Money
Protect Your Privacy Online
The Web can make your financial life hum more efficiently, but money laundering schemes and credit card predators lurk in its shadows.
Learn how to keep your business to yourself online.
By Selena Maranjian
 Cyberspace gets a bad rap sometimes. Sure, at some less-than-reputable Web sites, you're taking a chance handing over personal information. But there are plenty of easy ways to keep your financial info private and your home computer safe, without sacrificing the advantages of 21st century technology. Here are some tips:
-
Control those cookies. Set your Web browser to let you know when various parties want to put "cookies"—files that can be read by an outside Web server—on your computer and then accept or deny them. Some cookies are useful, permitting sites you use frequently to remember who you are so you don't have to sign in every day. A less desirable cookie would be one from an advertising company that tracks all the Web sites you visit and gathers data.
-
Have an alias. If you use your main e-mail address in public online arenas such as message boards or chat rooms, you run the risk of spammers finding it and then sending you gobs of e-mails about Nigerian get-rich-quick schemes, barnyard animals, and more. Avoid this scenario by maintaining a separate e-mail account for public consumption. If it gets abused, you can easily kill it and open another, without having to alert everyone you know. You can get free e-mail accounts at www..hotmail.com and www.yahoo.com .
-
Consider subscribing to an anti-virus/security service such as those offered by McAfee (www.mcafee.com) or Norton (www.symantec.com). They can regularly check your computer for viruses and spyware and can serve as firewalls, keeping intruders out. A firewall is especially important if you routinely leave your computer running for long periods, as many people with cable modems now do. Consider turning off such computers when you're not using them.
-
Don't reply to "spam" —unsolicited e-mails you receive—even if you're urged to do so in order to be taken off a mailing list. They're usually sent to hordes of e-mail addresses, many of which are defunct. By replying, you're signaling that your e-mail address is a good one. Instead of less spam mail, you'll likely end up with more.
-
Cover your bases when entering contests or sweepstakes online. Check a site's privacy policy to be sure the personal information you give will not be sold to marketers.
-
Don't get caught in a "phish" net . Beware of seemingly authentic and urgent e-mails from your bank or an online entity that you use (such as eBay, PayPal, or AOL) saying that you need to click a link and update your account information (a practice called "phishing"). If your bank urgently needs information from you, it won't ask by e-mail. If you want to make sure your account information at a Web site is correct, go there yourself and check. Clicking a link in an unsolicited e-mail that looks like it will take you to Amazon.com may actually take you to a phony look-alike site, where you'll be asked for your credit card numbers.
-
Never assume that e-mails are private . Employers sometimes monitor them, and so can some snooping strangers.
-
When entering your credit card numbers or other personal information on a Web site you trust (such as that of a major online retailer), make sure your connection is secure . At the bottom or top of your Web browser's window, look for an icon such as a closed padlock or an unbroken key. Or look at the Web page address. A secure page's address should begin with "https://" instead of "http://".
-
Automate Your Financial Life
Put paychecks, payments, and pension savings on auto-pilot.
 If you're a teacher, especially a new one, you're probably thinking more about lesson plans than financial plans. But you can save some headaches and worries by putting your finances on auto-pilot.
For starters, have your paycheck direct-deposited into your main bank account. You can have some of it automatically deposited into a savings account too. While you're at it, automate your retirement savings. Chances are, your employer already deducts some money for your pension plan each paycheck. But don't stop there. If your district offers a supplemental retirement savings plan, consider participating in it. (Some employers will even match a portion of your contributions—that's free money!) Aim to save and invest at least 10 percent of your income now for a more comfortable future. Start small and gradually bump it up. Finally, have recurring bills (such as utilities, cable TV, etc.) paid automatically via your checking account.
|
$ave Those Receipts!
The tax code won't ever be as hot a read as Dan Brown's latest, but
$ave Those Receipts!
The tax code won't ever be as hot a read as Dan Brown's latest, but it can help you earn back some of the cash you spend on your class (and we know it's a lot.)
Did you know that teachers get a special tax break? Qualifying educators (and others working in school systems) who buy materials for their classes may deduct up to $250. Qualifying items include, books, lesson plans, software, flash cards, and crayons. Better still, you can claim the deduction right on your 1040 without having to itemize.
A recent NEA survey found that the average out-of-pocket amount teachers spend on class supplies is $443. Such a teacher would likely be able to claim a full $250 deduction, effectively reducing his or her income by that amount. If the educator were in a 25 percent tax bracket, that would amount to a significant savings of $62.50.
Learn more at www.irs.gov and www.bankrate.com/brm/itax/tips/20030213a1.asp. And keep an eye out for developments—there's a bill in Congress aimed at broadening the deduction and upping it to $400. And if you haven't yet, make up a tax folder and round up those receipts for supplies you buy through the end of this year.
Drive a Hard Bargain
Don't fear the dealers on your next car-buying outing. Be prepared and you can beat them at their own game.
Who do you think has the advantage when you walk into a car dealership—you, who buys a car once every few years, or the salesperson, who negotiates sales every day? (Hint: it's probably not you.) You don't have to be a master negotiator, though. A little research and a bit of strategy can pay off.
First, fire up your computer and visit www.edmunds.com, www.carbuyingtips .com, and www.cars.com for more info about buying a car. Consider renting the contenders for an extended test drive. Minimize haggling by getting online quotes and firm prices from www.autobytel.com, www.carmax.com, www.autonation.com, and www.carsdirect.com .
If you walk into a dealership knowing what various models and options really cost and what incentives the dealer is working with, you'll be better off. Aim to pay perhaps 2 to 3 percent above the dealer invoice cost. To minimize negotiations, you can control the process more by e-mailing or faxing local dealerships. Tell them exactly which make, model, style, and options you want and ask them to send you their best price.
If you're buying a used car, check out its history for any red flags at Web sites such as www.carfax.com. You'll need the vehicle identification number (VIN). The best times to buy a vehicle are the end of the year, when people are focusing on holidays, not cars, and summer to fall, when dealers need to make room for next year's models.
|
Illustration: Robin Jareaux
|
