Money news you can use – Oct. 2021 edition
This is my occasional run-down of interesting money-related news I’ve been reading and that I think might be useful for photographers and other creative entrepreneurs. Do you find this type of news aggregation useful? Let me know what you think.
Financial ‘FOMO’: How Facebook and Instagram Can Lead to Bad Spending Habits
”For many spendthrifts, these platforms are not a mentally safe space. It’s incredibly detrimental to consume so much of this media centered on consumption and the haves with their glamorously airbrushed lives. The documents [Facebook whistleblower Frances] Haugen shared show a system that feeds into users’ low self-esteem.
Social media is producing a new reference group of influencers. In-person peer pressure is bad enough, but now young girls and boys are trying to compete with people they don’t even know. In addition to hyper-sexualization that makes these young adults feel their bodies aren’t good enough, there’s the added supersized burden of dressing to impress on a world stage.”
My thoughts: Yet another reason to limit or completely stop using social media. That saying “comparison is the thief of joy” also comes to mind.
6 Things to Discuss Before Walking Down the Aisle
”If you live in AZ, CA, ID, LA, NV, NM, TX, WA, or WI, you live in a community property state meaning all of your money earned during your marriage is automatically half your spouse’s.
If that is not what you intend, you may wish to speak to an attorney regarding your options including possibly a prenuptial agreement. In addition, once married, you will need to execute power of attorney documents for finances and healthcare. These documents will name agents that act on your behalf if you become incapacitated or incompetent.”
My thoughts: I’ve already been married for several years yet I still enjoy reading these kinds of articles because I usually learn something new, like how many states are community property states (and honestly, I didn’t know the term “community property” until a couple years ago). Anyhow, just from talking to people in my life, I know many couples don’t talk enough about money before partnering up. A 2013 study published in Couple and Family Psychology found that 36.7% of divorcing people cited financial problems as a reason for the divorce. Please learn to communicate about money!
How to Protect Yourself From Online Card Fraud
“The United States has seen a steady rise in online card fraud in recent years, and it accelerated during the pandemic as more people shopped on the internet to avoid brick-and-mortar stores, according to a report this past week from Aite-Novarica Group, a business and technology consultant. Losses from online card fraud are expected to reach almost $8 billion by the end of this year, up from about $6 billion in 2019, the report said.”
My thoughts: If you’re shopping online, use a credit card, not a debit card. Credit cards have more protections than debit cards. And if you must use a debit card, report potential fraud to your bank RIGHT AWAY as it will take time to sort out the issue and get your money back.
Crypto Could Cause 2008-level Meltdown, Bank of England Official Warns
“[The Bank of England’s deputy governor for financial stability, Jon] Cunliffe acknowledged that governments and regulators must be careful not to overreact or classify new approaches as “dangerous” simply because they are different, and also noted that crypto technologies offer a prospect of “radical improvements” in financial services.
However, he contended that although financial stability risks remain limited for now, the current applications of cryptoassets pose a financial stability concern since the majority “have no intrinsic value and are vulnerable to major price corrections.””
My thoughts: In the past six months, I’ve noticed that many financial planners and personal finance experts have been talking about investing in cryptocurrency (here, here and here, for example). So, I’ve been reading a lot – including articles like the one above – to educate myself about cryptocurrencies. I’m not convinced this is a good investment for me, but it might be a good investment for someone else.