<p>Are you playing catch-up with your finances? You're not alone! In a world where the cost of living keeps climbing, it's easy to feel overwhelmed. But you don’t need to be a financial expert to get a grip on your money. Let’s break down the basics.</p>
<p><b>Financial literacy is the ability to understand and effectively use various financial skills, categorised by the four fundamental pillars of finance: debt, budgeting, saving, and investing.</b></p>
<p>But alarmingly, almost three-quarters (73%) of the country fell below the benchmark for financial literacy, and just 5% could answer 10 questions about frequently discussed topics correctly.* </p>
<p>With April marking Financial Literacy Month and Stress Awareness Month – a coincidence, we think not. Taking baby steps to get control of your finances can help tackle both issues. If you know how to manage them, you can often make them go further. </p>
<h5>Debt, you’ve been misunderstood</h5>
<p>Debt is an amount owed to a person or organisation for borrowed funds that need to be repaid. Whether it's your student loan, credit card, or mortgage, debt often comes with interest, so being hyper-aware of your terms and conditions is essential.</p>
<p>But being in debt isn’t always a bad thing. Effectively managing debt and creating a foolproof strategy for paying off debts in time and in full can be a great way of paying for goods and services in the short term while also working to boost your credit score, which can help when taking out loans and mortgages in the future.</p>
<h5></h5>
</p>
<h5>Budgeting, keeping your eyes on the price</h5>
<p>Effective budgeting is all about knowing what’s coming in and what’s going out. Simple, right? Keep an eye on your spending habits to see where you could cut some unnecessary expenses too.</p>
<p>Making the most of Kroo’s zero fees abroad or using the simple tools in place for splitting bills with your friends through the Kroo app can help make sure you’re not losing some of your hard-earned cash – and budget for the month – when you don’t need to.</p>
<h5>Saving, keeping your eyes on the prize</h5>
<p>We all aspire to be great savers, but life happens, and at the end of the month, it can feel like mission impossible sometimes. To ensure you can save, set aside even a small portion of your income as soon as it comes in, rather than waiting to see what is left at the end of the month. Little by little, it adds up – even saving £1 a day can leave you with over £300 set aside at the end of each year!</p>
<p>Kroo Pots come in handy here, giving you a dedicated space to save. You can give each Pot an individual name and use (whether it’s a dream holiday or a dream home), which can help keep you on track.</p>
<h5>Investment, making your money grow (potentially)</h5>
<p>Unlike savings, where you put your money aside and watch it grow, investing your money gives it the potential to grow through external factors.</p>
<p>Investing, at its core, involves buying an asset and selling it on to make a profit, or ‘capital gain’. This can involve the buying of shares, bonds, commodities or directly linking to property. The price of the assets you buy is affected by market price and goes up or down based on this. </p>
<p>But thinking about investment in individual terms could involve being aware of how to invest in yourself and your future. This could be through the simple act of getting serious about saving or enquiring further about how your organisation is managing your pension, if this is something that applies to you. Or it can even involve whether you should be investing in upskilling yourself to give you the best chance of landing a new role or promotion in the future.</p>
<p>Ultimately, investing can be a powerful tool but is something that shouldn’t be taken lightly without understanding the risks and potential pitfalls involved.</p>
<p>Improving your financial literacy doesn’t have to be stressful. This financial literacy and stress awareness month, take control and start small.</p>
<p>Here are five quick-fire actions you can take to get started today:</p>
<ul>
<li>Setting up a dedicated savings Pot with your Kroo current account and working out how much you can commit to pay in from your income each month</li>
<li>Having a subscription service audit – are you really using that streaming service?</li>
<li>Signing up for the Money Saving Expert weekly newsletter, which comes crammed with timely tips, tricks and actionable steps to take</li>
<li>Creating a spending diary for the week and monitor your outgoings to see where you could make little savings which add up</li>
<li>Checking out comparison tables and making sure you’re getting a good deal and a high interest rate on your current account – like you do with Kroo!</li>
</ul>
<p>Take control and start small. You’ve got this!</p>
<p>To find out more about a wide range of topics relating to financial literacy please check out the below pages:</p>
<ul>
<li>
<p><a href='/blog/tackling-your-financial-goals'>Kroo – Take Control of your Finances for 2024</a></p>
</li>
<li>
<p><a href='https://www.moneysavingexpert.com/family/financial-education/' target='_blank' rel="noopener">Money Saving Expert – Financial Education</a></p>
</li>
<li>
<p><a href='https://themoneycharity.org.uk/resources/' target='_blank' rel="noopener">The Money Charity - Resources</a></p>
</li>
<p>*Source: https://www.wealthify.com/blog/what-is-the-uk-s-level-of-financial-knowledge</p>


Financial literacy 101: How to take control

<p>An impersonation scam is where you're convinced to make a payment to someone claiming to be from an organisation you trust. This could include a bogus tax refund offer or providing your bank details to “your bank”.</p>
<p>Often, these scams begin with a call, email or text message that appears to be from a trusted organisation. Criminals use a tactic called spoofing to make their call or text message appear genuine by cloning the number or sender ID the organisation uses. Criminals copy designs and the branding of genuine websites to trick people into handing over their personal information. These details are then used to access people's bank accounts or are sold on.</p>
<h5>How to spot an impersonation scam:</h5>
<ul>
<li>
You receive a call, text or email out of the blue with an urgent request to make a payment or request for your business's financial information.
</li>
<li>
You're asked to act immediately, sometimes with the claim that “payments need to be verified” or to claim “a pending tax refund”.
</li>
<li>
The caller may ask you to download software onto your computer/mobile device.
</li>
<li>
The sender's email address domain is different to that of the genuine organisation.
</li>
</ul>
<h5>Example of pending tax refund</h5>
<p>You receive an email from what appears to be HMRC informing you that you are eligible for a tax refund, with a link leading to the “official claim application form”. Some extra funds would be great as you need to start paying off that holiday! You click the link and hurriedly fill out the form, not wanting to miss the stated deadline. However, you failed to notice that the email you received was, in fact, not from HMRC, the link the email contained was inconsistent with the official GOV.UK's URL and the email addressed you as “Dear Customer” instead of using your full name. The form you had just completed with all your personal information was also fake.</p>
<p>Several days later, you notice transactions you don't recognise on your bank statement.</p>
<p>If only you had taken a moment to contact HMRC directly to validate the request prior to completing the form and handing over your details.</p>
<h5>HMRC - How to protect yourself</h5>
<p>Do not click or open attachments or links in unexpected emails and messages (they may contain malicious software).</p>
<p>Do not type your bank or card details into a website link (this may result in unrecognised transactions).</p>
<p>Please be advised that HMRC sends text messages to some of its customers. In the text message, they might include a link to GOV.UK information or to HMRC webchat. HMRC will never ask for personal or financial information when they send text messages.</p>
<p>HMRC uses QR codes in 2 different ways:</p>
<ul>
<li>
QR codes are sometimes used in letters and correspondence, but only to guide you on GOV.UK — they will not take you to a page where you have to input personal information.
</li>
<li>
When you are logged into your HMRC account, a QR code may be used to redirect you, for example, to your bank login page.
</li>
</ul>
<p>If HMRC uses QR codes in communications you'll be able to see them on the genuine HMRC contacts page.</p>
<h5>What to do if you've fallen victim to a scam?</h5>
<p>If you believe you have fallen for a scam, immediately contact your bank on a number you know to be correct, such as the one on the back of your bank card.</p>
<p>To help fight phishing scams, you should send any suspicious HMRC text messages to 60599 (network charges apply) or email phishing@hmrc.gov.uk, then delete them.</p>
<blockquote>
<p>
<b><br />
      Report it to Action Fraud on 0300 123 2040 or via actionfraud.police.uk. If you are in Scotland, please report to Police Scotland directly by calling 101 or Advice Direct Scotland on 0808 164 6000.</b>   </p>
</blockquote>
<p><b>Visit <a href="https://www.takefive-stopfraud.org.uk/" target="_blank" rel="noopener">https://www.takefive-stopfraud.org.uk/</a> for further information.</b></p>
<p>References</p>
<ol>
<li><a href="https://www.gov.uk/government/publications/phishing-and-bogus-emails-hm-revenue-and-customs-examples/phishing-emails-and-bogus-contact-hm-revenue-and-customs-examples#:~:text=We%20advise%20you%20not%20to,gov.uk%20then%20delete%20them" target="_blank" rel="noopener">https://www.gov.uk/government/publications/phishing-and-bogus-emails-hm-revenue-and-customs-examples/phishing-emails-and-bogus-contact-hm-revenue-and-customs-examples<br />
</a>
</li>
<li>
<a href="https://www.takefive-stopfraud.org.uk/advice/business-advice/impersonation-scam-business/" target="_blank" rel="noopener">https://www.takefive-stopfraud.org.uk/advice/business-advice/impersonation-scam-business/<a/>
</li>
<li>
<a href="https://www.independent.co.uk/money/hmrc-tax-return-scam-refund-b2496030.html" target="_blank" rel="noopener">https://www.independent.co.uk/money/hmrc-tax-return-scam-refund-b2496030.html<a/>
</li>
</ol>


What is an impersonation scam?

<p>In a romance scam, the victim is persuaded to transfer money to someone they've met online, with whom they believe they have built a romantic relationship. The relationship is usually established on social media or via dating apps/ websites. Once they've established their victim's trust, the scammer may claim to be experiencing problems, such as issues with their visa, health issues, family issues or flight tickets and ask for money to help.</p>
<p>Scammers continue to use a range of tools and techniques to systematically groom, isolate and manipulate victims to exploit them for financial gain. They use fake personas, sites and companies, fabricated narratives and false documents to bolster those narratives.</p>
<p>Romance scammers rely on kindness and use highly manipulative and coercive techniques to exploit this for their gain.</p>
<h5>Warning signs it might be a scam:</h5>
<ul>
<li>
They may express strong feelings early on and attempt to progress the relationship quickly. One tactic is making their victim feel special early in the conversation.
</li>
<li>
If you're chatting on your usual social media platform or an official dating service, they may try to move the conversation to WhatsApp or Telegram.
</li>
<li>
Romance scammers will encourage secrecy and may influence you only to trust them. They may try to isolate you from your family and friends.
</li>
<li>
They usually avoid answering personal questions about themselves. The details they tell you seem made up or don't reflect the truth. For instance, they may say they're university-educated, but their spelling and grammar are poor.
</li>
<li>
There will always be an excuse why they can't meet in person or show themselves on camera. They say they live overseas or somewhere remote, or their technology isn't working.
</li>
</ul>
<h5>Other things to look for:</h5>
<ul>
<li>
Their online profile doesn't match what they tell you about themselves.
</li>
<li>
They talk about money or investments. They might say they know about cryptocurrency and offer to teach you.
</li>
<li>
You're asked for personal photos, videos or information they could use against you in the future.
</li>
<li>
The scammer gets desperate or angry if you don't do what they ask. They may threaten to cut off the relationship.
</li>
</ul>
<blockquote>
<p>
Two in five people (38 per cent) who dated someone they met online were asked for money</p>
</blockquote>
<blockquote>
<p>Over half (57 per cent) of those who were asked for money said that they gave it or lent it</p>
</blockquote>
<h5>The impact of romance scams</h5>
<p>Romance scams can have devastating consequences for the victims. Emotionally, individuals who fall prey to these scams often experience feelings of betrayal, embarrassment, and heartbreak. The psychological impact can be long-lasting, leading to trust issues and difficulties in future relationships.</p>
<p>Financially, victims suffer significant losses. Scammers may drain their victims' bank accounts, persuade them to take out loans, or even convince them to send large sums of money. The financial burden can be overwhelming, leading to debt, bankruptcy, and severe financial hardship.</p>
<h5>City of London Police have confirmed that £92.8m was lost in the UK last year.</h5>
<p>We continue the fight against romance scammers so people can protect their money and prevent long-term emotional and psychological damage from callous criminals.</p>
<h5>Steps you can take to protect yourself:</h5>
<ul>
<li>
If your online connection asks you for money, they are likely a scammer. Stop contact right away and seek support.
</li>
<li>
Don't send money, card, or bank details or important identity documents like your passport to someone you've only met online, no matter how long you've been messaging them.
</li>
<li>
Be cautious of moving money on behalf of someone you haven't met. You may be roped into illegal activity such as money muling.
</li>
<li>
Trust your instincts - If you feel like something is wrong, it may be.
</li>
<li>
Reach out for a second opinion - if you are unsure, you can contact your bank, family and friends for their opinion.
</li>
</ul>
<h5>Check the person is who they say they are.</h5>
<ul>
<li>
Take things slowly, ask lots of questions and watch for things that don't add up.
</li>
<li>
Conduct research on the person by checking their digital presence to find out how active they are on various social media platforms.
</li>
<li>
Perform a reverse image search of their profile photo and see if it belongs to someone else. You can do this by uploading a picture of the person you are talking to into your search engine to check that profile photos are not associated with another name or Google “reverse image search”.
</li>
</ul>
<h5>Be careful what you share (and what you don't).</h5>
<ul>
<li>
Never send intimate pictures or videos of yourself to people you don't know. Scammers use these to blackmail people.
</li>
<li>
Don't keep your online relationship a secret. Speak to people you know about it. It can be easier for others to spot the warning signs.
</li>
<li>
Be careful about what you share about yourself online. Scammers can use information about your hobbies, job or family to target you.
</li>
</ul>
<h5>Tips on how to spot a fake profile. They usually have:</h5>
<ul>
<li>
Photos that look too professional
</li>
<li>
Very little personal information
</li>
<li>
No connection to social media accounts
</li>
<li>
Few comments, likes or shares on their social media from other people
</li>
</ul>
<p>Romance fraud is one of the top five most commonly reported frauds to Action Fraud, the national fraud and cybercrime reporting service for England, Wales and Northern Ireland. Action Fraud also runs the National Economic Crime Victim Care Unit (NECVU), which provides support and advice to victims of fraud and to help prevent them from being victims of fraud again.</p>
<blockquote>
<p>
<b><br />
If you think you’ve been a victim of scam/fraud, contact your bank immediately and report it to Action Fraud online at actionfraud.police.uk or call 0300 123 2040.</b></p>
</blockquote>
<h5>Keep yourself and your money safe.</h5>
<p>References</p>
<ol>
<li><a href="https://www.ukfinance.org.uk/press/press-releases/nearly-40-cent-people-looking-love-online-were-asked-money" target="_blank" rel="noopener">https://www.ukfinance.org.uk/press/press-releases/nearly-40-cent-people-looking-love-online-were-asked-money<br />
</a>
</li>
<li>
<a href="https://www.cityoflondon.police.uk/news/city-of-london/news/2023/october/romance-fraudsters-break-hearts-and-bank-balances-with-92.8m-lost-in-the-uk-last-year/" target="_blank" rel="noopener">https://www.cityoflondon.police.uk/news/city-of-london/news/2023/october/romance-fraudsters-break-hearts-and-bank-balances-with-92.8m-lost-in-the-uk-last-year/<a/> - Published on 02/10/2023
</li>
</ol>


Keep your money safe.

<p>This Valentine's Day, we at Kroo want to make sure you're in a healthy financial relationship. Our guide to spotting the four red flags of banking should help you avoid financial heartbreak and find a solid banking connection you can cherish.</p>
<h5>Love bombing</h5>
<p>Did your bank come on strong from day one, luring you in with false promises? </p>
<p>Unfortunately, some banks are motivated to shower new customers with cash rewards and attractive perks, only to catch you out with hidden fees once you're onboard. Find a provider who will love you long-term with a reliable offering. </p>
<h5>Catfishing</h5>
<p>Like your online date, your bank might not be as good as they appear. </p>
<p>Banking agreements come with fine print, but watch out for hidden clauses that are looking to catch you out. A healthy banking relationship should be transparent and built on trust. That means no secret fees for cash withdrawals and no lurking charges for spending when you're abroad.</p>
<h5>Not having your best interests at heart</h5>
<p>If your current account isn't earning interest, it's time to rethink your financial commitment. </p>
<p>In a solid relationship, your partner will always have your best interests. The same goes for your bank. Our tracker interest rate is set 0.9% below the Bank of England's base rate on your current account, whether it goes up or down – so you always know what you’ll earn.</p>
<h5>Poor listener – It's always about them, never you</h5>
<p>Your bank should be listening to your needs and adapting its offering accordingly.</p>
<p>Has your bank asked you what you like about the experience so far? Have they asked you about what could make it better? Your banking experience should be about meeting your needs rather than theirs. </p>
<p>Do you have a product idea or feedback to share with Kroo? We have a product idea box in-app, so share it with us there! </p>
<p>This Valentine's Day, make sure your financial relationship is built on trust, transparency, and reliability. </p>
<p>Taking a closer look at your banking relationship and spot these red flags? It might be time to switch!</p>


A healthy financial relationship.

<p><b>2024 has arrived, and how time flies. But as the days start to get (a little) longer, have you considered setting yourself some financial goals for the coming year and beyond?</b></p>
<p>Whether saving for something big, paying off debt or just looking to get into healthy financial habits, now's the time to put your plan into action. And with our brand new feature, Kroo Pots, about to launch, you’ll have the perfect tool to separate your savings and make your goals happen. </p>
<p>In this blog, we'll talk about some key tips and considerations for effective money management – take a look below.</p>
<h5>Look back to 2023.</h5>
<p>Before taking steps to improve your financial wellbeing, it's essential to identify the areas that need attention. Take a look back at the past year. What sort of financial challenges did you face? Were you prepared for any unexpected costs? </p>
<p>Having a clear understanding of your behaviour is key to setting realistic goals. </p>
<h5>Set your financial goals.</h5>
<p>Once you've looked back, it's time to look forward. What changes are you looking to make? Is there something you want to save for? Perhaps a house or a holiday? Or maybe you want to clear some high-interest debt you've built up?</p>
<p>It might feel a little intimidating at first, but once you've broken these goals down into smaller steps, it'll feel much more realistic. </p>
<h5>Set your budget.</h5>
<p>It all starts with budgeting. Not the most thrilling subject, we know, but when you have a goal to aim for, it's well worth the effort. </p>
<p>Spend some time creating a detailed budget of your incoming and outgoing funds. Write it down or create an Excel spreadsheet. Include your fixed expenses; these are your expenses that are the same every month (e.g. rent and bills), your variable expenses that may differ depending on the month (e.g. takeaways and clothing), and any savings you might already have. </p>
<p>Try not to start by being too aggressive. The key to sticking to your budget is making it realistic in the first place. If you give it a few months and it's not working, review it and adjust.</p>
<h5>Create a rainy day fund.</h5>
<p>Unplanned expenses happen. Your car breaks down, and there's a hefty bill. Or your dog gets sick, and insurance won't cover it—or even job loss. </p>
<p>By creating a financial safety net, you keep your head above water, so you won't have to rely on loans or credit cards in the short term. Kroo Pots is the perfect feature for this. </p>
<h5>Restructure your debt.</h5>
<p>Debt can be scary and feel unmanageable fast. But it doesn't have to be all doom and gloom. Take some time to review your outstanding debts, including credit cards, loans, and mortgages and consider your refinancing options. You might be able to pay down any high-interest debt by reborrowing elsewhere at a lower rate. This means you'll have more money left to save at the end of the month. </p>
<h5>Review your outgoings.</h5>
<p>We all have a selection of outgoings every month that we pay blindly. Think Netflix, Amazon Prime or a rarely used gym membership. But if you think you can cull some of them, what are you waiting for? </p>
<p>And while you're at it, why not consider a side hustle? If you've got stuff you can get rid of, check out Vinted, Depop or Facebook Marketplace and make a little extra cash.</p>
<h5>Take a look at your credit score.</h5>
<p>The dreaded credit score... Be brave and take a look at yours. You'll find it can actually be really helpful when it comes to understanding your spending habits. </p>
<p>A credit score shows lenders how likely you are to repay a loan on time – based on your history of using credit and managing finances. You can improve your credit score by paying back on time, which may increase the likelihood of getting a mortgage approved. Missing payments has the opposite effect.</p>
<h5>Think about your retirement.</h5>
<p>For some of you, retirement might seem a long way off; however, future you will thank you for getting cracking with your preparations now. </p>
<p>Consider increasing your contributions to take advantage of employer matches or tax benefits. It really is never too early to start saving for later in life. </p>
<h5>Ask for help if you need it.</h5>
<p>Don't hesitate to ask for help when money worries weigh you down. Whether you're struggling to pay back debt or make ends meet, we're here to help you get a grip on your finances with support, suggestions and who to talk to. </p>
<p>You can talk to us in the app chat or visit our <a href="https://kroo.com/support-is-here" target="_blank" rel="noopener">support page</a> for more information. </p>
<h5>It's all about taking control of the situation.</h5>
<p>It might initially feel daunting, particularly if you've avoided the subject for a while. But there's something satisfying in taking your finances by the scruff of the neck and getting a handle on them. </p>
<p>Taking a proactive approach to your finances will pave the way for a more secure future. And remember, it's all about small, consistent efforts that can pay off down the line. Financial literacy is incredibly effective in money management, so spend some time learning how to make the most of your money now and long into the future.</p>


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Tackling your financial goals.

Financial literacy 101: How to take control

What is an impersonation scam?

Keep your money safe.

A healthy financial relationship.

Tackling your financial goals.

Financial literacy 101: How to take control

What is an impersonation scam?

Keep your money safe.

A healthy financial relationship.

Tackling your financial goals.

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