Save for the Future or an Emergency

Life insurance is a financial contract that provides benefits, typically tax-free, to designated beneficiaries upon the insured person’s death. In today’s unpredictable world, having a life insurance plan may be indispensable in securing your family’s financial future.

Before you run out and buy a life insurance policy, it’s important to understand how it works and whether you need it. In this blog post, we will delve into the ins and outs of life insurance.  Also, keep reading to see how you can get personalized offers from our trusted partners through MoneyLion!

What is life insurance and how does life insurance work?

Life insurance is a financial product that provides a form of protection and financial security to individuals and their loved ones. It is designed to pay out a sum of money, known as a death benefit, to the beneficiaries upon the policyholder’s death.

Life insurance works through a simple principle of risk pooling. When you purchase a life insurance policy, you pay regular premium payments to the life insurance company. These payments are based on factors such as your age, health, lifestyle, and the coverage amount you choose. In return, the insurance company promises to pay out a predetermined amount of money to your beneficiaries upon your passing.

There are different types of life insurance policies to choose from, including term life insurance and permanent life insurance. Term life insurance provides coverage for a specific period, such as 10, 20, or 30 years. If the policyholder dies within the term, the death benefit is paid to the beneficiaries. However, if the policyholder outlives the term, there is no payout at the end.

On the other hand, permanent life insurance provides coverage for your entire lifetime, as long as the premiums are paid. It includes an investment component known as cash value, which grows over time and can be accessed by the policyholder during their lifetime. This type of insurance offers more flexibility but tends to have higher premiums compared to term life insurance.

Aside from which type of policy you buy, the price of life insurance may also depend on:

• Your policy length
• The amount of coverage you want your death benefit to pay out
• How risky you are to insure based on your age, health, and hobbies

What is the purpose of life insurance?

Life insurance is essential because it allows individuals to provide financial protection and ensure their loved ones are taken care of after their death. Death benefits could cover funeral expenses, replace lost income, pay off debts, or create an inheritance. In a way, life insurance may bring peace of mind, knowing that your loved ones will have a financial cushion once you’re no longer around.

Unlike car or medical insurance, your life insurance payment is not linked to a particular expense. Instead, your benefit functions as a financial safety net and temporary income for your family. Your beneficiaries may use your death benefit to pay for anything, including:

• Your end-of-life care
• Funeral expenses
• Rent or mortgages
• Education costs
• Groceries
• Utility bills
• Unpaid debts or loans
• Daily living expenses

Does my life insurance kick in right away?

Depending on your policy and insurer, your life insurance payment benefits may kick in immediately. However, in some cases, there may be a waiting period before the death benefit takes effect. This can be up to five years, but the average is usually one or two years. Some companies do offer policies with no waiting period, though these could come at a higher cost.

The best thing to do is to shop around and compare different life insurance coverage policies. Make sure to read the terms and conditions thoroughly to get a full grasp of your benefits.

What is not covered by life insurance?

Life insurance pays out the death benefit following most natural and accidental deaths, such as illnesses, car accidents, or workplace incidents. But some cases may not qualify for payout at all, or if they do, only for reduced payouts.

Such cases may include:

• Application fraud
• Suicide within the first few years of opening a policy
• A beneficiary murdering the policyholder
• Dying during risky activities such as skydiving, auto racing, or mountain climbing
• Dying while working as a logger, offshore oil rig worker, or underground miner
• Dying from illegal activities

Note that in the event of deaths resulting from risky activities, your beneficiaries may still qualify for life insurance if you pay higher premiums. But some insurers may tack on an exclusion that prevents payouts if you die while working or doing a dangerous activity.

Can you be denied life insurance?

You might be surprised to learn that life insurance can be denied or even canceled. Common reasons to be denied coverage include:

• Old age
• Poor physical health
• A history of mental health issues
• Risky lifestyle choices, hobbies, or occupations
• Having a criminal record
• Having a bad driving record

Additionally, your insurer may cancel your life insurance policy in limited cases including nonpayment of your premium or application fraud.

Do you have to have good credit to get life insurance?

Did you know that having bad credit could make it difficult to get life insurance coverage? As of 2018, 90% of U.S. life insurance companies were found using or considering using credit-based scoring. While a low credit score doesn’t mean you’ll automatically be denied coverage, it could make your premiums more expensive.

If you’re worried about your credit score affecting your eligibility for life insurance, you’ll want to dedicate time to improving your credit score. You can accomplish this by focusing on these actions.

PRO TIP! Building your credit is easier than you think. It starts with knowing and understanding your score, creating goals, and then monitoring your credit as you take steps to build it.

Pay your bills on time

One of the most significant factors affecting your credit score is your payment history. Pay your bills, including credit card payments, loans, and utilities, on time. Late payments could  have a negative impact on your credit score.

Reduce credit card balances

High credit utilization, which means carrying high balances compared to your credit limits, can harm your credit scores. Aim to keep your credit card balances low and pay them off in full each month if possible. Reducing outstanding debt could improve your credit utilization ratio.

MoneyLion helps you find personal loan offers based on your background and info you provide. You can get matched with offers for up to $50,000 from top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you. 

Build a diverse credit mix

A mix of different types of credit accounts, such as credit cards, installment loans (auto loans or personal loans), and retail accounts could be important. Demonstrating responsible management of various types of credit could boost your creditworthiness.

Stay in the know on your credit report

Regularly review your credit reports from the three major credit bureaus (Equifax, Experian, and TransUnion) for errors or inaccuracies. If you find discrepancies, dispute them and have them corrected promptly. You can obtain a free copy of your credit report once a year from each bureau through AnnualCreditReport.com.

Avoid opening too many new accounts

Each time you apply for credit, a hard inquiry is made on your credit report. Too many hard inquiries in a short period could lower your credit score. Try to be selective about applying for new credit accounts and only open accounts when necessary.

Advantages of life insurance

Life insurance comes with several key advantages. Take a look at some of the most common. 

Financial protection for loved ones

One of the primary benefits of life insurance is that it provides a tax-free death benefit to the policy’s beneficiaries upon the insured person’s death. This payout could help replace the policyholder’s income, cover funeral expenses, pay off debts, and provide financial support to surviving family members. It can help deliver peace of mind to yourself and your family as they know that they will be covered in the event that the worst of the worst happens.

Enhanced estate planning and wealth transfer

Life insurance is a strategic tool for estate planning, allowing for efficient and tax-advantaged wealth transfer. It could help individuals pass on their assets and wealth to heirs or beneficiaries while minimizing estate taxes. Life insurance proceeds are generally not subject to income tax or probate, making the transfer of assets more efficient and less costly.

Peace of mind

Life insurance provides peace of mind to policyholders, knowing that their loved ones will be financially secure in the event of their passing. It could alleviate worries about the financial impact of unexpected events and allow individuals to focus on their families and personal well-being.

Disadvantages of life insurance

Life insurance is not immune to potential drawbacks. Take a look at the three main disadvantages of seeking out a life insurance policy.

Potentially high cost

Life insurance premiums may be relatively expensive, especially for policies with significant coverage amounts or certain types of coverage, such as whole life insurance. The cost of premiums could strain the budgets of individuals or families, particularly if they have limited financial resources.

Complexity

Life insurance policies may be complex and difficult to understand, especially for individuals who are not well-versed in insurance terminology and concepts. Choosing the right policy can also be challenging, and policyholders may not fully grasp the details of their coverage. Make sure to discuss the details with your potential life insurance provider and ask as many questions as you need to ensure you understand the ins and outs of your specific policy.

Potential Lapse

If you miss a premium payment, your insurer may cancel your life insurance policy altogether. This can happen if financial circumstances change, making it difficult to afford premiums, or if you forget to pay the premiums. A lapsed policy may result in the forfeiture of accumulated cash value and the loss of death benefit protection. If this happens, you’ll likely have to reapply and face the possibility of paying more for your new policy.

Life insurance vs. annuity

Life insurance and annuities are both financial products designed to provide security for the future, but they serve distinct purposes. Life insurance is a tool enabling people to financially protect their loved ones and ensure that they are taken care of after they are gone. The death benefits could  provide funds for funeral expenses, income replacement, and any outstanding debts.

On the other hand, annuities are geared towards providing an income stream during retirement. Annuities are essentially a contract between an individual and an insurance company. When you purchase an annuity, you’re essentially investing a lump sum of money in exchange for guaranteed regular payments for a fixed period of time or for the rest of your life. Annuities offer a way to supplement your retirement income and provide a stable source of funds for living expenses throughout your retirement years.

Another key difference between life insurance and annuities is the way they accumulate cash value. Permanent life insurance policies, in contrast to term life insurance policies, build up a cash value over time that you can borrow against or withdraw. This cash value may be used for various purposes, such as paying for education, supplementing retirement income, or funding emergencies. Annuities, on the other hand, do not typically accumulate cash value. Instead, they provide a guaranteed income stream based on the amount of money you have invested.

Both life insurance and annuities could be important tools in financial planning. Make sure to consult with a professional to understand whether life insurance or annuities or both would be a worthwhile solution for your situation.

Building Your Financial Safety Net One Step at a Time

Life insurance could be a powerful financial tool, offering protection and peace of mind. It serves as a safety net for loved ones, ensuring that they are financially secure in the face of unexpected events. While life insurance comes in various forms, the fundamental goal remains the same: to provide for those who depend on you when you can no longer do so.

Whether it’s covering final expenses, replacing lost income, or facilitating wealth transfer, life insurance may help you safeguard your family’s financial future. However, understanding the different types of policies available and tailoring your coverage to your unique needs and goals is the key. Make sure to consult with a professional to understand whether a life insurance policy is the right fit for your situation.

FAQ 

If you’re planning to make some extra cash, consider putting some away in savings as you earn more. MoneyLion offers a convenient marketplace to compare high-yield savings accounts from our trusted partners that could help grow your money.

According to Indeed, the average Lyft driver earns $21.51 per hour. This number is based on 91 salary estimates from employees and features a low of $7.25 per hour and a high of $44.25 per hour. It’s a little more than what you can earn on Instacart.

Looking for ways to access your cash sooner? MoneyLion Instacash^SM is a cash advance that can help you bridge the gap between paychecks. Access up to $500 of Instacash – no interest, no credit check, and no mandatory fees. 

How much do Lyft drivers make per day?

The average Lyft driver earns a median salary of $38,803 per year. This salary comes to $106.31 per day, taking into account weekends, holidays, and vacation time. These figures come from estimates found on Salary.com.

Lyft drivers are paid a base rate plus extra per mile and per minute, along with a tip offered by the rider. These extra payments add up but aren’t enough for most people to drive on Lyft full-time. However, it is a viable side hustle that can assist with your financial goals.

How much do Lyft drivers make per ride?

Lyft drivers make approximately $13.31 per ride on average based on Lyft’s third-quarter 2023 financial report. The company hosted 187 million rides in the quarter, which generated $3.554 billion in gross bookings. That comes to $19.01 in gross revenue per ride. 

Lyft recently committed to giving drivers 70% of what the rider pays excluding external fees. The 70% figure against the gross revenue per ride results in an average pay of $13.31 per ride. 

Lyft can adjust its pricing structure at any time, and rates can vary from city to city. Drivers should know the components that influence pay before getting started with Lyft.

Factors affecting Lyft driver income

Lyft income won’t be the same for every driver. Several factors can make a difference in the earnings you’ll take home. 

1. Location

Some cities have higher pay rates for Lyft drivers. In certain states, the company has to pay minimum wage — a number that varies depending on the state where you’re working. 

2. Demand/time of day

During times of high demand for rides, Lyft will institute surge pricing. That means the trips cost more, and drivers get paid more. Typically demand is the highest from 7 a.m. to 9 a.m., when people are heading to work; 4 p.m. to 6 p.m. when people are headed home from work; and 12:30 a.m. to 2:30 a.m. when people are heading home from bars tend to be the best times.  

3. Driver experience

When drivers have more experience they tend to have greater earnings because of higher ratings and more positive reviews. 

4. Service level

Lyft offers a variety of different service levels to cater to customer needs. Each type of ride is in one of these categories:

• Economy
• Premium
• Extra seats
• Other types

Typically, Lyft premium and extra seat services tend to charge more. Lyft drivers specializing in these services may be able to earn more per ride. 

5. Miles and minutes

Drivers get paid for every minute and mile they log. Longer commutes will result in higher earnings for each ride. The cost per minute and mile depends on various factors such as location and the type of service being offered. A driver cannot control those variables, but they can choose trips that have more miles.

Tips for maximizing Lyft driver income

Drivers’ fates aren’t entirely up to the city where they live. It’s possible to increase your earnings while working the same amount of hours. There are things drivers can do to maximize their earnings.

1. Finding high-demand areas

Places like downtown gathering spots, concerts, and airports have more riders in one spot who need to get where they’re going. Lyft will create surge prices for those spaces because they’re high-demand areas. Taking riders from there will boost your pay.

2. Offering exceptional customer service

Having a clean car with things like snacks and bottled water available for your customers plus features like phone chargers for them to use will brighten your riders’ day and encourage them to give you bigger tips and higher ratings. 

3. Driving during surge hours

Lyft drivers earn money based on the number of minutes and the number of miles that make up each of the rides. You can maximize profits by driving during hours when more people want rides, which creates a pay surge. 

4. Stay informed about local events

Local events can bring a lot of people from other towns and cities. When these events take place, demand for Lyft drivers will grow. Working during concerts, festivals and other local events can result in higher pay for the day.

5. Understand tax deductions

Lyft drivers can capitalize on several tax write-offs to lower their taxable income. Tracking expenses that go into your Lyft side hustle can increase your take-home pay after taxes. Vehicle maintenance, gas, and certain driver-related expenses may contribute to a lower tax bill.

If you are looking for help with filing your taxes, MoneyLion has you covered. MoneyLion has partnered with Column Tax to offer a stress-free tax filing process for qualifying customers. 

Learn more about Filing your Taxes with the help from MoneyLion.

Challenges Lyft drivers face

Like all jobs, Lyft isn’t always a breeze. These are some of the things to keep in mind before getting started.

1. High operating costs

A good portion of the pay goes to gas, tolls, insurance, and car maintenance fees. These expenses can quickly add up and speed up your vehicle’s depreciation. While these operating costs can reduce your tax bill, they reduce your margins.

2. Lack of benefits 

Gig workers don’t enjoy the benefits of traditional employment. Lyft drivers have to cover their own health insurance and don’t benefit from retirement account matches. Your income is also based on how much you work. Lyft drivers don’t make any money on sick days. Drivers will also have to pay the self-employment tax since they file 1099 tax forms.

3. Difficulty maintaining a work-life balance

The times you’ll earn most with Lyft are often the times you would want to be with family or friends, like holidays and evenings. There’s also pressure to work extra hours because every minute you work is a chance to earn money. 

4. Difficult passengers and potential safety concerns

You never know who you will pick up during a Lyft drive. You may get unruly passengers and will have to stay calm while on the road. However, some passengers can put the driver at risk and present a dangerous situation. 

Being friendly with passengers can minimize the likelihood of any tension. People are less likely to put you in a dangerous situation if they see you as friendly. Politely requesting that a passenger stop any bad behavior can help with diffusing situations as they arise. Working late hours can increase the likelihood of dealing with difficult passengers.

5. Insurance concerns

Auto insurance protects your vehicle from accidents related to personal use. However, you may need an add-on to your policy to cover any accidents incurred while on the job. Comparing insurance options can help you get a lower premium and better terms. 

MoneyLion makes it easy for drivers to compare rates across multiple providers. You can also end up with a lower rate than the premium that you are paying for your current policy. MoneyLion’s process is seamless and can save a lot of time when you are looking for a policy.

Is driving for Lyft worth it?

Driving at Lyft can be a useful side hustle, but it isn’t the best way to generate a full-time income. The average Lyft driver earns $21.51 per hour with some drivers earning $30 per hour. You will have to spend extra money on gas, insurance, vehicle maintenance, and other costs.

Lyft can also change its payout structure at any time, which leaves drivers reliant on the algorithm. Lyft can help with short-term expenses, but other side hustles are more lucrative and can become full-time careers. 

Understanding Lyft driver earnings and navigating the road ahead

Lyft drivers can earn some extra cash driving people around. MoneyLion can make it easier to manage that cash and get on top of your finances. MoneyLion makes it easy to compare loans, insurance policies, and other financial products. Qualifying customers  can also file taxes straight from MoneyLion.

FAQ

Research from The Conference Board points to a 4.4% increase in employee salaries in 2023 and a 4.1% pay bump in 2024. These percentages can fluctuate as macroeconomic conditions and other factors change. If you want to negotiate a raise or determine how much you should be getting paid, this guide can help.

If you’re awaiting a salary increase or considering a better-paying job but concerned about the transition, MoneyLion can help. MoneyLion offers a service to help you find personal loan offers based on the info you provide, you can get matched with offers for up to $50,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you. 

Overview of the current job market

The current job market is still strong as 353,000 nonfarm employees joined the workforce in January 2024. The unemployment rate remained at a steady 3.7%. Remote job opportunities are here to stay and have been stabilizing in a post-pandemic world.

A low unemployment rate and many companies seeking qualified workers have resulted in a labor shortage. These shortages impact some industries more than others, but they mean that companies may be offering higher salaries to fill those jobs.

Shortages are a contributing factor to the growth of remote and hybrid work. Remote opportunities give employees more choices and allow them to pursue higher salaries. Online jobs also result in more competition among employers to find talented workers. A remote approach can help companies save money on office expenses. It’s another catalyst that has resulted in many employers giving their workers more flexibility.

Historical analysis of salary increases

Salaries trailed inflation in 2022 when the consumer price index saw record-breaking growth. However, the trend reversed in 2023 as worker’s salaries grew at a faster rate than inflation. In November 2023, almost 60% of workers earned higher inflation-adjusted income in 2023 compared to the previous year. Continued raises combined with a declining rate of inflation contributed to the outcome. 

Factors affecting salary increase projections

Salary increase projections present an average growth rate, but a lot of effort goes into calculating the rate. Below are some of the factors that impact salary increase projections and how much extra money you could earn.

Economic factors

Various economic factors come together to impact salary increase projections. Rising inflation results in higher salaries because workers need extra money to compensate. While real wages can still decrease, wages stand to increase as the costs of goods and services go up. Rising interest rates can put pressure on rising wages, as higher interest rates make it more expensive to borrow money and can restrict businesses. 

Geopolitical policies and tensions can also play a role. Global politics and issues can impact the supply and demand of goods and services. These vibrations create a ripple effect across the entire economy.

Economic factors can make cash less accessible and result in higher rates, but you don’t have to end up with a high interest rate. 

Gross domestic product (GDP) growth also plays a role in salary increases, as a positive year-over-year growth rate can lead to expansion and higher wages. Negative GDP growth indicates less consumer spending, and companies may have to cut costs to stay afloat.

Industry-specific factors

Some industries are in better positions than others to raise workers’ pay. Industries with large addressable markets, high growth rates, and healthy profit margins can support higher salaries. These companies may increase the salaries for new jobs to attract top talent.

Companies in declining industries or ones that face significant vulnerabilities may have to slow their wage growth rates and offer less desirable salaries. 

The demand for certain skills can impact a company’s salary growth. Jobs that require high-demand skills command higher wages and typically have higher growth rates.

Projected salary increase trends for 2024

Salary increases vary for each industry. You can use the 4.1% growth rate as a benchmark in the negotiating process, but you should also look for salary growth rates in your industry. 

If you have had your job for a while, check new postings to see what the average salary is for your line of work. Businesses have had to raise starting salaries to attract more workers. You can use elevated salaries as leverage or apply to higher-paying jobs that have the same responsibilities as your current job.

Potential challenges and risks

Projected salaries suggest real wages can be positive in 2024. However, there are a few challenges and risks to keep in mind.

The first risk is that interest rates may remain elevated for longer. Many people expected the Federal Reserve to begin lowering rates in March, but there is currently no timeline for rate cuts to begin. Higher interest rates can make companies more hesitant to give out raises since the cost of borrowing money will increase.

Rising interest rates are one macroeconomic condition that can disrupt salary projections. Higher inflation will hurt real wages, and geopolitical tensions can impact revenue, profits, and hiring demand. If companies have to pay more money for raw materials, it will hurt their profit margins and result in fewer raises.

Employees currently have the job market on their side as many shortages mean companies must have higher starting salaries to compete. Those higher salaries can help with negotiations and allow you to secure a raise.

What can employees do to prepare for this projected salary increase?

The projected salary increase is only an average. You can work to beat the average and get a higher raise by applying these strategies.

Enhance your skill set and qualifications

Some skills are more in demand than others. Becoming more versatile and mastering high-paying skills can help you explore better career opportunities. Developing skills relevant to your current line of work can make you more valuable and result in a higher raise.

Learn negotiation techniques for salary discussions

Even if salaries go up in your industry, you have to negotiate a raise. Researching similar wages in your industry while demonstrating your value can improve your chances of winning a negotiation and getting a raise. You can practice with your friends or family to feel more confident when you approach your boss. 

Improve your job performance

Improving your job performance can make you an indispensable part of the company. This status can help you negotiate a higher raise, and your boss may be more inclined to give you the money you deserve. Improving your job performance also strengthens your work ethic and can help you land a better job if your current employer does not pay what you are worth.

Look for side hustles

Side hustles allow you to earn extra money right away, and some of them let you develop skills that can help you get a raise. You can choose from many side hustles that let you earn an additional $500 per week. That extra $500 per week adds up to $26,000 per year, and you can earn a lot more with some side gigs.

You can explore numerous weekend side hustle opportunities. Tapping into multiple income streams can lead to financial independence sooner and give you more choices to grow your income.

PRO TIP! Create additional income by doing surveys and playing games.

You Can Earn More Than What the Experts Project

Salary increase projections serve as guidance for setting your raise. But you can increase your income by more than the projection. Receiving a higher raise, pursuing better career opportunities, and working on side hustles can increase your earnings far beyond the salary increase projection.

FAQ

These jobs that pay the same day do not require a long list of prerequisites, making it easy to start now. Keep reading to find out if any of these jobs might be a good fit for you. And for more opportunities to earn more, get MoneyLion to find more side gigs designed around your time. 

Are same-day pay jobs worth it?

Same-day pay jobs are beneficial if you need a paycheck quickly. These gigs could be a great side hustle. However, relying solely on gigs for income may be hard to work full-time. Same-day pay jobs are great since they are highly flexible regarding when you can work, and they help with extra cash on the side. 

20 jobs that offer same-day pay

Here are 20 jobs that offer same-day pay. 

Lyft

Lyft is a mobile ridesharing service that offers a tip option for drivers. The process of signing up to drive for Lyft is fairly simple. Once approved, you can choose the Express Pay option to receive your paycheck the same day you worked. 

It typically takes three to five days for drivers to be approved. But you can become a driver at Lyft even if you do not own a car. The service offers a program called Lyft’s Express Drive, allowing you to rent a car and start driving. 

Job requirements: 

• Minimum age requirement varies on location
  • Minimum age is 21 in some places
  • Minimum age is 25 in other places 
• Pass their criminal background check
  • Ineligible if had any of the following:
    • DUI
    • Sex offense
    • Act of terror history 
• Need at least one year of driving history in certain states 
• Vehicle must have four doors and a minimum of five seatbelts 
• Must have a current and valid driver’s license
• Must have valid plates with current registration 
• Must have current and valid insurance with your name on the policy

Same-day cash out requirements: 

• Must make at least $5.85 after commission on Lyft’s fees 
• Might have to wait one to three days once bank information is verified 

Same-day cash out fees: 

• $0.50 transaction fee

Get MoneyLion and join Lyft today, where every ride opens the door to new possibilities and extra income!

Uber

Uber is a popular ridesharing service. This app makes it possible to create a flexible work schedule by letting you choose your own hours. You can select jobs from dozens of potential gigs. However, unlike Lyft, Uber’s application process can take up to 5 days until approval. Uber also lets drivers cash out their earnings up to 5 times a day. 

Job requirements:

• Meet the minimum age requirements depending on your city 
• Have a minimum of one year of driving experience 
• Must have a minimum driving experience of three years if you are younger than 25
• Must have a valid U.S. driver’s license
• Must have proof of residency in your city, state, or province  
• Have a four-door vehicle with proof of vehicle insurance 
• Pass their driving record and criminal background check 
• Have a driving profile picture

Same-day cash out requirements: 

• Request cash up to five times per day 
• Permitted with the majority of Visa, MasterCard, and Discover cards

Same-day cash out fees: 

• $0.85 per cashout fee

Postmates

Postmates is a food delivery service that operates via mobile orders, and you can deliver those mobile orders with Postmates in over 3,500 U.S. cities. Whether you turn it into a full-time job or a side gig, the number of orders that you take is entirely up to you. Postmates has fairly simple requirements and a quick application process as well, making the process even easier for you. 

Job requirements:

• Must be 18 years or older 
• Must be 21 to deliver alcohol
• Own a smartphone to complete orders 
• Have a driver’s license
• Provide a social security number
• Work visa or permit allowing you to work in the U.S.

Same-day cash out requirements:

• Have to have an available cash balance of $5
• Have a debit card U.S.-issued Mastercard or Visa 
• Be a Postmates delivery driver in one of the U.S. markets

Same-day cash out fees: 

• $0.50 transaction fee

DoorDash

DoorDash is another food delivery service where drivers pick up orders and deliver them to the customers. DoorDash is an app that is becoming more and more popular all throughout the U.S. as well as Canada and Australia. It takes about five minutes to apply and three to five days on average to receive an application status. There are some requirements when it comes to becoming a driver for DoorDash. However, they are very similar to those of their competitors.

Job requirements: 

• Must be older than 18 
• Have a car, scooter, or bike
• Social security number for those delivering in the U.S.
• Pass their background check
• Must have a smartphone

Same-day cash out requirements:

• Have to complete 25 lifetime deliveries
• Must have been on the platform for at least two weeks since activation
• Debit card must have been approved already

Same-day cash out fees:  

• $1.99 per transaction

GrubHub

GrubHub automatically transfers your balance into your bank account on a weekly basis. However, it does have a same-day payout option as well. This food delivery app also allows you to control your schedule and choose how many orders you pick up. The application process is pretty straightforward and typically takes around three to five days prior to working.

Job requirements:

• Need a car or bike in select areas
• Valid driver’s license and auto insurance for drivers
• Valid state ID for bike riders
• A smartphone
• Must be 19 or older to apply 

Same-day cash out requirements: 

• Will not be available for 72 hours until after verification
• Delivery balance available 15 minutes after completion
• Can cash out as many times you want per day 
• No more than $500 per day
  • If your earnings are subject to garnishment, you cannot qualify 

Same-day cash out fees: 

• $0.50 fee per instant transaction

Instacart

Because of the COVID-19 pandemic, Instacart’s popularity has risen drastically. This app allows users to send their grocery list to a shopper. These shoppers then purchase groceries on behalf of the customers and deliver them to the customers’ door. This grocery delivery and pickup app pays shoppers anywhere from $5 to $10, depending on the size of the orders, along with tips. Typically, the majority of Instacart shoppers make roughly $300 to $500 per week. 

Job requirements:

• Must be 18 or older
• Eligible to work in the U.S.
• Consistent access to a vehicle 
• Must have a smartphone
  • iPhone 6s or newer
  • Android 5.0 or newer
• Have the ability to lift 50 lbs without or with accommodation

Same-day cash out requirements: 

• Need to have completed at least 5 deliveries
• Must have a balance of $5
• Must have a verified bank account

Same-day cash out fees:  

• $0.50 per transaction

Need a car to get started? MoneyLion can help. Drive your way to earnings with HyreCar — the perfect solution to rent a car for rideshare and delivery services.

Wag!

Wag! is a platform where users can access dog walkers, boarders, and trainers. These qualifications vary depending on your experience with dogs. Earnings also vary as they depend on the services, rates, and time spent doing the job. However, the average pay for a 30-minute walk is typically $12 plus tip. The application process for Wag! is slightly more complex since it includes online quizzes, phone interviews, in-person interviews, a test, and a training session.

Job requirements: 

• Be at least 18 years of age 
• Authorized to work in the United States
• Pass the safety quiz and their background check
• Live in a residence that allows pets on the premise 
• Must have training experience 
• Complete assessment if you want to apply for training 
• Must have an iPhone or Android 

Same-day cash out requirements:

• Must have a balance more than $1
• Have a verified bank account or debit card
• An account that was activated at least 30 days ago 
• More than 10 services completed
• Instant payout processed within 30 minutes 

Same-day cash out fees: 

• 3% fee
• Minimum of $1.99

Handy 

Handy is a gig-based platform for repair people, lawn care professionals, and cleaners. You can pay for smaller tasks, like getting help with assembling furniture, mounting TVs, and hanging wall art, to larger projects, like remodeling a bathroom, conducting major renovations, and installing hardwood floors. These gigs can be accessed via Handy’s mobile app or website. For Handy cleaners, the hourly rates range from around $15 to $22 depending on the cleaners’ experience levels. 

Job requirements:

• Must have paid experience for the job you are applying for
• Authorized to work in the country you wish to work in
• Must have great customer service skills
• Approved ID
  • Passport
  • Driver’s license
  • Government-issued ID
• Must be at least 18 years old

Same-day cash out requirements:

• Must have at least a balance of $50
• Instant option still takes one to three days to show up 

Same-day cash out fees:  

• All transaction fees are currently paused 

TranscribeMe

TranscribeMe is an online transcription service where you can submit audio or video files for transcription. Although the pay is not high compared to the other opportunities on this list, TranscribeMe workers average around $0.50 for a two-minute segment or between $15 and $22 per audio hour. So, it is still a great option for those who want flexibility in their work schedule. In comparison to other transcription services, TranscribeMe is highly reputable. 

Job requirements:

• Must have a high school diploma
• Must be 18 years or older
• Must be fluent in English 
• Be highly proficient in grammar
• Pass an exam

Same-day cash out requirements:

• Must have a minimum of $20 in your account 

Same-day cash out fees: 

• No fee

Waitr

Waitr is a mobile app for food ordering and delivery services used predominantly in the southern U.S. Waitr is open to both full-time and part-time drivers. The average hourly rate ranges from $5 to $15, excluding additional tips. 

Job requirements: 

• Must be 18 years of age
• Have a valid driver’s license and insurance
• Must have an Android or iPhone 
• Have an insulated bag for food orders
• Have a reliable car

Same-day cash out requirements:

• Have been active after starting 30 days ago 
• Completed at least 10 deliveries 

Same-day cash out fees:  

• 3% transaction fee

Shipt

Shipt offers a way for people to earn money quickly by shopping for and delivering items to customers. As a shopper, you are required to do three things: accept offers from customers, shop, and deliver. You can get paid on the same day you work using Shipt’s Instant Pay. You’ll get paid a base amount for each shopping and delivery job you do. On top of that, customers may tip you for good service. You can choose when you want to work and which jobs you want to take.

Job requirements:

• Be at least 18 years old
• Have a valid address 
• Own a valid U.S. driver’s license and car insurance
• Have access to a reliable car
• Have good knowledge of produce selection
• Be able to lift items weighing up to 40 pounds
• Use an iPhone with iOS 10 or a newer or Android phone with OS version 5.1 or newer

Same-day cash out requirements: 

• Receive one regular payment each week

Same-day cash out fees: 

• 1% charge for Insta Pay withdrawals

Roadie

This UPS-owned company has created a solution to the high demand of need popping up within the logistics industry because of their drivers. Roadie is a same-day delivery service, and the app is available in over 20,000 zip codes throughout the nation. Additionally, drivers make around $15 per trip for driving locally. Due to this, it is one of the largest local same-day delivery footprints in the United States. 

Job requirements:

• Must be 18 years or older
• Have a social security number
• Have a valid US driver’s license 
• Must maintain a four-star rating in Roadie’s driver app

Same-day cash out requirements: 

• Have completed your first gig more than a week ago
• Completed at least 5 deliveries
• Have a verified bank account on file

Same-day cash out fees:  

• $1.99 transaction fee 

Online survey participant

Participating in online surveys allows you to earn money by sharing your opinions in specified fields. You first need to sign up on a survey site and share the required information. They will then send you surveys that match the information you provided. You basically answer the survey questions provided and get paid for it. How much you earn depends on the survey’s length and complexity of questions. Some reputable survey websites to try include Swagbucks, Survey Junkie, and Vindale Research.

Job requirements:

• Be 18 or older
• Some surveys are only for people in specific countries
• A reliable computer, tablet, or smartphone with an internet connection
• An active phone number or email address to get survey invitations

Same-day cash out requirements: 

• Requirements depend on the website you use

Same-day cash out fees:  

• Varies based on the website

With apps like Kashkick, you could create additional income while having fun by doing surveys and playing games.

Babysitting

Babysitting is a great way to make extra money on the weekends and get paid in cash immediately. However, your chances of securing babysitting gigs will depend on your network of clients. There are babysitting websites that can help you get these jobs within your area, too. This is a great option for those who already have experience babysitting. Plus, since there’s no age restriction on babysitting, people younger than 18 years of age can try it out. 

Job requirements:

• Most require past experience with kids
• May require a valid driver’s license 
• Recommendations from previous clients are often required

Same-day cash out requirements: 

• Requirements depend on your clients

Same-day cash out fees:  

• Varies based on the client

Dog walking or pet sitting 

If you’re an animal lover, walking dogs or taking care of pets can be a fun way to make money. You can sign up on websites like Rover or Care where people look for pet caregivers. Set up your profile, share your qualifications and experience, and apply for jobs posted. 

Job requirements:

• Be comfortable around pets like dogs and cats 
• Ability to follow instructions from pet owners
• Be trustworthy and show up when needed

House cleaning

House cleaning can help you earn quick cash. You can find people who need their houses cleaned in neighborhoods, apartments, and offices. There are also websites like TaskRabbit, Handy, and Care.com where you can find cleaning jobs. The payout will depend on how big the place is and how much cleaning is needed. If you can clean well, stick to a schedule, and pay attention to details, this could be a good job for you.

Job requirements:

• Be responsible
• Know how to clean
• Noticing and fixing things that need cleaning

Gardening/lawn care

If you like working outside, gardening and lawn care could be a good way to make money. You can help clients by cutting grass, planting flowers, and keeping yards neat. To find jobs, you can put up flyers around your area or use websites like Craigslist. You’ll need tools like lawnmowers, trimmers, and shovels. 

Job requirements:

• Enjoy working outside
• Physical strength for yard work

Freelance writing

Freelance writing is a way to make money and save extra cash by using your writing skills. You write articles, news stories, or books for businesses. To start freelancing, create a collection of your writing examples to show what you can do. If you’re good and people like your work, you might get more jobs from them.

Job requirements:

• Strong writing skills
• A reliable computer and a good internet connection 
• Be able to finish your work on time

Proofreading

Proofreading involves checking written documents to fix mistakes like spelling, grammar, and punctuation errors. You can find jobs checking documents like essays, websites, or articles. Knowing how to quickly spot writing mistakes is an important skill. Websites like Upwork and Freelancer connect you with people who need proofreading. Jobs pay per project or per hour.

Job requirements:

• Proficiency in spelling, grammar, and punctuation 
• Excellent communication skills 

Bookkeeping

Bookkeeping refers to helping businesses keep track of their money in an organized way. Bookkeepers monitor incoming and outgoing cash flows and make sure everything is recorded correctly. You can earn money by offering your bookkeeping services to small businesses and startups.

Job requirements:

• Basic accounting skills
• Attention to detail
• Familiarity with accounting software
• Confidentiality

Exploring Jobs with Instant Pay

Getting a job that pays same-day allows you to get access to your hard-earned money more quickly. The majority of these apps revolve around delivery services. However, some of these job opportunities require certain skill sets. 

Starting any of these gigs as a side hustle could be a great way to earn cash on the side while staying in control of your own schedule. Apply to the jobs that are best suited for your needs and availability. Just like that, you’ll be on the path to securing jobs that pay same-day! 

FAQ 

Cell phone providers like T-Mobile and AT&T often charge a fee to change phone numbers. This fee is typically around $36. But costs aside, you could have a good reason to consider changing your number anyway. 

How long does changing a phone number take?

Changing your phone number is usually a quick process. However, in some cases and depending on your provider, it could take a few hours for the transition to finalize. 

For example, T-Mobile asks customers to wait four hours before the phone number change is official. Additionally, landline numbers take longer to change than cell phone numbers. 

Good reasons to change your phone number

The choice should be yours when it comes to changing your phone number. Here are some reasons why people may want to change their phone number.

1. You need to separate your work and personal life

If you need a phone for work, it might seem more reasonable for you to use your personal phone number for professional reasons, too, but this can eventually get complicated. Setting a clear boundary between work and personal time can be tricky when your phone number is the same for both. 

This is especially true if you want to stay connected to personal calls and disconnected from work calls. If a clear distinction between those two parts of your life is what you need, a new and separate phone number for work might be the best idea. 

2. You are eager to avoid certain people 

If you have had the same phone number for a long time, odds are there are some people that have your number despite you wishing that they no longer did. Changing your number is a great way to gain control over who has access to you.  

3. You want to avoid telemarketing calls

Telemarketing calls can be a pain, especially if you receive them often or by mistake. This can happen if your phone number ends up on the call lists of telemarketers. 

Other times, this situation might be a mistake made by someone who accidentally gave them your number as a result of typing in your number by accident. You can change your number for peace of mind, but remember that these calls might start back up eventually regardless. 

4. You’ve moved to a new city

Moving to a new city can feel like a great time for a fresh start. Maybe you want a new number to disconnect from your old city completely. 

It could also be the case that you want to change your number so that you have the same area code as the locals in your new place of residence. Regardless, this change can be an excellent way to feel like you’re genuinely starting over. 

What to know about changing your phone number

Changing your phone number is a simple concept, but there are a few things you should know before you make the switch. For starters, you must have an account with your current provider before you can change you number.  

Sometimes, the provider will need your account to be up to date on payments, meaning you don’t have any past-due amounts. Your phone number cannot be changed to a toll-free number either.  

In most cases, you will provide the city and the state of your current phone number so that you can be associated with local area codes. Finally, don’t forget that voicemails are attached to your phone number.

When you change your phone number, you will often lose any of your saved voicemails, so try to download them if you want to before making the change. You can record them on another device or look into services that can convert them into mp3 documents. 

How to change your number or get a new number

If you’re looking to change your phone number or get a new number might sound challenging, but the process is quick and easy once you make the decision to follow through. 

1. Contact your telecommunications provider

Most providers will let you change your phone number either online or via a mobile app. In most cases, it is best to contact your provider and let them know that you want to change your phone number because they can help you and provide you with the best guidance.

2. Pick your number

If you have the option to choose the digits of your new phone number, try to pick something that is easy for you to remember. For example, try not to choose a number that is too similar to your old one. Doing so could make your new number even harder to remember. 

3. Update your contacts 

When you change your number, your cell phone company will not notify anyone of your new number or provide an away message associated with your old number. Therefore, it is up to you to notify your contacts that you changed your number. 

This is an excellent opportunity for you to only inform those you care about as to your new number. You can send them a text message or give them a call to let them know about your changed number. 

New number phone number, new you

No matter what your reasoning is, changing your phone number can be a big deal. This might be especially true if you have had the same phone number for a long time. 

Though a fee might be involved, the relief you’ll feel without spam calls and the joy you’ll experience with a new area code can be worth it to many people. Just remember to tell those you care about that you have a new number.

FAQ

Whether you can get extra income to save or to pay bills, making $500 a week benefits most people and can make a significant difference. In addition, you can find accessible ways to help you earn almost $24,000 a year as a side hustle, second job, or primary source of employment. It all depends on what you’re looking for and how you can fit it into your schedule. 

MoneyLion can help you find side gigs designed around your time!

11 Jobs That Pay $500 a Week

The jobs listed pay at least $500 a week and don’t require a college degree or specialized skills, making them accessible to almost anyone. Do you already have a day job? Not to worry. These jobs can be flexible and fit into evening and weekend hours. Let’s take a look.

1. Housekeeping

Housekeeping is something you can do independently or under an agency. Let’s say you choose to do this job independently. You can bring in at least $500 a week if you clean 2 to 3 houses a day. Under an agency, you might need to clean 4 to 5 homes per day to bring in the same amount. Start building up your clientele, and that $500 will be in your pocket in no time. Try using Care.com to find jobs or start letting friends and family know you’re looking to pick up work as a house cleaner.

2. Virtual Assistant 

Becoming a virtual assistant is a newer phenomenon that many find lucrative. You can work as a virtual assistant for a business or an individual. This position usually entails administrative tasks such as sending emails, scheduling meetings, or making appointments. Depending on the demands of who you’re working for, you could be a virtual assistant to numerous people, making it easier to bring in more money. 

3. Work in a Restaurant 

Do you enjoy entertaining guests and making sure they have an enjoyable experience during their night out? Pick up a few shifts as a waiter or bartender. If you make it all the way up to the restaurant manager, you could make roughly $22 an hour. 

4. Emergency Call Operator

There’s no question about it—being an emergency call operator is not for the faint of heart. But you might build a profitable career if you can handle emotional callers and stressful situations. Most 911 operators start off around $20 per hour—this job is one of the most profitable on our list. Visit 911DispatcherEDU.org to learn more. 

5. Lyft Driver

Driving for Lyft is convenient because you pick your hours and customize your experience with your riders. Lyft claims that drivers make an average of roughly $30 an hour, including tips. At this rate, you can drive for 20 hours a week and significantly boost your weekly income. 

Here’s a tip to potentially make even more—try giving your passengers a memorable and pleasant experience by providing them with a phone charger, small candies, or gum and letting them pick the radio (or Spotify) station. You’ll likely get a bigger tip on top of the fare they’re already being charged. 

Download MoneyLion and consider driving with Lyft where you can make up to $2,000 within your first 30 days!

6. DoorDash

DoorDash is a food ordering app that allows customers to quickly get their food delivered to their doorstep. As a DoorDasher, you can pick your hours and schedule. Instead, you make a percentage off the food sale, plus tips and a rate for drive time. For most deliveries, you’re looking at roughly $15 to $20 an hour. Work this job on the side for around 25 hours a week, and you’ll get an extra $500 a week. Not bad for driving around listening to tunes and making hungry people happy. Plus, it’s a great way to learn about new restaurants. 

7. Instacart

Do you enjoy grocery shopping? If so, Instacart is the perfect side hustle for you. You do the shopping, check-out, bagging, and delivering. Although Instacart doesn’t guarantee a minimum rate, it’s reported that the average hourly rate for Instacart shoppers is $11. 

You’d have to work over a 40-hour workweek at this rate to hit the $500 mark but getting tips on top of that rate may shorten the load to 30 hours per week. It’s also a side hustle you could work around your day job. Like DoorDash, you can choose your hours and pick up as many or few jobs as you want. 

8. Website Tester

All you need for this gig is a computer and a keen sense of web function. Quite a few companies are looking for web testers. One excellent site is TryMyUI. TryMyUI asks you to be yourself—and give feedback on websites. The company pays $10 for each test, which usually lasts around 20 minutes. So you’d need to test 50 web pages to rack up $500 a week, which would take just over 16 hours. 

9. Online Researcher 

Try your hand as an online researcher. Some companies gather research to put compelling information in front of their readers. For example, Wonder, an online company, asks you to dig deep into some questions it poses. For example, the company might ask, “How do you potty train a dog?” and you’ll help answer the question. Wonder pays $25 per hour for this type of work. You would need to work 20 hours a week to receive that $500. 

10. Freelance

You can venture into the gig economy and work as an independent contractor or freelancer. Jobs such as transcriptionists, social media managers, and virtual assistants can pay you handsomely on an hourly or per-project basis. Moreover, these roles give you the freedom and autonomy to work remotely from anywhere that suits your lifestyle.

11. Tutor (Online or In-Person)

Tutoring, whether online or in-person, may provide an excellent opportunity to supplement your income by leveraging your knowledge and teaching skills. With the growing demand for academic support across various subjects and grade levels, tutors may be able to command competitive hourly rates, depending on the subject matter and your expertise.

Online tutoring platforms and word-of-mouth referrals can be great sources for finding tutoring clients. The flexibility of setting your own schedule also makes tutoring an attractive option for those seeking a lucrative side gig. For the best shot at making a decent side income, you may want to consider dedicating at least 10 to 15 hours per week to your tutoring gig.

Increase your Income 

Many options are available to make $500 a week. While it might not be easy or quick money, there is something for almost everyone. If you find yourself looking for additional income, remember that you have options that can work around your standard 9-5 job by working after hours or choosing opportunities to work from home. Use your increased income to save, pay off bills, or splurge a little.

FAQ

If you’re curious about your financial situation, credit monitoring can help, and building your credit is easier than you think. It starts with knowing and understanding your score, creating goals, and then monitoring your credit as you take steps to build it.

Why money management is important for teens

Financial literacy for teens helps teenagers learn about budgeting, saving, and making smart decisions with money. These skills create a strong base for responsible financial behavior as the teen grows into adulthood. A financially responsible teen can effectively manage their income, avoid unnecessary debt, and achieve future financial stability.

How to teach money management to teens

As a concerned adult, your peace of mind relies on knowing that your teenager is prepared to handle their finances in the future. But where do you start? Teaching personal finance for teens starts with finding the best way to approach it. Here are some helpful teen and money tips to educate a young adult about personal finance.

Understanding basic financial concepts

Many financial concepts may appear straightforward at first, but they have a lasting impact on future finances. Ideas like budgeting, saving, and investing can assist teens in managing their income, ensuring they live within their means and avoid unnecessary debt. With the right strategies, they will be better equipped to handle their financial responsibilities and make decisions that align with their goals and aspirations.

Creating a budget

Creating a budget empowers teens to have more control over their money. The process begins by determining how much income they receive from part-time jobs, allowances, and other sources. Then, ask them to list all their monthly expenses, such as transportation, food, and personal expenses. Once they have a clear understanding of their financial situation, encourage them to set aside a portion of their income for savings. They can use a notebook, spreadsheet, or budgeting app to keep track of their expenses. Regularly reviewing their spending will help them identify areas where they can reduce costs and save more efficiently.

Saving money

Life can be unpredictable, and having a savings account can help teens handle emergencies, like car repairs, without going into debt. Additionally, teenagers often have long-term goals such as pursuing higher education, buying a car, or moving out. Saving money from an early age can be a stepping stone to achieving these goals as they can effectively plan for their future without requiring extra help.

One way to save is by opening a savings account designed for teens. Teens should opt for accounts with few or no fees and reasonable interest rates. The best way to save is by setting realistic targets. The teen should first determine what they want to save for, track the progress, and celebrate each milestone they reach. 

Earning money

Teens have various opportunities to earn extra income. One option is to offer services like babysitting, pet sitting, or lawn mowing in the neighborhood. Another great idea is to turn their hobby into a money-making opportunity. For example, if your teenager enjoys art, you could help them sell their artwork online or offer art lessons. While it may be tempting to spend all the money they earn, developing a habit of saving will help secure their financial future.

Credit cards and loans

Credit cards and loans can provide financial help in tough financial situations and assist in building a credit history. However, if used irresponsibly, they can lead to financial difficulties. If the teen is eligible for loans and credit cards, ensure that they only apply for them when they truly need the money. Irresponsible credit use can result in problems, such as a damaged credit score. Having a poor credit score reduces their chances of obtaining affordable financing in the future. Credit scores may also impact their employment opportunities and housing options.

Managing impulse spending

Overspending on unnecessary items can rapidly deplete a teenager’s financial resources, leaving them with less money to save. Rather than succumbing to the temptation of overspending, the teen should prioritize building up their savings fund. A simple yet effective way to prevent overspending is by creating and sticking to a budget. A budget helps in tracking income and expenses, ensuring that spending remains within reasonable limits. Developing responsible spending habits early on can impact their financial well-being in the long run.

Investing in the future

When teenagers start saving at an early age, they can leverage the power of compounding, which allows their interest to grow over time. The compounding effect can lead to significant returns on their savings. Saving as a teen lays a solid financial foundation for their retirement years and educational endeavors.

Empowering Teenagers through Financial Education

Teaching teens about money empowers them to take charge of their financial future. It may require discipline and dedication, but the benefits are worth it. When carefully implemented, financial management for teenagers can lay the groundwork for a secure and prosperous financial life.

FAQ

That’s over 101 million people. Experts predict this will climb to 125 million by 2025, capturing over half of all smartphone users. The shift toward a more digital, contactless world is evident, with mobile transactions increasingly taking the lead. The question is: Are these innovations helping or hurting consumers? The answer is complicated.

In this guide, we’re diving into everything to know about fintech and financial literacy. Keep reading to learn more! 

In the meantime, explore all the perks offered by the MoneyLion app – a one-stop shop for viewing your financial accounts, monitoring your credit, and accessing everyday awards and perks!

The pros of mobile payments

Mobile payments have become a popular option for many, and it’s easy to see why. Here are a few of the reasons why they’re so widely used:

• Convenience: They allow users to make transactions virtually anywhere, anytime. This eliminates the need to carry cash or cards, simplifying the payment process.
• Speed: Transactions are fast. Quick checkouts and efficient handling save time for both consumers and businesses.
• Security: They often provide enhanced security features. Encryption and tokenization reduce the risk of fraud, making them a safer option compared to traditional methods.
• Budget tracking: Many mobile payment apps offer tools to monitor spending and manage finances, helping users keep track of their budgets.
• Rewards and incentives: Users can access various rewards, discounts, and cashback offers, making transactions more rewarding.

The cons of mobile payments

While mobile payments offer numerous benefits, they also come with challenges. Here’s a look at some of the downsides:

• Technology dependence: They rely heavily on technology and internet connectivity. If there’s a technical glitch or no internet, transactions can’t be processed.
• Security concerns: Despite enhanced security, the risk of hacking and data breaches still exists, raising concerns about personal information safety.
• Limited acceptance: Not all merchants accept mobile payments, which can be inconvenient in places where only traditional payment methods are accepted.
• Potential fees: Some mobile payment platforms may charge fees for transactions, which could add up over time.
• Battery life dependency: Because they rely on mobile devices, a drained battery can mean no access to funds, posing a challenge in emergencies.

The solution: financial literacy

Mobile payments aren’t going anywhere. Instead of resisting this wave, there’s a practical solution: embracing financial literacy. By understanding and applying financial literacy, you can navigate mobile payments more safely and effectively.

Financial literacy refers to the knowledge and understanding of various financial areas including managing personal finances, budgeting, and investing. It involves the ability to make informed decisions about financial resources, understanding concepts like savings, credit, debt management, and the risks and benefits of different financial products.

Here are a few ways financial literacy can help you keep pace with technology and use it to your advantage:

Budgeting and spending

Financial literacy teaches how to budget effectively, a crucial skill when using mobile payments. It’s easy to overspend when you’re just tapping away on your phone, so understanding budgeting helps keep your spending in check.

Understanding financial products

It’s not just about using mobile payment apps; it’s also about understanding the financial products they offer. This includes knowing about fees, interest rates, and other terms that come with various payment options.

Risk management

With financial literacy, users become more aware of the risks associated with mobile transactions, such as fraud and data breaches. This knowledge leads to safer practices, like regularly checking account statements and using secure networks.

Long-term financial planning

Mobile payments can tempt users into impulsive purchases, which can disrupt long-term financial goals. Financial literacy provides the foresight to align daily spending with these goals, whether it’s saving for retirement or paying off debt.

Adapting to financial technologies

As financial technologies evolve, so does the need to stay informed. Financial literacy isn’t static; it involves continually educating yourself about new tools and methods for managing money.

MoneyLion unites fintech and financial literacy

At MoneyLion, we provide you with both the tools to conveniently manage your money and the education to do it smartly.

The MoneyLion app makes it easy for you to view all your financial accounts in one place, monitor your credit, and access to earn rewards for doing everyday things like paying your bills on time. 

FAQ

From interest rates and compound growth to concepts like diversification and inflation, this article covers the essential financial literacy words and terms you should know. Dive in and decode the language of money.

Ready for a financial app that goes above and beyond? MoneyLion is the only money app you’ll need with personalized tools, tips, and offers to control every money moment in your life.

What is financial literacy?

Financial literacy means having the skills and knowledge to manage your money effectively. It helps you make smart decisions about saving, spending, investing, and avoiding unnecessary debt.

When you understand basic financial terms like budget, interest rate, and investments, you can take control of your finances and avoid costly mistakes and scams. This leads to greater financial stability and freedom. With financial literacy, you can make informed choices that support your money goals and create a better financial future for yourself.

20 financial literacy terms to know

Becoming financially literate requires you to understand basic terms. Here are 20 financial literacy terms to know:

1. Budget

A budget is a financial plan that spells out how much you earn or can earn and how much you should spend within a given period. It involves tracking your sources of income and allocating funds for spending under categories such as housing, food, transportation, and savings. 

For instance, setting a weekly budget of $150 for groceries ensures you set aside a specific amount for this expense and helps you avoid overspending.

2. Credit score

A credit score is a numerical representation of a person’s creditworthiness based on credit history. It indicates the likelihood of borrowers repaying debts on time, making it a valuable tool for lenders to assess the risk of lending money and determine loan eligibility and interest rates. A more favorable credit history, gives you a higher credit score, leading to optimal borrowing terms.

Looking for a seamless way to monitor your credit and access credit-building tricks and tips? MoneyLion’s got you covered. 

3. Interest rate

Interest rate is the percentage of the principal a lender charges a borrower for borrowing money or earned by an investor on an investment. It’s essentially the cost of borrowing money or the return on invested funds. 

4. Compound interest

Compound interest is the interest calculated not only on the initial principal amount but also on the accumulated interest from previous periods. It has a considerable impact on long-term savings or debt. 

Say you have $100,000 in a savings account with an annual interest rate of 2%, compounded yearly. After the first year, you would earn $2,000 in interest (2% of $100,000), resulting in a total balance of $102,000. In the second year, rather than earning interest only on the initial $100,000, you earn interest on the new balance of $102,000.

5. Assets

Assets are anything of value that can be owned by an individual or entity. They come in various forms: cash, stocks, bonds, real estate properties, vehicles, and other possessions. Assets contribute to your net worth and can be used to generate income or measure financial stability.

6. Liabilities

Liabilities are debts or financial obligations an individual or entity owes to others. They cover loans, taxes owed, mortgages, and other outstanding payments. 

7. Net worth

Net worth describes the sum of your assets less your liabilities. It’s a measure of financial health and represents the amount of money you’ll be left with if you pay all your debts and sell all your assets. A positive net worth indicates that your assets exceed your liabilities, while a negative net worth suggests the opposite.

8. Inflation

Inflation is the rate at which prices of essential goods and services rise over time. It reduces the purchasing power of money as the same amount buys fewer goods and services. 

9. Investment

Investing involves allocating money with the expectation of earning income. It typically entails buying financial assets, such as stocks, bonds, real estate, or mutual funds, to generate returns over time through dividends, interest, or capital appreciation.

You may opt to create a stand-alone investment account where you pick and choose the different financial assets to include. However, making an educated decision often requires a ton of research and even years of experience. Instead, many investors will opt for a managed account. 

Looking for a way to start investing? MoneyLion offers a fully managed portfolio that requires no management fees or minimums.

10. Diversification

Diversification is the strategy of spreading investments across different asset classes or sectors to reduce risk. By diversifying a portfolio, you minimize the potential negative impact of a single investment — gains in others may offset losses in one investment.

11. Risk tolerance

Risk tolerance refers to the degree of willingness and ability to tolerate potential losses when making investment decisions. It measures how much risk a person is comfortable accepting in the quest for profit. Risk tolerance depends on age, financial goals, time horizon, and personal circumstances. 

12. Dividends

Dividends are payments companies make to shareholders as their share of profits. Shareholders can choose to receive dividends as additional shares or cash. 

13. Capital gains

Capital gains are the profits gained from selling a security or asset at a higher price than the purchase price. For example, if you purchased the stock of Company XYZ for $1,000 and later sold it for $1,500, the $500 difference would be a capital gain.

14. Mutual fund

A mutual fund is an investment option where several investors pool their money to purchase a diversified portfolio of stocks, bonds, or other assets. Professional fund managers oversee the fund’s investments and make decisions on behalf of the investors, seeking to maximize returns while minimizing risk.

15. 401(k) or retirement plan

A 401(k) or retirement plan is a tax-advantaged savings account employers provide to help employees save for retirement. Employees contribute a portion of their pre-tax income, often with employers matching their contributions. The funds are invested for potential growth in stocks, bonds, mutual funds, and other investments until retirement.

16. Roth IRA

A Roth IRA is a retirement savings account that allows individuals to contribute after-tax income. Qualified withdrawals from a Roth IRA, including earnings, are tax-free. It provides potential tax advantages by allowing tax-free growth and tax-free withdrawals in retirement, making it an attractive option for long-term retirement savings.

17. Stock market

The stock market is where publicly traded company shares are bought and sold. It provides a platform for investors to participate in the ownership of companies by purchasing stocks, which represent ownership in a portion of the company’s assets and earnings.

18. Risk management

Risk management involves identifying, evaluating, and mitigating potential risks to protect one’s financial well-being. It involves implementing strategies such as insurance coverage, emergency funds, diversification, and other risk-reducing measures to minimize the impact of unforeseen events or losses.

19. Debt-to-income ratio

Debt-to-income ratio is a financial metric that compares your monthly debt payments to monthly income. Lenders use it to appraise your ability to manage additional debt. For example, with a monthly income of $10,000 and total monthly debt payments are $2,000, your debt-to-income ratio would be 20% ($2,000 / $10,000).

20. Emergency fund

An emergency fund is a reserved amount specifically designated to cover unexpected expenses or financial emergencies. It’s a safety net, providing a financial cushion to avoid relying on credit or accumulating debt when faced with unforeseen circumstances such as job loss, medical emergencies, or significant repairs.

MoneyLion’s new savings calculator* can show you how much your savings can grow over time and shows you available savings offers!

4 tips for learning new financial literacy terms

Learning is a life-long endeavor, and new concepts and terms appear as the financial landscape evolves. Here are tips to keep abreast of new financial literacy terms.

1. Use online resources

Websites, blogs, and educational platforms offer articles, tutorials, and videos that explain financial terms in a user-friendly manner, often for free. Explore these resources to supplement your understanding and gain practical insights.

2. Enroll in a financial education course

Many educational institutions, community organizations, and online platforms offer courses designed to improve financial literacy. These courses provide structured learning, interactive activities, and expert guidance to help you grasp complex financial concepts and terminologies.

3. Read financial news and books

Stay on top of financial matters by regularly reading news articles and books. Financial news sources report on current events, market trends, and economic concepts, exposing you to various financial terms in their real-life context. Similarly, books written by financial experts can offer in-depth explanations and case studies that deepen your understanding.

4. Consult with a financial adviser

Consider consulting an adviser if you have specific questions or need personalized guidance. A professional adviser can explain financial terms relevant to your situation and offer tailored advice. 

Financial literacy: decoding the jargon

Understanding the personal finance terms listed here will help you progress toward your financial goal. To further expand your financial knowledge, you can leverage online resources, enroll in relevant courses, and seek guidance from financial advisers. Decoding the jargon of the finance world can empower you to seize control of your financial well-being. 

In the meantime, explore all the perks offered by the MoneyLion app – a one-stop shop for financial wellness. View your financial accounts in one location, monitor your credit score, and access awards and perks to boost your financial health!

FAQ