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DSEF Shares Consumer Resources from the FTC

DSEF Shares Consumer Resources from the FTC

Today’s highlighted blog post from NCPW:

Free Trials Can Cost You

Trying something out for free? It sounds great, but there may be a catch — free trials aren’t always free.You may end up on the hook for lots more products and find it tough to cancel.

 

For 13 years, the DSEF has been proud to partner with the FTC and other organizations to offer a wide array of education events and resources that encourage consumers nationwide to take full advantage of their rights and make better-informed decisions.

You’ll find a wealth of resources at www.ncpw.gov that will help you protect your privacy, manage your money, learn more about credit and debt, decipher advertising messages, and steer clear of fraud and scams.

Please take a moment to share the resources on this Web site with others in your communities and companies and, together, we’ll help build a nation of better-informed and educated consumers.

Charles. L. Orr
Executive Director

Direct Selling Education Foundation

 

 

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Free Educational Series for Entrepreneurs

Free Educational Series for Entrepreneurs

Money Wise Women Educational Services is a non-profit organization dedicated to educating and empowering women to live financially healthy lives. DSEF proudly sponsors the free Money Wi$e Women Get Smart Teleseminar Series hosted by Marcia Brixey, Founder and President of Money Wise Women Educational Services and author of The Money Therapist: A Woman’s Guide to Creating a Healthy Financial Life. The series covers topics related to business and finances and provides women the opportunity to learn from professional experts in a safe, comfortable environment.

Here are only some of the topics that can empower your business, money and life. Listen to past interviews with professional experts:

  • The 5-Keys to Unlocking Passion, Purpose and Prosperity: A Transformational Approach to Goal Setting
  • Managing Your Time and Multiple Commitments
  • Tax Tips For The Self Employed
  • Reduce Debt, Reduce Stress
  • Your Money Personality And Self-Employment
  • Power of Vision Using Dream Boards
  • So You Want to be an Entrepreneur
  • Give Your Elevator Speech a Lift
  • Create the Life You Imagine: Dream It, Believe It, Be It
  • Goal Setting for Financial Success and Prosperity
  • Train your Brain
  • Achieving a Lifetime of Financial Security
  • Women And Leadership – A perfect match
  • Email writing that counts

And many more! To see the complete list and access each recording, visit http://www.moneywisewomengetsmart.com/past_teleseminars.html

To find out about and register for upcoming teleseminars, visit http://www.moneywisewomengetsmart.com/

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‘Fiercely loyal’ to a financial institution? – Guest Post by Janet Garkey, CUNA

‘Fiercely loyal’ to a financial institution? – Guest Post by Janet Garkey, CUNA

From the DSEF: Today we’re thrilled to bring you a guest post from Janet Garkey of the Credit Union National Association (CUNA), a DSEF strategic partner. In partnership with state credit union leagues, CUNA provides many services to credit unions, including representation, information, public relations, continuing professional education, and business development. Ms. Garkey has more than 20 years of personal finance experience in the private, public, and nonprofit sectors.

Janet Garkey

‘Fiercely loyal’ to a financial institution?
by Janet Garkey

Even a simple dog walk can turn educational. And the day job comes in handy at these times.

One of my neighbors—in the wake of so much media attention about big banks charging new or higher debit card fees—approached me during a recent walk and asked, “What’s the difference between a bank and a credit union?”

My dog is smart. She sat down. I turned to my neighbor and began to explain.

Philosophy: Credit unions are not-for-profit financial cooperatives that exist to serve their members, not to make a profit. The original concept was simple: Credit union members pool their savings and lend to each other. Earnings are returned to members in the form of better rates, fewer and lower fees, and improved services. Banks exist to earn a profit for stockholders.

Ownership: Each credit union member has equal ownership and one vote, regardless of how much money the member has on deposit. That means each customer is both a member and an owner. Banks are owned by stockholders.

Control and management: Credit unions are managed by unpaid directors, who serve voluntarily and are elected by members. Banks have paid directors, legally bound to make decisions in the best interests of their stockholders.

Membership eligibility: People qualify for credit union membership through a common bond. Most U.S. citizens qualify. For example, membership is open to those who work, live, worship, or attend school in a defined community. There are credit unions for military personnel and teachers, and credit unions open to everyone in a particular county. Currently, nearly 94 million members own more than 7,400 U.S. credit unions.

Social purpose: People helping people. Every member counts, and the goal of a credit union is to serve all members well, including those of modest means. Members are fiercely loyal because they know their credit union will be there for them in bad times, as well as good.

Financial education for members: From the very beginning, credit unions wanted to keep members economically independent by helping them learn to save and borrow wisely. Credit unions hold educational seminars on car- and home-buying, basic budgeting, fraud prevention, and more. And they offer a wide variety of print and online tools to help members become better-educated consumers of financial services.
Just as I paused, my dog stood up, anxious to move on down the street. But I had one more message for my neighbor. Credit union founders had a motto that described why credit unions were formed in the first place: “Not for profit, not for charity, but for service.” And in this day and age, great service translates to loyalty. Just ask my dog.

To find a credit union near you, visit aSmarterChoice.org.

 

Janet Garkey has more than 20 years of personal finance experience in the private, public, and nonprofit sectors. She joined Credit Union National Association in 2003 and develops personal finance products for credit unions. She has held positions at Iowa State University Extension, American Express Company, and the U.S. Office of Consumer Affairs. She currently serves on AFCPE’s Board of Directors. She twice served on the Board of Directors, served as President 2002-2003, and chaired several committees for the American Council on Consumer Interests. She has a B.S. in Consumer Affairs from the University of Wisconsin-Madison, M.S. in Consumer Economics/Public Policy from the University of Maryland, and completed the Accredited Financial Counseling certification from AFCPE in January 2009.

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How to Use Credit Cards Wisely

How to Use Credit Cards Wisely

Like most things in life, there are always two sides to everything. We try to maximize the benefits and minimize the negatives. The same holds true with credit cards. They can be a valuable resource, but you have to use them wisely or they could cause trouble! Understanding the pros and cons of credit cards can help you navigate your financial decisions successfully.

Here are the Pros of credit cards:

  • Convenience – You can use credit cards almost anywhere and for almost anything.
  • Great for emergencies – If your car breaks down and you need it fixed, your credit provides you with an immediate sum of money.
  • Rewards programs – These days you have so many choices when it comes to reward programs. If you want to save money on gas, get a card that gives you a discount. If you want to travel, get a card that give you free airfare mileage. If you want to start a college fund, get a card that will put money into your child’s college fund.
  • Building your credit history – Credit cards are a quick and easy way to build up your credit score.
  • Easy way to keep track of spending – Your monthly statement can help you maintain a budget, and manage expenses.
  • Establish a business account – With a business credit card account you’re keeping your business and personal funds separate and establishing a business credit history.
  • Security – If you lose your money it’s lost forever, but the bank can replace a credit card and stop any unauthorized purchase. And if you overpay for something or receive a defective product you can contest it or get your money back through your credit card company.
  • Consolidation – If you’ve used several credit sources, you can consolidate payments into one payment.

These are the Cons that you want to minimize:

  • High interest rates – Make sure you can pay off your balance each month.
  • Fees and penalties – Choose credit cards that have lower fees and always pay on time.
  • Identity theft – Having a credit card increases the risk of identity theft. Be sure to keep an eye on your statements, and shred them before discarding them.
  • Increase debt – If you’re not disciplined, you can easily find yourself with a large debt. Don’t let your debt get out of hand.
  • Credit score risk – If you have too many cards or don’t maintain them well, your credit score can drop quickly.

Here’s how to maximize the advantages:

  • Use your credit cards in emergencies primarily.
  • If you have a business, establish a credit card in your business name to separate your business and personal finances.
  • Choose and use rewards programs wisely to maximize discounts, accumulate travel miles, start a college fund and meet other financial goals.
  • If you have a lower interest rate or 0% promotional cards, use them to pay for large purchases, but make sure you can pay off the debt before interest rates increase.
  • If you need to increase your credit standing or score, use your credit cards and pay on time. Carry some debt short term and then pay off the balance. Financial institutions are evaluating your ability to maintain your debt in calculating your credit score.
  • Review your credit card statement every month and use it to maintain your budget. If you find that you are spending too much, switch to cash only purchases.
  • Use credit cards for thoughtful purchases and never for impulse buying.
  • Put all your automatic payments on credit cards so you have a record of them, but make sure you pay them off each month.
  • If you have several higher interest payments that can be lowered by consolidating them onto a lower credit card, do so, but keep in mind that it’s only for the short term and you must pay them off before the interest rate rises or is due.

Credit cards are a modern convenience and can be beneficial if used properly. Are there other advantages that you can think of? We would love to share your tips with our community.

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Opt Out of Debt, Not Credit – Guest Post by Rod Griffin, Experian

Opt Out of Debt, Not Credit – Guest Post by Rod Griffin, Experian

From the DSEF: We’re delighted today to share with you a guest post from Rod Griffin, Director of Public Education at Experian. Experian, a Direct Selling Education Foundation strategic partner, is a global leader in providing information, analytical tools and marketing services to organizations and consumers to help manage the risk and reward of commercial and financial decisions. 

Rod Griffin, Director of Public Education for Experian

Opt Out of Debt, Not Credit
Guest post by Rod Griffin

I was recently asked if a person could “opt out of credit reporting.” The answer is yes, but only if you live a truly cash-only existence. If you never use credit of any kind you will not have a credit report. Most would find that having no credit report is not as desirable as it first sounds.

Take a moment to consider how ubiquitous credit and credit reports are in your daily life, even for things that don’t involve debt. For example, cellular telephone companies typically review your credit report when you apply for service, utility companies and apartment complexes do the same before activating an account or approving a lease, and a credit card is often required to reserve a rental car or hotel room.

Without credit or a credit report, you may be required to pay a deposit or security fees, have a hold placed on your checking account to obtain services and could even have difficulty qualifying for rent or getting a job.

A better approach is to opt out of debt, not credit. You can have one without the other.

Start by paying off any existing debts. You might choose to close some of your accounts, but don’t close all of them. You only need one or two credit accounts to have a strong credit report. Make a small purchase from time to time and pay the charge in full to demonstrate the account is active and that you make good credit decisions.

You still must do all of the things you would do if you were living a cash-only lifestyle: budget carefully, don’t spend more than you earn and pay yourself first by setting aside savings regularly.

But, by opting out of debt, not credit, you will keep your credit report, which is an important and powerful financial tool.

Rod Griffin is Director of Public Education for Experian. He is responsible for Experian’s national consumer education program and supports the company’s community involvement and corporate responsibility efforts. He supports various national consumer education initiatives including the LifeSmarts Consumer Knowledge Competition, for which he serves on the Corporate Advisory Board, and the Jumpstart Coalition for Financial Literacy. In addition, he produces a variety of consumer education materials and for more than a decade has written Ask Experian, an online consumer credit advice column. Rod holds a B.S. in journalism from the University of Kansas, has a Fair Credit Reporting Act certification from the Consumer Data Industry Association and is a Center for Financial Certifications Certified Financial Counselor.

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Simple Tips for Saving Energy

Simple Tips for Saving Energy

If you’re a small business owner that works from home, your electricity bill may be doing double-duty…covering both your home and business energy needs. Fortunately, there are some simple ways to save energy throughout your home, leaving you with more cash for the bottom line!

Here are some simple ways to save energy around the house:

  • Caulk and weatherstrip your doors and windows. It keeps cool air in during the summer, and heat in during the winter.
  • Add a storm door to all outdoor doors.
  • Replace your windows with energy-efficient windows if possible.
  • Use heavier window treatments, such as shades and curtains, to help maintain the indoor temperature in your home.
  • Make sure all of your appliances are energy-efficient.
  • Unplug all appliances, including computers, when they will not be used. This keeps them from drawing power when not in use. (Alternately, plug into a power strip and turn off the strip when not in use.)
  • Turn off your computer if you’re not going to use it for more than 2 hours. If your monitor is separate from your computer, turn the monitor off if it will not be used for more than 20 minutes.
  • Use of new lighting technologies can reduce lighting energy use in homes by 50%–75%. Upgrading 15 of the inefficient incandescent light bulbs in your home could save you about $50 per year. (source: energysavers.gov)
  • Use the lowest watt bulb practical for each space. The lower the wattage, the less energy the bulb uses when lit.
  • Turn off your lights whenever you don’t need them, and teach your family to do the same.
  • Turn down the heat in your home. By getting your family used to a lower temperature (even 5 degrees) you can save a lot of energy.
  • Consider using a space heater, rather than turning up the system in your whole house, if you’ll only be using one room in your house for long periods of time (like a home office.)
  • To conserve hot water, fix leaks and install low-flow fixtures.
  • An energy-efficient dishwasher can actually save more energy than hand-washing dishes in hot water several times per day, especially when using shorter wash cycles.
  • Get an energy-efficient clothes washer and dryer. In your clothing washer, use cold or warm water for washing, and cold water for rinsing.
  • Lower the thermostat on your water heater. For each 10ºF reduction in water temperature, you can save between 3%–5% in energy costs. Most households are just fine with a setting of 120ºF on their water heater. Reducing your water temperature to 120ºF also slows mineral buildup and corrosion in your water heater and pipes. This helps your water heater last longer and operate at its maximum efficiency.

By giving some attention to these small details, and teaching your kids to do the same, you can reduce your energy costs and conserve energy. And that means more money in your pocket!

How do you save energy at home? How does your business conserve energy? We would love to read your thoughts and tips in the comments below!

We are thankful to the US Dept of Energy for sharing these valuable tips on their website at http://www.energysavers.gov. For more information on any of the topics above, please visit their website.

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Keeping Your Personal and Business Finances Separate

Keeping Your Personal and Business Finances Separate

Are you keeping your personal and business expenditures separate? This is a daily task that can get muddy for small businesses quickly, and can make tax time a real headache.

Here’s a checklist to keep this task simple and clear. Follow these simple steps and you won’t get things confused when it’s time for filing your taxes.

  • Maintain separate checking accounts. Having all business payments and expenses on one bank statement will give you a clear idea of your business finances, and when it comes time to do your taxes you can use your bank statement to clearly explain your business accounting.
  • Use a business credit card. A business credit card will help your business build credit history as your business grows. Keep all your business expenses on one statement and avoid using your personal credit card for business.
  • Maintain two separate places for personal and business receipts. If you have a very small business it may be as simple as two shoe boxes. Use one box for business expenditures and another for personal. As your business grows you should use some type of accounting software.
  • Keep a log of your business expenses. For example, if you use your personal car for business regularly write your mileage down, or even better, keep track of it on your computer/smart phone.
  • Your home office is for business, period. If you have a home office for your business and want to claim it on your taxes, you need to keep it for business use only and not anything else like a guest room.
  • Understand what a business expense is and what it is not. You cannot add personal activities into a business meeting and call it a business expense. It must be for business completely or it’s not a business expense.

Following this simple checklist will help you during tax time because your personal and business finances are separate. Now you can focus on growing your business!

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How To Start Saving: From Baby Steps to Retirement

How To Start Saving: From Baby Steps to Retirement

Sometimes our finances can become overwhelming to keep track of. And starting a savings account is the last thing on our minds. But it’s necessary to avoid living from paycheck to paycheck! It’s also a great life and academic lesson for our kids to learn.

Here’s where to begin saving:

  1. It could be as simple as a piggy bank – If you are living paycheck to paycheck, having a piggy bank for you and your kids is a great way to start saving. It could be for change left over, found money or from part time jobs, chores and gifts.
  2. Make it automatic and a habit – Every time you get change from shopping or chores, save it. The ideal is to put away 10% of each paycheck. If that’s not possible try 5% – any amount. The sooner you start saving the more money you’ll accumulate.
  3. Make the mental shift – Save instead of spend. Think about this, if you saved and invested your money from not buying that bottle of soda how much would it be in 15 years? A few hundred dollars? Then multiply that by how many bottles of soda you buy in 15 years. It’s probably enough to help you retire!
  4. Open a free savings account – Once you get used to saving, don’t hide it under a mattress. Formalize the process and open a savings account with your local bank. Make sure that the account doesn’t have a fee associated with it. Again, the process of opening and systematically putting savings away is a great life and academic lesson for your kids.
  5. Set a goal for your savings – Save up for a new bike, a trip or even money for college. The process of setting a goal may mean that you’ll have to create a budget, calculate interest, figure out how much things cost, etc. All this means you’re on your way to mastering the art of savings.
  6. Start a Roth IRA retirement account – It’s a special retirement account that allows you to earn interest tax-free, and make tax-free withdrawals after age 59-1/2.

The key to savings is to start now, to make it a habit and to set goals for how you plan to use your money. These simple tips will get you on the right path to financial security. As your savings grow, find a trusted financial advisor to help take you to the next level.

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It’s Time For Your Annual Credit Check-Up!

It’s Time For Your Annual Credit Check-Up!

It’s time for your annual credit check up! It’s not only a smart way to maintain your financial health, but to also avoid financial and identity fraud. A once a year credit checkup is like getting an annual physical…it makes great sense and makes you feel good knowing you’re healthy.

Here are a few steps to review your credit and financial health:

Step 1 – Obtain your free once a year credit reports from all three credit agencies.

Step 2 – Review your credit reports and check if there are any inaccuracies or incomplete credit history.

Step 3 – If you do find a discrepancy, report it to the agency. They are required to investigate the inaccuracy within 30 days.

Step 4 – If you do have a legitimate negative mark, contact the creditor directly to negotiate and arrange for a payment plan.

Step 5 – Your credit report’s health is reflected in your FICO score which is a measure of your capacity to repay loans. This will affect the interest rates for your loans.

Step 6 – Understand your debt ratio. Creditors prefer a debt ratio under 36%. For example, if you earn $3000 monthly they want to see debt payments less than $1080 a month.

Step 7 – Consider keeping only 2 credit cards, maintaining less than 30% of the maximum limit at any time and always pay on time.

Step 8 – Develop a budget and financial plan. Review it annually to fit your financial situation.

Step 9 – Seek help from a certified credit counselor for sound financial advice if you get in trouble.

For more financial tips check out this helpful free government site http://www.ftc.gov/

This is all part of a healthy life style. Eating right, exercising, thinking positively and maintaining your credit leads to a happier you!

Do you check your credit annually? What tips would you offer? Would love to read your thoughts in the comments below!

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How to Break Bad Money Habits

How to Break Bad Money Habits

We know how it is. You’re busy. You meant to make that bank deposit yesterday, but there just wasn’t time. Now you’re staring at $56 in small bills and have no idea who gave it to you. You’d deposit the cash anyway, but your bank, which is on the other side of town, is closed on Saturdays.

If this scenario reflects the way you run your business, maybe it’s time to take a look at your money management process as you break your bad habits. Here’s how to get started:

Banking

  • You should have a business checking account in your name that’s separate from any other personal or business accounts
  • Your account should be with a bank that’s conveniently located and has opening hours that fit your needs
  • Look into the services the bank offers — and use them! Most accounts can now be securely accessed online and via phone; some banks offer an online check deposit service

Cash Handling

  • Keep envelopes in your bag to separate cash and checks from various sources; write identifying details on each envelope
  • If you do a lot of business on a cash basis, get into the habit of making daily deposits; invest in a small safe to hold cash between deposits
  • Be safe! Make cash deposits during daylight hours when possible

Check Handling

  • Double check every check as it’s handed to you to be sure the date and amount are correct and make sure the numeral amount is the same as the written amount
  • Make sure each check is signed
  • Follow your company’s guidelines for accepting checks (ask for photo ID, stamp with “for deposit only,” etc.

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