Streamline Your Finances—Automatically

Putting your money on auto-pilot saves time, money and the environment. Step one is to find out if your employer offers direct deposit; most do. Signing up is usually as simple as taking a voided check to your human resources department. You’ll see your first paycheck appear automatically in your Army Aviation Center Federal Credit Union account within a few weeks.

Step two is to set up electronic payments. There are a few ways to do this, and you can use them all:

1. Use your our free online bill pay service to pay bills by electronic transfer to a vendor or service provider. Or, if the merchant isn’t set up to accept these, the credit union will issue a paper check debiting your account. You can set up payments 24/7, adjust payment dates to coincide with your paydays and make optional extra payments when you can—say to your credit card.

2. Authorize a biller to take money directly from your checking account. These ACH payments can take a bit of effort to stop, so use them for regular, uniform payments that will continue for a long time—mortgage payments are a no-brainer.

3. Pay bills online using a credit card. Paying with your credit card is ideal for bills that only pop up twice a year—like car insurance. It’s also a good option for bills that change in amount, such as your cell phone bill. Be sure to pay off the card balance each month to minimize interest charges.

Are you looking for a low-interest credit card to use in times like these? Check out our MasterCard credit cards. You’ll find that we have some of the lowest rates around!

With these three automated options, you can pay every bill you have.

Don’t overlook automating routine savings, too. Set up automated transfers from checking to your credit union savings account(s), and you’ll always be financially ready for an unexpected car repair and for infrequent but larger bills like insurance premiums.

Streamlining your finances with online tools is about more than just saving time. By helping you to avoid late fees and overdraft fees, automatic services save you money. To make sure you’re never penalized for overdrawing your checking account, for example, set up an overdraft protection savings account or line of credit.

Once you’ve automated your finances, use our website or mobile banking tools to track your accounts and transfer money between them. Check accounts frequently to make sure your automated system is working smoothly and to monitor for attempted fraud or ID theft.

If you need help automating your finances, an AACFCU member service representative can help. Call us at 800-448-4096, email us at cuinfo@aacfcu.com or stop in today for assistance.

Copyright 2012 Credit Union National Association Inc. Information subject to change without notice. All other rights reserved

Pay Yourself When You Pay the Bills

When it comes to saving, paying yourself each month is as important as paying your bills. Make it easy with direct deposit and payroll deduction. With direct deposit, your monthly paycheck goes directly to your credit union account. Then, use payroll deduction to direct funds to pay off loans or build savings. Can’t get much easier than that.

Ready to Switch? We Can Help!

You’re already a credit union member? Good for you. But if you aren’t, and concern about the work and time it would take you to switch is the only thing holding you back, you could be closer to making a move than you think.

It turns out that breaking up isn’t all that hard to do. You can follow this seven-step checklist adapted from Consumer Reports:

Step 1: Open your new account with a small deposit. You can open a savings account with us for only $6 ($1 one-time membership fee and $5 initial deposit). We also offer a free checking account– no monthly fee, no minimum balance requirement, no per check fee and a free debit card!

Step 2: List all of the automatic payments and deposits set up to go in and out of your old account each month and on what dates.

Step 3: If you have direct deposit, ask your employer to switch your paychecks to your new account. If you don’t already use direct deposit, this is a great time to set that up, too. Then, find out what date the first deposit will occur.

Step 4: When you know the date of your first deposit, reschedule each automatic payment or debit to come out of your new account.

Step 5: Leave a small amount of money in your old checking account for at least one more month.

Step 6: Once you’re sure all automatic payments and all direct deposits are coming and going from your new account, transfer the final funds from your old account into the new account.

Step 7: After the transfer clears in your new account, close the account at your old financial institution and get written confirmation that your account is closed.

When you’re ready to switch, we’re ready to help. It only takes a little time and some information. We would also be happy to talk with you about transferring any credit cards, home loans, vehicle loans or other credit accounts from other providers. Stop by one of our branches, call us at 800-448-4096 or email us at cuinfo@aacfcu.com, and let us know how we can help!

Sending Kids the Right Money Message

Money does not grow on trees. Okay, you know this – but do your kids? Teaching children the meaning of money is vital to ensuring they know how to survive in a world full of financial hazards.

There are many ways to instill healthy habits, but the most important method is to teach by example. If your children see you using credit cards to pay for what you can’t afford, it won’t be long before they believe that depending on loans is the only way to make ends meet. If they hear you argue or fret about bills, they are likely to have a negative association with money management. As a parent, coming to grips with your own financial mishaps will not only benefit you, but will have a tremendous and lasting impact on those who are watching you. And they are watching.

Teach early
How young is too young to learn about money? This question has been much debated, but even toddlers can and should be introduced to certain rudimentary ideas. Rather than giving formal lessons (that are sure to confound and bore a three-year-old), make your outings together fun learning opportunities. By the time he or she knows numbers and the concept of less and more, hit the world together and begin the learning process.

Teach good shopping habits
When shopping, teach your child to be a selective consumer. Discuss price versus product. For example, when you are at the supermarket, pick up a couple of boxes of cereal and say, “this one costs $2.50, and this $4.50. Which should I buy?” In age-appropriate language, discuss why you would – or wouldn’t – choose the less expensive box.

At the checkout counter, hand your child the bills and allow him to pay for what you’ve chosen together. That action will help him understand that things don’t magically appear, but are bought. If you use a credit card for purchases, make sure you explain that there will be a bill at the end of the month that must be paid by a specific date.

Teach the work-income connection
Before heading off to work, take a moment to explain that you are going not just because you like your job (associating work with enjoyment and fulfillment is also an important lesson), but to earn an income so you can pay for the things you need to buy for the household. Keep it simple, light, and positive. 

Bump-up the lessons
As your child gets older, keep the lessons up but increase their complexity. Read the business section of the newspaper together and discuss the basics of economics. If you are fuzzy on the details of how the stock market works or the impact of taxes in our lives, make a commitment to learn more – and to share that knowledge with your child.

Talk about marketing and advertising too. While it may not change the fact that your daughter wants a hundred dollar pair of jeans, she will at least be aware of why she desires them.

Allow them the opportunity to make mistakes and have successes
Giving money to children is a very hot topic, and there are a great many philosophies about how and when to do it. Each family has their own way, and what works for you and your kids may not for the family down the block. However, learning how to handle money is best done with cash in hand. 

Whether you give an allowance that is based on chores, is freely given, or you provide a “base salary” with an opportunity to earn bonuses, make sure you give your child the chance to make mistakes. Made on a small scale, a mistake such as blowing a months’ allowance on a toy that immediately breaks can be the most effective learning device around.

Emphasize Saving
Many children are natural savers; stockpiling coins like squirrels hoard nuts. Others have to be taught to sock money away. But whether saving is innate or learned, it should always be encouraged and praised. Once again, the best way to teach is to lead by example. Talk about saving – what you do, how you do it, what you are saving for. Your excitement and commitment will be transferred to your child.

Teaching children about money – how to earn, use, and save it – can be a very enjoyable experience for all involved. However, to be the most effective instructor, you may have to change some of your own notions and habits, or learn a little more than you know now. The end result will be children who are more apt to survive the lean times – and maybe teach you a thing or two when they get older!

“Beware of Fake Check Scams” by Jason Alderman from Practical Money Matters

The other day I got one of those annoying emails from a supposed Nigerian prince promising rich rewards for helping to move money out of his country. It’s hard to believe those kinds of scams are still thriving, but they are. In fact, according to a recent survey conducted by the Consumer Federation of America, fraud (including fake checks, bogus sweepstakes and work-at-home schemes) is now among the top 10 consumer complaints received by consumer protection agencies.

Endless variations on fake check swindles are being perpetrated by phone, letter and email, including these gems:

• You’ve won a foreign lottery and are sent a check that’s the first installment of your winnings. To get the rest, you must deposit and cash the check, then wire the money to someone who will pay facilitate the transaction and pay taxes on your behalf.
• Someone responds to your classified ad or online auction posting for a valuable item. They have a logical-sounding reason why you‘re receiving a check above the purchase price: For example, they live overseas and asked someone in the U.S. who owes them money send you a check for more than your sales price; then, you’ll keep your share and wire the buyer the difference.
• You’re hired as a secret shopper to help evaluate a money-transfer service. You’re sent a check to deposit, minus your “pay,” and are then asked to wire out the remainder using the service being tested.

What these scams have in common is that the checks themselves are fraudulent. Thieves count on the fact that your bank generally must make deposited funds available to you within a few days. However, weeks may pass before the bank ultimately discovers the fraud, at which point they bounce the check. You must then repay your bank the money or have your account frozen or closed and be sued – possibly even face criminal charges.

Today’s sophisticated scanners, printers and software programs make it easy to create checks that sometimes even fool authorities. A few warning signs:

• Fake checks are often printed on lighter, slippery paper and lack at least one perforated or rough edge.
• Missing or faded bank logo, suggesting it may have been copied.
• No street address or a P.O. Box only, or an inaccurate ZIP code.
  • Check number at the upper right corner doesn’t match the number on the check’s bottom line.
  • Usually drawn for less than $5,000 because by law, deposits under that amount must be made available to you within five days. Crooks count on your completing their transaction before the check has actually been cleared by the issuing bank.
  • Stains or gaps around signatures, a digitized appearance, or odd pen strokes, suggesting a scanned or forged signature.
  • The first nine digits in the check’s bottom line typically identify the routing number of the issuing bank. Having fewer or more than nine digits means it’s fake. Verify correct routing numbers at www.fededirectory.frb.org/reserve.cfm.

Many good resources exist where you can learn more about fake check scams and how to avoid them, including the FBI (www.fbi.gov/scams-safety), the Federal Trade Commission (www.ftc.gov), the Consumer Federation of America (www.consumerfed.org), and the National Consumers League (www.fakechecks.org/index2.html).

To paraphrase P.T. Barnum, there’s a new scam born every minute. Just make sure you’re not one of the poor suckers who falls for it.

Jason Alderman directs Visa’s financial education programs. Find this original article and more from Jason Alderman at Practical Money Skills for Life and Practical Money Matters.

This article is intended to provide general information and should not be considered legal, tax or financial advice. It’s always a good idea to consult a legal, tax or financial advisor for specific information on how certain laws apply to you and about your individual financial situation.

Get Back Three Days a Year—Use Direct Deposit

Tired of waiting in line on payday? Consumers who set up direct deposit of their paycheck save the equivalent of three work days a year by not having to go to their financial institution to deposit checks, according to a recent report by NACHA–The Electronic Payments Association.

In addition to saving time, with direct deposit you’ll never have to worry about lost or stolen checks and your payment will reach your account the day the check is issued–even if you are out of town, sick or unable to get to one of our branches.

Take advantage of the convenience of direct deposit, but don’t become a stranger–you still can visit us for any of your other financial needs.

Youth Accounts: A First Step in Money Management

Teens spend billions of dollars in earnings each year on clothing, food and entertainment. Once they sample this newfound spending power it’s a good time to encourage them to open a youth checking account. Parents, do so when they’re still under your roof and you can guide the first efforts in basic money management.

Begin basic instruction before your teen even opens an account.

• Instill the habit of reconciling checking account transactions with monthly statements. Take your own receipts, such as ATM/debit card receipts or check stubs, and–with your teen–record transactions and calculate the balance in your own check register as you pay monthly bills. Then, when your teen’s first account statement comes, help your teen compare the balance in his or her register with that on the account statement. If figures don’t match work through the numbers together, double-checking the math and making sure to record all drafts, fees, deposits, withdrawals, and ATM or debit transactions.
• Make it clear that once your teen opens the account he or she cannot spend more money than is in the account. Explain the costly financial and legal consequences of having an overdraft on the account.
• Remind teens that checks and ATM/debit cards are stand-ins for money that must be kept in a secure place. That means they never should give a blank check to a buddy, lend out an ATM or debit card, divulge a personal identification number (PIN), or even be careless with deposit slips, which may reveal account information.

Once your teen gets the basics down and successfully manages a checking account, it’s on to other good financial habits–say, like acquiring and repaying that first car loan.

Visit any of our branches today to get your teen started with his or her own Youth Account.

5 Tips to Make Checkbook Balancing a Little Easier

Chances are pretty good that balancing your checkbook is not one of your favorite pastimes, but whether or not you enjoy making columns of numbers match, it’s something you must do.  Here are a few tips to make this important activity a little bit easier:

1. Record your transactions immediately after you make them.
2. Record exact numbers — do not round up or down. Small change adds up, but may not add up as much as your rounding makes it.
3. Distinguish between checks and debit card payments. Checks can take a while to clear and distinguishing between the two helps you understand why something might not be showing on your statement.
4. Record the right date and check number in your check register.
5. Balance your checkbook every month.

Find more helpful tips like this from our partners at On Your Way.

Save Time When You Automate Your Finances

These days, you can pay your mortgage or rent, utilities, insurance, loans, and credit cards every month without lifting a finger. Automation is a great time saver – and it can also reduce your vulnerability to identity theft – but it is important to use it wisely.

How it works

There are few different methods you can use to automate paying your bills.

The most convenient option is to use our free Online Bill Pay. You log into your checking account online, input who, how much, and when you want to pay, and we will send the payment for you. You can set up payments as one-time occurrences or set up recurring payments. This service can save you time by allowing you to pay all of your bills from one location instead of visiting multiple websites. It also provides a touch of extra security since you only have to enter your personal information on one site, instead of several different companies’ sites.

Another option is to set it up directly with your creditor or service provider – generally all you need to do is let them know when you want the payment taken out of your checking account and submit an authorization form. However, as we mentioned above, we recommend using our Online Bill Pay service to limit the times you have to input personal information, such as passwords and account numbers, online.

For some bills, you may also have the option of having the payment charged to your credit card. To avoid interest, don’t charge more to your card than what you can pay in full the next month. You can also use a third-party service to pay your bills. It generally does not make sense to shell out money for this if you can use one of the other two options, especially since our Online Bill Pay is free.

Avoid complications

Putting your bills on AutoPay does not mean that you can completely forget about them. First, you want to make sure that you have enough money in your account to cover the withdrawals. If your $1,200 mortgage payment is supposed to be deducted, but there is only $800 in your account, then either your account will become overdrawn when the debit occurs or the debit won’t occur and the bill won’t be paid. Either outcome can result in fees.

You also want to verify that the withdrawal actually occurred when it was supposed to. Mistakes sometimes happen, and you are still responsible for paying your bills on time even if someone else messed up. Don’t forget to review your statements too – if you don’t, you may miss an unauthorized charge or notice of a change in terms.

Lastly, if you close a checking account or credit card that you are paying bills from, be sure that you update your bill pay information so that future payments are assigned to your new account.

Automatically save

Don’t just AutoPay – AutoSave as well. If you wait and see what money you have left over at the end of the month, you may find that you have little or nothing there. There are typically two options for AutoSave: have a portion of your paycheck directly deposited into your savings account, or set up automatic transfers from your checking account to your savings account. If you choose the second option, it is best to schedule this to coincide with your payday. By automating, it will be easier to build toward your goals and establish an emergency fund.

Call us at 800-448-4096 to set up your Internet Account Access so you can take advantage of our Online Bill Pay service or if you’re interested in starting automatic transfers to your savings account.

10 Money-Making Ventures for Teens

Want to help your young adult earn some cash? Hand over this list for inspiration.

1. Get rid of clutter – sell what you don’t need or use anymore. 
2. Care for animals – walk Rover or feed Fluffy for vacationing neighbors. 
3. Have a special academic skill? Offer tutoring services to those who don’t. 
4. Get fit and make money – mow lawns, rake leaves, pull weeds, wash cars, etc. 
5. If you enjoy a craft, make up some unique designs and sell them at local craft fairs. 
6. Use your computer skills – create and maintain Web sites, help someone start a blog, solve technical problems, or teach basic programming. 
7. Shop for a job at the mall – many retailers offer deep discounts for employees, so apply to stores that you would shop in anyway. 
8. Like kids and the great outdoors? Work at a summer camp. 
9. Consider a newspaper route – you’ll have finished work before everyone else is starting breakfast. 
10. Intern for a company or organization that interests you. Paid or not, the experience can set you up for future income and opportunities within the business world.

When your teen begins to earn money, take the first step in teaching him to manage money responsibly by helping him open a Youth Account with us. Our Youth Accounts offer free savings and checking accounts, debit card, mobile banking and text alerts and more. Click here to learn more about this account designed just for teens ages 13-18.