Interesting Facts

Some interesting facts according to Ag Center Research and Extension.

College Students:
• Undergraduate students carry an average of three credit cards each and have an average credit card debt of $2,327 in 2002—a 15 percent decrease from the 2000 average! (Nellie Mae,2002)
• The average college freshman has 2.5 credit cards; by graduation they have almost tripled the number of cards they hold. (Nellie Mae ,2002)
• Graduating students have an average of $20,402 in combined education loan and credit card balances. (Nellie Mae, 2002)
• Graduate students have an average credit card debt of $4,776 and hold an average of four cards each. (Nellie Mae,,2000)
• Twenty-eight percent of students with a credit card roll over debt each month. (Nellie Mae, 2000)
• University administrators state that they lose more students to credit card debt, than to academic failure. (Utah Mentor, 2003; The Voice Digital News, 2003)

Bankruptcies:
• We have recently seen an over $50% increase in bankruptcies among people under age 25.
• 1.4 million families filed for personal bankruptcy in 2001 (American Bankruptcy Institute, 2003)

It's scary the amount of debt young people are getting into. I am no exception and have had to learn the hard way that paying money back is much much harder then NOT spending it the first place. It is so important to understand financial literacy.

How Safe Is Your Money?

With all the news about failed banks, many people are asking…. "How safe is my money? Members of LA Financial Federal Credit Union need not worry.

• LA Financial’s mortgage portfolio is only a small portion of total assets.
• LA Financial practices very conservative mortgage underwriting standards.
• Best of all, deposits at LA Financial are insured by the National Credit Union Share Insurance Fund (NCUSIF), an arm of National Credit Union Administration (NCUA).
• Not one penny of insured savings has ever been lost by a member of a federally insured credit union.

Your share insurance is similar to the deposit insurance protection offered by the Federal Deposit Insurance Corporation (FDIC). The NCUSIF is backed by the full faith and credit of the United States government. Most properly established savings accounts in federally insured credit unions are insured up to the Standard Maximum Share Insurance Amount (SMSIA), which is $100,000. The insurance coverage on certain retirement accounts, such as IRAs and Keoghs is up to $250,000. Generally, if a credit union member has more than one account in the same credit union, those accounts are added together and insured in the aggregate. There are exceptions, though. You may obtain additional separate coverage on multiple accounts, but only if you have different ownership interests or rights in different types of accounts and you properly complete account forms and applications.

For more information, view the NCUA Share Insurance Estimator (an educational resource about share insurance) for a detailed explanation of insurance coverage.

Do you know about EFT?

You've seen other people do it for years, they swipe a card or click a mouse and a purchase is made. But what is really happening is EFT (Electronic Funds Transfer). Whenever we swipe our cards and transfer money online, use an ATM, make an online purchase, inter-account transfer, direct deposit or online bill pay, we are using EFT.

EFT can be good for the environment. As many as 2.3 million tons of wood (about 16.5 million trees) would be saved every year if all U.S. households viewed and paid bills online instead of getting paper statements. The bad news, instead of someone stealing cash from your wallet, there’s the risk of identity theft. That’s why there are common safety features associated with EFT that help to authenticate the card and card holder:

• Signature verification
• Personal Identification Number (PIN)
• Magnetic strip information (on credit and debit cards)
• CVV code - printed into the signature panel on the back of your card
• Password protection (for online account access)

PIN and signature-based debit card use has topped $800 billion annually in recent years. Instead of carrying cash, we're using EFT by swiping our cards and clicking online, saving time and money.

To start using EFT, simply apply for a savings, checking, or credit card account. Soon you'll be able to access your funds quickly and efficiently. You should regularly monitor your scheduled bill withdrawals, direct deposits and online purchases to make sure that all transactions are legitimate.

Manage Your Green

You may be young, but with each passing moment, the opportunity to make more money is slipping away. By not effectively managing your money, you may be missing out on some serious long-term rewards.

So where do you turn for financial guidance? We suggest the MoneyMix™: Launch Your Life. Designed for adults 18-30, MoneyMix is loaded with articles, blogs and videos on money management. The topics cover the big decisions people your age make every day, and show you how to make the right financial call.

The site also provides insight on budgeting and saving for future goals. It’s a golden opportunity to learn how to manage your green, and it’s waiting for you by clicking here.
For younger members, we also have a link to Googolplex® The Credit Union Guide for Student Moneymakers.

Googolplex® is an online magazine written by youth for youth, and deals with money matters and life issues through colorful stories and interactive games. Googolplex reaches youth of all ages- C-Note for high schoolers, AJ’s for middle schoolers, and the Five-Spot for elementary schoolers.

How do you decide where to bank?

I was wondering how many people think that APY's are important? I mean most people know what they are but financial institutions try all sorts of promotions offering great APY's. Do those incentives really make people move their money from one financial institution to another. Or do you just bank with the financial institution your parents bank at?

Never Pay ATM Fees Again

I have two twenty something children who always run short on money before payday. When I look at their checking accounts, I see a lot of small ATM withdrawals and a lot of BIG ATM fees. Although the Credit Union belongs to the Co-Op Network with over 25,000 surcharge free ATMs, they can never seem to find one when they need one. So, they end up paying $2 - $3 to the bank owning the ATM and $1.50 to the Credit Union.

But... I have a solution. If they were to go to any grocery store and buy something (bottled water, gum, etc.) with their Debit card and get cash back ($10, $100, whatever), the $3.50+ in fees would be eliminated. So, be smart and avoid fees - if a Co-Op machine is not handy, I'm sure that you can easily find a grocery store.

Did you know, we now offer checking accounts and debit cards for members starting at age 13? So, get a checking account & debit card but use it wisely. Don't pay unnecessary foreign ATM fees.

Find a surcharge-free ATM – even when you’re on the go! Simply text an address (with city, state), a zip code or an intersection to 692667 (MYCOOP). In less than 30 seconds, you’ll receive a reply with an ATM near you. For additional ATMs, simply reply “More.” The service is free, standard text messaging rates apply.

Welcome to the Green Blog

It’s our job to supply you with sustenance. To feed you financial info and money tips you can use. But sometimes it helps to discuss money with your peers. That’s why we put the Go Green Blog together; so we can update you on important financial news and tips, and give you an interactive forum for discussing your financial life.

Check back often to see what we’re talking about on the Go Green Blog, brought to you by LA Financial Credit Union and Havasu Community Credit Union.

Green Accounts

Being successful with money has everything to do with how well you manage it. To help you better understand how to do that, we've put together specific financial products for young adults age 13 - 17 and a webpage filled with helpful tips and information. It's a great way to get in-touch with your greener self. And don't forget, if there's ever a thing you have a question about, just give us a call at 800-894-1200. We're here to help you master money. Green Accounts.

What we're talking about

Over the years, we have explored numerous ways to communicate with our members. We still use the mail, of course, but not nearly as much as we used to (just like everyone else we get frustrated with all the piles of mail we get too.) We have also used the typical advertising options (television, radio, newspaper) and while they are great for getting a quick message out to a lot of people, there are times when we want to share more detailed information.