How to Use Your Shopping Addiction to Build Credit

If you love to shop, you can use your fashion sense to build or even rebuild your credit.

Store-branded credit cards are some of the easiest cards to qualify for and are often extended to those who have bad credit because they have lower criteria than traditional credit cards. Using them, especially if you’re loyal to a particular store, can bring card rewards, discounts and, if you pay your balance off every month, better credit.

Get It Now
Privacy Policy

Immediate Savings

In most cases, when you apply for a card, the retailer will offer a discount on that day’s purchase. Sometimes the discount will be extended to purchases made within a short time frame (24 hours, for example), as an incentive to spend more. The risk is that instead of saving money, you end up spending more than planned, so it’s wise to be wary.

Watch Your Credit Scores

When you open your new credit card, you may see a dip in your credit scores for two reasons: one, the inquiry created when the issuer checks your credit score, which may cause your scores to drop, though usually not more than a few points. Second, a new account with a balance is often seen as a risk factor. As long as you pay on time and keep your balances below 30% of your credit line, or ideally 10%, you could eventually see a slight rise because you’ll have a positive new credit reference, which is beneficial if you are trying to build or rebuild credit.

As you use your new card, you can track how your usage and payments are affecting your credit by signing up for Credit.com’s free credit report summary. In addition to getting two free credit scores, you’ll get your own credit report card that shows how you’re doing in five key areas on your credit report that also determine your credit score — payment history, debt usage, credit age, account mix and inquiries.

Know the APR

Interest rates for department store credit cards are almost always high, often between 19% and 22%, or more. If you carry a balance, the interest you pay will likely exceed the amount you saved with the discount. This means carrying a balance could hamper your goals, especially if you fail to make on-time payments.

Given store credit cards’ high APRs, you won’t want to go on a shopping spree with them, nor will you want to put more purchases on the card than your budget can handle. (For tips on cutting back without feeling deprived, you can go here.) That said, making a couple of small purchases a month, say, on home essentials or groceries, and paying them off quickly (and on time) will likely beef up your credit.

Before You Apply 

Before you fill out an application, you’ll want to know where your credit stands so you have a good sense of what type of card you might qualify for. Knowing your score will also inform your decision to apply for a card in general, as inquiries on your credit report can cause your score to take an unnecessary hit.

More on Credit Reports & Credit Scores:

  • The Credit.com Credit Reports Learning Center
  • What’s a Good Credit Score?
  • How to Get Your Free Annual Credit Report

Image: diego_cervo

The post How to Use Your Shopping Addiction to Build Credit appeared first on Credit.com.

Source: credit.com

A Parent’s Guide to Setting a Successful Budget for a College Student

The post A Parent’s Guide to Setting a Successful Budget for a College Student appeared first on Penny Pinchin' Mom.

 You are getting ready to send your child off to college. Before you start helping them pack their belongings, there is one thing you need to do.

You need to help them create a budget. You need to teach them how to manage their money so they can learn the tools they’ll use long after they graduate.

WHY DO COLLEGE STUDENTS NEED A BUDGET?

The truth is everyone needs a budget. It does not matter your age. If you are dealing with money, a budget is necessary.

  1. Allows you to control your money. Rather than your money telling you what it wants to do, you get to tell your money where it needs to go. You are always in control when you have a budget.
  2. It teaches financial skills. A budget helps ensure that expenses such as rent, tuition, food, insurance, transportation, and housing are paid – before spending money on the fun stuff. (It also helps to make sure you don’t spend more than you make.)
  3. Makes you aware of where your money goes. When you use a budget, you see how you spend. It is very simple to see if too much is going toward dining out when you should be building your savings.
  4. Helps you track your goals. You need to cover expenses but you should also work on building savings at the same time. Your budget allows you to not only see those goals but track them in real time.

DOESN’T A BUDGET MEAN YOU CAN’T HAVE FUN?

Not at all! If anything, your budget will allow you to have guilt-free fun.

For example, the budget may allow you to spend $50 a week dining out. That means you can go to dinner with friends once (possibly twice) a week and enjoy yourself. You won’t be left wondering how you are now going to make rent.

WHAT TYPE OF BUDGET SHOULD YOUR STUDENT USE?

There are various methods of budgeting such as the 50/30/20 and the zero-based budget. For most college students, the zero-based is the simplest and easiest to follow.

The reason is that you track everything. You give every penny a job. That means if you earn $1,500 for the month that you “spend” the entire $1,500.

You will first cover the needs (food, shelter, transportation) and then your wants. If there is money “leftover” after this is done, it can be added to your savings.

You can use other types but if you have never budgeted before, using this method is the simplest.

WHAT SHOULD A COLLEGE STUDENT INCLUDE IN A BUDGET?

The budget will vary for each person, as the income and expense will be different. However, these are the most common categories that need to be included in a budget:

  • Rent
  • Renter’s insurance
  • Car payment
  • Car insurance (also saving for annual renewal fees)
  • Food
  • Clothes
  • Utilities (phone, electricity, gas, water, etc.)
  • Tuition
  • Fees
  • Entertainment (movies, games, concerts)
  • Dining out
  • Emergency fund savings

Again, you may have items that are not included above or see some that you do not need.

However, the most important thing of all is that every penny is given a job. Account for everything you will spend each month so you never have too much month and not enough money.

HOW DO YOU KEEP TRACK OF YOUR BUDGET?

For most college students, apps or digital trackers are the best options.  But, before you rush and sign up, keep the following in mind.

  1. Cost. Many apps are free and they will work perfectly fine. Other apps have a monthly fee attached to them. If you plan to use one of them, make sure you include that as one of your regular expenses. However, do not let the cost alone be a single factor when it comes to clicking the sign-up button.
  2. Security. Your security trumps all else. You need to make sure the app uses encryption as well as two-factor authorization.

Some of the best apps include:

  • Mint
  • You Need a Budget (YNAB)
  • PocketGuard
  • Mvelopes

However, your student may also like the traditional paper and pencil method – and that is OK as well.

Find the right one that works best for your student. That is all that matters.

TEACHING THEM TO BUDGET

Knowing you need a budget and where to track it is just the beginning. You need to teach your child how to budget.

Start by looking at each category that they need on their budget. You may already know the cost for each category but if not, you may need to make phone calls or do research to know.

For example, you know the rent for the apartment is $850 a month but how much are the average utilities? Ask the manager for these costs so you can include them in the budget.

Next, decide how much they want to allow themselves to spend on food. Show them how much a meal costs for a single person at each restaurant you eat at so they can create an average.

You will then have them decide how much “fun money” they want to include as well. You can base this on them wanting to go to the movies two times a month, one concert a month, or attending three events.

Now you can see the expenses for your student. Add their income to the budget and deduct the expenses. They will see if they are operating in the black (money left over) or in the red (spending more than they make).

Show them how to adjust the numbers by increasing their savings or lowering the amount they can spend on clothes – until the budget equals zero. Zero meaning they are spending every penny they earn.

And making them keep track now will help ensure they stay on track well into the future.

 

 

 

The post A Parent’s Guide to Setting a Successful Budget for a College Student appeared first on Penny Pinchin' Mom.

Source: pennypinchinmom.com

What Investors Should Know About Spread

coffee and phone on pastel mobile

When trading stocks, there are several market terms that are helpful to understand, such as portfolio, dividend, and volatility. Another key term to know is spread.

In simple terms, a spread represents the difference between any two financial metrics. The type of spread depends on the type of security that’s being traded. For example, when trading bonds, the spread can refer to a difference in yields between bonds of varying maturity lengths or quality.

But there are many differences between bonds vs. stocks—and spread is one of them. With stocks, spread refers to differences in price. Specifically, it measures the gap between the bid price and the ask price. Understanding what is spread and how it works can help you more effectively shape your investment strategy.

What Is Spread?

buying a home. As a home buyer, you may have a set price that you’re willing to pay for a property, based on what you can afford and what you’ve been pre-approved for by your mortgage lender.

You search for homes and eventually find one that has everything on your wishlist. When you check the listing price, you see that the seller has it priced $10,000 above your budget. In terms of spread, the maximum amount you’re willing to offer for the home represents the bid price, while the seller’s listing price represents the ask.

What Does Spread Mean?

Aside from stock spread, spread can have a variety of applications and meanings in the financial world.

As mentioned earlier, bond spread typically refers to differences in yield. But if you’re trading futures, the spread can measure the gap between buy and sell positions for a particular commodity. With options trading, it can refer to differences in strike prices when placing call or put options.

Spread can also be used in foreign currency markets or forex (foreign exchange market) trades to represent the difference between the costs for traders and the profits realized by dealers.

With lending, spread is tied to a difference in interest rates. Specifically, it means the difference between a benchmark rate, such as the prime rate, and the rate that’s actually charged to a borrower. So for example, if you’re getting a mortgage there might be a 2% spread, meaning your rate is 2% higher than the benchmark rate.

Bid-Ask Price and Stocks Spread

If you trade stocks online, it’s important to understand how the bid-ask price spread works and how it can affect your investment outcomes. Since spread can help gauge supply and demand for a particular stock, investors can use that information to make informed decisions about trades and increase the odds of getting the best possible price.

Limit orders. This is an order to buy or sell a security at a certain price or better.
•  Stop orders. A stop order, also called a stop-loss order, is an order to buy or sell a security once it hits a certain price. This is called the stop price and once that price is reached, the order is executed.
•  Buy stop orders. Buy stop orders are used to execute buy orders only when the market reaches a certain stop price.
•  Sell stop orders. A sell stop order is the opposite of a buy stop order. Sell stop orders are executed when the stop price falls below the current market price of a security.

Stop orders can help with limiting losses in your investment portfolio if you’re trading based on bid-ask price spreads. Knowing how to coordinate various types of orders together with stock spreads can help with getting the best possible price as you make trades.

The Takeaway

The more investing terms an investor is familiar with, the better able they’ll be to invest with confidence. Spread is a term that means different things in different situations, but when it comes to stocks, spread is the difference between the bid price and ask price of a given stock. Being able to assess what a spread might mean can help inform individual trading decisions.

As you learn more about stocks, including what is spread and how it works, you can use that knowledge to create a portfolio that reflects your financial needs and goals.

SoFi Invest® makes it easy to get started with stock trading and investing. Members can choose which stocks to buy or sell, based on their investment objectives and risk tolerance, and purchase shares in some of the market’s biggest companies through fractional share investing with Stock Bits.

Find out how SoFi Invest can help you reach your financial goals.


SoFi Invest®
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . The umbrella term “SoFi Invest” refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC Registered Investment Advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Digital Assets—The Digital Assets platform is owned by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, http://www.sofi.com/legal.

Stock Bits
Stock Bits is a brand name of the fractional trading program offered by SoFi Securities LLC. When making a fractional trade, you are granting SoFi Securities discretion to determine the time and price of the trade. Fractional trades will be executed in our next trading window, which may be several hours or days after placing an order. The execution price may be higher or lower than it was at the time the order was placed.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOIN20258

The post What Investors Should Know About Spread appeared first on SoFi.

Source: sofi.com

Financial Considerations When Getting a Divorce

In a recent episode, I shared that I would be doing a 4-part series on divorce.  I’ve been divorced for 5 years now and wanted to share what has worked for me, my ex-husband, and our 8 kids during this time. While divorce is not easy, time does help heal, and when your focus is putting your kids first, it is absolutely possible to maintain a healthy, happy family relationship.

My first episode in this series was 5 Expert-Approved Ways to Talk to Your Kids About Divorce.  My second episode in this series was 5 Ways to Co-Parent with Your Ex-Spouse. 

There really isn’t anything easy about divorce. Thankfully, as I discussed in the first two episodes, there are strategies and thoughtful ways to navigate through some of divorces issues, especially if the two parents are willing to put their personal differences aside and focus on their kids. In addition to the emotional turmoil that encompasses divorce, there is also another difficult component that couples must deal with and that is the financial aspect. 

After 25 years of marriage and 8 kids, Mighty Mommy had to get her financial house in order and make some significant adjustments going from a two-income household to a single income.

Here are four financial considerations, as backed by the experts, to keep in mind if you are thinking of or getting a divorce.

1. Get Your Financial Documents in Order

The entire divorce process is completely overwhelming, and when you begin to delve into the financial ramifications, the stress is taken to a whole new level. Once we began having our small tribe of kids, we decided I would leave my career to be home with our family. During the last 10 years of our marriage I went back to work part-time as a freelance writer but by no means was I contributing significantly to our income. My ex-husband managed the majority of our financial affairs so when the reality of our divorce settled in, I knew the first thing I had to do was get a handle on every aspect of our financial status. I honestly wasn’t sure where to begin, but my divorce attorney recommended I start by gathering all my financial documents.

Maryalene LaPonsie, contributor to USNews.com writes in 7 Financial Steps to Take When Getting a Divorce that “as soon as you know you’re getting a divorce, collect all the financial documents you can.” She continues, by stating that these include:

  • “Bank statements”
  • “Credit card statements”
  • “Tax returns”
  • “Retirement account balances”
  • “Appraisals for valuable items, if available”

In addition, other documents to consider are:

  • Mortgage Statement, including any Home Equity Loans and purchase information
  • Checkbook Registry for the last year
  • Any other long-term debt account statements you may have, including car loans

2. Know Your Income and Expenses

When we began our divorce proceedings, I admit I was far more focused on my emotional state than my finances. 

When we began our divorce proceedings, I admit I was far more focused on my emotional state than my finances.  Because my ex was the one who paid all the bills and the sole provider for most of our marriage, I never worried much about the details of our 401(K) plan, life insurance policies or what our overall assets and debt totaled.

One piece of advice I received many times over was that I needed to know what our budget was so I could begin to realistically know what my living expenses would be. 

Jason Silverberg, CFP at Financial Advantage Associates, Inc. and author of The Financial Planning Puzzle, told me via email: “If there was one singular, most important piece of financial advice that I could offer someone going through a divorce, that would be to understand where everything is and what everything’s worth. Without knowledge of what you own and who you owe money to, you really are going to have a hard time moving forward. You’ll also want to understand all of your sources for income and all of your monthly expenses as well. This will help you have a good handle on your budget to provide you critical understanding, so you can make smart financial decisions.”

He went on to say, “This exercise should be done both prior to as well as after the divorce. This way you can get a sense for how your household budget will operate on one income.” To help divorcing couples realize these figures, Silverberg has created the Personal Financial Inventory (1 page worksheet) inside the Picking up the Pieces eBook.

This exercise was extremely enlightening as I realized exactly where every penny (and then some) was going on a monthly basis. I was also able to gauge how much income I would need to start making in order to support these bills in addition to the child support and alimony payments I was receiving. One important factor to consider with child support is that it will decrease as your children get older, so I had to continually modify my budget based on this decrease. At first, it was overwhelming to see how much money I would need to keep our household running, but when you are armed with the figures and you pay attention to your monthly cash flow, it becomes easier to make adjustments. The fact of the matter is that some of the extra splurges such as frequent trips to the hair salon or buying my kids their usual top-of-the line items like sneakers or sports equipment had to be adjusted to what I could now afford. My kids have had some disappointments in this department, but they appreciated how we were trying to work together as a family-unit so that their lifestyle wasn't affected as drastically as it could've been which balanced everything out.


3.  Consider What Professionals Will Represent You

There are important considerations to keep in mind when choosing which divorce professionals will represent you. Adrienne Rothstein Grace writes on the Huffington Post, 3 Steps to Prepare for Your Divorce, that you must align yourself with the right professionals.  She explains “First, think about the divorce process you and your spouse will want to undertake and ask yourself the following questions:

  • “Is this going to be an acrimonious divorce? Or will my spouse and I cooperate?”
  • “Do I already know about all of our household and personal finances? Or do I suspect that I may be out of the loop on some assets, debts or income sources?”
  • “Do I trust my spouse to be cooperative and forthright?”
  • “Do I have any reason to believe that I will feel intimidated by my spouse during these proceedings?”
  • “Are we both focused on the wellbeing of our children?”

Grace says that “If you believe that you and your spouse will cooperate and will have joint best interests in mind while negotiating, then you might want to choose a divorce mediator or embrace a collaborative divorce. Those options are less costly, more private, and usually result in a more peaceful settlement process. However, if you’re not certain about finances, or cannot trust your spouse to be completely above-board and cooperative, then you might hire a traditional divorce attorney, who will only have your interests in focus while they help negotiate the complexities of your divorce.”

My ex-spouse and I decided to retain individual divorce attorneys. In addition, we also hired a Certified Divorce Financial Analyst, (CDFA) at the recommendation of each of our lawyers, who met with us jointly to give us a complete overview of what our financial future was going to look like. It's a huge wake-up call when you see all the numbers in front of you on paper.  At our first meeting with the CDFA I learned quickly that I was going to have to go back to work, full-time to sustain the home we lived in as well as the upkeep, taxes, insurance, and basics like groceries for our large family. 

It's a huge wake-up call when you see all the numbers in front of you on paper.

If you surround yourself with competent, caring professionals who will guide you through this very delicate journey, you will have made an important investment in your family’s future, financial well-being.

4.  Stay in the Financial Know Throughout Your Divorce

Throughout your divorce, you’re bound to get all kinds of advice from friends, family, co-workers and other concerned individuals that will be looking out for you and have your best interest at heart.  This can be both helpful and draining depending on your relationship with these people.  When I began divorce proceedings, I too received lots of comments and suggestions from well-meaning folks, but I also decided I wanted to be armed with my own facts so I began reading lots of articles and books as well as listened to informative podcasts about divorce, particularly financially-related pieces.

My QDT colleague, Laura Adams, Money Girl, recently did an wrote about divorce in Getting Divorced? Here's How to Protect Your Money. She interviewed Stan Corey, a divorce expert and author of a new book, The Divorce Dance. This podcast had some terrific insight and some of the topics she and Corey cover in this interview include:

  • Different types of divorce proceedings that you can choose
  • The biggest mistakes that can cost you financially in a divorce
  • Why relying on a single family law attorney can be a bad idea
  • Tips for dividing up financial assets the right way—especially when you’re not so financially savvy
  • How to get divorced when you don’t have much money to pay for it

As you continue down the path of your divorce, surround yourself with as much information as you can, so that you will be able to make the best decisions possible for you and your children.

Five years later, I am still watching my financial picture very carefully.  I work full-time and do freelance work on the side in order to maintain my home and other living expenses.  I am extremely grateful that my ex-husband is very supportive of many of our 8 children’s extracurricular expenses, but the reality is I’m responsible for my own financial future so I have learned to be extremely careful with purchases and expenses.

The final topic in this divorce series will revolve around putting your kids first after the divorce.

How have you managed your finances during a separation or divorce?  Please share your thoughts in the comments section at quickanddirtytips.com/mighty-mommy, post your ideas on the Mighty Mommy Facebook page. or email me at mommy@quickanddirtytips.com. Visit my family-friendly boards at Pinterest.com/MightyMommyQDT.

Be sure to sign up for the upcoming Mighty Mommy newsletter chock full of practical advice to make your parenting life easier and more enjoyable. 

Images courtesy of Shutterstock.

Source: quickanddirtytips.com

Under the Influence: 40% of Americans Have Purchased Something Seen on Social Media

Social media has wormed its way into most aspects of our lives. It’s how many adults make friends, find dates, and even build career networks. It’s a virtual portfolio of our personal and public selves, and of course many of us want to show our best online. Which presents the question — how do you influence others, and how do others influence you on social media?

More than a third of Americans admit that social media has influenced their spending habits and that they overspend to keep up with their friends’ fun. Meanwhile, 64 percent of Americans are wondering how their friends can afford the expensive trips and trends they’re sharing online.

Online shopping has seen significant gains since the start of quarantine in the U.S. Recent reports find that 40 percent of consumers have increased their online spending to some degree. Food is the most popular item bought online, and 31 percent of Americans say they’ve ordered takeout. Hygiene is the second most popular online purchase with 27 percent of Americans shopping disinfectants and other items online, followed by clothing at 26 percent. 

The feeling of needing to keep up with friends and perform on social media is at the core of many poor online spending decisions and can be detrimental to your financial health. A $30 concert ticket may not seem like much, but this builds a habit of overspending that can impact savings goals and unbalance your budget. 

We surveyed 1,500 people to learn more about social media spending and found:

  • 40 percent of Americans have made a purchase because of social media influence
  • A quarter of Americans have bought clothing or accessories, the most popular category, because of social media
  • Nearly 20 percent of Americans admit to judging others for sharing their purchases

40% of Americans Have Made a Purchase Influenced by Social Media

Bar graph displaying what products Americans are buying after seeing them on social media.

Our survey found that 40 percent of Americans admit to purchasing an item or experience after viewing something similar on social media. Clothing and accessories was the most popular category, with 24 percent of respondents sharing that they’ve shopped new looks on social media. 

This percentage drops significantly to just 12 percent buying beauty and health products — the second most popular category. Vacation experiences were the least influential category with just 5 percent of Americans planning a trip because of social media. 

Generation X (ages 35–44) is the most likely to purchase with social media influence. Forty-four percent of Gen X respondents say they’ve purchased something they saw online, with clothing and accessories keeping its popularity at 27 percent.

On the other hand, Baby Boomers (ages 65+) were the least likely to buy from social media at 31 percent, followed by Generation Z (ages 18–24) at 36 percent. Only 40 percent of Baby Boomers use social media, while 70+ percent of other age groups connect online. This is likely why fewer Baby Boomers shop with social media. 

Additionally, 46 percent of women have purchased something they saw on social media while only 34 percent of men had done the same. Both women and men prefer clothing, but men put more value in experienced-based purchases, like events and vacations, than women seem to. 

Clothing and Accessories Have the Most Influence

Clothing and accessories remained the top influencer across age and gender groups. Gen X women are the most interested in fashion with 38 percent buying clothing or accessories they saw shared on social media. Men were less interested in fashion than women, and Gen Z and Baby Boomers were the least interested with just 14 percent of men in each generation buying fashion trends from social media. 

The fashion industry has built a huge market around the ability to control messaging and increase accessibility through visual apps. A quick and easy example of this is the 847+ million posts under #fashion on Instagram. 

Even among fashion influencers, 42 percent shop directly through Instagram. The cycle of trending fashion grows as 86 percent of influencers purchase items they’ve seen other influencers wear, and are likely to then share the trend on their own account. 

Nearly 20% of Users Judge Others for Sharing Their Purchases Online

20% of users judge others for sharing their purchases, 64% wonder how their friends afford these purchases

While a large percentage of Americans admit to making purchases they see on social media, a fifth of respondents also admit to judging others for sharing their purchases online. Interestingly, younger generations were the most judgemental. Twenty-three percent of Gen Z users judged their peers’ purchases, while just 15 percent of those 55 and older judged others’ purchases. 

It seems men are the most likely to judge others for sharing what they buy. Twenty-seven percent of Gen Z men admit to judging others’ purchases, while just 19 percent of the youngest generation’s women do the same. 

Recent research suggests that there may be a direct tie between envy and conspicuous consumption on apps such as Instagram. Preliminary research suggests that many users believe others are posting their purchases to flaunt exclusivity, which builds envy and may support why so many users are quick to judge others. Those who reported high levels of envy were also more likely to consciously purchase items they had seen in an attempt to close the perceived wealth gap. 

Social media trends are here to stay, and marketers are taking advantage of the authenticity of influencer marketing. A third of Americans admit to spending more than they can afford to keep up with their friends, and social media envy plays a large part in this influence. The best way to stay financially secure is to commit to a budget. Apps like Mint can help you plan and stick to your larger savings goals and combat the habit to impulse buy.

View the Social Media Influences infographic

Sources: Charles Schwab | Intellifluence | HelpGuide | Harvard School of Public Health | Medium 

 

Methodology 

This study consisted of two survey questions conducted using Google Surveys. The sample consisted of no less than 1,500 completed responses per question. Post-stratification weighting has been applied to ensure an accurate and reliable representation of the total population. This survey ran during August 2020. 

The post Under the Influence: 40% of Americans Have Purchased Something Seen on Social Media appeared first on MintLife Blog.

Source: mint.intuit.com

What Financial Freedom Means — And How to Reach it

Financial freedom means different things to different people. Whatever your definition, here’s how to get there.

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.

Source: thepennyhoarder.com

How to Use Your Wanderlust to Build Credit

Love to travel? Good news: There are ways to put that wanderlust to use with a travel rewards credit card.

Though travel rewards cards aren’t the easiest to get approved for as they require an excellent or good credit score, those who are able to snag one can use it to build better credit. (Just remember, before you apply it’s important to know where you stand so you don’t get turned down only to see your score suffer as a result of the inquiry.)

Travel Rewards Cards & Credit

A travel rewards credit card lets accountholders earn points or miles that can be put towards hotel stays, airfare and other travel expenses. These rewards can help travelers lower the cost of vacations, and the card itself can be a good tool for building credit.

If you make payments on time, eventually your score will begin to rise because this behavior creates a positive payment history, an important factor in credit scoring models. The card’s credit limit will also count toward your credit utilization rate, which is another big factor in scoring models. Your credit utilization rate is how much debt you carry versus your total available credit. For best credit scoring results, it’s recommended that you keep your debt below 10% and at least 30% of your credit limit(s). So if you charge a vacation and then pay most or all of the purchases off right away, your score could benefit.

You can keep track of how your usage and payments are affecting your credit by signing up for Credit.com’s free credit report summary. Beyond seeing your credit scores, you’ll be able to check how you’re doing in five key areas of your credit report that determine your credit score, including payment history, debt usage, inquiries, credit age and account mix.

Since interest rates for travel rewards cards tend to vary depending on creditworthiness, you’ll want to be mindful about carrying a balance. Doing so could hamper your credit goals, and the interest you pay could exceed whatever you’ve managed to glean from rewards. Many travel rewards cards carry annual fees, too, so you’ll want to make sure your spending habits justify the potential cost. (You can read about the best travel credit cards in America here.) Of course, making purchases on your card and paying them off quickly (and on time) will generally boost your credit.

Remember, if your credit is looking a little lackluster and you’re having a hard time qualifying for any type of credit card, you may be able to improve your scores by disputing errors on your credit report, paying down high credit card balances and limiting new credit inquiries until your score bounces back.

[Offer: If you need help fixing errors on your credit report, Lexington Law could help you meet your goals. Learn more about them here or call them at (844) 346-3296 for a free consultation.]

 

More on Credit Cards:

  • Credit.com’s Expert Credit Card Shopping Tips
  • How to Get a Credit Card With Bad Credit
  • An Expert Guide to Credit Cards With Rewards

Image: Geber86

The post How to Use Your Wanderlust to Build Credit appeared first on Credit.com.

Source: credit.com

How to Figure Out Your Family’s Grocery Budget (and Stick to It!)

The post How to Figure Out Your Family’s Grocery Budget (and Stick to It!) appeared first on Penny Pinchin' Mom.

One question I see time and again is “How much should I spend on groceries for my family of four ?” — or three, five, etc.

When you’re making a household budget, it’s easy to know how much you need to include for most of your living expenses, like utilities, student loans, and even fuel. But when it comes to your average grocery bill, how much should you expect?

As much as I wish there were a simple answer, a family’s grocery budget will be different for every household. There’s no right or wrong number, but finding yours is key to keeping your grocery spending in check.

Here’s a guide to help you figure out how much you should spend on food each month.

Calculator and receipt in shopping cart for grocery budget

WHY YOU NEED A GROCERY BUDGET

It may sound like it should go without saying, but you need a food budget because it will force you to think about money when you’re grocery shopping. After all, your income is a certain amount, and that means you only have a certain amount of money you can spend on food for your family.

The other reason you need a frugal food budget is to make sure you don’t spend too much money for the food your family needs (and to save money by not buying food you don’t need). You become smarter about your spending and think twice before adding impulse purchases to your shopping cart.

HOW MUCH TO BUDGET FOR FOOD

It can be tough to figure out how much you *should* budget for food vs. what you’re currently spending on your meals. There is not a right or a wrong number, but you must find the right amount so you don’t overspend.

Here are some tricks you can try to help you figure out exactly how much to spend on food per month.

Budgeting Hack 1: Use the National Average

According to the U.S. Department of Agriculture, the average household spends about 6% of its income on groceries each month. However, the study also shows that the average American also spends 5% of his or her disposable income on dining out. That makes your food budget 11% of your overall income — a significant expense!

If you want to keep things simple and use the national average to calculate your monthly grocery budget, then plan on spending 6% for groceries and an additional 5% for dining out.

Here is an example: If your take-home pay is $3,000 a month, you will budget around $180 for groceries and $150 for dining out. Of course, if $180 won’t cover your needs, then you need to commit to a more thrifty plan: Scale back on eating out and use any additional money toward your grocery needs.

Budgeting Hack 2: Use Your Actual Spending

A more realistic way to figure out how much to budget for groceries is to look at your current grocery spending. An easy way to do this is by completing a spending form.

Here’s how it works. Review all your purchases over several pay periods. You should include food spending, fuel, dining out, entertainment — everything. Having all the numbers in front of you will help you calculate the average of how much you’re spending on groceries (and all your other budget categories!) every week.

If you think your expenses for food add up to too much money, you can try to reduce your spending. Just keep in mind that your family will have to adjust the way you eat.

Budgeting Hack 3: Use a Grocery Calculator

Sometimes, you want to get specific help when figuring out how much to budget for food. There is a simple to use, online grocery budget calculator; you can use it for free.

Fill out the information for all of your family members, then hit calculate. It will return an average you should plan on budgeting for your family.

I ran this report for my family, and the result said we should plan on $219.35 for an average grocery budget for our family of five. That is more than we spend. On average, I spend $125 – $150 per week on everything our family needs.

While using a budget calculator can be helpful, it might end up doing the same thing for you: Suggest an amount that is higher than what you know you spend — or is higher than what you can afford. Use this calculator as a guide, but not the only factor when determining your budget.

Budgeting Hack 4: Look at the U.S. Average

Another way to reach a grocery budget amount is to look at the plans created by the USDA. The most recent plans are on their website. They provide the weekly cost for a thrifty, low-cost, moderate-cost and liberal plan on a weekly and monthly basis. The amounts are broken down by gender and age. You will need to total the numbers listed for the people in your family.

For example, the average grocery budget for a family of four is about $871, per this report. The amounts will be lower, of course for a family of three or higher if you need to budget for a family of five.

Once again, these numbers should be a guide. Once you start grocery shopping for your family, you may find that you spend much less – or even more – than what the average family spends on groceries.

Don’t Forget Special Dietary Needs

If you have a family member who cannot eat gluten or who has other dietary restrictions, these can affect your budget. Make sure you keep these foods in mind when developing your budget as they can cost much more than average foods or require trips to a specialty grocery store.

TRICKS TO MAKING A MONTHLY FOOD BUDGET

There is no magic formula or grocery budget app that will pull the numbers together for you. The key is to make sure that you put forth the effort in the right manner to make it work for you. Keep the following in mind when figuring your monthly food budget:

1. Consider Your Current Spending

Before you can make any changes, you have to know where you are starting. That way, you can see what you currently spend on your groceries so you can start cutting back.

Need help figuring our your average grocery bill?

You can use the Spending Worksheet and go back to find your spending on food over the past 8 weeks. Look at every transaction in your bank statement and total it. Then, divide that amount by two. You know have an average your family spends on food every month.

The next step is going to be finding a way to not only spend that amount going forward but try to find ways to spend even less if you can.

2. Put It in Writing

The next things you need to when creating your budget for food is to put it in writing. Once written down, you are more willing to commit to the process. Make sure your spouse or partner is also on board so you can work together to ensure you don’t overspend.

3. Start Using Cash

If you really want to stick to a tight budget, you need to use cash. Each payday, get cash from your bank for the amount you’ll need at the grocery store. That is all you have to spend until the next payday. No cheating! That means you can’t whip out your debit card if you run out of money.

You’ll quickly learn better ways to be smart and strategic when figuring your budget and sticking to it. (Read more about how to start using a cash envelope budget ).

4. Commit to Using Your Budget

You can have the greatest intent to use a budget, but if you aren’t ready to do so, it will never work. It is just like dieting. You may know you want to shed pounds, but if you are not willing to put in the effort, the weight will never come off.

Once you know the amount you have to spend at the grocery store, you need to stick to it (this is another reason to use cash). You have to make the conscious decision that you want to budget and then do all you can to make it work.

Your spouse or partner needs to be on board, too. It will never work if one of you is committed to making your grocery budget work and the other is not. Have a long heart to heart talk and make sure you are on the same page.

Read more: How to talk to your spouse about money

GROCERY SHOPPING ON A BUDGET

If you’ve tried all these ideas and still need to save money on groceries, here are some simple tricks you can try.

Reduce Your Dining Out Budget

Stop eating as many restaurant meals. That’s an easy way to find money to add to your grocery shopping budget, especially if this means you’re cutting back on alcohol spending at restaurants.

Use Coupons

While they are not for everyone, coupons are the simplest way to save money on the items you need. Even if coupons aren’t available for the grocery items you need, you can find them for household products you use, like toilet paper and laundry detergent, thereby reducing your spending and increasing the money you can spend on the foods you want.

Stick to Your List

Never shop without a list and only purchase the items on your list. Put in writing or use a grocery list app and don’t be tempted to add extra items to the cart.

Make a Meal Plan

Create a meal plan before you grocery shop. That way, you have a plan for the week not only to know what you will eat but also to make sure the ingredients will be on hand when it’s time for meal prep (reducing those frequent drive-thru meals). Meal planning saves you time, money, and the stress of figuring out “Mom, what’s for dinner?” without resorting to frozen pizza.

Keep a Price Book

Start watching the sales cycles at your grocery store and you’ll learn when it is time to stock up on your pantry staples, so you always pay the lowest price. Keep track of the prices in a price book for every item your family needs. (Bonus: When you get good at identifying your store’s food cost cycles, you can plan a meal or two around the fresh foods on sale in any given week.)

Add a Meatless Meal

One item that can quickly increase your grocery bill is meat. Try having a meal without meat every week (like Meatless Mondays), and you’ll find that you spend less.

Vegetables are cheaper than meat and can be just as filling. Having vegetables for your main course at dinner is not only healthy but can also help with saving money. Try loaded sweet potatoes, pasta with veggie sauce, or cheese and vegetable pizza for a delicious meal.

If veggies are a hard sell for your family, try fruit salads or breakfast for dinner — pancakes and French toast are cheap and fast!

Buying fresh fruit and vegetables that are in-season can help you save even more on your monthly grocery bill. And frozen vegetables and fruit are often cheaper (and tastier) than “fresh” produce that’s not in-season.

  • Pro tip: When you’re buying meat, remember that cuts like chicken thighs are often significantly cheaper than chicken breasts, and they have more flavor. Get more tips on saving money on meat, produce, and dairy products.

There’s an App for That

There are many grocery savings apps that can help you keep tabs on food prices and create a smarter shopping list. What is great about an app is that you always have it with you on your phone, so no worry that you left a coupon at home or in your car.

Steer Clear of Mistakes at the Grocery Store

When you grocery shop, there are temptations around every corner (and I don’t just mean the ice cream and chocolate chip cookies). There are sales on the end caps, fancy signs and different tricks stores use to make you spend more money. Learn about the ways grocery stores get you to spend more money so you can avoid them.

Avoid Haste and Waste

One of the biggest ways people waste money when it comes to food is through waste. People often buy food that goes bad before they get around to eating it.

You might also waste money buying convenience foods. (That frozen meal might seem like a deal when you’re running low on time, but you’ll save more if you prepare big batches of homemade, healthy food and freeze some leftover portions for later.)

These are two ways you are killing your grocery budget. Study your habits and find ways to make changes so you aren’t wasting money on food.

  • Pro tip: One convenience food I occasionally give into is a rotisserie chicken. It’s ready to eat when I get home from the store, and you can use it in a few other meals during the week.

NOW GO SAVE MONEY ON YOUR GROCERIES!

Take the time to create a grocery budget that is both frugal and feasible for your family. Don’t try to make the dollar amount so low that it is unrealistic, or it will fail month after month. But if you pay attention while you’re shopping and keep an eye on how long the food lasts your family, you’ll soon discover that having a realistic grocery budget is the tastiest way to save money!

The post How to Figure Out Your Family’s Grocery Budget (and Stick to It!) appeared first on Penny Pinchin' Mom.

Source: pennypinchinmom.com

Understanding The Different Types of Cryptocurrency

bitcoins on yellow background

Cryptocurrencies can act like real money—in a sense, they are real money—but they take a digital monetary form and are not managed or governed by any central authority. A true product of the digital age, cryptocurrencies operate without the involvement of banks, governments, or any middleman.

Statista —with Bitcoin boasting more than 7 million active users.

Insiders call it “crypto,” so that’s what we’ll be calling it going forward.

Crypto Tokens vs. Coins

Encrypted coins and tokens can fall under the heading of crypto. And, generally, they can be listed into two sorts of cryptocurrency: alternative cryptocurrency coins (Altcoins) or tokens.

Alternative Cryptocurrency Coins (Altcoins)

Altcoins usually refer to any coins that are not Bitcoins. Bitcoin is a popular digital currency that’s produced by computational solutions to complicated math problems. It works separately from a central bank or state entity (i.e., government-backed Treasury).

Some altcoins include:

•  Peercoin
•  Litecoin
•  Dogecoin
•  Auroracoin
•  Namecoin

In fact, the name “altcoin” actually means “alternative to Bitcoin.” Namecoin is considered the very first altcoin, created in 2011.

Like Bitcoin, most cryptocurrencies listed here have a limited supply of coins—to keep the balance in check and to reinforce its perceived value. There is a fixed number of Bitcoins that can exist—21 million, as decided by the creator/s of Bitcoin, though some remain to be mined. Once all 21 million are tapped (the number changes when new blocks are mined), that’s it. The only way to bring in more is for Bitcoin’s protocol to allow for it.

Though most altcoins are built upon the same basic framework as Bitcoin, many claim to be better versions of Bitcoin.
Each system can differ from the next, as they’re created to serve various purposes and applications, and identified in different ways.

Some coins don’t work with the same open-source protocol that Bitcoin does, however. For example, the following list of cryptocurrencies have created their own separate systems and protocols:

•  Ethereum
•  Ripple
•  Omni
•  Nxt
•  Waves
•  Counterparty

They’re each self-supporting, too.

Tokens

Unlike altcoins, tokens are created and given out through an Initial Coin Offering, or ICO, very much like a stock offering. They can be represented as:

•  Value tokens (Bitcoins)
•  Security tokens (to protect your account)
•  Utility tokens (designated for specific uses)

They are not so much meant to be used as money as they are used to describe a function. Like American dollars, they represent value but they are not in themselves of value. Tokens are a type of encryption, specifically referring to the long lines of numbers and letters representing the crypto used in a transaction, such as a money transfer or bill payment. In short, tokens cover a number of meanings.

For instance, both Bitcoin and Ether (from Ethereum) are considered crypto tokens.

Ready to add crypto
to your portfolio?


The Most Common Types of Cryptocurrency

Here’s a list of cryptocurrency types—representing the most popular industry crypto projects (at present):

1. Bitcoin

Possibly the “Kleenex” or “Coca Cola” of all crypto, in that its name is the most recognizable and the most closely associated with the cryptocurrency system.

There are currently more than 18.5 million Bitcoin tokens in circulation, against a present capped limit of 21 million.

2. Bitcoin Cash

Introduced in 2017, Bitcoin Cash is one of the most popular types of cryptocurrency on the market. Its main difference with the original Bitcoin is its block size: 8MB. Compare that to the original Bitcoin’s block size of just 1MB. What that means for users—faster processing speeds.

3. Litecoin

Litecoin is increasingly used in the same breath as Bitcoin, and it functions practically the same way. It was created in 2011 by Charlie Lee, a former employee of Google. He designed it to improve on Bitcoin technology, with shorter transaction times, lower fees, more concentrated miners.

4. Ethereum

Unlike Bitcoin, Ethereum focuses not as much on digital currency as it does on decentralized applications (phone apps). You could think of Ethereum as an app store.

The platform is looking to return control of apps to its original creators, and take away that control from middlemen (like Apple, for instance). The only person who can make changes to the app would be the original creator. The token used here is called Ether, which is used as currency by app developers and users.

5. Ripple

Ripple is one type of cryptocurrency on the list, but it’s not Blockchain-based . It’s not meant so much for individual users as it is for larger companies and corporations, moving larger amounts of money (its coinage is known as XRP) across the globe.

It’s more well-known for its digital payment protocol more than for its XRP crypto. That’s because the system allows for transfer of monies in any form, be it dollars or even Bitcoin (or others). It claims to be able to handle 1,500 transactions per second (tps). Compare this with Bitcoin, which can handle 3-6 tps (not including scaling layers). Ethereum can handle 15 tps.

6. Stellar

Stellar focuses on money transfers, and its network is designed to make them faster and more efficient, even across national borders. It was designed by Ripple co-founder Jed McCaleb in 2014 and is operated by a non-profit organization called Stellar.org .

Its goal is to assist developing economies that may not have access to traditional banks and investment opportunities. It doesn’t charge users or institutions for using its Stellar network, and covers operating costs by accepting tax-deductible public donations.

7. NEO

Formerly called Antshares and developed in China, NEO is very aggressively looking to become a major global crypto player. Its focus is smart contracts (digital contracts) that allow users to create and execute agreements without the use of an intermediary.

It’s going after its main competition, Ethereum, but NEO lead developer Erik Zhang mentioned on a Reddit AMA that NEO has three distinct advantages—better architecture, more developer-friendly smart contracts, and digital identity and digital assets for easier integration into the real world.

Ethereum, on the other hand, uses its own programming languages that developers must first learn before creating smart contracts on its platform.

8. Cardano

Cardano aka ADA is used to send and receive digital funds. It claims to be a more balanced and sustainable ecosystem for cryptocurrencies, and the only coin with a “scientific philosophy and research-driven approach.”

That means that it undergoes especially rigorous reviews by scientists and programmers. It was founded by Charles Hoskinson, who is also the co-founder of Ethereum.

9. IOTA

Launched in 2016, IOTA stands for Internet of Things Application. Unlike most other Blockchain technologies, it doesn’t actually work with a block and chain; it works with smart devices on the Internet of Things (IoT).

All you need to do to use it is to verify two other previous transactions on the IOTA ledger, which is called the Directed Acyclic Graph (DAG), but IOTA creators call it The Tangle.

According to Coin Central , this means the devices need to be able to purchase more electricity, bandwidth, storage, or data when they need them, and sell those resources when they don’t need them.

The Role of Miners In Cryptocurrency

How exactly do you get your virtual hands on different types of cryptocurrency? You can buy it the old-fashioned way. Or, you can trade it on an exchange using other crypto (for example, using Bitcoin to buy NEO). Some blogs and media platforms pay its content providers in crypto.

Then, there are the miners . Miners usually don’t pay directly for their crypto; they earn it with their smarts. These tech savvy investors can be compared to the prospectors of the Old West, panning for gold in 1848.

The value is built in because the supply is limited—it’s just up to the complex computers to dig it up by cracking codes and solving complicated puzzles. A lot of it is guesswork, but once the “block” (of the blockchain) is solved, the other miners drop what they’re doing and go on to the next block. No parting gifts—the contestants just turn their attention to the next game round.

If the puzzle is solved, the reward is a certain amount of crypto, and sometimes even voting power on the platform. As of October 2020, the value of one bitcoin had well exceeded $13,000 .

Sounds sweet, but mining isn’t cheap. It requires powerful, expensive hardware and lots of electricity. Also, the number of awarded crypto will be going down, usually by halves every four years or so. Unfortunately, that might not do your utility bill any favors.

Forks, Hard Forks, and Soft Forks

Sometimes, a cryptocurrency—whether Bitcoin or an altcoin—forks. This typically happens when systems need an upgrade or update, or occasional steering (ie a large enough group of miners decide to make new rules for the network.

You could think of a fork like an actual fork, the kind you eat with. Each prong represents a different open-source code modification, but the prongs are designed to work together to assist in the main function.

Sometimes, forks happen by accident when nodes start making copies or if they do not recognize conflicting or unfamiliar information or characteristics. This is what leads to the difference between hard forks and soft forks.

Hard Forks

If a protocol is changed so that the old protocol version is no longer valid, call that a hard fork. This could be problematic, because if the older, now-invalid protocol is still running, it could lead you to scratch your head and say, “what the fork?” It could cause confusion and even possibly a loss of funds, because the old and new protocols running together are butting heads and making mysteries.

An example of a hard-fork problem—with Bitcoin, for instance, a hard fork is a must when making changes and protocol updates to the Blockchain. The new protocol is cool with the changes, but the old protocol becomes a hot mess, not understanding the new activity going on.

Since the old protocol rejects the new changes because it doesn’t recognize them, that causes a traffic jam or worse. The old protocol will claim that the changes and updates are not valid, even if they are. What you then get are two blockchains, one old and one new. As these chains grow, so can your problems.

The hard-fork challenge, then, is to get all the nodes on the old protocol to switch to the new protocol all at once, and at the same time. This sounds easy, but technically it’s easier said than done.

Soft Forks

Unlike a hard fork, a soft fork is totally cool with the new changes and keeps working. The old version accepts the newer version. Harmony! The newer, updated blocks become longer, and it becomes obvious that the older (shorter) blocks are obsolete and unusable. This recognition eliminates confusion over which protocol is now the real deal (it’s the newer, valid one.)

When a soft fork is implemented, there has to be a “majority vote” on whether to accept it into the established fold. If not, the new soft fork fails, and the rest of the chain simply goes on it with its life with no interruption.
Hard-and-soft forking can cause all kinds of unintended consequences. When members of the Ethereum community rejected a hard-fork change and decided to keep going with the non-forked version of Ethereum, that old-school system was renamed Ethereum Classic.

When Bitcoin hard-forked in order to add more functionality, a portion of the Bitcoin Cash community was left behind and was cut off from the rest of the network.

The Current View of Crypto

Bloomberg report stated that Bitcoin approached its highest valuation since 2017.

Dead Coins lists 1,050 digital currencies and initial coin offerings (ICO) as either “deceased.” Coinopsy catalogues cryptocurrency lists of more than 1,700 coins as nearly worthless.

It’s possible that a good number of those failed cryptos were scams, and the authentic, true-quality systems remain in place.

Furthermore, from a perception perspective, Bitcoin and other crypto have recently come under fire for their ability to be involved in illegal transactions, thefts, and scams. That’s just one of the reasons that investing in the list of cryptocurrencies out there still carries significant risk. Crypto has also been suspected as being a part of an economic bubble that may still pop.

The Takeaway

While Bitcoin launched a new asset class little more than a decade ago, today there are many different cryptocurrencies for investors to learn about and invest in.

If your curiosity about cryptocurrency is fueled by a desire to start investing, SoFi Invest® can be a great place to start. SoFi members can manage crypto investments in the SoFi app, with the peace of mind of knowing their crypto is in a secure platform.

Find out how SoFi Invest can help you with your investment goals.


SoFi Invest®
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . The umbrella term “SoFi Invest” refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC Registered Investment Advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Digital Assets—The Digital Assets platform is owned by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, http://www.sofi.com/legal.

Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments.
Third Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
SOIN19040

The post Understanding The Different Types of Cryptocurrency appeared first on SoFi.

Source: sofi.com