As the hustle and bustle of the season starts to intensify and take our focus away from other priorities there are opportunities for us to make mistakes, especially financial mistakes, because we are really not paying attention to that part of our life.
What are some of the financial mistakes people make during the holidays
What can happen if we aren’t paying attention to our accounts?
- Not paying attention to what’s happening with their accounts
- Falling victim to fraud or scams
- Forgetting to perform important transactions
- Letting good financial habits have a holiday
This is when we can overdraw our checking account, miss a fraudulent transaction, or even charge too much on our credit card. The best way to avoid any of these is to setup activity and account alerts so you are always informed and don’t have to take any action.
What are some of the frauds or scams to avoid this time of year?
The phishing emails, texts or phone calls where people are attempting to get personal information. It might be that they ask you to confirm payment regarding an online order or say your card was denied and you need to re-enter it to just share a couple of the more common scams.
Are there any other scams or frauds to be concerned with during the holidays?
If anyone is a major online shopper it is important to track your purchases and make certain you receive the correct merchandise. A growing scam is to sell one product, deliver another and then make it very difficult to return or exchange the merchandise. Many times these retailers spoof legitimate sites to get consumers to make purchases.
Why types of transactions do people sometimes miss?
It is generally the ones that are not every month. Perhaps it is a quarterly insurance bill, making their final 529 plan contribution, or some other time sensitive financial transaction. Automating your payments or using a budget would be the best way to remember to finalize these transactions.
What is the best way to avoid making these holiday financial mistakes?
Focus on using good money habits such as establishing a holiday budget, setting up alerts on financial accounts, curb impulse buys by using comparison shopping as a way to make certain you really can afford to make that purchase and finally, be even more vigilant against scams.