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

New Article from Practical Money Matters: Put Your Tax Refund to Work

By Jason Alderman with Practical Money Matters

 Find the original article here courtesy of Visa, Inc.’s Practical Money Skills

If you’re among the millions of Americans expecting an income tax refund this year, you’ve probably already filed your 2011 return and are eagerly awaiting the money. But if you haven’t already mentally spent your refund on a guilty pleasure, here are several great ways to better put that money to work for you:

Pay down debt. Beefing up credit card and loan payments can significantly lower your long-term interest payments. Suppose you currently pay $120 a month toward a $3,000 credit card balance at 18 percent interest. At that pace it’ll take 32 months and $788 in interest to pay off, assuming no new purchases. By doubling your payment to $240 you’ll shave off 18 months and $441 in interest.

Start an emergency fund. To protect your family against the impact of a layoff or other unexpected financial crisis (e.g., medical emergency, major car repair, theft), set aside enough cash to cover six to nine months of living expenses. Seed the account with part of your refund and then set up automatic deductions from your paycheck or checking account.

Boost retirement savings. Beef up your 2012 IRA or 401(k) contribution, especially if your employer offers matching contributions; a 50 percent match corresponds to a 50 percent guaranteed rate of return – something you won’t likely find in any investment. 

Spend now to save later. Reap long-term savings on things you’ll eventually pay for anyway:

• Replace older appliances with energy-efficient models that will pay for themselves through lower utility bills. For example, replacing a 1980s refrigerator with an Energy Star model will save over $100 a year. The Energy Star website can help you find Energy Star products and estimate savings.
• Switching from traditional light bulbs to energy-efficient alternatives like CFLs and LEDs, while initially more expensive, can save about $6 per bulb in annual energy costs. Just make sure they are Energy Star-qualified models, which exceed minimum standards.
• Schedule routine car maintenance. According to AAA, simply changing your car’s air filter once a year can save over $270, while replacing older spark plugs can save $540 in wasted fuel.
• Ask whether your utility offers free or subsidized home energy audits. An audit will reveal which investments – such as increasing home insulation and replacing drafty windows and doors – will lower both winter and summer energy bills.

Finance education. Strengthen your career prospects and earnings potential by adding new skills through college courses or vocational training. Ask if your employer will help pay for job-related education. You can also set money aside for your children’s or grandchildren’s education by contributing to a 529 Qualified State Tuition Plan or Coverdell Education Savings Account. Bonus: Your contributions will grow tax-free until withdrawn.

Prepay bills. If you expect major expenses later this year (e.g., insurance premiums, orthodontia, college tuition), start setting money aside now so you won’t rack up interest charges later. Also, paying slightly more each month toward your mortgage principal can save thousands of dollars in interest over the life of the loan.

And finally, if you regularly receive large tax refunds, you’re probably having too much tax withheld from your paycheck – you’re essentially giving the government an interest-free loan. Ask your employer for a new W-4 form and recalculate your withholding allowance.

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 tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.

New Article from Practical Money Matters: Can Your Family Afford College?

By Jason Alderman with Practical Money Matters

Find the original article here courtesy of Visa, Inc.’s Practical Money Skills

I’m a firm believer that the more knowledge you acquire, the richer your life will be. But as college tuition and fees continue to skyrocket, students and parents increasingly are asking, “Is a degree really worth the cost?”

For many people it certainly is: On average, college graduates earn $550,000 more than high school grads over a lifetime, according to a Pew Research Center study. Not only that, the current unemployment rate among college grads is only half that of high school grads.

So, assuming your kid is interested in college, ask yourself, “How much can we afford to spend without digging ourselves into a hole?” Unless you started socking away money long ago or Junior can count on a full-ride scholarship, you’ll probably need to take out student (and parent) loans to pay for that degree.

Tread carefully so you’re not saddled with too much debt. Here are a few factors to remember:

Not all degrees are created equal. The average college graduate now carries roughly $25,000 in student loan debt, but many families rack up far more, especially if they have several children. Students should follow their passions – in education and in life – but remember, someone with a degree in engineering or computer sciences will probably garner much higher pay and more easily pay off loans than graduates in lower-paying fields like education.

In other words, don’t take on debt that will overwhelm your future ability to pay it off. To save money, many students start out at a community college then transfer to a four-year institution.

Calculate college’s true cost. As with buying a car, when tallying a college’s true cost there’s the sticker price – the stated full cost for tuition, fees, room and board, etc. – and there’s the net cost you’ll actually pay after subtracting grants, aid, work study and other adjustments that may apply.

Thanks to a new federal law, all post-secondary institutions must post a “net price” calculator to help families more accurately estimate the true costs of attending, based on the student’s individual situation. Colleges may either use the Department of Education’s basic calculator template or develop their own if they require additional information.

Although you won’t be able to do exact comparisons, the new calculators do provide a good starting point for estimating the true costs of various colleges. Indeed, some students find that because of financial incentives offered, such as grants, merit-based scholarships and low-income subsidies, they can actually afford schools they’d previously ruled out. Expensive private schools sometimes end up cheaper than comparable state schools.

Another good comparison tool is the Department of Education’s College Navigator, which lets you search for details about colleges throughout the U.S., including tuition and housing costs, majors and degrees offered and typical SAT scores of students attending. You can even build a list of schools for side-by-side comparisons.

Fill out a FAFSA. Even if you think your income’s too high to qualify for financial aid, you still should fill out the Free Application for Federal Student Aid (FAFSA), since it’s also required by virtually all institutions for access to federal student loans. Federal loans generally have more favorable interest rates and repayment terms than private loans so it’s best to exhaust those alternatives first.

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 tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.

Step Up Your Savings During Military Saves Week

Now, it’s more important than ever to establish an emergency savings fund.

Current economic events are making it harder to save, even for high-wage earners, self-employed professionals and business owners just one paycheck away from disaster. For those who struggled to save before, it may be even harder now.

“This year Military Saves Week 2012 has a theme: Set a Goal, Make a Plan, Save Automatically. The Military Saves campaign wants to put emphasis on the importance of automatic savings for service members and their families. Many short-term financial difficulties cans be linked to inadequate savings. If we can encourage service members and their families to set aside money each and every month into savings, this can help alleviate many of those challenges,” says Andia Dinesen, Military Saves Coordinator, Consumer Federation of America, Washington, D.C.

“The Department of Defense realizes the unique financial challenges that service members and their families face and is working year round with the Financial Readiness Campaign to combat those challenges. Military Saves is one of the main components of the DoD Financial Readiness Campaign. Mission readiness relies heavily on financial readiness and having the peace of mind that your money is there when needed can help service members keep their mind on the mission,” she adds.

Join thousands of other military members during Military Saves Week–February 19 through February 26, 2012–and step up your savings. Military Saves is part of the nationwide America Saves campaign that focuses on the way Americans save money. Military Saves encourages service members to evaluate their savings progress and take action to save more.

No matter your financial situation or how much you earn, you can save. Even the smallest amounts tucked away regularly will accumulate into a nice savings cushion.

Start now. Make the dream of saving a reality.

To join Military Saves, visit militarysaves.org. Registrants automatically will receive three electronic resources: the quarterly American Saver newsletter, the monthly Military Saves e-news, and monthly eWealth Coach tips.

Army Aviation Center Federal Credit Union is proud to support Military Saves. For our Fort Rucker, AL members, look for us at the Soldier Service Center, Bldg. 5700 on February 24, 2012 from 9:00 a.m. until 11:00 a.m. to see how we can help you meet your savings goals.

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

New Article from Practical Money Matters: Take ‘America Saves Week’ to heart

By Jason Alderman with Practical Money Matters

Find the original article here courtesy of Visa, Inc.’s Practical Money Skills

After four years of coping with a stagnant economy, probably the last thing you want to hear is how important it is to sock away money for a rainy day – you already know that. But hear me out, just in case.

Those who struggle with long-term unemployment or under-employment often simply don’t have spare cash available to save. Others, worn out by years of being frugal, just want to buy things again.

Even as we wait for economic recovery it’s still good to remember – or perhaps learn for the first time – why saving is so vital:

• You could lose your job or see your wages cut. Most financial experts recommend having at least six to nine months’ income saved for emergencies, but even $500 could help bail you out of a sticky situation.
• Medical care, retirement and college tuition far outpace inflation. In fact, the average college graduate now carries $25,000 in outstanding loans – debt that can’t be discharged through bankruptcy and has no statute of limitations.
• If you’re approaching or in retirement, your net worth has probably been hammered by plummeting home and retirement account values in recent years.
• If nothing else, you can teach your children good financial habits that will serve them well during hard times.

So where can you learn sound savings habits? One great resource is America Saves (www.americasaves.org), a national campaign sponsored by more than 1,000 non-profit, government and corporate organizations. Their goal is to encourage people from all income levels to save money and build personal wealth using their free financial tools, savings services, advice and other resources, including:

• A Personal Wealth Estimator that helps you calculate your current net worth and estimate your future net worth.
• Monthly Savings Messages from national financial experts on topics such as money management, investment basics, building wealth through home ownership, saving during tax time and getting out of debt.
• Tips for saving money on everything from groceries to utilities to insurance premiums.
• Links to numerous websites offering financial education materials.

Last year, more than 2,000 organizations, including non-profits, employers, government agencies, educational institutions and unions participated in the fifth annual America Saves Week, reaching millions of Americans – everything from local banks offering low-fee savings accounts and higher-rate CDs to new savers, to free tax preparation assistance and credit counseling, to worldwide Military Saves drives to encourage savings by military families.

This year’s America Saves Week, “Set a Goal, Make a Plan, Save Automatically,” is slated for February 19-26, 2012.

Here are some great ways to start saving that first $500:

• Direct deposit part or all of your federal tax refund into a savings account or savings bond.
• Avoid overdraft and late fees by regularly monitoring your bank and credit card accounts.
• Brown-bag it to work more often. If you saved $5 a week, you’d be half-way there.
• Kick bad habits. Smoking a pack of cigarettes a day might cost $2,000-plus a year.
• If you have low-deductible homeowners, renters or auto insurance, consider raising the deductible to $500 or $1,000. Many save 15 to 30 percent or more on their premiums.

Saving can be a tough habit to start, but once you’re hooked, you’ll never go back.

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 tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.

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.

New Article from Practical Money Matters: Talking Finances with Your Valentine

By Jason Alderman with Practical Money Matters

Find the original article here courtesy of Visa, Inc.’s Practical Money Skills

As you and your spouse celebrate Valentine’s Day over a candle-lit dinner, you may want to avoid romance-killing topics like, “Honey, let’s talk about our financial future.” But you really should have that conversation sooner rather than later to keep your relationship on a healthy footing.

Major life changes may require you to reassess how you manage the family finances. Unfortunately, many couples don’t make time to plan ahead and are later caught off guard around issues like having children, aging parents, planning for emergencies and changing career and retirement goals.

If you haven’t had a financial heart-to-heart lately and aren’t sure what to do next, here are a few suggestions:

Make a financial “date.” Even if you’re in complete agreement on money matters, the family “accountant” should keep his or her spouse in the loop – if nothing else, so they can easily take over in an emergency. Set up regular meetings to discuss bill payments, progress or setbacks regarding savings goals, budgeting for upcoming expenses, and strategies for coping with unforeseen expenses.

Don’t postpone uncomfortable discussions. Should one of you accidentally bounce a check or miss a payment, don’t wait until your next powwow to address it or try to hide the problem. You’ll only make matters worse and create an atmosphere of mistrust. Fess up and deal with the issue right away – you might even save yourself additional late fees or penalties.

Be united. When the news isn’t good – say your 401(k) balances tanked last quarter or one of you got laid off – communication is all the more important. Whether you need to temporarily tighten the budget or make a major life-altering decision like postponing retirement, talk it through and be prepared to compromise so neither party becomes the bad guy.

Reaffirm your goals. Couples often start out with one game plan but then life deals an unexpected hand and goals change. Touch base periodically on how you both feel about such major issues as family size, home ownership, career changes, financing college for your kids (or yourselves), financial risk appetite, when and where you’ll retire, and taking care of elderly parents.

Update legal documents. Make sure your legal and financial documents are up to date and reflect your current wishes, including wills, financial and medical powers of attorney, life insurance policies, retirement accounts, investment funds and any other accounts where beneficiaries or people who control your health or finances are named.

Follow your budget. Some of the worst marital disagreements occur when one or both parties sabotage the family budget. If you don’t already have a budget, many free tools are available. Check out the U.S. Treasury Department’s http://www.mymoney.gov, www.mint.com and Practical Money Skills for Life, a free personal financial management site run by Visa Inc. (www.practicalmoneyskills.com).    

Seek help. If you discover that you’ve gotten off track or need help realigning your financial goals, a number of outside resources are available:

• The NFCC can help you locate a free or low-cost credit counselor.
• You can find a financial planner or advisor through the Financial Planning Association (www.fpnet.org), the Certified Financial Planner Board of Standards (www.cfp.net), or the National Association of Personal Financial Advisors (www.napfa.org).

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 tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.

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!

PLAN (AND SAVE) FOR WHAT IS AHEAD IN 2012 from SmartAboutMoney.org

Original article courtesy of SmartAboutMoney.org

Every new year brings lots of changes and new expenses that can impact your budget. Many of them are surprises, but chances are you already know what a few of them will be. Instead of waiting until later in the year to save for them, or throw them on a credit card, plan ahead to make sure your big expenses don’t throw your finances out of whack.

Think About It

Although some big-ticket items, such as car repairs, are unexpected — which is why it is important to build an emergency fund — there are others you can predict:

• Friends and family: Will anyone close to you be getting married, having children, or reaching big milestones that you want to celebrate? If so, will these events require travel, and will you be asked to play a bigger role, such as hosting a shower or taking part in a wedding?
• Your own life: Will you be tying the knot, adding to your family, taking a much-needed vacation, or attending a class reunion? Do you have any big purchases planned, such as buying a new car or putting down money for a new home?
• Your children: Will your child be a senior in high school or heading off to college? Or will your adult son or daughter be tapping you for financial support or returning to the nest?

Start Estimating

Once you have an idea of your future events and purchases, start thinking about the price tags.

1. Make a list. Write down every big expense and estimate the costs for completing each. If you are unsure of the costs, start pricing things out by researching online.
2. Figure out your timeline. Estimate when you will be paying for the event, and determine how many weeks you have to save.
3. Start saving. Do the math to decide how much you need to set aside each week to reach your goal.

Make Savings Happen

If you start saving at the beginning of the year, you can avoid charging big purchases on a credit card at the last minute, and paying more in the long run. But finding money to save each week may be difficult.

Try making some of these adjustments in your life to help you jumpstart your savings, but also, be realistic. If you do not think you will be able to save enough for the purchase, don’t make it. Or, find ways to make it cheaper. Because, who wants to start a new year knowing they will be taking on more debt?

Common Financial Resolutions

Resolutions can be a powerful motivator to help you change your bad habits in the New Year, but the resolutions you think you should have aren’t always the best choice for your financial plan. Our partner, On Your Way, lists three of the most common resolutions, and considerations you should make before you commit to them:

• Spend less. It’s great to have the goal of lowered spending, but if you want to succeed then you need to be specific about what spending you want to reduce. You can start by deciding how much you want to cut your spending, but you should follow that decision with specified reductions in specific areas.
• Save more. Everyone wants to save more money, but for some the idea isn’t a good one. Every individual should dedicate some portion of their income to saving, but for those with a lot of high-interest debt, keeping your savings steady and dedicating more money to paying off debt might be a better choice.
• Pay down debt. Paying off debt is a good idea for many, but in some cases, increasing the rate at which you pay off your debt might be a bad idea. For example, if you focus only on paying off debt, but don’t reserve some funds for savings, then you could easily see your debt increase again after just one unexpected car repair or other emergency. Also, if you have low to no interest debt, then it can sometimes be better to focus on savings and making just minimum payments—especially if you get a tax write-off for some of the debt.

Financial decisions may seem simple on the surface, but often each one is tied to many layers of collateral effect that you should consider first. Pay attention to all the details of your resolutions and the domino effect that the decisions could have before you start holding yourself accountable.

Be sure to visit On Your Way to find more helpful tips on managing your finances and reaching your financial goals. When you log on to the site, you’ll also increase your chances to win rewards such as a Nintendo Wii or SpaFinder gift cards!