value to that normal routine. Don’t ever buy something under the impression that it will launch a new routine for you.

Tactic #7 – Tell your friends about this potential purchase

Another useful filter when deciding whether you need a potential item is to ask friends about it. Yes, some of them will be “yes men” and simply nod their heads in agreement, but those aren’t the friends that are valuable. The friends that are valuable are the ones that quietly talk to you one on one about the purchase.

So, ask your friends collectively about a potential purchase. Expect that some people will just automatically encourage you to buy and ignore them (also, ignore any blatant negative people – why are they your friends, anyway?). Instead, look for people who come up with reasons not to buy it, whether they do it in a group setting or one-on-one with you. If a friend actually has the courage to criticize a potential purchase, thank them for that criticism because it can take some courage to do that.

I have a group of friends whose opinions I trust deeply and when I’m on the fence about something, I ask them. They almost always give good advice and feedback, and it’s rarely universally positive. It’s their mix of specific points that come from knowing me and knowing the situation that almost always directs me to where I need to be going.

Tactic #8 – Look at your ability to immediately flip this item for a profit

If you’re the type of person who’s perusing items looking for something you can flip for a profit – something I’ve done myself many times – one thing to keep in mind is the idea of quick flipping. I’ve found that unless I know a particular item cold – I know the market and the manufacturer’s history and all of that – I’m better off flipping an item for a quick profit as fast as possible. I don’t hang onto anything I’m intending to flip without some special knowledge.

So, what does that mean if you’re standing there deciding whether to buy something to flip it? Immediately start looking for prices online for this item on auction sites. What is it selling for on eBay or on Amazon Marketplace? Is it actually selling for something substantially higher than what you see before you, such that you can list it immediately and turn a profit? If the answer is yes, buy it and flip it. If the answer is no, then pass on it.

Don’t bother holding onto “inventory” unless you know that the price is going to go up because you have some element of special information. Without that, you’re taking on a needless risk and locking up your money into something that has a good chance of losing money.

Tactic #9 – Look at other options for purchasing this item at a lower price

If you’ve managed to go through all of this and are still unsure, the last thing you should do is make sure that the price you’re considering paying for that item is a fair price. Spend at least a little time comparing it to online prices.

I generally am willing to pay a little more at a brick and mortar location rather than an online one because I can assess that the product is in good shape right in front of me and I know the store’s return policy. I’m willing to pay a bit more than that at a locally owned business. But that “local” premium only stretches so far – and there is no such “premium” online.

Spend at least a few minutes shopping around for better prices before you shop. Be sure that you’re including any personal factors, like buying locally, into your decision, of course, but make sure you’re not paying $65 for an item you can get online for $20, as I recently almost did, or an item that’s listed on one website for $99 and another for $29, as also happened to me recently.

Final Thoughts

If you find that a potential purchase manages to make it through this whole minefield with confident answers that point you in the direction of the purchase, then it’s most likely a purchase you can make with confidence and without regret.

However, if you’re considering a purchase and one of these tactics is flashing a big “BE CAREFUL!” sign at you, stop. Wait. This purchase you’re thinking about is likely to leave you with regret, and you’re better off spending that money elsewhere.

There’s no reason to rush into any purchase that isn’t an urgent need, and very few things in life truly fall under that umbrella. Exercise a little patience with your purchases. Your wallet will thank you.

The post 9 Tactics for Figuring Out If You Really Need a Tempting Purchase appeared first on The Simple Dollar.

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This Free App Let Me File My Taxes By Just Taking a Picture With My Phone

Sponsorship Disclosure: A huge thanks to H&R Block for working with us to bring you this content. It’s rare that we have the opportunity to share something so awesome and get paid for it!

I’m new to this whole tax thing, and I have to say it’s one of the more daunting adult tasks I’ve had to conquer this year.

But I have a confession: I’ve spent the majority of my time this tax season just staring at the W-2s on my desk. Then, I shove them to the side and continue to procrastinate.

I guess I didn’t realize how easy filing taxes is, nowadays. I can actually file taxes through an app… in about 20 minutes… for free.

Why has my dad been complaining about taxes all these years?

How to File Taxes for Free — By Just Taking a Picture

Yes, I’ve heard of H&R Block, but I didn’t know how affordable and easy the company makes tax filing.

With April 18 approaching all too quickly, I finally forced myself to sit down and read up on the service. For those of us that file in April, you can still prepare and files federal and state taxes for free with H&R Block Free Edition.

That’s me, apparently!

Still slightly reluctant, I poured myself a giant cup of coffee and settled in for the afternoon. Little did I know, this would be over in about 20 minutes.

Here’s how it works:

1. Download the H&R Block app.

Be sure you’re downloading the “H&R Block Tax Prep and File 2016 returns” app. Click “GET,” and it’ll start the download.

2. Open the app, and create an account.

Or sign in if you already have one. Creating an account makes it easy because you can switch over to your computer at any point without losing all your information.

3. Select “Take a Pic” or “Upload your W-2.”

I already had my W-2 printed out. I got it in an email and it felt like the right thing to do.

If yours is printed, go ahead and select “Take a Pic.” It’ll walk you through instructions and tips, such as placing your W-2 on a flat surface with plenty of light and ensuring all four edges are in the photo.

Once you feel ready, allow the app to access your camera, and snap a photo.

It’s exactly like uploading a check to your bank account. It’ll tell you to move closer or hold your phone steady. Then it automatically snaps the picture when it’s ready.

After that, you’ll fill in any other information it asks for. But don’t panic; you can find all of that on your W-2.

If you don’t want to snap a photo, you can upload your W-2 as a PDF. Many employers now email W-2s, so this makes it simple.

4. Answer a few quick questions.

The app then asked me to choose “all that applied in 2016.” These options included:

Owned a home

Had children

Had investments

Owned rental properties

Self employed

Owned a business

Admittedly, I’m young and my taxes are super straightforward. I didn’t select any of the above, which qualified me for H&R Block Free Edition.

If you don’t qualify for H&R Block Free Edition, the app tells you at this point if you’ll have to pay for an upgrade.

The Deluxe edition is the next step up (starting at $54.99), and that’s best for homeowners. The Premium option (starting at $79.99) is best for investors or small business owners.

It all depends on your situation. Either way, they’re all pretty affordable.

5. Answer a few more questions.

I continue to answer questions.

My name is Carson, I’m single, here’s my birthday as well as my social security number.

Throughout the questions, a link at the bottom will let me click for an explanation in case I have any questions.

For example, one asks if I’m legally blind or disabled; I click “How do I know if I qualify?” for more information.

6. Review all your information.

Confirm everything you’ve entered is correct.

7. File that sucker!

In total, the process didn’t take me more than about 20 minutes.

Yes, my taxes are pretty straightforward, but even if yours aren’t, filing them with H&R Block is easy — and free (if not, it’s affordable).

Want to see if you qualify for the H&R Block Free Edition? Start the process here.

And if you’re confused about anything, we’ve gotcha covered with our ultimate tax guide.

Your Turn: What’s your preferred method of filing?

Sponsorship Disclosure: A huge thanks to H&R Block for working with us to bring you this content. It’s rare that we have the opportunity to share something so awesome and get paid for it!

Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder.

Read our 10 most popular stories from March 2017

Gary Adams

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Make sure you're up to date with all the latest news, tips and guides by checking our 10 most popular stories on Moneywise.co.uk in March 2017.

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Millions of Three customers to be hit with 2.6% price hikes

Helen Knapman

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Millions of customers with Three mobile contracts will be hit with price rises of 2.6% from next month.

The move affects pay monthly handset and pay monthly mobile broadband customers who are within their minimum contract term and who joined or renewed with Three after 29 May 2015.

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Just Say No to Co-Signing (Your Credit Will Thank You)

There is no shortage of mistakes you can make when it comes to your credit. Missing your payments, running up large credit card balances, and never checking your reports are just a few you’ll need to avoid if you ever want to achieve the type of credit scores that make qualifying for a loan a breeze.

Yet one of the most dangerous credit mistakes often occurs when you’re just trying to help someone out of a bind.

It might make you feel good inside to agree to help a friend or family member, but co-signing a loan or line of credit is very dangerous for your credit scores. Here’s why.

You Are Liable

Whenever you co-sign for someone else, you’re actually agreeing to take full responsibility for the debt in the event the primary borrower fails to keep up their end of the bargain. In fact, you’re just as responsible for the debt as if it were yours alone. The debt will even show up on your credit reports, for better or worse.

You’re Taking a Risk the Lender Was Unwilling to Take

Lenders and credit card issuers rely on credit scores and credit reports to help them determine whether applicants are an acceptable credit risk. If a lender is requiring a co-signer for your loved one’s loan, then the lender’s research told them that it wasn’t a good risk to lend money to your friend or family member.

In other words, a lender found the odds of your loved one not paying back the loan according to the terms of the agreement uncomfortably high — yet you’re willing to step in on their behalf? Not a great idea.

Late Payments or Default Could Be a Huge Problem

When you co-sign for a loan or credit card, it’s almost certain to find its way onto your credit reports within a few months. Once the account is on your reports, the lender will most likely update the account and its payment history monthly.

If the primary borrower pays late, misses payments altogether, maxes out the card, or goes into default, then you can kiss your good credit scores goodbye. Neither FICO nor VantageScore credit scores discount the impact of harmful credit information simply because you’re the co-signer.

Even Well Managed Accounts Can Still Hurt Your Credit Applications

Sometimes co-signers get lucky and their loved ones manage their accounts well. However, even if your loved one makes every payment on time and pays off the balance in full every month (in the case of a credit card), the simple presence of the account on your credit reports could still potentially cause you problems, even if it’s in good standing.

There mere act of applying for the account (the inquiry) and the new account’s appearance on your credit reports (which lowers the average age of your accounts) might have a negative impact on your credit scores. Additionally, whenever you apply for future loans, the debt will be counted against your debt-to-income ratio (DTI) — which could cause you to qualify for a lower loan amount than you would have had you not co-signed for someone else’s debt.

When Problems Arise

If the primary borrower misses payments or does something else problematic with the account, you do have a few options:

You can try to convince your loved one to refinance the loan into his or her name only, which is a long shot since they couldn’t qualify for the account on their own when it was originally opened.
You can ask them to sell the property or car if it’s a secured installment loan. That will dispose of the loan and end your relationship with it.
And finally, if it’s a credit card, you can ask that it be closed. At least that way no new debt can be incurred on the account.

Or, you can just say no if anyone ever asks you to co-sign, and you’ll never have to deal with the mess.

Related Articles:

John Ulzheimer is an expert on credit reporting, credit scoring, and identity theft. He has written four books on the topic and has been interviewed and quoted thousands of times over the past 10 years. With time spent at Equifax and FICO, Ulzheimer is the only credit expert who actually comes from the credit industry. He has been an expert witness in over 230 credit related lawsuits and has been qualified to testify in both federal and state courts on the topic of consumer credit.

The post Just Say No to Co-Signing (Your Credit Will Thank You) appeared first on The Simple Dollar.

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How to Start an Online Retail Business With a Tiny Budget

By Ashlee Anderson It costs a lot to start a physical storefront. Between monthly rent, utilities, inventory, and employees for extra help, even a small shop can cost more than $30,000 to launch. These steep startup costs for a brick-and-mortar business don’t make financial sense for everyone. Just because you may not be able to […]

The post How to Start an Online Retail Business With a Tiny Budget appeared first on The Work at Home Woman.

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Majority of Moneywise users have monthly TV subscriptions: but could you save by switching?

Helen Knapman

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The majority (43%) of Moneywise.co.uk users have a monthly TV subscription with the likes of BT, Sky, TalkTalk or Virgin Media, according to our latest poll results.

But do you make the most of your subscription service by watching channels or programmes you couldn’t watch on free television services? If not, you’re likely to be wasting hundreds each year.

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Retirees' life expectancy starts to fall

Rachel Lacey

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Life expectancy for people retiring now has started to fall, according to the latest research from the Institute and Faculty of Actuaries.

A 65-year old male can now expect to live a further 22.2 years, down from 22.8 in 2014. Meanwhile women of the same age are likely to live another 24.1 years down from 24.9 over the same period.

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'Protecting' children from money issues can have negative impact on finances in adulthood

Adam Williams

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Parents should start teaching their children about money issues from as young as age four, or risk having a negative impact on their finances in adult life, according to new findings.

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