Your wallet might be looking a little empty after the holiday season and I know that some of you are probably a little stressed about the balance in your bank account. Don’t be afraid to admit if you’re avoiding the mailbox because you know that pretty soon that big credit card statement will arrive.
My holiday shopping this year was a little less painful than usual because of my trusted Hawthorne Christmas Savings Account. I emptied it out already to help cover the bills that have already arrived, but on New Years Day I started getting an early start on my 2008 holiday shopping by depositing $50 into the account.
My Christmas club account is a savings account at Hawthorne that I can deposit money in to throughout year to effortlessly build up a nice gift fund. In November the money automatically gets deposited in to my savings account and I can go shopping without having to worry about paying for everything.
The holidays at my house are usually very stressful with too much going on and out-of-town house guests. However, each year I am trying to find new ways to alleviate some of the tension.
How, you might ask?
You can reward yourself financially by making some of your New Year's resolutions geared toward handling your finances or debt better. You can do it, trust me. This year one of my resolutions is to work on better organization and management of our finances.
Here's a list of seven strategies taken from the Consumer Credit Counseling Service that may help you. Good luck and Happy New Year!
1. Balance your checkbook each time you receive a paycheck so you don't spend more than the amount you make.
2. Have a filing cabinet or a secured box, handy? Well, you will need one to store financial statements. Make separate files for bank statements, tax documents, credit card bills, medical information, mortgage statements and other important records.
3. Create a monthly budget to determine your monthly income and recurring expenses. Focus on items such as rent or mortgage payments, utility bills, food, transportation costs, tuition savings, entertainment and personal grooming.
4. Ok, so once you've set up the budget; prioritize the expenses and spending based on your needs and wants. If you have any funds left after the monthly expenses are paid, split them between paying down your debt, for instance pay high-interest credit card bills and loans, and stash the money away in savings.
5. Create a varied savings plan. Make regular deposits in an interest-bearing account and don't pass up your employee-sponsored benefits like retirement and flexible spending accounts.
6. Stay aware of debt trouble. Problems can occur when you start falling behind on bills like mortgage, rent, or utilities or start using credit to buy items that you should buy with cash.
7. If situations like these occur, don't suffer in silence. Call your creditor and let them know you are having problems. It's possible that you just may be able to reach an agreement with your next payment or negotiate a lower interest rate.
You may also want to consider a Debt Management Program. If you have over $5,000 in debt then a debt management program may be for you. Hawthorne’s Balance Financial Fitness debt management program can help.
Wednesday, January 2, 2008
Thursday, December 27, 2007
Don’t Let Your Holiday Debt Last Longer than it needs to:
With holiday spending over, our debt recovery time may just be starting. Our credit card bills will start arriving in the mail soon. Recent stats by the National Retail Federation show that the 2007 holiday season got off to a record start with “Black Friday” sales by US shoppers rising 8.3% to a record $10.3 billion. Figures for the following “Cyber Monday” shopping holiday, the Monday following Thanksgiving, also showed a healthy increase with a new one-day record of over $700 million in total purchases.
It is too bad that most of the record consumer spending was paid through the use of credit cards. Most consumers, including me, don’t hesitate to place $300 in goods on a credit card but certainly would think twice if they were forced to purchase the same amount of goods solely with cash? Because of this it is no surprise that the average credit card debt per US household is expected to rise again in 2008 as it has every year since the early 1990’s.
What will this increased spending mean for the New Year? According to John Silva, chief economist for Wachovia, “(Consumers) will still be spending money (in 2008) but it will be on credit card interest and minimum payments, not on apparel or eating out.”
So what’s the average consumer with thousands of dollars in credit card debt to do in 2008? Consider these five suggestions to get your debt under control in the New Year:
1. Reduce your card interest rate - Hawthorne members can now qualify for great rates and Reward points when they transfer balances between February 1 and March 31, 2008.
Visa Platinum Reward Cardholders receive 2,500 bonus points on balance transfers .**
Visa Platinum Savers credit card - 3.99% APR* for 9 months on balance transfers.
Visa Classic credit card – 6.99% APR* for 9 months on balance transfers.
Click here for more information.
2. Stop Using the Cards - seems simple enough? Stop using the cards now and stop accumulating more debt on top of the debt you couldn’t afford in the first place.
3. Pay more then the minimum – For example if you have $5,000 in credit card debt with a 16% interest rate and a minimum monthly payment of $110. Did you know that just paying the minimum means it takes 25 years to pay off your debt and that $5000 debt will end up costing you $12,000 in total? This total includes an extra $7,000 that you will have to pay in interest. A good alternative would be to DOUBLE your minimum payment to $210 and pay off the card in 28 months, which will save you about $6,100 in interest.
4. Consider a Debt Management Program - If you have over $5,000 in debt then a debt management program may be for you. Hawthorne’s Balance Financial Fitness debt management program can help.
*APR=Annual Percentage Rate. **Minimum balance transfer of $1,000.00. Also offering 1 bonus point per dollar of balance transfer up to a maximum of $10,000.00.
Monday, December 17, 2007
Bright Idea, Big Dilemma
The day came earlier than I expected - my first energy efficient light bulb burned out. You know the kind everyone is encouraging you to swap out -the curly bulbs that use less energy and are supposed to burn longer (in fact, they use a third less energy and last ten times longer).
It's said that if every U.S. household replaced just one incandescent bulb with a compact fluorescent light bulb, the amount of energy saved could light 2.5 million homes for a year. That's fantastic, I'm all over that!
Unfortunately, those bulbs shouldn't be thrown away because they contain mercury, which is harmful to the environment. Yet the city recycling centers aren't set up to take them. For some reason one of mine burned out sooner than it was supposed to. Now I'm faced with the dilemma of what to do with it.
I found out that the Environmental Protection Agency schedules drop off dates throughout the year, but the next ones will be scheduled in 2008. I will start a little collection of bulbs until I hear of a collection date.
Also, behind the Naperville Fire Station Fire Station #4, 1971 Brookdale Road, there is a drop off facility that is open Saturdays and Sundays, from 9 a.m. to 2 p.m., excluding holidays. If you have questions about the City’s household hazardous waste collection program, please call the Department of Public Works at (630) 420-4190, Monday through Friday, between the hours of 7 a.m. and 4 p.m.
If you live in Carpentersville, Dundee, Elgin, Gilberts, Hampshire, and South Elgin residents
Residents with Carpentersville, Dundee, Elgin, Gilberts, Hampshire and South Elgin mailing addresses may call the HHW Hotline at 1-800-449-7587 to schedule a free pickup from your home. This service is operated by Curbside, Inc., and is sponsored by Kane County, the City of Elgin, and the Villages of Carpentersville and South Elgin.
These bulbs are so popular now, I'm sure the demand will increase next year for suitable drop off locations for disposing of the bulbs and it will get easier to dispose of them. Meanwhile, I know it's tempting to throw them away instead of bothering with proper disposal but hold onto your bulbs!
It's said that if every U.S. household replaced just one incandescent bulb with a compact fluorescent light bulb, the amount of energy saved could light 2.5 million homes for a year. That's fantastic, I'm all over that!
Unfortunately, those bulbs shouldn't be thrown away because they contain mercury, which is harmful to the environment. Yet the city recycling centers aren't set up to take them. For some reason one of mine burned out sooner than it was supposed to. Now I'm faced with the dilemma of what to do with it.
I found out that the Environmental Protection Agency schedules drop off dates throughout the year, but the next ones will be scheduled in 2008. I will start a little collection of bulbs until I hear of a collection date.
Also, behind the Naperville Fire Station Fire Station #4, 1971 Brookdale Road, there is a drop off facility that is open Saturdays and Sundays, from 9 a.m. to 2 p.m., excluding holidays. If you have questions about the City’s household hazardous waste collection program, please call the Department of Public Works at (630) 420-4190, Monday through Friday, between the hours of 7 a.m. and 4 p.m.
If you live in Carpentersville, Dundee, Elgin, Gilberts, Hampshire, and South Elgin residents
Residents with Carpentersville, Dundee, Elgin, Gilberts, Hampshire and South Elgin mailing addresses may call the HHW Hotline at 1-800-449-7587 to schedule a free pickup from your home. This service is operated by Curbside, Inc., and is sponsored by Kane County, the City of Elgin, and the Villages of Carpentersville and South Elgin.
These bulbs are so popular now, I'm sure the demand will increase next year for suitable drop off locations for disposing of the bulbs and it will get easier to dispose of them. Meanwhile, I know it's tempting to throw them away instead of bothering with proper disposal but hold onto your bulbs!
Tuesday, November 27, 2007
Save Gas, Cut Carbon Emissions, Burn Calories
Here's a way you can do all three - it's simple too. This tip is from The Daily Green. Check it out.
"When you are picking up food, doing your banking or even filling a prescription,
park your vehicle and walk inside instead of using the drive-through. It will
cut down on unnecessary fuel use as well as carbon emissions.
Every time you use a drive-through, you burn about 18 cents worth of gas idling your car. According to Quick Service Restaurant Magazine, the average drive-through wait time once the order is taken is three minutes. Add the minute or two that it takes to place the order, and that means one billion car-minutes spent idling
each year in front of Burger King restaurants alone! Estimates for total fuel
costs for idling in front of every drive-through in America are in the hundreds
of millions of dollars.
Parking your car and getting out also allows an opportunity to stretch your legs. Given the obesity epidemic in this country, any chance to get your body moving is also nothing to scoff at. Getting out also gives you the chance to throw away garbage, so you will be less tempted to toss litter out your window later on."
Wednesday, November 21, 2007
The best little deal in banking
Credit unions offer sweet deals on credit cards and auto loans, the best CD rates in the business and heaps of personalized services. And yes, you too can join one.
By Carolyn Bigda, Money Magazine writer-reporter
(Money Magazine) -- If you belonged to a credit union in the past, it was probably because a volunteer at work or church approached you to let you know about the good deal you could get on a car loan.
Credit unions still offer car loans, they're still tied to affiliation groups, and they still have friendly members looking to let you know about a good deal. But today these not-for-profits are in a pitched battle with big retail banks for all your banking business.
That's good news for you. You'll find credit unions with networks of free ATMs and terrific credit-card deals as well as rates on loans and savings products that the megabanks can't match. A recent study by Informa Research Services found that a higher percentage of credit union members liked their institutions than did bank customers.
And you don't need to belong to a church or work for a company that has a credit union to find one you can join. Not convinced? See if these five reasons change your mind:
Savings: How to earn real money
While large national banks were reluctant to pass on Federal Reserve rate hikes of previous years, credit unions tracked the Fed to offer higher-than-average yields, says Kyle Selberg, CEO of BankingMyWay.com, which follows bank and credit yields.
And when rates dropped in September, credit unions gave up little ground. These days you can still find phenomenal deals on CDs. For example, the Space Age Federal Credit Union in Denver offers a 16-month CD that pays 7 percent through the end of the year (on Jan. 1 the rate converts to 5 percent for the remainder of your CD's term).
And savings-account rates at some credit unions are competitive with those of major online banks. Recently, traditional savings accounts at the American Airlines Federal Credit Union, based in Texas, yielded 4.59 percent, slightly higher than rates at HSBC Direct.
Best deal on a six-month CD: Sabine Federal Credit Union (Orange County, Texas): 5.43 percent
National bank average: 3.45 percent
Credit cards: low rates, low fees, low penalties
Today the average bank credit card charges 13.69 percent, according to Bankrate.com. At credit unions it's 12.16 percent, reports the National Association of Federal Credit Unions.
A 2005 report from the Woodstock Institute, a nonprofit economic development group, found no credit unions practicing "universal default," a much criticized policy in which your lender raises your interest rate if you default on another lender's loan.
Some credit unions won't penalize you with higher rates even when you're late on their own card's bill. If they do, you'll rarely pay more than 18 percent, compared with upwards of 30 percent at major banks.
Auto loans: They're the best-known credit union deals for a reason
You're also more likely to qualify for those low rates, even if your credit history isn't polished or you're a recent graduate just building a credit profile. "We understand that real life happens, so we'll take a look at the whole picture," says Nancy Sieller, loan manager at Torrington Municipal and Teachers Federal Credit Union in Torrington, Conn. "We want to work with you."
Home loans: Financing you aren't likely to get from a bank
Maybe you or your kid wants to buy a home with little or no money down. Well, good luck getting that kind of loan from a bank in the wake of the subprime mortgage collapse.
Some of the largest credit unions, though, now offer what's called the Home Loan Payment Relief (HLPR) mortgage. It finances 97 percent or more of the cost of a home and is available to home buyers with limited income and, increasingly, to those looking to refinance out of an adjustable-rate mortgage.
If you're putting the standard 20 percent down, you'll get an interest rate that's as good as you'd find at a bank, and borrowers may also save on extraneous fees.
Perks: Take a class, get a deal on kids' savings
Many credit unions extend their services far beyond basic banking. You might find free personal-finance classes for your teen or complimentary retirement and credit counseling programs.
The McGraw-Hill Employees Federal Credit Union in New York City and New Jersey, for example, provides furlough loans to members who lose jobs and lets them defer payments for up to three months.
Some credit unions, including Achieve Financial Credit Union in Connecticut, will comb through a credit report with you and suggest how to improve your score.
And many offer kids' financial literacy tools and special savings rates: Youth CDs, for instance, often carry the same yields as their adult version but require lower minimum balances and give kids the opportunity to make additional deposits during the CD's term.
Your big questions answered
Question: Can I really join a credit union?
Answer: Thanks to 1998 legislation loosening membership restrictions, chances are better than ever that you can. Now you just have to figure out where you're eligible.
Step 1 Ask your mom and dad (and your grandparents...). If someone in your family is a member, you often qualify to join as well.
Step 2 Find out if your employer, trade group, alma mater or church is affiliated with a credit union. If you're a pharmacist in Pennsylvania, for example, you can join the Pennsylvania State Employees Credit Union.
Step 3 Still nothing? Time to check out the online databases: Go to the credit union locators at ncua.gov and creditunion.coop. Based on information such as your location, religion and ethnic background, you'll get a list of credit unions you might be able to join. Click on each credit union's Web site to learn the specifics.
Question: Should I ditch my bank?
Answer: It's worth considering if the credit union is a member of a large, free, nationwide ATM network such as the Co-op Network, which includes 25,000 ATMs (vs. 17,000 for Bank of America), and it has online banking too.
But many credit unions still can't match the big banks when it comes to the breadth of financial products or their services (like late branch hours). Combining your credit union membership with a checking account at a regular bank will probably offer you the best of both worlds.
By Carolyn Bigda, Money Magazine writer-reporter
(Money Magazine) -- If you belonged to a credit union in the past, it was probably because a volunteer at work or church approached you to let you know about the good deal you could get on a car loan.
Credit unions still offer car loans, they're still tied to affiliation groups, and they still have friendly members looking to let you know about a good deal. But today these not-for-profits are in a pitched battle with big retail banks for all your banking business.
That's good news for you. You'll find credit unions with networks of free ATMs and terrific credit-card deals as well as rates on loans and savings products that the megabanks can't match. A recent study by Informa Research Services found that a higher percentage of credit union members liked their institutions than did bank customers.
And you don't need to belong to a church or work for a company that has a credit union to find one you can join. Not convinced? See if these five reasons change your mind:
Savings: How to earn real money
While large national banks were reluctant to pass on Federal Reserve rate hikes of previous years, credit unions tracked the Fed to offer higher-than-average yields, says Kyle Selberg, CEO of BankingMyWay.com, which follows bank and credit yields.
And when rates dropped in September, credit unions gave up little ground. These days you can still find phenomenal deals on CDs. For example, the Space Age Federal Credit Union in Denver offers a 16-month CD that pays 7 percent through the end of the year (on Jan. 1 the rate converts to 5 percent for the remainder of your CD's term).
And savings-account rates at some credit unions are competitive with those of major online banks. Recently, traditional savings accounts at the American Airlines Federal Credit Union, based in Texas, yielded 4.59 percent, slightly higher than rates at HSBC Direct.
Best deal on a six-month CD: Sabine Federal Credit Union (Orange County, Texas): 5.43 percent
National bank average: 3.45 percent
Credit cards: low rates, low fees, low penalties
Today the average bank credit card charges 13.69 percent, according to Bankrate.com. At credit unions it's 12.16 percent, reports the National Association of Federal Credit Unions.
A 2005 report from the Woodstock Institute, a nonprofit economic development group, found no credit unions practicing "universal default," a much criticized policy in which your lender raises your interest rate if you default on another lender's loan.
Some credit unions won't penalize you with higher rates even when you're late on their own card's bill. If they do, you'll rarely pay more than 18 percent, compared with upwards of 30 percent at major banks.
Auto loans: They're the best-known credit union deals for a reason
You're also more likely to qualify for those low rates, even if your credit history isn't polished or you're a recent graduate just building a credit profile. "We understand that real life happens, so we'll take a look at the whole picture," says Nancy Sieller, loan manager at Torrington Municipal and Teachers Federal Credit Union in Torrington, Conn. "We want to work with you."
Home loans: Financing you aren't likely to get from a bank
Maybe you or your kid wants to buy a home with little or no money down. Well, good luck getting that kind of loan from a bank in the wake of the subprime mortgage collapse.
Some of the largest credit unions, though, now offer what's called the Home Loan Payment Relief (HLPR) mortgage. It finances 97 percent or more of the cost of a home and is available to home buyers with limited income and, increasingly, to those looking to refinance out of an adjustable-rate mortgage.
If you're putting the standard 20 percent down, you'll get an interest rate that's as good as you'd find at a bank, and borrowers may also save on extraneous fees.
Perks: Take a class, get a deal on kids' savings
Many credit unions extend their services far beyond basic banking. You might find free personal-finance classes for your teen or complimentary retirement and credit counseling programs.
The McGraw-Hill Employees Federal Credit Union in New York City and New Jersey, for example, provides furlough loans to members who lose jobs and lets them defer payments for up to three months.
Some credit unions, including Achieve Financial Credit Union in Connecticut, will comb through a credit report with you and suggest how to improve your score.
And many offer kids' financial literacy tools and special savings rates: Youth CDs, for instance, often carry the same yields as their adult version but require lower minimum balances and give kids the opportunity to make additional deposits during the CD's term.
Your big questions answered
Question: Can I really join a credit union?
Answer: Thanks to 1998 legislation loosening membership restrictions, chances are better than ever that you can. Now you just have to figure out where you're eligible.
Step 1 Ask your mom and dad (and your grandparents...). If someone in your family is a member, you often qualify to join as well.
Step 2 Find out if your employer, trade group, alma mater or church is affiliated with a credit union. If you're a pharmacist in Pennsylvania, for example, you can join the Pennsylvania State Employees Credit Union.
Step 3 Still nothing? Time to check out the online databases: Go to the credit union locators at ncua.gov and creditunion.coop. Based on information such as your location, religion and ethnic background, you'll get a list of credit unions you might be able to join. Click on each credit union's Web site to learn the specifics.
Question: Should I ditch my bank?
Answer: It's worth considering if the credit union is a member of a large, free, nationwide ATM network such as the Co-op Network, which includes 25,000 ATMs (vs. 17,000 for Bank of America), and it has online banking too.
But many credit unions still can't match the big banks when it comes to the breadth of financial products or their services (like late branch hours). Combining your credit union membership with a checking account at a regular bank will probably offer you the best of both worlds.
Holiday Online Shopping Safety Tips
Holiday Online Shopping Safety Tips
Online holiday shopping offers numerous conveniences over driving in heavy traffic, tromping though snow, lack of parking, and last-minute crowds. You can do all of your holiday shopping sitting in the comfort of your own home but, you need to be on your guard. Online shopping can have a few extra pitfalls, and there are always a few con artists out there waiting to separate you from your Christmas gift money.
Tis the season to shop online... and by following the tips below, your holiday will be a happy one.
- Evaluate the Seller - Purchase gifts through well-known online retailers that disclose full contact information. Just because an online store has a nifty website doesn't mean it has good business practices.
- Always ensure that online financial transactions are secure by checking the bottom right corner of the browser window. A little yellow lock will appear on secure sites.
- Check your bank statements regularly and investigate suspicious charges.
- Do not give out personal or financial information in response to unsolicited email. Do not click links in any email when conducting financial transactions.
- If you think you’ve been phished, immediately visit www.consumer.gov/idtheft.
- Record the Transaction - you have submitted your credit card and shipping information, you will likely land on a "Thank You" page. This page usually contains a transaction receipt and transaction number. Print this page for your records.In some cases, you will also receive a receipt by email. Again, printing the email and saving it is wise in case you have computer problems in the future.
- Always donate to charities directly, even after receiving emails requesting donations.
- When participating in online auctions such as ebay, check the seller’s references and feedback ratings. If purchasing a high-value item, consider using an online escrow service.
- Do not user your primary email address when shopping since you may inadvertently be signed up for excessive newsletters or marketing emails. Use a disposable account.
- Do not venture online without securing your PC. A good firewall is essential, and antivirus, anti-spyware and spam protection are also critical. Keep up with security update downloads.
Also, to save money, don’t forget to always check for a coupon or promotional code before checking out. Visiting CurrentCodes.com and getting a coupon only takes a few seconds and could save you anything from free shipping to 15% off or more.
Thursday, November 15, 2007
Cruisin' Your Way to Lower Gas Bills
Here's a tip from The Daily Green on how to reduce your gas bills by using cruise control - and saving money on speeding tickets by slowing down . . . sensible advice!
"Worried about sky high gas prices? Did you know that by keeping your car
at a steady speed, cruise control helps save gas. It can also help save you
money in tickets, since you can stay “under the radar,” by avoiding the creeping
increase in speed that tends to plague drivers on long, boring hauls.
Whenever you hit the accelerator, you burn a lot of gas. Braking wears out
the pads, and forces you to use more gas to speed back up. Your vehicle’s
systems perform most efficiently at a constant rate.
Although fuel economy can vary significantly with model and conditions, the optimal range of efficiency is generally between 25 and 55 mph, according to the EPA. On the open road, try not to exceed 55, and try to stay steady at the speed limit on city streets. You’ll get there. "
Tuesday, November 6, 2007
Take a Bite Out Of School Lunch Costs
Every day when I make my daughter's lunch I carry on a tradition that started with my mom. She’d make my sandwich for school every day. And every day she’d take a bite out of my sandwich. For many years I didn’t even question it. It seemed so normal.
Then the kids started asking. “Who took a bite of your sandwich?” they’d ask.
“My mom,” I’d say. “You mean your mom doesn’t take a bite out of your sandwich?” I’d ask.
“No!” they’d laugh. I always felt a little sorry for them, assuming their mothers must not love them the way mine loves me. So now I carry on the same tradition…
“Geez mom do you have to take a bite out of my sandwich again?”
“Yes,” I said, mouth full. She caught me in the act … again.
But if you’ve taken a good look at the school lunch menu, you might understand why I take the time each day to maker her lunch. I've seen corndogs, nachos and pretzels with cheese on the menu. Excuse me but isn't that carnival food? The average calories per meal is between 700-800. I'm not a nutritionist, but that seems like a lot to me.
A friend of mine who recently started making her kids lunches had similar sentiments after making herself familiar with the school lunch menu. She was horrified and vowed to start making lunches in brown bags the old fashioned way.
Still, I have to give credit to the school lunch provider Sodexho. Making lunch for kids raised on McDonalds can't be easy. These kids grew up in a time when, until recently, the best tasting food made the biggest profit and few companies (or consumers, for that matter!) really cared about how healthy the product was. Taste came first at the sacrifice of health. Things are getting better. Still, lunchmakers like Sodexho (and me) compete for my daughter’s choice of lunch. My goal: nutrition. Their goal is to make a profit for their company and for the school district. If the food doesn't appeal to the kids they lose.
And I must admit this year’s school lunch menus are looking healthier.
Still, I make her lunch as often as I can – I think that whatever I send her is a little healthier than what they’re offering.
Plus it saves me money! I figure the cost of my homemade lunch at around $1, as compared to around $3. And then I get to take a bite out of her sandwich.
Then the kids started asking. “Who took a bite of your sandwich?” they’d ask.
“My mom,” I’d say. “You mean your mom doesn’t take a bite out of your sandwich?” I’d ask.
“No!” they’d laugh. I always felt a little sorry for them, assuming their mothers must not love them the way mine loves me. So now I carry on the same tradition…
“Geez mom do you have to take a bite out of my sandwich again?”
“Yes,” I said, mouth full. She caught me in the act … again.
But if you’ve taken a good look at the school lunch menu, you might understand why I take the time each day to maker her lunch. I've seen corndogs, nachos and pretzels with cheese on the menu. Excuse me but isn't that carnival food? The average calories per meal is between 700-800. I'm not a nutritionist, but that seems like a lot to me.
A friend of mine who recently started making her kids lunches had similar sentiments after making herself familiar with the school lunch menu. She was horrified and vowed to start making lunches in brown bags the old fashioned way.
Still, I have to give credit to the school lunch provider Sodexho. Making lunch for kids raised on McDonalds can't be easy. These kids grew up in a time when, until recently, the best tasting food made the biggest profit and few companies (or consumers, for that matter!) really cared about how healthy the product was. Taste came first at the sacrifice of health. Things are getting better. Still, lunchmakers like Sodexho (and me) compete for my daughter’s choice of lunch. My goal: nutrition. Their goal is to make a profit for their company and for the school district. If the food doesn't appeal to the kids they lose.
And I must admit this year’s school lunch menus are looking healthier.
Still, I make her lunch as often as I can – I think that whatever I send her is a little healthier than what they’re offering.
Plus it saves me money! I figure the cost of my homemade lunch at around $1, as compared to around $3. And then I get to take a bite out of her sandwich.
Thursday, November 1, 2007
Beware - New Credit Card Phone Scam
We recieved an alert from our contacts at other credit unions that a new, very tricky scam is being conducted by phone. The bottom line to remember is that a ligitimate financial institution will never call to ask for your account information, because they already have it! Never give account information to anyone who contacts you.
This scam is pretty slick since they provide YOU with all theinformation, except the one piece they want. The scam works like this:
Person calling says, "This is (name), andI'm calling from the Security and Fraud Department at VISA. My badge numberis 12460. Your card has been flagged for an unusual purchase pattern, andI'm calling to verify. This would be on your VISA card which was issued by (name of bank). Did you purchase an Anti-Telemarketing Device for $497.99 from a marketing company based in Arizona ?"
When you say "No", the caller continues with, "Then we will be issuing a credit to your account. This is acompany we have been watching and the charges range from $297 to $497, justunder the $500 purchase pattern that flags most cards. Before your next statement, the credit will be sent to (gives you your address), is that correct?"You say "yes".
The caller continues - "I will be starting a Fraud investigation. If you have any questions, you should call the 1-800 number listed on the back of your card (1-800-VISA) and ask for Security. You will need to refer to this Control Number. The caller then givesyou a 6 digit number. "Do you need me to read it again?"Here's the IMPORTANT part on how the scam works. The caller then says, "I need to verify you are in possession of your card." He'll ask you to "turn your card over and look for some numbers." There are 7 numbers; thefirst 4 are part of your card number, the next 3 are the security numbers'that verify you are the possessor of the card. These are the numbers you sometimes use to make Internet purchases to prove you have the card.
The caller will ask you to read the 3 numbers to him. After you tell the caller the 3 numbers, he'll say, "That is correct, I just needed to verify that the card has not been lost or stolen, and that you still have you rcard. Do you have any other questions?" After you say, "No," the caller then thanks you and states, "Don't hesitate to call back if you do", and hangs up.
You actually say very little, and they never ask for or tell you theCard number. But after we were called on Wednesday, we called back within 20 minutes to ask a question. Are we glad we did! The REAL VISA Security Department told us it was a scam and in the last 15 minutes a new purchaseof $497.99 was charged to our card . Long story - short - we made a real fraud report and closed the VISAaccount. VISA is reissuing us a new number.
What the scammers want is the3-digit PIN number on the back of the card. Don't give it to them. Instead, tell them you'll call VISA or Master card directly for verification of their conversation. The real VISA told us that they will never ask for anything onthe card as they already know the information since they issued the card! Ifyou give the scammers your 3 Digit PIN Number, you think you're receiving acredit. However, by the time you get your statement you'll see charges forpurchases you didn't make, and by then it's almost too late and/or moredifficult to actually file a fraud report. What makes this more remarkable is that on Thursday, I got a callfrom a "Jason Richardson of Master Card" with a word-for-word repeat of theVISA scam. This time I didn't let him finish. I hung up! We filed a policereport, as instructed by VISA.
Sunday, October 28, 2007
Is the Latte Effect Really The Problem?
Shopping malls and retail stores are always packed, and there is a new restaurant on every corner. Everyone seems to be wearing designer shoes, jackets and jeans and sipping $4 lattes. Credit card commercials are constantly promoting splurging and, U.S. consumers have been more than happy comply.
So what's the problem? Why do so many middle class Americans with so much stuff say they feel so squeezed? If they are consumed by debt, isn’t it their own fault? I have always thought that many times we are responsible for the financial situations that we find ourselves in. After doing some reading on the topic I now wonder if our personal needs and consumption choices are really the problem.
Bankruptcy law expert and Harvard University Professor Elizabeth Warren spent a lot of time crunching the consumer spending numbers for her popular books, "The Fragile Middle Class” and “The Two-Income Trap.” In both, she makes this point: Despite all those $200 sneakers you hear about and the long lines at Starbucks, consumers are actually spending less of their income — much less — on discretionary items like clothing, entertainment and food than their parents did. In fact, after taking care of essentials like housing and health care, today’s middle class has about half as much spending money as their parents did in the early 1970s, Warren says.
The basics, our life essentials, now take up close to three-fourths of every family's spending power (it was about 50 percent in 1973), leaving much less left over at the end of the month.
Even though household incomes have risen about 75 percent since 1970, most of that they say, is the result of a second earner, generally a woman, joining the work force. In many cases that added income has been swallowed by rising fixed expenses, such as child care and housing costs, because many people try and buy more house than they can actually afford. The average family now pays at least twice as much for housing compared to what our parents paid in the 1970s.
Four in 10 Americans don't have even one month's worth of savings for use in case of an emergency, according to a survey by HSBC Bank published in 2006. And even with two incomes built into the family budget, the odds of a household getting hit by a layoff have doubled in the last generation. The combination of high housing debt, rising health care costs, lack of savings and greater exposure to unemployment has left many families in a dangerous financial position.
I see the biggest problem being that the largest portion of our budgets are spent on fixed costs like housing, has risen much faster than wages and inflation. That means mortgages, more than lattes, are the source of many of our financial problems.
I now think that the "latte factor" is only being used as a way to distract people from the real changes in the economy.
So what's the problem? Why do so many middle class Americans with so much stuff say they feel so squeezed? If they are consumed by debt, isn’t it their own fault? I have always thought that many times we are responsible for the financial situations that we find ourselves in. After doing some reading on the topic I now wonder if our personal needs and consumption choices are really the problem.
Bankruptcy law expert and Harvard University Professor Elizabeth Warren spent a lot of time crunching the consumer spending numbers for her popular books, "The Fragile Middle Class” and “The Two-Income Trap.” In both, she makes this point: Despite all those $200 sneakers you hear about and the long lines at Starbucks, consumers are actually spending less of their income — much less — on discretionary items like clothing, entertainment and food than their parents did. In fact, after taking care of essentials like housing and health care, today’s middle class has about half as much spending money as their parents did in the early 1970s, Warren says.
The basics, our life essentials, now take up close to three-fourths of every family's spending power (it was about 50 percent in 1973), leaving much less left over at the end of the month.
Even though household incomes have risen about 75 percent since 1970, most of that they say, is the result of a second earner, generally a woman, joining the work force. In many cases that added income has been swallowed by rising fixed expenses, such as child care and housing costs, because many people try and buy more house than they can actually afford. The average family now pays at least twice as much for housing compared to what our parents paid in the 1970s.
Four in 10 Americans don't have even one month's worth of savings for use in case of an emergency, according to a survey by HSBC Bank published in 2006. And even with two incomes built into the family budget, the odds of a household getting hit by a layoff have doubled in the last generation. The combination of high housing debt, rising health care costs, lack of savings and greater exposure to unemployment has left many families in a dangerous financial position.
I see the biggest problem being that the largest portion of our budgets are spent on fixed costs like housing, has risen much faster than wages and inflation. That means mortgages, more than lattes, are the source of many of our financial problems.
I now think that the "latte factor" is only being used as a way to distract people from the real changes in the economy.
Monday, October 15, 2007
Roth IRA - - more than just a great retirement investment.
The Roth IRA was first introduced in 1998. Since its introduction, it has become an investment program of choice for a number of our clients because of its versatility.
Like the regular IRA, annual retirement contributions for 2007 to the Roth IRA are $4,000 per person (or $5,000 if you are over age 50) and you have to April 15th to make contributions (Roth IRA contributions are subject to a phase out based on income. You need to be in a qualified income level to contribute).
And, although Roth IRA contributions are not tax-deductible, you may still benefit from the ability to withdraw earnings tax-free.
Here are a few examples of the Roth IRA’s flexibility.
Like the regular IRA, annual retirement contributions for 2007 to the Roth IRA are $4,000 per person (or $5,000 if you are over age 50) and you have to April 15th to make contributions (Roth IRA contributions are subject to a phase out based on income. You need to be in a qualified income level to contribute).
And, although Roth IRA contributions are not tax-deductible, you may still benefit from the ability to withdraw earnings tax-free.
Here are a few examples of the Roth IRA’s flexibility.
- Saving for college tuition? You can draw on a Roth account to help with your child’s educational expenses, and still retain control of the funds. In addition, if you hold onto your account for at least five years and you’re older than 59 1/2, no taxes would apply on earnings. In fact, contributions can be used at any time, free of taxes and penalties.
- Encourage your youngsters to save. If you have children who have part-time jobs, they too can open a Roth IRA.
- Shopping for your first home? If you’ve had your Roth IRA for at least five years, you can withdraw up to $10,000 ($20,000 for couples) in earnings “tax-free and penalty-free” if you use the money for a “first time home mortgage purchase.”
- Passing on your investments to heirs couldn’t be easier. You can bequeath the funds in Roth IRAs to your beneficiaries, who can withdraw money from the account tax-free over a number of years.
- Roths offer great estate planning advantages. Beneficiaries can withdraw money from a Roth account tax-free. And, unlike regular IRAs, there is no minimum distribution starting at age 70 ½, so seniors with earned income can keep investing in the Roth account at any age.
- If you’re a retiree, you don’t have to worry about being pushed into a higher tax bracket with your Roth distributions, since Roth IRA distributions are tax-free.
Keep in mind that a Roth IRA may not be appropriate for everyone. For example, the IRS requires the owner to hold his/her Roth for 5 years or until age 59 ½ (whichever is later) in order to avoid penalties and taxes on the earnings upon withdrawal. To determine whether a traditional IRA, Roth IRA or other retirement investment program is right for your specific financial goals, contact Mike Pozzi, our Hawthorne Credit Union Investment Adviser at (630) 983-2310.
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.
Friday, October 5, 2007
Slow Down to Save Gas
Here's something I didn't realize...from The Daily Green (thedailygreen.org). This site offers tips to going green and some great healthy recipes, too. Subscribe to their daily emaily newsletter! An article appearing in todays' Daily Green newsletter:
Drive 55 (MPH)
On the highway, try not to exceed a speed of 55 miles per hour. Not only are you less likely to get into an accident, but the faster you drive, the more fuel your vehicle consumes per mile. That means more money and more greenhouse gases.
At 65 mph you’re burning 10% more fuel than at 55, according to the American Council for an Energy-Efficient Economy. At 70 you lose 17% of your fuel economy, and at 75 it’s 25%. The numbers get worse from there.
Even though you may thrive off living in the fast lane, if the national speed limit were reset to 55, it would save 1 billion barrels of oil per year — more than the U.S. imports from the Persian Gulf.
The reason why is simple physics. As your engine heats up at higher speeds, it burns gas faster. Plus, all that increasing resistance from air and road drag you down.
Drive 55 (MPH)
On the highway, try not to exceed a speed of 55 miles per hour. Not only are you less likely to get into an accident, but the faster you drive, the more fuel your vehicle consumes per mile. That means more money and more greenhouse gases.
At 65 mph you’re burning 10% more fuel than at 55, according to the American Council for an Energy-Efficient Economy. At 70 you lose 17% of your fuel economy, and at 75 it’s 25%. The numbers get worse from there.
Even though you may thrive off living in the fast lane, if the national speed limit were reset to 55, it would save 1 billion barrels of oil per year — more than the U.S. imports from the Persian Gulf.
The reason why is simple physics. As your engine heats up at higher speeds, it burns gas faster. Plus, all that increasing resistance from air and road drag you down.
Thursday, September 27, 2007
Hawthorne is Safe from Sub-Prime Mortgage Risk
What's going on in the sub-prime mortgage market? I am sure you have all heard of The Sub-Prime Mortgage Meltdown. According to the New York Times many of the top lenders in the nation are reporting serious losses, filing for bankruptcy protection, or looking for another company to buy them.
Hawthorne Credit Union continues to be a steadfast, strong financial institution. Other financial institutions entered risky ventures by holding sub-prime mortgages on their books, but Hawthorne did not.
Hawthorne maintains high standards in its lending practices, responsible investments and always strives for stable capital. We do not hold sub-prime mortgages on our books, which protects us from risk.
Further, Hawthorne Credit Union is here to stay. Since its inception in 1935, Hawthorne has been serving the people of the Chicago suburbs with honest service at affordable prices. Because we’re a not-for-profit financial cooperative, we’re owned by our members and therefore can’t be bought or sold.
If you entered into a mortgage that is too much to handle, contact our specialists at Hawthorne. Jean Harlowe, our mortgage specialist, can help refinance your loan into one with more affordable payments. For those with more serious needs, Sharon McCroskey, our credit counseling specialist, can discuss options and help find a desirable solution. Contact us at 630-369-4070.
Hawthorne Credit Union continues to be a steadfast, strong financial institution. Other financial institutions entered risky ventures by holding sub-prime mortgages on their books, but Hawthorne did not.
Hawthorne maintains high standards in its lending practices, responsible investments and always strives for stable capital. We do not hold sub-prime mortgages on our books, which protects us from risk.
Further, Hawthorne Credit Union is here to stay. Since its inception in 1935, Hawthorne has been serving the people of the Chicago suburbs with honest service at affordable prices. Because we’re a not-for-profit financial cooperative, we’re owned by our members and therefore can’t be bought or sold.
If you entered into a mortgage that is too much to handle, contact our specialists at Hawthorne. Jean Harlowe, our mortgage specialist, can help refinance your loan into one with more affordable payments. For those with more serious needs, Sharon McCroskey, our credit counseling specialist, can discuss options and help find a desirable solution. Contact us at 630-369-4070.
Thursday, September 13, 2007
September is Life Insurance Awareness Month: It's Time to Stop Gambling with Our Families Financial Futures.
Do you ever wonder what would happen to your family, if something happened to you? The thought is so scary and hard to think about, that a lot of us have decided that the possibility of this is unlikely and it is easier not to deal with the issue at all. Unfortunately there are many times when this solution does not work.
If you have found yourself or a family member in this situation, you know all too well, how true this is. Without the financial means to continue through life without a loved one that you were financially dependent on, the ability to deal with such a significant loss becomes even more difficult.
Gambling has become a popular pastime in America. Consider the craze over the multi-state Mega Millions lottery. Every time the jackpot rises to eight or nine figures, millions of Americans run to their local convenience store for a chance to become the next mega millionaire. Their chance of winning? About 1 in 175 million. The good news: the consequences of losing aren’t usually very severe, since the average investment is only a few dollars.
Contrast that to the financial consequences of dying prematurely and not having adequate life insurance protection. The outcome can be dire. Bills pile up quickly. Mortgage or rent payments get missed. Families are forced to find cheaper housing. Education plans are put on hold. Dreams get dashed.
What’s most frustrating is that all of this financial suffering is avoidable with proper insurance planning. Then why do three in ten adult Americans have no life insurance at all, and most of those with coverage have far less than experts recommend? The answer is simple. We’re a nation of gamblers. But in this particular case, many Americans are taking a bad bet.
Ask a 35-year-old man what his chances of dying are in the next 15 years and he’ll probably say, “Pretty slim”. Actually, he’s right. About 95% of men that age will live beyond their 50th birthday. But of the nearly 2.1 million 35-year-old US men, consider how many won’t live that long. 21,126 won’t live to age 40, 52,817 won’t make it 45, and nearly 100,000 35-year-olds (or 1 in every 21) won’t live to see their 50th birthday.
Most Americans don’t fully appreciate the gamble they’re taking by not having adequate life insurance coverage. The chances of dying too young are much greater than most people realize and life insurance protects your loved ones in case the unexpected happens.
For more details on life insurance or to schedule a no-cost, no-obligation appointment with Financial Network Registered Representative, call 630-983-2310, fill out our request form, or email us today. And watch for upcoming announcements on our no-cost financial seminars.
If you have found yourself or a family member in this situation, you know all too well, how true this is. Without the financial means to continue through life without a loved one that you were financially dependent on, the ability to deal with such a significant loss becomes even more difficult.
Gambling has become a popular pastime in America. Consider the craze over the multi-state Mega Millions lottery. Every time the jackpot rises to eight or nine figures, millions of Americans run to their local convenience store for a chance to become the next mega millionaire. Their chance of winning? About 1 in 175 million. The good news: the consequences of losing aren’t usually very severe, since the average investment is only a few dollars.
Contrast that to the financial consequences of dying prematurely and not having adequate life insurance protection. The outcome can be dire. Bills pile up quickly. Mortgage or rent payments get missed. Families are forced to find cheaper housing. Education plans are put on hold. Dreams get dashed.
What’s most frustrating is that all of this financial suffering is avoidable with proper insurance planning. Then why do three in ten adult Americans have no life insurance at all, and most of those with coverage have far less than experts recommend? The answer is simple. We’re a nation of gamblers. But in this particular case, many Americans are taking a bad bet.
Ask a 35-year-old man what his chances of dying are in the next 15 years and he’ll probably say, “Pretty slim”. Actually, he’s right. About 95% of men that age will live beyond their 50th birthday. But of the nearly 2.1 million 35-year-old US men, consider how many won’t live that long. 21,126 won’t live to age 40, 52,817 won’t make it 45, and nearly 100,000 35-year-olds (or 1 in every 21) won’t live to see their 50th birthday.
Most Americans don’t fully appreciate the gamble they’re taking by not having adequate life insurance coverage. The chances of dying too young are much greater than most people realize and life insurance protects your loved ones in case the unexpected happens.
For more details on life insurance or to schedule a no-cost, no-obligation appointment with Financial Network Registered Representative, call 630-983-2310, fill out our request form, or email us today. And watch for upcoming announcements on our no-cost financial seminars.
Friday, September 7, 2007
We Can Help You Save for the Holidays!
Believe it or not, it’s getting to be that time of year again! Time to start thinking about the upcoming holiday season! I know, you might think I am crazy, but before you know it you’ll be planning Thanksgiving, buying gifts and possibly traveling. Can you see the dollar signs yet?
As far as I am concerned it’s never too early to start saving money and shopping for the holiday season. For some of us, including me, this is easier said than done. In January it does not seem important to start saving for Christmas, since most of us are just starting to try and recover from the financial impact that the previous holiday season has had.
A couple of years ago I decided that I wanted to do something to prepare for the holiday season and make the holidays more enjoyable and less stressful on me and my family. I decided to open a Christmas Club Account at Hawthorne.
This is a savings account that I can deposit money into throughout year to effortlessly build up a nice gift fund. In November the money automatically gets deposited in to my savings account and I can go shopping without having to worry about paying for everything.
Last year I got a late start and only had $300 in the account when the money got transferred, but this year I have been doing better. I transfer $25 - $50 each pay period into my Christmas Club Account. This year when the deposit is made I should have about $800. This will help take some of the pain out of my excessive shopping.
For us, there is not a better way to save money for the holidays than this kind of savings account. So easy & painless!
Click here for more information on the Hawthorne Christmas Club Account.
As far as I am concerned it’s never too early to start saving money and shopping for the holiday season. For some of us, including me, this is easier said than done. In January it does not seem important to start saving for Christmas, since most of us are just starting to try and recover from the financial impact that the previous holiday season has had.
A couple of years ago I decided that I wanted to do something to prepare for the holiday season and make the holidays more enjoyable and less stressful on me and my family. I decided to open a Christmas Club Account at Hawthorne.
This is a savings account that I can deposit money into throughout year to effortlessly build up a nice gift fund. In November the money automatically gets deposited in to my savings account and I can go shopping without having to worry about paying for everything.
Last year I got a late start and only had $300 in the account when the money got transferred, but this year I have been doing better. I transfer $25 - $50 each pay period into my Christmas Club Account. This year when the deposit is made I should have about $800. This will help take some of the pain out of my excessive shopping.
For us, there is not a better way to save money for the holidays than this kind of savings account. So easy & painless!
Click here for more information on the Hawthorne Christmas Club Account.
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