Ilyce Glink, Author at Best Money Moves

How to Help Prevent – and Recover From – Identity Theft

by Ilyce Glink | Oct 12, 2016 | Blog

Financial stress in the workplace often comes directly from worries about the unexpected: job loss, surprise expenses or injuries. Identity theft and fraud are becoming an increasingly common source of financial worry for employees.

According to a recent survey from Bankrate, 41 million adults in the US have been a victim of identity theft and 49 million more know someone who has been victimized. This crime is sometimes unavoidable and recovering from it takes a serious toll, both emotionally and financially.

Here are some of the ways identity theft causes stress for employees and some steps employers can take to help educate their workers.

Financial stress from identity theft

The number of ways identity theft and fraud can happen are startling – from a parent running up debts in a child’s name to a stranger abusing personal information from a data breach – and once an employee is victimized, the financial stress sets in.

A recent survey reported by HSB showed that more than a third of Americans had been the victim of a cybercrime in the past year, including the hacking of their personal information and their data being held for ransom. In nearly a quarter of these incidents, the victim spent up to $5,000 of their own money repairing the damage, while more than half spent up to $500. In fact, $15 billion was stolen through identity fraud last year in the US alone. This sudden major expense causes extreme financial stress for victims, in addition to the emotional anxiety of having their information abused.

A long recovery means drawn-out stress

This stress is often prolonged, as victims of identity theft face a difficult path to recovery that doesn’t happen overnight. If an employee of yours had their identity stolen, they might have their checking account emptied, debt transferred onto a credit card in their name or a mortgage opened using their credit. Their recovery process could include getting a police report, filing an identity theft report, ordering their credit reports and requesting fraud alerts or security freezes, even dealing with debt collectors and loan servicers looking to collect payments for fraudulent accounts, all while having to keep a careful eye on every one of their financial accounts for the foreseeable future.

It can take years for a victim to restore their credit and finances, often without any sort of explanation for how they became a victim. The Bureau of Justice Statistics’ most recent report claimed 68 percent of identity theft victims had no idea how the perpetrator got ahold of their personal information, leaving them still feeling vulnerable. If your workers are dealing with this kind of stress, whether it’s an ongoing abuse of their identity or paying thousands of dollars to restore the damage caused by fraud, the anxiety doesn’t go away once they arrive at work.

Steps for employers to take

Your employees would certainly appreciate your understanding if they’re facing these issues, but they can also use your help. Workers of all ages can be victims and the less familiar they are with digital security, the more at risk they’ll be. Educate your employees about good digital habits – like using strong, unique passwords for every account and reviewing accounts on a regular basis for fraud – that can be applied to both the workplace and their personal lives. We’ve already seen that regular reminders can help change your workers’ habits, so encourage them to change passwords frequently and stay on top of their financial accounts.

You can also talk about risks like computer viruses, phishing attacks and ransomware, all of which can be used to steal data in or out of the workplace. Prevention is a major part of protection against identity theft and the more your workers know, the more prepared they’ll be to react appropriately and manage the financial stress that accompanies this crime.

Your workers can’t make the right decisions if they don’t have the knowledge they need both before and after their identity has been abused. When financial stress hits, having a guide is helpful, which is why providing the right resources is one of your best options to assist them.

Student Loans Are Coming Due. Are You Ready?

by Ilyce Glink | Oct 5, 2016 | Blog

It’s the start of fall, a few weeks until Halloween, and another significant milestone as well; student loans are coming due for May 2016 graduates.

Federal student loans typically have a six-month grace period after graduation to allow borrowers an opportunity to find work, accrue some savings and prepare to start making payments.

Although this grace period sounds like a relaxing break, it can be a financially stressful time as recent graduates might be thinking about how their new monthly student loan bills will impact their monthly expenses. Studies have shown that Millennials are already more financially stressed than other working generations, so this upcoming shift could make things even worse.

Here are some of the ways student loans can impact the financial stress levels of your employees, and what you can do to help them manage this transition.

Student loan stress

Americans owe more in student loans than ever before. The average spring 2016 graduate has nearly $40,000 in student debt and many of these grads will be facing their first bill in a matter of weeks. The six month grace period is an opportunity to prepare for the higher bills that are now due each month, but for financially inexperienced recent grads it’s still difficult to anticipate these monthly payments – often hundreds of dollars – and then factor them into their budgets. The result is a shock to their system, and stress comes with it.

The more money you owe, the more financial stress you’ll feel. A 2015 study from the University of South Carolina found that the more debt a student loan borrower carries, the more likely they are to be depressed.

In the workforce, if you tend to hire younger workers, your employees are likely already paying down their student loans – 43 million Americans are – and the amount they owe could vary wildly. Even if it’s not their first payment they’re reacting to, struggling to cover them each month take its toll, especially when it’s not the only thing giving them anxiety.

Millennials are already stressed out

The American Psychological Association’s annual ”Stress in America” survey found that Millennials, including recent college graduates and young employees, have the highest self-reported stress levels of any generation in America. Student loans have a lot to do with this, as many of these young employees are handling things like a budget, an apartment lease and a full-time job for the first time on top of their loans.

To make things worse, the student loan payment process isn’t always as easy as it should be. Even if a borrower wants to make their payments on time and in full, the CFPB notes that plenty of obstacles can get in their way, like a lack of answers from their loan servicer about whether they qualify for more manageable payment plans. In some instances, loan servicers can intentionally apply borrowers’ payments in a way that causes them to pay more interest or fees in the long run, rather than helping them pay off their loans as quickly as possible. These issues, combined with debt inexperience and ignorance (in some cases), means you’ll be dealing with financially stressed employees in your workplace.

How employers can help

If your workers are showing signs of severe financial stress or depression, whether they’re less focused or productive, they’re missing work frequently due to anxiety-related illnesses or they’re worried about managing their money in the face of student loan payments, you can help. When it comes to financial knowledge, a little bit can make a huge difference.

Unfortunately, student loan burdens are common for employees today, but financial literacy isn’t. The more you can help educate your workers about setting a proper budget, maximizing their emergency savings and efficiently paying off their debt, the less stress they’ll feel about their finances. The result is more productive employees who are focused on accomplishing their money goals instead of worrying about their money fears.

Feeling Sick? Financial Stress Isn’t Just About Numbers

by Ilyce Glink | Sep 28, 2016 | Blog

Are you feeling sick? Do you find yourself just sniffling away, coughing and sneezing? Unable to shake what should be a two-day head cold? The problem might not be germs, but what’s in your wallet.

There are plenty of money-centric benefits to lowering your financial stress, from increased savings to cutting out monthly debt payments, but we don’t often talk about the health benefits that go along with them.

Imagine if your heart didn’t race when you opened up your bills each month or got sick to your stomach thinking about your next mortgage payment.

While it’s easy to write these worries off as purely mental or emotional problems, they can cause serious physical problems over time. The latest research ties your health to your level of financial stress: Lower your level of financial stress, feel better.

Here are some of the major physical benefits researchers have linked to lower financial stress levels and how you can help your workers (not to mention you and your family) achieve them.

Feeling the symptoms

According to the Mayo Clinic, stress manifests itself in all sorts of ways: anxiety, heart disease, depression, headaches and problems with memory and concentration are all common symptoms. These can come from any kind of stress, but with so many Americans reporting elevated levels of financial stress, there’s a good chance your employees have felt sick and experienced these health issues because of their finances.

According to the American Psychological Association’s annual ‘Stress in America’ survey, ‘Money’ and ‘Work’ are the top causes of significant stress for adults-67 and 65 percent-and they’re seeing the effects on their health. More adults reported their health as being ‘fair’ or ‘poor’ in the past year than ever, 23 percent of adults, and there were increases in physical symptoms of stress and poor health as well, including chronic illnesses, high blood pressure, poor sleep, overeating habits and mental health concerns.

According to the survey, nearly one-third of adults claim that their stress has a strong or very strong impact on their physical and mental health, so when your employees face these symptoms they could have problems focusing, feel depressed or even face heart disease in part due to their inability to properly manage their finances.

So, imagine what happens when they lower their level of financial stress – whether by creating a budget that works for them or paying off a longstanding credit card debt – these physical symptoms might start to go away.

If you’re wondering whether you should offer help, consider this: If the choice is between seeing your employees healthy-both physically and financially-or hurting in these ways, the decision is simple.

Changing the system

Too often, we experience the physical symptoms of stress and think the only solution is to breathe deeply and find time to calm down. While dealing with stress in the moment is a good thing (and research shows daily meditation helps, “even a few minutes” according to the Mayo Clinic), it doesn’t solve the real issue: the underlying financial worries causing the stress.

We think financial stress is solvable and you don’t have to be a rocket scientist to do it. Maintaining a positive attitude while solving financial problems is tougher, and we’re sure your employees are doing what they can to keep focused and productive.

But that’s pretty tough, especially if you’re wondering whether you’ll have enough money to pay both the rent and the babysitter at the end of the month. So, without taking action to ease or eliminate their financial problems, the stress will keep coming back and cause more health harm in the long run.

As an employer, financial anxiety distracts your team, decreases retention and increases unexplained absences and health costs. If reducing financial stress also positively impacts these metrics, it’s well worth the time to figure out this piece of the puzzle.

Best Money Moves – helps reduce poor health outcomes caused by financial stress

If your employees are less financially stressed, they’ll experience fewer stress-related physical issues. This means your employees are more likely to be focused, productive and healthy overall, which translates to a more positive work environment. It also means they’ll have lower healthcare costs.

As an employer, you can help by encouraging your employees to not only find ways to manage their stress throughout the day but to eliminate it entirely. Best Money Moves is designed to guide your employees in targeting the areas which cause them the most stress and work to solve them.

You can also help in other ways. Encourage your workers to take advantage of their vacation days or lead by example. Keep an eye on how your own stress manifests itself and show empathy when your employees display similar signs. The more tools they have-and the more support they feel-the better chance your workers will have at lowering their financial stress and enjoying better physical health.

3 Simple Budget Saves That Will Lower Your Financial Stress

by Ilyce Glink | Sep 21, 2016 | Blog

Financial stress is overwhelming – and more so when every little thing seems to pile on top of each other.

With so many financial issues for you to tackle, sometimes it seems like a miracle is the only possible way forward.

Not so. While financial stress can be overwhelming, small budget saves can help you re-float your boat, save and pay off debt. In short, small changes actually can make a huge difference over a relatively small period of time.

You’ve got to keep it simple. Much like paying off a smaller debt first to gain a sense of victory and motivation, your employees can revise their financial strategies in small ways to make things easier for themselves.

Here are three budget saves you can put into place today that will put you on the path to financial success. They won’t alter everyone’s money situation overnight, but give them some time, and keep working at it, and the benefits will show up.

1. Switch to a cash budget. When someone can’t get their spending under control, they end up compounding their problems by piling up credit card debt and high-interest charges. Switching to a cash budget removes these risks by giving them a limited amount to spend that they know they can afford. Here’s how it works: Decide how much you’re going to spend each week, then take out that cash from the bank or ATM and commit to not spending any more until the next week. It’ll take time to get used to having cash in your wallet (we’ve all become so used to the cashless society) and you’ll need to adjust to new spending habits and plan around what you can and cannot afford. Even if you blow your budget for the first few weeks, just stick with it. You’ll soon see positive changes. One study by the Urban Institute showed that those who were reminded throughout the month to choose cash over credit were able to lower their credit card debt. And, that’s key.

2. Make savings – and payments – automatic. Staying on top of multiple monthly payments, from utilities and rent to credit cards and student loans, can be difficult and barely leaves room for you to think about savings. Switching to automatic payments and savings, however, gives you a chance to avoid late charges and increase your savings without thinking about it. Often, employers will allow employees to set up recurring deposits from their paycheck to a savings account each payday to build up emergency or retirement savings without any additional steps. They can pick an amount that’s affordable and realistic, even $20 per month, and over time they may be surprised by how that amount grows. Using automatic payments for recurring monthly expenses can do the same, streamlining payment processes and giving your employees more time to focus on lowering their stress in other ways.

3. Cut out or reduce one expense each month. If you’re in serious money trouble, nothing dashes your hopes for a solid financial future faster than believing that you’re powerless to change it. One way you can take back control is to identify and reduce – or cut out entirely – one expense each month. This could be your cable or cell phone package, commuting costs, money spent dining out or even a morning coffee. Encourage your family (if you have one) to find ways to lower their monthly bills, whether it’s avoiding a splurge or calling the relevant company to ask about other options. Not only will you lower your overall expenses it will help you reduce your financial stress because you’re in much more control of your cash.

Your Best Money Moves: If your employees are struggling with their finances, gaining some knowledge and feeling support from their workplace can make a big difference in their stress levels, if only by letting them know they’re not alone. You can start by sharing small changes like these and encouraging and celebrating the efforts of your workers. Even when the solution is simple, the work behind it can be difficult and your employees will appreciate your support when it comes to their financial stress.

Why 50% of Americans Can’t Understand Their Credit Cards

by Ilyce Glink | Sep 14, 2016 | Blog

Remember life before credit cards?

Best Money Moves Founder/CEO Ilyce Glink remembers her grandfather carrying around a wad of fresh $20 bills, peeling them off one by one to pay for dinner.

Credit cards changed the way we pay for everything. Credit card companies made them easy to use – too easy. That’s why so many of us are carrying around so much credit card debt.

To responsibly use a credit card you have to understand its terms. Unfortunately, many credit cards don’t make their terms and conditions easy for customers to read.

According to a recent study by Creditcards.com, the average credit card agreement is written at an 11th grade reading level and would take 20 minutes to decipher. That might seem okay (after all, most people have graduated from the 11th grade), but 50 percent of Americans read at a 9th grade level or lower, making it difficult for most people to fully understand their rights as a cardholder.

This helps explain why employees repeatedly rank paying off debt as a top source of financial stress: if they can’t understand their credit cards, they can’t use them responsibly. This results in issues with debt, late payments and confusion about how they can pay off their debt quickly.

Missed information

If you don’t read your credit card agreement, you might wind up in trouble: You won’t know the terms and details unique to this card and your usage will be driven by your general credit card knowledge, rather than the habits that work best for this specific card and financial situation.

We learn by observation: If you grow up with parents who regularly carried balances on their cards, you might think this is a perfectly normal way to manage your financial life. It’s not until you read the fine print and see how fast the interest rate charges will rack up and how long it will take you to pay off that debt that you might change how you manage your credit card relationships. This isn’t just about missing out on reward points because of a misunderstanding about how they’re earned, it’s about consumers never learning their rights and responsibilities when it comes to credit card usage, and exposing themselves to unnecessary financial risks.

According to the study, only 26 percent of those surveyed said they regularly read their credit card agreements. If you or your employees or colleagues only read one quarter of the contracts used in your office, your company would pretty quickly find itself in a load of trouble.

Financial stress at work

The study also claims that the less familiar card users are with their credit card’s terms and rules, the more they’ll end up paying to use that card over time in interest charges and fees. The more debt employees carry, the more financial stress they’re going to feel. This stress doesn’t stay confined to their finances – it also spills over into their work and their day-to-day lives. If you want to help, you have to provide your employees with assistance they can use. You can’t change how credit card companies write their contracts, but you can help boost the knowledge your workers have.

Here’s your Best Money Move: The more you know about financial stress and your options when dealing with money, credit cards and debt, the better prepared you’ll be to deal with these issues when they arise.