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Yahoo
09-05-2025
- Business
- Yahoo
Using AI for Financial Advice? 4 Ways To Protect Your Money (and Privacy)
The proliferation and gradual sophistication of generative AI tools such as Gemini, Claude, and of course ChatGPT has turned most casual users into experimenters themselves, whether it be asking these models to provide a complete shopping list or to help with this year's tax filing. However, as CardRates reported, a majority of Americans (67%) now also feel comfortable letting AI tools assist them with their banking routines. While only about one-fifth (18%) of those surveyed reported using AI tools to help with banking on a monthly basis, an even greater proportion (nearly a quarter, at 28%) expressed concerns over privacy in this regard. What can be done to help mitigate the privacy risks associated with allowing AI tools to have a hand in your personal banking regimen? Ignorance may be bliss, but it can be extremely costly when it comes to your financial knowledge, particularly as AI integrates itself into the banking realm at a breakneck pace. As J.P. Morgan suggested, it's vital for consumers of banking products to educate themselves as to the current and prospective future capabilities of generative AI assistants and AI banking tools, lest they be taken advantage of. 'Publicly available tools capture, share and build on information, making it potentially accessible by those with malintent,' the firm stated. 'Many of these generative AI tools, apps and chatbots are currently not subject to any government regulations, ethics rules and governance structures, no matter how sophisticated these tools might seem.' Know that any public-facing information about you on the internet is likely scraped by these models, and that any information in your overall user profile is generally captured, as well. While most online banking portals already require this step, be sure that you are taking advantage of every opportunity to avail of multi-factor or two-factor authentication protocols. These typically come in the form of requiring a text message or email sent to a verified address with a PIN code, or for biometric information (such as a facial scan, or a fingerprint) to be inputted through your smartphone. Malicious hackers (or even malicious AI models themselves) may be stymied by your deployment of this sort of authentication on all banking and investment accounts. It never hurts to have a second barrier to entry for dishonest parties to clear before gaining access to your finances. Simply put, making sure that you do not offer up any personal details you do not have to provide when dealing with AI assistants or chatbots is good cybersecurity practice — as is enabling a reliable and trustworthy VPN whenever engaging with AI tools. A VPN can help to obscure your IP address in addition to other geographical or personal details about you, and refusing to offer any more information than is directly necessary when speaking to artificial intelligence tools can help to restrict data or privacy leaks, should they occur. Central Michigan University professor Qi Liao was firm in his assessment on today's tech-heavy banking and financial sphere: We are now living in a brand-new era when it comes to the elevated sophistication of phishing schemes mining your personal financial information. 'Beyond exploiting system weaknesses, AI is revolutionizing social engineering attacks. Attackers can now automate and personalize phishing schemes by analyzing social media data. AI-generated deepfakes, including realistic audio, video and images, have been weaponized for scams such as blackmail, impersonation and financial fraud,' Liao said. 'These tools enable attackers to execute crimes like online banking fraud, fake ransom demands and large-scale financial scams,' he added. So, be sure to second-guess your interactions online or on the phone, even if the messages or calls appear to be from a trusted friend, family member or financial advisor. If something seems 'off' or is setting of alarm bells in your head, trust your instinct and follow-up with some due diligence before proceeding any further. You could end up saving yourself a great deal of trouble, and your wallet, in so doing. More From GOBankingRates 6 Used Luxury SUVs That Are a Good Investment for Retirees The New Retirement Problem Boomers Are Facing 7 Overpriced Grocery Items Frugal People Should Quit Buying in 2025 How Far $750K Plus Social Security Goes in Retirement in Every US Region Sources: 'America's Banking Habits: Survey Finds 84% Concerned About Banking Cybersecurity' Central Michigan University, 'How can you protect your privacy, money from AI?' J.P. Morgan Private Bank, 'AI tools and your privacy: What you need to know' This article originally appeared on Using AI for Financial Advice? 4 Ways To Protect Your Money (and Privacy) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New York Post
30-04-2025
- Business
- New York Post
This simple ‘1% rule' could save you hundreds of dollars — and curb your dangerous impulse spending
Think twice before dropping that cash — your future self will thank you. A budgeting hack known as the '1% rule' is gaining traction for helping people pump the brakes on pricey, impulsive purchases — and it's so simple, even your most shop-happy friend could use it. If you're eyeing a non-essential splurge — say, Gen Z-coveted front-row concert tickets, a high-end espresso machine, a weekend getaway at a fancy resort, or a new gaming console — and it costs more than 1% of your annual income, hit the brakes. Advertisement 4 If you're considering a non-essential purchase — like a designer kitchen appliance, a premium bicycle, a luxury fitness tracker, or a spa retreat — and it costs more than 1% of your annual income, it's time to pause. Yingyaipumi – Give yourself 24 hours to think it over before swiping your card. If you earn $50,000 a year, anything over $500 should trigger a 'cool-off' period. Originally shared by Glen James of My Millennial Money via CNBC, the 1% rule helps put a mental speed bump between you and your next shopping spree — without requiring you to give up treats entirely. Advertisement 4 While $500 might seem significant, it's easy to rationalize such purchases, particularly when you're scrolling through flash sales or tempted by a 'limited edition!' notification on your go-to shopping site. Antonioguillem – 'It isn't anything 'official' that you need to stick to,' Bobbi Rebell, CFP and personal finance expert at CardRates, recently told Bustle. 'The 1% rule is also a good way to keep things in perspective and get a sense of whether it's going to derail your finances.' Advertisement And while $500 may feel like a lot, that kind of purchase can become dangerously easy to justify — especially when you're doom-scrolling through sales or seduced by a 'last one left!' tag on your favorite shopping app. 'This rule reminds you to stop and think the purchase through,' said Rebell. 'If you'll actually use the purchase, that's fine … but if it's just a heat-of-the-moment urge, that's when the 1% rule might help pass up the item — and ultimately save big.' The strategy even works in reverse. Instead of spending that chunk of change, stash it away. That way, 'you intentionally put the money into savings instead,' Rebell said. Advertisement 'Think of it as a gift to your future self!' she said. But fair warning: this isn't a license to 1% your way into debt. 4 Repeatedly applying the 1% rule can quickly lead to significant spending, experts say, but it's not meant to be used frequently; experts advise using it sparingly for maximum effectiveness. Antonioguillem – 'If you apply the 1% rule over and over, you can end up spending a tremendous amount of money,' she cautioned. 'It's not a rinse and repeat kind of thing. It has to be used very sparingly.' Of course, spending discipline doesn't stop at handbags. Even your grocery cart could probably use a budget-friendly makeover. Enter Chef Will Coleman, who recently went viral for his '6-to-1 grocery shopping method' — a simple hack designed to help families save hundreds on food each month. Advertisement 'Whenever you go grocery shopping … use the '6-to-1' method,' Coleman explained in a TikTok viewed nearly a million times. 'You grab six veggies, five fruits, four proteins, three starches, two sauces or spreads and one fun thing for yourself.' 4 The '1%' rule and '6-to-1' hack encourage you to pause and evaluate your purchases. Monkey Business – Advertisement He created the formula after realizing his shopping habits were draining his wallet — and wasting food. 'This makes grocery shopping way easier, way cheaper, and you get in and out, so you're not there all day long,' Coleman added.
