First Abilene FCU

Spending Tips: Month by Month

2012-02-02T13:04:00.000-08:00

January:

It’s a perennial New Year’s resolution to pay down debt. So if you’re sitting on extra savings or money from the holidays, consider using it to knock off any accumulating credit card debt. Start with the credit card that has the highest interest rate.

February:
Flowers can be a big part of your Valentine’s Day spending, especially if you procrastinate. If you plan on sending flower to your significant other this year, start browsing websites early to avoid excessive delivery charges on last-minute orders.

March:
If you’re planning a spring break trip always remember the best time to book a flight is four to six weeks prior to your vacation. Prices for any given flight are generally highest in last few weeks before your travel date. Another vacationing tip to remember is most airlines offer sales on Tuesday’s, Wednesday’s and Thursday’s.

April:
In honor of Earth Day use rags made from old towels, sheets or clothing when tending to common cleaning needs around the house. Also try using newspaper to help clean windows and small messes. The common family uses 2 rolls of paper towels a week costing around $120 a year.

May:
Before the weather gets too hot, have your air conditioner serviced and ready for the upcoming summer season. A clean air filter keeps your house cool and can also help your unit not run as frequently and work more efficiently, therefore saving you on your electric bill. It is suggested to change them out every 20 to 30 days in the hotter months of the year.

June:
It’s National Homeowners Month and interest rates on mortgages should still be near record lows. Prospective homeowners should start looking into the pros of buying versus renting. Homeowners should check whether it’s worth refinancing. The general rule of thumb is that the new rate should be as least 1.5 percent below your current rate.

July:
If you’re inspired by the Olympics set to take place in London, check with your local health clubs to see if they are running any discounts or special offers. This not only benefits your wallet but also your health.

August:
Several states offer tax free holidays for back-to-school items on a designated weekend. Keep up with list of needs for the upcoming school year and you could save big over this three day event. For a list of this years dates and qualifying purchases for Texas click here.

September:
Evaluate how much you spend on medication. Over-the-counter drugs are as much as 50 percent cheaper at Target and Wal-Mart than at local supermarkets, according to Consumer Reports. Also look into generic prescription offers from big box retailers, costing as little as $4 for a 30-day supply.

October:
Avoid those high price costume stores. Try to use items from around the house or borrow from friends. Local thrift stores are also a great place to find gently used costumes and props for a bargain.

November:
As our grandmothers, mothers and aunts start the hustle and bustle in the kitchen for the Thanksgiving holiday; think about buying fresh and local produce. The Farmers Market is a great place to find home grown fruits and vegetables at a great price.

December:
You don’t have to brave the crowds even if you haven’t gotten around to your holiday shopping. Sign up for to participate with retailers email list to stay on top of special sales. Hundreds of retailers also provide free shipping starting at the beginning of this busy month.

What are your 2012 Financial Goals?

2012-01-06T11:38:00.000-08:00

It is a new year, and with that comes new goals and resolutions we all set for ourselves. Setting resolutions at the start of a new year can be effective if you create goals that are realistic and attainable. If you read any good self help book or article on goal setting the number one step is to always write it down.

When creating a good plan you want to define clear steps that can be put into action. Setting a goal without formulating a plan is merely wishful thinking. So we have come up with a form that can help you begin laying out your short, medium and long term financial goals in 2012. Click here for a printable copy.

Go ahead "Write it Down" and let us help you get started on those 2012 resolutions!

Tis the Season for Giving: How Giving Saves You on Your Tax Return

2011-12-28T07:17:00.000-08:00

At this time of year, charitable giving comes natural to us all. Holidays make everyone more generous, and it is no surprise that charities receive the majority of their yearly donations the last few months of the year. There are many advantages to giving to charity. It makes your heart feel good, but it also can provide you with a tax deduction. If you make donations to qualified charitable organizations during the tax year, you may deduct the value of those gifts on your federal tax return.

With so many organizations out there, it is important that your hard earned dollars are donated well and to a charity that is strong financially. You want your gift to continue to make a difference, rather than given to a charity that may or may not be here next year. Many donors do not think about these things before giving. A recent survey done by Hope Consulting found that, only about a third of donors do any research when making a charitable gift. They’re much more likely to spend time evaluating choices about jobs, business investments or vacation plans with their family.

There are no limits on charitable contributions for most taxpayers. Most taxpayers will be able to deduct cash contributions in full up to 50 percent of their adjusted gross income. For cash donations, make sure you keep all of your receipts or bank statements with proof of amount and date gift was given. For non-cash donations, make sure every time you drop off outdated clothing, household furnishings or non-perishable foods at local charities or food banks you are given a receipt. These small donation trips can add up big time come tax season. These items must be in good condition or better, according to the IRS to receive credit. Charitable gifts must be completed by Dec. 31 in order to receive these tax deductions.

Be sure to consult with your own tax advisor about your specific tax situation or refer to http://www.irs.gov/taxtopics/tc506.html for more information. If you give with your head and your heart, your giving will warm you and others for a long time to come.

Saving Both Time & Money This Holiday Season

2011-12-15T11:42:00.000-08:00

With the hustle and bustle of the holiday season we sometimes forget the most important reasons for the season. Use these helpful tips to help consolidate both your time and money and get back to the important things in life.

Shop Online - Web vendors are open around the clock, 365 days a year. If you are the kind of shopper that knows exactly what you want, this is a great way to wrap up your shopping in a timely manner. Instead of spending the gas to drive across town to the mall or fighting the crowds and waiting in long lines, take 10 to 20 minutes out of your day to sit at your computer and make your purchases.

Free Shipping Day, December 16, 2011 - Started a little over four years ago, this annual event continues to grow. With over 2300 merchants involved this year, this is a great way to save on paying the higher rates to guaranteed delivery by Christmas. Most merchants participating have no minimal order and guarantee delivery by Dec. 24. Check out http://www.freeshippingday.com/ for entire list of participating merchants.

Barcode Scanning Apps for Smart Phone- Free Apps like Red Laser, Bar Code Scanner and ShopSavvy can help you compare prices by a simple scan of the UPC code. These apps make shopping a whole lot more fun. You can compare prices with local and online merchants to help you find the best deal. Most apps get as detailed as showing maps with store information and navigational tools. Don't let your successful day of shopping get ruined by finding lower prices when you get home, scan and research as you shop.

Coupon Websites - Websites such as: Groupon, Living Social, Coupon Sherpa and Yowza are not only a great way to find deals on your favorite things but also are some of the fastest growing companies in the world. These websites feature the best things to do, see, eat and buy. People love deals but hate to shop around for them, and these websites bring deals directly to you. Groupon and Living Social have daily deals on discounted gift certificates usable at local or national companies. On average they can save you between 50-60 percent. These are great tools to help you prepare for Christmas 2012! Forget getting your scissors and going through the Sunday paper, Coupon Sherpa and Yowza feature an assortment of online coupons, as well as printable, grocery and even mobile coupons. You can search by your favorite retailer's name, specific categories or by your geographical location. The sites listed above also have free mobile apps.

Group Gift Giving - Have that one gift for Mom that is just a little too much for you alone to purchase but don't want to deal with the hassle of getting the other money from your siblings? Use websites like Shareagift.com and ChipIn.com to do all the work for you. Simply set up your account with information about the gift you are wanting to purchase and amount you would like collected from each giver. An email will be sent with payable options and once funds are collected a deposit can be made into either your PayPal or bank accounts. It is that easy!

With the help from these great resources we hope your holiday buying will be easy and stress free.

Get Kids Started Right

2011-09-14T12:33:00.000-07:00

We often hear that our children are our greatest asset, the door to the future. How can we help them build confidence in their financial future?

One good answer is a credit union share savings account. By encouraging regular savings at First Abilene FCU, you prepare your kids to meet the demands of an increasingly complex financial world. A regular savings program helps both teenagers and younger children understand the basics of personal finance and the importance of building sound money management habits. It demonstrates the power of savings to help youngsters reach their goals. It prepares them for the day when they'll manage their own money.

Even very young children can grasp the fundamentals of saving, and become excited about having their very own savings program. As they grow and acquire allowances, after-school jobs, and other income sources, children can see those savings add up--and their pride and independence grow, too.

Perhaps the most important reason to start saving early and regularly is that saving helps young people develop the skills they'll need to be intelligent credit consumers. A record of regular savings tells the credit union this young person can handle the responsibility of repaying that first loan for a car, college, or educational travel.

Having demonstrated the ability to stick to a planned program, loan officers are more likely to approve the loan application. In this situation, the share savings account does double duty, because the young borrower--lacking any credit history--can use it as security for the loan.

So don't wait. Help your children open share savings accounts and encourage them to add to them each week or month.

Remember, it's not the amount of the deposit that counts: It's establishing sound, lifelong financial habits that will make more complex financial transactions later on easier, and more comfortable.

Back to School: Plan Your Budget

2011-08-01T07:43:00.000-07:00

Back to school means expenses! Clothes, shoes, and school supplies can drain a budget quickly. According to The National Retail Federation, the average family with school-aged children spends $606 on back-to-school items--clothes, shoes, supplies, and electronics--each year. It’s no wonder setting a budget is essential for all parents with school-bound youngsters.

To avoid falling into debt at back-to-school time, plan ahead for how much you want to spend. You also may want to budget for the changing technology of school supplies. More classrooms are using computers and computer-related study materials. And with many electronics now somewhat affordable to most families, classrooms may be requiring or recommending tech-smart supplies and materials.

Also, don’t forget about doctor checkups, school fees, and athletics or other extracurricular fees, which often are overlooked when setting a back-to-school budget.

Cleaning house before school starts back?

2011-07-25T11:24:00.000-07:00

Here's some great advice on how long to keep important documents.

Double click on image for larger view.

Need Extra Cash?

2011-06-01T10:50:00.000-07:00

Refinance your auto with us and receive $100 CASH and a lower interest rate! Contact a loan officer today!

Stay Home, Have a Blast

2011-05-16T08:00:00.000-07:00

Gas prices and other budget busters have many families plotting new ways to get away from it all--by staying at home for a "staycation." You can find lots of local resources, many free or at low cost, to make this kind of event memorable.

* Visit your library. You can get free or very cheap DVD rentals. Some libraries have museum passes that give you no-cost admission to many area museums and attractions.

* Go straight to the source--almost all museums have free days or partial days. Find out when they are and arrange your visit around those days. Check out the zoo and children's museum for more information on what days you can go for the least amount of money.

* With several local colleges nearby, find out about free performances by music department faculty or students.

* Treat your hometown like a vacation destination; check its Web site and the local visitors' center to find neighborhood festivals and art fairs. Check out local factories and ask if they offer tours; a plant tour can be fascinating.

* Ask yourself, what would I show a visiting friend? You'll discover things you never knew about your community when you approach it this way.

* Make it a game to see how much fun you can have without spending a nickel. Have your kids compete to come up with ideas.

Your staycation may turn out to be so much fun that you'll repeat it even when finances take an upturn.

What can you do with a tax refund?

2011-04-26T08:00:00.000-07:00

If you’re lucky enough to be getting a tax refund this year, careful planning could help you do a lot.

Pare debt
Make a credit card payment, more than the usual monthly payment.
Pay off part of a student loan.
Pay bills
Pay part of your property tax bill.
Ante up for school supplies and wardrobes.
Boost savings
Contribute now to your IRA (if you have earned income); don’t wait until the tax-filing deadline.
Add it to your sunny day fund for future recreation.
Have fun
Enjoy a long weekend at a restful site.
Enroll in a class to learn a skill you’ve been curious about.
Do good
Improve your home with fresh paint in a neglected room.
Donate to a good cause; get a receipt so you can take the charitable deduction if you itemize deductions on your tax return.

Save the Date for Annual Meeting

2011-02-16T12:24:00.000-08:00

Cut Holiday Expenses, No Scrooge Required

2010-12-20T12:38:00.000-08:00

There are plenty of ways to have fun, create lasting memories, and avoid the "Bah, humbug!" approach to the coming holiday season, despite the economic downturn and strain on family budgets.

Consider making a few changes this year that are kinder to your budget and that free up valuable time for family and fun:

* Create coupons. If you ask Grandma whether she'd like another expensive sweater or a coupon from a grandchild to make cookies together, guess which one she'd likely choose! Handmade coupons for adult children or grandchildren to give elderly relatives are welcome treats. Examples: running errands, spending an afternoon in the park, cooking a meal together, shoveling the sidewalk, raking leaves, washing the car, or planting flowers.

* Give homemade items. The time you spend making the item shows how much you really care about the receiver. If Grandpa has an old, unused pitchfork in the barn, use a staple gun to attach greenery, use hot-glue to attach pine cones and decorations, then wrap a string of holiday lights around it. He'll make sure that decoration gets used every year! If you know how to knit, make some handmade potholders for the special cooks in your family and in your neighborhood. If your forte is baking, give holiday tins of homemade cookies to friends, the letter carrier, your hairdresser, and newspaper deliverer.

* Use natural decorations. Gather leaves, pine cones, low-hanging branches from pine trees, or other "gifts" from nature and use them in centerpieces and mantel decorations. Here's a tip for pine cones: Place them in a single layer on a cookie sheet and bake them for 15 to 20 minutes at 200 degrees to rid them of bugs or spiders.

* Wrap it creatively. Use the Sunday comics as a free substitute for expensive wrapping paper. Purchase a roll of inexpensive meatpacking paper from the local butcher and have young children draw and color on the paper, which can be cut to fit any size package. Or, make your own gift wrap--there are countless resources and ideas on the Internet to get you started.

* Make it memorable. Rather than trying to make--and pay for--the entire meal and feed the whole family, organize a potluck that allows everyone to contribute and show off their culinary talents, and share recipes. Ask guests to string popcorn and cranberry chains as decoration for the holiday tree. Bring out photos of past holiday gatherings--that's sure to generate a lot of stories and laughter.

Finally, ask everyone to share their favorite holiday memories. Chances are, the majority of responses will be ones that don't involve spending any money at all. And that's truly what the holidays are meant to be--engaging in special traditions and creating lasting memories. No Scrooge required.

Deck the Halls without much money

2010-09-20T11:50:00.000-07:00

Let's face it, Christmas is right around the corner. Here are some great money management tips for the holidays.

Some people may feel guilty about not spending as much time with their loved ones or friends and will compensate with a special gift. Others may feel they need to ‘keep up with the Joneses' to match what friends, families, neighbors, and even co-workers are doing. And some simply get swept away in the glitter of the season--overspending before they realize what they're doing. For all of these reasons, setting a budget and making a list--and matching the two--can be really effective at reining in the ‘over' part of holiday overspending.

Smart spending

Changing the gift-giving dynamic within your own family is one route to holiday savings, but what about the other people on your list? Brad Stroh, founder and co-CEO of Freedom Financial Network, LLC, San Mateo, Calif., and bills.com recommends:

* Crunch the numbers. Create a holiday budget listing all expenses, including small gifts and "extras," such as cards, wrapping paper, decorations, and holiday clothing purchases.

* Avoid money matching. Most people feel the stress of the dollar-for-dollar matching competition, so talk with the people on your shopping list about setting limits. Fill in gaps with homemade presents or offer help to the recipient with chores or services.

* Start early. Avoid the last-minute rush so that you'll have more time to comparison shop. If you're in a rush to get out of a crowded mall or store, you're more likely to spend impulsively as a way of escape.

* Get creative. Set up a gift exchange among friends and family. For children with big-ticket items, consider pooling resources with other family members rather than splurging yourself into debt.

* Be a quitter. When you hit your budget limit, stop! Leave credit cards at home and put each person's budget in an envelope, in cash. When it's gone, it's gone--and you're done.

* Spend within your means. If you run up a big bill to celebrate the holidays and then pay it off at a leisurely pace, next year you may experience financial heartburn--the sour sensation that your holiday overindulgence is taking way too long to leave your budgetary system.

Holiday traditions beyond gifts

The special feeling about the holidays doesn't always come wrapped in a box and tied with a bow. New York executive coach Alisa Cohn works to help clients live, work, and spend/save in alignment with their values. Here are a couple of ideas:

* Mark the holiday through traditions rather than gifts. Pool efforts with other family members or friends to help out another family in need. Contact churches and other organizations in your community and ask for recommendations. You can unite anonymously to buy food, gifts, and holiday goodies for the family in need.

* Make the holidays special. Talk with your friends and family about what they like and dislike about the holidays. From those discussions, build a plan that decreases the attention on gift giving.

And to avoid going in the red next year, contact us for help in setting up a holiday account to budget for holiday shopping.

Steps to Financial Stability in 2010: Understanding your FICO scores

2010-03-08T11:33:00.000-08:00

Before the credit crisis and subprime meltdown hit, you probably could get the best interest rates on a mortgage or loan with a credit score of 720 or more. But times have changed. The "new reality" of today's economy says a 760 credit score is the new 720.

Your credit score is one of the most important numbers in your financial life. A credit score is a three-digit number that shows credit card companies, auto lenders, mortgage lenders, and even some landlords and prospective employers a picture of your creditworthiness. The higher the credit score the better.

Now there's a new "high," and for some consumers, it may be tough to make the grade.

A FICO credit score--used by many lenders--ranges from 300 to 850. If you have a favorable debt-to-income ratio and a score between 650 and 850, it's likely you'll qualify for a home loan with no problems. But the best rates are now reserved for those near the top tier of that range.

To improve your credit score, use common sense and start with three simple changes:

* Pay on time. About one-third of your score is based on whether you make on-time payments to creditors. Late payments will come back to haunt you and can cost you tens of thousands of dollars in higher interest payments over the life of a mortgage. Regardless of the amount, one late payment will take 24 months to restore your credit.

* Pay down balances. Know your total line of credit, which is the top limit or ceiling amount you can charge without paying over-the-limit charges. Try not to charge more than 25% of that total line of credit. By keeping your utilization rate below 25%, you'll ensure that lenders likely will see you as a good credit risk.

* Don't cut up old cards. About 15% of your credit score is based on length of your credit history. Canceling those cards cuts short your history of responsible credit usage, and it also increases your utilization rate when your total credit line drops.

A few other actions that will hurt your credit score include:

Maxing out your credit card
Shopping for credit excessively
Opening up numerous trades in a short time period
Having more revolving loans in relation to installment loans
Borrowing from finance companies.

You can get a free credit report at http://www.annualcreditreport.com/. Any website that ask you for payment information will charge you for a credit report, so be careful.

Steps to Financial Security: Prepare to pay for your children’s education

2010-02-17T14:34:00.000-08:00

Let’s face it, college is expensive and I don’t see it getting any cheaper. How do we possibly prepare ourselves for such a large expense? Coverdell Education Savings Accounts are a great option.

A Coverdell ESA is an education IRA. Unlike state 529 plans, Coverdell ESAs can be used to pay for qualified elementary and secondary education expenses. Earnings grown on a tax deferred basis, and distributions are tax-free if the money is used to pay for qualified education expenses.

For example, if you make nondeductible contributions of $2,000 every year for 16 years your account will grow to $54,426 with a 6% annual return.

Important facts about the Coverdell ESA:

The funds must be used before the child reaches the age 30.
Qualified education expenses include: tuition, fees, books and equipment required for enrollment or attendance at nearly any post-secondary education institution (public, nonprofit or proprietary) Certain room and board expenses also may qualify. Qualified expenses also include these same expenses for elementary and secondary education, and the purchase of computer technology or equipment that is used by the beneficiary and the beneficiary's family while the beneficiary is in school.
If the child decides not to go to college or leaves school before all the funds are withdrawn, you can roll unused funds into the Coverdell ESA of another child in your family.
The tax treatment of Coverdell ESAs is much the same as that of 529 plans with a few important differences. Like a 529 plan, Coverdell ESAs allow money to grow tax deferred and proceeds to be withdrawn tax free for qualified education expenses at a qualified institution. However the definition of qualified expenses in an ESA includes primary and secondary school, not just college and university.

You see that Coverdell ESAs are a great option because they can grow tax-free and they can be used for any type of educational institution. It's never to early to start saving, talk to a representative about opening your child a Coverdell Savings Account today.

A special coupon for you

2010-01-26T08:58:00.000-08:00

First Abilene FCU is excited to announce a new exclusive membership offer. Members will receive a $10 Gift Card when they sign up for a new Sam's Club Membership or renew an existing membership by April 19, 2010. Click here to print the coupon and for more information.

What a great way to help you budget by shopping in bulk.

Write the Congress to Support your Credit Union

2010-01-21T07:29:00.000-08:00

I am writing about an issue that could negatively impact you and all members of our credit union. The U.S. Congress is considering legislation that would reduce the amount of interchange fees paid by merchants when they accept a credit or debit card for payment. Interchange fees help pay the cost of processing credit and debit cards payments, with a portion going to card issuers like our credit union to cover risk and operations cost.

This issue is important to you, a member and owner of this credit union, since a percentage of our annual net income is derived from interchange income. It allows our credit union to offer low- or no-cost products and services including free checking, great rates on loans and no annual fee credit cards. Interchange income also helps absorb the cost of fraud that takes place on credit and debit cards.

A significant loss in interchange income could mean our credit union would have to charge more fees, increase interest rates on loans, or even suspend some products and services. Credit and debit card programs are an important service, but if merchants don't pay for their benefits of the system, it's unfair.

Credit and debit cards have removed the risk of payment for retailers. When retailers accept checks, they bear the risk for the check. If the check is bad, the retailer doesn't get paid. On the other hand, if a person doesn't pay their credit card bill, or if there's fraud, then the credit union still pays the retailer. To cover these risks and the cost of the system, there's a small fee on each transaction paid by merchants. And the risk is substantial.

Merchants claim that interchange fees add to consumer's costs and argue that if these fees were reduced, the savings would be passed on to their customers. Yet, in a recent Congressional hearing, a merchant trade representative said his industry would object to any language in the bill that would ensure savings would be passed directly onto the consumer. Clearly it's not about saving consumers money at all.

To express your opposition to harmful interchange legislation, please go to http://www.cuvoice.com/ and send an email message directly to your congressional representative. The more credit union members that weigh in on this issue, the greater chance we have to stop the legislation in Congress.

Thank you for your support.

Steps to Finacial Stability in 2010: Start Saving Money

2010-01-13T13:40:00.000-08:00

We all say it from time to time, "I wish I could save more money." It's a hard task and something you really have to put your mind to. It is possible, no matter what your budget looks like.

Here's the scenario: You're budget is already tight and it is very difficult to let go of any of your hard earned money and let it sit in the savings. Here are some of my personal tips to saving extra money!

Groceries- Shop in bulk and go less often. It is important to plan meals for at least two weeks at a time. If you can do a month at a time, that is even better. Of course, you may need to go buy milk and bread once a week, but if that is all you need, that is all you go for. This will help to reduce compulsive buying. Also, leave the kids at home. We all know the kids ask for every little snack they see when at the grocery store. Sometimes it is just best to leave them at home and do the shopping on your own. This will help you to stick to your list and not buy all those extra items that you really don't need.
Cut back on the things you don't need.

Lunch- Are we really that much more satisfied by eating out at lunch everyday or would leftovers or a sack lunch suit us just as well? Most of the time, we'd be just as full and happy by eating food from home at lunch. Try taking your lunch instead of eating out or from your cafeteria.
Cell Phone- It is very likely that most of us have the best cell phone plan out there. We have unlimited texting, Internet and minutes. Are you actually using all your minutes or could you cut your plan back? Maybe you can live without texting and the Internet for a few years. Most likely we can all get use to not having these extra things.
TV- Television is something we all depend on for entertainment. Though, it is something we could easily cut back on. We might not be able to watch our favorite shows anymore, but I bet we'd all find new favorite shows if we cut back on our cable/satellite plan.
Drink Water- A soft drink or tea can cost you over $2 at a restraunt. Try drinking water and see how much you can cut back on your bill.

Shop with cash! If you have trouble staying true to your budget, shop with cash. Once you hit your budget, there’s no more spending! When it’s gone, it’s gone!

Now that you've saved some money, how do you make sure that money gets to the savings each month before you spend it? Pay yourself first! This is the only way to save. Set up a payroll deduction, automatic transfer or direct deposit into your savings account. When building your budget, don’t even depend on this money. It should come directly out of the paycheck and go straight into the savings! Leave it there and don’t touch it unless you have an emergency! Talk to a Member Service Representative for help in establishing payroll deduction, direct deposit or an automatic transfer.

Those are only a few of many tips to saving money. We'd love to hear about your own tips. For 101 other savings tips, click here.

Steps to Financial Stability in 2010: Know your investment options

2010-01-08T09:10:00.000-08:00

Investing no longer means having to wait until one reaches a large sum of money. Changes in financial services have created a wide choice of savings alternatives. These alternatives are very simple to maintain and can directly yield positive earnings. The many types of savings plans can be grouped into these main categories: savings accounts, certificates of deposit, money market accounts and Individual Retirement accounts.

Regular savings accounts, traditionally called passbook accounts, usually involve a low or no minimum balance. Today, instead of a passbook showing deposits and withdrawals, savers receive a monthly or quarterly statement with a summary of transactions. Credit unions, savings and loan associations and banks offer regular savings accounts. At a credit union, these savings accounts are called share accounts.

A certificate of deposit (CD) is a savings plan requiring that a certain amount be left on deposit for a stated time period (ranging from 30 days to five or more years) to earn a specific rate of return. These time deposits can be attractive and a safe savings alternative. However, most financial institutions impose a penalty for early withdrawal of CD funds.

A Money market account is a type of savings account. Money market accounts are also referred to as “interest-bearing” checking accounts. Traditional money market accounts usually pay higher interest rates and often require higher minimum balance in order to gain these interest rates. Another difference is the number of checks one can write off a money market accounts; often the standard limit is three to six checks per month.

Individual Retirement accounts, also referred to as IRAs, are retirement plan accounts that provide some tax advantages for retirement savings. The two main IRAs are the Roth IRA and the Traditional IRA.

Roth IRAs contributions are made with after-tax assets, all transactions within the IRA have no tax impact, and withdrawals are usually tax-free.
Traditional IRAs contributions are often tax-deductible (often simplified as "money is deposited before tax" or "contributions are made with pre-tax assets"), all transactions and earnings within the IRA have no tax impact and withdrawals at retirement are taxed as income (except for those portions of the withdrawal corresponding to contributions that were not deducted).

As helpful hint to the consumer, it is always best research your options when considering simple investments. Often times, you can call the credit union and see what they have to offer and what the interest rates are earning. When considering tax incentive based products, seek the advice of a tax professional to see what meets your needs.

Check back next week for tips on saving money in order to start investing.

Steps to Financial Stability in 2010: Become a Member

2010-01-06T11:45:00.000-08:00

Suze Orman has it right when she list checking out a credit union as a way to find hidden savings in your finances. Members know the credit union difference and we're happy to make that difference for you. Since the credit union is a member owned, not-for-profit, cooperative, we return our profits to our members through higher rates on savings and lower rates on loans. If you're a member you've already checked off step one to financial stability. Now you just need to utilize it.

Check back for more steps in achieving financial stability in 2010 and don't forget to become a follower.

To read Suze Orman's article in the O Magazine, click here.

Sticking to your New Year's Resolutions

2009-12-29T13:40:00.000-08:00

It's a new year and that means many of you are currently making your New Year's Resolution. Do any of your resolutions include finances? I'm assuming many of you have thought about making finances a priority in 2010. According to TD Ameritrade, 63 percent of people have resolved to save more money in the new year. Unfortunately, many people struggle to meet their goals. Today, I would like to give you some tips on keeping your New Year's Resolution.

Write down your goal. Just writing your goal down will increase your chance of achieving that goal. The biggest part of meeting a goal is just making the goal. After you have the goal on paper, all you have left to do is execute it.
Set goals to meet monthly or even quarterly, in order to achieve your resolution. Sometimes the big goal at the end is just too big and it seems unreachable. If you set small goals to meet in-between, you are more likely to reach the big goal in the end.
Set goals that are achieveable. If you're $50,000 in debt, don't set a goal to get out of debt in one year. Instead try to reduce that debt by a large percentage. It is important to make your goal achieveable, yet still a mission.
Remind yourself. Our lives get busy and without small reminders we seem to forget about our goals and ambitions. Stick notes on your bathroom mirror or in your car. Do whatever you have to do to remind yourself of your goal on a daily basis.

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