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November 29, 2021

Learn with SEFCU As Master Your Card continues expanding its financial education resources, we’ve partnered with SEFCU’s (State Employees Federal Credit Union) Institute for Financial Well-Being. SEFCU has a myriad of resources to guide and encourage you to focus on achieving economic stability. Their resources are unique, free and tailored to meet the needs of individuals seeking financial knowledge. Check out their ongoing online webinars grouped into three categories: Learn to Earn offers classes for those aged 5-13 The Future is Now offers classes for those aged 14-18 Pursuing Economic Stability for those aged 18+ Also, make sure you visit their Events Calendar. What are you waiting for? Start expanding your knowledge with Master Your Card’s partner SEFCU now

Covid-19’s Impact on Small Business, and How We Can Help Them Thrive

November 1, 2021

Covid-19 is leaving a destructive footprint on American small businesses. It brought small business owners face-to-face with economic distress, temporary closures, and even bankruptcy. The impact of small business closures ripple across communities, too – 47% of the nation’s workforce is employed by small businesses, according to the World Economic Forum. The pandemic’s severe impact on urban communities influenced a disproportionate struggle for certain small business demographic categories, with Black business owners suffering the most. The number of self-employed Black individuals decreased by a staggering -37.6% year-over-year, from April 2019 to April 2020. However, this same segment has since had the strongest rebound amongst all demographic categories. In August 2021, the number of Black-owned businesses surged to 1.5 million strong. U.S. small businesses are making their comeback, but they’ll need consumer and corporate support to succeed. Here are a few ideas to help champion them. Help Small Businesses Go Digital Small businesses that previously relied on cash transactions now must go digital. Throughout Covid-19, consumers learned of the convenience of digital transactions. When health concerns rose, consumers opted for touchless payment options, such as payment cards’ tap-to-pay features and digital wallets, such as Apple Pay. Many businesses matched this consumer preference and behavior by pausing the acceptance of cash payments, for both convenience and safety, thus requiring payment cards for transactions. Aside from the mounting pressure to adapt, there are many benefits to payment card acceptance. These include: Secure transactions: Electronic payments eliminate the potential for bounced checks or counterfeit currency Translated currencies: Payment is settled in U.S. dollars, regardless of the customer’s ‘home’ currency Faster checkouts: Swipe or tap and the payment process is complete Higher sales: Research finds consumers spend up to 16% more when using a payment card Expedited earnings: Revenue is available in real-time; no bank runs necessary Data availability: Card payments provide refined customer insights and purchasing data Customer satisfaction: 79% of shoppers report using contactless payments for safety and cleanliness Mastercard also offers digital support for small businesses via their Digital Doors initiative. This online resource helps business owners establish and build upon their digital presence, from basic digital tactics to e-commerce recommendations to cyber security tips. Check it out for yourself and share the resource with a small business owner. Consider Small and Local Businesses The World Economic Forum reports a staggering 34% of America’s small businesses are still closed due to Covid-19. The two-thirds of small businesses that survived need support. Their costs have increased to fulfill new health and safety compliances, and they’re experiencing inventory delays due to supply chain issues. Consider your community’s small businesses and service providers now more than ever, and as the holiday season approaches, shower your local entrepreneurs and economies with support. Check out this Small Business Directory to identify your local options! Rate and Review Your Positive Experience with a Small Business In our digital world, the age-old word of mouth referrals small businesses rely on have transformed. Potential consumers now head online for references and feedback, reading reviews across sites like Yelp and Facebook. If you’ve benefited from or had a positive experience with a local business, consider leaving them a rating or review online. It’s an easy and free way to show your support! Commit to Supporting Small Businesses Master Your Card encourages you to invest in your local small business community now more than ever. With the help of community members, local businesses and service providers can achieve success. When small businesses succeed, jobs are created, and economies grow.

The Connection Between Digital and Financial Equity

October 5, 2021

Smart phones. Tablets. Laptops. Gaming systems. Flatscreens. Digital billboards. We are surrounded by digital technology. The internet is quite literally in our pockets. Many of us feel like we live in a world with seemingly unrestricted digital access – but that’s not the case for everyone. There Is, Without A Doubt, A Digital Divide While digital technology and internet access is a basic expectation for some, for others it’s a luxury. Recent studies from the Pew Research Center revealed that among U.S. households with an annual income below $30,000 a year, 43% do not have home broadband services, 41% do not have a desktop or laptop computer, and 24% do not own a smartphone. Americans without proper access to these technologies are at a major disadvantage. Without proper broadband connection and digital tools, communities can’t access resources that help make starting or running businesses safer, tap into online health tools, or even research projects for school. Minoritized Communities are Often at the Biggest Digital Disadvantage A 2020 study by Erika Poethig, Chief Innovation Officer at the Urban Institute, revealed shocking truths about digital access in urban communities in the United States. Poething found that 30% of all urban households lack broadband, disproportionately impacting Black and Hispanic families. US Census data tells a parallel story: digital disparities are most likely to occur in homes where the head of household is under 35 years old, makes $25,000 or less annually, and is Black or Hispanic. Likewise, data from the Pew Research Center showed that when quizzed, a majority of US adults can answer “fewer than half” of digital knowledge questions correctly. Where Financial Equity and Digital Equity Meet When access to digital technology is not available, neither is access to the resources that electronic payments provide. This leads to an overwhelming amount of people who are underbanked. Uneven Access to Digital Technologies Restricts Economies Individuals who are under or unbanked engage in the economy in a very different manner than those that are banked. These individuals navigate the world without the basic safety nets many of us benefit from, such as credit lines, credit scores and credit cards. By building digital access across communities, we can help people clear financial hurdles using electronic payments – think debit, credit and prepaid cards, as well as mobile wallets. Electronic payments allow users to track their spending, making it easier to keep a budget. It also helps people avoid the cost and travel time of check cashing centers and gives them more purchasing power via access to the digital marketplace. Similar electronic payment benefits hold true for small business owners. Consumers not only want to use credit, debit and prepaid cards, but they’ll often spend more money when they do. Research shows that consumers spend up to 16% more when using a payment card. By accepting payment cards, customers know that a business cares about their time, money, and security. That leads to higher sales and loyal customers. How We Can Break Down Digital Barriers Many key influencers and advocates, spanning government, public and private sectors, have shifted their view of broadband access and the internet from a luxury to a modern-day public resource. These supporters and their transformative viewpoints are essential to breaking down digital barriers and increasing broadband access to all households, regardless of income or community. By way of traditional political advocacy, community programming and education platforms, actions are being taken to level the digital and financial playing field. Master Your Card is particularly proud of the commitments our partners have made and to increase digital and financial equity. Learn more about our partners and their inclusion efforts here, and follow along on our social channels for progress announcements: LinkedIn, Facebook, Twitter and Instagram.

How to Talk to Your Kids about Money

September 1, 2021

Whether your child is 7 or 17, now’s a good time to talk to them about money. Studies show that kids form money habits at 7 years of age. Likewise, surveys have found that 53% of kids wish their parents taught them more about money. In other words, discussing and building smart financial habits early is both needed and wanted by kids. Teaching your kids about finances and savings doesn’t have to be intimidating or taboo. Small changes can have a big impact. These 5 topics are a great place to start. Teach the Difference Between a ‘Want’ and a ‘Need’ Once kids can differentiate “wants” from “needs,” they will start becoming a conscious consumer and more aware of their spending decisions. One way to help your child understand a “want” versus a “need” is by initiating a conversation while at the store. Is that toy they’re asking for something they need or something they want? Ask them and see what their response is, then explain why they are correct or incorrect. Define and provide examples of needs, such as clothing and food, and wants, such as toys and candy. You may be surprised by their response! The Value of Working for Your Money A survey by T. Rowe Price found that 48% their parents give their children $10 or more in allowance per week. If you always give your children money without them having to earn it, you run the risk of cultivating a mindset that money isn’t valuable. But by giving your children an allowance by paying them for chores (think taking out the trash, picking up toys or doing the dishes) you’re instilling in them a respect for hard work. The Importance of Goal Setting In a recent survey, 54% of kids say they feel like they don’t need to worry about saving for something like college because it’s so far away. Teaching kids about savings and financial goal setting early on can help change this mindset. By introducing these principles, you can teach them that saving money now can mean greater rewards later. You can start by encouraging your child to save up for a toy they want or a movie they want to see. Give your child a clear jar, so they can watch their savings grow and see the benefits of their hard work and patience. You can also take a digital-first approach by opening a savings account for your child and showing them how their money can be monitored on a mobile phone or tablet. What Opportunity Cost Is Teaching kids about opportunity cost is a great way to instill values of how to prioritize their time and money. You can do this by giving your child the opportunity to decide for themselves. Seek out these opportunities in everyday life. For example: if you go to an ice cream shop, and your child asks for a sundae and a milkshake, explain to them that getting a milkshake means they can’t have a sundae, and vice versa. This will be more effective than telling your child simply “no, just one!” The Value of Giving Teaching your child the value of giving offers a double benefit. Not only does it help them discover causes they care about, but it also shows them how great it can feel to help others. For example, should your child see a news report about a natural disaster, ask them whether they would like to help, then show them how they can send money to a charitable organization to make a difference. Of course, these tips are just the tip of the iceberg when it comes to talking to your child about money and instilling smart financial habits. Once your child has a firm grasp on the above, you’re both ready to take it a step further. You can use a variety of online resources to teach your child more complex financial topics like investing and credit: The World of Money App from our partner World of Money is a great place for kids of all ages to explore financial concepts. The interactive app, recently awarded ‘Best Financial Literacy App’ by the Motley Fool, teaches kids everything from world currencies to ‘money drainers.’ Each 3-minute course is followed by a quiz to make sure the child has the concept down pat. Happy teaching!

Why is Financial Education So Important?

September 1, 2021

By Sabrina Lamb – Founder and Executive Director of World of Money Let’s start with the basics: what is financial education? Investopedia defines financial education as “the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing.” In other words: financial education is the foundation for your entire relationship with money. A good understanding of money can help keep you from overspending, allow you to build wealth, and lower your stress levels overall (nearly 2 in 3 adults say that money is a significant source of stress). Financial education is extremely important to manage everyday life, navigate an unexpected event, or save for a comfortable retirement. It also plays a crucial role in racial equity. Data suggests that Asian and White Americans tend to score higher than Black and Hispanic Americans when asked six basic questions about finances. Likewise, studies by the Federal Deposit Insurance Corporation (FDIC) have found that at least 12 percent of Black and Hispanic households in the US are underbanked. Those that are underbanked are more likely to use check cashing centers, payday loans, pawn shops, and other expensive alternative financial services to manage their money. While these services may seem like a good idea, they end up costing everyone more money in the long run. One of the top reasons unbanked people report not having a bank account is because they don’t trust banks. People don’t trust what they don’t understand. Sadly, a variety of financial topics fall into this ‘don’t understand’ and the ‘feel embarrassed asking’ category – from investing to building good credit. This leads us back to financial education, and why it is so important. A lack of financial understanding can keep entire communities – generationally – from reaching their full potential. To build financial equity, we must invest in immersive financial education. Educating youth and adults about money management and basic financial principles has no downsides. While our country has made strides to advance financial education in recent years, change can’t come fast enough for the millions of Americans that lack a clear understanding of financial management, or what they are capable of doing to change the trajectory of their life situation. Less than half of states in the United States require financial education to graduate high school. Even when required, schools often lack the expertise and resources to implement. 43 percent of millennials have reported using expensive alternative financial services. Likewise, 37 percent can be defined as ‘financially fragile,’ meaning they would be unable to come up with $2,000 within a month in an emergency situation. My advice is this: make building financial knowledge a personal goal and, together with your children, access financial education resources. Financial education can be an empowering family legacy affair. Master Your Card offers a comprehensive learning platform for adults seeking to boost their financial knowledge (and it’s free!). Likewise, my non-profit organization, WorldofMoney (powered by the YWCA Metropolitan Chicago), is fully committed to developing financially responsible adults, one child at a time. We offer proven programming and financial education resources for youth, 7-21 years of age. Next time you puzzle over how to pay a bill on time, or why you were rejected for a car loan, remember that financial education is key to unlocking a more prosperous future. Master Your Card and WorldofMoney have the resources you need to succeed, you just need to know where to look! Remember, fiscal security and generational wealth begins with immersive financial education. We are here to support!

# Small Businesses

# Handouts

How to Protect Your Business From Cyberattacks

August 3, 2021

By Alexander Niejelow, Senior Vice President for Cybersecurity Coordination and Advocacy at Mastercard In a world where technology is rapidly becoming more intelligent, every business is vulnerable to cyberattacks. In fact, 50% of small- and medium-sized businesses have experienced a cyberattack 1, and only 14% of SMB owners rate their ability to mitigate cyber risks and attacks as highly effective 2. It may go without saying, but if cyber readiness isn’t a consideration for your business already, it needs to be. There are lots of steps you can take to decrease your chances of being victim to a cyberattack. You can start right here, just keep reading. Back up your data Regularly backup the data on all computers. Backup data automatically if possible, or at least weekly and store the copies either offsite or in the cloud. Focus on technology Keep your business information safe by updating your software regularly. these critical security updates protect against hackers looking for cracks to slip through. Likewise, installing an email security software is vital in uncovering whether an email is carrying a malware. The software will scan all incoming emails and will notify you if the email contains dangerous malware. his is especially important when you consider the fact that malicious email attacks increased 667% in 2020, and 91% of all cyberattacks begin with a phishing email. A firewall is a set of related programs that prevent outsiders from accessing data on a private network. Make sure the operating system’s firewall is enabled or install free firewall software available online. Human factor 95% of cybersecurity breaches are due to human error 3. Train employees in security principles. Establish basic security practices and policies for employees, like requiring strong passwords. Establish rules of behavior describing how to handle and protect customer information and other vital data. Have an attack response ready In the unfortunate event that your business or website has been hacked or is in the process of being hacked, there are specific procedures you can take as part of an attack response plan to counteract the actions of the hackers: First, if your business or website is in the process of being attacked, immediately disconnect your system from its network. Next, you’ll want to notify your bank, your processor, as well as the payment networks you use so they are aware of the issue at hand. Typically, one of these partners will be able to offer insight on how to deal with the problem and provide specific steps to minimize any liability. Isolate the entry point of the hacking attempt. Once you’ve done this you will want to un-install the infected system to rid the virus from your networks. Afterwards, you can reinstall the system which was originally infected by the virus. Most importantly, communicate with your customers. If your customers have been directly affected by the virus, be honest and unambiguous. Help them to resolve any issue they may be experiencing from a data breach with swift action. Every business deserves protection to combat cyberattacks and cyber threats. Rapid technological advancements have increased vulnerabilities in companies, and, in some cases, the security of data and information has been compromised. If you want to learn more about how you can protect your business – and yourself – against cyberattacks, check out Mastercard’s Trust Center. 1 Momentum Cybersecurity Almanac, 2020 2 Shepherd, 2019 3 Milkovich (2021), from https://www.cybintsolutions.com/cyber-security-facts-stats/

# Individuals

Keep Your Passwords Safe with These Tips

August 2, 2021

Passwords are the gatekeepers to your most important personal and professional information. A poor password puts individuals at risk of having their information exposed. To ensure your accounts are protected, use these tips. Use two-factor authentication Two-factor authentication (2FA) is an extra layer of security that requires two steps for a user to log in. Typically, 2FA involves having an extra one-time password sent to a trusted email address or phone number before letting someone login. If a service you use offers 2FA, use it! Always have 8 or more characters When creating a password, make sure you have at least 8 characters in it. Keep in mind that the longer, the better. The best passwords are 16 characters or more. Use uppercase and lowercase characters Alternating between uppercase and lowercase letters may seem trivial, but it can be your saving grace when it comes to keeping your accounts safe. Use numbers (0 through 9) and non-alphanumeric characters Remember that you’re not tied to just letters when creating a password! Adding in numbers and symbols (think ! @ # %, etc.) will make your password that much harder to guess. Avoid personal information Personal information like birthdays, your birth city and your anniversary are easy guesses for hackers. Try to avoid using these key dates in your passwords. Never use the same password on multiple sites If a hacker guesses one, they can guess them all! Protect your accounts across websites by using different passwords on different platforms. Change passwords regularly Being nimble and changing your passwords regularly will keep your accounts safe. Experts suggest that the everyday person should change their passwords about every 90 days. We recommend setting a reminder on your calendar to help you remember. Don’t share passwords It may go without saying, but never share your passwords. If you must share a password with someone, make sure to do it over the phone instead of via email or text. Now that you have the tips, share them with your friends and family and check out other resources that can help you stay one step ahead of harmful cyber activity.

5 Tips to Free Yourself from Financial Worry

July 22, 2021

If you find yourself stressed about saving for the future, making a big purchase, managing your credit, or just organizing your personal finances, these 5 tips will help you free yourself of financial worry in no time. 1. Learn Basic Financial Concepts Having a basic understanding of financial concepts is vital to financial freedom. If you’ve ever felt like you lack financial knowledge, you’re not alone. In the United States, only 55% of adults consider themselves financially literate. But, there’s good news…Master Your Card has resources to help anyone build a solid financial knowledge foundation, even kids! 2. Develop a Budget and a Savings Plan Sticking to a budget can sound intimidating but having a plan for your money ensures you’re staying within your financial limits. A budget and a savings plan are key factors to finding and maintaining financial freedom. Need a little help? Check out our guide to budgeting that helps you allocate a dedicated amount of money for each of your needs to keep unnecessary expenses to a minimum. 3. Monitor and Manage your Credit Understanding your credit score allows you to take pulse checks on your overall financial wellbeing, with the higher the score, the better. A strong credit score allows you the privilege to buy goods and services under the agreement you will pay it back later and also assists in securing you the most optimal interest and loan rates. As you might guess, your credit score often comes into play when buying a car or a house. Check out our tips on how to maintain and manage your credit to learn more. 4. Understand your Payment Options Did you know that not all payment cards are credit cards? Choosing the right payment card for you can open doors to financial freedom. We have resources on all electronic payment options, from prepaid to debit and credit cards. 5. Protect Yourself from Fraud In an increasingly digital economy, it’s important to make sure your finances are secure from fraud. Although your payment network may protect you in the case of fraudulent activity, there are extra steps, such as using contactless payments and chip cards, that can make a world of difference in protecting yourself. Check out our resources for tips!