All the parents I know are so smiley and positive lately and there is a noticeable bounce in their step that I haven't seen in months. Oh yeah, school's back in session!
It’s that time of year again. The back-to-school frenzy has begun. Stores are running sales on backpacks and pencils, and computer companies are pushing laptops for the college-bound group. The money requirements on us hard working parents is back in full swing and once again the question of how to teach our kids how to handle the money that we give them for lunch, books and spending, rears its ugly head.
The Wall Street Journal ran a great column a few weeks ago on allowances. The main point of the article was that you should give your kids an allowance as soon as they can understand that money buys things. Now I am not suggesting that your kids should be paying for lunch or school supplies, or their books in college, but they should understand that now, that additional money needs to be part of your budget.
On Saturday, when we gave Zach his allowance we included additional money for the hot lunches that he wanted to get this week. We explained that we are now paying for this in addition to his allowance. His response was that he earns his money by doing work around the house for us, so that does not count. Not exactly the point I was trying to get across, but at least we tried.
To help you kids start saving money, Hawthorne’s Youth Account is a good place to start and Googolplex for Kids offers fun games & activities for kids of different ages.
I also found some good resources to help young kids understand financial literacy (I think I will need to make sure that visiting these sites get added to Zach’s list of things to do), they include:
Mykidscredit.com answers what you and your kids need to know about credit.
Jumpstart.org promotes financial literacy for K-12 youth. The site isn't especially pretty, but there's lots of good information there.
Consumerjungle.org. Click on students to practice money management skills.
For those of you will college age students, you can help get them off to the right start with some help from Hawthorne.
Student Loans We can guide you through the Federal Family Education Loan Program. Our credit union is an ideal place to learn about the Federal Family Education Loan Program (FFEL). While each loan varies according to your child's financial situation, here's an overview of Stafford and Parent Loans for Undergraduate Students :(PLUS).
Totally Free Checking With no minimum balance and no monthly fees, a student can save money and stay focused on studies. With Family Rewards, the ATM transactions could be free or discounted! The first 6 ATM transactions each month are FREE!
Hawthorne Visa® Check Card Accepted on and off campus, at millions of locations -- including grocery stores, book shops and gas stations. And it doubles as an ATM card, for access to cash. Hawthorne has 57,000 surcharge free ATM locations nation wide. We also offer a FREE easy ATM locator on our web site.
Student Visa® Credit Card Avoid high rate, high balance credit cards sold on campus. Provide your student with our card, which offers a low balance, low rate, no annual fee and a 25-day grace period on purchases. Great for emergencies!
Our student credit card offers a great way for college students to establish a credit history and learn to use credit wisely. The credit limit is $500 and is in the student's name. This card does not require a parent's signature.
Stay in Touch 24/7 You have the option to be a joint owner on the student account, which gives you access to view detailed, up-to-date activity checking account online at www.ehawthorne.org http://www.ehawthorne.org/.
Students out-of-state can call toll-free to access AnyTime® Phone.
Arrange for regular, automatic transfers from your account to your student's. You choose the date, the frequency and the amount. For more details, contact your nearest Hawthorne Credit Union office at 630-369-4070. Or, go online to http://www.ehawthorne.org/.
Friday, August 31, 2007
Friday, August 17, 2007
Sub-prime mortgage worries trigger market correction
Market volatility has increased dramatically in recent weeks. The new high of 14,000 on the Dow Jones Industrial Average on July 19 didn’t last long as the index fell 5.5% by the end of the month. The decline for the broader S&P 500 index was even greater, 6.3% in that same span. The catalyst for the downdraft was the housing market, particularly questions about the impact of rising delinquencies and defaults among lower grade mortgage holders. While housing construction and sales have slowed gradually over the past year, housing’s effect on the overall economy and stock market has been small. Other business sectors have remained strong, particularly those taking advantage of the growing international markets. However, the risk of actual defaults by borrowers in sub-prime mortgages has triggered concerns of losses spreading to other parts of the higher-risk debt markets and severely hurting stocks as well. Other analysts believe investors were seeking a reason to take short-term stock profits after the recent new highs in the markets, and the mortgage market problems merely provided that spark.
While most business sectors experienced declines in the sell-off, most of the pain was focused on those companies that had benefited significantly and now could suffer direct losses from the extension of the sub-prime loan problems. Home builders, mortgage companies, banks, and brokerage/investment management companies led the decline. Mortgage companies and brokerage stocks were particularly vulnerable due to their more direct involvement in facilitating the development of the sub-prime lending trend. Most of the major banking institutions had long recognized the potential risk of these kinds of loans and avoided significant involvement with either generating or investing in them. Recent second quarter earnings announcements show that severe losses have been contained to relatively lesser quality firms.
Against the fairly isolated sub-prime mortgage problems, second quarter profit reports support the view of a relatively steady economy. Second quarter GDP was better than expected. Reports to date by companies of the S&P 500 show second quarter profits modestly ahead of expectations. Wage and job growth offer support to the continuation of economic growth continuing at least through the year. This in turn leads to greater confidence that mortgage delinquencies will not spread to prime mortgage holders. However, many market analysts believe that market psychology may stay disconnected from the economic data and more focused on headlines surrounding mortgage-related problems for a while longer. This could lead to continued uneasiness among investors and more market volatility in the short-term.
Prepared by: Martin Cosgrove, CFA, Director of Investment Research
Research Department/ING Advisors Network
The views are those of Martin Cosgrove, Research Department, ING Advisors Network, and should not be construed as investment advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. All economic and performance information is historical and not indicative of future results. Investors cannot invest directly in indices. Please consult your financial advisor for more information.
Additional risks are associated with international investing, such as currency fluctuations, political and economic stability, and differences in accounting standards.
Financial Network Investment Corporation is an ING company. Affiliates and subsidiaries and/or officers and employees of Financial Network or ING may from time to time acquire, hold or sell a position in the securities mentioned herein.
While most business sectors experienced declines in the sell-off, most of the pain was focused on those companies that had benefited significantly and now could suffer direct losses from the extension of the sub-prime loan problems. Home builders, mortgage companies, banks, and brokerage/investment management companies led the decline. Mortgage companies and brokerage stocks were particularly vulnerable due to their more direct involvement in facilitating the development of the sub-prime lending trend. Most of the major banking institutions had long recognized the potential risk of these kinds of loans and avoided significant involvement with either generating or investing in them. Recent second quarter earnings announcements show that severe losses have been contained to relatively lesser quality firms.
Against the fairly isolated sub-prime mortgage problems, second quarter profit reports support the view of a relatively steady economy. Second quarter GDP was better than expected. Reports to date by companies of the S&P 500 show second quarter profits modestly ahead of expectations. Wage and job growth offer support to the continuation of economic growth continuing at least through the year. This in turn leads to greater confidence that mortgage delinquencies will not spread to prime mortgage holders. However, many market analysts believe that market psychology may stay disconnected from the economic data and more focused on headlines surrounding mortgage-related problems for a while longer. This could lead to continued uneasiness among investors and more market volatility in the short-term.
Prepared by: Martin Cosgrove, CFA, Director of Investment Research
Research Department/ING Advisors Network
The views are those of Martin Cosgrove, Research Department, ING Advisors Network, and should not be construed as investment advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. All economic and performance information is historical and not indicative of future results. Investors cannot invest directly in indices. Please consult your financial advisor for more information.
Additional risks are associated with international investing, such as currency fluctuations, political and economic stability, and differences in accounting standards.
Financial Network Investment Corporation is an ING company. Affiliates and subsidiaries and/or officers and employees of Financial Network or ING may from time to time acquire, hold or sell a position in the securities mentioned herein.
Securities are offered through Financial Network Investment Corporation, a registered broker/dealer and member of the SIPC. Financial Network Investment Corporation is not an affiliate of Hawthorne Credit Union. Mutual funds, annuities and other investments available through Financial Network Investment Corporation are not insured by the FDIC, NCUSIF or any federal government agency, are not deposits, or obligations of nor guaranteed by Hawthorne Credit Union, or any other affiliated entity. Investments are subject to investment risks including loss of principal invested
Everything you NEED to know about Identity Theft
News stories continue to appear about fraud committed with stolen personal information. Why is this so important? In today's information era, it is quite simply easy to have your identity stolen. As your credit union, committed to your financial safety, we feel you need to have the latest information to keep your self and your accounts safe.
Remember Hawthorne will NEVER ask for your personal information, account number, PIN, or any sensitive account information via email. If you receive an e-mail that claims to be from Hawthorne and asks for your account information- you should consider it to be a fraudulent attempt to obtain your personal account data for an illegal purpose and you should not follow the instructions in the e-mail. If you are confused or would like to verify the request, simply call 630-369-4070, 800-848-1697 (outside IL).
Some tips to help you REDUCE YOUR VULNERABILITY are listed below.
Remember Hawthorne will NEVER ask for your personal information, account number, PIN, or any sensitive account information via email. If you receive an e-mail that claims to be from Hawthorne and asks for your account information- you should consider it to be a fraudulent attempt to obtain your personal account data for an illegal purpose and you should not follow the instructions in the e-mail. If you are confused or would like to verify the request, simply call 630-369-4070, 800-848-1697 (outside IL).
Some tips to help you REDUCE YOUR VULNERABILITY are listed below.
- Do not sign the back of your credit cards. Instead, put "PHOTO ID REQUIRED".
- When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the "For" line. Instead, just put the last four numbers. The credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check processing channels won't have access to it.
- Put your work phone # on your checks instead of your home phone. If you have a PO Box use that instead of your home address. If you do not have a PO Box, use your work address. Never have your SS# printed on your checks. You can add it if it is necessary. But if you have it printed, anyone can get it.
- Place the contents of your wallet on a photocopy machine. Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel in case your wallet is stolen. We've all heard horror stories about fraud that's committed on us in stealing a name, address, Social Security number, credit cards. But above all- put these photocopies in a safe place!
- Never give your account numbers or Personal Identification Numbers (PIN) to someone who contacts you. The Credit Union (and most other financial institutions) will NEVER ask for your account information or PIN numbers in an email.
- Shred anything with your Social Security Number, birth date, or account number and all credit offers.
- Don’t carry your Social Security card, extra credit cards, passport or birth certificate in your purse or wallet if not absolutely necessary.
- Reconcile your accounts immediately, and challenge any purchases that you don’t remember.
- Cancel lost credit cards immediately. However, the key is having the toll free numbers and your card numbers handy so you know whom to call. Keep a separate list where you can find it quickly and easily.
- Report it to the Credit Union if your checkbook is stolen.
- File a police report immediately in the jurisdiction where your purse or wallet was stolen. This proves to credit providers you were diligent, and it is a first step toward an investigation if one is required.
- If you believe your Social Security number has been compromised, call the Social Security Administration’s fraud line to report it.
- Contact credit-reporting agencies. This is perhaps the most important and least discussed step. Call the three national credit-reporting agencies immediately and ask them to place a fraud alert on your name and Social Security number. With an alert in place, any company checking your credit knows your information was stolen and they must contact you by phone to authorize new credit.
Tuesday, August 14, 2007
Market Jitters
The market volatility over the past few weeks has been significant. Given the turbulence, it is good to hear from an expert (below) to keep everything in perspective. I believe in all markets it is important to keep invested according to a disciplined asset allocation based on your level of risk acceptance. It is also my belief that this is the way to grow wealth long term.
Stay the course!!
Mike Pozzi
Investment Adviser Representative
Securities are offered through Financial Network Investment Corporation, a registered broker/dealer and member of the SIPC. Financial Network Investment Corporation is not an affiliate of Hawthorne Credit Union. Mutual funds, annuities and other investments available through Financial Network Investment Corporation are not insured by the FDIC, NCUSIF or any federal government agency, are not deposits, or obligations of nor guaranteed by Hawthorne Credit Union, or any other affiliated entity. Investments are subject to investment risks including loss of principal invested.
Sub-prime mortgage worries trigger market correction
Market volatility has increased dramatically in recent weeks. The new high of 14,000 on the Dow Jones Industrial Average on July 19 didn’t last long as the index fell 5.5% by the end of the month. The decline for the broader S&P 500 index was even greater, 6.3% in that same span. The catalyst for the downdraft was the housing market, particularly questions about the impact of rising delinquencies and defaults among lower grade mortgage holders. While housing construction and sales have slowed gradually over the past year, housing’s effect on the overall economy and stock market has been small. Other business sectors have remained strong, particularly those taking advantage of the growing international markets. However, the risk of actual defaults by borrowers in sub-prime mortgages has triggered concerns of losses spreading to other parts of the higher-risk debt markets and severely hurting stocks as well. Other analysts believe investors were seeking a reason to take short-term stock profits after the recent new highs in the markets, and the mortgage market problems merely provided that spark.
While most business sectors experienced declines in the sell-off, most of the pain was focused on those companies that had benefited significantly and now could suffer direct losses from the extension of the sub-prime loan problems. Home builders, mortgage companies, banks, and brokerage/investment management companies led the decline. Mortgage companies and brokerage stocks were particularly vulnerable due to their more direct involvement in facilitating the development of the sub-prime lending trend. Most of the major banking institutions had long recognized the potential risk of these kinds of loans and avoided significant involvement with either generating or investing in them. Recent second quarter earnings announcements show that severe losses have been contained to relatively lesser quality firms.
Against the fairly isolated sub-prime mortgage problems, second quarter profit reports support the view of a relatively steady economy. Second quarter GDP was better than expected. Reports to date by companies of the S&P 500 show second quarter profits modestly ahead of expectations. Wage and job growth offer support to the continuation of economic growth continuing at least through the year. This in turn leads to greater confidence that mortgage delinquencies will not spread to prime mortgage holders. However, many market analysts believe that market psychology may stay disconnected from the economic data and more focused on headlines surrounding mortgage-related problems for a while longer. This could lead to continued uneasiness among investors and more market volatility in the short-term.
Prepared by: Martin Cosgrove, CFA, Director of Investment Research
Research Department/ING Advisors Network
The views are those of Martin Cosgrove, Research Department, ING Advisors Network, and should not be construed as investment advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. All economic and performance information is historical and not indicative of future results. Investors cannot invest directly in indices. Please consult your financial advisor for more information.
Additional risks are associated with international investing, such as currency fluctuations, political and economic stability, and differences in accounting standards.
Financial Network Investment Corporation is an ING company. Affiliates and subsidiaries and/or officers and employees of Financial Network or ING may from time to time acquire, hold or sell a position in the securities mentioned herein.
Securities are offered through Financial Network Investment Corporation, a registered broker/dealer and member of the SIPC. Financial Network Investment Corporation is not an affiliate of Hawthorne Credit Union. Mutual funds, annuities and other investments available through Financial Network Investment Corporation are not insured by the FDIC, NCUSIF or any federal government agency, are not deposits, or obligations of nor guaranteed by Hawthorne Credit Union, or any other affiliated entity. Investments are subject to investment risks including loss of principal invested
Stay the course!!
Mike Pozzi
Investment Adviser Representative
Securities are offered through Financial Network Investment Corporation, a registered broker/dealer and member of the SIPC. Financial Network Investment Corporation is not an affiliate of Hawthorne Credit Union. Mutual funds, annuities and other investments available through Financial Network Investment Corporation are not insured by the FDIC, NCUSIF or any federal government agency, are not deposits, or obligations of nor guaranteed by Hawthorne Credit Union, or any other affiliated entity. Investments are subject to investment risks including loss of principal invested.
Sub-prime mortgage worries trigger market correction
Market volatility has increased dramatically in recent weeks. The new high of 14,000 on the Dow Jones Industrial Average on July 19 didn’t last long as the index fell 5.5% by the end of the month. The decline for the broader S&P 500 index was even greater, 6.3% in that same span. The catalyst for the downdraft was the housing market, particularly questions about the impact of rising delinquencies and defaults among lower grade mortgage holders. While housing construction and sales have slowed gradually over the past year, housing’s effect on the overall economy and stock market has been small. Other business sectors have remained strong, particularly those taking advantage of the growing international markets. However, the risk of actual defaults by borrowers in sub-prime mortgages has triggered concerns of losses spreading to other parts of the higher-risk debt markets and severely hurting stocks as well. Other analysts believe investors were seeking a reason to take short-term stock profits after the recent new highs in the markets, and the mortgage market problems merely provided that spark.
While most business sectors experienced declines in the sell-off, most of the pain was focused on those companies that had benefited significantly and now could suffer direct losses from the extension of the sub-prime loan problems. Home builders, mortgage companies, banks, and brokerage/investment management companies led the decline. Mortgage companies and brokerage stocks were particularly vulnerable due to their more direct involvement in facilitating the development of the sub-prime lending trend. Most of the major banking institutions had long recognized the potential risk of these kinds of loans and avoided significant involvement with either generating or investing in them. Recent second quarter earnings announcements show that severe losses have been contained to relatively lesser quality firms.
Against the fairly isolated sub-prime mortgage problems, second quarter profit reports support the view of a relatively steady economy. Second quarter GDP was better than expected. Reports to date by companies of the S&P 500 show second quarter profits modestly ahead of expectations. Wage and job growth offer support to the continuation of economic growth continuing at least through the year. This in turn leads to greater confidence that mortgage delinquencies will not spread to prime mortgage holders. However, many market analysts believe that market psychology may stay disconnected from the economic data and more focused on headlines surrounding mortgage-related problems for a while longer. This could lead to continued uneasiness among investors and more market volatility in the short-term.
Prepared by: Martin Cosgrove, CFA, Director of Investment Research
Research Department/ING Advisors Network
The views are those of Martin Cosgrove, Research Department, ING Advisors Network, and should not be construed as investment advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. All economic and performance information is historical and not indicative of future results. Investors cannot invest directly in indices. Please consult your financial advisor for more information.
Additional risks are associated with international investing, such as currency fluctuations, political and economic stability, and differences in accounting standards.
Financial Network Investment Corporation is an ING company. Affiliates and subsidiaries and/or officers and employees of Financial Network or ING may from time to time acquire, hold or sell a position in the securities mentioned herein.
Securities are offered through Financial Network Investment Corporation, a registered broker/dealer and member of the SIPC. Financial Network Investment Corporation is not an affiliate of Hawthorne Credit Union. Mutual funds, annuities and other investments available through Financial Network Investment Corporation are not insured by the FDIC, NCUSIF or any federal government agency, are not deposits, or obligations of nor guaranteed by Hawthorne Credit Union, or any other affiliated entity. Investments are subject to investment risks including loss of principal invested
Monday, August 6, 2007
Save money on food, by eliminating waste.
Does anyone else waste a lot of money by throwing out food that has gone bad? I always go grocery shopping with the best of intensions. I stock up on fruits and vegetables that I intend to eat soon, but by the time I am ready to use them, or finish eating them, they have gone bad.
When I clean out the refrigerator, I through away more food than I would like to admit. I am always trying to save money on just about everything else, but when it comes to food, unfortunately a lot of our money ends up in the trash.
I am very excited to report that I may have found a solution to this problem that will end up saving my family a lot of money. Yesterday, I saw a TV commercial advertising a product called “Green Bags” by Debbie Meyers. The advertisement claims that these bags will prolong the life of fruits and vegetables up to ten times as long. The bags control humidity and moisture build up, which discourages mold, bacteria, fungus and decay. They also help reduce vitamin loss by up to 50%.
Last night I went to the web site, http://www.buygreenbags.com/ and bought 20 of these bags for $9.99, and the bags can be used 10 times each. I will let you know if they work.
When I clean out the refrigerator, I through away more food than I would like to admit. I am always trying to save money on just about everything else, but when it comes to food, unfortunately a lot of our money ends up in the trash.
I am very excited to report that I may have found a solution to this problem that will end up saving my family a lot of money. Yesterday, I saw a TV commercial advertising a product called “Green Bags” by Debbie Meyers. The advertisement claims that these bags will prolong the life of fruits and vegetables up to ten times as long. The bags control humidity and moisture build up, which discourages mold, bacteria, fungus and decay. They also help reduce vitamin loss by up to 50%.
Last night I went to the web site, http://www.buygreenbags.com/ and bought 20 of these bags for $9.99, and the bags can be used 10 times each. I will let you know if they work.
Friday, August 3, 2007
Teaching Your Kids Savings Tips Along the Way
Certainly, summer is the time for vacations, travel, family adventures and a savings tip or two for the kids along the way.
We just got back for a short trip to Naples, Florida a couple of weeks ago, (yes, if you are wondering, it was very hot) and just like after every other vacation, when we got home I wondered where did all of our money go. Between the airfare, the car and dinning out all time, we ended up spending more than I had planned on. The next time we go on vacation, I’ve promised myself that we will save in advance by opening a Vacation Savings Account at Hawthorne.
One of the vacations savings tips that I have passed on to Zach is to never buy anything in an airport. This conversation started, because on our way through the airport for our departure we walked by the airport book store and he saw the new and last Harry Potter book, Harry Potter and the Deathly Hallows.
He went on to tell me how much he wanted to read the book and that he just had to have it, (he is only six and is not capable of reading the 759 page book, but of course I did not want to tell him that). I explained that you should never buy anything in an airport, because it is always much more expensive. The book in the airport book store was $50.
Once we were sitting down waiting to board the plane, I took out my laptop and we looked on the Walmart web site to find that the book would only cost $17.86 if we bought it there. He could not believe the price difference. After seeing this he said that we would definitely need to wait until we got home (not that he had a choice, but it was nice that he could figure it out on his own).
Since we've been home, I let Zach buy the book at Walmart with some allowance the he has saved up. I also overheard him in his room talking with his friend Joe, a couple of days ago. He was telling him that he should never buy anything in airport because it cost much more than buying the same item in a store. He continued to tell Joe about the Harry Potter book at the airport book store.
It made me feel good to think that some of the life lessons that I am trying to teach him along the way, may actually stick with him. Only time will tell.
We just got back for a short trip to Naples, Florida a couple of weeks ago, (yes, if you are wondering, it was very hot) and just like after every other vacation, when we got home I wondered where did all of our money go. Between the airfare, the car and dinning out all time, we ended up spending more than I had planned on. The next time we go on vacation, I’ve promised myself that we will save in advance by opening a Vacation Savings Account at Hawthorne.
One of the vacations savings tips that I have passed on to Zach is to never buy anything in an airport. This conversation started, because on our way through the airport for our departure we walked by the airport book store and he saw the new and last Harry Potter book, Harry Potter and the Deathly Hallows.
He went on to tell me how much he wanted to read the book and that he just had to have it, (he is only six and is not capable of reading the 759 page book, but of course I did not want to tell him that). I explained that you should never buy anything in an airport, because it is always much more expensive. The book in the airport book store was $50.
Once we were sitting down waiting to board the plane, I took out my laptop and we looked on the Walmart web site to find that the book would only cost $17.86 if we bought it there. He could not believe the price difference. After seeing this he said that we would definitely need to wait until we got home (not that he had a choice, but it was nice that he could figure it out on his own).
Since we've been home, I let Zach buy the book at Walmart with some allowance the he has saved up. I also overheard him in his room talking with his friend Joe, a couple of days ago. He was telling him that he should never buy anything in airport because it cost much more than buying the same item in a store. He continued to tell Joe about the Harry Potter book at the airport book store.
It made me feel good to think that some of the life lessons that I am trying to teach him along the way, may actually stick with him. Only time will tell.
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