Beware of your information and payment cards

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In these days people consider using debit and credit cards as a routine. You can pay and withdraw from your credit card if you have enough money on your account. You can also draw a loan from a bank with your credit card and so you should use it wisely and give the money back to earn on it. So the credit cards contain all information and also identification data, chip and the newest one – contactless – called RFID – technology / radio frequency identification.

There are a lot of methods by which you can lose your data and money.

  1. Share your data carefully.

If you provide your data to different companies – you might have a card collecting points, you do react to various „great“ offers. Then you SHOULD realize that you provide your personal data. Are you sure that the company has saved your personal data carefully? Are you sure that you did not let this company to share that data? Do you get more and more emails and phone calls with offers? Then you should reassess your approach to whom you usually give your personal data.

  1. Providing your credit card information on a website, e – shops.

Then watch out. Use only well known sites if you want to pay by credit card on the internet. If it is necessary to do that it is better to separate the money on your account, bigger part put into savings account and the rest of money leave to normal operating minimum. Look for other ways of payment.

  1. Visit just secure sites, open only requested and safe emails.

It means that only the sites where the address starts ‘https’ are secured. If the address starts ‘http’ it means that it is not probably saved. If you open a site or email whose sender you do not know (phishing) so your computer can be „infected“, your operation and data from your computer can be exploited (beware that your mobile can be also „infected“).  Remember the attempts to send faked entrance sites to internet banking on behalf of the bank. As a result of this there could be a risk of fraud and theft.  You should always thoroughly check the transaction SMS from the bank if the amount and account is correct. By the way it is also important to have an antivirus program in your smartphone if you want to make a banking transaction via it.

  1. Skimming, copying data from the credit card and PIN tracing

It is well known that ATM are the subjects of attack and the reader / scanner can be installed on them. The reader / scanner is a device that is able to copy the card for the subsequent production or just use it. The attackers are trying so that you can see the cameras newly installed that are invisible and are able to read the PIN. So be careful when you use your PIN. Protect your keyboard so that the PIN can’t be traced from any side.

And if you have a contactless card that contains RFIP technology (radio frequency identification technology) so you can only put your card to the reader and the payment is done (up to a certain limit). Yes, it is true that this kind of technology is very comfortable but there is also a risk that data can be misused if a scanner is close to a reader/scanner of data. The security workers argue about it but there is always a risk. What can we do about it???

  1. First of all you should make a limit for one transaction and also a limit for a daily use.
  2. You should check your account balance and when there is any doubt or suspicion, react immediately.
  3. There exist special cases or purses that can block the risk of storing card data.

The purpose of this article is not to frighten, but to raise caution. Yes, convenience, speed, simplicity and lower related costs to the modern times, but it is necessary to monitor risks. And that is one of many attributes of today’s modern financial literacy educated person.

Third FLY Project Meeting

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The Third FLY Project Meeting was held in the beautiful city of Florence from the 30th September to the 1st of October 2015. Hosted by our former Italian partners TK Formazione s,r,l the two days of meetings proved to be extremely valuable and rewarding.

All aspects of the project to date were fully discussed and plans were put in place to take the project on to the next important phase when workshops are planned and then delivered to the individuals in our target groups.

Unfortunately, due to unforeseen circumstances TK Formazione s,r,l had to withdraw from the FLY Project in October 2015. We are sorry to have lost such a valuable partner and thank them for their valuable contribution to the FLY project in the year that they were cooperating.

 

What is your Money Personality Type?

This very ‘non-scientific’ quick quiz has appeared on the ‘Money makes Sense’ Financial literacy website in the UK.  It is targeted specifically at Secondary age students but works for older people too! There are 10 light-hearted questions to answer. When you have completed them it gives you an assessment of your attitude to money.

Why not give it a go by clicking HERE!

Jak poznat dobrého finančního poradce…

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Svět financí je složitý a laik se v něm jen obtížně orientuje. Z tohoto důvodu mnoho z nás vyhledá odbornou pomoc finančního poradce. Jak ale poznáme, že nám poradce poskytuje kvalitní služby?

Níže uvádíme několik užitečných tipů, jak poznat dobrého finančního poradce:

  1. Finanční poradce není obchodní zástupce

Obchodní zástupce většinou zastupuje jednu firmu a nedá Vám objektivní srovnání různých finančních produktů. Finanční poradce naopak hledá různá řešení pro různé potřeby svých klientů, disponuje nabídkou více produktů od více společností.

  1. Informuje, vše ochotně vysvětlí

Finanční poradce musí být schopný navržená řešení vysvětlit a znát jejich souvislost s plněním vašich osobních cílů. Měl by být schopný zdůvodnit výběr konkrétních produktů a představit vám také dostupné alternativy. Nehovoří pouze o výhodách, ale upozorní také na rizika a případné nevýhody navržených produktů.

  1. Nejprve naslouchá, potom navrhuje řešení

Finanční poradce nejprve naslouchá. Zjišťuje vaše plány a cíle, finanční možnosti, aktuální uzavřené smlouvy. Finanční poradce nikdy nepřichází na první schůzku s nabídkou konkrétních produktů a plánů.

  1. Certifikace je pro něj základ

Finanční poradenství je legislativně upraveno a poradci musí dodržovat řadu striktních pravidel. Investujte čas do prověření svého poradce. Můžete využít server, který za vás ověří vašeho finančního poradce www.overeniporadcu.cz.

  1. Emoce nechte stranou, rozhodujte se hlavou

Buďte realisté a nenechte se opít rohlíkem. Pokud vám slibuje finanční poradce nereálné zisky, ohání se garantovaným zhodnocením a odkazuje se na minulý vývoj finančních trhů, buďte v další spolupráci velmi opatrní.

  1. Nátlak a časová tíseň do finančního poradenství nepatří

Známkou dobrého finančního poradce je nejen dochvilnost, ale také dostatek času, který vám dá k promyšlení návrhu a k rozhodnutí. Dobrý poradce nepřichází s nabídkami, které musíte využít „teď nebo nikdy“.

  1. Také detaily rozhodují, buďte zdravě kritičtí

Buďte aktivní, pokládejte dotazy, buďte na poradce přísní. Nebojte se domluvit si schůzku u poradce v kanceláři nebo na neutrálním místě (například v klidné kavárně), finanční poradenství se již dávno nedělá na pohovce ve vašem obýváku.

  1. Rozhoduje značka? Často ano…

Pracuje finanční poradce pro některou z velkých finančně poradenských firem? Hledejte reference, zkušenosti jiných i nezávislá ocenění, kterými se firmy chlubí.

  1. Učení je u poradce základ

Nebojte se zeptat finančního poradce na jeho zkušenosti. Jak dlouho je v oboru? Jaké absolvoval kurzy a jaké je jeho vzdělání? Pamatujte, že finanční produkty se rychle mění a jen poradce, který je „v obraze“, vám může dobře poradit.

  1. Můžete říci NE

Pamatujte: do uzavření smlouvy vás nikdo nemůže nutit. Pokud máte pochybnosti, zjistěte si více informací, zeptejte se na názor někoho znalého z vašeho okolí, vezměte si čas na rozmyšlenou. Pokud vás poradce nepřesvědčí, vždy můžete říci NE.

 

Jak poznáte špatného finančního poradce?

  • neseriózní finanční poradce usiluje o podpis smlouvy již na jedné z prvních schůzek, vyvíjí nátlak
  • neposkytuje rady, ale instruuje vás, co máte udělat
  • skrývá rizika, představuje jen výhody produktu
  • formulace typu „To je příliš složité na vysvětlení“ nebo „Tomu nemusíte rozumět“ by vás měly varovat

Zdroj: http://www.investujeme.cz/desatero-k-vyberu-dobreho-financniho-poradce/

How to recognize a good financial consultant

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Financial world is complicated and for laic person difficult to understand. Therefor many of us seek out for help of a financial consultant. But how do we know that consultant provides us with quality service?

Below you can find some useful tips how to recognize a good financial consultant:

  1. Consultant is not a sales representative

Sales representative usually represents one company and cannot give you an objective comparison of different products. Financial consultant on the contrary, seeks various solutions for different needs of its clients and offers more products from multiple companies.

  1. Informs and explains

The consultant should be able to explain proposed solution and know its connection to your personal goals. He should be able to justify the choice of specific products and offer alternatives. He should not speak only about benefits of proposed products, but also highlight risks and possible drawbacks.

  1. Listens and then proposes solution

Financial consultant first listens. He should identify your plans and goals, financial possibilities, ongoing contracts. Financial consultant never comes to the first meeting with the offer of specific products and plans.

  1. Certification

Financial consulting is legislatively regulated and consultants must follow a series of strict rules. Invest time to verify your consultant.

  1. Set emotions aside, use your head

Be realistic and don’t be very credulous. If financial consultant promises you unrealistic profit, flaunts with the guaranteed appreciation and refers to the development of the financial market during last years, be very careful in your future cooperation.

  1. Force and time pressure does not belong to financial consultancy

Good financial consultant is not only punctual, but also gives you enough time to think about the proposal and the decision. A good consultant does not come with “now or never” offers.

  1. Details are important, be critical

Be active, strict and ask questions. Feel free to book an appointment with consultant in his office or at a neutral location (e.g. in a quiet café). Financial consultancy has not been doing on the couch in your living room for some time.

  1. Is brand determining? Often, yes…

Is the financial consultant working for one of the big consulting company? Search for references, experience and independent awards.

  1. Learning as the basis of the good consultant

Do not hesitate to ask a financial consultant on his experience. How long has he been in business? What is his education and which courses did he complete? Remember that financial products are rapidly changing and only consultant who is “in the picture” can give you a good advice.

  1. You CAN say no!

Nobody can force you into the contract signature. If you have doubts, find out more information, ask someone knowledgeable of your surroundings, take time to decide. If you have any concerns, you can always say no.

How to recognize a bad financial consultant? 

  • Financial consultant strives to contract signature on one of the first meetings, puts time pressure
  • Consultant does not give you advice, but instructs you what to do
  • Consultant hides risks and presents only product benefits
  • Formulations like “it’s too complicated for explanation” or “you don’t need to understand this” should warn you

Resources: http://www.investujeme.cz/desatero-k-vyberu-dobreho-financniho-poradce/

Tax reliefs in Bulgaria

The tax system of each state is oriented by the needs of the state and its main activities and policies. The tax levy covers almost all of the incomes of both individuals and legal entities, as well as certain types of financial transactions. The deadline for sending your personal tax report for 2014 had just passed in Bulgaria.Ai?? Hire are some of the possibilities for tax reliefs in the state, according to both social and policy goals of the state.

 

People with reduced performance

The target group for this relief are people, which reduced work performance has been reduced with or above 50%. They can reduced their tax base with 7920 leva (around 4000 eu). To prove their condition, they must show the legal documents, approving their physical condition.

 

Tax relief on personal contributions for voluntary insurance and insurance.

 

The logic of this relief is based on the problems with the health and pension system. As Bulgaria is in the middle of major insurance reform. It should motivate the citizens to invest more into their personal voluntary insurance accounts as well as in the state insurance policy. It reduced 10% of the annual tax base, which are settled as voluntary additional insurance and up to 10% of the amount of annual taxable year for imported personal contributions for health insurance and premiums / contributions “Life.”

 

Tax relief for private contributions to retirement pension

The other branch of this policy and its reflection to the tax policy is the private pension account. In this case the amount of the annual tax bases is increasingAi?? proportionally to sum, which the person played for his remaining years until retirement.

 

Tax relief for charity

The amount of the relief is based on the recipient of the charity.

 

– 5% relief for individuals, who gave money for charity to hospitals, to specific institutions, which provide social services, including child care;

– 15% for charity in the field of culture

– 50% for charity made in favor of Center “Fund for Treatment of Children” and / or the Centre “Fund for Assisted Reproduction”;

 

Tax relief for young families

 

The amount of the annual tax base is decreasing according to the mortgage payments through the year. The person, who has made the deal should be:

– married

– his husband/wife should be under 35 by the time of the mortgage has been signed

– the household, for which the mortgage is being paid is the only one for this family for the year;

– documents signed by the husband/wife that he/she hasnai??i??t applied for the same relief

 

Relief can be used by local individuals as well as foreign individuals, resident for tax purposes in a Member – State of the European Union or in another country – party to the Agreement on the European Economic Area during the year for interest payments on first 100 000 lev principal of a mortgage loan.

 

Tax relief is available only to file an annual tax return, which applies to a document issued by the bank customer certifying the amount of the year made interest payments on the first 100,000 lev principal of the mortgage to buy a home.

And what are the reliefs which the tax payer can receive by your country?

 

 

The information has been provided by Bulgarian National Revenue Agency.

Start of Dissemination Campaign in Austria

Hi Everyone!

The Dissemination Campaign on the FLY Project has already successfully started in Upper Austria with a report about the project and the E-course on financial literacy in the local TV-Channel LT1 (Linz and surroundings).

Have a nice time watching !!

http://bit.ly/FLYproject

Liebe Interessenten,

Die Verbreitungskampagne des Projektes FLY hat in Oberösterreich schon erfolgreich angefangen mit der Reportage über das Projekt und über den E-Learning Kurs “Finanzwesen für Dich” im lokalen TV-Sender LT1 (Linz und Oberösterreich).

Viel Spass !!

Linz FLY Project meeting

The second meeting of the FLY Partnership took place in Linz, Austria on the 16th & 17th April 2015. The FLY Project partners shown here, were involved in wide-ranging discussions related to the progress of the project so far and planning for the future activities and events. The partners also worked on fine-tuning the structure and content of the  E-Course, which is central to the success of the project and its overall target of increasing Financial Literacy in our three target groups.

Does it matters how often your interest rate is calculated or not?

Very often interest rate is declared as percentage on a yearly basis. So does it really matter how often it is calculated during the year or not?

1st case – once per year

While it might seem very complicated stuff it is really simple. Let us do the math in the case when interest rate is calculated once per year. Let’s say we have 1000 euro in a saving account which has an interest rate of 2% yearly. After one year the interest our account would have accumulated will be 1000+(1000×2%) equals 1000+1000×0.02 = 1000 + 20 = 1020 euro. In other words, after one year and interest rate calculated at the end of the year our account has earned 20 euro and the money available in the account will be 1020 euro.

2nd case – once per month

We take the same initial conditions – 1000 euro in the saving account with a yearly interest rate of 2%. Interest rate is calculated on a monthly base. In one year we have 12 months so the MONTHLY interest rate will be 2% divided by 12 or in mathematical representation 0.02/12 = 0.00166666 which we could simplify at 0.002. That is 0.2% monthly. So the interest rate is calculated monthly and the calculations are:
1st month: 1000+1000×0.002 = 1000+2=1002
2nd month: 1002+1002×0.002=1002+2.004=1004
3rd month: 1004+1004×0.002=1004+2.008=1006.01
4th month: 1006.01+1006.01×0.002 = 1006.01+2.012 = 1008.02
…..
11th month: 1020.18+1020.18×0.002 = 1020.18+2.0404 = 1022.22
12th month: 1022.22+1022.22×0.002 = 1022.22+2.0444=1024.27

In this case if we compute the interest rate on a monthly basis the same saving account would have generated 24.27 euro for one year compared with the 20 euro in the 1st case or 4.27 euro more on a yearly basis. That is roughly 20 percent more earnings.

As a conclusion: The more often the interest rate is calculated the higher the earnings at the end of the year will be. That is due to the compound effect accumulating over each calculation, as the interest rate is calculated over a higher amount that includes the interest earned the previous sub-period (in the second case it is a month). You can easily make the calculation if the interest rate is calculated on a weekly basis using the same initial conditions.

Try the three question test of financial literacy!

This interesting test of Financial Literacy comes from the Wall Street Journal.

They ask: Are you—or your spouse or your teen or your parents—among the financially illiterate?

Find out by answering these three questions which are based on a quiz  that two US University professors have been using for years to assess individuals’ basic financial literacy level!

1. Suppose you had €100 in a savings account and the interest rate was 2% per year. After five years, how much do you think you would have in the account if you left the money to grow?

  • A. More than €102
  • B. Exactly €102
  • C. Less than €102

2. Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After one year, how much would you be able to buy with the money in this account?

  • A. More than today
  • B. Exactly the same
  • C. Less than today

3. Please tell me whether this statement is true or false: “Buying a single company’s stock usually provides a safer return than a stock mutual fund.”

  • True
  • False

Read the  full story here 

In a survey of Americans over the age of 50, only half could answer the first two of the above questions correctly. Only one-third got all three right.

The correct answers are shown below.

How did you get on?

 Correct Answers: A – C – False