The information he wanted, which included my annual income, my mortgage amount and interest rate, and how much I had in savings, had nothing to do with the work I was providing as a writer; rather, he wanted to use it for his own purposes.

He told me I had a responsibility, as a personal finance writer and editor, to be transparent. If I didn’t share those details, he’d use his investigative journalism resources and contacts to find it anyway.

Needless to say, I terminated that relationship and never looked back.

Firing a client isn’t always as clear-cut as that experience. Often, it’s hard to tell when it’s time to fire a client. And when you decide it is, it’s a difficult conversation to have. One that most freelancers would avoid.

However, if you approach firing a client professionally and courteously, you can protect your professional reputation and still get paid.

Signs It’s Time to Fire a Client

Sometimes it’s difficult to know when to let a client go. Maybe you’re quitting freelancing for a full-time job. Maybe you just want to reduce your workload to spend time on other hobbies and pursuits.

Sometimes you just want to stop working together, but you’re worried about losing money or risking them badmouthing you to other people.

It’s not always obvious when it’s time to fire a client, but there are some warning signs to consider.

• Scope creep. This happens when a client incrementally increases the amount of work, regardless of how the project was outlined in your contract, without increasing your pay. Scope creep is one of the biggest problems in the client/freelancer relationship, and is a primary cause for terminating contracts. If you’ve asked for a rate increase due to scope creep and were denied, it may be time to let go.
• Time-consuming. Sometimes you might wind up taking on a client who takes up more time than you allotted or planned. This could be for a variety of reasons including scope creep, constant emails or texts, or unnecessary phone calls. If this happens frequently, it might be time to consider letting the client go.
• Lack of respect for boundaries. A client should respect limits you put on the relationship, whether that’s communicating with you only during your established working hours, only asking you to perform tasks you’re comfortable with, or not sharing excessively personal details. If you find they’re crossing a line, you probably need to end the project.
• Poor communication. Without clear communication, a freelance project can’t succeed. If you have a client who frequently changes their mind about what they want and doesn’t tell you, fails to answer your questions directly, or disappears for days at a time with no contact, it’s likely indicative of a larger problem.
• Chronically missing deadlines. A key part of effective freelancing relationships is both parties meeting deadlines. If your client fails to provide you with documents but still insists on the same deadline, or fails to pay you on time, it’s best to terminate the relationship. Someone who doesn’t respect your time isn’t worthy of it.
• Ignores all recommendations. Depending on the nature of your freelancing project, you might find yourself making strategic recommendations to the client. If they constantly question your suggestions, blatantly ignore them, or insist that what you’ve suggested is wrong, that client might not be worth keeping around.
• Makes unreasonable demands. Unlike the other warning signs, this is one you can generally pick up on in the beginning stages of a project. If a client wants a 100,000-word book edited in two days or a house built in a week, you’ll know this upfront and can say no before you even get started. But sometimes clients start off reasonable and progressively increase their demands. When those demands become unreasonable, whether it’s setting impossible-to-meet revised deadlines or wanting you to offer a discount, it’s probably time to fire them.

Depending on the client, you might be able to fix most of the problems on this list without ending the relationship. Sometimes you just have to stand up for yourself and assert your boundaries.

However, there are three circumstances in which you should almost always fire a client immediately: if they’re abusive, sexually harassing you, or asking you to do something illegal, unethical, or potentially harmful to another person or business.

The long-term consequences and harm done by abuse, harassment, and breaking the law aren’t worth it.

Related: How to Negotiate Your Starting Salary

Questions to Ask Yourself Before Firing a Client

If you’ve established that there’s cause to fire your client, you should have an honest conversation with yourself about why, how, and any potential consequences to terminating your professional relationship.

Some questions to ask include:

• Why am I firing this client?
• How will this impact my business financially?
• How will this impact my business’s reputation?
• In what ways will this impact the client?
• Are there any legal consequences? Do I need to consult a lawyer first?
• Are there steps I can take to fix the relationship?
• Can I have an open conversation with the client, revise the contract, raise my rates, or establish stricter boundaries?

Make sure you thoroughly answer these questions. Your responses responses will inform how you approach your client. It’s also a way to work through your concerns about firing them as well as provide a foundation for your termination letter.

If you have a mastermind group, partner, or friend in the same business, talk through the questions with them as well. They might provide a perspective you hadn’t thought about or give advice on what to do next.

You might even find that, after answering these questions and talking them through with others, you can approach your client with an open and honest conversation and implement some solutions without having to fire them.

Related: What to Do When You Hate Your Job and Want to Quit

6 Tips for Professionally Firing a Client

If you’ve tried to fix the freelancer/client relationship and nothing has changed, or you’ve decided the relationship isn’t worth salvaging, you need to fire your client professionally. You don’t want to burn any bridges, and you still want to get paid.

To make sure that happens, here are a few steps to follow.

1. Set a meeting time and method.

Once you’ve made up your mind to fire a client, it’s best to get an appointment with them on your calendar as soon as possible so you don’t lose your nerve.

If you’re going to meet with them face to face, make it somewhere neutral and quiet. Your office or theirs is a good choice, but if that’s not an option, you can always try a public library, co-working space, or another public location that offers meeting rooms.

For online conversations, make sure you have a reliable internet connection and your laptop or phone is fully charged. That way your connection doesn’t go out in the middle of the conversation.

If a face-to-face meeting isn’t possible, you can terminate your client relationship via email. Before sending the message, take some time to proofread it. Make sure it’s free from spelling errors, ambiguous statements, and emotionally-charged language. You can also send it to a friend beforehand to see if they agree with the tone and content.

While it might make you feel better to say exactly how you feel, once it’s been received in writing, you can’t take it back.

Related: How to Maximize Your Productivity and Increase Your Earnings as a Freelancer

2. Create a plan and timeline.

Just like you would when quitting your job, give the client a detailed plan for ending the relationship. Spell out details including:

• Revised timeline for project completion
• Final payment schedule
• Securing a reference or recommendation

Out of professional courtesy, you can work with your client to formulate a plan that benefits both of you, but it’s a good idea to have your details worked out ahead of time. For instance, if you want to end the project in two weeks and get paid one week after submitting your final deliverable, bring that timeline to the meeting.

Even if your client doesn’t agree with your timeframe, it gives you a starting point for negotiations.

It also shows that you’re the kind of freelancer who respects your clients enough not to quit in the middle of a project. Bethany McCamish, freelance writer and owner at Bethany Works LLC, makes sure to see her contracts through until the end.

“Contracts that are ongoing (like writing work) are a bit different and can be ended at any time by either the client or myself, but I always make sure to complete the assigned articles first,” she said.

Seeing a contract through to the end helps protect your professional reputation, and you might even be able to secure a good reference from your former client.

Related: 5 Steps to Sell Your Services Online and Fill Your Freelance Schedule

3. Make it clear it’s not personal.

Even if you’re firing a client because you can’t stand them or working with them feels immoral, you want to make sure you refrain from telling them that. You want to communicate that the reasons you’re terminating the relationship are purely professional; that it’s a business decision, not a personal one.

Some reasons you can give:

• You’re raising rates
• You’re no longer providing that service
• They’ve violated the terms of your contract
• You haven’t been paid for any work

Freelance writer and best-selling author Emily Guy Birken uses a creative strategy when she lets a client go. Rather than completely quitting, she raises her rates.

“I choose an amount that would make it worthwhile for me to keep working under the same conditions, but I generally suspect that my new rate will deter the client from asking me to take on more work,” she said.

This puts it in the client’s hands whether or not they want to keep working with her, and she’s typically found that the ones she’d like to fire are the ones who don’t accept her rate increase.

While you generally want to let the client know this is a business decision, in cases of abuse or harassment, if you feel comfortable, you should address this directly with the client. Tell them that their behavior is unacceptable and won’t be tolerated, and you’re ending the project as a result.

Related: How to Ask for a Raise: The Advice No One Ever Gave You

4. Reach out to other freelancers.

When you decide to fire a client, do your due diligence and reach out to your network to see if there are any other freelancers who might be willing to take them on.

This frequently happens in a Facebook group I belong to. When one person can’t work for a client for whatever reason — they don’t have time in their schedule, the subject matter is beyond their expertise, the pay is too low — they present the opportunity to the rest of the group. Those who are interested let the original freelancer know, and that person brings the list of options to the client.

Presenting options to your clients makes it feel like they’re not being hung out to dry, and that they’ll have someone to complete the unfinished work or assist with future projects. It shows that you care about your clients and are willing to go the extra mile to help them, even when you’re no longer under contract.

It also helps your fellow freelancers, as McCamish found. “I think it’s essential as a freelancer to pass on work and help out my colleagues this way,” she said.

Paying it forward is a great way to set yourself apart and ensure that one day, someone in a similar position might do the same for you.

Remember, if a client is particularly challenging, and you can’t in good faith recommend them to someone else, don’t. You don’t want to compromise your relationships with others in your network over one bad client.

5. Write a script.

Even if you think you’ll never need to fire a client, it’s a good idea to have a script on hand just in case. There might be that one situation or project you just can’t do, and you’ll need to let the client know.

A good format for your termination script starts and ends your letter with positives and keeps the negative information — the reason you’re ending the professional relationship – in the middle.

McCamish follows this format and says it’s helped preserve her professional relationships.

“Whenever I ‘fire’ a client…I will always thank them for their business and personalize exactly how they helped me grow,” she said. “Then I give the reason for leaving. And sandwich this again with another thank you/how we can stay connected.”

Here’s a sample script that follows this format:

[Name],

Thanks for meeting with me today. While I’ve appreciated the opportunity to work with you, I’ve decided that as of [date], I will no longer be able to work on this project.

After evaluating my goals, I have decided to take my business in a different direction, with a focus on new services and more work-life balance.

You can expect me to finish all the outstanding work, and I’m happy to connect you with other freelancers who might be a better fit for your needs and budget.

If you’d like, we can schedule an additional time to outline a plan going forward, including deciding which deliverables are a priority to complete and revising the payment schedule.

When using a script, it should be concise, direct, and respectful. Tailor it to your specific client and circumstances, taking care to not just copy and paste in an email.

You might also want to create different scripts for the various reasons you might fire a client, whether it’s personal reasons, raising your rates, changing the scope of your services, or something specific to your industry.

6. Trust your instincts.

Firing a client is never easy. But you know what you’re willing to deal with, and how much someone needs to pay you to put up with increasing demands or unreasonable expectations. If you’ve reached a point in your client relationship that it’s become toxic to you, and you can’t handle it anymore, it’s time to fire the client.

Although you might question your decision now, over time you’ll realize letting this client go was best for your business, your mental health, and your self-esteem.

It’s OK to Fire a Client

Whether it’s for financial reasons, worried that they’ll never find another client, or needing to build a portfolio, many freelancers feel that they need to keep working with clients who are difficult, unreasonable, or even abusive.

But that’s not the case.

If you do quality work, are professional and reliable, and have reasonable rates, there will be clients who want to use your services. And if you need to fire a client at some point, and do it respectfully, timely, and thoughtfully, it shouldn’t hurt you in the long run.

The post How to Fire a Client: 6 Tips for a Polite Breakup (with Script) appeared first on DollarSprout.

While big-box stores and well-known brands have managed to survive, it’s been particularly challenging for traditionally in-person service businesses. After all, how do you provide personal training or therapy or dog grooming online? And how do you earn money doing it?

It seems challenging, but there are steps you can follow to move your offline business online.

Why You Should Have an Online Plan for Your Offline Business

Having an online plan for your business isn’t necessary, but it can provide a few things:

• Visibility. When you’re providing services online, it makes it easier for potential clients to find and connect with you.
• Marketing. Sharing videos or tutorials or posting on social media is free advertising that highlights what you do and offer.
• Income. Having a business that’s online means that even if you have to close your in-person location, you can still earn money.
• Focus. Moving from offline to online can help you make your business more efficient by narrowing the scope of your services or expanding to include more in-demand, lucrative ones.

Most of all, having a plan makes it easier should you need to move your business online. Like a personal emergency fund, it’s better to have it and not need it than not have one at all.

11 Steps to Take Your In-Person Business Online

If you’re considering moving your offline business online, you might be unsure of what to do if you’ve never worked online before. These steps offer a framework for creating an online business plan and strategy.

1. Evaluate your clients’ needs.

When you open any business, you need to first determine what services you’re providing. Moving your in-person business online is no different. You need to evaluate what you offer and how you can continue to meet your clients’ needs.

The first thing to consider is your most valuable, most in-demand services. Not just the biggest income-generating ones (although you do want to make sure you include those), but the most unique ones that make people choose you over others.

If you’re a baker, it could be your gluten-free cupcakes. If you’re a hairstylist, it could be your highlighting skills. Whatever you’re known for, you need to figure out how to offer it online.

The second thing to consider is what your clients are asking for. What problem do you solve for them? When they come into your office, store, or studio, what do they most want or need? Offering what your clients need and ask for is the best way to guarantee that they still pay for your services, even if they can’t do it face to face.

Finally, consider the physical resources your clients might or might not have and adjust your offerings based on that. For instance, if you’re a gym owner, your clients might not have equipment like kettlebells or resistance bands at home, and they’ll need exercises they can do without them.

Once you figure out what you’re offering, make sure your clients have an easy way to get in contact with you and schedule appointments if they need to. You can use a scheduling app like Calendly to create a free appointment calendar, or you can have them contact you through email. Try to remove any barriers that might make them rethink making an appointment.

Make sure to have your work calendar synced to your personal calendar — you don’t want to miss any meetings. You also want to make sure you have a system in place to ship or deliver any products.

2. Consider your services.

After figuring out what services you’d like to offer, decide which ones transition best online. For instance, if you’re a dog groomer, you might not be able to groom a dog in person, but you can offer FaceTime calls, coaching your clients through clipping their dog’s nails or brushing their teeth.

That’s what Eric Thompson, tumbling coach and founder/CEO of TumbleChef, LLC, did. He knew that while cheerleaders were away from the gym, they’d still want to work on their tumbling skills, and he knew that he could help them with his one-on-one coaching. So he decided to offer virtual private lessons and virtual clinics, and they’ve become his flagship services.

Regardless of the type of business you own, there are services you can offer online, even if they need to be repackaged. If you’re not sure which ones might work online, make a list of your products or services and see what similar companies are doing. You might find some inspiration for your own business.

Related: 16 Online Business Ideas for Beginners

3. Develop your social media strategy.

Marketing an online business isn’t that much different than marketing your in-person one, but it’s even more essential that you build your online presence. Customers will vet you based on your Facebook page, Instagram profile, website, and how you use them. They’ll look at your number of followers, the kind of content you share, who they know that follows you, and how frequently you share.

You can use Facebook ads to promote your business, but being strategic about your social media profile is just as important. Thompson, who admits he didn’t initially find anything useful about social media, has used it to grow his business, brand, and reputation. He uses analytics to carefully plan what content he shares at what time of day, what hashtags he includes, and he tailors the content so he’s reaching his audience where they are.

“I use Facebook to connect with parents and Instagram to connect with the kids,” he said.

If you don’t have an online presence, you can get started with a simple blog and Facebook page to build one. Make sure what you’re sharing is useful, helpful, and curated for your target audience.

4. Use available technologies.

When moving your offline business online, it’s essential that you think about your clients’ access to technology and Wi-Fi. You want to make sure you’re reaching them not only at a price they can afford but in a way that’s accessible to them.

Although most people have smartphones, they might have unreliable internet service or data limits on their cell phone plans. That might mean you need to conduct more classes, workshops, and events over FaceTime rather than streaming on Facebook or Zoom. You might also need to record your services so people can watch the videos when they can connect to a public Wi-Fi hotspot instead of using it at home.

Lauren Martinez, Director, Events for a large national nonprofit organization, had to take these types of issues into consideration when planning events for her company. She ensures that all speakers for her events can call in rather than use video and have photos or slideshows available in case the presenters have a lag.

If you’re not sure what limitations your clients might have, you can ask. Create a poll on Facebook or Instagram or contact some of your clients individually. You can also talk to other business owners to see if they have any insight.

And remember that what your clients have access to in-person might not be the same as what they have at home, so account for those deficiencies as well. For instance, they might not have professional-grade scissors (for haircuts or pet grooming) or the space to do a long tumbling pass, and you might need to tailor your lessons or services for specific or individual clients.

Related: 12 Practical Ways to Get Free Internet Access at Home and in Public

5. Set your prices.

Any business owner knows how difficult it is to price their services. Price too low and people will think you offer low-quality products (and you won’t earn any money). Price too high and customers might not be able to afford you (and you won’t earn any money). It’s a tricky compromise to earn what you’re worth, charge what clients are willing and able to afford, and turn a profit.

“Setting your online prices can be even trickier,” Thompson said.

When he was setting his prices for his virtual private lessons, he had to take his clients’ loss of income into account. He also had to consider the fact that what he’s providing from his kitchen is different than what he’d provide in the gym. It didn’t seem fair to charge the same.

After consulting with his business manager and the other coaches in his mastermind group, he reduced his rate. He set a fair and affordable price and also strategically offers some of his coaching for free on his Facebook and Instagram pages.

“Coaches need to have more than one way to teach a skill,” he said. “So I offer one way for free and if gym owners or parents want something else, they can contact me for a paid coaching session.”

This is a way for him to reach smaller gyms and lower-income families but still provide the high-quality coaching he’s known for.

When setting your prices, take all factors into consideration, including if what you’re providing online is different than what you’re providing offline. And if you need to, give something away for free. It doesn’t have to be a product; you can record a short tutorial or video or do a Facebook Live. Anything that gives potential clients a taste of what you’re offering.

Related: 37 Small Scale Business Ideas for Beginner Entrepreneurs

6. Be creative with your services and hours.

If you own a gym or dance studio, you might be used to offering different classes at varying times. Transitioning your business online is no different. To effectively reach and service the most clients possible, you need to offer your classes at varying times. Although noon on Tuesdays might be best for you, it might not work for your customers.

Martinez agrees with this, and finds it effective.

“I worked with a team who had an event at 5:30 p.m. because someone suggested that it was after the workday, but before people were totally signed off and away from their computers, and it worked well,” she said.

The great part about this is now you can get creative with your schedule. Instead of only offering after-work and after-school hours, you can incorporate some early morning or middle-of-the-day classes. Play around with scheduling until you find what works for you and your clients, but remember to keep them updated with any changes.

Related: How This Entrepreneur Created a Business From a Unique Service

7. Look for new services you can provide.

Moving your business online is the perfect time to test new ideas. It’s low-cost and low-risk, and if it doesn’t work, you can always remove it. If it does work, you’ve added new services to keep your clients interested.

You can consider doing things like opening an online store with merchandise you already had in stock, creating printables, offering one-on-one coaching, or offering new classes or products you’ve been wanting to but were hesitant due to attendance or interest concerns.

Remember that you can always include your customers in this process. You can ask them what they might want you to offer, or if they’d be interested in a new class or product. You might find there’s more interest than you thought, or they might give you an idea you hadn’t thought of.

Depending on the type of business you have, you might also want to consider partnering with brands and other companies for affiliate sales or cross-promotions as long as the products you’re promoting are relevant and beneficial to your clients.

Related: One Expert’s Advice on Why Weird Side Hustles Work (and How to Find One)

8. Use other skills you have.

Unfortunately, it might not be possible to move your offline business entirely online. If that’s the case, you might need to shift gears, and try some new things using skills you already have.

Let’s say you’re a show director or work in theater. Although you won’t be able to direct any plays or musicals, you can still give voice, instrument, or acting lessons, help with industry-specific resumes, or edit audition videos. You might be able to run dance classes, improv workshops, or try your hand at directing scripted YouTube or Instagram Live videos.

There are other in-demand skills you can use to generate income as well. If you’re fluent in another language, you can work as an interpreter or tutor kids online. If you want to use your organizational skills, consider becoming a virtual assistant. Or maybe you can put your acting skills to use and do some voiceover work.

Write down all your skills and abilities and see how you can use those to fill in the income gap until you can get back to business.

9. Play to your strengths.

Chances are your business has strengths you can use to seamlessly move from in-person to online. Your biggest strength? Your current clients.

If you’ve built up customer loyalty, they’ll follow you whether you’re online or off. They’ll take your classes, sign up for your clinics, and even promote what you’re offering. They’ll keep their appointment, continue to pay their dues or membership fees, and buy your products as long as you continue to take care of them.

Another strength you can tap into is your ability to challenge yourself and your willingness to try new ideas. For Thompson, that means learning new skills and knowledge to expand not only his brand but what services he can offer his clients.

For Martinez, that means looking at new and fresh ways to put on events that still meet the event’s objective, make sponsors happy, and make attendees or honorees feel engaged and included.

Don’t forget about the flexibility that running an online business offers. You can use that to reach clients outside of your local area, try new ways of connecting with clients, and change your hours of operation.

It might be difficult to find your strengths, but they’re there. Once you recognize them, it’ll make it that much easier to move your business online.

10. Acknowledge any challenges.

You might already know that money or access to technology and the internet might be an issue for your clients, but before you transition your offline business online, spend some time thinking about other challenges your clients might face.

Child care can be a major concern. If the majority of your clients are parents, it might be difficult for them to find child care while they take your class or workshop. And if you’re a parent, you might face the same challenge.

Another challenge is space for inventory. If you sell products like clothes, soap, or books, you might not have a place to store the items, and you might need to either reduce your inventory or move to an online dropshipping store. That might come with an added expense or loss of income for you.

It can also be challenging to host events quickly and cheaply. But Martinez cautions against compromising for ease.

“Since virtual events can be cheaper to produce, there are a lot of ideas floating around for what should be done and the desire to execute right away,” she said. “It’s a challenge to really hone in on objectives to make sure you are delivering quality to your audience, rather than just having an event because it seems easy.”

Whatever your business is, think about potential problems that might arise as you move your business online. Write them down and try to come up with a possible solution. You might not be able to solve all your problems, but you should be able to offset most of them.

11. Make it sustainable.

Even when you’re able to open your offline business again, consider keeping some of your online services available to clients, especially if you’ve acquired some who don’t live locally. You want to make sure that they still have access.

To make your online business sustainable, you can do a few things:

• Set aside certain hours a week just for online clients. For instance, if you’re a personal trainer, you can use Wednesday evenings for accountability and planning sessions with those clients.
• Continue to provide virtual access. Using the personal training example, provide a Zoom link to your virtual clients so they can “join” the in-person strength training classes.
• Create a community. Again, using the personal training example, establish a Facebook group where both in-person and online clients can talk, ask questions, and you can connect with them through live Q&A sessions and posting workouts and fitness challenges.
• Stay in contact. You can do this through newsletters, a YouTube channel, a podcast — anything that helps keep clients connected to you and your business. Adding that personal touch makes you stand out and might even connect you to new clients or customers.

This is your chance to be creative with your long-term strategic planning. If you’re unsure how to incorporate online services into your business plan, consider forming a mastermind with other business owners or joining an online networking group.

The idea behind making the online component of your business sustainable is two-fold: one, it provides additional income even when your in-person services are operational again, and two, it provides you with an immediate solution should your offline business need to close.

Online Services Can Turn into Passive Income

If you’ve spent time transitioning your business online only to find that you’re able to return to providing in-person services, you might think it was all a waste of time. It’s not.

You can use what you’ve done to create passive income or a lucrative side hustle.

For instance, if you provide live training on dog grooming, record yourself and upload the video to Teachable to sell as a class. If you’re hosting writing workshops, consider creating a guided workbook or writer’s journal you can sell on Etsy or your own Shopify store. And if you’re doing virtual personal training, you can create and sell meal and exercise plans based on ones you’ve made for your clients.

You can be as creative as you like when developing your passive income stream. And since you’ve already done the work, it’s easy to implement.

Related: 19 Digital Products You Can Sell Online to Generate Passive Income

The post How to Take Your Brick-and-Mortar Business Online appeared first on DollarSprout.

The kind that works for any occasion. That’s how I feel about my favorite lightweight cardigan. It’s a great layering piece in the winter. I can wear it over sleeveless shirts in the summer. If I sit in some mustard at my boyfriend’s family barbecue, I can tie it around my waist and no one’s the wiser.

It’s a cold-weather helper, a saver from air conditioning, and, when need be, a stain cover-upper all in one.

When it comes to personal finance, Empower is the only app that matches in versatility.

Empower Review at a Glance

Empower helps you automate your savings goals, budget with ease, and analyzes your finances to provide personalized recommendations for your situation.

Try Empower

$8/mo Price 14-day free trial

DollarSprout Rating Tailored recommendations

The Empower app helps you manage your money using automatic saving, spending tracking, and easy subscription cancellation. The app also provides personalized recommendations to help you save more and optimize your finances.

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Pros

• 14-day free trial
• Interest Checking Account
• Automatically adjusts savings withdrawals
• No transaction or overdraft fees
• Personalized recommendations
• Automatic monitoring of bank accounts

Cons

• Can’t deposit cash into your accounts
• Monthly subscription fee
• No traditional banking services like mortgages or credit cards

What Is Empower and How Does It Work?

Empower is an AI-focused, comprehensive money management app that began in 2016. It provides a secure, central place to manage all facets of your money: your budget, savings, and checking account. The app’s core features include:

• Automatic saving
• Interest Checking
• Budget and spending tracking
• Personalized financial recommendations

The Empower app is like a buffet — you get to choose and use the features that look good to you. For example, if you want to use the AutoSave feature but not the Interest Checking, then just tell the app which checking account to transfer your savings from.

Is Empower Legit?

Empower Deposits are insured by nbkc bank, Member FDIC up to $250,000¹.

Although there are no user reviews on TrustPilot, it has a 4.7 rating in the Apple App Store and a 4.4 rating in Google Play. They are responsive to customer complaints, which generally involve technical issues rather than money-management or banking-related complaints.

Empower has been featured in the New York Times, Forbes, and Business Insider. The app has also won “Best New App” from Time and was awarded “New Apps We Love” by Apple.

Empower Money Management Features

Let’s take a deep dive into Empower four core features: Automatic Savings, budget tracking, smart recommendations, and Interest Checking.

Automatic Savings

Empower’s Automatic Savings feature is similar to other finance apps. You’ll link a bank account, typically your primary checking, to your Empower Account.

Tell the app how much you want to save each week, and it’ll make automatic transfers to your Empower AutoSave Account.

Most banks offer the ability to set up automatic transfers from a checking to savings account. What makes Empower unique is that it analyzes your checking account balance daily and saves accordingly.

They’ll make up to four transfers per week in an attempt to hit your savings goal. If they aren’t able to hit your target savings number in one week, they’ll try to set aside more money the following week to catch up.

The downside to this feature is that you can only set one weekly savings goal. So if you’re saving for several things, like an emergency fund, vacation, and wedding, then you’ll need to figure out your weekly savings goal for each, add them up, then tell Empower your total number.

Since all your savings go into the same account, you’ll need to track your progress for each one individually. A spreadsheet or pen and paper can accomplish the job.

Because of this, Empower’s AutoSave feature works best for one goal at a time. For example, if you want to save a $1,500 emergency fund this year, you can set your weekly goal at $29 and let Empower do the heavy lifting.

Related: The Best High-Yield Online Saving Accounts

Budget Tracking

There are lots of budgeting apps on the market. Where Empower stands out is that it gives spending limit suggestions for your budget categories based on your income and expenses.

You can create your own spending categories or choose from their list. Set your spending limits by week or month. Empower will send you alerts to let you know where you’re under and if any categories are at risk of going over budget.

At the end of the month, you’ll get an expense breakdown you can use to make better, more empowered spending decisions going forward.

Smart Recommendations

Empower’s personalized recommendations are my favorite feature of the app.

Their software analyzes your income and expenses to detect patterns and trends. If the app realizes you’ve missed a payment or been charged more than normal, it’ll send you a notification.

You’ll also receive alerts for things like bank fees, bill increases, missed payments, and if your credit utilization is getting too high.

These features aren’t unique to Empower. But it’s a powerful combination considering the other aspects of the app.

Interest Checking

Again, there are plenty of banks and apps that offer interest checking accounts. But Empower’s stands out in a few ways.

Notably, there are no overdraft fees, account minimums, or card replacement fees. If you lose your debit card, you can freeze it and order a new one straight from the app, no customer service call required.

It also offers the same features as many other interest checking accounts:

• 0.01% APY¹
• Empower Deposits are insured by nbkc bank, Member FDIC up to $250,000¹
• Visa zero liability insurance
• 1% foreign transaction fee²
• Unlimited transfers

With Visa zero liability insurance, you’re protected in the event your card is lost or stolen, and you won’t be held responsible for unauthorized charges made to your account.

Empower’s Money Personality Quiz

Working in conjunction with financial experts, authors, and a psychologist, Empower created a quiz to help you identify your unique money personality. The goal of the quiz is to help you better understand and improve your relationship with money.

After you answer the short questionnaire, they provide you with a summary of your money personality, what childhood experiences likely contributed to it, and an explanation of how their features can help you take charge of your finances in a way that makes sense for you.

For instance, my money personality came back as Stockpiler. According to the results, their high interest rates and alerts will help me feel less anxious about my spending.

People who fall into the Celebrity personality, on the other hand, will particularly appreciate the easy budget tracking to help stay on course and avoid overspending.

How Much Does Empower Cost?

New users can try out the Empower app free for 14 days. After that, you’ll pay $8 a month for access to all of the app’s features, including autosave, and smart recommendations.

This is on par with apps that offer less robust features than Empower. If you decide to stick with it after your first 14 days, the app will automatically transfer the payment from your checking account each month.

Alternatives to Empower

There are several apps like Empower you can try. However, most of them only offer a few of the same features; they aren’t as comprehensive in their services.

You Need a Budget

You Need a Budget (YNAB) is a popular zero-based budgeting.

As the name implies, this app focuses solely on budgeting. Because of this, its budgeting features are more robust than Empower’s. Users create a proactive spending plan and categorize expenses manually throughout the month.

YNAB lacks many of the other features Empower has, like checking and savings accounts, and automatic savings.

Like Empower, you have to pay to use their services after the free trial ends. The cost is $84 a year, or $11.99 for a month-to-month subscription.

Mint

Mint is a free alternative to Empower. The app lets you view all of your accounts and balances in one place, including your credit score, so you get a comprehensive picture of your finances. It also tracks your purchases, and categorizes them for you, and provides tips on where you can cut back and save.

It also tracks your purchases, categorizes them for you, and provides suggestions on where you could save.

However, Mint doesn’t offer services to negotiate with providers on your behalf, you can only budget your money one month at a time, and since the app is free, you’ll see ads from their sponsors and partner companies.

Qapital

Qapital offers similar services to Empower: automated savings, a central place to check all of your accounts, a debit card, and no amount minimums. This app also comes with additional automated savings features, including the ability to create saving rules and save for multiple goals at once.

One of the primary differences between these apps is that Qapital doesn’t offer personalized recommendations. However, you can set alerts to help keep your spending on track.

The cost ranges from $3 to $12 per month depending on which plan you choose. 

Traditional Banks

Many traditional banks are starting to incorporate some of Empower’s key features. They have bill pay services, free alerts, automatic savings, and easy-to-use apps.

You typically won’t receive the same kind of interest rates, and banks often charge high overdraft fees, teller fees, and fees for using other banks’ ATMs. Some banks waive these charges if you keep a minimum balance in your account.

Empower App Review Summary

Though many apps and banks offer similar features, Empower is one of the few that combines so many powerful elements into a single platform. Its most standout features are the smart recommendations and spending limit suggestions.

If you’re looking for a smart app that provides tips tailored to your unique situation, then Empower is a solid option.

If you don’t need the personalized recommendations, then you can easily accomplish your savings goals by opening an online checking account, signing up for free alerts, setting up your online bill pay, and creating automatic transfers to your goal savings accounts.

¹ Banking services for new accounts provided by nbkc bank, Member FDIC. 0.01% Annual Percentage Yield (APY) may change at any time. APY as of October 1, 2021. Empower charges an auto-recurring monthly subscription fee of $8 for access to the full suite of money management features offered on the platform. The subscription fee will apply (a) after the 14-day free trial concludes for first-time customers, and (b) immediately for customers returning for a second or subsequent subscription.

² Empower does not charge foreign transaction fees for the use of the Empower Visa Debit Card outside of the US. However, Visa charges a foreign transaction fee of 1%. Empower does not reimburse this 1% transaction fee on foreign ATM transactions or on any other foreign transactions or purchases.

The post Empower App Review 2023: Pros, Cons, and Key Features Explained appeared first on DollarSprout.

What if you want to take control of your debt and figure out how to pay it off? Books, websites, and even personal finance podcasts can help, but many people are turning to debt relief services for assistance. Apart from the catchy radio commercials that promise to get debt collectors off your back, what exactly does debt relief entail?

Debt relief services can be a viable solution for some, but there may be a better option for your situation.

What Is a Debt Relief Service?

A debt relief service is a third-party organization that works with you and your lenders to reorganize or restructure your debt so you can satisfy your repayment obligations.

These are typically for-profit companies. They generally charge hefty fees for clients to use their services. However, they provide an alternative to bankruptcy, which can sometimes come with much harsher long-term effects.

Types of Debt Relief Services

There are three primary options for debt relief: debt settlement, debt management, and debt consolidation. While they have similar objectives — to help you manage and pay off your debt — they all operate with some slight differences.

Debt settlement

In a debt settlement, you negotiate with your creditors to reduce or eliminate the amount that you owe. This can include balances, interest rates, due dates, and other factors like late fees and over-limit charges. You can work directly with your various creditors to do this or you can use a third-party vendor to negotiate on your behalf.

Pros: Having a third-party negotiate on your behalf makes it more convenient. They handle all communication and payments to your creditors, which is great if you’re not comfortable doing that on your own.

Cons: These providers often charge a monthly fee for their service, and that fee can often be more than you can afford. You might also owe taxes on the canceled debts and your credit might be negatively impacted.

Debt consolidation

With debt consolidation, all of your debts will be combined into one single debt. This is generally accomplished by taking out another loan, usually a personal loan, or transferring your credit card balance to a card with 0% APR. You can do this on your own or through a debt relief company.

Pros: Combining your debts into one payment reduces the number of bills you have to pay. You can also consolidate both secured and unsecured debt, and it might help your credit score in the long run. You can consolidate your debt into one monthly lump sum through personal loans, low-interest loans, or credit card balance transfers.

Cons: If you use a third-party debt consolidation firm, you might have to pay hefty fees. Even though you only have one payment, it might take you longer to pay off this larger balance. In the short-term, it can negatively affect your credit score, and it doesn’t necessarily encourage any behavioral changes that caused the initial debt.

Related: Should You Pay Off Debt or Save Money? Here’s How to Decide

 

 

 

 

 

 

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Debt management

Debt management is an option for working with creditors via a third-party organization to consolidate your unsecured debts, like credit cards or personal loans, into one monthly payment.

Pros: You’ll only have to make one monthly payment at a lower interest rate, and you might be able to pay off your debt faster.

Cons: Not all creditors participate with debt management plans. You’ll need to stay on top of your payment; missing one can forfeit your enrollment, and your credit score will be negatively impacted.

When Should You Use a Debt Relief Service?

If your debt is more than you can handle, getting some relief makes it more manageable. You might wind up paying less in interest or late fees because there’s only one payment to manage.

There’s also the psychological benefit of seeing the balance go down so you feel encouraged to keep making progress. It might free up some money in your budget to apply toward other needs, like your grocery budget or car maintenance.

Not all of your creditors will want to settle your debt. If that’s the case, you’re still obliged to pay the full amount including any interest, late fees, or other charges you might have incurred.

How to Find a Reputable Debt Relief Program

If you’re going to use a debt relief program, it’s important to do your research and pick one that’s reputable, trustworthy, and reliable. You can research sites like TrustPilot or the Better Business Bureau for ratings, reviews, and complaints.

You can also perform a quick Google search with the company’s name to read testimonials and reviews from actual consumers.

Make sure to research things like:

• Does it charge you upfront? According to the Telemarketing Sales Rule_[2], it isn’t allowed to do that.
• If it has advised consumers to stop paying bills. Doing so can put those accounts into collections, further harming your credit score.
• If it promises things that seem too good to be true. It’s good to be optimistic, but not to expect things that aren’t possible.

Make sure you ask lots of questions during your initial assessment. If you don’t get a good feeling about the company, or it exhibits some of the above characteristics, it may not be legit.

Related: 7 Simple Steps to Increase Your Credit Score

Avoid These Debt Relief Options

Even if your debt has become unmanageable, using some of these options can make your financial picture even bleaker.

Borrowing against your home equity. This can compromise the money you’ll get if you need to sell your home and risk foreclosure if you can’t make the payments.

Borrowing against your retirement savings. You risk having to pay taxes on the money if you lose your job and losing extra money in compound interest.

Delaying payment on secured debt to make a payment on an unsecured one. Doing this puts you in a position to lose the collateral on the secured loan. If that collateral is something like a car, you’ve now lost the ability to get to and from work.

Succumbing to pressure from creditors. Don’t give in to what creditors tell you to do. Their job is to get the money owed to them, not to look out for your best interest. Make the payments that you must, and try to work out a deal for the rest.

Avoid borrowing against your future to pay for past mistakes. If you’re still struggling with your debt, there are some debt relief alternatives that can help.

 

 

 

 

 

 

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Alternatives to Debt Relief Programs

If you’ve done your research and you’re still wary of using a debt relief program, there are a few other options to consider.

Credit counseling

Credit counseling is a service provided by nonprofit organizations like the National Foundation for Credit Counseling_[3] to help customers learn to live on a budget, pay down their debts, and improve their overall financial picture. Counselors can also help you organize a debt management plan.

Pros: They’ll help you consolidate your debts, offer a wide range of services including free educational materials, and debt repayment may take less time.

Cons: Credit counseling comes with a fairly high monthly fee. It may be difficult to qualify for their debt management plans depending on the types of debts you have, and your credit cards will be frozen.

Bankruptcy

Unlike the other options, bankruptcy is a legal proceeding that clears all or most of your debts while your creditors and lenders still receive some repayment. You can file either Chapter 7 or Chapter 13 bankruptcy. If you go this route, speak to an attorney before you decide which one to take.

Pros: With bankruptcy, your debts are forgiven and debt collectors can no longer call you to collect on what you owe.

Cons: Not only can it be costly to file bankruptcy, but not all debts can be included. For instance, you typically cannot include student loans in bankruptcy filings.

Bankruptcies stay on your credit report for up to ten years, making it more difficult to obtain other loans and other services like apartment rentals. If you do secure a loan, the interest rates can be substantially higher. And if you file Chapter 7, you can lose your assets, including your house or car.

Negotiate your own debts

Negotiating your own debts means you contact your creditors and lenders and work out a payment arrangement with them. That could mean anything from consolidating balances, lowering interest rates, or offering to pay a lump sum. You can also formulate your own plan to get out of debt using the debt snowball or debt avalanche methods.

Pros: This allows you to take control of your debt situation by creating your own timetable with payment amounts that you can afford. You don’t have to worry about a third party handling your payments or paying it a management fee.

You might be able to maintain a higher credit score, and there will be no marks on your credit report. Because you’re working through this on your own, you’ll still need to address the behaviors that caused the situation in the first place so that you don’t fall back into debt.

Cons: Because you’re doing this on your own, you have no one holding you accountable, making it easier to “cheat” on your plan. As an individual, you might not have some of the authority that a third-party company might have. Therefore, some creditors may be less likely to negotiate with you. It might also take longer, and you’ll still have to remember to make all the different payments each month.

Related: Here’s What People Mean When They Talk About “Good Debt vs. Bad Debt”

Is a Debt Relief Service the Right Choice?

A debt relief program can work, and it may be the right choice depending on your situation, the kinds of debts you have, and if your creditors are willing to negotiate. It also depends on how faithful you stay to your plan. If you’re paying on time every month, not taking on any new debt, and sticking to your budget, then this type of program can be beneficial.

However, lenders don’t have to accept your settlements, and participating in a debt relief program can negatively impact your credit. It might also take you longer to pay off your debt using one of these services, not to mention the high fees many agencies charge.

In some cases, a debt settlement company may encourage you to stop making payments on your debts, which will then show up as delinquent accounts on your credit report.

You have to weigh the pros and cons of using a debt relief program. Remember that if you aren’t comfortable with any of the terms or conditions, there are other ways to get out of debt.

The post What Is a Debt Relief Service? The 3 Types Explained appeared first on DollarSprout.

I use coupons when I remember them, mostly keep to a budget, occasionally participate in no-spend challenges, and have an overall handle on what I’m doing with my money.

Plus, there’s not a whole lot I like to spend money on. Food allergies keep me eating at home, the library has all the books I need, and I’m not interested in fashion.

However, there are a few exceptions: pens, notebooks, lip balm, and all star cheerleading.

For the past seven years, my daughter has been a competitive cheerleader. I don’t want to add up all the money I’ve spent on it because, well, it’s a lot. But even though all star cheer takes up a significant part of my monthly budget, when I sit down and think about it, it’s worth it.

Why Does It Cost So Much?

There’s no one answer to why cheerleading is so expensive, but there are some explanations. You have to pay for uniforms, bows, shoes, travel, tuition, competition fees, practice gear…the list goes on. And that’s just what you’re paying the gym.

Don’t forget about personal expenses, like hair ties, bobby pins, hairspray, makeup, and gas driving to all the places.

There’s also optional stuff like cheer camp, tumbling classes, private lessons, and more. It’s not much taken separately, but it’s a lot when you put it all together. Over the years, I’ve spent anywhere from $5,000-$10,000 in a single full-year season. And there are plenty of parents who spend significantly more than that (although there are some who spend less).

Another reason, and one that’s been talked about at length in the cheer community, is that one company essentially has a monopoly on all star cheer. If you watched Cheer on Netflix, you saw the parents and friends of the Navarro athletes complaining that they couldn’t watch the Daytona competition without paying for it. And that’s completely true.

Thanks to Varsity’s stranglehold on the competitive cheer world, you can’t do anything without paying a fortune. Almost nothing is free, including watching your athlete perform. Because there’s no competition to force them to lower their prices, they can effectively do whatever they want. And they do.

The gyms have to pay, which means the families have to pay.

Related: How to Make a Budget in 7 Easy Steps

There Are Ways to Make Cheer More Affordable

Until some things change, I’ve accepted that this is an expensive sport. Complaining about the cost isn’t going to make the price go down, but there are ways I mitigate it.

Budget. Knowing how much I have to pay each month and putting it as a line item in my budget means I have the money available when I need it. I break it down into tuition, fees, clothes, tumbling, extras, one-day competitions, and two-day competitions. I also make sure to account for end-of-season competitions and start saving for those as soon as each new season begins.

Participate in fundraisers. This isn’t something I take advantage of as much as I should, but the fundraisers do help offset some of the costs.

Be creative. I look for all the possible ways you can save money. For instance, we carpool for practice. I’ve bought used uniforms, paid competition fees in full early to take advantage of pre-payment discounts, used coupons and sales to buy things like socks or hairspray. I’ve shared rooms when I travel and pack snacks and water for inside the venues. There are fees I can’t do anything about, but with a little creativity, I can control some of the costs.

Know my limits. Because I set such a strict budget, I know what extras I can and can’t afford, and I stick to that. I also know that if cheer does become a financial burden, I can do things like move her to a less-costly rec program, stop extra tumbling lessons, or talk to our gym owner about scholarships and sponsorships.

And, of course, there’s always the hope that she gets a paid bid to whatever end-of-season competition we attend. That’s a huge money-saver!

Related: Why a Zero-Based Budget Could Be Your Tool to Financial Freedom

Five Reasons I Pay for All Star Cheer Anyway

Even with the money-saving strategies I employ, it’s still costly. But as long as I can afford it, I’m going to continue to pay for all star cheerleading.

My daughter loves it

To say my child is obsessed with cheerleading is an understatement. She follows cheer the way football or baseball players follow their sport. She knows the rules, the teams (especially the Worlds-level teams), and the cheerlebrities. She’s learning the history of it. She and her best friend even have Cheerleading Worlds pools the way other people have Super Bowl pools.

Not only does she love the sport, but she loves participating in it. Her entire face and demeanor change when she gets to the gym, when she’s talking about competing or her dream of cheering in college, and the excitement when she learns a new stunt or tumbling skill. As a parent, it’s hard to ask for more than that.

The gym is her happy place, her teammates are some of her closest friends, she’s free to be herself, and all of that alone is worth the price.

Soft skills

Developing skills like responsibility, time management, self-confidence, and problem-solving isn’t unique to cheerleading. I think most sports teach them. But with cheerleading, athletes need to learn how to balance homework with practice and conditioning with chores, and how to stand up for themselves when people make fun of you for being a cheerleader.

Those comments teach her patience, tolerance, and self-control. Detention is not an option because someone doesn’t think cheerleading is a sport.

But what they’re really learning is all the skills it takes to function at work, at home, and in society. And they truly do transcend the mat. “I think cheer helps me with group projects in school,” my daughter said. “You have to trust people to do their jobs and you have to learn to work with people you might not get along with.”

It keeps her busy

My daughter is in the gym for roughly six hours each week, more when she’s doing her tumbling program. When the weather is nice, she has to run a mile every week. She also needs to condition. Between what’s required of her from cheer and school (and music lessons), there’s not a whole lot of downtime.

Don’t get me wrong. She still has plenty of time to see her friends, scroll mindlessly through Instagram, and get all of her homework done, but boredom and my daughter don’t mix. Cheer is a way to keep her physically active, off of her phone, and out of trouble.

Relationships

There’s a stereotype that cheerleaders are mean, catty, rude, and overall awful. It makes me furious when I hear that. Mean girls are everywhere, not just in cheer, despite what movies and TV want you to believe.

In our experience, some of the kindest, friendliest, and most accepting kids we’ve met, and some of my daughter’s closest friends, have come into our lives as a result of cheerleading.

These are friends she FaceTimes every single day, even when they’re planning on seeing each other in 20 minutes. These are friends who know her better than anyone, who she can count on, and who she feels completely safe and comfortable around. She can cry to them, laugh with them, and talk to them about anything.

She also participates in a tumbling program with athletes from multiple gyms who perform at varying skill levels. The nicest thing about this program is that everyone is incredibly supportive, encouraging, and it really feels like a family. These are friends who genuinely get excited for her when her team wins or she learns a new tumbling pass.

Jealousy isn’t a part of these friendships, and that’s hard to find. Since they go to different schools or live in different states, she has to work to maintain these friendships. I like that she’s learning that relationships take effort to maintain and nurture. It’s not something that everyone understands.

Her coaches

I believe that all kids need adults in their lives (besides their parents) who encourage, push, and support them. They need adults who look out for their physical and mental well-being and who have a stake in their successes and failures. These adults can come in the form of rabbis, pastors, teachers, grandparents, or neighbors.

For my daughter, those adults are her coaches. We’ve been fortunate enough to have an incredible set of coaches, especially these last two seasons, who love what they do, genuinely care about the kids on and off the mat, and have stood by her through some of the worst moments of her life. For that, I am immensely grateful.

Having coaches who believe in her and are there for her is absolutely priceless.

There’s Something In It for Me, Too

I could go on and keep talking about all the things my daughter gets out of cheer: good sportsmanship, discipline, structure, routine, and so much else. It’s been a complete asset to her life. But between us, I get something out of it, too.

I don’t just mean the ability to curl hair or get glitter off of anything or wash and dry a uniform with a moment’s notice. Or the fact that the business of cheerleading is absolutely fascinating or that I can pull bobby pins out of anywhere or even that I know my way around the greater Baltimore area better than I ever thought I would.

What I get out of being a cheer mom is that it gets me out of the house and socializing with other adults.

I am a pretty serious introvert who prefers reading books and watching true crime documentaries on Netflix. On top of that, I work exclusively from home. I can have groceries delivered, work out in my living room, and my dogs are perfectly content playing in the backyard. There’s no need for me to ever leave my house or even talk to people face-to-face.

In the winter, that’s actually preferable. Pretty ideal, in fact.

However, cheerleading is a winter sport. I have to leave my house. My daughter has practice, competitions, clinics, and various other cheer-related activities she needs to attend. Someone has to take her to those things. That someone is me.

So I use that time to talk to other parents. For someone like me, who’s pretty shy and awkward, having common ground makes it easier to start or stay involved in conversations. We’re all there at some ungodly hour sitting in uncomfortable seats listening to loud music for the same reason — to support our kids.

Being a cheer mom is like being in a sparkly sorority with a secret language that only other cheer parents understand. Instead of a handshake, we have bows and cheer hair and our hearts pound like crazy for two minutes and thirty seconds while our athletes compete. We all gasp when flyers fall, scream when our kids hit zero, and think the tiny and mini teams are just the cutest things ever.

If you’re lucky, like I’ve been, you find parents you can talk with about things other than cheer and you consider them friends.

It’s Not Perfect But It’s Ours

Please don’t misunderstand. All star cheerleading is by no means perfect. Some people feel that it’s just not worth it. It’s cost-prohibitive for many families. Parents can be mean, spiteful, hostile, and uber-competitive, oftentimes worse than the kids. You won’t always fit in at your gym and might end up feeling like an outsider.

It’s incredibly time-consuming, athletes get hurt, teams lose, and you definitely go over budget more often than you’d probably prefer. Social media can make you feel all kinds of emotions, especially when there’s gossip, bullying, or any other drama.

And driving two hours to sit in a convention center for hours at a competition that feels like it’ll never end because they’re always running late while paying $6 for a bottle of water and $20 in spectator fees is not most people’s first choice for spending a Saturday.

But we do it for our kids. We do it because we know how they beam when they hit, glow when they win, and how different they’d be without cheer. We do it because we know how much it means to them.

You can’t make a budget line item for that.

Related: Should Chores and Allowance Go Together? Here’s What Experts Say

The post All Star Cheer Costs a Fortune, but I Pay for It Anyway. Here’s Why appeared first on DollarSprout.

According to U.S. Census data, 38.1 million people were living in poverty in 2018._[1]

That doesn’t include the families living above the poverty line who struggle to pay their bills and put food on the table. That means a significant number of Americans rely on public assistance programs and free money from the government to get by.

But how do they find that money and those programs?

While the federal government provides a comprehensive list of programs, the following is a list of some common services and programs that provide free money and other resources.

How to Get Free Money From the Government

The federal government funds several programs to help U.S. citizens with basic necessities. Most of the programs and services are income-based and have other eligibility requirements; but others are available to anyone, regardless of income.

If you need financial assistance, these programs can help.

Government Assistance for Housing

Finding affordable housing is often difficult, especially if you live in a high cost of living area. These government-run housing programs can help keep you in your home.

Down payment assistance programs

If you’re interested in buying a home, but need help with the down payment, there are a number of FHA grants available. Be sure to check the eligibility requirements for each grant, as they vary from program to program and state to state.

You might also be able to get assistance from a VA loan (guaranteed by the U.S. Department of Veterans Affairs) or USDA loan (offered by the U.S. Department of Agriculture) as well.

Affordable housing

There are a number of government programs that help with paying rent, as well as a number of private charities and organizations. To qualify for HUD assistance, you must meet income eligibility requirements as well as guidelines for family size and composition. The type and amount of assistance varies from state to state.

HUD is offering $112M in grants available to expand #affordablehousing for low-income persons with disabilities. AND, for the first time in nearly a decade, new grants to build more! https://t.co/cwONSrqrs4 pic.twitter.com/ykOSnuPCMp

— HUDgov (@HUDgov) October 9, 2019

The three main programs supported by HUD are:

• Privately-owned subsidized housing
• Public Housing
• Housing Choice Vouchers (formerly known as Section 8)

You can find out if you qualify for one of these programs by contacting your local housing authority. Please note that in most areas, the Section 8 waiting list is incredibly long and in some cities, the list is closed to new applicants.

Foreclosure prevention

If you’re struggling to pay your mortgage, The Homeownership Preservation Foundation is a HUD-approved free hotline you can call for help with making your mortgage payment and remaining in your home.

When you call, the hotline will connect you with a foreclosure prevention specialist who will talk with you about your options. You can also use the service if you’ve received a mortgage modification or have been a victim of a mortgage scam.

Education Assistance, Grants, and Loans

If you have student loan debt, or are looking for grants or loans to afford college, there are a number of options for you.

Student loan forgiveness

Under the Public Student Loan Forgiveness program, you’ll need to make 120 payments (10 years worth) and work full-time in an approved field, government agency, or nonprofit organization. If you meet all of the eligibility requirements and go through the lengthy application process, you might have the remaining balance of your student loans forgiven.

There are job-specific forgiveness programs for people in the medical and education fields, and some states have their own specific forgiveness programs.

Not ready to make your first student loan payment? These tips may help: https://t.co/zaRxtDFzFp pic.twitter.com/2Hb9ZkQ3Pb

— Federal Student Aid (@FAFSA) November 12, 2019

There are also organizations you can work with that will forgive some of your federal student loans (private loans are not included), and provide a stipend for future educational expenses.

Some of these organizations include:

• AmeriCorps
• Peace Corps
• National Health Service Corps
• Nurse Corps
• Veterinary Medicine Loan Repayment Program
• Military Financial Aid

Pell Grants

If you are an income-eligible first-time undergraduate student or are enrolled in certain post-baccalaureate programs, you can apply for Pell Grants from the federal government. This is true free money, since it’s awarded as a grant rather than a loan and doesn’t have to be repaid, except under certain circumstances.

To be eligible for a Pell Grant, you must first complete a FAFSA (Free Application for Federal Student Aid) form. In fact, if you’re interested in receiving any need-based assistance including work-study, you must complete this form.

Food Assistance Programs

If your family is struggling with access to food, and you don’t have nearby food banks or food pantries, these programs and services can help.

SNAP

The Supplemental Nutrition Assistance Program, commonly known as food stamps, is the largest program offering free government money for food. Individuals and families meeting the income eligibility requirements receive a pre-loaded debit card that they can use at any grocery store, farmers market, or other retailer that accepts SNAP benefits.

Each state uses its own eligibility criteria for determining the amount of SNAP benefits a family or individual will receive.

WIC

Women, Infants, and Children is another food assistance program for low-income individuals. A bit more restrictive than SNAP, WIC provides food, nutritional education, and health care referrals to pregnant women, breastfeeding mothers, and low-income women with children five years old and under.

The #WIC program is here for you! WIC gives parents and caregivers information, tools, and support to be the parents they want to be. #MomStrong pic.twitter.com/3tFclDoZBW

— National WIC Assoc. (@NatWICAssoc) November 6, 2019

In order to receive WIC benefits, you must meet certain eligibility requirements.

School-based programs

These are some of the food assistance programs are available to school-aged children.

Free and reduced lunch (and breakfast)

Low-income families with school-aged children attending public school or a nonprofit private school or who are in a residential childcare institution are eligible to receive free or reduced school lunches as well as free milk.

To participate in this program, as well as the free breakfast program, families must meet income requirements.

Summer Food Aid

Another government assistance program, the Summer Food Service Program provides free, healthy meals to children in low-income areas during the summer months. Since the meals are served by independent contractors and providers rather than the schools, you’ll need to find where they’re located in your area.

Backpack programs

While this isn’t a government-funded program, it is a way to get food on the weekends. Generally available in low-income areas, backpack programs provide healthy, non-perishable, and easy-to-prepare foods to kids to ensure that they have enough food when school isn’t in session.

There are no standard eligibility requirements to participate in this program, and each one is unique to the community and population it serves.

Government Assistance Programs for Utilities

One of the largest household expenses after food and housing is utilities. Keeping the lights on and heating and cooling your home can take up a huge portion of your monthly income. These programs can help offset those costs and help you save on energy bills.

Low Income Home Energy Assistance Program

A federally-funded program designed to help low-income families with energy costs, LIHEAP provides financial assistance for paying heating and cooling bills.

#LIHEAP helps the most vulnerable American families afford their home energy bills. We urge Congress to #ProtectLIHEAP and our communities. #LIHEAPaction pic.twitter.com/PUZM3IOBy4

— National Grid US (@nationalgridus) February 28, 2019

It can also help with emergency or crisis issues, like having your heat shut off in the winter or weatherizing your home. It doesn’t provide assistance for water or sewer bills.

Weatherization Assistance Program

This is a program run by the U.S. Department of Energy that provides grants to help low-income households reduce their energy costs by improving the energy efficiency and safety of their homes. Families must meet eligibility requirements to receive this type of assistance.

You can read more about the program and eligibility requirements by visiting the Weatherization Assistance Program’s website.

Free Government Money for Healthcare Needs

Whether it’s just you or you have a spouse and dependent children, you need medical care. If you can’t afford your employer’s health insurance options, or you make below a certain income level, there are still ways to have your medical needs taken care of.

Healthcare Marketplace

If you don’t currently have health insurance, you can sign up for a plan through the federal government via The Healthcare Marketplace.

While there is no specific option for low-income families and individuals, if you make below a certain threshold, you’re eligible for a premium tax credit, which would make your medical insurance free.

The website offers a free income screening tool to determine if you’re eligible for the credit or for lower-premium plans. There are also cost-sharing reductions to help offset the costs of certain services.

Medicaid

Often confused with Medicare, Medicaid is a healthcare program intended to assist low-income, pregnant, medically needy, and disabled individuals under the age of 65 so they can receive quality medical care.

Unfortunately, there’s no uniform set of eligibility requirements for Medicaid. Even though it’s a federal program governed by federal oversight, each state is permitted to decide for itself which populations are covered and what the eligibility criteria are.

To participate in the Medicaid program, states must cover certain groups of people:

• Low-income families
• Eligible pregnant women
• Individuals receiving Supplemental Security Insurance (SSI)

In some states, other populations like children in foster care or adults needing home-based services are also eligible for Medicaid. You can learn more about the complete eligibility requirements for the Medicaid program by visiting the Medicaid website.

Millions of children & teens qualify for free or low-cost health & dental coverage through Medicaid & the Children’s Health Insurance Program (CHIP). See if it’s the right fit for your little one: https://t.co/se2cHiueFi#TuesdayThoughts pic.twitter.com/frsavsF3bB

— HealthCare.gov (@HealthCareGov) November 5, 2019

CHIP

The Children’s Health Insurance Program is another option for low-income families to obtain healthcare for their children. It provides low-cost insurance to families that earn too much money to qualify for Medicaid, but can’t afford private insurance.

Unlike Medicaid, CHIP isn’t a free program. There is a small fee associated with enrolling your child in CHIP, but it’s usually no more than 5% of your total income (the amount varies by state).

However, most routine services don’t have an associated copay, and in some states, there is a pre-pay discount. This means if you pay your annual premium in full, you might get a three-month discount. So if you pay for nine months, you can get three free.

Like Medicaid, each state determines its own eligibility criteria, so you’ll need to check with your state to find out if you qualify.

Related: How to Pay Off Unexpected Medical Debt

Government Assistance for Childcare

Finding quality and reliable childcare is crucial to working parents. However, in many areas, the cost of daycare is unaffordable, and parents must choose between unreliable care or not working. Fortunately, there are government assistance programs that can help.

Child Care and Development Fund

The Child Care and Development Fund is administered by the states to provide subsidies in the form of vouchers or grants and contracts with providers to low-income families for childcare.

Like many of the other assistance programs, each state sets its own eligibility requirements. You can find out what your state’s requirements are by contacting your local fund administrator.

If your family does qualify, you’re allowed to pick the provider you want, as long as the provider meets state standards (and accepts the voucher or grant).

Head Start

Head Start is a school-readiness program for children from birth through five from low-income families. In addition to preparing kids for school, it also helps with whole-family well-being and health and development.

A3.2: In addition to income-eligible families, #HeadStart serves migrant seasonal communities, children experiencing homelessness, children in foster care, children in tribal communities, etc. #EarlyEdChat pic.twitter.com/aYhEGiVl62

— National Head Start Association (@NatlHeadStart) October 17, 2019

Head Start services are available to eligible families living below the federal poverty line, and are available in childcare centers, in-home daycares, and home-based services.

Foster children, children from homeless families, and children in families where other types of assistance (i.e. TANF, SSI, or others) are provided are also eligible for Head Start.

Related: Need Help Paying Bills? Here’s 22 Assistance Programs Worth Looking Into 

Free Money from Taxes and Unclaimed Funds

Free government money doesn’t always come in the form of need-based programs. Some are available to anyone, regardless of income.

Unclaimed money

While this isn’t necessarily free money, it is money that is owed to you for some reason by some entity. This money can include uncashed paychecks, apartment or utility deposits, or safety deposit box contents.

There’s no one place to check for unclaimed money, and you might have it in multiple states so make sure you’re researching all the states you’ve ever lived in. If your employer is headquartered in a different state from where you work, check that state as well.

The best places to start looking for your unclaimed funds are:

• Unclaimed.org
• Workers Owed Wages
• Unclaimed Funds
• Filling out a Destroyed U.S. Savings Bonds Claim

You might also have unclaimed money from old or forgotten tax refunds. To check for those, visit:

• IRS Refunds
• USA.gov

Old pension plans

In addition to unclaimed money or tax refunds, you might have money available to you in the form of old pension plans. If you or someone in your family worked for a company that provided a pension but hasn’t collected those benefits, you might still be eligible for that money.

You can find out if there’s money owed to you by visiting the Pension Benefits Guaranty Corporation and searching for your or your family member’s name.

Tax credits and deductions

An easy way to find free money is to adjust your tax withholding and deductions. If you haven’t done this recently, review the W-4 you submitted when you began your job. Figure out what you chose and then, using this list, make necessary and appropriate adjustments.

Some people are also eligible for free tax preparation via the Volunteer Income Tax Assistance program or the Tax Counseling for the Elderly Program. If you qualify, you’ll receive free tax preparation by IRS-certified volunteers.

Miscellaneous Government Assistance Programs

Whether you need assistance with your phone service, starting a business, or have suffered a job loss, there are programs that can help.

Lifeline

Lifeline is a discount cell phone service administered by the FCC, and is available to low-income people in every U.S. state, territory, commonwealth, and on Tribal lands. The cost is $9.25 per month.

In order to use Lifeline, you must meet certain income eligibility requirements. This means your income should be at or below 135% of the federal poverty level. You may also be eligible if you participate in certain assistance programs including:

• Medicaid
• SSI
• SNAP
• Federal Public Housing Assistance
• Certain Tribal assistance programs

Lifeline provides both cell phone and landline service and works with broadband. However, you may only use the Lifeline program for one service; FCC rules prohibit more than one Lifeline service per household.

FCC takes big step in automating Lifeline eligibility verification. For more info, visit: https://t.co/n8RaSgRhqx #ProtectingConsumers #Lifeline

— The FCC (@FCC) September 18, 2019

If you find that you need help with your phone service but don’t qualify for Lifeline, there are other ways to get free or discounted cell phone service.

Related: 8 Places to Get a Free Phone for Low-Income Earners 

Small business loans

If you’re interested in having your own business but don’t have the start-up capital, a loan from the Small Business Administration can help.

These loans aren’t free government money, but they often come with a much lower interest rate than loans from a private lender. The SBA also offers grants for select scientific and non-scientific fields and nonprofits, as well as providing low-interest loans to businesses affected by natural disasters.

You check for those grants and even apply for them from your phone by visiting Grants.gov.

Temporary Assistance for Needy Families

Temporary Assistance for Needy Families, or TANF, is commonly known as welfare. It’s the cash assistance program designed to help families with children when the family can’t provide the children’s basic needs.

Like Medicaid, this is a program financially supported by the federal government but administered by the states. As such, each state has its own discretion to decide eligibility requirements, time limits, and other factors affecting who receives the assistance, and how much assistance each family receives.

To determine if you’re eligible in your state, you can visit this website.

Senior benefits

BenefitsCheckUp is a free service administered by the National Council on Aging to help senior citizens find benefits that might be available to them. The searchable database contains more than 2,500 federal, state, and private programs to help improve the lives of seniors in the areas of:

• Medication
• Housing and utilities
• Health care
• Transportation
• Food and nutrition
• Income assistance
• Taxes

You can also search for veterans’ benefits and senior citizen discounts. The benefits are local to your area, which means that if you need help in Mississippi, you won’t be shown programs that are only offered in New York.

Unemployment benefits

One of the most stressful parts of losing your job is the loss of income. If you have been let go or downsized from your job, you might be eligible for unemployment benefits.

CareerOneStop, operated by the U.S. Department of Labor, is a hub for you to apply for your unemployment benefits online, and find out what else you might be eligible for. It even has resources to help you with your job search.

Getting Free Government Money Can Be Difficult

Although there are plenty of options for finding free government money, the only way to receive the money is by meeting eligibility requirements in most cases. For most programs, there’s no uniform set of requirements beyond the federal poverty guidelines, so it’s often difficult to figure out if you qualify.

Low-income families with children, disabled individuals, veterans, and the elderly typically have an easier time qualifying for benefits, but it’s not a guarantee. And if you qualify for some programs, you might not be eligible for others. It all depends on your state, the program, and other factors.

If you need any of these programs, contact your state’s Department of Health and Social Services. You can also use the screening tool available on Benefits.gov to see what programs you might qualify for. While it isn’t a determination of benefits, it’s a good place to start.

Related: 12 Places to Get a Free Car For Those in Need

The post 25 Programs to Get Free Money From the Government appeared first on DollarSprout.

Online banks have become increasingly popular thanks to their lower fees, higher interest rates, and 24/7 access. Not only that, you can bank from the comfort of your couch and don’t have to drive anywhere. 

They’re ideal for anyone with a busy schedule or who can’t regularly get to a local bank branch. Apps like Chime recognize those benefits and provide account options for anyone who prefers a fully digital banking experience.

But is Chime the best option for you? Let’s take a look at its services and products to help you decide. 

What Is Chime?

Chime is a mobile-only banking services provider, operating exclusively online and with no physical branches. However, it provides all the features of a traditional bank right from your mobile device. This includes paying bills, viewing your account balance, and transferring money between accounts. Fortunately, the app is intuitive, making it easy to manage your account virtually. And if you have any trouble, Chime’s support team is accessible via phone or the app.

With their mobile banking, you can block debit card transactions if you lose your card or suspect it was stolen, sign up for instant transaction alerts, and deposit checks via the mobile deposits option. You can also withdraw money for free with their in-network ATMs, integrate your Apple Pay or Google Pay, and send checks. 

You can download Chime’s mobile app for both iOS and Android phones.

Open an account

0.50% APY Check site for most current rate

$0 Min. Opening Deposit $0.01 to earn APY

4.0/5.0 DollarSprout Rating

Chime is a fee-free online banking service provider offering checking and savings accounts to customers. It has a competitive APY on its savings account and provides a number of other features including second chance banking options.

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Pros

• Early access to your paycheck
• Competitive interest rate
• No overdraft or account maintenance fees
• Automatic savings tools
• Large ATM network (38,000 fee-free ATMs)
• Second chance banking options
• FDIC-insured

Cons

• More difficult to deposit cash
• Few account options: no loans, credit cards, or retirement planning accounts
• No physical branches

Chime Accounts Options

If you use Chime, you can choose from three different types of banking accounts: checking, savings, and a credit rebuilding account. There are no other options. For instance, you can’t open an IRA, money market account, or take out an auto loan or mortgage. Additionally, you can’t open a joint account with someone else.

To open an account, you’ll need to provide your first and last name, email address, your physical address, and a few other details. You’ll receive a confirmation email and, once you download the app, you’re ready to go. You should receive your debit card in the mail within a few days of opening your account.  

Chime checking account

Chime’s checking account, known as Chime Spending Account, works like a normal checking account, making it easy to withdraw cash for free from an in-network ATM or make a purchase with your debit card. There are no foreign transaction fees, no monthly fees, and no overdraft fees; the only fee associated with this account is a $2.50 charge for using an out-of-network ATM. Should you lose or misplace your card, you can disable it right from the app. 

Other features of the Spending Account include integration with your mobile wallet, overdraft protection, and there’s no credit check required to open an account. This makes is a good option for customers with a poor banking history. 

You can add money to your account via direct deposit, mobile check deposits, and transfers from other banks. In-person deposits are available at locations including Walgreens, CVS, and 7-11 using the Green Dot® network. If you choose to deposit money in person, check with the retailer first to find out what the fees might be. You might find it’s a better choice to do an electronic deposit. 

If you prefer to write checks, you can use the free Chime Checkbook. However, rather than writing a physical check, you initiate a check request via the app. After you provide the required information, Chime sends it on your behalf. While there are no limits to the number of checks you can send per day, the maximum you can send per check is $5,000. 

Spending limits

Chime does put a limit on how much customers can withdraw per day but they do not limit the number of purchases you can make. However, they do cap your spending at $2,500 per day. Included in that $2,500 are ATM fees and withdrawals, funds withdrawn at a point-of-sale, and any purchases you make.

They offer a schedule for their customers to view the spending and frequency limits for daily transactions:

Transaction Type	Frequency and/or Dollar Limit
ATM withdrawal	$500 per day, no limit to the number of times per day
Cash back at point-of-sale	No limit up to $500 per day
Over the counter withdrawals	No limit up to $500 per day
Card purchases requiring signature and PIN	No limit up to $500 per day

Although Chime does not charge a fee for these transactions, they are subject to merchant and ATM owner fees.  

Gas station transactions

Chime advises customers to avoid paying for gas at the pump. They state that gas stations can hold up to $125 on your account and, although it’s usually released within two hours, it can sometimes take up to two days. To prevent this, Chime suggests paying at the register. 

This is the only type of transaction they caution against. 

Chime Savings Account

If you’re looking for an online savings account with no fees, no minimum opening balance, and no maximums on interest earned, you might want to consider Chime’s savings account.

Their current 0.50% APY on savings is more robust than what you’ll find at brick-and-mortar banks and is in line with what other online savings banks offer. Deposits are FDIC-insured up to $250,000.

Understanding that many people struggle with saving money, Chime offers a couple of ways to automate your savings goals: 

1. Save When I Get Paid. Using this feature means that Chime will automatically transfer 10% of your paycheck (of paychecks $500 or more) into your savings account on payday. For instance, if you earn $800 each payday, $80 is moved into your savings account. This is the simplest way for most people to save, and you can make a new budget to account for your adjusted net pay.
2. Round Ups. When you make a purchase using your Chime debit card, the cost of the purchase is rounded up to the nearest dollar and the difference is transferred into your Savings account. For example, if you’re buying lunch for $8.46, Chime will charge your account $9 and the remaining $0.54 is put into savings. It’s an easy way to save money if you make a lot of debit card purchases, but try to avoid making purchases just for the round ups. You can find other ways to save. 

You must earn a minimum of $500 each payday in order to use the Save When I Get Paid option. If you are a lower-wage earner or earn the majority of your wages in cash, this might not be the best savings account for you.

Related: Best Online Savings Accounts with the Highest Interest Rates

What Else You Need to Know About Chime 

Here are some other features you can choose from when banking with Chime. Most of them are standard, but understanding what you’re getting with your accounts is important when selecting a bank. 

Get paid early

Signing up for direct deposit with your Chime Spending Account means you can access your paycheck as soon as your employer deposits it. That can be up to two days earlier than your normal payday.

Chime makes it easy to register for direct deposit, and it can be done entirely via their app. You will need to submit a pre-filled form (provided by Chime) to your employer, but that’s it. There is nothing else you need to do to get paid early.  

There is no extra fee for this feature, and it comes standard with all Spending Accounts. 

SpotMe overdraft protection

As long as you have a total of $500 in monthly direct deposits, you can use the free SpotMe overdraft protection. With this feature, if you make a purchase that causes you to overdraft, Chime will spot you the overage up to your limit (not to exceed $100). The next time you’re paid, they apply it to the negative balance.

Limits are set based on account history and can’t be manually overridden by Chime staff. 

Note, however, that SpotMe only applies to debit card transactions. According to their site, it does not cover ATM withdrawals, PayFriends transfers, ACH transfers (including direct debits and services like Venmo or Square Cash), or Chime Checkbook transactions.

PayFriends

This is Chime’s version of Cash App, Venmo, and other peer-to-peer (P2P) payment apps. It’s free to use and there are no fees for transferring money. PayFriends connects directly with your Spending Account to transfer to (and accept transfers from) other Chime users. 

You can use this on both iOS and Android phones and can send money to friends and family regardless of the platform they use, even if it’s different from yours. 

However, you can only use this to move money between Chime accounts. If you want to send money to a roommate, for example, who does not bank with Chime, you will need to use another P2P app. 

Referral bonus

To encourage users to refer their friends and family, Chime offers a referral bonus. Each time someone you refer signs up and receives one qualifying direct deposit of at least $200 with 45 days of opening their account, you both get an extra $50. 

Your referral link is provided within the app, and they encourage users to share it on social media. They also encourage users to follow them on social media to learn about new offers.

Chime claims that they will occasionally send new incentives via the app, and asks users to be on the lookout for those as well.

Historical technology issues

Chime has previously had problems with the app or account features crashing or not working. The largest outage, in October 2019, lasted over 24 hours. Customers were left without access to their money, and some found their debit cards deactivated as well. While they were not the only online bank that experienced the outage, its issues lasted the longest. 

During outages, Chime communicates with users via Twitter, utilizes its status updates page, and phone lines are open for questions.

Chime Review Summary

Overall, with a 4.5-star rating on Trustpilot, customers are happy with Chime.

Seldomly, users voice complaints revolving around poor customer service, issues with mobile checking deposits, security issues including login problems and accounts being hacked, and Chime slow response time to reports of fraudulent charges. 

If you’re looking for an exclusively online financial app with low to no fees, a competitive interest rate, and easy ways to save money, Chime is a good choice. It’s also a solid option for those without the best banking history.  

 

The post Chime Review 2023: A Simple Option for Checking, Saving and Credit Building appeared first on DollarSprout.

My 13-year-old spends a lot of time talking about jobs she’s going to have when she’s older. What she doesn’t realize is that there’s plenty of ways for her to make money now. And that money doesn’t have to come from me giving her an allowance. It can come from her own hard work and creativity.

In fact, there are plenty of ways for most kids to earn their own cash. From selling their own handmade crafts, to starting a YouTube channel, to helping neighbors with yard work, it’s easier than ever to make money as a kid.

12 In-Person Ways to Make Money as a Kid

While it’s a lot simpler for older teenagers to make their own money, kids younger than 14 still have plenty of options.

1. Bake Sale/Lemonade Stand

The lemonade stand is a classic and one of the most popular ways for kids to make money. If you’re in a premium location or put one near a yard sale or parade route, you can expect some decent results.

Kids can expand their sales (and profits) by also offering things like baked goods, donuts, or more exotic drinks like kombucha or flavored lemonades.

Parental involvement: Low to moderate. Kids as young as five can set up a lemonade stand, but depending upon their age, you might need to supervise, help make or pour drinks, or assist with collecting money.

2. Have a Yard Sale

If your house looks anything like mine, it’s full of toys my daughter has outgrown or stopped using. Encourage your kids to set up a yard sale to get rid of their old items and make some money at the same time. They can even combine this with their lemonade or bake sale or sell homemade crafts to draw in customers.

Parental involvement: Low. You’ll need to help them organize and price their items and supervise the actual sale, but they should be able to handle customer service, collecting money, and giving change on their own.

3. Sell Crafts

An easy way for kids to make money is to sell crafts they make online, especially if they’re the more artsy type. This can include making friendship bracelets, painting, drawing, or even knitting scarves. They can make seasonal items, like warm hats for the winter, or items that sell year-round. Themed items are popular as well, as are items for pets.

This is one of the most open-ended ways to make money as a kid.

Parental involvement: Low. Although you’ll have to help them purchase the materials, drive them to the store, or possibly front some “seed” money, your kids should be able to make and sell their items, especially if they’re older and selling them at school.

4. Pet Care Services

Although you have to be 18 to get started with Rover, kids can still make money walking dogs or feeding cats.

In fact, people in your neighborhood might be more willing to hire your child to walk their dog than a stranger. You can help them get started by posting on social media or helping your child put flyers in neighbors’ mailboxes.

Kids might have to charge less than adults, but if they have a few clients at once, it can add up to some decent cash over time.

Parental involvement: Low to moderate. If your kids are taking care of pets on your block or in your neighborhood, they should be able to walk or ride their bikes to their clients’ houses. If they want to walk dogs or feed cats across town, you’ll have to drive them. You might also need to help with advertising their services or dealing with clients who don’t pay on time.

Related: 7 Cute Ways Dog Lovers Can Make Money with Their Canine Pals

5. Babysitting or Mother’s Helper

Like lemonade stands and mowing lawns, babysitting is a classic way for kids to make money. While older teens can watch younger children, younger teens, and even tweens can get in on the action by working as a mother’s helper.

Whether a mom needs extra hands at the pool or someone to keep her younger kids occupied while she works, your child can cash in on that. It’s a great way for tweens and younger teens to earn money over the summer or during school breaks when parents really need help.

Parental involvement: Low. You might have to drive your child to their client’s home if they live far away or help them with finding clients, but that’s about it.

6. Yard Work

Earning money doing yard work is something even little kids can do.

From pulling weeds, to watering plants, or raking leaves, there’s never any shortage of work that needs to be done around the house. Older kids can up their earnings by cleaning out gutters (as long as they’re not afraid of heights), shoveling snow, or mowing lawns for the neighbors.

Parental involvement: Low to moderate. Depending on the child’s age and what they’re doing, your involvement can range from a supervisory capacity to letting them do the work on their own. However, if it’s a potentially dangerous task, like being on a ladder, you might need to stay with them the entire time.

7. Tech Support

Kids are amazing at using technology. I’ve lost count of how many things my daughter has taught me to do with my phone and iPad.

If your child is good with technology, they can start a business or service helping neighbors and friends perform updates on their devices, digitize pictures and documents, and even give tutorials on how to use various apps. They can also help people set up their new devices or computers or offer to do virus scans.

This can be one of the more lucrative ventures for kids, and one with the lowest start-up costs.

Parental involvement: Low. Beyond helping them set their prices and advertise their services, there is almost nothing you need to do to help them perform this service.

Related: Should Kids Get Paid to Do Chores? Experts Think Maybe Not

8. Wash Cars

Washing cars is a cumbersome task most people would prefer to avoid or pay someone else to do for them. Your child can take advantage of this by offering car washing services around the neighborhood.

They can go door to door with a bucket of supplies or they can ask clients to come to their house. If you live in an apartment complex, check to see if there’s a car washing bay for your kid to set up shop.

If washing cars isn’t an option, or your child wants to make even more money, they can wash outdoor furniture, patios or decks, or clean front porches.

Parental involvement: Low. You might need to ask your homeowner’s association or apartment complex for permission to use certain areas, and you might have to help pay for supplies, but your kid should do all the work. Don’t forget to account for an increase in your water bill as well.

9. Farm Work

If you live in a rural area or near a farm, your kid can get a job doing farm work. Things like cleaning horse stalls, feeding animals, moving hay bales, or other non-machine related tasks are all tasks kids can do to make money.

Check your state laws and regulations to see if there are age or work-hour restrictions for kids to perform farm work.

Parental involvement: Low to moderate. If you own a farm, it’s a lot different to have your kids work for you than it is finding them to do work somewhere else. You won’t have to drive them or help them find somewhere to work. However, you do need to make sure what they are doing is legal so neither your kid nor the farm owner gets into any trouble.

10. Get a Part-Time Job

The simplest way to make money as a kid is to find a part-time job.

Most states don’t permit kids under the age of 14 to work in a traditional setting. However, it might be worth looking to see if your state makes any accommodations for jobs like dishwasher, junior camp counselor, or bagging groceries for kids younger than 14.

Parental involvement: Moderate. You’ll need to make sure you can drive your kid to and from work and be available during their work schedule (unless transportation is provided). You’ll also need to make sure their paperwork is completed and filed with the correct entities and they have a bank account to deposit their paychecks.

11. Start a Band

If your kid plays an instrument like bass or drums, you can encourage them to find others who play instruments and start a band. It can be a rock band, jazz band, or any other kind of music they like.

If they’re good, they can play at birthday parties for a flat fee or at all-ages shows in bars, where they’ll earn a cut of the profits.

Parental involvement: Moderate to high. You’ll need to provide a place for them to practice, transportation to and from gigs, act as a roadie by moving instruments and other equipment, and make sure they meet all legal requirements for performing in places like bars.

You might also need to work with other parents or restaurant owners to make sure your kid and their band aren’t getting taken advantage of.

12. Do Extra Chores

The simplest and most efficient way to make money as a kid is to do extra chores around the house. If you don’t pay for basic household chores like feeding the dog, setting the table, or folding laundry, consider finding some bigger projects for your kid to do.

Organizing the garage, painting a section of a fence, or cleaning out closets are all time-consuming tasks. Having your kid do them not only teaches them to work for their money, but it also gets those annoying tasks done.

Parental involvement: Varies. How much you need to be involved in having your kids do extra chores for money depends on what you ask them to do and how old they are.

8 Online Ways to Make Money as a Kid

If your kid spends a lot of time online, you can encourage them to use some of that time to make money.

13. Start a YouTube Channel

While earning money from a YouTube channel takes time and a lot of work, if your kid is a natural on camera or has a special talent, you can encourage them to start their own channel.

They can do anything from unboxing games and toys to sharing crafting tutorials. They can even have an interview show where they bring on guests like friends or grandparents. If they gain enough views and subscribers, they can start monetizing the channel with things like ads and sponsorships.

Parental involvement: High. Not only will you have to monitor the accounts for inappropriate comments and followers, but you might also need to do the video editing (or hire someone to do it) and camera work.

Older kids should be able to figure this out on their own, and it’s a great way for them to learn some tech skills, but you’ll need to be hands-on if this is how your kid wants to make money.

14. Use Your Instagram

One way to make money on Instagram is to become an influencer. Having a lot of followers means you can work with brands and companies to advertise their products.

You can also be an affiliate so your kid will get a part of the sales when people buy products they recommend from a link they provide. If you don’t want your kid to be an influencer, you can encourage them to use your family pet instead.

In order to have their own social media account, children must be a minimum of 13 years old.

Parental involvement: Moderate to high. When it comes to making money from social media, parents need to remain vigilant. You’ll want to monitor how your child is presenting themselves, watch for inappropriate comments or private messages, check their followers list daily, and make sure the companies they’re partnering with are legitimate.

15. Start a Podcast

Kids have a lot to say about pretty much everything. You can encourage your child to harness their words and ideas and start a podcast on a topic they love. If they’re younger, you can start one with them and use it as a fun side gig for the two of you to spend time together and make some extra cash.

As a bonus, they can learn what goes into creating a podcast, like editing and writing show notes, which helps develop marketable skills they might be able to use later on. If they’re shy but still want to share their ideas and thoughts, they can start a blog.

Parental involvement: High. You’ll most likely need to purchase the equipment and editing software, as well as work with your child to get the podcast uploaded into places like iTunes or Stitcher. You’ll also need to help with tasks like editing and promotion, as well as negotiating with any potential advertisers and sponsors.

16. Sell Old Technology and Toys

If you have old toys and technology lying around the house and you want to get rid of it now, consider using Decluttr. You can encourage your child to part with that old LeapFrog reader or box of Legos and allow them to keep the profits.

They can also sell books, video games, or board games they’ve outgrown. The best part is that kids of any age can earn money by selling their stuff with Decluttr.

Parental involvement: Moderate. You’ll have to download the app and help them scan their items, especially if your child is on the younger side, and you’ll need to make sure everything is mailed. You might also need to help them go through their things and sort them into what’s appropriate to sell and what isn’t.

17. Take Surveys

Joining Swagbucks is a great way for adults to earn extra cash in their spare time, but if your child is at least 13 years old, they can join too. The program works the same way for kids as it does adults, and it’s an easy way for your kid to monetize the time they’re already spending online.

If you’re interested in learning more about using Swagbucks for yourself or to help your kid make money, check out our Swagbucks review.

Parental involvement: Moderate. While your child will be the one answering the surveys and earning the money, you’ll need to make sure the surveys and tasks are age-appropriate. As with any online venture, you need to be cautious of any contact from unknown adults or phishing scams.

18. Become a Brand Representative

If your child is an athlete, gamer, or social media influencer, you can connect with relevant and appropriate companies for your child to work as a brand representative.

Generally, all they’ll have to do is post about the product on social media or put a logo on something like a shirt or a backpack. They might be asked to wear, use, or share certain items at specific times, like during holiday sales or big events.

For working as a representative, they’ll receive compensation in either cash or free stuff.

Parental involvement: Moderate to high. You’ll be the one negotiating with the companies, and you’ll also need to monitor the social media accounts. If your child is too young to have their own account, you’ll also need to take pictures, post them, and write the captions.

19. Sell Designs on CafePress

Is your kid interested in graphic design or do they have an eye for catchy patterns and slogans that would look great on a T-shirt? If so, Cafepress is a great place to start a custom T-shirt business. If they design something that connects with an audience or current trend, they can make big money with their design.

Parental involvement: Moderate. You will need to stay on top of orders, make sure payments are processed, and respond to customer inquiries or complaints, but your kid will be responsible for creating the designs on the site and making sure the inventory is refreshed and updated regularly.

20. Fiverr Gigs

As long as your child is at least 13, they can make money with Fiverr. Just like adults, kids can sell services starting at $5. Those services can include things like writing, graphic design, voiceovers, or animation. If they want to increase their income-earning opportunities, kids can offer packaged services as well.

Parental involvement: Moderate. Like with other online gigs, your child will be responsible for performing the tasks and services, but you’ll need to moderate inquiries and complaints, handle payment issues, and check regularly for inappropriate private messages.

Related: Should Parents Pay for Their Children’s College Education?

Making Money as a Kid Still Requires Parental Assistance

While the kids do the actual work, parents play a vital role in helping their children make money.

Put a Plan Together

Before your child starts making their own money, sit down together and help them formulate a plan. Ask them what skills they have to use to earn some cash. Find out why they want to earn money and what they plan to do with it. You can even work with them to create a business plan so they have some direction for their venture.

Open a Bank Account

Most banks require a parent or guardian to be listed on a bank account for kids under 18. Your child will also need you to drive them to the bank to open the account. On the way, you can discuss with them the different banking options they have and what might work best for your child.

There are also online banking options if transportation or finding the time to get to a brick-and-mortar bank is difficult.

Budget

Now that your child is making their own money, they need to know how to manage it. You don’t want them to spend all of their energy working only to see the profits wasted.

They need to be taught how to put some of it away for taxes, to buy more materials, to pay for advertising, and to save for their goals. While they can (and should) keep some of it for frivolous spending, it’s important they know how to budget each paycheck that comes in.

Transportation

Most of these jobs can be found in and around your immediate neighborhood, making them perfect for teaching your kids how to get themselves to work. However, some of them might require you to drive them or find alternative options for transportation. If that’s the case, you can consider charging them a fee and use it as a teachable moment for what it’s like to pay employees.

Help with Negotiating Prices

The bulk of your help will come by helping your child set their prices. Whether it’s figuring out how much to sell their crafts for or if they should get paid hourly for yard work or by the task, you’ll need to provide guidance on what they should charge their customers and clients. You can do this by researching together online or talking with them about what they think is a fair price.

Don’t forget to tell them to include the cost of materials, transportation, or anything else they need.

Advertising and Marketing

Whether you’re helping them design and distribute flyers, creating an online profile, or using your own social media account to share their services, your child will need help with advertising and marketing their business.

You can also talk with them about how to market and advertise safely, what makes a good ad campaign, and why it’s important to know who their clients are when developing their marketing plan.

Online Safety

If your child is doing anything online, especially via YouTube or Instagram, you need to talk with them about online safety.

Topics should include how to deal with negative feedback and comments, handling inappropriate direct messages, how they present themselves, and how what they do online now can affect them in the future. You should be prepared to monitor their accounts daily to check for these kinds of things.

It’s also important that you talk with them about protecting personal details like addresses and phone numbers, not sharing bank account information, and maintaining as much privacy as possible.

It Is Possible to Make Money as a Kid

Making money as a kid is definitely possible, especially if your child is motivated, entrepreneurial, and has money-related goals. Encourage your kids to try different ventures to see what they like and what they don’t, as well as what nets them the most profit for their efforts.

If your child is interested in earning their own money, make sure you talk to them about things like start-up costs, taxes, and how to handle difficult clients. You’ll also be responsible for driving them to their job and monitoring their business accounts.

You can’t take a passive role if you have a child who wants to make money. When kids work, parents work. But when done together, it can be a great learning experience for everyone.

The post 20 Safe Ways to Make Money as a Kid appeared first on DollarSprout.

Basically, I want my money to be safe, and I’d prefer not to have to pay exorbitant monthly fees to access my cash. It’d also be helpful if I could get some cashback or earn more interest than a mere $0.02 per statement (or less).

You’d think that what I’m asking for would be commonplace, but the big banks’ towering skyscrapers and 7 and 8-figure executive salaries don’t pay themselves. As a result, they squeeze their account holders for every last dime, and they make it seem like they’re doing us a favor by holding onto our cash for us.

I realized not long ago that if I wanted fair treatment, I had to ditch the brick-and-mortar banking establishments and look elsewhere. Online banks are the way to go, but I kissed a few frogs before I opened an account with Discover. And now, I won’t bank anywhere else.

Despite what is about to be an overall glowing review, Discover Bank is not without its flaws. So, I’ll be honest, and in this review, I’ll tell you where I think they’re doing an excellent job for their customers, and where they could use some improvement.

Is Discover Safe?

What I appreciate most about Discover is that I know my money is safe with them. In the early 2000s, a lot of suspicious-looking banks opened their virtual doors, and the Internet was a Wild, Wild West of scammers and Nigerian princes.

Since Discover is an established institution with a history of serving credit card customers since 1985, there’s a sense of security when you store your money with them.

If you are wondering what bank owns Discover, it’s Discover Financial Services, Inc. This is the same for many card companies. For example, the “real” AmEx cards are backed by American Express Centurion Bank.

Is Discover Bank federally insured?

While they are relative newcomers to the banking industry, you can rest assured that your funds are FDIC-insured up to the maximum allowed by law, which at the time of this publication is $250,000.

But, before you get too excited about the security of your money, FDIC insurance (Federal Deposit Insurance Corporation) only kicks in if the bank goes under.

It’s most relevant during extreme financial crises like The Great Depression and the 2008 Financial Crisis. In 2008, 25 banks failed. However, it doesn’t apply to theft or hackers.

What about hackers?

Knowing that Discover Bank isn’t likely to fail, the biggest concern in my mind is what happens if there’s a security breach and hackers steal my money. This isn’t just me being paranoid, either.

Hacking and digital theft are on the rise, and many major corporations have had their customers’ information compromised. Fortunately, Discover Bank has private insurance if unscrupulous computer thieves steal your information and cash.

In this Discover Bank review, I’ll discuss four of their main banking products, and share what I think about each one.

Discover Bank BBB rating

Discover Bank holds an A+ rating with the Better Business Bureau (BBB) with 58 years of continuous business served.

Discover Bank Online Savings Account

Discover’s savings account was named one of our best savings accounts of the year, and it’s easy to see why. Discover stays ahead of other companies with their lack of fees and high APY (annual percentage yield). It’s important to have a good understanding of how APY works if you don’t already.

APY

Discover has one of the highest APYs in the online banking world, which is a huge perk. Brick and mortar banks typically give about 0.01% to 0.05% APY, but with the low overhead of an online bank, those savings get passed onto the consumer.

Interest rates fluctuate regularly, so it’s best to check Discover’s website for the latest APY. These are based on the economy and other factors so they may change from time to time.

No maintenance fees or minimum balance requirements

To me, not having to pay for the privilege of storing my money is even more important than the interest rate.

We’ve all had a financial emergency at one time or another. Whether it’s a significant car repair, an unexpected medical expense, a tuition hike, or an irresistible pair of Jimmy Choo’s, a temporary dip in the bank account is normal.

What’s not normal is being punished for it. As the saying goes, life isn’t fair, but I still think maintenance fees and requirements for a minimum balance stink.

This is another reason that I love Discover Bank. No monthly maintenance fee or minimum deposit makes it easy for anyone to open and maintain an account.

Discover Bank savings account bonus

If you have a large amount of money you want to deposit in a Discover Bank savings account, their savings account bonus puts them ahead of most other options.

Although Discover does not have a minimum you must deposit for opening a savings account, you do have a minimum you must deposit in order to get the Discover savings account bonus. This offer varies, so check out Discover’s online savings account for current bonus opportunities.

Discover Bank locations and ATMs

One of the significant tradeoffs of Internet banking is not having access to an ATM since there are no physical branches.

Discover technically has one branch in Delaware, and that happens to be the only place you can deposit cash into your account. So, unless you happen to live near that office, you won’t be able to put cash directly into your account. Because there are no Discover Bank locations outside of the one in Delaware, you’ll be limited to check deposits or wire transfers only. If you run a cash-based business, this may be a deal-breaker for you.

However, you still have access to 415,000 ATMs. Watch out for fees, though. The average transaction fee is $2.77, and only 60,000 of the ATMs in Discover’s network waive the fee. There’s also a limit of six withdrawals per month, but that’s universal across all online savings accounts, not just Discover’s. If you exceed the withdrawal frequency, you’ll have to pay for each incident over the limit.

There’s another way to get cashback without paying for it. If you open a checking account and get a debit card, you’ll get cashback with no transaction fees on some purchases.

Fee forgiveness

As of June 16^th, 2019, Discover’s online savings accounts, checking accounts, and money market accounts have all converted to fee-free structures.

This means no fees for stop-orders on checks, no overdraft fees, and no minimum balance fees.

With such fees typically ranging from $15 to $30, Discover has taken the industry lead in eliminating pesky fees that otherwise plague consumer balances.

To sum up: If you’re actively trying to save money, then Discover Bank is the clear winner for a high-interest online savings account. You get some of the highest interest rates around, and you never have to worry about paying fees to store your cash.

Checking Account

Checking accounts with consumer-friendly policies are even harder to come by than savings accounts. This is because banks know that checking accounts are likely to have lower balances and more activity than a savings account.

You’re paying bills from this account and potentially using a debit card. All that activity can be expensive to track.

In my opinion, the checking account department is where Discover Bank really shines. Here’s why:

Cashback on debit card purchases

I think many of us like to take advantage of ways to make money fast.

With cashback bonuses, you’re not going to get rich. However, only a handful of banks offer rewards on debit card purchases, so this makes Discover stand out.

No monthly fees or minimum deposits

Again, if it’s the end of the month and my balance is low until my next paycheck gets deposited, I don’t have to pay a “maintenance” fee. There’s no denying that having a checking account is a convenience, so it’s refreshing not to have to pay for the privilege.

No fees for bank checks

Also known as cashier’s checks.

At my last greedy bank, I had to pay $8. It’s not something you need every day, but it seems insane to charge that much.

No fees for returned deposits

If you’ve ever cashed a check somewhere and had it bounce, you might have been charged $15 to $35 for something that you have no control over and isn’t your fault.

If you’re on a tight budget, that could also lead to an overdraft, which is another fee. That’s why I appreciate Discover because there’s no fee for someone else’s check bouncing.

Easy getting started

Have you ever opened a checking account in person? It’s a long process that feels like a mix of an invasive doctor’s appointment and a trip to the DMV.

There’s a lot of paperwork, questions to answer, and tons of waiting. And whenever I’m sitting in a bank, I begin second-guessing every single one of my financial decisions.

When you open a bank account online, there’s no judgment about how much you plan to fund your account. It’s three easy (and painless) steps.

Excellent Discover Bank app

Other online banking apps have been a nightmare to use. One app crashed every time I tried to deposit a check. And, more often than not, it would tell me that it couldn’t read the sum I deposited, even though it was typed out and not scrawled in illegible ink.

The Discover Banking app has a 4.8 rating and a whopping 1.66 million reviews. To say it works like it’s supposed to is an understatement.

It is expected that the Discover Mobile App will remain excellent and up-to-date since there is only one Discover Bank location. Most transactions are meant to be completed online or on your smartphone and, therefore, the company relies on a top-quality banking app.

To sum up: Unless you’re in a situation with your checking account physically handcuffed to other assets that make closing it down impossible, I highly recommend using Discover for your checking and debit card needs.

Certificates of Deposit (CDs)

If you know you won’t need to touch your money for a while, a CD is a safe way to collect a higher interest rate than a bank account.

Discover Bank CD rates

At the time of this publication, only a couple of banks came close to paying what a Discover Bank CD rate paid. Some factors that play into what kind of CD rate you can get include:

• The length of time before your CD rate matures
• The current interest rate environment
• How much your bank anticipates they can make with the money you deposited

FDIC-Insured

I love CDs because when I have extra cash, I can put it to work with zero risks because the funds are FDIC-insured.

Let’s say I have a summer European vacation planned next year, and I’d like to have an extra $1,000 on hand to take along. I can use Discover’s online calculator to figure out exactly how much money I’d have to set aside, and how long it would take to reach my goal.

No risk

What’s most useful about Discover’s CDs is that I don’t even have to plan far in advance to benefit.

For example, you already know that a bank account can pay over 1.5% interest. But keeping that same amount secure in a CD for just 12 months, I can earn a higher rate. It’s like having free money, and there’s virtually no risk.

To sum up: If you have even a little bit of extra cash that you know you don’t need immediately, a CD is a no-brainer. If only I had discovered these financial instruments sooner… Like when I was five. Like the checking account, you can also open a Discover CD online in three easy steps.

Money Market Account (MMA)

Our Discover Bank review would not be complete without talking about Discover MMAs. A money market account is nearly identical to a bank account with a few exceptions:

1. First, the best money market accounts generally have high-interest rates.
2. Second, it generally requires a higher minimum deposit to open.

With Discover, the minimum opening amount is $2,500. There’s no fee for dropping below that point, but you’ll need at least that much cash on hand to get started.

APY

Here’s where things get a bit odd, though. There are two listed APYs for money market accounts (one for balances under $100,000 and one for balances over $100,000), but both rates are less than the regular online savings account.

I found there’s no discernible difference other than the money market account being more restrictive and paying less interest, which means there may be better options out there if you are specifically looking for a money market account.

Discover Bank Review Conclusion

Overall, my Discover Bank review is positive. They offer competitively high rates, no fees on most products, a fantastic app, and easy access to your funds.

Discover Bank customer service is top-notch and they are backed by the FDIC. There are some cons (like anything in life), but these certainly do not outweigh the benefits.

Pros of Discover Bank

The rates are competitive. You’ll get more interest and more cashback than just about anywhere else.

No fee savings, checking and money market products. No maintenance fees, low or no minimum balances, and no fees for routine services make Discover a top choice for anyone’s banking needs.

Easy access to your money. With nearly half a million ATMs, you’ll be able to get cash almost anywhere.

An out-of-this-world app. Thankfully, apps, in general, have gotten better over the years, but several in the banking industry still need improvements. The Discover Mobile app is indisputably first class.

Discover Bank customer service. The company employs a U.S.-based customer service team. If you’ve tried discussing anything complicated or had to repeat a string of 16 digits over and over again because of bad phone connections, delays, or a poorly trained staff, you know how frustrating that can be.

Discover Bank cons

There is only one Discover bank location. If you do need to do any in-person banking, you may decide to go with another institution.

No overdraft credit line. Consumers can’t borrow from other accounts to cover temporary shortfalls outside of non-saving, checking, and money market accounts. 

Disclosure:

ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cashback rewards. In addition, purchases made using third-party payment accounts (services such as Venmo® and PayPal, who also provide P2P payments) may not be eligible for cashback rewards. Apple, the Apple logo, and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries.

The post Discover Bank Review 2023: Safety, Rates & Account Options appeared first on DollarSprout.

From avoiding temptations, to having no support network, to decreasing motivation, losing weight is often a frustrating, lonely process.

Not to mention how expensive it can get.

What if there was a way you could find support and motivation along with financial incentives to stick to your weight loss goals and earn money at the same time?

Thanks to HealthyWage, there is.

What Is HealthyWage?

HealthyWage is a weight-loss website that encourages users to achieve their weight loss and fitness goals. It does this by providing financial incentives and cash prizes, social motivation, positive peer pressure, and competitions. Users can participate as individuals or as part of a team.

Participants can use whatever diet or fitness plan they want; HealthyWage doesn’t provide those. However, it does encourage healthy weight loss. For team challenges, it only allows up to 16.6% of their total weight as a goal to lose. Individuals can lose more if they choose, but limits are placed on how much counts toward the final goal.

Is HealthyWage Legit?

During our HealthyWage review, we came across several media sources that bolster HealthyWage’s legitimacy as a company.

Since its inception in 2009, HealthyWage has been featured on a number of national news and media sources, including Good Morning America, NPR, and NBC’s Today Show. It has an A+ rating from the Better Business Bureau with zero identified complaints. There are only 60 customer reviews, but most of them are positive.

How Does HealthyWage Work?

To participate with HealthyWage, you make a bet on your weight loss and then compete against others – either as an individual or as part of a team – to achieve that goal. If you reach your goal, you will win money. If you don’t, you lose and don’t get to share in the winnings.

1. Determine your prize amount by using the HealthyWage prize calculator.

The first step is to use the HealthyWage calculator to determine how much weight you want to lose (must be a minimum of 10% of your starting weight), how much money you’re willing to bet ($5 to $995 per month), and how long you need to reach your goal (6 to 18 months).

You’ll also need to provide your gender, height, and current weight. HealthyWage requires you to create a username and password before it’ll tell you the estimated prize amount. You can also use your Facebook account to log in and obtain the prize amount information.

You can play with the numbers using the HealthyWage calculator until you’re satisfied with your prize, which can be up to $10,000.

2. Sign up for an account to place your bet.

Once you’ve created an account and are satisfied with your prize amount, you can place your bet. In this step, you’ll need to provide your payment information and select if you’d like to pay in monthly installments or all at once.

Team challenges require a monthly $25 fee if you’re participating through a company, and $33 per month if you’re joining a randomly assigned team.

3. Verify your weight.

In order to begin your challenge, you’ll need to have your weight verified. In fact, you’ll need to do this at least twice — once when you place your bet and again at the end of your wager period.

The site says that you can verify your weight at your gym, with your doctor, or at a Weight Watchers meeting. If you don’t belong to a gym or Weight Watchers, you can arrange a free visit with one of its partners, with no obligation to join. You can also verify your weight by using your at-home scale and submitting a photo through its app.

4. Lose weight, win money.

If you accomplish your weight loss goal, HealthyWage will pay you in cash. But if you don’t, your monthly contributions will be used to support HealthyWage and pay future winners.

If you don’t think the money alone will be enough motivation to help you succeed, then you may want to consider joining a team. HealthyWage gives you the option to create your own team of five or be put on a random team with other users looking to lose weight.

Other Ways to Win Money with HealthyWage

In addition to the individual challenges, there are other ways to win money with HealthyWage.

Team challenges

Team Challenges comprise a big part of HealthyWage’s challenges. They encourage people to form their own team of friends, family, co-workers, or even join a random team of strangers looking to lose weight and earn money.

For team challenges, your entrance fee allows you to compete for the cash prizes, and HealthyWage states that if you lose 10% of your starting weight within six months of starting, you can get your registration fee reimbursed. The top prize awarded to teams is $10,000.

Corporate challenges

Similar to Weight Watchers at Work, HealthyWage offers a free program for employers and government contractors that work like Team Challenges.

If you’re participating through your employer and two other teams register, your registration fee can be waived. HealthyWage also mentions that “if your company is already participating in the contest, you may be eligible for a discount on registration because some companies choose to cover part of the cost for employees who participate.”

Referrals

You can increase your earnings by referring others to the program. HealthyWage will pay $40 for every friend or family member you refer who joins a challenge. If they sign up during the first ten days of your challenge, your referral bonus increases to $100.

Participate in multiple challenges

To maximize your earnings with HealthyWage, you can participate in multiple challenges at once. Users are permitted to do a Team and HealthyWager challenge simultaneously, along with step and jackpot challenges, up to ten challenges.

However, you can’t have two simultaneous individual weight-loss bets. You can only have one HealthyWager individual weight loss bet at a time.

Related: 20 New Year’s Resolution Ideas to Make 2023 Your Best Year Yet

How and Why HealthyWage Works

It’s easy to say that HealthyWage works because of the financial incentives, and while that’s true, it’s more than that. Social and accountability aspects also provide encouragement and motivation. Team Challenges foster a sense of community and positive peer pressure because the feeling of not wanting to let someone else down is a powerful motivator.

Thanks to the 40,000+ member Facebook group, you’re never really alone when you’re participating in a HealthyWage challenge.

DollarSprout’s Marketing Coordinator, Noah Riggs, found the forums especially helpful when he participated in HealthyWage challenges. He said that it’s a supportive community of really great people and that just reading the forums was motivating.

Noah, who states that he is financially motivated and feels pressure when money is on the line, participated in the main HealthyWager challenge along with four other smaller challenges.

He lost one but won four, with his total winnings adding up to $1,884 (minus monthly payments to remain in the challenge). He said that if you’re losing weight legitimately and on a schedule, then the smaller challenges are a great idea; just make sure to keep a schedule of when to weigh in. You don’t want to miss any weigh-ins and possibly forfeit your prize winnings.

HealthyWage Alternatives

If you find that you’re not incentivized by placing bets on your weight loss goals, there are some other options for you to use either independent of or in conjunction with HealthyWage.

DietBet

DietBet is another weight-loss platform that incentivizes people to reach their weight loss goals by wagering money. It works like HealthyWage in that you can join individual or team challenges, create your own, and win money.

It has different levels of challenges: Kickstarter, Transformer, and Maintainer. You can pick which one you want to join based on where you are in your weight-loss journey.

You only have to verify your weight via a photo that is uploaded on its website. There’s no option for visiting a gym, doctor’s office, or Weight Watchers location.

You can learn more about DietBet, how it prevents cheating, protects your privacy, and more by visiting its site.

Make your own weight loss bet

If you don’t want to use a website or an app, you can follow the same rules and procedures of HealthyWage by starting an in-person challenge with your friends, co-workers, neighbors, or family members. It would be up to you to set the terms, rules, conditions, time limits, and track weigh-ins and weight-loss totals. You’d also have to find a way to gather the money from everyone and store it until the challenge is over.

Related: 13 Legit Apps That Pay You to Walk by Tracking Your Steps

HealthyWage Review FAQs

If you’re new to using HealthyWage, you might have some questions about how it works, if it’s safe, and how your money is used.

How is the prize calculated?

It’s not entirely clear how your prize is calculated. The information you enter into the HealthyWage Prize Calculator, along with other variables like time of year and BMI, is run through a proprietary algorithm that determines how much you’ll win.

The algorithm is constantly being updated and improved, so two people in similar situations could receive different prize offerings. But once you commit, your prize amount is set — there’s no turning back.

Is HealthyWage safe to use?

Yes. Payment made to HealthyWage is secure and is not stored in its system. Personal information like weight isn’t shared with teammates or employers, although they can see your percentage of weight loss.

How can they afford to pay people for losing weight?

According to its site, HealthyWage is “financially supported by insurers, health systems and hospitals, food companies, and the government. Government and corporate leaders know that incentives work and are a cost-effective solution”.

And although money is a great motivational tool, not everyone wins their bet. For non-winners, HealthyWage keeps the monthly wager set at the beginning of the challenge.

How much money can I win with HealthyWage?

The most you can win during a team challenge is your share of a $10,000 prize.

For individual challenges, your prize depends on your wager, personal data, and other variables. However, once you make a bet, your prize amount is guaranteed and won’t change.

Is HealthyWage effective for helping me lose weight?

Yes. HealthyWage is effective in helping people lose weight. While it doesn’t provide pre-made meals or fitness plans, it offers financial incentives, social accountability, and other tools to keep people motivated and on track to reach their weight loss goals.

Does HealthyWage give refunds?

Once a challenge has begun, HealthyWage doesn’t issue refunds unless it is due to medical reasons or a pregnancy. Refunds can be issued prior to a challenge start date.

The App Is Legit but Don’t Get Carried Away

In review, HealthyWage offers a real, effective, and legitimate way to get paid to lose weight. Its use of financial incentives, social support, goal-setting, technology, and your own personal health and wellness record, empowers you to live a healthier life.

However, it does come with some risk. Be smart and realistic about how much you can afford to wager, as well as your chances of winning your bet. If you overextend yourself or are unrealistic about time frames, you could wind up losing money rather than winning it.

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Price Varies Based on Bet Size and Duration

DollarSprout Rating 4.0/5.0 stars

The app offers a legitimate way for users to place a weight loss bet and profit from it if they succeed. Prizes can reach as high as $10,000 but are difficult to achieve. Lower weight loss bets over a longer duration offer the most realistic means of cashing in.

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Pros

• Transparent service; prize is calculated prior to starting with objective means of meeting weight loss goals.
• Life changing prizes amounts for difficult-to-achieve weight loss bets.
• Supportive community centered around promoting healthy, holistic weight loss strategies.

Cons

• Sustained weight loss is difficult and most participants will not reach their stated goal.
• Be careful not to get carried away. Larger cash prizes incentivize sometimes unrealistic goals.

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