How to Understand Bank Statements

As our society and economy continue to go paperless, the idea of reviewing and being able to understand bank statements may seem like a throwback to a different time in history. But even though the technology has changed dramatically, bank statements still provide an important service. It gives you the ability to check your activity against a written record.

But to do that effectively, you’ll need to know how to understand bank statements. Like balancing checkbooks and preparing home-cooked meals, understanding bank statements is in very real danger of becoming a lost art.

If that describes you, please rethink the idea.

Quick Navigation:

• Should You Review Your Bank Statements?
• How To Understand Bank Statements
• 5 Reasons To Review Your Bank Statement Regularly
• Benefits of Understanding Your Bank Statement

Should You Review Your Bank Statements?

In these days of online and mobile banking, most consumers rely either on transaction alerts from the bank or simply checking the balance on a daily basis. If either or both check out, that’s where the scrutiny stops. But that’s also how you can get burned!

There are a few reasons why you need to thoroughly review your bank statements at regular intervals:

• You may have made an error, like overpaying a bill.
• Though it’s highly unlikely, your bank might make an error.
• There may be an unauthorized withdrawal or transaction in your account.

The ultimate reality of bank statement errors is that time is not on your side. The sooner you discover and report an error, the more easily it can be remedied. But if you wait too long, the process may become much more complicated. And in some circumstances, you may not be able to fix a problem that sits too long.

One example is an unauthorized charge on your debit card. Check your bank’s policy on how they handle those situations. You’ll have a certain amount of time to report the loss, otherwise you may be on the hook for some or all of the charge.

The Special Problems with Lost or Stolen Bank Cards

A lost ATM card is an even bigger problem. It’ll be even more so if you use the card infrequently, perhaps because you’re busy taking advantage of the rewards on your credit cards.

There are certain time limits within which you must report the loss of your debit card to minimize or eliminate your liability. Those limits are generally as follows:

• Before any unauthorized charges are made: $0.
• Within two business days after you learn about the loss or theft: $50.
• More than two business days after you learn about the loss or theft, but less than 60 calendar days after your statement is sent to you: $500.
• More than 60 calendar days after your statement is sent to you: sorry, you’re on the hook for the total amount lost, even extending to connected bank accounts.

Regularly reviewing your bank statements will enable you to stay on top of any of those developments.

How to Understand Bank Statements

Now that you know why you need to review bank statements, let’s get into the specifics of how it’s done. If you don’t review your statements on a regular basis, you may not be aware of all the detail that’s included. Since bank statements are typically issued on a monthly basis, they should be reviewed as quickly as possible after they’re issued.

Bank statements include the following information:

• Beginning balance. This is an unadjusted balance. It doesn’t reflect deposits, checks, and other payments that have not yet cleared the bank. You should do a bank reconciliation to confirm the differences between the opening balance and your actual adjusted balance.
• Deposits. These can include payroll deposits, check deposits, transfers from other accounts with the same bank or from another financial institution, or electronic transfers from third-party sources.
• Checks paid. Checks are becoming increasingly rare, but only cleared checks will appear on your bank statement.
• Electronic payments and automatic debits. These are payments to third parties, which you may set up to occur regularly, or you may initiate on a one-time basis.
• ATM card activity. This can include purchases and payments made using your ATM card, or cash withdrawals.
• In-person activity. This can include both deposits and withdrawals of cash at the bank’s teller window.
• Bank fees. The most typical is a monthly service fee, but there may be other fees, like activity fees, or ATM related fees. There may also be penalty fees, like non-sufficient funds, overdrawn account, for a dishonored check.
• Running balance. The statement will typically reflect the balance after each transaction, whether funds have been added or subtracted.
• Ending balance. This balance will also be unadjusted. It won’t reflect checks, deposits, or other transactions that have not yet cleared your account

5 Reasons To Review Your Bank Statement 

Maintaining an accurate bank account balance is only the most basic reason to review your bank statement, so let’s start with that and go from there:

Reconciling Your Bank Balance

Twice in the previous section, I mentioned that your bank balances are unadjusted – both the beginning and ending balances. The point of reconciling your account is to make sure both are accurate.

If you’ve never reconciled your bank statement in the past, start with the ending balance. You’ll add any deposits to the balance that have not yet cleared your account as of the closing date of the bank statement. You’ll then deduct any checks or other payments that have not cleared the account as of the same date. That will give you your actual balance, which is usually different from the bank’s ending balance.

Be sure to adjust your balance for interest paid on your account, if it’s an interest-bearing account, as well as overdraft activity for either a checking or savings account.

If you can’t successfully reconcile the balance, it may have something to do with the opening balance. If that’s the case, you’ll need to go back and reconcile the ending balance from your previous monthly statement, which is the opening balance on your current statement.

In most cases, problems with reconciling your bank balance will have something to do with your own personal bookkeeping practices. You may fail to record or remember certain transactions, which makes it difficult to reconcile.

Unauthorized Charges & Potential Identity Theft

We’ve already covered this a bit in the previous section, but is worth going into in more detail.

If you notice one or more charges on your account that look suspicious, you’ll need to investigate. Check through your own records and see if you have any documentation related to the deduction. If you don’t, call the bank to get clarification.

If the bank confirms it’s a suspicious transaction, you’ll need to report it as an unauthorized charge. The situation will be resolved based on the bank’s policy, including the timing of the reporting.

More importantly, if you identify two or more unauthorized charges, your account may have been stolen. If that’s the case, you’ll need to have your account closed, or have your ATM card replaced, if that was the source of the unauthorized activity.

Checking For Accuracy & Errors

We’ve just discussed the importance of reporting unauthorized activity and errors to your bank promptly. But this can also apply to outside parties.

Let’s say you accepted a check from someone in payment for a service or an item sold to them. When you got the check, you didn’t bother to look at it. You just put it in your pocket, and deposited it when you got to the bank.

Maybe you were expecting the check to be for $110, but a review of your bank statement reveals that it cleared for $100. You’re $10 short on the payment.

You’ll have an opportunity to request a copy of the check from the bank, or sometimes you can access it directly from the online banking platform. If it shows that the check was made for $110, but only cleared for $100, it’s a bank error, and they’ll need to make good on it.

But if it turns out the check was only written for $100, you’ll need to go back to the issuer to collect the remaining $10. The sooner you do that, the more successful you’re likely to be.

The same thing can happen on the payment side. You make a charge on your ATM card for $50, but it clears your bank at $55. If you have a receipt that shows it was only $50, the $5 difference is a bank error, or a reporting error by the merchant. But if the receipt shows $55, it’s your error. Either way, you’re better off knowing so you can correct the charge or your own bank balance accordingly.

Getting An Accurate Picture Of Your Income & Spending

If you have some sort of formal budget in place, this step may not be necessary with your bank statement. But if you’re like most people, and you don’t have a budget, your bank statement may be the closest you get to tracking your income and expenses.

For most people, most or all their income ultimately ends up passing through their bank accounts. That being the case, your bank statement will be the best confirmation of your incoming cash flow.

Most people know how much they’re paid on an annual basis. It’s easy because it’s usually some sort of a flat number, like $45,000. But from a budget standpoint, that number is practically irrelevant. Because of deductions for income taxes, health insurance, and retirement plan contributions, your net income figure will be much lower. Only by reviewing your bank statement on a regular basis will you know the actual net income you’re receiving each month. That will also tell you how much money you have to live on each month.

Let’s flip over to the expense side. One way or another, most of your expenses are likely running through your checking account. That includes not only direct payments through electronic transfers, checks or your ATM card, but also monthly payments toward credit cards.

By adding up your income and expenses each month, you’ll have a rough budget. At a minimum, it will let you know if your income is being outstripped by your expenses. Then you can make changes in your spending habits to get back in balance.

Keeping a Paper Trail

Even in the online, electronic world we live in, it’s often necessary to be able to document financial transactions. As any accountant will tell you, the most basic form of financial documentation are your bank statements. Since they represent what is typically the primary source of transactions in your life, each statement provides an important track record of financial activity.

You may need that information in the future to prepare your income taxes, or even to dispute a bill after the fact.

That makes a strong case for maintaining some sort of system of retaining your statements for a sufficient amount of time. Whether you do that by saving your statements to your computer, or by printing and saving paper copies isn’t what’s important. What matters is that you’ll have the most fundamental element of your paper trail available when it’s needed.

Don’t count on your bank retaining your statements forever – they don’t. Most banks put a limit on how far back they’ll retain your statements. Three years is a common limit. If a situation, particularly a tax-related one, comes up from more than three years ago, you’ll be in trouble if you haven’t kept a copy of your older statements.

When you save your statements – and you should – just make sure you’re doing it safely. If you’re saving them to your computer, they should be held in an encrypted file. If you’re keeping paper copies, they should be held under lock and key. Just as your bank statements provide you with a wealth of information, they can do the same for a thief.

Benefits of Understanding Bank Statements

Now that you understand bank statements, and the need to review them on a regular basis, be sure to do it consistently. If you haven’t been in the habit of reviewing your bank statements on a regular basis, skipping a month or two could easily lead you back to not doing it at all. But if you make it a regular practice, not only will you do it automatically, but it’ll put you in a better position to understand what’s happening in your bank account, as well as with your finances in general.

And if you have more than one bank account, you should review them all regularly as well. That includes savings accounts. At a minimum, you’ll want to regularly monitor deposits and withdrawals from those accounts. Even if an account is low activity, you’ll still want to review it regularly to look for fraudulent or unauthorized activity.

Online and mobile banking certainly make the practice of banking easier than it’s ever been. But neither has changed the fundamental reality that you have a responsibility to yourself to know what’s going on in your bank accounts at all times. That will only happen if you understand bank statements and review them on a regular basis.

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17 Best Online Jobs for Teens

If you’re a teenager and you need to make money, getting a part-time job is the usual path. Unfortunately, it’s not a perfect strategy. You’ll need to balance your life between school, the part-time job, extracurricular activities, and your social life. And with the part-time job, there’s also the very real possibility the job will cause conflicts and problems with the other three activities.

If you need to make money, and you don’t want the problems that come with a part-time job, consider online jobs for teens. You’ll be able to work from home, and many will allow you an opportunity to set your own hours and determine your own income.

But with that said, I have to warn you that most online jobs are not “jobs” in the traditional sense. They don’t usually come with a flat hourly salary, a fixed schedule, or even direct supervision to show you how to do the job.

More typically, they float somewhere between a traditional job and self-employment. But that may not be a bad thing either. One day your future self may want to become self-employed, and your experience with online jobs for teens will have helped prepare you for exactly that.

What Are The Best Online Jobs for Teens?

How many online jobs for teens are there? I’ve got them grouped into categories, mainly because each group is so different. Online jobs for teens are a true mixed bag of opportunities. You can decide which category will work for you.

• Best Online Jobs For Teens
• Best Survey Sites For Teens
• Best Online Gigs For Teens
• Best Micro-Job Opportunities for Teens
• Best Freelancing Jobs For Teens

We’re specifically excluding online reward sites because they usually “pay you” in points for gifts. We’ll assume you’re looking for actual cash in your pocket. That’s the most common reason anybody gets a job at all.

Best Online Jobs for Teens

I’d love to tell you there’s a lot of opportunity to find actual online jobs for teens, but that would be a gross exaggeration. Very few online sources will hire you for anything that looks close to a traditional job. That’s partially because you’re underage, but also because the employer would have no direct supervision. But there are a couple of sources that do offer actual online jobs for teens.

1. FlexJobs

FlexJobs isn’t an employer, but an online site that matches job hunters with jobs. To actively apply for jobs on the site you’ll need to become a subscriber. That will cost $14.99 per month. But it will give you access to thousands of online jobs with more than 4,700 employers.

Now to be completely honest, most of the jobs listed are better suited to adults, because they require hands-on work experience. But there are a few available for teens. FlexJobs is best used if you prefer the online equivalent of a traditional job. It can be part-time or seasonal, but the platform will enable you to search for situations as needed.

2. U-Haul

There persistent rumors that U-Haul will hire teens as young as 16 for work at home jobs. The jobs are offered under the U-Haul Sales and Reservations Work from Home Program.

There are only about 600 jobs available covering the US and Canada, and you’ll need specialized equipment. For example, you’ll need a dedicated workspace, a personal computer, a high-speed Internet connection, and a USB headset. The job will also require you to work a specific schedule, and your work will be closely monitored by management.

Since there are relatively few jobs in the program – and likely a lot of competition for them – landing a position is far from guaranteed. But if you’re looking for a traditional job with work-at-home benefits, it’s certainly worth trying.

Best Surveys Sites for Teens

You have to be a bit careful here because some online surveys pay cash, but many pay rewards. If you’re happy earning rewards, fine. But if you’re looking for actual cash, you’ll have to be very selective with which platforms you participate.

3. Survey Junkie

Survey Junkie is probably the best-known source in the online survey space. You’ll participate in surveys sponsored by businesses, mainly centering on products and services. For your efforts, you’ll earn points you can exchange for cash or gift cards or through PayPal.

As is the case with most online survey opportunities, you won’t make a fortune. But you will earn some extra spending money just for answering questions. No specific expertise is required.

4. Nielsen Computer and Mobile Panel

Nielsen Computer and Mobile Panel won’t make you a fortune, or anything close to it. But just for installing the app on your mobile device, you can earn up to $50 per year. The company is looking to collect data on web surfing and browser activity and preferences.

It’s not much money, but you’ll get it just for doing what you normally do. That’s as easy as it gets.

5. Harris Poll

Harris Poll is one of those sites where you won’t be paid cash, but gift cards and rewards for merchants like Amazon.com, Starbucks, and iTunes. You’ll participate in surveys that will be used to help companies and government agencies develop policies and strategies.

Best Online Gig Work for Teens

Exactly what you’ll do here will depend on your age, where you live, and the time you have available. You’re probably already familiar with the whole concept of gig work, mainly from rides hare services, but there are a lot more opportunities in this area.

These aren’t specifically jobs you perform online of course. But you’ll connect online, or more particularly, through your mobile device, and you’ll be able to work on your own schedule.

But let’s start with rideshare services.

6 & 7. Uber and Lyft

Uber and Lyft are practically synonymous with gig work. If you’re of legal driving age in your state and have at least one year of driving experience, you can qualify to participate.

If you’re not comfortable driving people around, you can also deliver goods. For example, with Uber Eats you can do meal deliveries.

Just be aware that the car you have will be a factor. It has to meet certain minimum standards to be eligible. You’ll also need a good driving record and have personal car insurance.

8. DoorDash

If food delivery interests you, you can also drive for a dedicated service, like DoorDash. The requirements will be similar to those for Uber and Lyft, but you’ll be focused entirely on food delivery.

Another upshot here is that you may be able to deliver using a bicycle. That may qualify you even if you don’t have a car, but you’ll need to live in a heavily populated area for this option.

Gig work is a broad category that frequently includes subcategories like micro jobs. Rather than lumping those in with gig work, I’m giving it its own special section on this list.

Best Micro Jobs for Teens

With micro jobs, you might be hired to do a single task. That may include a delivery or completing a specific project. You’ll get paid on a per completion basis, which may only be a few dollars. But the idea is to complete several micro jobs per day. That can easily add up to be a bigger weekly paycheck than you’ll earn from a part-time job. What’s more, the tasks are usually done on a flexible basis. Much like rides sharing, you’ll take on tasks as your schedule permits.

There are various platforms where you can find micro jobs. Many tasks will require you to be at least 18, but that’s still a teenager. And if you make yourself open to multiple tasks, you may be able to find a few even if you’re not 18 yet.

Also be aware that many of these tasks will not be completed online. You’ll find them online, or through a smartphone app, but many will need to be done in person.

9. FIVERR

FIVERR is an online site that connects businesses and individuals with people who will perform tasks for a fee. There’s a big clue to the compensation in the name “FIVERR” – many of the tasks pay $5 each. For that reason, you’ll need to plan on doing several tasks each day.

Most of the tasks will be done online. That includes proofreading a single document, providing graphic design, and even higher-level services, like graphic arts or web work.

10. Amazon Mechanical Turk

Amazon Mechanical Turk, or M Turk for short, is another platform that will provide mainly online tasks. Those can include doing research, proofreading documents, monitoring an online forum, and much more.

11. Task Rabbit

Task Rabbit is a bit different from the other micro job sites in that you’re generally required to perform the tasks in-person. That can include cleaning houses, doing odd jobs, or making deliveries. If you prefer doing more basic work, Task Rabbit will be an excellent source.

Best Freelancing Jobs for Teens

Do you remember at the very beginning when I said that online jobs for teens often float somewhere between traditional jobs and self-employment? I saved this category for last because it’s more about self-employment than it is about anything close to a traditional job.

But if you have the motivation, one or more of these will be well worth trying. Not only will it be an opportunity to earn money working from home and on your own terms, but it also holds the potential to build a business you can work right into your adult life. And even if it doesn’t to that far, the experience you’ll gain will help you in just about any future career you’re planning to enter.

Just remember these don’t look like jobs because they’re not. That may take some getting used to, but if you can, the rewards can literally be unlimited.

12. Start Your Own Blog

You’ve probably already visited more than a few blogs in your life, and even wondered about starting your own. And you can! Even as a teenager, you can start a blog about any topic you’re knowledgeable in, and eventually earn money doing it.

But just be aware that starting a blog is self-employment in the truest sense. You’ll need to invest some money up front, though not a whole lot. It’s now possible to get a blog up and running for under $200. You can purchase a low-cost domain name and web hosting through Godaddy. One of the big advantages they offer is plenty of customer support for new site owners. You’ll need that as a newbie.

You can also get a free blogging theme through a popular blogging app called WordPress. There you can select from a large number of blog designs, and even customize them. It’s an extremely user-friendly app, and you can upgrade as your blog grows.

Just be aware that it will take several months or even a year or more before you start making money with your blog. You’ll need to be willing to put the money and time in, especially creating content. That can be either articles, podcasts, or videos, or a combination of two or all three.

13. Freelance Writing

In our discussion of blogging, I emphasized the need to create content for your blog on a regular basis. But if you have no intention of starting a blog, you can still write articles for other blogs and earn money as you do.

You’ll need to pick one or more topics where you have both interest and expertise. Read as many articles on that topic as you can to get a feel for both the specific article ideas as well st the general structure of the articles. You may need to write a few articles for a few sites for free just to get published. But once you do, you can use those freebies to build a writing resume to market for paying gigs.

You can find out more about freelance writing on the web by reading How to Become a Freelance Writer by Holly Johnson, here on Good Financial Cents.

14. Freelance Proofreader

We just covered blogging and freelance writing for blogs. But if you don’t want to do either of those you can always become a freelance proofreader – are you noticing the progression here? Most everything that goes on the web has to be proofread, and you can earn money being one of the people who do it.

Naturally, you’ll need to be skilled in proper grammar and sentence structure (now don’t you wish you paid more attention in English class?). But you can get some help in this area with the spellcheck functions available with both Word and Google Docs. But if you want to take your proofreading to a higher level you can always cheat and use an online app like Grammarly!

To find proofreading gigs, you can email blogs and offer your services. But you can also try using online sources. One example is Upwork. They specifically offer freelance assignments in proofreading and related functions.

15. Become a Virtual Assistant

If you have any specific skills, like proofreading, social media management or marketing, web design, customer service, or any one of dozens more, you may be able to offer your services as a virtual assistant to either individuals or small businesses. It could be working on a single project, or working on an ongoing basis. You can even work for several clients at the same time. In each case, you’ll be doing work for someone who has one or more projects they either don’t have time or expertise to do.

You can find work as a virtual assistant on sites like Indeed.com or Craigslist, or you can take advantage of sites that specialize in the category, like Remote.co

16. Social Media Influencer

As a teenager you’re not too young to have a big social media following. What’s more, you may be more social media savvy than most adults. If you are, you may be able to convert that into a regular paycheck.

One way is to become a social media manager for a business. These days, nearly every business is striving to create and expand their social media presence. If you have a knack for creating viral social media content, you can offer your services as the social media manager for a business. Some just need a person to manage social media inquiries, because there’s no one inside the business who has the time or the expertise.

If you have a very large social media following, you may even be able to become a social media influencer. That’s where you review and endorse products and services for which you’ll be paid by the provider for your influence. It’s a bit of a blank canvas, but if you have a strong social media presence it can be a real opportunity.

17. Selling on Major Websites

Think sites like Amazon and eBay. Right now, hundreds of thousands of people are doing this, many on a part-time basis.

If you have a special interest in a specific product or service line, you may be able to develop a sales niche. Or you can buy unique items at garage sales and thrift stores in your area and sell them at a profit.

Teens Can Earn Money Online

If you need to earn money, and you don’t want the hassles that come with a part-time job, take a close look at online jobs for teens.

You’ll have to seriously expand your idea of what a job is. But the payoff will be the potential for unlimited earnings working on your own terms.

And if you’re good at what you do, you may even be building your future career.

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Check Your Eligibility in These Class-Action Settlements from Whirlpool, Wells Fargo

Unwanted text messages, leaky refrigerators, fake discounts and more top the list of the latest major class-action settlements. 

Hyundai Sonata ‘Smart Trunk’

Carmaker Hyundai has agreed to settle allegations that the “Smart Trunk” feature in Sonata sedans are defective.

Instead of opening fully after the consumer presses the key fob for three seconds, the lawsuit alleged the trunk only opened a few inches. The consumer would have to manually push open the trunk lid, negating the perk of having a “hands-free” Smart Trunk as it was advertised.

The settlement affects consumers who own or lease or previously owned or leased a 2015 to 2017 Hyundai Sonata that included the Smart Trunk feature.

Four different types of compensation are available, from $50 cash payments to warranty extensions. Click here for details and to file a claim by the Jan. 3, 2020 deadline.

Rack Room Shoes Text Messages 

If you’re enrolled in the Rack Room Rewards Program or Off Broadway Reward Program through Rack Room Shoes, you could be eligible to share a portion of a $26 million settlement.

A class-action lawsuit alleged Rack Room violated the Telephone Consumer Protection Act by sending text messages to rewards club members without their permission.

If you were a member of either rewards program and received a text message on or after April 2, 2014, you could be eligible for a $10 voucher plus $5 in cash.

Payment amounts may be subject to change based on the number of claims filed and the net settlement funds available after administration costs, court costs, attorneys’ fees and service awards are deducted.

Click here to file a claim by the Jan. 31, 2020 deadline.

 

Wells Fargo Robocalls, Texts

Are you NOT a customer of Wells Fargo, but received automated phone calls or texts from the bank anyway? If so, you could be eligible for part of an $18 million settlement.

Wells Fargo allegedly violated the TCPA by contacting people who were not bank customers regarding auto loans, credit card accounts, student loans, mortgages and overdrafts.

The actual cash award each consumer receives will depend on the number of valid claims filed. Consumers qualify for the class action settlement if they were called between certain dates regarding particular Wells Fargo services.

For more information and to submit a claim by the Dec. 23, 2019 deadline, click here.

GNC Sale That Wasn’t

GNC has agreed to pay a $6 million settlement over allegations that it tricked consumers into believing supplements were being sold at a discounted price.

The settlement resolves three class-action lawsuits that claimed a promotion on GNC.com portrayed products on sale even though the products never were sold at a higher “original” price.

Consumers who purchased an item on sale or through a promotion from GNC.com between Jan. 1, 2012 and Sept. 9, 2019 are eligible to receive $5 cash or a $15 voucher toward a future purchase, plus a coupon for $30 off any $100 purchase.

Click here and file your claim by the Dec. 19, 2019 deadline.

TD Bank Overdraft Fees

A $70 million settlement will compensate TD Bank account holders who allegedly were victims of deceptive overdraft fee policies.

The case claimed TD Bank optimized overdraft fees charging them in numerous circumstances, including when there was money in customers’ accounts.

Potential awards vary. Click here and file a claim by the Feb. 7, 2020 deadline.

Premera Blue Cross Data Breach

Premera Blue Cross has agreed to a $74 million settlement after their computer systems were hacked on March 17, 2015, exposing the private information of millions of consumers.

Data included “names, dates of birth, mailing addresses, telephone numbers, email addresses, Social Security numbers, member identification numbers, medical claims information, financial information, and other protected health information,” according to the suit.

Premera will pay $32 million to consumers who can obtain free credit monitoring services and a $50 default payment. California consumers are entitled to an additional $50.

Alternatively, consumers can claim free credit monitoring and actual out-of-pocket losses of up to $10,000.

Consumers also may be able to claim up to 20 hours of time spent dealing with security incident at $20 per hour.

The company also agreed to spend $42 million to improve its cybersecurity.

For more information click here and file a claim by March 30, 2020. 

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Plantronics Wireless Headphones

If your Plantronics BackBeat FIT wireless headphones don’t hold a charge for eight hours or aren’t water- and sweat-proof as advertised, you could be eligible for up to $100.

Plantronics BackBeat FIT wireless headphones, version Genesis or 16M, that were manufactured between April 1, 2014 and Oct. 31, 2018 allegedly did not hold up to the advertising claims and fail to hold a charge because of a battery defect. In addition, the lawsuit claims that exposure to water makes the problem worse.

Anyone who purchased headphones covered by the settlement starting Jan. 1, 2018 can claim an extended limited warranty. Those who purchased the headphones between April 1, 2014 and Jan. 1, 2018 can claim a $25 payment with proof of purchase. Those who purchased headphones during that time period and also made a complaint about the product can make a $50 claim (limit of two headphones per claimant).

Each claim requires proof of purchase. For more information click here.

Cancer Medication Price-Fixing

Celgene Corporation has agreed to a $55 million class action settlement regarding allegations the pharmaceutical company conspired to keep less expensive, generic versions of cancer drugs Thalomid and Revlimid off the market.

Class members include individuals, insurance providers, and other health and welfare companies who “paid for all or some of the purchase price of Thalomid or Revlimid in California, the District of Columbia, Florida, Kansas, Maine, Massachusetts, Michigan, Nebraska, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, or Tennessee any time before August 1, 2019.”

For complete details and to submit a claim by the Dec. 30, 2019 deadline, click here.

Leaky Whirlpool Refrigerators

If you own a Whirlpool refrigerator under the brand names Whirlpool, Amana, Jenn-Air or Kitchen-Aid, you could be eligible for a portion of a $21 million lawsuit stemming from complaints that ice could build up and cause water to leak from the bottom of the refrigerators.

A full list of eligible models splits the models into two groups: Group A and Group B. The groups have different eligibility requirements.

Owners may be eligible for up to $150 in compensation, based on the following reimbursement rules:

• 100% reimbursement for parts and labor costs for qualifying repairs paid for in years one to three after purchase;
• 100% reimbursement for parts and 65% reimbursement of labor costs for qualifying repairs paid for in year four after purchase;
• 100% reimbursement for parts and 50% reimbursement of labor costs for qualifying repairs paid for in year five after purchase.

The deadline to submit a claim for a freezing event that occurred prior to Sept. 5, 2019 is Jan. 22, 2020. Those with refrigerator models in Group A have until Dec. 31, 2021 to submit a claim regarding a future freezing event, while those with refrigerator models in Group B have until Dec. 31, 2026 to send in a claim for future freezing events.

For more information, click here.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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Don’t Make Things More Complicated Than Necessary

There is a tendency on personal finance websites, in personal finance books and personal finance magazines, to get into great detail about the specifics of various personal finance decisions and strategies. You’ll find long articles about specific tax loopholes (like “backdoor Roths” and so on). You’ll find long calculations that seem to indicate that one move is strictly better than another one. You’ll find lots and lots of arcane writing about taxes.

For someone who just wants to achieve some level of financial security in life, it can be simply overwhelming. Even something as simple as putting money in a savings account can turn into pages and pages of details and information that can cause most people’s eyes to glaze over.

If that sounds like you, my advice is really straightforward: don’t sweat all the details and just keep things super simple. Most of that advice isn’t particularly useful anyway.

Let me get into why I say that.

For starters, what matters more than anything for long term financial success is that you’re consistently spending a lot less than you earn. What you actually do with it is pretty secondary. You have far more positive impact on your future, especially at first, by simply spending less or getting a raise at work and then doing something – anything – worthwhile with that money.

Let me be absolutely clear: compared to the simple decision to spend less and to put more money aside for the future, the difference between paying off a debt or putting the money in savings or investing it is trivial in terms of the long term impact on your life, especially when you don’t have a whole lot of money to your name.

Now, when you have achieved some wealth, there ends up being a bigger and bigger difference between those options, but when you’re first trying to turn things around or when you’re dealing with a small income or a small amount of savings, you have far more impact in simply making good daily choices than you do in sweating about investment decisions.

Furthermore, the choice of the “right” investment decision is almost always based on predictions about the future. If you predict that the US economy is going to keep growing like gangbusters for the next decade, one choice is the best, but if you predict we’re heading into a recession, another choice is best. The truth? No one knows for sure.

Instead, stick to the things you do know for sure.

Having money in the bank is good, and the more, the better. Money in the bank means that you have a cushion against unexpected events in your life. That’s a net positive. Yes, there are specialized accounts for specific purposes – a Roth IRA and a 401(k) for retirement, a 529 for college savings, and so on – but the most important thing isn’t the account type, but the money you’re able to put in there, particularly at first. If you’re not sure, stick to a more general and flexible account type, like an ordinary savings account at a bank, and then figure out the different options at your own pace. What matters is that you’re putting money aside; getting it in the right account is important, but it can wait.

Having less debt is good. There are almost no situations in which an individual paying off debt isn’t a good move. Again, one can make arguments about which debt should be paid off first in the perfectly optimal way, or whether you’re better off investing or paying off a low interest debt, but it is essentially never a bad move to pay off debt. If you have enough money in the bank to handle something like your car breaking down, then paying off debt is almost always a really good choice. If you want a really simple rule to follow to decide which one to pay off first with extra payments, just choose the one with the highest interest rate and pay it off first. Again, that’s a simple rule that will almost never guide you wrong.

Struggling to pay your bills is bad; failing to pay them is even worse. It seems obvious, but in reality, almost 80% of Americans live paycheck to paycheck, meaning they’re right on the verge of beginning to struggle to pay their bills. Failing to pay bills damages your credit, meaning it kills other opportunities down the road. Furthermore, you often have to end up paying them anyway with additional interest owed.

Don’t hamstring yourself with big bills that will be difficult to pay. Don’t take out a loan to get the expensive car. Drive cars into the ground and then replace them with a used car that you can ideally pay cash for. Live in inexpensive housing, less expensive than what you could afford if you squeezed out every dime. Don’t get a huge unlimited cellular plan, especially when you’re not really using it that much – cut it back to the minimum. None of this is complicated. Just make choices that result in small monthly bills so that you have money to put aside.

The less you spend on foolish things each month, the easier it is to pay the bills, pay down your debts, not accumulate more debts, and put some money in the bank. Stop spending so much money on vices, hobbies, and entertainment. Find free things or cheap things to do to entertain yourself and fill your time. One big way to save money is to start making inexpensive meals at home – make a sandwich at home instead of eating at a fast food restaurant. Buy everything in store brand form. Those kinds of moves won’t change everything, but they can definitely help move the needle.

The vast, vast majority of people don’t even handle these basics very well. The biggest part of the reason that people struggle to get ahead financially is that they overspend, and when you lock yourself into more bills than you can easily pay, everything gets hard. It gets even harder when you spend a lot of money on foolish stuff.

It is very easy for personal finance websites and books and magazines to walk away from these basics and get lost in the nuance of Roth IRAs and 401(k)s and so on when the reality is that for most Americans and most people in the Western world, the real issue is that they don’t have the basics down pat. Worrying about what account to use when you have a bunch of debts, very little in the bank, and are struggling to keep your bills paid is like putting the cart before the horse.

Keep it simple. Cut back on your spending, starting with your big bills like housing and your car and insurance. Keep an eye on your foolish spending, too; look through old credit card statements and see where you’re spending money that you completely forget about, as that’s forgettable and utterly wasteful. Start by putting some money in savings just to create an emergency cushion; move on from there to making sure that you’re caught up on your bills and then start eliminating your debts. Make all of that consistent – this needs to be your life going forward, and it can be quite a lot of fun and pretty low stress.

It’s only at that point, when you’re able to consistently spend less than you earn and you’ve got your bills under control and you’re wiping out debt and you’ve got some money in the bank for emergencies and now you’re wondering what’s next, that you should start worrying about the next steps of investing. Amazingly, the vast majority of Americans aren’t at that point yet.

Focus on the basics. Don’t worry about those other details, at least not until you have these basics completely under control with your actions. Don’t make things more complicated then that.

Keep it simple. Spend less than you earn. Do something smart with what’s left.

Good luck!

The post Don’t Make Things More Complicated Than Necessary appeared first on The Simple Dollar.

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Dear Penny: A Heart Attack Put Me in Debt and Now I Can’t Get Out

If someone you love approached you with a similar story, would you react with judgment? Or with support and a genuine desire to help, even if it couldn’t be in the form of money? I suspect the latter.

Opening up to even one person you trust could provide you with the emotional support you need and deserve. 

But the benefit is twofold: When you can’t afford your bills, the only way out is to talk honestly with your creditors. 

Having that conversation with a bill collector is intimidating. Explaining the situation to a loved one first prepares you for the tougher talks ahead. If that’s too scary, consider attending a Debtors Anonymous meeting.

When you’re deep in debt, you need to look at each bill and ask yourself, “What’s the worst-case scenario if I don’t pay this?”

For your rent or mortgage and utility payments, the stakes are high, so these are top priorities. Same goes for your car loan if your vehicle is the only way you can get to work, but less so if you can take public transportation.

But medical and credit card bills? If you don’t pay them, they’ll go to collections. Your credit score will take a major hit. They could garnish your wages, but you can appeal that.

These are the worst-case scenarios, though. It’s way more likely that they’ll negotiate with you if you call and tell them you can’t afford payments.

If you still have medical bills, start there because medical debt is among the most negotiable debt out there. Hospital billing departments and doctors offices are often willing to work out payment plans.

Credit card companies often have hardship programs that will waive late fees and even let you defer payments under some circumstances, like a job loss or illness, though you probably won’t be able to use the accounts while you’re not making payments. Some auto lenders have similar programs.

Use any reprieve you’re given to get your car safely running if you truly need it. But let your mechanic know that you can’t afford $1,300 and new tires right now. Maybe some repairs are urgent, while others can wait a few months.

You might also consider credit counseling, which will give you a better sense of options for your specific situation. 

What I want most for you, though, is for you to get past your shame. 

You got here because you had a heart attack and couldn’t work for five months. Both of these things were beyond your control. The $400 you lost is minuscule in the bigger picture. Treat it as a one-time lapse in judgment that occurred under extreme stress — then forgive yourself.

The thing I want you to remember is that you are so much more than your debt. You just survived a health crisis, and you will survive this, too.

Robin Hartill is a senior editor at The Penny Hoarder and the voice behind Dear Penny. Send your questions about debt to AskPenny@thepennyhoarder.com.

 

 

 

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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How to Start Saving for Retirement on Any Budget

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For a lot of us, retirement is a best-case scenario. Let’s face it, you won’t be able to work forever, and hopefully you’ll keep living long after your last workday.

But what will that really look like? Can you afford that? If you’re like most Americans, you suspect you’re not saving enough for retirement.

No matter how much — or how little — you make, it’s never too late to boost your savings. But you shouldn’t put it off any longer. 

Here are six steps you can take to make your retirement sweeter — no matter your budget:

1. Get All the Free Money You Can

If your employer offers a retirement plan like a 401(k), what are you waiting for? You definitely want to take full advantage of your employer’s matching contribution to your 401(k) plan. 

A 401(k) is a retirement account that’s sponsored by your employer. It’s tax-deferred. That means you invest part of your paycheck before you’ve paid taxes on it and then pay taxes when you withdraw money in retirement. What makes it especially attractive is that many employers will match your contributions — in whole or in part  — up to a certain percentage of your earnings.

“Take advantage of your full company match,” Jeff Dixson told us. He’s a financial adviser in Vancouver, Washington, who hosts a radio show called the Retirement Coach. “If they match 3%, contribute 3%. If they match 6%, try to get to 6%. That’s free money. There’s nowhere else you’re going to get free money.”

2. Invest in Real Estate — You Only Need $500 

In addition to your 401(k), letting your money work for you through investments is a great way to set yourself up for retirement. One of the most lucrative places to invest is in real estate — it’s a strategy tons of wealthy people use. OK, so maybe you’re not uber-wealthy, but that doesn’t mean you can’t prepare for retirement like the 1% does.

A company called DiversyFund will invest your money in commercial real estate — specifically, in apartment complexes that it owns — and you only need $500.

Real estate can potentially earn you more money than the stock market. Over the long term, investing in the stock market will earn you an average annual return of 7%, adjusted for inflation, according to a number of studies. Diversyfund can’t guarantee how its investments will perform in the future — no one can — but historically, it has earned an annual return of 17% to 18%.

So you don’t need a fortune to invest in real estate. All you need to get started is $500, and you can start investing for retirement like the wealthy do.

3. Start Small by Investing Your Digital Change

Maybe you’re just getting started saving for retirement and you don’t have a ton of money to invest. That’s OK — you don’t have to go big right away. Get in the habit of socking away a little money. Everything helps. In fact, that leftover change from your morning coffee and evening grocery hauls could turn into more than $1,000 before you know it.

That’s what happened when Penny Hoarder reader Jeremy Kolodziej opened an investment account with Acorns. The app’s round-up feature bumps each of your purchases up to the nearest dollar and puts the spare change into the stock market, which helped him mindlessly save $1,076 in about 20 months. 

“It’s a virtual coin jar,” he says. “You don’t even think about it.” 

Plus, Acorns invested the money for him, allowing him to grow his savings — without studying stock prices or managing trades. It’s a great way to dip your toes in the investing world and start saving for retirement, even if you don’t have a ton of money to work with.

The app is $1 a month for balances under $1 million, and you’ll get a $5 bonus when you sign up.

4. Launch Your Investing Portfolio with $5

Maybe you’re ready to invest a little more proactively. There’s a great way to do that without needing thousands of dollars. In fact, you can get started with just $5 with with an app called Stash.

Stash lets you choose from hundreds of stocks and funds to build your own investment portfolio, but they make it simple by breaking them down into categories based on your personal goals. 

It takes just two minutes to download the app and sign up, and then it costs $1 per month for balances under $5,000.

And if you sign up now, you’ll get a $5 sign-up bonus. Like any investing, the earlier you get started, the more you can earn. 

5. Get the Most out of Your 401(k)

So we’ve established that you have a 401(k) — kudos for that, but is it doing what you need it to?

If you’re like most people, you have no idea whether your 401(k) is on pace for your retirement or just sputtering along.

Chances are, your 401(k) could be doing a lot better. Take control with help from Blooom, an SEC-registered investment advisory firm that can optimize and monitor your 401(k) for you and keep it speeding toward retirement.

It just takes a few minutes to get a free 401(k) analysis that will show you whether your investments are allocated properly and whether you’re losing money paying hidden investment fees. It’ll even tell you just how much more money your account could earn by the time you want to retire. 

After that, if you sign up, it’s just $10 per month to have Blooom monitor and maximize your 401(k). Bonus: Penny Hoarders get a special rate of $99 per year with the code REEETIRE.

Think of Blooom like a mechanic constantly fine-tuning your car’s engine so it gives you the best possible performance and gas mileage. Except it’s your 401(k) — and your future.

6. Catch Up After 50

It’s never too late to play a little catch-up.

If you’re age 50 or over at the end of this calendar year, you can make annual catch-up contributions to your 401(k) account, bypassing the legal maximums.

In 2018, the federal government raised the personal 401(k) contribution max from $18,000 to $18,500 annually. People in their 50s and 60s can contribute an extra $6,000 per year — if they’re able to.

The bottom line: It’s never too late to start thinking about retirement, and it’s never too early to start thinking about retirement — no matter what your budget looks like.

Mike Brassfield (mike@thepennyhoarder.com) is a senior writer at The Penny Hoarder. He does not have enough saved for retirement.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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How can we protect the cash we’re giving our son?

How can we protect the cash we’re giving our son?

We want to help out my son with a deposit for his first home and can afford to give him £50,000. The problem is that he is planning to buy with his girlfriend, so if they split up she could walk away with half the money we gave him for a deposit. How can we protect our cash?

Tracey Moloney Fri, 11/01/2019 - 00:49

From

HB/Birmingham

In order to protect the money, a deed of trust between yourselves and your son would need to be put in place along with a cohabitation agreement between himself and his girlfriend.

This agreement would make it clear if for any reason the parties separated, who would be entitled to what and how the assets would be split. It would include the fact that you gave him £50,000 in the event that the property is ever sold due to a breakdown in the relationship.

As a belt and braces approach, you would then sign a deed of trust with your son, which would show that the £50,000 was a loan and if for any reason the property is to be sold as a breakdown of the relationship that you would receive the £50,000 back.

Do you have a money question for out panel of experts?

At Moneywise, we have a panel of top experts to help with your money and investing questions. If you have a tax issue that’s keeping you awake at night, a question about investing that you’ve always wondered but been too shy to ask, or even need a full money makeover for free, we’d love to hear from you.

If you have been treated unfairly by a firm send the details to Moneywise’s Fight for your Rights and we could take up the fight for you.

Email fightback@moneywise.co.uk

If you have a question about your investments or investing in general, put it to our Investment Doctor.

Email editor@moneywise.co.uk

If you have a question about your personal finances – anything from tax to state pensions, inheritance tax, property sales and more – write to our Ask the experts panel.

Email advice@moneywise.co.uk

Would you like a full money makeover? We will arrange a free one-to-one meeting for you with an FCA-regulated independent financial adviser worth over £2,000.

See Moneywise.co.uk/money-makeover for more details.

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Schrodinger's millenial: our problems are no easier or harder than our parents – they’re just different

Schrodinger's millenial: our problems are no easier or harder than our parents – they’re just different

Edmund Greaves says life isn’t easy whether you’re a ‘boomer’ or young adult

Edmund Greaves Fri, 11/01/2019 - 00:27

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Pitting the fortunes of ‘boomers’ against those of millennials is a common practice in the media now  – but the challenges faced by both generations are not easy to compare.

In October, Moneywise, alongside its parent company interactive investor, published a detailed report on the state of the nation’s retirement finances – The Great British Retirement Survey. Its findings were very interesting, and I can highly recommend having a read.

One statistic that was thrown up in the results was that 51% of our respondents think that younger generations have it tougher than older people. I think this is a useful statistic as it demonstrates just how polarised the topic is. I would contend that us young’uns are no better or worse off than our forebears, just that we face a different set of issues.

It is true that it is tougher for young people to get on to the housing ladder these days, as demonstrated by the rising age of first-time buyers.

But people buying houses 40 years ago had to contend with something just as challenging – they could buy a house but they also had a stonking interest rate on the mortgage that sent their payments spiralling – that is if they had any kind of employment to pay for it.

We’re often told that young workers today are disadvantaged because they increasingly have to take zero-hours contracts, which strip them of stability, employer pension contributions and other workplace benefits. But while this is true, many will have benefited from this flexibility and the opportunity to work remotely, which didn’t exist 40 years ago.

However, some things used to be better for workers. Until the last decade or so, workers were likely to benefit from a final salary pension scheme. You know, one of those that had minimal risk attached to it and guaranteed a fat sum for the person in receipt.

Such generous schemes hardly exist today, unless you’re in certain FTSE 100 companies or parts of the public sector. And I wouldn’t bet on the government being able to honour those pension promises in 40 years’ time.

Nor, for that matter, maintain the state pension in its current form by the time I hit the age of 70. Good job I’ve got my modest defined contribution pension, eh?

Millennials are frequently told that we should be saving more to fund our retirements.

We’re told that our aspirations of homeownership and being able to retire one day are doomed because we would rather have another holiday in Ibiza or the latest iPhone than stick our money in a savings account where it will earn a measly 1.46% return.

While rates are this low it’s not hard to see why some young people prefer to see their favourite band at Glastonbury than earn a few pennies of interest on their savings.

I think that rather than complaining about the spending habits of younger people, older folk should be thanking us.

When millennials buy iPhones, it ultimately reflects in the share price of Apple Inc or whatever buzzy tech firm is top of the pops. In turn, that contributes to the growth of vast swathes of pension portfolios.

If we stopped buying PlayStations, clicking the Facebook ads or googling the nearest Apple store, guess what would happen? That’s right, the economy would suffer and everyone’s investments and savings would fall in value.

I recently saw an extraordinary piece of research that suggested that the past 10 years of sluggish economic growth in the West was because millennials were too parsimonious. That we weren’t spending enough. So which is it?

It is the Schrödinger’s millennial approach – simultaneously spending too much and too little.

We benefit from a world of technology, consumerism and access to all the goods and services one could imagine and hope to own.

When we buy them, we’re helping to fund everybody’s retirements. Can we please all stop with the finger-pointing and agree that our problems are no easier or harder – they’re just different?

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Deal of the week: Coventry Building Society Poppy Fixed Cash Isa paying 1.7%

Deal of the week: Coventry Building Society Poppy Fixed Cash Isa paying 1.7%

Charity-conscious savers might want to take advantage of the new Coventry Building Society Poppy Isa and bond which pay 0.15% to charity

Edmund Greaves Fri, 11/01/2019 - 10:28

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What is the deal exactly?

Coventry Building Society has launched two ‘poppy’ savings products in time for Remembrance Sunday on 10 November.

The Coventry BS Fixed Isa (2) pays 1.70% AER, fixed until 30 November 2022 – just over two years.

The Coventry BS Poppy Bond also pays 1.70% AER fixed until 31 December 2022.

The building society will donate the equivalent of 0.15% of the balance you deposit into the account. So were you to deposit £1,000, the provider would donate £1.50 to the Royal British Legion.

The accounts can be opened with as little as £1 and managed by phone, online, post or in branch.

According to financial data website Moneyfacts.co.uk poppy accounts tend to be very popular with the public, lasting on average only 18 days before providers close the accounts to new applications.

Why should I care?

Savings rates are low at the moment. Both options are, while not top rates, highly competitive in a deflationary savings rate environment.

You are also giving back at no cost by saving your money into one of these accounts. The Coventry has donated over £17 million to the Royal British Legion via these accounts in the last 11 years.

What’s the catch?

Your money won’t be accessible for over two years. If you think you are likely to need it sooner than this, you should consider an easy-access alternative.

Savers should also be aware when choosing between the Isa and the bond options. Make sure if you open an Isa that you haven’t maxed out your £20,000 allowance, or risk doing so by depositing cash into this account.

What are my other options?

The rate of return might not be enough for some savers. If you’ve got at least a five year horizon for your cash. You should consider investing in the stock market instead. For ideas of how to do this, check the Moneywise First 50 Funds for beginners.

The new accounts aren’t quite the top rate on the market at the moment. Al Rayan Bank offers 1.81% on a two-year Isa. It is an expected profit rate rather than fixed interest, but this in practice makes little difference.

Alternatively, Aldermore offer 1.60% for a two year fixed Cash Isa.

On bonds, you can get a much healthier 2.32% from Al Rayan, or 1.90% from Union Bank of India (UBL).

All of the above accounts, and the Coventry BS accounts are protected up to £85,000 by the Financial Services Compensation Scheme (FSCS).

For more best buys, check the Moneywise best buy savings pages.

Where can I find out more?

Visit the Coventry Building Society website for more information or to open an account.

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Tree, turkey, tax returns? HMRC warns over Christmas filing

Tree, turkey, tax returns? HMRC warns over Christmas filing

More than 2,000 taxpayers used Christmas Day to file their returns last year but HMRC has warned against leaving it to the final few weeks before the 31 January deadline

Laura Miller Fri, 11/01/2019 - 00:13

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With less than 100 days left to go before the cut off, the tax office is encouraging individuals to get their self-assessment affairs in order to beat what is says is a rush over the festive period.

Submitting tax returns early can alleviate some of the last minute stress associated with filing while also preparing for Christmas and New Year.

Angela MacDonald, HMRC’s director general for customer services, says: “The deadline for completing self-assessment tax returns is less than 100 days away, yet so many of us wait until January to start the process. 

“Avoid the last minute rush by completing your tax returns on time and then enjoy the upcoming festive period. Starting the process early and giving yourself time to gather all the information you need will help avoid that stressful, late rush to file.”

Most UK taxpayers have their taxes deducted at source from their wages. Everyone else – the self-employed, business owners, or those with additional untaxed income – must submit a self-assessment return each year.

As well as those groups, anyone liable for the High Income Child Benefit Charge – those with income over £50,000 who receive child benefit, or whose partner gets it –  may need to file a tax return. 

The deadline for submitting paper tax returns is 31 October 2019 and 31 January 2020 for online versions. Late submissions can attract a £100 penalty. Any tax owed must be paid by 31 January 2020. 

5 self-assessment slip ups to avoid

Hargreaves Lansdown, the investment firm, has compiled a list of the most common mistakes taxpayers make when filing their tax returns – which can be all the more likely if it is done in a rush in between opening presents and Christmas dinner.

1. Forgetting pension tax relief

Higher-rate taxpayers are entitled to 40% tax relief on pension contributions. Savers into trust-based workplace schemes get the full 40% automatically, likewise if you pay pension contributions through salary sacrifice.

However, group personal pensions, group SIPPs and stakeholder pensions, where contributions are paid out of taxed income, are treated in the same way as personal pensions: you automatically get tax relief at 20%, and need to reclaim the difference on your tax return.

Use gross contributions on the form - the total of everything you paid in, plus tax relief at 20%.

2. Not claiming gift aid

Basic rate taxpayers usually get this automatically by ticking a Gift Aid box – so if you make a £10 donation, the charity gets £12.50.  If you’re a higher rate taxpayer, you’ll need to reclaim the rest through your tax return.

3. Holding too much cash

Make a charity donation now and you can claim it on your tax return for 2018/19. This is particularly useful when you’re a higher rate taxpayer in one year, and a basic rate taxpayer the next. 

Enterprise Investment Schemes also offer 30% tax relief – which can be claimed on this tax return against income for 2018/19. 

4. Neglecting to divide joint accounts

If you have a joint stocks and shares, when you do your tax return, split the total dividends by the number of account holders, and each put it on your own return. This may help you stay below the £2,000 dividend allowance that kicked in in 2018/19.

5. Failing to fix mistakes on previous years

If you realise you’ve made a mistake on past returns, you can claim a refund for the past four years. Write to HMRC making a claim for ‘overpayment relief’, include proof that you’ve paid the tax, confirm you’ve not already reclaimed it, and add a signed declaration saying that the details are correct and complete.

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