21st – 27th March 2022
We are always sharing our top tips on budgeting and how to cut back on spending in order to save for the future. But we also want to make you aware of how to protect your money, when it comes to spending – Buy Now Pay Later – and also to look at Scams.
Buy Now Pay Later (BNPL)
It’s important to be aware of ‘Buy Now Pay Later’ (BNPL) when we are shopping, either in store or online. Online sites, such as Klarna, are offering BNPL on clothes and gaming and this can be very tempting!
So, what exactly is BNPL?
This is a legal agreement which allows you to buy goods services now & pay for the item or service over months or years.
Some celebrities, bloggers or social media influencers may endorse a ‘must have’ product that we feel we need right now. As a consumer and spender we need to be fully aware of Buy Now Pay later before we spend our money. Many businesses give the option to consumers to spread out the payments of a purchase, rather than paying in full at the checkout. This can be very tempting, however it is a form of credit, so we need to inform ourselves.
If you are thinking of entering a BNPL agreement, you should always:
- Check Terms and Conditions of the agreement – does ownership pass directly to the customer upon purchase, or not until the final repayment has been made?
- Check if you’ll have to pay interest on repayments, just as you would when paying back a loan. If you miss payments it might affect you getting a loan in the future.
- Ask yourself – Do I want to get into a Credit Agreement for clothes or gaming? Do I really want this purchase? Can I shop around and get it cheaper? Can I buy it second hand and help the environment & use my savings and pay for it outright? Therefore, owning the purchase now and avoiding extra interest and charges.
Unfortunately, there are many dangers and scams with unscrupulous people trying to get at our money. We need to be smart when it comes to keeping our money safe. Have you come across any scams, especially online or via your phones?
Let’s take a look at the different types of scams out there…
Phishing’ relates to the sending of fraudulent emails, where the recipient is tricked into installing harmful software such as malware, or into handing over sensitive information like a password or PIN number, banking information, PPS, or Eircode number via a cloned website.
‘Smishing’ is the text message equivalent of phishing. The phony messages will usually ask the victim to open a hyperlink in order to “verify” or “reactivate” one of their online accounts, usually their online banking, Revenue, or a streaming service account. In other instances, scammers send messages made to look like notifications from delivery companies.
Again, clicking the link will either bring the person to a fake website where they are urged to provide personal information, or to install what appears to be legitimate software but is actually malware.
Lastly, ‘vishing’ relates to scams operated via phone calls.
Here, scammers have been posing as banks, Gardaí, revenue officials, or some other state body and informing the victim that they need to provide some form of sensitive information because one of their personal accounts has been compromised, or because they are allegedly being investigated themselves.
As we said before, the money we have is limited so be careful sharing our financial information – especially online. Also be suspicious of ‘Too good to be true offers’ selling goods & services cheaper online. Avoid clicking on offer sites via social media.
Simply, our money is hard earned and we need to protect it! Be careful shopping online and sharing financial details. Be #MABSMoneySmart.
Don’t forget to check out our previous blog on Borrowing and take a look at our next blog on how to tell the difference between your Needs vs Wants!
For more information on Global Money Week (GMW), please visit the official GMW website.