Not only do most airlines now charge for in-flight food, but more and more are going to a no-cash policy. The airlines say it's more convenient and more profitable to make passengers pay with plastic. According to an article in the LA Times, Aloha Airlines has seen a 30 percent boost in in-flight alcohol sales since it went to plastic-only. An airlines representative explained, "People are much more likely to spend money on a credit card than to fish the cash out of their wallets."
Matt's View
It's a fact of life that we're moving toward a cashless society. And that makes it all the more important to understand our tendency to spend more when using plastic. The best ways to save on tray-table dining are to BYO food and opt for the usually still free in-flight non-alcoholic drinks.
We will soon have a new, albeit cumbersome, weapon in the fight against identity theft. According to an article on Bankrate.com, by next month people in all 50 states will be able to freeze their credit file at all three of the major credit bureaus. Everyone already has the right to place a fraud alert on their file for free, which notifies potential creditors that an applicant may be using a stolen identity. A credit freeze goes further, preventing potential creditors from receiving an applicant's credit report or score, making them less likely to grant credit. However, freezing your account takes a bit of work. You have to contact each of the bureaus ( TransUnion
, Experian
, and Equifax
) individually, and in most cases, by mail. There also may be a fee, depending on where you live.
Matt's View
It's amazing how much the cards are still stacked against us when it comes to managing our financial identity. Having to mail in a request for a credit freeze seems antiquated (although you can put a fraud alert on your file over the phone), and I'm sure I'm not the only one who doesn't like having to pay for my credit score.
When it comes to protecting our financial identity, the best practice is to zealously protect your Social Security Number. Don't use it as an ID for any online accounts, don't put it on your driver's license or checks, and check your credit report
every year for any errors or suspicious entries. At least the report is free.
In the last issue
of Matt About Money I mentioned that your enrollment in the Do Not Call registry may be expiring soon so now is a good time to check, and if needed, re-register. One other way to cut down on all of the marketing messages coming into your home is to opt out of credit card and insurance offers that you receive by mail. According to Money magazine, you can do so here
.
Matt's View
The site will ask you for your Social Security Number. However, as you'll see in the FAQ section, you are not required to include this information.
It's open enrollment time at a lot of workplaces, the time of year when employees choose their benefits for next year. If your company offers a flexible spending account (FSA), participating could very likely save you some money on taxes. According to Hewitt Associates, the vast majority of large companies offer such accounts. However, less than one-quarter of employees take part.
With an FSA, you agree to set aside a specific amount of your pre-tax income to cover any out-of-pocket medical expenses. The money can be used for deductibles, co-pays, other out-of-pocket medical expenses, and even a variety of childcare expenses, including summer or day camps. Your benefits department will have a full list of eligible expenses.
Matt's View
The main issue to be aware of is that FSA money cannot be rolled over from year to year. So, estimate what your out of pocket expenses were for this year and use that as a guideline for choosing how much to set aside for next year.
