Description
An important task along your financial journey involves learning about and using tools and techniques to become a better consumer. Some people are so fearful of losing control of their spending that they refuse to use financial tools that can help improve their financial situation. Others don’t fully grasp the negative outcomes associated with the misuse of some financial tools. Once you know how to use financial tools wisely, you’ll realize that they can be an efficient way both to manage your spending and make purchases more convenient and safer.
Here are some areas, and new trends, for discussion:
1- Visit the Consumer Financial Protection Bureau website and research the advantages and disadvantages associated with overdraft protection. Specifically, determine when adding overdraft protection to a checking account may be an appropriate financial planning strategy. What type of consumer should avoid overdraft protection?
2- Discuss debit cards features that help to prevent someone else from using your card without your authorization (for example the Visa Mobile Location Confirmation app.).
3- Many consumers are drawn to prepaid cards because the card provider advertised that there are no “credit checks” or “overdraft fees”. Is this technically accurate? Or somewhat misleading?
4- A national shift toward smart-chip technology (sometimes called EMV) is revolutionizing the credit card industry. What are the reasons credit card companies are moving toward smart-chip technology and away from traditional credit cards with a magnetic strip.
Explanation & Answer
Final file
Running head: FINANCIAL TOOLS
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Financial Tools
Name of Student
Institution affiliation
FINANCIAL TOOLS
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Financial Tools
Advantages and disadvantages of overdraft protection
Overdraft protection is of great advantage to consumers because it allows consumers to
clear their checks even when they don’t have the required money in their checking account.
Additionally, it also allows the transfer of fees from linked accounts thereby making payments
much easier. However, overdraft protection is a...
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