Skimm Money: Is Your Money Safe?

The money stories everyone’s talking about.

Do you practice “Bare Minimum Monday”? Some say it could help alleviate stress for the upcoming workweek, but our only question: Does it help Sunday Scaries, though?

The stock market took a huge plunge this morning, after a disappointing jobs report stoked fears of a recession. As for what you should do? Maybe nothing.

Would you buy a ticket to your friend’s wedding? This couple assumed their friends would. Hopefully cake was included.

Data from the US Chamber of Commerce estimates that closing the racial equity gap could mean an extra $8 trillion in GDP by 2050. A good place to start? Supporting Black working mothers.

Would you try this monthly saving hack? One TikToker shares her method to avoid impulse purchases — while still giving yourself a little dopamine hit.

There’s no LOL in OOO … or is there? Some workers are getting creative with their corporate communication. “Contact literally anyone else but me.” 

P.S. Wake up to today’s most important stories right in your inbox by signing up for the Daily Skimm. Millions of your friends have already done it.  

How the news affects your finances.

Is Your Money Safe?

With all the ways to tap, swipe, and click to pay today, our cashless economy comes with a unique set of risks. Recently, a routine update by cybersecurity firm CrowdStrike led to a global software outage — grounding flights, blocking emails, and costing Fortune 500 companies more than $5.4 billion. Does this dependence on tech make your own sensitive money information more exposed to harm?

A report that looked at 22 major U.S. banks found that half have “insufficient” or “weak” risk management protocols in place, making them vulnerable to cyberattacks, employee mistakes, or tech malfunctions. Even if your bank is secure, the risk of identity fraud is still there: Financial losses from all types of fraud topped $10 billion in 2023, according to a report from the Federal Trade Commission. So, unless you’re surviving on cash from under your mattress (which is also risky, btw), banking in today’s fintech world simply carries liability.  

Here are some easy things you can do to armor up your financial security and protect your money.  

Your move:

• Know exactly where you’re banking. Let's be clear: Not all fintech apps and products e are “banks” in the way we’ve become familiar with the institutions — some are standalone “nonbank companies.” Before depositing money into any financial institution, make sure it’s Federal Deposit Insurance Corporation (FDIC)-insured, which guarantees that even if the company goes under, your deposits are protected.  Some of these financial apps that have recently faced bankruptcy were not FDIC-insured, leaving customers without access to their funds. “Look at how they keep your data safe,” says Taimur Ijlal, a tech expert and information security leader at Netify. “Read reviews and see how they’ve handled security issues.”

• Use strong passwords. “YourNameBirthday!” just isn’t going to cut it. Use a password manager to store strong, unique passwords, suggests Ijlal. Enable two-factor authentication, for an extra layer of security. 

• Pay attention to your info. Data breaches can occur through no fault of your own (looking at you, Ticketmaster and AT&T). When it happens, change your password and take advantage of any free credit monitoring service that is offered by the company. It’s always a good idea to regularly check your credit report and make sure you recognize all charges and accounts, says Ijlal. (Get your credit report for free annually from each of the three credit bureaus).

We know how easy it can be for admin activities to fall to the bottom of your to-do list. Seriously. One of our editors has been meaning to get an employer-independent life insurance policy since her son was born…three and a half years ago. Now, she’s finally taken the first step: a call with a New York Life financial professional. Head here to see how it went — and how you can schedule and prepare for your own (free) introductory call.

We asked you to vote on a question you’d like answered. The winner was:

What percentage of my portfolio should be stocks vs. bonds?

FEATURED EXPERT:

Lauren Genuardi

Certified Financial Planner and CCO and managing partner at Expressive Wealth

Stocks and bonds both play an important part in your portfolio, helping to balance risk with growth. Stocks are ownership of companies and represent the potential for big gains (or equally big losses), while bonds are loans to governments and companies that come with a promise that you’ll be paid back with interest. The potential growth of stocks can supercharge your money over time, but in a down market, they’re the riskiest part of an investor’s portfolio. “That’s where bonds enter the picture,” says Genuardi. “Bonds are considered ‘stable’ and are not typically expected to fluctuate much at all.” (Related: Why the Stock Market Is Freaking Out Right Now)

While allocation of the two depends on an investor’s age and risk profile, a common rule of thumb has traditionally been a 60% stock, 40% bond split. Recently, high interest rates have meant that bonds have had higher returns than usual. (Related: Why You Should Be Taking a Hard Look at Your Investments Right Now)

A certified financial planner (CFP) can give you insight into the market and figure out the proportion that makes sense for you. “Choosing an asset allocation is less about following an arbitrary rule, but really aligned to understanding your financial situation,” says Genuardi.

One act of financial self-care you can do in five minutes.

Do an energy audit

Is your electricity bill climbing beyond the rising temperatures outside? Signing up for a home energy assessment to get a complete picture of your home’s energy use could slash your monthly costs. You can either DIY by scrutinizing past utility bills, visually inspecting appliances, and adjusting usage or request an assessment from a pro such as your utility company (prices can range from $100 to $600+). Uncovering inefficiencies can help you save up to 25% on your bill — money you can use to spring for an upgraded A/C.