A flexible spending account (FSA) can be categorized as a savings account. It helps the owner get certain tax benefits. Sometimes also referred to as flexible spending arrangements, FSAs are helpful for health and dental care reimbursements, childcare, or care expenses for a dependent adult. But to get the best out of these, it is essential to learn about potential pitfalls. Here are some of the common mistakes to avoid with FSA. Assuming one can take the FSA with them after quitting a job FSAs work this way: An employee contributes a part of their salary to the fund, and the employer contributes the rest. Therefore, the FSA money stays with the employer once an employee quits a job. Hence, it is usually recommended to use up any pending healthcare expenses when one is planning to leave an employer. For instance, one can fill a prescription or buy eligible OTC products that they may need in the future by using the remaining FSA funds before they quit the job. Not getting to know what the FSA will pay or not pay for Most people are not aware which services and products come under eligible expenses for an FSA. For example, some may assume that gym memberships or insurance premiums can be paid for with a flexible spending account.

Most experts believe that a certificate of deposit (CD) is a safe and secure investment option that can provide lucrative returns based on the chosen bank. A CD is a type of savings account offered by banks or credit unions, wherein the invested money is parked for a specified period. Investors might incur penalties if they prematurely withdraw from the account. Moreover, avoiding certain mistakes when opening a CD can help one reap significant returns. Not knowing the types of CDs Most individuals believe that all CDs levy penalties on investors in case of premature withdrawals. While the standard CDs result in penalties for early withdrawals, some other ones, called no-penalty CDs, do not charge penalties if investors withdraw from the account before completion of the lock-in period. Moreover, the lock-in period for these no-penalty CDs is usually no longer than one year. However, it is important to check the differences in interest rates between standard and no-penalty CDs and opt for one accordingly. Withdrawing prematurely Withdrawing one’s funds prematurely from standard CDs can prevent one from reaping the benefits of lucrative returns in the long run. For instance, in many cases, one may be charged three months’ worth of interest in case of withdrawal before completion of one year.

Donating to charities is a meaningful way for individuals to contribute to society and gain personal benefits. Unbeknownst to many, charitable contributions made in the country make an individual eligible for tax advantages, creating a win-win scenario. Contributions like cash donations, non-cash donations like clothing or household items, stocks, etc., can lead to tax benefits. Explore some tax-deductible charitable gifts and donations below to understand how to make a positive impact while enjoying financial advantages. Cash donations Cash donations are one of the simplest ways to contribute to charitable causes and get tax benefits. Cash donations can be made in various ways, including checks, credit cards, or through payroll deductions made by one’s employer. If one is donating cash to qualified public charities, it allows them a tax deduction of up to 60% of their adjusted gross income (AGI) in a year. Furthermore, making cash donations to private foundations allows individuals a tax deduction of up to 30% of their AGI. To claim tax deductions, one must keep records of their donations, such as bank statements, canceled checks, or receipts and acknowledgment letters from the charity. Non-cash donations Besides cash, donating goods such as clothing, furniture, or household items can also yield tax benefits.

Planning one’s own funeral can be challenging and very uncomfortable. Yet, preparing financially for this inevitable event is essential. It alleviates the burden on one’s family and adds to their peace of mind. Getting a burial insurance policy is one way to meet the costs associated with the funeral, burial, and other end-of-life expenses. Read on to learn about the types of burial insurance, the coverages included, and the factors to consider when signing up. Types of burial insurance There are three popular types of this insurance plan: Simplified issue life insurance Individuals do not need to appear for a detailed health examination when applying for this plan. However, they would still need to answer a few health-related questions. The insurance company may not accept one’s application if they have pre-existing health issues or participate in high-risk activities that could be life-threatening. Still, this insurance type is sought-after because of swift approvals and relatively higher coverage amounts. Guaranteed issue life insurance This plan neither requires applicants to answer health-related questions nor appear for a health examination. If the applicant is between 50 and 85, they will likely be approved. However, this policy has a waiting period. Beneficiaries may not receive the full sum assured if the insured passes away due to natural causes during this period.

Scammers are getting more sophisticated with their scams, thanks to tech innovations and well-designed websites. It has become easier for them to manipulate their targets through fast money-making schemes. Innocent people are not only duped out of their money but also end up sharing their personal and confidential information that can be used against them. Here are a few popular types of scams that people should not fall prey to: 1. Work-from-home scams In 2022 alone, almost 100,000 people across the country were victims of job-related scams. On average, each individual lost up to $200. One such scam is the work-from-home one that involves people receiving emails, text messages, or advertisements about “online jobs” available. In most cases, these job openings are bait for unsuspecting people who are looking for employment. When people click on the link to apply for these vacancies, they are asked to provide personal information and money for the recruitment process. Once people make the payment and give away their personal information, scammers dupe them and escape with their money. Three common types of work-from-home scams are identity theft, financial scams, and manipulative scams. In identity theft scams, applicants are made to reveal their personally identifiable information (PII).

Technology allows one to manage finances and make transactions within seconds using one’s phone. But on the flip side, technology makes it easy for people to fall prey to online banking scams. Scammers typically exploit credit and debit card users or people having payment applications on their phones. So, those using online banking should be wary of such scams and tread with caution. Here are some common online banking scams and how to avoid them. Phishing scams Phishing is when scammers send text messages and emails to individuals, persuading them to share their personal details. Such details may include passwords, account numbers, one-time passwords, etc. With such information, they access one’s email accounts and bank accounts and take away their money. Sometimes, these messages or emails may also ask one to click on a link provided to complete a certain action. The person’s account is hacked the moment this link is opened. So, one should never disclose personal information over text message or email, even if the sender appears genuine. If it seems like a bank-generated message, it is best to call up or visit the nearest bank branch and check with them if they had actually sent such a message.

Truckers drive thousands of kilometers every month to supply freight across cities and towns, but delayed payments can seriously hamper their productivity. Freight bill factoring takes invoices for the loads that truckers supply and pays them right away, so that they don’t have to wait for their payouts. Though the process is highly effective, frauds relating to freight bill factoring have also become common. So, here are some lesser-known facts about freight bill factoring frauds: Submitting fake invoices Software programs generating invoices may not always have filters to differentiate genuine invoices from fake ones. So, there have been cases where a fake invoice quoting a much higher amount than what is payable has been passed on to invoice factoring companies. Such activities become even more difficult to track if the fake invoice is from a regular client. For this reason, employees in freight bill factoring companies should closely monitor the invoices through a standard process to avoid such illicit activities. Sending invoices before the freight is supplied If truckers send in their invoices before the freight is delivered, there is no guarantee that they will supply the freight to the destination. Invoicing companies should have strict protocols that prevent truckers from sending in paperwork before the freight is delivered to the locations.

Buy now, pay later (BNPL) apps help save money. People often use these apps to buy expensive products while paying for them later in smaller installments. Since there are many BNPL apps out there, finding one is easy. However, individuals must pick the right option for the best benefits in the long term. Those who find it hard to decide can consider these five most popular apps to save money. Affirm With numerous BNPL plans, Affirm is a top choice among those looking to save big. Its standard pay-in-four plan with zero interest is particularly popular among shoppers. Aside from this, monthly plans such as three-, six-, 12-, and 60-month repayment plans are also available. All of these have interest rates ranging from 0% to 36% APR. Besides, the app has partnerships with some of the most significant online and offline retailers, which makes it more attractive to consumers. The best part is that one does not have to pay fees to use Affirm! Sezzle Sezzle is great for those looking for BNPL apps that offer flexible payment plans. It lets customers push payments and get two extra weeks to pay back. Moreover, the first reschedule for every order costs practically $0.