Show us the money!

NPR's Planet Money blog posted a blog that was understanding of the banks who have not yet disclosed how they used the TARP funds. He compared it to getting a$50 check for his anniversary from his parents. He deposits the money and doesn't really know what he spends it on. How can he make that comparison? We're talking about billions of taxpayer dollars to help bail out banks, not a sweet little gift from the folks who don't expect an explaination of how it's used. He's comparing apples and oranges. What do you think?

Transparency and accountability? Yes please!

I was happy to hear Treasury Secretary Geithner mention in his address today that transparency and accountability would be an important aspect of the $1 Trillion dollar comprehensive plan to restore financial stability to our economy. I love how this administration is embracing the internet as a tool for communication - and for transparency and accountability. Giethner mentioned a site, financialstability.gov which is not yet live, but I like the concept. Glad to see it!

Recession: Glass half empty, or half full?

Last night President Obama said this was "not your run-of-the-mill recession." What is a run-of-the-mill recession? Fortunately we haven't experienced that many in order to know what a "run-of-the-mill" recession is like. I must say it's frightening that this period of time has been compared to the Great Depression...or at least I keep hearing it's "the worst economic conditions since the Great Depression". That's true.

You might not know that credit unions, including Hawthorne Credit Union, were born during the Great Depression when average working class consumers had no access to loans or financial services of any kind. They pooled their money into a fund, depositing as little as 25 cents a paycheck, so that they could make small loans to help each other through the tough times. People helping people. Hawthorne Credit Union was started by a group of employees at Western Electric's Hawthorne Works Plant in Cicero in 1935. So it stands to reason that we are poised to help our members through this economic crisis too. We're still making loans, we're still strong. We will sit down with you and help you sort through your situation, consolidate debt to reduce your monthly expenses. Get you on a savings plan. Consult with our expert partners at the BALANCE Financial Fitness Program.

In addition to credit unions being born from economic hardship, check out this article from CNN about 6 companies born out of economic downturn.

It might be rough for a while, but we'll come out of it as a stronger nation. Who knows what innovation will be born? So while we ride out the tough times, let's remember the glass is also half full.

Shred Day success!

Shred Day was a huge success this weekend - more than 100 people showed up - some were already members and some were future members (we hope!). The truck was nearly full of personal documents, keeping identity theives from getting their hands on all that info. Plus, all the paper gets recycled. Hawthorne shredded enough paper to save 101 trees in 2008 - can you believe it? That's like a small forest! Check out our Shred Day schedule! Our next Shred Day is Sat. 3/7 at Bolingbrook Branch http://tinyurl.com/aqq84a

ATMs where ever you go

Hawthorne has 57,000 surcharge free ATMs nationwide. That number doesn't mean anything really until you compare it to Chase and Wamu, who together have only 10,000 ATMs nationwide. Can you believe it? That's because we're hooked into several surcharge free networks: Co-Op, Allpoint and STARsf. These networks are made up of credit unions, community banks and privately-owned ATMs. So Hawthorne members can get surcharge free cash just about anywhere - Target, Costco, 7-Elevens, gas stations, restaurants, pubs, community banks and credit union ATMs. How's that for convenience? Click here to locate one.

Did you know credit unions are cooperatives?

You might be asking, "What's a cooperative, anyway?" It's a not for profit organization that is owned by its members, or the people who use the organization. Credit unions are cooperatives, and there are many other kinds. Learn more with this podcast from Home and Family Finance Radio:

http://hffo.cuna.org/15562/audio/2504/html

4 Easy Ways To Save on Your Electricity Bill

Recently, I received an email containing tips on how my family and I can save money on our electric bill. With the worsening economy, we are all looking for ways to cut down on our monthly expenses. Whether it’s spending less on groceries, making fewer trips to the mall, or decreasing unnecessary spending, or even cutting down a little on your electric bill, every bit helps.

1. Turn Your Lights Off

You may already know that compact fluorescent lights (CFLs) use about 75% less energy than standard incandescent light bulbs and can last up to ten times longer. What you may not know: Turning off CFLs when exiting a room for less than 15 minutes costs more than leaving them on. So if you are likely to be back in that part of your house within 15 minutes, leave the lights on to save!


2. Use Task Lighting

Why pay to brightly light an entire room if you’re working in just a portion of it? Instead, try focusing light only where you need it: on your desk when paying bills in your home office, under the kitchen cabinets when chopping ingredients for dinner, or on a side table when reading in bed.


3. Install Ceiling Fans

Moving air tends to help you feel warmer in the winter and cooler in the summer, allowing for lower wintertime and higher summertime thermostat settings. The effect is equivalent to about 4 Degrees Fahrenheit, and using less energy than air conditioners and furnaces in doing so.


4. Perform Routine Maintenance on Your Electrical System

Specifically, your electrical panel. It is one of the most important parts of your home’s electrical system. It constantly distributes and receives electricity. The panel protects your home from power surges and other possible hazards. A loose connection in your panel will cause a greater power draw and more heat. This can lead to higher energy usage and potentially a fire. Regular maintenance is recommended once a year by a qualified electrician, to help reduce energy usage and breakdowns.

Does this Clutter Make My Butt Look Fat?

With the tough economic times that most of us are facing, I am always open to new ideas on how to better manage my life and my family to help us save money and make ends meet.

At a neighborhood get together last month I heard about a book that I thought sounded interesting called “Does this Clutter Make My Butt Look Fat?: by Peter Walsh. So, over the winter break I read the book.

It was not a diet book, but a book about life — about creating the healthy clutter free life you have always imagined for yourself.

Does This Clutter Make My Butt Look Fat? will help you examine how your emotions, your home, and how your spending and eating habits are working for — or against — the life you want for yourself.

Most of us try to slim down our bodies. But this book suggests the better strategy is to first slim down your home and your spending.

The book focuses on how clutter in the home stands in the way of a more healthful lifestyle. “All of us deal constantly with the urge to consume more,” he writes. “We spend too much, we buy too much, and we eat too much.

This book has given me the motivation to start thinking more about everything that I buy. Before buying anything I have starting thinking to myself, “do I really need this or will it just add to the clutter to my life”.

I have also starting trying to share this concept with my 8 year old son. I hate even thinking about all of the things that he has that never get used. For the last month, any time he mentions wanting something I talk to him about cleaning up his clutter, and what doing so can add to his life.

Turn off the lights when you leave the room!

I get tired of reminding my 13 year old to turn off the lights when she leaves the room. (I sound like my father, when did that happen??) Anyway, I read an article on The Daily Green website that suggests installing motion detectors in rooms. That way the lights turn on and off automatically as she comes and goes. Hmm...might be worth a try. (But it does dismiss her from establishing a habit of turning off the lights, it may or not be worthwhile.)

The article also talks about 'energy vampires' - the small appliances that we leave on all the time that suck electricity. The Daily Green suggests these vampires account for about 8% of our electric bill. I think I'll try unplugging the vampires and see if I can see a difference in my bill! I guess it all adds up. I've already bought two "Smart Strip" electric outlets that automatically turn off ancillary appliances when one turns off. For example, you turn off your TV and the DVD, DVR and other stuff turn off too, putting the vampires to sleep.

How much does your purse cost?

I recently had my purse stolen from a local restaurant. It happened in a flash. I turned my head for about 2 minutes and had stepped only about 3 feet away. When I turned back around, my purse was gone. A few people even saw the event - a man picked up my purse awkwardly with two hands and carried it off causing the witnesses to note how odd he looked. The restaurant's cameras caught him running away with my purse and climbing into a car. They could even see the license plate! But because no one could actually describe in detail what he looked like, the police could not track down the owner of vehicle.

By the time I replaced everything, it cost nearly $1000! Here's an estimated breakdown...notice I didn't even have designer purse or wallet!

Purse and wallet - $25
Cell phone - $300
Car keys - $279 (Keys had to be programmed at the dealer!!)
Digital camera - $200
New locks for my house - $50 (Dad did the labor for free. Thanks Dad!)
Cash - $70
Misc stuff (makeup, photos, etc.) - $50
Estimated total: $974

Fortuantely for me, my Onstar service paid for towing to the dealership so that the thief couldn't come back and steal my car. In addition to these costs, I spent hours that night cancelling all my credit cards and several weeks replacing credit cards, drivers license, etc. Reloading all my contacts into my new phone, waiting several hours at the dealership getting my keys replaced, hours driving to and waiting at the DMV for my new license.

I had no idea what an enormous hassle and expensive ordeal a seemingly simple loss would be! And I'll never let my purse out of my sight again.

Time for credit unions to shine!

This past week I keep getting asked the question, “what’s it like to market a financial institution during this crazy economic time?” and my answer is always the same – “I am marketing a credit union and we’re doing just fine! We don’t make risky investments and we don’t make bad loans so we’re going great!”

This is an important message that I am confident telling friends, family and members when I get asked, “how’s your credit union holding up in all this?” the answer is the same – we’re doing great.

We’ve also seen national media talking about credit unions – finally we’re getting the attention we deserve as the good guys!

At Hawthorne, we are the oasis in the eye of the hurricane.

Keep Identity Thieves out of your Bank Account

To provide extra protection for our members, Hawthorne has made stolen IDs and passwords all but unusable by adopting "multifactor authentication" technology. When members register their computer "machine ID" with the credit union thieves cannot use another computer to pretend to access the account. The member chooses a picture or question-and-answer set that would appear every time she logged in on the financial institution's site.

This makes online banking and bill paying slightly less convenient for our members since they can’t use just any old computer to log into their account. But, given the risks of using public or borrowed computers for online financial transactions, though, that's probably not something you should be doing anyway.

A friend of mine was recently the victim of identity theft so I am becoming familiar with the hassles this kind of theft can cause.

Like most targets, she isn't exactly sure how her account was compromised, but she suspects it happened the one time she used a debit card to buy something online. The thief used her account information to set up a PayPal account with himself as the payee.

The thief took a small amount to start -- just to "probe" the account and see if the theft would be noticed. My girlfriend spotted the unauthorized payment almost immediately, but still had a heck of a time trying to convince PayPal to shut down the bogus account.

Personally, I love the convenience of conducting my finances online and I know it decreases the likely hood that I will fall victim to identity theft. I also know that there are risk/reward tradeoffs to virtually every thing that we do, and that doing my banking online has increased my vulnerability in some ways but has decreased my risks in other ways.

There are plenty of ways for thieves to access your checking account offline. Here are just a few:

• Thieves can swipe your mail, pull out a check you've written, soak off the ink with nail-polish remover and write themselves a fat payday.


• They can steal your wallet and use your ATM, particularly if you wrote the PIN on your card (a big no-no -- but people still do it).


• They can set up phony ATM machines, or devices that fit over legitimate ATMs, then record the information from the magnetic stripe along with your PIN.

The rise in checking-account hijacks also corresponds with the rise in "phishing" -- e-mails that purport to be from a financial institution but that route the user to a bogus site that collects their account numbers and passwords.

A Gartner study in May found that 92% of the known phishing attacks had occurred in the previous 12 months, with 76% occurring since October 2003. About 5% of the victims Gartner surveyed admitted providing sensitive account information in response to a phishing e-mail, and Gartner believes the percentage of victims fooled by this scam was probably higher.

There's a lot we need to do to protect ourselves while we wait for better security solutions, such as:

• Don't expose yourself. Never use a public computer or wireless "hot spot" for financial transactions.


• Beef up your security. If you use Internet Explorer, Microsoft recommends cranking the security setting on your Internet browser up to "high" (you'll find it under the Tools menu; click on Internet Options and look for the security tab, then select Internet Zone). This may keep some Web sites from working properly, but you can make exceptions for trusted sites. (You can find more details here.)


• Use a credit card for online purchases. Technically, debit cards with the Visa or MasterCard logo offer you the same no-liability coverage for fraud that credit cards give you, but you have to wait a few days for the bank to restore the money to your account. Better to have a middleman like a credit card company between a thief and your checking account.


• Don't click. You probably know by now not to open spam e-mails or download attachments from unknown sources. But e-mail links in instant messages, Web message boards and Internet relay chats (IRC) also can be malicious. If a financial institution sends you an e-mail relating to an "urgent problem" or other matter pertaining to your account, use the phone number printed on your statement to respond.


• Block pop-ups. Besides being incredibly annoying, pop-ups can be used to install hackers' software on your computer. Many Internet service providers now have pop-up software built in, or you can get blocking software from sites such as Panicware.com.


• Monitor, monitor, monitor. You need to take a careful look at your bank and bill-pay transactions. Don't assume that odd $40 electronic transfer or check is a payment you just forgot about; it could be a scammer probing to see if the fraud will go unnoticed. With bill payment systems, review your payment history as well as your payee list to make sure there aren't any unauthorized transactions. The sooner you report the theft the better; after 60 days, the bank may be under no legal obligation to provide a refund.


• Stay up to date. Run Windows Update to keep current on the latest security patches. If you use Internet Explorer and have increased your security to "high," you'll need to follow the instructions on this link for the update to work properly.


• Inject some variety. Don't use the same user ID and passwords at different financial institutions. If you're asked to create a security question and answer, don't use one that's relatively easy to discover, such as your mother's maiden name.


• Inoculate yourself. Keep your virus software up-to-date and run frequent scans to check for problems.

You can also reduce your offline risk somewhat by:

• Using gel pens to write checks. These inks can't be easily dissolved.


• Get a locking mailbox. Make theft of your checks more difficult by locking up your mail and delivering any outgoing checks directly to the post office (In other words, don't let them sit in your mailbox).


• Don't write down your password. Especially don't scribble the PIN on the ATM or debit card itself, or anywhere else in your wallet.


• Use your credit card for "out of sight" transactions. That waiter who disappears with your debit card could swipe it through a "skimmer," a handheld device that records the information on the magnetic stripe. They can do that with a credit card, too, but again, fixing a fraud problem is easier with a credit card than with a debit card.

Declare your Independence from High Gas Prices

I love this stuff. This article from TheDailyGreen.com suggests ways to cut and maximize your use of gas so that your average cost per gallon drops to $1! Below is a summary of the ways to save, but read the entire article here.

How to Pay Less Than $1 For Gas
The average price of gasoline in the United States has topped $4 a gallon, and won't peak until it hits $4.15 in August, according to the latest government prediction. (The last prediction: Gas would peak at $3.73 in June, so take it with a grain of salt.)

We've seen 11 straight weeks of record price increase. Oil is threatening to rise to $150 a barrel, according to Goldman Sachs. That's 50% higher than the milestone of $100 a barrel that some analysts thought impossible just a few months ago.
Some areas of the country, like California, are already seeing gas prices rise toward $4.50 a gallon.

That has some speculating we're in the midst of a bubble bred by greedy speculators. Everyone else is just trying to save a few pennies on gas.

Here are five road-tested ways to save money on gas. Of course the more gas we save, the less pollution we create, and the less beholden we are to those who control the oil supply.

1) Take public transportation. Sure, it costs money to take the bus or subway. But consider this: The average U.S. commute is 16 miles, and at these prices the average U.S. passenger car will go just 11 miles on $2, a typical public transit fare.

2) Car pool. Share your trip to work with one other person and split the bill. That's like paying $2 for gas, instead of $4. Put a third person in the car, and the price per gallon drops to $1.33. With a full car of four people, the cost is just $1 a gallon.

3) Pay nothing: walk or bike. Every mile you pedal or stride saves you gas, saves you money and puts you in better shape.

4) Trade in for a fuel efficient vehicle. If you must drive, replace your gas guzzler with a fuel-efficient model.

5) Drive smarter. Start by checking your tire pressure and inflating your tires to the appropriate level. Visit your mechanic for a tune-up if you're due. Be sure to have your tires aligned, your air filter checked and your oil changed if needed.

Ways to save this summer

Well everybody is taking a hit by rising gas prices, so much so that we are starting to get tired of the complaining. However it is a reality that everyone lives with! Here are some ways to cut your energy bills this summer to compensate (maybe a little?) for rising gas prices....this is from FeedThePig.org, a consumer group that helps folks save money!


Summer Saving Tips

As the summer heats up, here are a few savings tips to help you enjoy some fun in the sun without worrying about your wallet!
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Summer Tip #1: To save on your air conditioning bill, turn off unnecessary lights during the day. Much of the energy used by incandescent bulbs is emitted as heat.

Summer Tip #2: To save 1-2 percent on your energy bill, unplug electronic devices and chargers when they aren't in use. Most new electronics use electricity even when switched off. Turn computers and printers off at the power strip.

Summer Tip #3: For a more energy efficient way to cook, use your microwave instead of your stove. Microwaves use two-thirds less energy than conventional stovetops.

Summer Tip #4: Consider replacing your incandescent bulbs with compact fluorescent light bulbs, or CFLs. They use about 75 percent less energy and give off 75 percent less heat but produce the same amount of light as incandescent bulbs.

Summer Tip #5: Make some shade! Awnings, blinds and drapes keep sunlight from entering your home. Install them on windows, skylights, doors, and other places where the sun comes through. During the day, closing the blinds and drapes to filter the sun will keep the room's temperature from rising.

Summer Tip #6: Planting trees in strategic areas can reduce the energy a house uses for cooling by up to 25 percent. Deciduous trees (that lose their leaves) help block the sun during the summer and still allow the winter sun to warm your home. Also, planting trees and shrubs around your air conditioning unit can increase its efficiency by up to 10 percent. Just make sure to place them at least 18 inches away so they don’t block the vents.

Summer Tip #7: “Summerize” your home by adding insulation and sealing air leaks around the house. Add insulation to the attic or add to already existing insulation. Weather-stripping and sealing drafty doors and windows will keep your house comfortable year-round and potentially save you hundreds of dollars.

Summer Tip #8: On a hot, sunny day, dark-colored roofs can reach temperatures of up to 150º to 190º F, heating the living spaces below. Consider adding a reflective coating to a dark roof, or choosing a lighter color when it’s time to replace the roof.

Summer Tip #9: Have an extra refrigerator in the garage that you’re not using? Unplug or recycle that spare refrigerator if you don't really need it, and it could save you up to 10 percent or more on your energy bill.
Summer Tip #10: Thinking about buying a new refrigerator? Refrigerators with a top or bottom freezer design can save you an additional 2-3 percent on your energy bill compared to a side-by-side design.

Tough Times? -- Hard to blame interest rates.

How many times have we yearned for “the good old days?” Raise your right hand if you think interest rates are contributing to the current volley of “tough times.”


The next time you are concerned about loan interest rates, consider the following:


The Prime Rate, the barometer that is often considered the cornerstone of rate pricing, is 5.00% today. How does today’s 5.00% Prime Rate compare with previous years?


Forty years ago today, the Prime Rate was at 6.50% and was on its way upward. By the way, the average price of a gallon of gasoline was $0.33 in 1968.


As a point of fact, the Prime Rate has been at or below 5.00% only a handful of times in our recent history. During the first six months of 1972 it hovered between 5.00% and 4.50%. The next time it was as low occurred during the period between November 2001 and December 2004. Since then, it spiraled up to 8.25% in June 2006 before beginning downward movements to today’s 5.00%.


So, in the past 40-years, the Prime Rate has been at or below 5.00% for only 40 months. Not even 3.5 years out of 40 years. Based solely upon interest rates, we are currently experiencing “The Good Old Days!”


These comparisons are not to infer that we, and our neighbors, don’t have problems. Certainly there are problems. Gasoline is at an all-time high. Many of our everyday products are made from, or with, petroleum. Thus, some prices are rising. Because of some foolish decisions made in the past, many mortgage lenders are afraid to finance houses (not so at Hawthorne!). House values are falling rapidly in many areas of the country (not so much in our immediate area).


However, none of the current problems will last forever. All present concerns are “fixable” or “livable.” The housing market will turn around and eventually be as robust as ever. Gasoline will either drop in price or we will find methods to become less reliant on it.


Tough times call for crafty economizing. Moving forward, the real action will be in how we let these difficult times impact our lives.


If you are not already a member, joining the credit union would be a step in the right direction. With lower fees and better rates you can increase your savings. Hawthorne offers a wide-range of loan opportunities for our members. From Cadillacs to Volvos, a dream home to a dream vacation, Hawthorne Credit Union has a loan to fit your needs - and always at an attractive loan rate.



Hawthorne also offers a wide variety of savings accounts that you can use to save for your future. Plus, your deposits are insured to $350,000 — the first $100,000 is federally insured by NCUA and the next $250,000 is privately insured by ESI. This is the highest combination of federal and private deposit insurance available to consumers.