Category Archives: Holiday and Seasonal Finances

How to Avoid Gift Card Fraud This Holiday Season

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gift cardGift cards will be the most requested gift this holiday season for the eighth consecutive year, the National Retail Federation reports. Unfortunately, this also creates an opportunity for fraudsters who want a piece of an industry worth hundreds of billions of dollars per year.

Just ask James Bregenzer, 32, of Chicago, who purchased a $500 airline gift card as a Christmas gift a few years ago for his mother – who was planning a trip to Disney World. After he brought the gift card home from the grocery store where he purchased it, he noticed the PIN area on the back of the card was scratched off, so he called the airline. “I asked if there was any way they could exchange my gift card for a new one, use it to purchase a new one or otherwise protect my purchase with the potentially compromised PIN,” he said.

The airline said there was nothing it could do for him and suggested he use the gift card immediately while it still had its $500 value, but his mother didn’t know her travel dates yet, and he wanted to save the gift for Christmas. Sure enough, when she tried using the card just a week later, it had a zero balance.

Watch Out When Buying or Redeeming

Gift card fraud can happen when a gift card is purchased or redeemed, according to Pete Kledaras, chief risk officer at CashStar, a gift card platform that works with hundreds of major retail brands. Thieves can purchase a physical or digital gift card using a stolen credit card or simply steal the gift card number and PIN and leave the physical gift card. In the latter case, thieves will typically use the balance themselves. “Once cards are stolen, there are any number of ways that thieves can turn that into money for themselves,” Kledaras says. “They can re-sell them, or they can go into the store and purchase physical goods that they can sell.”

Another example of gift card fraud is when a thief tries to return stolen merchandise, and the retailer issues a gift card as a refund. “The criminal is getting $75 cash back from an item that they never purchased in the first place,” says National Retail Federation spokeswoman Kathy Grannis. Then the schemer might turn around and sell that gift card for cash.

To make sure you don’t become a victim of gift card fraud this season, follow these tips:

For the Giver

  • Only buy from trusted sources. Gift card resale markets offer gift cards for less than the face value of the card, but not all of them guarantee the stated value. For example, if the original purchaser still has the gift card and PIN, he or she may be able to use the gift card online even after selling it. Or, if the retailer discovers the gift card was purchased using a stolen credit card, it can cancel the gift card. To avoid these potential issues, Kledaras recommends buying directly from the retailer issuing the gift card. “If you want to buy a Best Buy gift card, it’s best to buy it from Best Buy,” he says.
  • Watch for signs of tampering. In the past, Grannis says thieves would walk into stores and write down the numbers of the gift cards on display. “Since that was first discovered, large retailers have taken steps to remove any opportunity for criminals,” Grannis states. If a card is not in plastic casing, make sure the PIN hasn’t been scratched off. Digital gift cards are also becoming increasingly popular and don’t have potential for physical tampering.

For the Recipient

  • Register your gift card. Some retailers, including Crate and Barrel and Starbucks, allow gift card holders to register their gift cards and protect the balance in case the card is ever lost or stolen. Not all merchants have this option, but if yours does, it’s a good idea to register the card just in case.
  • Treat gift cards like cash. Many states prohibit gift cards with expiration dates, but it’s still a good idea for the recipient to use the card sooner rather than later. This helps not only to prevent fraud, but also to avoid losing or forgetting the gift card. “It’s like having cash sitting on a table,” Kledaras says, “and you want to use it before something happens to it.” In fact, advisory company CEB estimates that over a billion dollars in gift cards were unredeemed in 2013. So it’s better to get the value out of the gift card now than later, when the retailer may be out of business or you misplace the gift card.

4 Ways to Save on Your Holiday Shopping Now

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Art Img 7 TipsIt is hard to believe, but the holiday shopping season is here. If you’re like most families, holiday shopping can be a strain on the budget. Many shoppers also fear looking cheap when passing out gifts, which can lead to over-spending and blowing the budget.

According to the American Research Group, Americans on average spend $801 on Christmas shopping. That kind of number will have a big impact on a budget. If you’re looking for ways to cut down the cost of holiday shopping and still get great gifts, these tips will help.

Start now:

The best way to save money on holiday shopping is to start early. There is a belief that the best deals are available around Black Friday, the day after Thanksgiving, and that is not always the case. Instead of waiting, be on the lookout for even bigger deals that might be hitting stores sooner. The ever expanding influence of online shopping has moved many retailers to begin pushing major holiday campaigns back as early as Halloween, if not earlier. The added benefit is being able to avoid the craziness that Black Friday shopping brings.

Check out the Dollar Stores:

It might not be too common, but shopping at discount or Dollar stores can be a great way to shave some spending off of your gift budget. You might not find your gifts there, but you can probably save on other holiday-related items, such as wrapping paper, gift bags and decorations.

While they might not have good options for a traditional gift, Dollar stores can be a great option for gag gifts, office Christmas parties and white elephant gift exchanges. Beyond that, Dollar stores are a useful alternative for party favors or decorations for parties you may be hosting. Since many of those items will likely be thrown away anyway, there is no point in spending more than you need to.

Shop at stores that match prices:

Price matching has become increasingly expected as many brick and mortar retailers deal with the presence of online shopping. While not every store offers price matching, it can be a great way to save money when added to your shopping strategy. The trick is to know the terms and conditions of the given retailer you’re shopping at. Some will match any retailer while others will not match online-only retailers.

If you have a smartphone, bring it with you when you go shopping. There are many apps available now, from Amazon to others, which allow you to scan the item to see what is charged for it elsewhere. Add that to your arsenal to save money while shopping. Lastly, make sure to check the retailer’s site itself to make sure it’s not offering a cheaper price online than in-store. If you find a discrepancy, you can always ask for a price match, or at least allow a free shipping option.

Watch the daily deal sites:

Like the Dollar store option, daily deal sites may not be commonly thought of as options for gift shopping but they can be a great way to save money. Many daily deal sites regularly sell significantly reduced deals for national retailers that can be great options for presents. They might also give you ideas for items that you can then go track down in local stores.

The problem with daily deal sites is they have a limited window in which you can get the deal. This can definitely pose a problem when shopping for that special someone. However, there are options available if you missed out on the deal you were looking for. CoupRecoup, for example, allows those who have bought deals they’re unable to use to sell them. This can be a great way to potentially score a deal on an item you were looking for.

The holiday shopping season can be a stressful one, especially on a tight budget. By using some simple tips like the ones mentioned above you should be able to shave some money off your holiday shopping budget, and maybe even have some leftover for yourself.

Check out First Financial’s Holiday Savings Club Account – don’t put yourself into debt over holiday spending, save ahead and come out on top (and not in debt)!*

  • Open at any time
  • No minimum balance requirements
  • Dividends are posted annually on balances of $100 or more
  • Accounts automatically renew each year
  • Deposits can be made in person, via mail, payroll deductions, or direct deposit
  • Holiday Club funds are deposited into a First Financial Checking or Base Savings Account

*A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. Click here to view full Rewards First program details. Accounts for children age 13 and under are excluded from this program.

Click here to view the original article source written by John Schmoll of U.S.News.

Help – I spent too much on the holidays and I’m still paying for it months later!

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tighten belt on dollar conceptIf the holidays have left your budget overstretched, there are ways to recover (even if 3 months have passed) … you just need to act as quickly as you can.

While it might be tough to admit it (case in point: you’ve ignored the debt you racked up over the last few months), the first step to reducing your post-holiday debt is realizing and prioritizing it.

Beverly Harzog, author of Confessions of a Credit Junkie, says the best way to start a re-payment plan is to go after the debt on the highest interest rate card first and once that is paid off, go after the next one and so on and so on.

If you overspent this holiday season and know you won’t be able to pay off your credit card bills when they arrive next month, you need to adjust your spending habits ASAP.

Consumers should look at their spending categories and aim to shave small amounts off of each area (even if it’s $5 or $10 to start). Making many small cutbacks will be less painful than trying to find an extra $1,000 all at once to help pay off the credit card balance.

If you put a lot of your holiday gift spending on a high-interest rate credit card, Harzog recommends transferring the balance to a credit card with a lower interest rate. Even if you can reduce the interest rate just a little bit, it will help pay it down faster.

If you are facing significant debt, it might be time to find new ways to generate extra income that is earmarked solely to paying off the debt. If you don’t want to get a traditional part-time job, review your talents and skill set to find alternative ways to make money, whether it’s giving piano lessons, fixing computers, catering, or doing web design.

Ed Gjertsen, Vice President at Mack Investment Securities, recommends the seven-day cash challenge to break an overspending habit. With this challenge, you estimate how much money you spend each week and then take out that amount of cash at the start of the week and see how long it lasts.

“When people do this, by Wednesday or Thursday they are usually out of money,” he says. “They don’t think of all the times they swipe that card. It gives them a reality check of how much they are spending.”

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Affordable Holiday Gift Ideas

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holiday-shopping-womenWant to buy for everyone on your holiday list, but don’t want to go broke while doing so? Here are some tips to keep your holidays fun yet affordable!

  • Make a list. Many people spend as they go, buying presents when they see them and end up surprised when the bills arrive in January. You can avoid this problem by creating a list in advance of who you plan to buy gifts for, and you should budget for each. Then, check this total against your holiday savings to decide if you need to adjust your spending.
  • Be creative. As you begin your shopping, remember that thoughtfulness really does count. Instead of searching for one expensive present, you may be able to save money, and give the perfect gift, by putting together a number of small items that relate to a loved one’s special interest. Someone who truly loves chocolate, for example, might appreciate a small basket full of treats you’ve chosen for them. Anyone with an interest in sewing or crafts could probably use a gift bag with a fresh stock of supplies for the new year. By putting together a lot of inexpensive items, you may be able to save money and show how much you care.
  • Hit the kitchen. If you are a good cook, or you simply have a foolproof recipe, gifts of food are inexpensive and very popular. Whether you give a mixture of great holiday cookies or your grandmother’s prize-winning banana bread, your friends and family are sure to welcome the effort. In fact, you might not need to cook at all. If you’re fortunate enough to have some great family recipes that have received compliments over the years, write them out on attractive cards and tie them with a festive ribbon. These great gifts will spread the joy of delicious cooking throughout your circle of friends.
  • Good deeds are gifts, too. Many of the people on your list may value a favor done for them more than any expensive present. Couples with young children would probably be delighted if you offer to babysit so they can have some time together. You can surprise a friend with a very busy schedule by promising to do the weekly shopping for a month. Present each recipient with a beautiful card describing the good deed to be performed. Such efforts cost nothing more than a few hours of your time, but they are greatly appreciated.
  • Check your list twice. First, plan and purchase all you need for the lower-cost presents recommended here. Then, when you move on to higher-priced presents, keep an eye out for sales and comparison shop to get the best prices. You may find you can get the items on your list for less.
  • Consult your financial planner. These ideas will help limit your spending during the busy holiday season. Your local financial planner can offer great advice on how to manage your money throughout the year. Be sure to turn to him or her for answers to all your financial questions. Financial planners promote personal and professional financial security all year round. If you would like to set up a no-cost consultation with the Investment & Retirement Center located at First Financial Federal Credit Union to discuss your brokerage, investments, and/or savings goals, contact us at 732.312.1500 or stop in to see us!*

*Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

14 Tips to Avoid Cyber Monday Scams

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cyber-monday-discountIn the frenzy of limited time offers, last minute sales and one-click shopping, it can be difficult to stay secure while you shop online, particularly on days like Cyber Monday.

Consumers spend about 1.5 billion dollars on Cyber Monday. Coupled with the boom in sales is a predicted increase in the amount and severity of online scamming and data theft.

Will Pelgrin, CEO of The Center for Internet Security (CIS), a non-profit organization focused on improving the cyber-security posture of both the private and public sector, shares a few helpful tips about staying secure online this season.

1. Don’t Click on Pop-up Ads

Though it may seem obvious, malicious pop-up ads still pose one of the largest threats to web shoppers. According to Pelgrin, studies have shown that a large amount of consumers will click on the “ad” regardless of its message. Be mindful of what pop-ups say, it could be evidence of a security threat.

2. Keep Software Up-To-Date

Though many systems automatically update your software as new features become available, it’s important to keep your programs as current as possible. To avoid security holes, update apps and software minimally once a week, as newer versions appear.

3. Use Strong Passwords

An essential part of online security in any sense is using strong passwords. This means no birthdays, dog names or variations of “1234” for any of your accounts. For help making a strong password, check out this guide: How to Create a Secure Password.

4. Install Antivirus and Anti-Spyware software

When shopping, you don’t want others to be able to track what sites you’re visiting and what information you’re entering online. It’s important to make sure you have antivirus software installed on your computer to protect your sensitive financial information.

5. Enable ‘Timeouts’ on Mobile

According to Pelgrin, more and more consumers are doing the bulk of their holiday shopping on mobile phones. If you’re one of those consumers, make sure to enable a lock screen password, in case your device is lost or stolen. “If your phone isn’t timed out, you’re leaving the keys to your kingdom to whoever picks it up,” says Pelgrin.

6. Use a Secure Connection

Pelgrin recommends that any and all online financial transactions take place through a secure, private Wi-Fi connection, as opposed to using the more vulnerable free Wi-Fi in a coffee shop or library.

7. Avoid Email Advertisements

Your inbox is likely swarming with holiday promotions from all of your favorite (and likely least favorite) brands. To avoid being hacked, the CIS recommends you always enter the shop’s URL in your browser, rather than following the links contained in an email.

8. Shop at Companies You Know

Before you buy from a merchant on Amazon, Etsy or Ebay, check their rating and number of sales. Make sure they have good return policies and clearly posted contact information. If worried, you can always check on a businesses legitimacy through the Better Business Bureau.

9. Use Credit, Not Debit

“There are more security protections on your credit card that may not exist while using your debit card, should your info be taken,” says Pelgrin.

10. Ensure Your Site Is Secure

If you are entering your financial information on a webpage, make sure the URL begins with “https” as opposed to “http” or has a lock in your browser’s search bar.

11. Be Wary of Charity Sites

Though the holidays are frequently the most popular time to make donations to charity, Pelgrin urges consumers to check the legitimacy of your charity’s website.

“Fraudulent sites pop up during disasters and holidays like clockwork. Be alert,” he says.

12. Check Your Location and Privacy Settings

Many apps and websites will automatically share your GPS location by default. Sometimes, apps will change your settings once downloaded. Check what services your downloads have access to in your phone’s privacy settings.

13. Check Your Statements Frequently

According to Pelgrin, some hackers will do very low level theft once obtaining your information, charging small amounts to your credit card to avoid detection. Stay on top of your account statements and keep a record of how much you spend and where.

14. Add Browser Extensions and Security Apps

Pop-up blockers and malware detection extensions will add an extra layer to your security this season.

Happy Safe Shopping!

Click here to view the article source by Max Knoblauch of Mashable.

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Back to School Shopping Strategies to Spend Smart

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back-to-schoolSo here is the deal: it is impossible to avoid back to school shopping. The plain truth is you need to get certain supplies to make sure your child is prepared for back to school season. This can become quite expensive, as children seem to need more and more every year. But savvy spenders know that there are several tips and tricks you can follow in order to save big. You don’t have to be a shopping guru or expert in order to save, you just need to know where the deals are, and the places you can save a few pennies. Below, you will find back to school shopping strategies to spend smart and save big.

You will find that these tips are simple to follow and don’t require a great deal of know how or time. Give these tips a try and see how easy it is to shop smart and save big. Take a peek!

1. Get your child involved.

Explain to your child what the difference between wants and needs are. They won’t be able to get every single item they want and you should be able to tell them that. Before shopping, make a list with your child based on the list the school provides. Make sure your child understands what they will be getting to prepare them for school and what can wait.

2. Eliminate gimmicks.

Teachers will tell you that things like sparkly erasers, light up pencils, and other fancy items can be a distraction. They are not only a distraction, but they are more expensive than plain items. Instead, forget about these back to school gimmicks and keep things simple. It costs less.

3. Keep your supply list in the car.

While you are running your errands, you will want to keep your list on you should you run into any deals. If you don’t have your list, you could miss out on a hot deal. Keep your list in your car or in your purse so if you come across a sale or a free with rebate deal, you have your list to see if you need it or not.

4. Buy basic supplies in bulk.

You can buy basic supplies such as paper, pencils, and notebooks in bulk. Warehouse stores are perfect for buying these items for less and having enough to sustain you for the rest of the year. Do the math and make sure the bulk price beats the a la carte price before you shop.

5. Negotiate a group discount.

Gather the other parents at school and see if you can rally together to save. A group of parents may be able to negotiate a group discount from a local office supply store. Contact stores in your area and see if they are open to the possibility of this. Then, contact parents and get the ball rolling.

6. Stock up and set up a home store.

Buy items on sale, free with rebate, or in bulk and then gather them in a storage bin. Keep the bin in a safe place where they can be shopped during the year as they are needed. That way, you are not having to run out and buy items during the year, possibly spending more.

7. Help your school and yourself.

Ask if your school participates in a program like OneCause. If so you can shop for supplies often receiving a discount and special coupons. Plus with your purchase, your local retailer will donate a percentage to the school of your choice. It is a win/win!

See how easy it is to save money on back to school? With these back to school shopping strategies you can learn how to spend smart and save big. These tips will help you make the most of your cash and stretch your shopping dollar. Give them a try and see how quickly the savings add up for you!

*Click here to view the article source.