Financial Tech Archives - Marygold & Co Website

Smart Investing for Beginners

The FinTech world has served an important function by showing us the importance of being a lifetime investor. Having some of your money invested in the stock market is a great way to support your long-term financial goals. There is a key theme that resonates in all market cycles – the earlier we start to invest the easier it will be to achieve our financial goals. Some people enjoy investing and others see it as a complicated chore, and that’s OK. Just know that it doesn’t have to be complicated. The important thing is to get started.

“Compound interest is the eighth wonder of the world. He who understands it, earns it…he who doesn’t, pays it”. This quote is attributed to Abert Einstein, but it seems dubious. Whether Einstein said it or not, the core message is true that the earlier we start saving for our goals the better off we’ll be.

If you listen to famous investors like Warren Buffet speak they often talk about the importance of making money work for you. Learning the basics of investing will have benefits, such as giving you more income and building your wealth. Investing can be intimidating if you have no experience, but it doesn’t have to be complicated or time-consuming if you focus on some simple themes.

Importance of Investing

There are some obvious reasons why learning how to invest can help your financial situation.

For one, investing will help you build your wealth over time, even when you’re sleeping! This phenomenon is known as passive income, which is a big reason why many people begin investing in the first place. Some people have a long-term goal to live solely off of their passive income streams, which means they have complete freedom to spend their time doing whatever they want!

Investing your money is a way of having your money work for you. We all work hard for the money we earn, so it is important to utilize basic methods to ensure our money is working hard for us. For people who are in debt or simply living paycheck-to-paycheck, learning smart investing for beginners may help you get ahead and break that cycle. By committing to investing a certain percentage of your paycheck, even if it’s just 1%, you can begin to build your wealth and financial security. The most important thing is to get started.

Before we start investing we need to have a good understanding of how much money we have available to commit. Most of us don’t like creating a budget, but it is essential if you feel that you “don’t know where your money goes” each month. If this is you, take a little time to track your expenses for a month or two, it will pay off in the long term.

How Can I Start Investing?

Does your employer offer a retirement plan, like a 401(k)?

If so, smart investing for beginners starts here.

You can usually start by investing as little as 1% of your paycheck. In most cases, the employer typically offers a handful of investment options to choose from. Some employers also provide a “company match”, which means the company will match some of your contributions into your account, but you have to be contributing to get the match. Think of this as free money!

A typical matching arrangement is for an employer to provide a 50% match on the first 6% that you contribute, meaning if you contribute 6% the company will add another 3%. Effectively this is a way to get an increase in your pay, but you have to be contributing to get it. If this is available to you it is a very good place to start! Talk to your supervisor or HR department if you haven’t already.

Focus On Your Goals

Retirement Plans offer a pre-defined option to save for one very important goal.

But what about our other financial goals?

At Marygold & Co, we believe it is helpful to define our specific financial goals.

Defining our goals, and a timeline to achieve them brings clarity.

If you are saving up to buy a new car, it’s important to define when you want to buy it. If you say you want to buy a new car in three years, that helps you to understand whether you’re on track to achieve the goal. So rather than having one generic account where you put your savings, perhaps start by asking yourself what your financial goals are? Most of us have numerous goals, so the more specific we can be the more clarity we’ll have. Ultimately this helps us to stay on track. Some people may only have 2-3 financial goals, while others will have a dozen.

There is no right answer here, the important part is understanding specifically why you are saving.

Tips For Beginners

At Marygold & Co., we want to make it as easy as possible to invest money and build your wealth.

If you’re just a beginner and want to learn how to start smart investing for beginners, we’ve compiled a straightforward checklist that will help you start investing.

Do some basic research

You should do your research before you start investing to know what your options are.

Learn about the different types of investments, and pick out a few that appeal to you. Keep in mind social media is flooded with people bragging about the money they made trading options or “YOLOing” in one stock or cryptocurrency. Try to avoid the FOMO factor. Focus on being a long-term investor.

Open an account

Open an investing account.

Not long ago it was difficult to invest if you didn’t have a lot of money. But now there are numerous options to invest with companies that have low or no minimum balance thresholds.

Transfer money with each paycheck

Inertia is a powerful force, so use it to your advantage!

Decide how much money you’re able to commit towards investing. There’s no right number here- figure out what you’re able to contribute. The important thing is to get started.

Invest – Don’t speculate

Now that you’re transferring money, you need to make sure to actually make your investments.

Diversification is key. Know the difference between speculation (e.g. – the YOLO investors) and investment! We are never going to know more than the large Wall Street firms, so don’t try. Use products that give you the investment opportunity you want at a reasonable fee (typically called the expense ratio). Low-fee Exchange Traded Funds are usually a good place to start.

Think long-term

Over the past 100 years, the stock market has returned about 8% every year.

A prudent way to make money, especially in the stock market, is to employ the “set it and forget it” strategy. If you’re able to invest for multiple decades, that is a strategy that should help you to realize your financial goals. And don’t try to “time” the market. Large and sophisticated investment firms are not able to time the market, so we shouldn’t even try. One of the best ways to make money in the investing world is to be a long-term investor.

How Marygold & Co. Can Help with Investing

Smart investing for beginners begins with being able to track and budget.

Marygold & Co. is revolutionizing expense tracking and budgeting, thanks to this incredible feature called Money Pools.

Money Pools are organized savings pools that allow you to easily divert money into different pools for whatever you’d like to save for.

Additionally, you can easily track your expenses by linking your debit card to your Marygold & Co. account. Marygold & Co. has focused on creating an easy-to-use, helpful interface that makes budgeting and tracking your expenses and investments a piece of cake.

December 17, 2021/by Marygold & Co.

Chad Butler: President, Financial Tech, Mobile Banking Services

The Future of Digital Banking

The way we do banking has certainly changed and doesn’t show any sign of stopping – and that’s just what consumers have shown they are wanting: less traditional banking, more digital banking services. More banking, payment, and investment solutions at our fingertips, less traditional brick-and-mortar branch locations, as well as actual bankers. So, what does the future of digital banking mean and what can we expect as consumers?

What Does Digital Banking Mean?

The ability to access everyday banking functions, like being able to pay others, monitor your card spending, or organize your savings (and even gain interest), is more available and accessible to consumers than what traditional banking used to be able to provide.

The banking features we’re able to utilize on a desktop computer – check balances, pay bills, apply for a loan, etc. – commonly known as online banking, have merged with what we’re now able to do from a mobile device (mobile banking apps). This ability to take care of our personal finance needs and access certain banking features from wherever we may be is what digital banking is all about, according to Forbes.com.

Chad Butler, President and COO of Marygold & Co., elaborated on this ever-changing landscape of digital banking in a recent article published on Worth.com.

Between evolving customer expectations and a pandemic-prompted acceleration of the financial services industry’s digital transformation, digital banking has become a basic requirement for most banks. Today, traditional banks have no option but to adapt in order to remain competitive.
While most banks still focus on building customer-centric digital banking solutions to compete with modern fintech options, many banks have learned the value in allowing fintech companies to leverage their “banking as a platform” (BaaP) options to partner in accessing new customers.
Worth.com – “An Inside Look At The Future Of Digital Banking”

What Does the Future of Digital Banking Look Like?

Traditional banks and mobile banking apps alike must continue to adapt in order to stay competitive in today’s modern banking world.

According to Chad Butler in this recent article, we as consumers can expect to see more and more financial technology tools become increasingly more available (as well as more comprehensive and secure) through mobile banking apps.

We have apps to organize our pictures, our friends, our favorites, etc., and the future of digital banking will bring financial technology tools to help us organize our financial well-being, as well. Structured around our goals and income, digital banking solutions must meet customers’ financial needs in a connected, seamless manner.
Worth.com – “An Inside Look At The Future Of Digital Banking”

December 14, 2021/by Marygold & Co.

Financial Tech, Mobile Banking Services, Timothy Rooney: President of Advisory Services

How to Protect Your Money

So many of us are focused on how we can make the maximum amount of money possible. While this is important, learning how to protect your money is equally as critical. There are many different threats and risks out there that you need to be aware of, such as fraud, identity theft, stolen bank cards, and hackers. Thankfully, there are a variety of measures you can take to help protect your money.

Potential Risks

Fraud: Fraud is a major risk that you need to be aware of. Fraud simply means somebody attempting to deceive you or someone else for either personal or financial gain. An example of this are the spam calls that all of us have been getting about your car’s extended warranty expiring. In this example, the scammer is attempting to deceive you into giving them your credit card or bank account information to then steal your money.
Identity Theft: Identity theft, although it is a form of fraud, is an extremely dangerous risk to your money. Identity theft is where somebody attempts to steal your identity, usually by obtaining your social security number and other important personal information. In some cases they even use digital synthetic identities that are so realistic most fraud detection services are fooled. They then use your identity to open up new credit cards or bank accounts, among other things. The risk of this is that, as the account is tied to your identity, any debt can potentially be your responsibility and severely impact your credit score.
Stolen Bank Cards: Most people, at least once in their life, have checked their bank accounts to see a bunch of charges they didn’t make. Usually, this happens through somebody illegally obtaining your debit or credit card, whether it’s through theft or you simply misplacing your wallet.
Hacking: Another common risk you need to be aware of when learning how to protect your money is a hacker gaining access to your bank accounts. This can happen either through hacking the bank directly (which is extremely difficult, as banks and other financial institutions have a ton of safeguards in place) or by hacking either your phone, app, or username and password.

Best Practices: How to Protect Your Money

Now that we’ve shared a few common risks that you should be aware of, we’d like to give you a few basic, simple best practices that will help you protect your money. You might already be aware of some of these, but they are all important when thinking about how to protect your money.

Check Your Accounts Often

One of the easiest things you can do to protect your money is to check your checking, savings, and credit card accounts daily. Although it might sound a little extreme, taking the 5 minutes to briefly check your accounts allows you to stay on top of any potentially fraudulent transactions.

Monitor your Credit

There are many sources available to monitor your credit and even get notified if your credit is being checked or a new account is being opened in your name.

Lock your credit file when you are not applying for new credit. This can be a simple way to protect your identity and restrict fraudsters from impersonating you even if they gained access to your personal data. In order to lock your credit file, you will need to contact each of the following three credit bureaus: Experian, Equifax, and TransUnion.

Do Research on Your Bank

One of the most important steps you can take in learning how to protect your money is to thoroughly research your current and/or future banks. You will want to make sure your bank is FDIC-insured, which protects your money up to $250,000 per account. Another crucial thing to research is whether or not your bank has good customer service. Lastly, you’ll want to learn about any potential missteps that your bank has had in the past, such as the Wells Fargo scandal a decade ago, where employees were fraudulently opening new accounts without customer awareness.

Don’t Share Your Bank Info With Anyone

This seems like a no-brainer, but it’s actually one of the most common ways to have your identity or money stolen. Unless you are calling your bank directly, under no circumstances should you share your bank account information with anybody, even if they seem legitimate.

Use Strong Passwords & Multi-factor Authentication (MFA)

Strong passwords and MFA can help prevent unauthorized access to your accounts. By having long, complex passwords that you change frequently, you reduce the risk of somebody or a computer program guessing your password. Multi-factor authentication is another way to keep your accounts safe. MFA uses 2+ checks to confirm your identity, such as entering a password and then inputting a numerical code texted to your phone number.

Be Sure You’re Using Secure Devices & Networks

You should only log in to your financial information from a secure, personal device and secure (password-protected) wifi network. It’s much easier for hackers to gain access to your data if you are using an unsecured, public device or wifi network. In a perfect world, you’d have a dedicated computer to access your finances, but this obviously is not realistic for most.

Protect Your Money w/ Marygold & Co.

Marygold & Co. is a new financial services app that’s dedicated to helping organize your financial life and reach your financial goals.

Not only is it revolutionizing budgeting and expense tracking through a new feature called Money Pools, but Marygold & Co. is extremely concerned with safety and security. That’s why we employ state-of-the-art technology like biometrics with facial authentication to determine if a government-issued identification is authentic and a selfie of a live person matches the picture on the ID. This is highly effective because fraudsters don’t like to have their real picture taken and faking a real face is not an easy task.

Other security measures like multifactor authentication and fingerprint credentials offer additional layers of protection once an account is opened.

You shouldn’t entrust your hard-earned money to just anybody, and Marygold & Co. will not only help protect your money but it gives you all the tools needed to push towards your financial goals.

November 13, 2021/by Marygold & Co.

Chad Butler: President, Financial Tech, Mobile Banking Services

Financial Priorities

When it comes to being financially stable and independent in the long term, you should start by prioritizing the various aspects of your financial life. Understanding your financial priorities can reduce the risk of money troubles and help build a framework for a financially secure future.

Marygold & Co. is a banking and financial services app that is designed to help you build your financial plan and keep track of your financial goals. With features like our interest-earning Money Pool savings accounts with automated savings, staying on top of your financial goals is easier than ever.

Determining Where You Stand Financially

Financial planning requires you to think about your financial goals and the progress you are making.

Over time, your goals will change – just like the other aspects of your life. So it will be important to have an easy way to track your goals and change them as needed. But before you establish your financial priorities it is a good idea to assess where you stand today.

To determine your financial status, you have to look at how much you own versus how much you owe. The things you own include the money in your bank accounts (e.g., checking and savings), investments, retirement plan, car, home, etc. The things you owe might include credit card debt, student loans, car loans, etc. You don’t need to have exact amounts of each, but an estimate can give you an idea of where you stand financially. Once you determine this, you can start thinking about how to tackle your priorities.

General Financial Priorities to Follow

Financial priorities will change along with your life stage, but we all encounter different situations in life so the process isn’t uniform for everyone.

And don’t be so hard on yourself! This is an important step on the path to financial independence.

Generally, once you have a steady income, you want to prioritize paying down debt and creating an emergency fund. As you become more established you can ramp up your savings and retirement plan investments. Here are some ways to get started. These will help keep you prepared for emergencies and provide a framework for financial prosperity.

Set a Budget and Fund Your Obligations

First and foremost, create a budget. No one likes doing this, but it is important.

If you are just starting out, you should ensure you have enough money to cover expenses such as rent, food, and transportation. This fund should also include payments on all debt including credit cards.

Do you know the interest rates you are paying on your credit cards and other debt? Most people don’t.

Identify an amount over the minimum you can afford to pay, and apply all of that towards the debt with the highest interest first.

Create an Emergency Fund

Starting an emergency fund is crucial to be financially stable.

Life can surprise us with unexpected emergencies such as losing your job, getting your car repaired, or covering medical expenses. The most important aspect of creating an emergency fund is to get started! Start with a small amount and once you meet your goal you can expand it to further grow your fund.

To routinely add to your emergency fund, schedule regular deposits to your Marygold & Co. Emergency Fund Money Pool savings account. You can manage your transfers to be bi-weekly, monthly, or any time frame that works for you, but it’s good to continuously add to this fund to ensure safety for potential financial difficulties. Ultimately you want to have six months of expenses covered by your emergency fund.

Pay Off Debt

We advise giving the most importance to your short and immediate financial goals and this includes paying off high-interest debt.

Having a load of credit card debt can hold you back from achieving other financial goals.

A good strategy to pay off your credit card debt is to determine which of your accounts have the highest interest rates. Pay these off in-full first while making minimum payments on other accounts with lower interest rates. Use any additional funds to make extra credit card payments, placing the most importance on debts of higher interest. Paying off high-interest debt can relieve you of interest fees and can get you on the right track to saving.

Federal Student Loans

The average American aged 18 to 29 currently has student loan debts. owes roughly $17,000 to $45,000 in student loans, and takes an average of 20 years to completely pay it off.

Student loan debt has been growing faster than other types of household debts, and like other debts, it can hinder you from achieving your financial goals. A strategy to help pay off student loans is to make additional payments whenever you can. This minimizes the duration of your loan period and the interest accumulated. If your loan payments are too difficult for you to make, consider refinancing your loan for a lower interest rate or shorter repayment period. Private lenders don’t offer the same protections as the federal government, so you should only do this if you’ve done your research on at least a few lenders.

Save Towards a Goal/Start a Money Pool

You can start to put money towards a personal goal such as purchasing a new car or buying a new mountain bike.

Organizing your savings with something like Marygold & Co.’s Money Pools will allow you to establish multiple interest-earning savings accounts that support your specific goals and provide you with multiple funding options.

Separating your savings from your spending money enables the financial discipline necessary to stay on top of your financial priorities.

Save For Retirement

It is easy to ignore saving for retirement since it seems so far away. But the beauty of saving for retirement is that it is far away, and so the “miracle” of compounding will provide a tailwind to your saving efforts. It’s smart to start a retirement fund as soon as you can. Retirement accounts generally come in two types: Workplace Retirement Plans and Individual Retirement Accounts. You don’t have to have just one of these accounts, you can contribute to both at the same time if you choose.

Workplace retirement plans, such as 401(k)s and 403(b)s are usually offered by employers to employees.

Does your employer offer one?

If it does, find out if they offer a company match, which means they will also contribute to your account as long as you are contributing. To participate, you can choose to have a portion of your paycheck automatically deposited to your retirement fund. Individual retirement accounts can be opened at most major brokerages or banks, and you can also choose to automate your contributions to your IRAs through automated transfers.

Prioritize with Marygold & Co.

The most important step is to get started!

Marygold & Co. can help you redefine and prioritize the different aspects of your finances. Features like the interest-earning Money Pool savings accounts can help you set aside money for various types of financial goals simultaneously. Additionally, we provide automated funding options to help you reach those goals quicker.

Our free mobile app is available to anyone in the United States, allowing them to send, receive, spend and save through FDIC insured accounts*.

*Marygold & Co. is a financial technology company and not a bank.

October 9, 2021/by Marygold & Co.

Financial Tech, Mobile Banking Services

How to Avoid Identity Theft

You’ve worked hard for the things you have under your name – it’s more than a sinking feeling to find out that someone has stolen your belongings, finances, and identity. It can be a real pain to try and sort it all out once it happens. It’s best to try and take preventative measures so that you’re not a victim of identity theft. Here are some tips on how to avoid identity theft.

What is Identity Theft?

When someone deliberately uses another’s identification, that person is committing identity theft. This information might be a name, a driver’s license number, social security number, a fingerprint, a PIN, a passport, a health card identification, a bank account, an electronic signature, a credit card, or debit card number.

The High Cost of Identity Theft

If you fell victim to identity theft, you’re not alone. Last year, forty-nine million Americans experienced identity theft according to the 2021 Identity Fraud Study by Javelin Strategy & Research. The cost to consumers was $56 billion—for one year!

It’s not just about cleaning out your bank account. With your identity, the thief can make regular bank withdrawals, apply for credit cards, get a loan, buy a car, a house, or a plane ticket.

Writer Asaf Griener paints a frightening scenario. We won’t go into detail here but it is worth taking a look at.

How Technology Helps the Thief

In a NewScientist article “Cyber Crime Made Easy”, the author explains the level to which hackers are making adept use of malicious software. You can purchase an app for credit card theft.

Just as high-tech makes it easy to steal a car, points out CBC’s Sarah Bridge, so too, there is an alarming array of gadgets for identity theft. Ed Oswald describes some of these.

Skimmers

Identity thieves capture data on your debit cards by skimming. A data storage device could be attached to an ATM. They could also be attached to credit card readers. While the transaction is going through a digital copy of your credit card information is being made.

How Can You Combat Skimming?

Never let your credit or debit card out of your sight. Be cautious if a machine looks unusual. Use cards with an EMV chip if possible. Cover the pad when you enter your PIN and always monitor your transactions on your app or statements.

Laptops

Some identity thieves simply drive around looking for unsecured hotspots with their laptop. Then they log into your wireless network looking for vulnerabilities.

How Can You Combat the Laptop Thief?

Make sure your computer’s firewall is up and running. Never leave your home wireless network unsecured. Choose a Wi-Fi password that is hard to crack. Enable all security features on the router.

Your Old Gadgets

How we treat old, broken gadgets is important. Those old gadgets may not work but they contain data. Often before they are discarded, data is not wiped, identity thieves can gather personal information.

How to Combat Identity Theft from Old Gadgets

Be careful what you store there—like passwords and PINs. Keep sensitive information off these devices. Before you discard them, wipe clean every device before you trade it in or sell it. The New York Times offers this easy way to clean data from your device.

Internet Connection

If thieves have one of your credit card numbers, it is easy for them to conceal their actions. All it requires to change a system is a name, address, and a credit card. Once an address is changed, they can open credit cards and other fraudulent accounts in your name. And you probably won’t even realize it until months later!

How Can You Stop Internet Theft?

Use your credit cards wisely. If you lose one, shut it off immediately. Restart it when you know it is safe. Some banks offer a freeze/unfreeze option for your card. If you aren’t sure if you’ve lost it but want to keep your funds protected, this is a great option! Then you don’t have to worry about cancelling your card and waiting for the bank to reissue your new one.

Lost, Stolen, and Compromised Cards

Identity theft is far from rare. Fraud is a global problem that continues to grow. The Insurance Information Institute claims that in 2020, losses from identity theft cases topped $712.4 billion dollars. Which is a 42 percent increase from 2019. In 2020, the second highest reported identity fraud came from credit cards and opening new accounts. By 2021, losses are forecasted to increase to $721.3 billion dollars. It continues to climb annually.

Common Mistakes of Online Banking

We’re lulled into a sense of security because online banking seems so private and safe. Our naiveté blunders can make us easy victims of fraud and identity theft.

Never assume everything is okay.

Check credit card activity and your bank accounts often. Monitor the activity on your accounts. Inform your financial institution if there are any suspicious transactions immediately.

Don’t use predictable and/or unchanging passwords.

I know. It’s easier to keep a password forever. It’s tempting to choose one that makes sense and is easy to recall. Don’t be one of those people who use the same password for several cards!

Make it hard for thieves. Change your passwords often. One banking institution recommends changing your password after every transaction!

Write down new passwords and store them in a safe place—not your smartphone or your computer.

Guard your smartphone at all times.

Sadly, our lives are stored in our smartphones. Over fifty percent are used for online banking. How can you cut the odds of theft? Use only official banking apps.

Don’t decline security features.

Without security alerts to your phone or email, identity thieves can use your information undetected 75% longer. Look for free apps. Some banks even provide information when the account falls below a specific limit.

Don’t avoid online banking.

Your financial institution spends millions bolstering online security and keeping firewalls strong. It would be a shame if you avoided the convenience of online banking simply because it might be risky.

Customized security is tailored to your needs and desires. New features are coming out as technology improves them.

Why Choose Marygold & Co.?

Marygold & Company has over two decades of experience in financial services. Recently launched, the Marygold & Co. Mastercard Debit Card and mobile app gives customers safe FDIC-insured accounts with a custom security dashboard that allows users to take more control of their finances.

Marygold & Co. has created a new card and app where you can control the use of your card with just a toggle. With the Marygold & Co. app, you can even control where your card is used.

With Marygold & Co’s user-friendly, customized security, you can freeze and unfreeze your account or type of transaction like international with the touch of your mobile phone..

We all have those heart-stopping moments when our card goes missing. Whether it was lost, stolen, or misplaced, canceling is time-consuming and inconvenient. You have to contact businesses to stop recurring payments tied to that card. You have to wait to receive a new one.

With Marygold & Co.’s customized security, you need only use your secure app to freeze your card. If it turns up, you merely unfreeze it!

September 2, 2021/by Smartpoint

Financial Tech, Mobile Banking Services

Early Direct Deposit

Direct deposit has gone from being a cutting-edge feature to the default for most workers and employers, and it’s no surprise why. It eliminates the hassle of cashing your check at the bank. Instead, your employer pays you electronically and the money is deposited directly into your bank account. With Marygold & Co.’s early direct deposit, you can get your money up to two days earlier than traditional banks. We make sure to process your deposits as soon as they arrive, which means you’ll most likely have access to your hard-earned money earlier than the scheduled payday.

Benefits of Direct Deposit

When you set up early direct deposit, there are a few advantages that put you ahead of everyone else (other than just getting paid two days earlier):

Early Access and Increased Accessibility

Setting up this feature not only saves time, it is so much more accessible. Since funds are electronically transferred, they are automatically credited.

Gone are the days of waiting for a check to clear.

Direct deposit, along with the rise of banking technology allows you to get your money deposited without having to physically run to the bank.

Some fintech apps, like the Marygold & Co. app, provide you with direct deposit up to two days earlier*, as well as access to all banking features through your phone.

This means your money is always with you wherever you are!

Pay your Bills on Time and Save More

Another bonus is that it takes away the stress of making sure you deposit your check in time to ensure your bills will be paid on time.

Using an account with early direct deposit can give you extra time to pay monthly bills such as rent and utilities.

Not only can you access your paycheck earlier but you can also receive your tax money up to two days early*, before it’s available at traditional banks.

Yes, we’ve concluded that it is an easy way to avoid missing out on payments, but it can also help you save more efficiently.

The Marygold & Co. interest-earning feature called ‘Money Pools‘ can be set up simultaneously with this feature to ensure that you get closer to your savings goals with each payment. You can customize this feature to have a percentage or specific amount of your paycheck deposited directly into your “Money Pool” savings account and start earning interest on your money while building your savings.

Safer Than Paper Checks!

Using online banking and perks such as this one can trigger concerns about safety.

However, direct deposit is considered much safer than being paid through check. Paper checks can easily be lost, stolen, or fraudulently cashed.

With this feature, your money is automatically transferred from your employer’s account into the bank account you choose.

The biggest hazard is ensuring your account information goes to someone you trust.

How Does Direct Deposit Work?

To start the process, your employer’s HR department or the payroll company your employer utilizes submits payroll files – which contain account information, to their bank, which then sends the data to an Automated Clearing House (ACH). A bank-to-bank electronic transfer takes place once the HR department receives account information, and the money is then deposited into your account.

Direct Deposit with Marygold & Co.

More than 93 percent of U.S. workers receive their pay by direct deposit, according to the 2019 survey “Getting Paid In America”. Direct deposit has become the standard for most workers and employers and with Marygold & Co., you can receive your money up to two days early! Marygold & Co. is a free and FDIC-insured banking and financial services app that allows customers to send, receive, spend and save money safely through their mobile devices. Using early direct deposit, along with other Marygold & Co. features will make your finances easier and more convenient to manage.

Redefine the way you bank and join our waitlist.

*Early access to direct deposit funds depends on timing of payer’s submission of deposits. We generally post such deposits on the day they are received which may be up to 2 days earlier than the payer’s scheduled payment date.

August 29, 2021/by Smartpoint

Financial Tech, Mobile Banking Services

How Much to Save Each Month

“I don’t have the money” is a common phrase we hear or say when there’s an option to purchase something that doesn’t necessarily align with our financial goals or budget. But is it because we are actually broke or are we trying to save for something? How do we balance our saving versus spending ratio? Knowing how much to save each month can help alleviate some of the stress that comes with financial situations and decisions. Using an app to track your spending and savings habits is an important step to ensure you are holding yourself accountable.

Calculating How Much to Save Each Month

Morningstar writer Holly Black advocates the 50-30-20 rule. This principle splits your monthly income in three ways.

Half is set aside for necessary living expenses like rent or mortgage, food, heating, phone, credit card or loan payments, and transportation.
30% is earmarked for frills like new clothing, entertainment, gifts, dining, or vacations.
20% is set aside for savings. You might set up savings accounts or invest this money in stocks, bonds, or an RRSP (registered retirement savings plan).

Advantages of the 50-30-20 Rule

If you allocate earnings this way, it is easier to manage your finances. You know exactly how much you have budgeted for expenses and savings for each paycheck.

Furthermore, you can automatically increase your savings as your income rises and/or as expenses in those other areas decrease.

Experian reported that seventy-five percent of Americans have a credit card balance that is carried over at the end of each month. The average balance is over $5,000.

Saving Tips

Making a commitment to saving is the first step.

Create a budget and stick to it.
Don’t “window shop” whether at a brick-and-mortar store or online.
Delay buying. If you fall in love with something, wait a week. By then, you may well have come to your senses.
If you have outstanding debt, avoid buying something unless it is a necessary purchase.
Make a shopping list to help you remember what to buy and stick to only things you need to help prevent impulse purchases.
If it isn’t part of your budget, you can’t afford it.

Making a commitment to saving is important, but make sure you have a way of tracking your spending as well. There are several apps that help keep your budget on track, like Marygold & Co’s.

Food Savings

When shopping, it’s easy to get a little carried away and spend more than expected. These strategies can also help increase your savings while at the grocery store:

Look for generic labels.
Build your weekly menu around flyer specials.
Don’t shop for groceries when you are hungry.
Clip coupons or use a grocery saving app like foodflash or Flipp. Look into cashback options like BeFrugal.com.
Plan and shop for food once a week or twice a month.
Pack lunches instead of eating out. You’ll save money and eat healthier.
Avoid eating out regularly. Make it a special treat.
Try get-togethers with friends instead of eating out. Make it a potluck so it is less work for everyone.

Savings Considerations

The amount you designate for saving each month may be altered by various considerations:

What you are saving for and how much it will cost.
How soon you will need the money for an item.
How much you can afford to save.
Unexpected expenses.
Your debt load: While saving is important, you cannot overlook debts like student loans or unpaid credit card amounts. If unpaid, these debts can cost you more in interest. Always know the interest rate you are being charged on outstanding debt. Interest rates on unpaid loans are significantly higher than the interest you would earn on a savings account.

Are Americans Saving?

The Atlantic explored this question.

They discovered that during the Reagan administration, ninety percent of Americans saved an average of 10% of their income. By 2006, their savings rate was negative 10%.

The current reasons given for the lack of saving include:

Job losses and earnings decline due to economic stressors like COVID-19.
The “I want to enjoy trips, bigger homes, luxury items now and save later mentality”.
Unexpected emergencies including medical expenses, broken appliances, vehicle repairs, home repairs, etc.
Going into debt to purchase a home.
A shift from publicly funded to private schools for children.
Employee retirement programs make it easy for people to ignore the necessity of retirement savings.

How Much Does the Average American Save?

Personal finance writer, Marie Backman, discovered that over seventy percent of Americans have a savings account. However, just over twenty percent of them have an account balance between one and five thousand dollars.

A 2018 Federal Reserve report found that over sixty percent of Americans do not have an emergency fund. That means If an emergency occurred of $400, sixty percent of Americans would have to rob their other accounts, put the amount on credit cards, or borrow funds to cover the expense.

A November 2020 Bankrate.com report records that the average personal debt is almost $95,000. These include mortgages, car loans, student loans, and unpaid credit card balances.

Savings Accounts

Many Americans only have a single savings account. If you are saving for one specific goal, then one savings account will suffice. You might be setting savings aside for future acquisitions like a home or a new car. You might be saving for a vacation.

If you have multiple goals, you might wish to set up separate accounts for each of these savings goals. These goals might include:

Emergency Savings Account

Financial advisors recommend setting up a “rainy day” account. Everyone experiences sad and unexpected events. Perhaps your car breaks down. Maybe your job vanishes in a company downsizing. A work injury or a car accident may result in you temporarily being off work and saddled with medical expenses that are not covered by your insurance. Your first savings goal needs to be to put enough cash in your emergency savings account to cover your necessary expenses for at least three months.

A good choice for your emergency savings is a money market account. It can be a solution when you suddenly need money. Until then, they earn an attractive amount of interest.

Retirement Savings

The time to begin creating a retirement savings account is when you begin earning money. Financial experts estimate that a single household needs $45,000 a year or $61,000 for a couple to retire comfortably.

If your budget allows you to put just a few dollars a month into a high-yield long-term investment, you will be much farther ahead than 65% of Americans who fail to save sufficiently for their golden years. Writer John Maudlin warns against failure to save for retirement.

Special Savings Accounts

If you are saving for a new house, your daughter’s college education, or maybe an anniversary cruise, you might wish to look into setting up a money market account. These accounts pay moderate interest. Withdrawals and transfers from this account are limited. Money market accounts typically have no minimum balance. Interest accrued increases with an increased balance.

You may decide to open separate savings accounts for specific purposes like the kids’ education, a summer home, a new car, or a much-needed vacation.

If you choose accounts with better interest and less liquidity, there will be less temptation to borrow from one or more of these accounts.

What are Money Pool Savings Accounts?

Marygold & Co. has created an app that helps customers establish individual savings goals to save for life’s important milestones. Money Pools are customized and directly aligned with the timelines you create for your savings goals.

How Do Money Pools Work?

Marygold & Co.’s Money Pool savings and financial services app provides customers with a means of separating and organizing their earnings. By using their Money Pool app, Marygold & Co. can help you more effectively reach short-term and long-term savings goals.

August 11, 2021/by Smartpoint

Financial Tech, Mobile Banking Services

Financial Spring Cleaning

Spring is the season for cleaning and that shouldn’t just end at home. Your finances should go through a little spring cleaning themselves. Having an organized financial life can help you better understand the flow of your money. Tracking your income, how you spend it, and how much of it you save can give you the information you need to set financial goals for yourself.

So, while you’re decluttering your closet, remodeling your back patio, consider some financial spring cleaning, as well.

Here are some ways to organize your finances this spring (or anytime, really):

Review and Establish a Budget

To ensure your finances are in order and that they remain that way, it’s best to set up a balanced and realistic budget, if you don’t have one already. Review your monthly income and expenses then establish what your financial goals are. You could be saving for a long-term investment like a down payment on a home or you could be saving for a new gaming system or a getaway.

Whether it’s a long-term or short-term goal, budgeting is essential to making sure those goals are achieved. Organize your budget on a simple spreadsheet and review it often to ensure you are on track.

Having a budget will make it easier for you to reach your savings goals because it’ll help you determine how much money you can spend and how much you need to put away. You don’t need to plan out the rest of the year perfectly but instead start by creating a monthly budget, then track your finances for that month. Once you get into the habit, you’ll find yourself becoming a budgeting expert.

Set up a Money Pool/Automated Savings

One way to keep yourself organized financially is to set up automated savings, or an interest-earning Money Pool, like the one we offer at Marygold & Co.

Having a Money Pool allows you to separate and categorize your finances all within one account, making it easy for customers to track multiple savings goals at once.

Each individual can customize their automated savings to best align with their goals and current financial standing.

You can choose to contribute to your savings goals on a bi-weekly or monthly basis, and the amount you deposit is up to your discretion as well.

Automating your savings will help prioritize your goals and will reduce the temptation to overspend. You don’t even have to worry about making those regular deposits, it’s all done for you!

Pay Off Outstanding Payments

Look over any outstanding payments, if you have the means to pay them off, then do so. If not, this is the time to work out a way to pay your debts off.

Is there anything laying around your house you could sell? Are there extra shifts you could pick up at work?

Find opportunities that’ll help you earn that extra income to help you pay off your debts.

If you are unable to pay everything off right away, setting up a debt repayment plan can help you stay on track. While you may not pay everything off in one go, at least you have taken steps to reduce that debt and eventually eliminate it.

Make sure you include your debt payment plan in your budget.

This will help you stay on top of your payments by ensuring there is money available in your checking account to contribute to this payment plan.

Automatic Billing and Investments

Having your bills automated can help you ensure that they are always paid on time and that you’re not rummaging around for extra cash to meet your phone bill payment at the end of the month.

The best part about automatic billing is you don’t even have to think about it, it is automatic after all.

Additionally, you can even set up automatic deposits to your IRA or 401k investments. Automating deposits into these accounts will ensure you’re continually investing your funds.

The advantages of investing your money include reducing your taxable income for the year.

Analyze Your Spending Habits

Analyzing your spending habits will help you point out your spending habits, bad and good. When looking over your spending habits, you might find some patterns that are preventing you from achieving your financial goals.

An important step while spring cleaning your finances is to look over your spending habits and find areas where you can save.

Are there any unnecessary monthly subscriptions billed to your credit card?

Are there unnecessary transactions you can eliminate?

These are important questions to ask yourself when analyzing your spending habits. Find areas in your daily life where you can save. Maybe pack a lunch instead of ordering out every day, you’ll definitely see big rewards from the small changes you make in your daily habits.

If you lack financial discipline, the Marygold & Co. app can help. The customizable security dashboard allows customers to limit where the card can be used.

Accounts can also be turned on or off – which can also remove the temptation to unnecessarily spend.

Clean Up and Shred Old Paperwork

It’s easy for those paper bills and bank statements to pile up on the corner of your table.

Marygold & Co. can help you keep your finances organized. The best part about the Marygold & Co. app is that you won’t have to worry about paper – checks, receipts, pay stubs, etc.

Take the time to shred and discard any old paperwork. Make sure you dispose of these documents properly as they contain very sensitive information including personal information and bank statements. We recommend using a shredder to ensure these documents are properly destroyed.

Marygold & Co. Makes It Easy

Marygold & Co. can help you sort your finances and keep them organized throughout the year through an innovative new app launching this spring.

The FDIC-insured fintech app offers customers interest-earning savings accounts and allows them to send, receive, spend and save securely through their mobile device.

Control and organize your finances easily with Marygold & Co.

Your finances will never have to go through a spring cleaning again – instead, you can keep them clean and organized.

June 9, 2021/by Smartpoint

Financial Tech

Is Contactless Payment Safe?

Thanks to COVID-19, most of us really don’t want to hand our card to someone or touch a potentially contaminated PIN pad on a POS device. Questions about passing germs and touching common surfaces have boiled to the top of our everyday thoughts.

What if there was a way to pay without worrying about the cashier handling your card or whether the payment processor has been sanitized?

Let me introduce you to the world’s newest buzzwords: contactless payments.

What Are Contactless Payments?

Investopedia defines contactless payment as a “secure method for consumers to purchase products or services by using a debit, credit, smartcard or another payment device by using radio frequency identification (RFID) technology and near-field communication (NFC).”

Now that may sound confusing. Essentially a contactless payment is exactly what the title states – a way for you to make a transaction without handing the card to the cashier, swiping your card, or even touching a point-of-sale terminal. This process allows customers to tap-to-pay rather than inserting your card into a machine. Contactless transactions are made through your phone, card, watch, key fob, bracelet, or other enabled items.

However, only NFC-enabled cards allow for no-touch transactions. Your smartphone is already equipped with this chip for services like Apple Pay and Google Pay. Most banking cards are being issued with the NFC chip as the U.S. begins to migrate towards this new tap-to-pay technology. If you have noticed the sideways wifi symbol on your card, this is an indication that your card has the tap-to-pay functionality.

Technology Behind Contactless Payment

Contactless payments are possible through near-field communication (NFC). Both the card and card reader must be equipped with this in order for the transaction to work.

This technology allows the chip in your card – or phone or smart-watch – to emit secure, short-range radio waves that communicate with the point-of-sale (POS) terminal. Purchases made using this method are as simple as holding your payment method near the POS terminal.

The History of Contactless Payment

Surprisingly enough, contactless payment has been around for decades. The first example was in Seoul, South Korea in 1995 when the transit system began to use contactless bus passes.

Since then, and especially more recently, the method has exponentially grown.

The United States is slightly slower than other countries in adopting new transaction methods. However, most retailers have moved over to NFC-capable terminals and almost all major banks in America offer ways to make contactless payments.

As the world is trying to socially distance and stay healthy, contactless payment is gaining more popularity. Mastercard reported that there was an uptick of over forty percent in contactless payments in 2020.

However, being creatures of habit, many people still have trouble trusting this new method of payment versus the traditional way of paying.

This brings us to the question – is contactless payment safe?

In short, yes.

How Safe is Contactless Payment?

Many people fear that sending data wirelessly is easily intercepted. This is certainly not the case with contactless payment. For all intents and purposes, it’s just as safe as using the chip reader.

Any time information is shared between a payment method and POS terminal, the data is encrypted. Furthermore, to ensure the process is even safer, the transaction uses a one-time code that has no value outside of that transaction.

Meaning even if someone was able to get the information from the two inches between your payment and the card reader, the information would be essentially useless.

Compared to the old magnetic strip technology, contactless payment is exponentially safer. With magnetic strips, people could steal and clone the data on your card and make a completely new one, leading to fraud. This process is not possible with NFC/EMV chips.

Why Should I Use Contactless Payment?

Many people are coming around to contactless. In fact, one in three card payments is now contactless. But if you’re still not convinced, consider these advantages for contactless payments.

It’s Secure

Security is (and should be) a top priority for most businesses, especially in the fintech industry. NFC technology certainly helps make transactions as secure as possible. As the transaction goes through, all data is encrypted and uses a unique, one-time code, making it nearly impossible to clone the data. Secondly, the card or mobile device must be within centimeters of the POS terminal for tap-to-pay to work. Thirdly, the transaction is verified by using two-factor authentication or fingerprint when using your mobile device.

It’s Fast

Contactless payments don’t require a Personal Identification Number (PIN). It’s as simple as holding your card or phone up to the reader – and you’re done. Much faster compared to inserting a card in the chip reader, declining cash back, then entering your PIN – all to wait fifteen seconds for the payment to go through.

It’s Contact-Free

This is a given – but it can be understated. We’re all trying to stay safe and healthy. The pandemic has made many realize how dirty public surfaces can be. Yes, companies are taking extra measures to ensure everything is cleaned and sanitized – but this doesn’t eliminate the risk. With contactless payments, you don’t need to touch the reader that potentially hundreds of others already have.

It’s Convenient

Contactless doesn’t have to be done with a debit or credit card. Think about Apple Pay, Google Pay, or Samsung Pay – these are virtual wallets that eliminate the need to carry around a physical wallet. Say you’re going to the beach or on a hike – you don’t want to lose your wallet, but may want to buy something on your outing. Using a contactless payment method makes it possible to pay without physically carrying your card as long as you have your mobile phone or NFC-enabled bracelet or key fob like those offered at Marygold & Co.

Risks Of Contactless Payments

Like anything, contactless payments have risks, but NFC technology is so advanced it is less susceptible to hackers than traditional card technology and improvements are adding layers of security to protect user data. However, the impossibility of interception can’t be completely guaranteed:

Because there is no PIN entered when using contactless, whoever is physically holding the card is able to make transactions. However, there are normally lower limits set on the card for extra protection. Enhanced security controls, like Marygold & Co. offers, will enable you to manage your own limits and turn on/off contactless payment capabilities. Keep track of your card and freeze it anytime one goes missing.

How to Get Started

Most banks will offer forms of contactless payment, be it on your smartphone or your credit card.

Start by using Marygold & Co. for all your financial needs and transactions.

March 26, 2021/by Smartpoint

Financial Tech

How to Keep More of Your Paycheck

Budgeting your paycheck is something everyone should do, but it doesn’t mean everybody does. Sometimes, the hardest thing about saving is starting. If you find yourself spending beyond your paycheck, stretching it way too thin, or not contributing to your savings account – it might be time to create a plan to begin saving.

30% of Americans have a financial plan that includes savings.
69% of Americans have less than $1,000 in a savings account.
$3,500 is the median amount of savings for American households.

There are several things you can do to save more money from your paycheck each month. By developing a simple and realistic strategy that works for you, you’ll be closer to reaching your financial goals.

Here are some tips on how to keep more of your paycheck:

Budget Your Money

Start combing through your monthly spending so you can see where you can cut frivolous spending habits. Some helpful tools would be to use spreadsheets or track multiple savings goals on the Marygold & Co. mobile app. First, prioritize true essentials like rent, transportation, bills, food, and debt. Once you figure out how much you need for bills and other essential expenses, you will need to create a savings goal. Your second priority should be saving or investing in contribution accounts. Then if your budget allows for it, you can use the rest of the money on ‘emotional’ spending.

Budgeting will help you spend recreational money better since you’re more likely to be mindful about what you choose to spend it on. Placing this limit on yourself is a form of financial discipline and will help get you the most out of your paycheck.

50/30/20 Rule

According to the 50/30/20 rule, experts recommend reserving 50% of your budget for essentials such as rent and groceries, 30% for discretionary spending, and a minimum of 20% to be put into your savings. However, this system simply does not work for everyone. Your finances are personal, so you need to create a budget that works best for you.

If you have a high income, it’d be wise to spend less on discretionary items and save a larger percentage of your income. If you find yourself in the opposite situation, saving 20% of your paycheck might be stretching it too thin or currently impossible. However, don’t beat yourself up if you can’t put away 20% each month. Just remember, saving something is always better than saving nothing.

The most important question to ask yourself is, what are you saving for? Do you want to buy a house? Do you want to build an emergency fund? Are you trying to pay off debt? If you have an endpoint to look forward to, you will be encouraged and motivated to accomplish your savings goal.

Pay Yourself First Method

Pay yourself first is a budgeting technique that is as simple as the title states. Take your net monthly income total, subtract your true essentials and your savings goals and the remainder of the paycheck is what you have left for discretionary spending.

For example, say your net monthly income is $4,000. Your bills like rent, utilities, food, phone bill, medical, car insurance, car payment, student loans, and credit card bill equate to $1,800. You want to save an average of $900 a month for your vacation fund, emergency fund, debt, and a new TV. Subtract the $1,800 + $900 from your $4,000 net income. You have $1,300 left for morning coffee, happy hour, and other frivolous expenses. You can set up a direct deposit with your employer so that your wages go directly into a savings account. This ensures that money is put away every payday, first.

Start a Money Pool and Automated Savings

To ensure you are on track with your financial goals, you can set up a Money Pool, like the one we offer at Marygold & Co for each of your goals. These automated and FDIC-insured savings accounts allow you to set a specific goal amount and the frequency you want the money transferred into your savings. Customers are also able to instantly track their savings progress anytime, anywhere from their smartphones and prioritize their goals.

This saving option can be a great way to build an emergency savings fund or track progress towards a specific goal, like a new mountain bike. Separating each of your savings goals from your spending money will give you the financial discipline needed to help you save more.

Save More, Spend Less

This one is obvious. However, habits do get expensive. The daily coffee runs, $15 lunches, and after-work drinks can add up very fast. If you want to keep more of your paycheck, it’s best to find areas in your life where you can be more frugal. Here are some examples:

Try preparing food ahead of time, reducing the amount you spend on takeout.
Grocery shop with a list, and don’t stray from it. With a list, it’s easy to know exactly what you need instead of aimlessly wandering around the grocery store and picking up unnecessary purchases. Shopping with a list can also help you save money by helping you waste less food.
Stop emotional and impulsive shopping, especially online. If you have your credit card data saved online, you will be more tempted to overspend. Removing this shortcut can lessen the temptation to make an impulse purchase.
Cancel unnecessary subscriptions or services. Go through your monthly statement and see if there is anything you can remove from your monthly bill. If there is a streaming service you don’t use or an insurance service you don’t need, consider canceling it.
Financial experts suggest using your debit card more often than a credit card. It’s wiser to spend the money you actually have if it’s really necessary. Spending with a debit card will keep you accountable for your purchases. It will also prevent you from getting a credit card bill at the end of the month that you can’t pay off – leaving you penalties and debt.

Turn Up Your Contribution Rate

An important step to reducing taxes and building your retirement fund is to contribute to a tax-advantaged retirement plan. Find out if your employer offers a 401(k) plan that you can contribute to.

First things first, you must find out what your annual limits on contributions are. If you’re not already contributing the maximum allowed, consider increasing your contribution rate. You can contribute to your 401(k) tax-deferred, which means you pay no income tax until you withdraw distributions.

Don’t wait for your next paycheck to start saving. You can’t get ahead if you don’t start now.

Simplifying your saving techniques by starting an automated Money Pool with Marygold & Co. will help you organize and create consistency with your spending and savings – while allowing you to keep track of your financial goals.

Don’t let impulsive spending and a lack of savings push your paycheck to its brink. With a proper plan and good discipline, you’ll be saving successfully in no time.

March 13, 2021/by Smartpoint