Each week the Iowa Bankers Association develops financial tips -- known as Tuesday Tips -- and makes them available to banks, consumers and media outlets. Iowa banks are welcome to use this information as content for newsletters, websites or articles in local newspapers. You can sign up to have "Tuesday Tips" delivered directly to your e-mail inbox each week. Contact the IBA's Tim Laehn to subscribe.

This Week's Edition:

10 Early Tax Filing Tips to Save Time and Money

January 24, 2012

Tax season has arrived. Although April 17*, this year's tax return filing deadline, may seem like a ways off, it's not too early to get started. You can easily cut down the number of hours you spend preparing your taxes by starting early and tackling your taxes in bite-size chunks. Here are 10 simple tips to save time, money and hassle down the road.

1. Create a system for organizing tax documents as they arrive.
There is nothing worse than sitting down to finally do your taxes and realizing that you can't find an important document. A little organization from the get-go is all you need to avoid that situation. Your system can be as simple as a large envelope or an accordion file. Just designate a specific spot, and make sure that everyone in the house knows about it.

2. Review your tax documents early.
As tax documents show up, don't just stuff them into your great new organization system. Take a moment to review each document as it arrives so you can correct any discrepancies well before you start preparing your return. If there is a mistake, getting a corrected form can take time, so don't wait until you are down to the wire on your filing deadline.

3. Gather your tax information now.
There's no reason to wait until the heat of the battle to start organizing the tax information you already have. Even before you receive a single tax document, here's how you can get a head start:

• Make a list of all your 2011 tax payments and tax refunds
• Gather all your receipts that have piled up throughout the year
• Comb through your credit card bills and checkbook to look for possible deductions
• Tally up charitable donations

4. Learn about changes that could impact your taxes.
Every year sees new tax changes. This year, for example, the Internal Revenue Service (IRS) announced personal exemptions and standard deductions will rise and tax brackets will widen due to inflation. Visit www.irs.gov to familiarize yourself with tax law changes so you can take advantage of every tax credit and deduction possible. On the website, you'll also find forms, publications, tips and answers to frequently asked questions.

5. Remember the number 17.
Check out IRS Publication 17, "Your Federal Income Tax" on the IRS website. It's a comprehensive collection of information for taxpayers highlighting everything you'll need to know when filing your return.

6. Decide whether you are going to prepare your own taxes or hire a pro.
There are many different options for filing your tax return. Give yourself time to weigh all the options and find the one that best suits your needs. If you think your tax return will be too complicated to prepare yourself and you hire a professional, make your appointment early. If you are going to do your taxes yourself, decide whether you are going to use tax software. If so, you can get ahead of the game by purchasing your tax software now. Tax software can help you find every deduction to which you are entitled and helps you avoid common mistakes, such as simple math errors.

7. Consider using Free File.
Using the IRS Free File, you can prepare and e-file your federal return for free. Participating software companies make their products available through the IRS. Some also support state tax returns. Visit www.irs.gov/freefile to review your options.

8. Get your tax forms now.
As IRS e-file has become the most common way to file a tax return in recent years, Uncle Sam is no longer automatically mailing paper tax forms to individual taxpayers. If you are still filing by mail, get the tax forms you will need now. You can find commonly used tax forms at your local library or post office. You can also download all tax forms at www.irs.gov. You can still have a copy mailed to you by calling the IRS at (800) 829-3676.

9. Review! Review! Review!
Don't rush. We all make mistakes when we rush. Mistakes will slow down the processing of your return. Be sure to double check all the Social Security Numbers and math calculations on your return, as these are the most common errors made by taxpayers.

10. Don't panic!
If you run into a problem, remember the IRS is available to help. Visit www.irs.gov or call toll-free (800) 829-1040.

* The 2012 tax return due date is April 17, instead of April 15, because April 15 is a Sunday and April 16 is the Emancipation Day holiday in the District of Columbia.

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Top 10 Scams of 2011

January 10, 2012

The Better Business Bureau (BBB) investigates thousands of scams every year, from the latest gimmicks to schemes as old as the hills. Recently, the BBB came out with the Top 10 Scams of 2011. They divided scams into nine major categories and picked the top scam in each. Then, they named the "Scam of the Year."

1. Top job scam. BBB sees lots of secret shopper schemes, work-from-home scams, and other phony job offers that are created to steal your identity. In the worst kind, emails, websites and online applications look professional and candidates are even interviewed for the job (usually over the phone) and then receive an offer. In order to start the job, however, the candidate has to fill out a "credit report" or provide bank information for direct deposit of their "paychecks." The online forms are nothing more than a way to capture sensitive personal data that can easily be used to steal your identity. And, of course, there is also no job.
2. Top sweepstakes and lottery scam. Sweepstakes and lottery scams come in all shapes and sizes, but the bottom line is almost always this: You've won a whole lot of money, and in order to claim it you have to send in a smaller amount of money. This year's top sweepstakes scam was undoubtedly the email claiming to be from Facebook founder Mark Zuckerberg announcing that the recipient was the winner of $1 million from the popular social networking site. These kinds of scams often use celebrities or other famous names to make their offer seem more genuine. If you aren't sure, don't click on the link.
3. Top social media/online dating scam. On the Internet, it's easy to pretend to be someone you are not. Plus, with so much information about you online, a scammer can sound like they know you. There are lots of ways to use social media for scams, but the one that stands out appeals to our natural curiosity -- and it sounds like it's coming from a friend. Viral videos claiming to show everything from grisly footage of Osama bin Laden's death to the latest celebrity hijinks have shown up on social media sites, often looking as if they have been shared by a friend. When you click on the link, you are prompted to "upgrade your Flash player," but the file you end up downloading contains a worm that logs into your social media account, sends similar messages to your friends, and searches for your personal data. The next time you see a sensational headline for the latest viral video, resist the urge to peek.
4. Top home improvement scam. Always near the top of BBB complaint data are home improvement contractors who often leave your home worse than they found it. They usually knock on your door with a story or a deal -- the roofer who can spot some missing shingles on your roof, the paver with some leftover asphalt who can give you a great deal on driveway resealing. The worst are those who move in after a natural disaster, taking advantage of desperate homeowners who need immediate help and may not be as suspicious as they would be under normal circumstances. A large percentage of BBB's Accredited Businesses are home contractors who want to make sure you know they are legitimate, trustworthy and dependable. Find one at www.bbb.org/search.
5. Top check cashing scam. Two legitimate companies -- Craig's List and Western Union -- are used for an inordinate amount of scamming these days, and especially check cashing scams. Here's how it works: Someone contacts you via a Craig's List posting, maybe for a legitimate reason like buying your old couch or perhaps through a scam like hiring you as a secret shopper. Either way, they send you a check for more than the amount they owe you, and they ask you to deposit it into your bank account and then send them the difference via Western Union. A deposited check takes a couple of days to clear, whereas wired money is gone instantly. When the original check bounces, you are out whatever money you wired -- and you're still stuck with the old couch.
6. Top phishing scam. "Phishing" is when you receive a suspicious phone call asking for personal information or an email that puts a virus on your computer to hunt for your data. It's almost impossible to avoid them if you have a telephone or an email account. But the most standout phishing scam this year disguised itself as official communication from the National Automated Clearing House Association (NACHA), which facilitates the secure transfer of billions of electronic transactions every year. The email claims one of your transactions did not go through, and it hopes you react quickly and click on the link before thinking it through. It may take you to a fake banking site to "verify" your account information, or it may download malware to infiltrate your computer.
7. Top identity theft scam. There are a million ways to steal someone's identity. One scam has gotten so prevalent that many hotels are posting warnings in their lobby. Here's how it works: You get a call in your hotel room in the middle of the night. It's the front desk clerk, very apologetic, saying their computer has crashed and they need to get your credit card number again, or they must have gotten the number wrong because the transaction won't go through, and could you please read the number back so they can fix the problem? Scammers are counting on you being too sleepy to catch on that the call isn't from the hotel at all, but from someone outside who knows the direct-dial numbers for the guest rooms. By the time morning rolls around and you are clear-headed, your credit card has been used on a major shopping spree.
8. Top financial scam. In challenging economic times, many people are looking for help to get out of debt or make their mortgage payments. Unfortunately, many scammers try to take advantage of desperate situations. Because the federal government announced or expanded several mortgage relief programs this year, all kinds of sound-alike websites have popped up to try to fool consumers into parting with their money. Some sound like a government agency or even part of BBB or other nonprofit consumer organizations. Most ask for an upfront fee to help you deal with your mortgage company or the government (services you could easily do yourself for free), and almost all leave you in more debt than when you started.
9. Top sales scam. Sales scams are as old as humanity, but the Internet has introduced a whole new way to rip people off. Penny auctions are popular because it seems like you can get something useful -- cameras, computers, etc. -- for way below retail. But you pay a small fee for each bid (usually $.50 to $1.00) and if you aren't the winner, you lose that bid money. Winners often are not even the top bidder, just the last bidder when time runs out. Although not all penny auction sites are scams, some are being investigated as online gambling. BBB recommends you treat them the same way you would legal gambling in a casino -- know exactly how the bidding works, set a limit for yourself and be prepared to walk away before you go over that limit.
10. Scam of the year. The 2011 scam of the year is the BBB phishing scam. Hundreds of thousands, perhaps millions, of people have gotten emails that very much look like an official notice from BBB. The subject line says something like "Complaint Against Your Business," and the instructions tell the recipient to either click on a link or open an attachment to get the details. If the recipient does either, a malicious virus is launched on their computer -- a virus that can steal banking information, passwords and other critical pieces of information needed for cyber-theft. BBB is working with security consultants and federal law enforcement to track down the source of these emails and has already shut down dozens of hijacked websites. Anyone who has opened an attachment or clicked on a link should run a complete system scan using reputable anti-virus software. If your computer is networked with others, all machines on the network should be scanned, as well.

BBB's new Scam Source (www.bbb.org/scam) is a comprehensive resource on scam investigations from BBBs around the country, with tips from BBB, law enforcement and others. You can sign up to receive our Scam Alerts by email, and you can also be a scam detective yourself by reporting scams you've discovered.

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Make a New Year's Resolution for Your Finances

December 27, 2011
As you're considering your New Year's resolutions for 2012, don't forget to think about your money. The New Year is a great time to assess your finances, gain control and stick to a new budget or saving plan. Taking control of your personal finances will allow you to save and prepare for unexpected expenses. Here are some tips to help you get started:

Get organized. Start 2012 by organizing your financial records and creating a plan to keep your bills and financial statements organized throughout the year.

• Consider treating yourself to a post-holiday gift of a financial organization system. Alphabetized file folders or filing systems specifically for financial organization are available in January as you begin to prepare for tax season.
• While you're getting organized, consider buying a shredder to keep your personal information safe from identity theft.

Create a budget. Track your income and expenses to see how much money you have coming in and how much you spend. If you have debt, establishing a budget will help you to pay down your debt while saving.

• Identify how you spend your money.
• Set realistic goals, especially if you plan to cut some of your expenses.
• Use computer software programs or basic budgeting worksheets to help create your budget. Include as much information as you can.
• Track your spending and review your budget often.

Lower your debt. Establish a plan to pay off debts while you save. By paying off -- or at least paying down -- high-interest credit cards, you'll save on interest charges that add up quickly over time.

• Make payments on time and, if possible, pay more than the minimum due.
• Pay off debt with higher interest rates first.
• Transfer high-rate debt to credit cards or other loan options with a lower interest rate. Talk with your banker about your options.

Save for the unexpected and beyond. Pay yourself first. Saving is important; it will likely help to ensure a comfortable future that can endure financial surprises.

• If you receive direct deposit at work, ask your employer to send a specific amount to your savings account. Because the money is put into an account before you have a chance to spend it, automatic savings plans are an easy and convenient way to save. If your employer doesn't offer direct deposit, many banks allow for automatic transfers from checking to savings accounts.
• Save at least 10 percent of your income for retirement. Enroll in a retirement plan or consider optimizing an established retirement plan. Contribute at least the maximum amount that your employer will match. Contributions made to these types of plans are tax deductible. If your employer does not offer a retirement savings plan, many banks offer Individual Retirement Accounts. IRAs offer tax-deferred growth, meaning you pay taxes on your investment gains when you make withdrawals.
• Financial advisors often recommend keeping about three months salary in a savings account in case of financial emergencies such as hospital bills or loss of job.

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Give the Gift of Future Financial Success

December 20, 2011

It's easy to get focused on spending rather than saving and investing during the holiday season. However, some of the best gifts you can give children and young adults are tools that set them up for future financial success. Use the following list, beginning with the youngest person on your shopping list, to help inspire a prosperous New Year.

1. A piggy bank. A simple place to store money, a piggy bank is a great teaching tool and the beginning step to help a child understand how to put money away toward a goal. When shopping for a piggy bank, experts recommend choosing a transparent model, ideally one the child can build and customize. It's helpful for the child to see the money grow over time as it gets closer to the top of the piggy bank.

2. A savings account. Help a child open his or her first savings account. Opening a savings account is one of life's financial milestones and can help a child begin to learn about the banking system, the benefit of earning interest and the importance of saving.

3. A prepaid gift card. As a child gets older and begins saving for games and other items, consider giving him or her a gift card that can be used anywhere without affecting credit. As a child enters the teens, he or she may face peer pressure to carry plastic, and a gift card can serve as a safe option: When there is no money left on the card, it can no longer be used. Although a prepaid card doesn't necessarily help a child prepare for a credit card because it doesn't involve payments, interest or a credit score, it can help him or her learn how to spend wisely and make his or her money count.

4. A checking account. A checking account provides a young person with crucial hands-on financial training. When opening an account for a young person, be sure to explain the importance of tracking your spending and balancing your account. Many banks offer teen checking accounts with the option of making the parent co-owner with full access to the account, much like a joint account.

5. Automatic transfer. Once a young person masters the mechanics of savings and checking account management, it may be time to introduce him or her to the gift of automatic transfer. Automatic transfer allows him or her to move money online from checking into savings, a money market account, CDs and individual retirement accounts on a scheduled basis. Automatic transfer gets young people into the habit of paying themselves first and setting long- and short-term goals. Even though today's young adults grew up online, making the mechanics of online banking largely instinctual, they still need guidance on how and why to save.

6. A credit card. Once a young person has demonstrated a responsible use of his or her savings and checking accounts and prepaid gift cards, he or she may be ready for a credit card. Teach your child the importance of good credit and the danger of taking on too much debt. If a child doesn't qualify for a credit card on his or her own, parents may co-sign for a card, making them equally responsible for the charges on the account, or they may add their child as an authorized user under their own credit card account, allowing their child access to their preset limits. Parents know their own child best; if you're not sure he or she is ready for plastic, tread carefully. You don't want to set your child up for credit score failure by giving him or her a card he or she can't manage effectively too early.

7. A 529 investment plan for college. Given the rapidly rising costs of a college education, the College Savings Iowa 529 Plan offers a convenient, tax-advantaged way to help a child afford college. Anyone -- parents, grandparents, friends and relatives -- can invest in College Savings Iowa on behalf of a child. You can give a child a jumpstart to pay for his or her college education while reaping tax advantages for yourself. To learn more about the program, visit www.collegesavingsiowa.com. Talk to your tax advisor for details on the program's tax benefits.

8. Stocks. Helping a young person invest small sums in companies he or she knows is a good way to show the ups and downs of how the stock market works. Consider scheduling a meeting with your financial planner to help your child begin purchasing stocks.

9. A retirement plan. It's never too early to start saving for retirement. Experts recommend that a young person should begin saving for retirement as soon as he or she has earned income. Consider opening a U.S. savings bond, CD or IRA in the young person's name, and explain the long-term benefit of beginning to save for retirement early. Talk about the advantages of participating in an employer's retirement savings plan -- especially if the employer offers to match a portion of the dollars he or she contributes.

10. An emergency fund. Starting an emergency fund is a perfect gift for young adults starting out on their own. Experts recommend saving enough cash to cover six to eight months of living expenses in case of the unexpected -- a job loss, illness or major auto repairs. Starting such a fund for a young adult on your list and explaining the importance of having money set aside for the unexpected will go a long way in preparing him or her for the future.

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Tips for Buying, Giving and Using Gift Cards

December 13, 2011

Gift cards are a great solution for those people on your holiday list for whom you don't know what to buy. With gift cards, one size fits all, and the recipients can get exactly what they want. But before you buy a stack of gift cards, consider these tips from the Federal Trade Commission to make sure you get the most for your money.

Buying gift cards

• Buy from sources you know and trust. Avoid buying gift cards from online auction sites because the cards may be counterfeit or may have been obtained fraudulently.
• Read the fine print before you buy. Is there a fee to buy the card? If you buy a card by phone or online, are there shipping and handling fees? If you don't like the terms and conditions, buy elsewhere.
• Find out whether any fees will be deducted from the card after you purchase it.
• Inspect the card before you buy it. Verify that none of the protective stickers have been removed. Make sure that the codes on the back of the card haven't been scratched off to reveal a PIN. Report any damaged cards to the store selling the cards.
• Give the recipient your original receipt so they can verify the card's purchase in case it is lost or stolen.
• Consider the financial condition of the retailer or restaurant providing the gift card. If you buy a card from a company that files for bankruptcy or goes out of business, the card may be worth less than you had anticipated.

Using gift cards

• Read the card's terms and conditions carefully. Check for an expiration date or fees.
• If it appears that the value of your card has expired or that fees have been deducted, contact the company that issued the card. They may still honor the card or reverse the fees.
• Use your card as soon as you can. It's not unusual to misplace gift cards or forget you have them; using them early will help you get the full value.
• Treat your card like cash. If your card is lost or stolen, report it to the issuer immediately. Most issuers have toll-free telephone numbers you can call to report a lost or stolen card. Some issuers will not replace cards that are lost or stolen and other issuers will for a fee. You may need to show proof of purchase and the ID number on the card.
  

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Tips for Safe Online Holiday Shopping

December 6, 2011

Over the last several years, retailers report a 25-30 percent increase in online spending around the holidays. With more and more people heading to the Internet to complete their holiday shopping, Iowa’s Department of Homeland Security and Emergency Management has offered an advisory for online holiday shopping. Follow these common best practices when shopping online this holiday season.

• Buy from known and reputable companies’ websites. This tip can reduce your risk of buying into a scam and also reduce your risk of identity theft.

• Pay attention in the “checkout.” When you're in the “checkout,” make sure the payment processing is transmitted over a secure connection. Look for things such as "https” in the web browser.

• Watch out for overly amazing deals. Sometimes there is such a thing as a deal too good to be true.

• Take your time. Hot deals, which pop up and have a limited timeframe to respond, are not deals at all. They are scams that solicit an emotional response and often are infected with malware.

• Know how you're connected. Are you shopping at home on your secure network, or are you in the local coffee shop’s hot spot? Unsecured networks should be avoided when using credit cards.

• Watch your emails, text messages and pop-ups. Retailers are going to push deals, which can open you up for malware and phishing attempts. If the email doesn't look legitimate, don't even open it; trash it.

• Pay attention to the details. Retail websites will never request your PIN when paying with a debit card, and no website should request your Social Security number.

• Track your packages and watch for delivery. Knowing when your package is expected to arrive is an important step in online shopping. If your order doesn't show up or isn't delivered as detailed in your tracking confirmation, call the retailer.

• Watch your accounts and credit cards closely. If your online order was compromised or your card information was stolen, chances are it will be used quickly. At the first sign of an unknown charge, call the credit card company o>r your bank.

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Give Wisely this Holiday Season

November 29, 2011

'Tis the season of giving. With rising operating costs, loss of government funding and an increasing demand for services, charities need donors' help now more than ever. Donating to your favorite cause can be fulfilling, but to ensure that your gift reaches the intended source, follow these tips:

• Give to an established charity. Unfortunately, there are fraudulent charities that will take advantage of your goodwill. A legitimate charity will give you information about its mission, how your donation will be used and proof that your contribution is tax deductible. Find a charity with a proven track record for providing aid.

• Ask questions. Some charities hire professional fundraisers to call or send mail solicitations, and the fundraisers collect fees from donations. Ask the caller if he or she is a volunteer or a professional fundraiser. Ask how much of your donation actually goes to the charity. If it's a charity and not a professional fundraiser, ask how much of your donation goes toward administrative expenses. If you don't get straight answers, that's a red flag.

• Ask phone solicitors to send written information. Check out the charity before you make a decision. Be suspicious if they insist on a pledge before they'll send you information. Check them out at the national Better Business Bureau "wise giving" site, www.give.org, or America's largest charity evaluator site, www.charitynavigator.org.

• Be proactive. Wise givers don't give on an impulse or to the first organization that comes along. Smart givers take time to identify the causes important to them. Contact a charitable organization to find out its mission and what type of aid and programs it offers. Work with charities that have targeted outcome for donations.

• Don't be fooled by a sympathetic name. Some operations use names that promise more than they deliver. Many causes clearly deserve generous public support, including veterans, law enforcement and fire fighters, but some marginal operations claim connections with such groups yet provide them with very little support. Contact your local police or fire department or veterans' organization to check out claims that a donation "will be used locally." If a charity's name sounds similar but not identical to a charity you're familiar with, contact the charity you know to check it out.

• Don't give your credit card or checking account numbers over the phone to someone you don't know. Resist high-pressure pitches to give now. Trust your instinct if something doesn't seem right.

• Consider giving your time. Volunteers are the foundation of many charitable organizations. If you can't afford to donate money, consider donating your time. Common volunteer duties include: stuffing envelopes, feeding animals, tutoring, building homes, serving as a museum docent, counseling those in crisis, selling tickets or answering phone calls.

• Take advantage of tax benefits. A donation to a qualified organization may entitle you to a charitable contribution deduction. Remember a contribution to a qualified charity is deductible only in the year in which it is paid, and all charities do not qualify for a charitable contribution deduction. Always ask for a receipt and save them for tax time.

• Bottom line: Give wisely! Giving to a known charity you're confident about is often the best option.

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Budget for the Holidays

November 22, 2011

Taking time to plan your budget before heading out this Black Friday -- or whenever you're planning to do your holiday shopping -- will help you have a happier and less stressful holiday season. Follow these tips to start the New Year off on the right foot.

• Review your receipts and bills from last year. This will give you an idea of the amount you actually spent and how long it took to pay for it all.
  
• Create a budget and stick to it. Set a dollar amount based on what you can afford this holiday season considering your current savings, income, other expenses and how much you spent last year. Be sure to include a $20 to $100 cushion for unexpected expenses.
  
• Make a list and check it twice. Experts agree that it helps to write down a list of all the people for whom you plan to shop before you hit the stores or turn on the computer. Next to each name write down what you want to buy for that person and how much you want to spend. If you exceed your budget, find ways to scale the gifts back.
  
• Shop for bargains. Once you have an idea of what you're looking for, take time to research the best deals. If you are purchasing a number of items from the same online retailer, buying all the items together can cut down on shipping costs.
  
• Curb impulse shopping and spending. Buy only what is on your list. If you've forgotten someone, add them to your holiday budget and, if necessary, adjust the amounts you spend on others so you keep the same total.
  
• Make a plan for other expenses. Give some thought to how much you'll be spending during the holiday season on things other than gifts. Be sure to include in your budget the following: postage for cards and presents that need to be shipped; wrapping paper, bows, greeting cards and other supplies; decorations; food and drink for holiday meals; and travel expenses.
  
• Use credit wisely. If you plan to use credit for your holiday shopping, take only the credit cards you will need and limit those to as few as possible. Be sure to check your credit card statements carefully for any unauthorized charges. Report such charges immediately to your financial institution or credit card company.
  
• Save your holiday receipts from this year. Either total your receipts daily or add them up two weeks before the actual holiday. Expenses add up fast during this busy season. Seeing your totals will provide you with a reality check as to how much more you can afford to spend.

Holding true to your budget during the busy holiday season is an excellent jumpstart to healthy year-long budgeting habits.

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Celebrate Thanksgiving by Creating a Budget

November 15, 2011

Don't let financial stress put a damper on your Thanksgiving holiday. One of the best ways to manage your money is to create and maintain a detailed budget. The key to a good budget is including as much information as you can so you can adequately prepare and plan. It's important to keep accurate records of your spending so you'll spot places where you can save money and know how much you can reasonably spend. Follow these steps and, before long, you may be surprised by how much you have to be thankful for!

• Figure your current income. The first step in creating a budget is to total all of your income, or money coming in. It's typically best to do this on a monthly basis. Include only your take-home pay (this is your salary minus taxes and deductions). Your income may also include tips, child support, investment income, etc.
• Track your monthly expenses. Next, you'll need to track your expenses, or money going out. Some of your bills will vary from month to month, so use a monthly average. For example, if your cell phone bill is $45 one month and $55 the next, estimate $50 per month. For annual bills, divide the yearly cost by 12 for a monthly figure.
• Know your limit. Rent or mortgage payments plus your credit obligations should not exceed 35 to 40 percent of your gross monthly income. The amount you owe on credit cards, car payment, student loans and other monthly payments should not exceed 10 to 15 percent of your take-home pay.
• Put it in writing. Tally up all your spending. Don't forget your daily coffee or snacks. Those can add up quickly!
• Do the math. The last step in creating your budget is to total all your expenses and subtract them from your total income.

Once you've done the math, find which of the following three scenarios best describes your financial situation, and review the tips that follow.

If your income and expenses are EQUAL...

• You might be living paycheck to paycheck. Cut expenses and develop a savings plan in case of emergencies or unexpected expenses.
• If your income and expenses equal each other, but only because you're using credit to survive and paying only minimums each month, you may need to talk to a debt counseling service to help you get back on the track to live within your means.

If you have MONEY LEFTOVER...

- Open a savings account at a bank.
- If you already have a savings account, consider setting up automatic transfers to your savings account or, if you have direct deposit, ask your employer to put a portion of your paycheck in your savings account automatically.
- Also investigate whether your employer offers a 401(k) or other employee matching savings plan. The contribution you make to this type of account is taken out of your paycheck before taxes.

If your total is NEGATIVE...

You can take charge of your finances and your life by setting financial goals, planning a budget and sticking to it.

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Tips for Avoiding Service Charges

November 8, 2011

Most service charges for your bank account can be easily avoided with a few easy tips:

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November 1, 2011

Don't Get Lured into a Phishing Scam

The American Bankers Association (ABA) has issued a new warning to highlight increases in phishing scams linked to consumer bank accounts. According to reports, perpetrators are using automated dialers, text messages or emails to misinform consumers that their accounts have been closed due to fraud. Consumers are then prompted to enter their card information, including expiration date and three-digit CV code on the back of the card, in order to reactivate their accounts. Those who respond to these inquires run the potential risk of having their information used to fraudulently purchase goods and services or to obtain credit.

Commonly in phishing scams, con artists claiming to be from a reputable company send out fake emails and other messages in hopes that consumers will respond with bank account information, credit card numbers, passwords or other sensitive information. These emails can look quite convincing, with company logos and banners copied from actual websites. They will often tell you that their security procedure has changed or that they need to update or validate your information, and then direct you to a look-alike website.

To avoid becoming a victim of a phishing scam, the ABA offers these tips:

• Never give out your personal financial information in response to an unsolicited phone call, fax or email, no matter how official it may seem.
• Do not respond to an email that may warn of dire consequences unless you validate your information immediately. Contact the company to confirm the email's validity using a telephone number or web address you know to be genuine.
• Check your credit card and bank account statements regularly and look for unauthorized transactions, even small ones. Some thieves hope small transactions will go unnoticed. Report discrepancies immediately.
• When submitting financial information online, look for the padlock or key icon at the bottom of your Internet browser. Also, many secure Internet addresses, though not all, use "https" to signify that your information is secure during transmission.
• Report suspicious activity to the Internet Crime Complaint Center at http://www.ic3.gov/.
• If you have responded to an email, contact your bank immediately so they can protect your account and your identity.
• For more information on phishing, visit the following:
  • Federal Deposit Insurance Corporation -- www.fdic.gov/consumers/consumer/news/cnwin0304/phishing.html
  • Federal Trade Commission -- www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt127.shtm
  • The Anti-Phishing Working Group -- www.antiphishing.org
  • The National Consumers League -- www.phishinginfo.org
  • The OCC Consumer Protection News -- www.occ.gov/Consumer/phishing.htm
  • The OCC Consumer Complaints and Assistance website -- www.occ.treas.gov/AntiFraudConsumer.htm#PhishingPharming
    

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October 25, 2011

A Checklist -- Are You Creditworthy?

Oct. 20 marked the ninth annual Get Smart About Credit (GSAC) Day. The GSAC program, sponsored by the American Bankers Association Education Foundation, is a national campaign of volunteer bankers who help young people develop responsible credit habits. In honor of GSAC Day and the thousands of young people across the nation reached with presentations about credit throughout the month of October, here is a checklist to test your creditworthiness.

• Have you opened a checking account and a savings account? Applications for most forms of credit will ask for both types of accounts. Demonstrating that you can save money and manage a checking account can improve your standing as a loan candidate.
• Have you opened an account in your name only? It is important to establish and maintain an individual credit history -- one separate from relatives, friends and even spouses.
• Do you use retail store and gasoline credit cards and pay them off on time? Cards for local department stores and gas stations are easy to obtain, but be careful not to over-extend yourself. Be sure you always pay your bills on time. Remember, your goal is to establish a positive credit history.
• Can you show some stability? Most potential creditors like to see that you have been in your residence for at least a year and that you have a consistent source of income.
• Have you applied for a secured major credit card? Your bank may be willing to give you a credit card if it is secured by a savings account. Your credit limit may be defined by how much you have in that account, and that account cannot be used for withdrawals. You may also be able to obtain a card if you demonstrate a few months of responsible use of a store or gasoline credit card.
• Have you applied for a standard, unsecured bank credit card or small loan if needed? If you have used credit responsibly and have established a positive credit history, you improve the likelihood that a lender will extend credit to you in the future.

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October 18, 2011

Online Safety Tips for National Cyber Security Awareness Month

October marks the eighth annual National Cyber Security Awareness Month, a national public awareness campaign that encourages consumers to protect their computers and personal information. The campaign is sponsored by the Department of Homeland Security in cooperation with the National Cyber Security Alliance (NCSA) and the Multi-State Information Sharing and Analysis Center.
Every Internet user has a role to play in securing cyberspace and ensuring the safety of themselves and their families online. Use the following tips from NCSA to do your part.

Keep a clean machine.

• Keep security software current. Having the latest security software, web browser and operating system are the best defenses against viruses, malware and other online threats.

• Automate software updates. Many software programs will automatically connect and update to defend against known risks. Turn on automatic updates if that's an available option.

• Protect all devices that connect to the Internet. Along with computers, smart phones, gaming systems and other web-enabled devices also need protection from viruses and malware.

• Plug and scan. External data storage devices, such as USB flash drives, can be infected by viruses and malware. Use security software to scan them.

Protect your personal information.

• Secure your accounts. Ask for protection beyond passwords. Many account providers now offer additional ways for you verify who you are before you conduct business on that site.

• Make passwords long and strong. Combine capital and lowercase letters with numbers and symbols to create a more secure password.

• Use separate passwords. Separate passwords for every account helps to thwart cybercriminals.

• Keep it safe. Everyone can forget a password. If you write it down, keep your password list stored in a safe, secure place away from your computer. If you store your password list in an electronic file or database, make sure it is encrypted.

• Own your online presence. When available, set the privacy and security settings on websites to your comfort level for information sharing. It's smart to limit who you share information with.

Connect with care.

• When in doubt, throw it out. Links in email, tweets, posts and online advertising are often the way cybercriminals compromise your computer. If it looks suspicious, even if you know the source, it's best to delete or, if appropriate, mark as junk email.

• Get savvy about Wi-Fi hotspots. Limit the type of business you conduct and adjust the security settings on your device to limit who can access your machine.

• Protect your money. When banking and shopping, check to be sure the site is security enabled. Look for web addresses with "https://" or "shttp://", which means the site takes extra measures to help secure your information. The "s" stands for secure.

Be web wise.

• Stay current. Keep pace with new ways to stay safe online. Check trusted websites for the latest information.

• Think before you act. Be wary of communication that implores you to act immediately, offers something that sounds too good to be true or asks for personal information.

• Back it up. Protect your valuable work, music, photos and other digital information by making an electronic copy and storing it safely.

Be a good online citizen.

• Do your part. What you do online has the potential to affect everyone -- at home, at work and around the world. Practicing good online habits benefits the global digital community.

• Apply the Golden Rule. Post only about others as you would have them post about you.
• Help the authorities fight cyber crime. Report stolen finances or identities and other cybercrime to the Internet Crime Complaint Center at www.ic3.gov, the Federal Trade Commission at http://www.onguardonline.gov/file-complaint.aspx (if it's fraud) and to your local law enforcement or state attorney general as appropriate.

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October 11, 2011

Identity Theft Prevention Tips for National Protect Your Identity Week

Oct. 16-22 is National Protect Your Identity Week. Identity theft is one of the fastest-growing types of financial fraud. Without stealing your wallet, a crook can steal your financial identity with as little information as your Social Security number. Use these tips to help avoid having your identity compromised:

• Protect your computer by installing up-to-date anti-virus and anti-spyware protection, using a firewall when you browse the Internet and encrypting and safeguarding portable devices and documents.
• Protect your personal information by opting for electronic delivery of your financial statements and other bills and shredding paper documents with personal information before disposing of them. Review your monthly accounts regularly for unauthorized charges.
• Create strong passwords and keep them in a safe place. Never share your passwords with anyone, avoid using easy-to-guess common words or your personal information, change your password every 90 days and use a different password for each online account you create.
• Avoid fraudulent websites and only use legitimate sources to contact financial institutions, such as an official website or the telephone number listed on statements and on the back of bank or credit cards. When conducting business online, make sure your browser's padlock key icon is active.
• Keep an eye out for any missing mail, particularly account statements and bills that do not arrive when expected. Report missing statements and bills to your financial services provider issuing them.
• Be wary of emails, phone calls or text messages that may look as though they come from a legitimate company like your bank or the IRS, asking you to update your personal information. This is called phishing, a technique used by identity thieves to steal your personal information. Scammers are increasingly using sophisticated technology that allows their number to appear as a legitimate business. Always verify that the sender of the message is legitimate. Do not return calls or text back with your personal information, and don't give out your Social Security number or other personal credit information to anyone who contacts you.
• Protect your information on social networking sites, and restrict who can access your pages using built-in privacy settings. It's important to avoid revealing the type of information an identity thief wants such as family names, pet names, travel plans, your home address, school, employers, etc.
• Order free copies of your credit report once a year from each of the three nationwide credit reporting agencies to ensure accuracy. Go to the Federal Trade Commission's authorized website www.annualcreditreport.com for your free credit report.
• Report any suspected fraud to your bank and the fraud units of the three nationwide credit reporting agencies immediately. The fraud unit numbers are:
  • Equifax: (800) 525-6285
    
  • Experian: (888) 397-3742
  • TransUnion: (800) 680-7289

October 4, 2011

Credit Dos and Dont's

Understanding the ins and outs of credit is easier said than done, but following some basic steps can get you on the path to success. Use this list of credit dos and don'ts to help you get started.

DO

• DO know the power of credit. Creditors look at your credit history as an indication of your future financial behavior. By using credit wisely, you can build a good credit history -- making it easier to get loans with low interest rates, rent an apartment, purchase a car or home, and may even help you get a job.

• DO read the fine print on credit applications. An application is a contract, so read it carefully before signing. Credit card companies are very competitive, so interest rates, credit limits, grace periods, annual fees, terms and conditions may vary.

• DO pay at least the minimum due on your bills and contact your creditor if you have trouble making payments. This will help you avoid late fees and a rising APR. To pay off your balance more quickly, pay more than the minimum due. If you are unable to make the minimum monthly payments, let your creditor know so they can work with you to create a more manageable payment plan.

• DO be wary of anyone who claims they can "fix" your credit report. No one can legally remove negative accurate information from your credit history. The only thing that can fix a credit report is time and a positive payment history.

• DO order a copy of your credit report annually. You have the right to know what is in your credit report. The Fair Credit Reporting Act requires each of the three major credit bureaus to provide you with a free copy of your credit report at your request each year. Your credit reflects upon you as a borrower and needs to be accurate. To get a free copy of your credit report, visit www.annualcreditreport.com.

DON'T

• DON'T spend more than you can afford. Credit is a loan and has to be repaid. It is your responsibility to manage your debts and to keep your commitment with lenders. Avoid reaching your credit limit or "maxing out" your cards.

• DON'T be late to pay your bills. Late payments can affect your credit rating and increase your balance. If you are unable to pay the minimum monthly payment, let your creditor know to see if adjustments can be made to your payment plan.

• DON'T ignore the warning signs of credit trouble. If you consistently pay only the minimum balance, pay late, use cash-advances to fund daily living expenses or transfer a lot of balances, you might be in the "credit" danger zone. Talk to a financial counseling organization to regain control of your finances.

• DON'T share your credit card number. Never give out credit card or personal information if you have not initiated the transaction. Be aware of identity theft and phishing scams that ask for credit card numbers. If you suspect that your identity has been compromised, file a complaint with the Federal Trade Commission by calling 1-877-ID-THEFT (1-877-438-4338), or visit www.ftc.gov/idtheft.

Editor's note: Get Smart About Credit Day is an annual event held in October where bankers visit local classrooms to share with students the "credit facts of life." The ninth annual event will be celebrated on Oct. 20, 2011. Since it was started by the ABA Education Foundation (ABAEF) in 2003, more than 18,000 bankers have reached 704,993 young people. For more information about Get Smart About Credit Day, visit the ABAEF's website.

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September 27, 2011

ATM Safety Tips

Automated teller machines, or ATMs, have made banking more convenient than ever before. With the touch of a few buttons, you can withdraw cash, make deposits and transfer funds virtually anywhere an ATM is located. But with that convenience comes a need for some extra safety precautions. Follow these tips to help keep yourself and your money safe.

• Keep your PIN a secret. Never write it down or share it with anyone -- not even family members.
• Be aware of your surroundings, particularly at night. Make sure the ATM is free of sight obstructions. If you observe suspicious persons or circumstances, do not use the machine.
• Have your ATM card ready and in your hand as you approach the ATM.
• Use your body to "shield" the ATM keyboard as you enter your PIN.
• Always take your receipts or transaction records with you.
• Do not count or visually display any money you received at the ATM. Immediately put your money into your pocket or purse and count it later.
• If you are using a drive-up ATM, be sure passenger windows are rolled up and all doors are locked. If you leave your car and walk to the ATM, lock your car.
• If an ATM looks suspicious -- for instance, if it has a discolored card reader or an unresponsive keypad -- use another machine.
• Regularly check your monthly statement for strange withdrawals, and contact your bank immediately if you notice something suspicious.

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September 13, 2011

Tackle Your Goal to Run a Small Business

It's football season. It's a time for storming the field and tackling goals. If your goal is to run your own business, don't let a lack of financing keep you out of the game. Consider these tips from the Federal Deposit Insurance Corporation (FDIC) about securing credit for your business.

• Have a game plan. Winning teams have a plan before they hit the field. You also should have a plan for your business before applying for a loan. A solid business plan increases your chances of securing credit. Your business plan should include these five elements: 1) a statement of your business purpose, 2) a list of the owners, 3) a description of your products or services, customers, market potential and competitors, 4) three years of financial statements and 5) references from potential clients and suppliers.
• Know your risks. Even the best players face the risk of an injury that could keep them out of the game. The best way to protect your business from a loss is to know the risks up front. Different types of loans come with different levels of risks. A bank loan backed by the Small Business Association (SBA) may help minimize risk by offering better interest rates and financing options, if you are eligible. Credit card and home equity loans may be more risky. Credit cards often come with higher rates that could cost you more in the long run. Home equity lines of credit put your home at risk if your business fails.
• Pace yourself. Teams that over extend themselves in the first quarter may run out of steam later in the game, which may ultimately cost them the win. Pace yourself accordingly when securing credit to ensure you can repay the full loan. Pick a loan term that works best for your business needs. Business loans generally come in three forms: 1) short-term loans that are typically used for ongoing expenses and repaid within three years, 2) intermediate-term loans that are usually for machinery, furniture, renovation or expansion purchases and repaid in five to seven years and 3) long-term loans that are commonly used for commercial mortgages or equipment purchases and repaid in 20 years or more.
• Learn from the professionals. Talk with the professionals at your local bank to learn more about your financing options. Whether or not you ultimately borrow from your bank, your banker can give you advice on your game plan and refer you to other valuable sources of information.

For more tips on small business lending, contact your local bank or visit www.fdic.gov/smallbusiness.

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September 6, 2011

Five End-of-Summer Financial Tips

Another summer is coming to an end. Now that the hottest days, family vacations and back-to-school rush are behind us, it's a great time to give some attention to your personal finances. Prepare for the coming months -- and the holidays on the horizon -- with these end-of-summer tips.

• Pay quarterly estimated taxes. If you're self-employed or you have extra income you haven't reported on your W-2, now's the time to check in and make sure you're paying both state and federal quarterly estimated income taxes so you don't get stuck with a big bill from Uncle Sam in April. The next quarterly payment is due Sept. 15, so don't put it off.
• Prepare for the cooler months. Although it may be hard to imagine with all the hot weather we've experienced this summer, staying warm gets expensive when winter hits. Many gas and electric utility companies offer "budget billing" plans that allow you to spread your heating costs over the year and avoid getting hit with a surprisingly large bill on a particularly cold month. Also, winterizing your home this fall will help conserve energy and save money.
• Start saving for the holidays. It may sound excessive to start thinking about the holidays in September, but Christmas is a little more than 100 days away. Now is a great time to start your holiday spending plan. For instance, if you plan to spend $300 on gifts, you should start saving $3 per day to get there. Stashing away cash in advance allows you to buy gifts for everyone on your list without taking on debt.
• De-clutter and donate. As summer winds down and you start spending more time inside, take a hard look at all the stuff you've been stockpiling. Sorting through clothes you no longer wear and electronics or household items you don't use can free up space and even make you a little cash. Put these items up for sale at a local consignment shop or donate them (by making a tax-deductible contribution).
• Teach children to save. When kids return to school, they often have a renewed sense of focus and determination. Also, schools across the country are making efforts to incorporate financial literacy curricula into classrooms. Take this opportunity to talk to your children about money and the importance of saving. Your efforts will be rewarded as your child develops an understanding of financial principles and positive financial habits, equipping them to successfully manage their money as an adult.

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August 30, 2011

Personal Finance 101: 10 Tips for College Students

As college students begin a new semester of classes, GPAs and test scores are probably on a lot of minds. Although those numbers are important, the value of credit scores and the importance of saving shouldn't be underestimated—especially since the habits set in college can have a great impact on an individual's financial future. Here are 10 tips designed to give students an edge on mastering personal finance.

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August 23, 2011

Mortgage Shopping Tips

Many Americans wanting to take advantage of record-low interest rates on mortgage loans are considering buying a home. Today, there are a growing number of obstacles for homebuyers, including a higher credit score standard and more restrictions on credit. Consumers should have a thorough understanding of the changing market when shopping for a mortgage. Here are some tips to help you find the right product.

• Be aware of first-time homebuyer programs. Call your banker or housing agency in your state, county and city to see what they offer. Sometimes these programs offer better interest rates and terms. The Iowa Finance Authority is a state government agency that offers a variety of programs for first-time buyers, repeat buyers, military personnel and veterans. For more information, visit www.iowafinanceauthority.gov.
• Get pre-approved. Know the difference between "pre-qualified" and "pre-approved." Getting pre-qualified is a casual process where the lender tells you how much you should be able to borrow based on how much money you make, how much debt you have and how much money you have to put down on a house. Pre-approval occurs only after you actually apply for the loan and the lender gives you in writing the amount you can borrow. A buyer who is pre-approved is more attractive to sellers and their agents than one who is only pre-qualified. Once you find a mortgage that is best for you, get pre-approved before you start making offers on a home.
• Be honest with the lender and yourself. You don't want to borrow more than you can afford. Your bank can provide a calculator to determine if you can afford to borrow and, if so, how much. The American Bankers Association also offers calculators at www.aba.com/aba/static/calculators.htm.
• Look at the basics of the loan. Don't get distracted by all the bells and whistles. Choose the type of loan that makes the most sense for you. Use financial calculators to determine if you should go with a fixed-rate mortgage or an adjustable-rate mortgage. Fixed-rate mortgages are typically a more secure option, especially given the current historic lows in interest rates.
• Know your credit situation. Obtain a copy of your credit report at least six months before you apply for a mortgage. This should give you enough time to challenge and remove any errors on your credit report and take care of anything that's hurting your credit. Federal law allows you to obtain free copies of your credit reports every 12 months by visiting the official website at www.annualcreditreport.com or by calling (877) 322-8228.
• Consider all the costs. A lender will review costs such as fees, closing costs, points, homeowner insurance and taxes and will provide you a formal disclosure, the “Good Faith Estimate,” of all closing costs known at the time of application. Lenders may not collect any fees from you, except the fee for obtaining your credit report, until after delivery of the “Good Faith Estimate.”  Once you indicate your desire to proceed with the loan application, a lender may require you to pay certain costs related to your loan request, such as appraisal fees, title opinion and abstracting charges, and flood determination fees. Consumers should also consider repairs and maintenance costs. As a homeowner, you are responsible for those additional costs—there won't be a landlord to call.
• Prepare your financial records before you proceed with your loan request. You are not required to provide lenders any verifying documents until after the lender provides you the “Good Faith Estimate” and you indicate your intent to proceed with the real estate loan.  Thereafter, while each bank may require different documentation to verify information you have provided on your application, at a minimum you will likely need:
  - Pay stubs;
  - Tax returns;
  - Financial statements (one that is less than 60 days old);
  - Copies of additional monthly payments such as car loans, credit cards, student loans, etc.; and
  - Any additional information (such as proof of additional income) that you think will help your banker evaluate your credit request.

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August 16, 2011

Financial Tips for Young Adults Starting Out on Their Own

With another school year just around the corner, students are preparing to head back to classes—and some may be leaving home for the first time. While everyone can benefit from learning about money management and taking a more hands-on approach with their finances, young adults—including those just starting college—have plenty to gain by learning to be smart about money, and a lot to lose by making uninformed decisions. Here are a few tips to help you get started:

• Create a budget. Start a personal finance plan that will make it easier to boost savings and control spending. Take a sharp look at how much you spend on optional purchases, such as restaurant food and entertainment, and instead put some of the money to work for your future by saving or investing it.
• Save now. Open a savings account and regularly add to it. Pay yourself first with a percentage of every dollar you earn going to savings. The sooner you begin saving, the easier it will be to reach your financial goals, which may include buying a home, owning a business or retiring. Consider opening a separate account to save for big-ticket purchases, such as a new TV or bicycle, instead of charging them on a credit card or paying the money back over a long time with a lot of interest.
• Limit easily accessible funds. Limit the amount of money in your wallet or purse and in your checking account so you're less likely to spend it. Only carry a credit card when you plan to use it. Also do your best to limit regular living expenses, such as food, transportation and utilities.
• Build a good credit record. As you pay your own bills and debts, you are building a credit history. In general, the better your credit history and credit score, the better your chances of borrowing money at lower interest rates. Your credit history may also be considered when you apply for a job, an insurance policy or an apartment. A good credit score will by particularly important when you decide to buy a house. Federal law allows you to obtain free copies of your credit reports every 12 months by visiting the official website at www.annualcreditreport.com or by calling (877) 322-8228. Review you credit reports carefully, and if you find errors or notice any suspicious activity, be sure to contact the credit reporting agency immediately.
• Keep important cards and numbers safe. Most experts suggest you carry in your wallet or purse only the plastic cards (ATM, debit, credit cards) you truly expect to use soon. Don't carry your Social Security card, and don't leave your birth certificate or documents with your Social Security number unprotected at home, at school or anywhere else.
• Stay safe online. Banking or conducting other personal business online can be a convenient way to handle your finances, but you need to take precautions. Install and automatically update antivirus software and firewall protection on your computer. Never give your Social Security number, credit or debit card numbers, personal identification numbers or any other confidential information in response to an unsolicited e-mail, text message or phone call, regardless of who the source supposedly is.

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August 9, 2011

Help Your Child Start a Beginner Budget

For people of all ages, the best way to reach a saving goal is to start with a budget. A budget helps you keep track of the money you have coming in and the money you have going out. A good way to start teaching children about budgeting is to help them divide their money into four clear jars labeled: SHARING, SPENDING, SHORT-TERM SAVING and LONG-TERM SAVING. The following guidelines will you and your child decide how much to put in each jar.

SHARING – 10 percent of income, or $1 for every $10
Is your child concerned about helping children or animals, protecting the environment or supporting a local food bank? If so, help your child choose a cause he or she is interested in and donate to it regularly. Remind your child how the charity will benefit from his or her generosity to make your child feel good about his or her decision to share.

SPENDING – 30 percent of income, or $3 for every $10
This money can be used at any time for small purchases, such as a baseball or CD. Provide your child guidelines on how he or she can spend this money, and then let your child make his or her own decisions.

SHORT-TERM SAVING – 30 percent of income, or $3 for every $10
If your child wants to make a larger purchase, such as a video game or an iPod, remind him or her that it may take several months to save enough money. Explain to your child that this jar will help him or her save for some cool stuff.

LONG-TERM SAVING – 30 percent of income, or $3 for every $10
This is where you'll help your child start saving for the future. Remind your child that someday he or she may want to go to college or buy a car and explain that these expenses require a lot of planning and saving.

Once your child's short-term saving and long-term saving money has started to add up, help him or her open a savings account at a local bank. Explain that the bank will make sure that the money is safe, and they'll even pay you with interest while it's there. Visit your local banker for help opening an account and learning more about other ways to save.

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August 2, 2011

10 Money-Saving Tips for Back-to-School Shopping

To your kids, shopping for new clothes, gear and school supplies may be the only good thing about going back to school, but that doesn't mean you have to spend a fortune every year. Start your back-to-school shopping with a game plan to save money and make your life easier. Here are 10 tips to help you get started.

1. Make a list. Use the list of recommended supplies from your child's school as a starting point. If you don't have a list yet, check with parents at your school who have older kids. Sit down with your child to go over the list together and organize items according to importance. You'll be teaching your child how to get organized, set priorities, manage money and start saving for items your budget won't allow. 
2. Reuse items from last year. Once your list is complete, take some time to search your home office for items you already have. If you dig deep enough in your closets, you may find plenty of school supplies left over from last year. Take an inventory of the supplies you have on hand and plan to reuse items that are still in good condition. Check those items off your list. 
   
3. Determine your budget. Decide how much you plan to spend for back-to-school shopping this year. As you do your shopping, keep a record of your purchases and be aware of how these purchases fit into your overall budget.
   
4. Shop during Iowa's Annual Sales Tax Holiday. Every year on the first Friday and Saturday of August (Aug. 5-6 this year), Iowa stores don't charge sales tax on select clothing and footwear with selling prices less than $100. If you're willing to fight the crowds, shopping those days is a great way to save some cash.
   
5. Stick to the list. Don't waste time and money on unlisted items. Also, hold off on buying trendier gear such as lunch boxes and pencil cases. Kids may love the extra supplies they see in the store, but once they start school and see that their friends are all using something else, those extras will probably go unused.
   
6. Comparison shop. Scour the weekly ads to find the best prices on supplies and back-to-school basics. Keep a list of these prices with you so you can easily compare prices and find the best value.
   
7. Shop end-of-summer sales. Kids wear some clothes, such as short-sleeve polo shirts, all year long, so hit the big summer sales and snap up discounted items that can be worn well into fall. 
   
8. Buy basics in bulk. Basic items such as paper, pencils, glue sticks and notebooks are often sold in bulk at discounted prices. Consider going in with a group of other parents to split the cost and divide up the items. Or, if you have items left over, set up a supply shelf or storage container at home that can be used all year to avoid late-night shopping trips to buy notebook paper when your child runs out. Plus, you'll know where to find unused items when it comes time to shop for supplies next year. 
   
9. Search for quality used items. You may be able to find great deals on clothing items, backpacks and other supplies at consignment stores or garage sales. Taking time to find quality used items can pay off when you find the items you need at a fraction of the price.
   
10. Involve your children in the process. Parents and mentors can use the back-to-school shopping experience as an opportunity to explain the difference between "wants" and "needs." For example, your child may want to purchase a box of pencils featuring his or her favorite cartoon character or superhero, but at $3 per package, the pencils are a luxury compared to a standard box of pencils that may cost $0.50. Discuss the difference between "wants" and "needs" and explain how this has an impact on your family's back-to-school shopping budget.

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July 26, 2011

Tips for Going Green to Save Some Green

Not only is going green good for the environment, it's also easy on your pocketbook. The U.S. Department of Energy provides the following tips to save money while being environmentally conscious.

• Installing a programmable thermostat to reduce energy usage when you're asleep or not at home can save you about $150 a year in energy costs. Also, changing your thermostat by just 1 degree saves $44-$73 a year.
• Shade trees can cut summer air conditioning needs by up to 50 percent and make buildings up to 20 degrees cooler in the summer.
• Switching from incandescent to compact fluorescent light bulbs can save $180-$300 a year.
• Turning the sleep functionality on your computer and monitor brings your computer's energy consumption down to about $20 per year. Consider turning off the monitor if you aren't going to use your computer for more than 20 minutes, and both the CPU and monitor if you're not going to use it for more than two hours.
• Take short showers instead of baths. Consider installing a low-flow shower head, which can save about $1.10 per shower.
• Consider investing in rechargeable batteries. Although the initial cost of rechargeable batteries is almost double that of Alkalines (when you include the charger), the break-even point is less than two years, after which the ownership cost for rechargeables is less than $0.25 a year.
• Drive sensibly. Aggressive driving (speeding, rapid acceleration and braking) wastes gasoline. In fact, each 5 mph you drive over 60 mph is like paying an additional $0.30 per gallon for gas.
• Plug home electronics, such as TVs and DVD players, into power strips and turn the power strips off when the equipment is not in use. (TVs and DVDs in standby mode still use several watts of power.)
• Lower the thermostat on your hot water heater to 120°F.
• Air dry dishes instead of using your dishwasher's drying cycle.
• Wash only full loads of dishes and clothes.
• Look for the ENERGY STAR label on home appliances and products. ENERGY STAR products meet strict efficiency guidelines set by the U.S. Department of Energy and the Environmental Protection Agency.
• Visit www.energysavers.gov for more energy-saving ideas.

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July 19, 2011

Safe Online Banking

Online banking makes managing money convenient for millions of American households. With a few clicks of a mouse, customers can check deposits and pay bills, saving time and giving them more control over their finances.

Banks use a combination of safeguards to protect your information, such as employee training, strict privacy policies, rigorous security standards, encryption of information and fraud detection programs and procedures. Customers, too, play an important role in protecting financial information. Here’s what you can do to enhance your online security:

• Use a strong password. Experts advise using a combination of letters and numbers and caution you not to use easily guessed passwords, such as birthdays or home addresses.
  
• Keep it to yourself. Don’t share your password or any personal information online with any person or company you do not know.
  
• Avoid fraudulent websites. To help ensure the website you have visited is authentic and secure, when conducting financial transactions online look for a lock icon on the browser’s status bar or a website URL that begins “https:” (the “s” stands for “secure”).
  
• Use anti-spyware. Install and periodically update virus protection software that detects and blocks “spyware”—programs that can give criminals access to your computer.
  
• Be wary of email. Do not share sensitive information via email. If you receive an unscheduled or unsolicited email claiming to be from your bank, proceed with caution. Check with your bank to make sure it’s legitimate. Remember, your bank, Internet Service Provider or other service providers will never ask for your passwords or account information.
  
• Monitor your account. Check your balances on line frequently to spot any fraudulent activity.
• Log off. Remember to sign off your bank’s secured area when you have finished online banking.

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July 12, 2011

Your Summer Financial Checklist

Use this checklist to make sure you're making the most of your money this summer and beyond.

• Review your existing accounts to make sure they still fit your needs. Also look at the features you use the most and the fees you're paying, then ask if you can do better. Start by going to your bank's website or speaking with a customer service representative.
• Sign up for automatic savings. Paying yourself first is one of the fundamental steps of building a strong financial future. When you get paid, put a portion in savings through direct deposit or automatic transfer. What you don't see, you don't miss!
• Reduce your interest expenses. Review your debt to make sure you are working toward eliminating it. Reducing or eliminating debt can boost your credit rating and improve your monthly cash flow. It's generally best to pay off debt with the highest interest rate first.
• Check your insurance levels. As life changes, so do insurance needs. Take some time to review your different insurance policies, such as health, life, disability, homeowners and auto, to make sure you have enough coverage to safeguard you and your family while at the same time not paying excessive premiums. Remember, some insurance gets more expensive as you age, so there's no reason to wait to review your options.
• Review your beneficiaries. Make sure the named beneficiaries on your 401(k), IRA and life insurance policy are up to date. Experts suggest reviewing your life insurance coverage and beneficiaries every year and after every major life event. That way you can be sure that the policy will provide adequate protection for your loved ones after you pass away.
• Consider your retirement savings. Experts recommend saving at least 10 percent of your income for retirement. If your work offers a retirement plan, such as a 401(k) or 403(b) plan that deducts money from your paycheck, join it. Most employers match up to $.50 on each dollar you contribute. The matched amount is free money!
• Check your credit reports. Check for errors or incomplete information that could prevent you from getting the best deals on credit cards, mortgages or other loans. You are entitled to one free copy of your credit report every 12 months from each of the three nationwide credit bureaus—Equifax, Experian and TransUnion. Although you can ask to receive copies from all three credit bureaus at the same time, you also can spread out your requests throughout the year to check for major changes or inconsistencies. To order your free reports, go to www.AnnualCreditReport.com or call (877) 322-8228.
  

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July 5, 2011

Keep Your Money Safe on Vacation

Whether you're looking forward to a summer vacation close to home, on the coast or across the pond, you've probably been busy planning all the details of your trip. But have you thought about ways you can keep your money safe while traveling?

Nothing can spoil a vacation faster than becoming the victim of a thief. Here are a few tips to help you protect your cash, cards and personal information during your travels.

Before you leave home:

• Spend some time cleaning out your wallet. Remove any unnecessary credit cards, debit cards and any other unnecessary items that could compromise your identity if lost or stolen – especially anything that includes your Social Security number. Leave your checkbook at home.
• For the cards you are bringing with you, be sure to check the expiration dates to make sure they aren't set to expire while you're traveling.
• Make copies of your driver's license, credit cards, airline tickets and passport before your departure. If your cards are lost and stolen, it will be easier to report them. Keep the copies with you in a safe place separate from your wallet or purse, or you may prefer to leave the information with a trusted relative or friend that you can call if needed.
• Inform your credit card company of your travel plans so they aren't suspicious of purchases made in new locations.

While on the go:

• Never leave money or other valuables in your hotel room or rental car. Whenever possible, use a hotel safe.
• When you must carry cash, only carry the amount that you'll need for the day. Leave the rest in your hotel safe. You may want to wear a money belt securely beneath your clothing to carry extra money, credit cards or other important documents.
• Don't keep all of your money and valuables in a single place, like a purse or wallet. And never carry a wallet in your back pocket.
• Keep your money out of site. Don't count it in public.
• If you plan to use an ATM, use one located inside a store, hotel or airport rather than one on a street corner.
• Contact your card issuer immediately if your credit card or debit card is lost or stolen.

When you return from your vacation, review your credit card and bank statements as soon as possible. Don't wait for your monthly statements to arrive. If you notice any suspicious activity, you'll want to alert your bank and credit card companies as soon as possible.

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June 28, 2011

Tips for Managing Your Mortgage

For many Americans who have a mortgage, their house is their primary investment. And just as a home requires routine inspection and maintenance, so does a home mortgage. The Federal Deposit Insurance Corp. (FDIC) provides the following suggestions to manage a mortgage and protect your investment in good times and bad.

For anyone with a mortgage...

Stick to a system for making your mortgage payments on time. Failing to keep current with your payments can be costly in terms of late fees and lower credit scores, which could translate into higher costs when you go to borrow money or purchase insurance. The easiest solution may be to set up an automatic payment plan, in which you give your mortgage lender the authority to deduct your monthly payment from your bank account on a specific day of the month. Or, you can use your bank's online bill pay services to automatically forward routine payments to your mortgage lender. Either way, you can rest assured your mortgage payment will be made on time without you having to remember to do something.

Save receipts; save money on taxes. You may qualify for tax deductions for certain home improvements, such as energy-efficient windows and appliances, or various costs associated with a home sale, a mortgage refinancing or converting a primary home into an investment property.

Build a rainy-day fund. The idea is to have savings you can tap, if necessary, to make as many as six mortgage payments plus your property tax payments when times are tough.

If you're struggling to pay your mortgage...

At the first sign of trouble, ask your lender for help. If you find yourself about to fall behind on your mortgage payment, perhaps the most important thing you can do is to talk to your lender when there's still time to turn things around with your lender's help. Your mortgage lender has as much interest as you do in finding an early solution.

Call the Iowa Mortgage Help Hotline at (877) 622-4866. This state-sponsored mortgage counseling resource provides trusted assistance for Iowans who fear they may not be able to make their mortgage payment. For more information about this free resource, visit www.IowaMortgageHelp.com.

Be on guard against loan modification scams. For guidance, see the FDIC's foreclosure prevention toolkit at www.fdic.gov/consumers/loans/prevention/toolkit.html. In addition, NeighborWorks America has launched a public education campaign at www.loanscamalert.org.

If paying your mortgage hasn't been a problem...

Consider paying off your loan faster. While you may be able to lower your total borrowing cost by refinancing your mortgage at a lower interest rate or switching to a shorter term (for example, from a 30-year to a 15-year mortgage), refinancing can be tougher to do in a "down" real estate market.

However, you have other ways to save money on your existing mortgage, without refinancing. Ask your lender about simple ways to pay off your mortgage faster. By adding a little more money to your monthly payment or sending all or part of your payment in sooner than you're scheduled to, you can repay your loan faster and cut your total interest costs by thousands of dollars over the life of the loan.

Voluntary options for gradually accelerating the payoff of your loan may include increasing your payment each month or sending in an additional mortgage payment each year (13 instead of 12), but be sure to note that the extra payment is to be applied toward principal. Or ask your lender if it offers a bi-weekly or other payment program that would accelerate repayment of your loan, preferably with no fee.

For more tips from the federal government, visit www.mymoney.gov and click on "Dealing with Mortgages."

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June 21, 2011

Ideas for Affordable Summer Fun

It’s official: As of June 21, summer has arrived. Summer fun doesn’t have to cost a fortune, and often the simplest things bring the most pleasure. Here are some ideas for you and your family to consider this summer.

• Look for local events. From concerts to festivals, there are many ways to have fun without going great distances for it. Keep an eye out for ads, and check your local newspaper often for events in your own town and surrounding areas. Local attractions may include county fairs, museums, parks, zoos, historical sites, drive-in movie theaters and special events at local libraries.
• Have fun with food. A cookout is a great way to enjoy a summer evening. Eating a meal outside on a porch or in your yard can feel like a great adventure for a child. You can also take a picnic to a park, organize yard games or relays, make homemade ice cream for dessert or even eat watermelon and have a seed-spitting contest.
• Explore the outdoors. From firefly-catching to star-gazing, your own backyard can be a great place for children to explore and have fun. If you’re feeling especially adventurous, pitch a tent in your backyard and camp together. Other enjoyable and inexpensive activities include fishing, exploring hiking trails, visiting a state park or going on a family bike ride.
• Visit local farms and orchards. Picking your own fruits and veggies is a great way to have local family fun, and it’s probably the freshest, most affordable produce you’ll get all year. If you have a nearby farmer’s market, take advantage of all it has to offer for the whole family.
• Do a home project. Summer is a great time for home fix-up projects, and your kids can help out. Adapt an old tool belt to fit your child and, depending on his or her age, provide plastic or mini tools. Then ask your assistant to help by handing you tools, doing light sanding, polishing surfaces with a rag and picking up spilled screws or tools.
• Get wet. A true crowd pleaser for most families on hot summer days is to go for a swim. Visit a community pool, water park or nearby lake. Other ideas you can use at home include having a water balloon toss, splashing in the sprinkler or washing the car together—expecting to get soaked.
• Spend time together. As you ponder the various ways to have fun this summer, don’t overlook the impact of just being together as a family. Designate a time each week for family activities such as a board game night or a movie night. Build a fort together, learn a new craft or hobby or have a family-only slumber party in your living room.

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June 14, 2011

Protect the Elderly from Financial Abuse

June 15 is World Elder Abuse Awareness Day. Elder financial abuse, a crime that deprives elderly people of their resources and ultimately their independence and their health, is a growing crime in America. In honor of World Elder Abuse Awareness day, consider these tips to protect yourself or someone you love from elder financial abuse.

• Plan ahead to protect your assets and to ensure your wishes are followed. Talk to someone at your financial institution, an attorney or financial advisor about the best options for you.
• Never give personal information to anyone who phones you.
• Never pay a fee or taxes to collect sweepstakes or lottery "winnings."
• Never rush into a financial decision. Ask for details in writing and get a second opinion.
• Consult with a financial advisor or attorney before signing any document you don't understand.
• Get to know your banker and build a relationship with the people who handle your finances. They can look out for any suspicious activity related to your account.
• Check references and credentials before hiring anyone. Don't allow workers to have access to information about your finances.
• Pay with checks and credit cards instead of cash to keep a paper trail
• Feel free to say "no." After all, it's your money.
• You have the right not to be threatened or intimidated. If you think someone close to you is trying to take control of your finances, call your local Adult Protective Services or tell someone at your bank.
• Trust your instincts. Exploiters and abusers often are very skilled. They can be charming and forceful in their effort to convince you to give up control of your finances. Don't be fooled—if something doesn't feel right, it may not be right. If it sounds too good to be true, it probably is.
  

What to do if you are a victim of financial abuse

• Talk to a trusted family member who has your best interests at heart, or to your clergy.
• Talk to your attorney, doctor or an officer at your bank.
• Contact Adult Protective Services in your state or your local police for help.
  

What to do if you suspect financial abuse

• Talk to elderly friends or loved ones if you see a change in a person's established financial patterns. Try to determine what specifically is happening with their financial situation, such as a new person "helping" them with money management, or a relative using cards or credit without their permission.
• Report the elder financial abuse to their bank, and enlist their banker's help to stop it and prevent its recurrence.
• Contact Adult Protective Services in your town or state for help.
• Report all instances of elder financial abuse to your local police—if fraud is involved, they should investigate.

For more information, visit the National Committee to Prevent Elder Abuse's website at www.preventelderabuse.org and click on "Financial Abuse." 

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June 7, 2011

Plan Your Summer Vacation on a Budget

As the school year ends and the heat and humidity continue to rise, many Iowans are gearing up for this summer’s family vacation. Mountains or beach, on the road or in the air, there are steps you can take to save money this summer. So before you book your family’s tickets, consider these tips to help you travel on a budget.

• Plan ahead. Many deal-seekers mistakenly believe the best discounts are offered at the last minute. While some hotels and airlines do offer last-minute travel deals, they aren’t guaranteed. You’re much better off to begin tracking airline, rental car and hotel websites early so you can confidently book them when prices are low.

• Fly frugally. Not only should you compare airlines and departure cities to find the best ticket prices, but you should also consider additional fees. Pack lightly and use carry-on luggage to minimize the number of bags you have to check, as each checked bag will add to the cost of flying. Avoid buying food and other items at the airport, as prices are generally higher. If possible, eat before heading to the airport.

• Be flexible with your itinerary. Experiment with travel dates and times to find the least expensive combination. Did you know—for instance—that it’s typically less expensive to fly on Wednesdays than Fridays? Remember that hotels are likely to fill up quicker and charge higher rates during special occasions such as business conventions or popular sporting events. If you’re mainly planning to sightsee, avoid dates when major events are happening at your destination.

• Use travel websites. Many travel websites offer discounts on vacation packages. However, you’re not guaranteed the lowest prices, and if you only need a hotel or plane tickets and not an entire package, you may be better off buying them directly. It always pays to shop around.

• Look for continental breakfasts and other freebies. A good portion of everyone’s travel budget goes to food. When booking a hotel, opt for one that offers a free continental breakfast and other incentives. Paying for one less meal per day can add up over the course of a week.

• Pack coupons and food. As food prices rise, so does the cost of eating out. Many eateries—even high-end ones—are stepping up promotions to keep business flowing. Take advantage of special deals offered in newspapers and on coupon websites and incorporate them into your travel plans. If possible, pack your own food or shop at a grocery store when you arrive to save money by preparing some of your own meals.

• Tune up your car. If you’ll be taking to the open road this summer, the easiest way to save money is to save gas. Before you leave town, have your car tuned up and make sure your tires are properly inflated. While traveling, drive sensibly and observe the speed limit. Taking these steps will help you get more miles per gallon. Also, some websites offer a free app that you can download to your smart phone to find the lowest pump prices in your area.

These tips are provided by the Iowa Bankers Association (IBA), representing banks and thrifts in the state. The IBA serves it members by providing legislative advocacy, training, regulatory compliance and other services designed to enhance the ability of banks to serve their communities. Learn more at www.iowabankers.com.

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May 31, 2011

Tips to teach your children about money

As another school year comes to a close, the summer months provide a perfect opportunity for parents to proactively help their children establish a solid financial foundation.  Each day presents all kinds of opportunities to talk with your children about spending money wisely and saving for financial goals.  Parents can seize the teachable moments and turn them into financial lessons that make a lasting impact.  Here are a few age-appropriate suggestions to help you teach your children about money.

Ages 3-5:  Begin teaching your child the value of coins during their preschool years. Talk about the difference between a penny, a nickel and a dime.  Show them a $1 bill and start showing them how you use money to purchase items.  Give your child a chance to put money in a vending machine to help them understand the value of money.

Ages 6-9:  Consider giving your children an allowance – even if it is just a few dollars each week – so they can to make decisions of how to spend, save and give.  You may want to set a rule that requires at least some portion of the money to be saved each week.  If you haven’t already, take your child to your local bank and open a savings account.  Then talk to your child about setting financial goals, such as saving money to buy a new toy.  Encourage your child to save money to achieve his or her goal.  On shopping trips, stress the difference between wants versus needs with practical examples. Explain that a bag of cookies is a “want” while a loaf of bread is a “need.”

Ages 10-13:  Teach your children about compound interest, and get them excited about how their money can grow when they save and invest!  Consider increasing their allowance while also giving them more financial responsibility, such as allowing them to buy their own clothes.  Continue to encourage your child to establish financial goals, such as saving for a new bicycle or saving for college.  You may choose to offer additional opportunities for your child to earn extra money by doing special chores or projects.  Get your children involved in family meetings to talk about family finances.  Establish a family savings goal, such as a summer vacation, and engage your children in tracking your progress toward the goal. 

Ages 14-18:  Sit down with your teenager and establish a basic budget that includes any income from his or her allowance or part-time jobs as well as monthly expenses, such as clothing, entertainment, cell phone, gas, etc.  If you give your teenager a weekly allowance, you may want to consider changing to every other week or monthly to simulate a “real world” paycheck.  Take your teenager to the bank and open a checking account.  Be sure to teach your teen how to balance the account and review the monthly statements.  Encourage your teen to save receipts to compare with the statements each month.  Above all, keep in mind that it’s better for your child to make small mistakes while living under your roof than make big mistakes when they’re out on their own. 

Your efforts as a parent will be rewarded as your child develops an understanding of basic financial principles along with positive financial habits.  And with a solid financial foundation, your child will be well equipped to successfully manage their money as an adult.

These tips are provided by the Iowa Bankers Association (IBA), representing banks and thrifts in the state.  The IBA serves it members by providing legislative advocacy, training, regulatory compliance and other services designed to enhance the ability of banks to serve their communities.  Learn more at www.iowabankers.com.

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May 24, 2011

Ways to Save this Memorial Day Weekend

Memorial Day weekend offers a time for families and friends to gather together to enjoy each other’s company and to honor those who are serving and have served our country. Whether you’re traveling this weekend or hosting a cookout in your own backyard, here are some ways to save this Memorial Day weekend.

Traveling tips
If you’re going out of town, you’re probably already adding up the amount you’ll be spending on gas. Although gas prices remain high, follow these tips from the U.S. Department of Energy to get better gas mileage.

• Have a tune-up. Fixing a car that is noticeably out of tune can improve its gas mileage by an average of 4 percent.
• Keep tires properly inflated. Keeping your tires inflated to the proper pressure can improve your gas mileage by up to 3.3 percent.
• Drive sensibly. Aggressive driving wastes gas. It can lower your gas mileage by 33 percent at highway speeds and by 5 percent around town.
• Observe the speed limit. Gas mileage usually decreases rapidly at speeds above 60 miles per hour (mph). You can assume that for every 5 mph you drive over 60 mph, you pay roughly an additional $.24 per gallon for gas.
• Remove excess weight. Avoid keeping unnecessary items in your vehicle, especially heavy ones. An extra 100 pounds could reduce your miles per gallon by up to 2 percent.
• Avoid excessive idling. Idling gets 0 miles per gallon. Cars with larger engines typically waste more gas at idle than cars with smaller engines.
• Use cruise control. Using cruise control on the highway helps you maintain a constant speed and, in most cases, will save gas.
• Use overdrive gears. When you use overdrive gearing, your car’s engine speed goes down. This saves gas and reduces engine wear.

Hosting tips
If you’re staying home this Memorial Day weekend, a cookout can be a great way to host a lot of people without breaking your budget. Here are some money-saving suggestions.

• Shop early. Buy nonperishable items that are on sale in advance. These items include paper plates, cups, plastic silverware and frozen goods.
• Watch for coupons. Check your local paper, in your mail and e-mail and online for the best buys on the items you’ll need.
• Keep it simple. Hot dogs, hamburgers, chicken, corn on the cob and baked potatoes are all favorite cookout items and aren’t that expensive. Or, ask your guest to bring their own meat to throw on the grill.
• Split the cost. If a large group of people will be attending, assign items for each of them to bring as a contribution to the meal.
• Do it yourself. Consider making your own iced tea, potato salad or fruit salad rather than buying them already made at the store.

These tips are provided by the Iowa Bankers Association (IBA), representing banks and thrifts in the state.  The IBA serves it members by providing legislative advocacy, training, regulatory compliance and other services designed to enhance the ability of banks to serve their communities.  Learn more at www.iowabankers.com.

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May 17, 2011

Protect Your Identity While Traveling

After another long Iowa winter, the arrival of warmer weather probably has many of us dreaming of relaxing on the beach or enjoying some other type of sunny summer vacation. But nothing can make a warm vacation go cold quite like getting your identity stolen. As you make your summer travel plans, take into consideration these tips on protecting your identity while traveling.

Before you leave

• Go through your wallet, purse and/or briefcase, remove any of the following items and place them in a locked safe or safety deposit box at your local bank:
• Social Security card
• Checkbook and deposit slips
• Birth certificate
• Credit card receipts
• Library card
• Video rental card
• Bills
• Extra credit cards
• Minimize the number of credit and debit cards in your wallet or purse.
• Write down all the phone numbers from the back of your credit and debit cards and keep them somewhere other than your wallet or purse.
• Provide your bank with up-to-date contact information, including your cell phone number.
• If you are leaving country, advise your bank of your plans so they won’t be alarmed when they see transactions taking place in another country and will be able to better assist you if you need help from overseas.
• Pay bills before you go out of town.
• Place mail on “postal hold” with the Post Office. Arrange so mail may only be picked up by you, and request that identification must be show to receive held mail.
• Stop delivery of newspapers or any other items you normally have delivered.
• Make copies of your itinerary, passport data page, visas and driver’s license to leave with a designated emergency contact.
• Notify a trusted neighbor to watch your house.

During your travel

• Lock up all your valuables (jewelry, laptops, passports and any other important documents) in a room safe or hotel safe while you are out of the room.
• Heighten your awareness of people and crowds around you—pickpockets thrive in most major cities.
• Avoid ATMs that appear to have been tampered with.
• Cover the PIN pad when using ATMs. This will make it difficult for criminals to capture your PIN visually or with a camera.
• Be aware of your surroundings at all times—“shoulder surfing” is a viable method of obtaining personal information when you least suspect it.

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May 10, 2011

How to Stay Safe on Social Networking Sites

Social networking has caused one of the most fundamental shifts in how we communicate since the invention of e-mail. Social networking sites are a popular way to keep in touch with friends and family by sharing pictures, video clips and other information. Many people are also turning to social networking sites for professional and career advancement purposes.

But computer hackers also use social networking sites to install malicious software on network members’ computers, smartphones and other devices. According to the Federal Deposit Insurance Corp. (FDIC), certain links, when clicked on, can download spyware on your computer that can be used to access your online bank account.

To avoid problems, be careful about information you disclose on social networking sites, learn how to limit access to your personal information with your privacy settings and be careful when clicking on videos, pictures and links.

The Internet Crime Complaint Center (IC3) offers these tips for staying safe on social networking websites:

1. Adjust website privacy settings. Some social networking sites have provided useful options to assist in adjusting these settings to help protect your identity.

2. Be selective of your friends. Once selected, your “friends” can access any information marked as “viewable by all friends.”

3. Use “limited profile access” setting if available. This setting is for those with whom you feel uncomfortable sharing personal information.

4. Turn off extra options. Consider how you want to use the social networking site. If it is only to keep in touch with people, it makes sense to turn off extra options that will not be used.

5. Be careful what you click on. Just because someone you know posts a link or video doesn’t necessarily mean it is safe. Infected users are often unknowingly spreading malware by having infected websites posted on their webpage without their knowledge. Friends are then more apt to click on these links since they appear to be endorsed by their contacts.

6. Familiarize yourself with the website’s policies and procedures. Each social networking site may have different procedures on how to handle a hijacked or infected account. Reference their help or FAQ page for instructions.

If you suspect your account has been hacked, you are encouraged to file a complaint with IC3 at www.IC3.gov.

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May 3, 2011

Five Financial Tips for the Graduate

The start of May means graduation season is coming, and whether you’re graduating from high school or college, there has never been a better time to be preparing for your financial future. To get the class of 2011 started on the right foot, here are five tips every graduate should consider.

1. Save now. As you prepare to enter college or the workforce, saving is more important than ever. If you receive some extra cash as graduation gifts, stash it away in an interest-bearing savings account or CD at your local bank. Start by saving enough money to create an emergency fund for unexpected expenses like major auto repairs. If you have a job, have a portion of your paycheck automatically deducted to a retirement plan or savings account so you won’t be tempted to spend that amount. Many employers offer retirement savings plans—and some will even match a portion of the dollars you contribute. This is free money you won’t want to pass up!

2. Create a spending plan. Creating your own spending plan—commonly known as a budget—is the best way to make sure you don’t spend more than you earn. Track your expenses and compare the total to your income; then develop a realistic spending plan that works for you. Your spending plan will include fixed costs that are the same each month (rent, utilities, student loan payments and saving for retirement). The rest of your income is considered discretionary, and you control how that money is spent. After a few months of tracking your spending, you may discover that you need to cut back on things such as magazine subscriptions, fitness memberships, fast food, cable television, pizza delivery or dining out at restaurants.

3. Understand student loans. If you have student loans or plan to take them out, be aware that they come with a variety of features and repayment options. It’s smart to understand the details of your loan agreements so you know when you have to start making payments, how much your interest rate and payment rates will be, what consolidation options exist and what to do if you get in a bind and can’t make your payments.

4. Maintain a good credit history. Your credit history is important to obtaining future credit to buy a house, car or other major purchase. To maintain a positive credit history, be sure to pay all of your bills on time—this includes your student loans, credit cards, utilities, cell phone and other bills. Curious about your credit history? Federal law allows you to obtain free copies of your credit reports every 12 months by visiting the official website at www.annualcreditreport.com or by calling (877) 322-8228. Review you credit reports carefully, and if you find errors or notice any suspicious activity, be sure to contact the credit reporting agency immediately.

5. Share living expenses longer. College students and those just out of college often get the itch to find an apartment and live on their own. But once the utility bills start rolling in along with monthly rent, many find themselves stretched too thin. Instead, consider finding a roommate or two to help share monthly living expenses. If living at home is an option for you, it can also be a great way to save money. You don’t want to overstay your welcome, but even living at home for a year after graduation can help you save enough money to buy a car, make a down payment on a house or build an emergency fund.

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April 26, 2011

10 Tips for Avoiding Online Scams

International scam artists use clever schemes to defraud millions of people around the world each year, threatening financial security and generating substantial profits for criminal organizations and common crooks. Being on guard online can help you minimize your chance of becoming a victim of an online scam. The Federal Trade Commission offers the following 10 tips to help you stay safe online.

1. Don’t send money to someone you don’t know, such as an online merchant you’ve never heard of. It’s best to do business with companies you know and trust. If you buy items through an online auction, consider a payment option that provides protection, like a credit card. Don’t send cash or use a wire transfer service, and don’t pay upfront fees for the promise of a big pay-off—whether it’s a loan, a job or prize money.
2. Don’t respond to e-mails, phone calls, text messages or ads that ask for your personal or financial information. Don’t click on links or call phone numbers included in the message, either. The crooks behind these messages are trying to trick you into sending money and revealing your bank account information.
3. Don’t play a foreign lottery. Not only is it illegal to play foreign lotteries, but it’s also a sure way to lose a lot of money. Don’t be tempted by messages that boast enticing odds in a foreign lottery or messages that claim you’ve already won. Inevitably, you’ll be asked to pay “taxes,” “fees,” or “customs duties” to collect your prize. If you send money, you won’t get it back, regardless of the promises.
4. Remember that wiring money is like sending cash: Once it’s gone, you can’t get it back. Criminals often insist that people wire money, especially overseas, because it’s nearly impossible to reverse the transaction or trace the money. Don’t wire money to strangers, to sellers who insist on wire transfers for payment or to someone who claims to be a relative in an emergency (and wants to keep the request a secret).
5. Don’t agree to deposit a check from someone you don’t know and then wire money back, no matter how convincing the story. By law, banks must make funds from deposited checks available within days, but uncovering a fake check can take weeks. You are responsible for the checks you deposit: When a check turns out to be a fake, you’ll be responsible for paying back the bank.
6. Read your bills and monthly statements regularly. Scammers steal account information and then run up charges or commit crimes in your name. Dishonest merchants sometimes bill you for monthly “membership fees” and other goods or services you didn’t authorize. If you see charges you don’t recognize or didn’t agree to, contact your bank, card issuer or other creditor immediately.
7. In the wake of a natural disaster or another crisis, give to established charities rather than one that seems to have sprung up overnight. Pop-up charities probably don’t have the infrastructure to get help to the affected areas or people, and they could be collecting the money to finance illegal activity. Check out www.ftc.gov/charityfraud to learn more.
8. Talk to your doctor before buying health products or signing up for medical treatments. Ask about research that supports a product’s claims—and possible risks or side effects. Buy prescription drugs only from licensed U.S. pharmacies. Otherwise, you could end up with products that are fake, expired or mislabeled—in short, products that could be dangerous. Visit www.ftc.gov/health for more information.
9. Keep in mind that if something sounds too good to be true, it probably is. If someone contacts you promoting low-risk, high-return investment opportunities, stay away. When you hear pitches that insist you act now, guarantees of big profits, promises of little or no financial risk or demands that you send cash immediately, report them at www.ftc.gov.
10. Know where an offer comes from and who you’re dealing with. Try to find a seller’s physical address (not just a P.O. Box) and phone number. With Voice over Internet Protocol (VoIP) services and other web-based technologies, it’s tough to tell where someone is calling from. Do an Internet search for the company name and website and look for negative reviews. Check them out with the Better Business Bureau at www.bbb.org.

For more information and practical tips on guarding against Internet fraud, securing your computer and protecting your personal information, visit www.onguardonline.gov.

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 April 19, 2011

5 Smart Ways to Use Your 2011 Tax Refund

Tax day has come and gone, and for many Americans, that means tax refunds are also on the way. If you’re expecting a refund this year, keep in mind that your refund isn’t really “free money”—in reality, Uncle Sam is paying you back for the interest-free loan that you provided during the year.

So, although it may be tempting to splurge on an expensive high-tech gadget or go on a shopping spree, in the long run, there are better ways to use that tax refund. Consider these tips.

1. Pay down high-interest debt. Work toward eliminating debt by paying off—or at least paying down—high-interest credit card balances. Reducing or eliminating debt can boost your credit rating and improve your monthly cash flow. Paying off credit card debt with your tax refund can also relieve some of the burden of carrying a heavy debt load this year. It’s generally best to pay off debt with the highest interest rate first.
2. Save for an important goal. Use a chunk of your tax refund to open an interest-bearing savings account at your local bank that will help you achieve an important goal such as buying a car or home or paying for college.
3. Boost your emergency fund. If you’ve had to dip into your emergency fund at all over the past year, your tax refund is a great way to rebuild it. Experts recommend having enough cash on hand to cover six to eight months of expenses in case of the unexpected—a job loss, illness or major auto repairs. Your emergency fund should include enough money to cover all fixed expenses, including your mortgage payment, utilities, food, car payment and insurance. You can earn interest on your money by stashing your emergency fund in an interest-bearing savings account or checking account at your local bank.
4. Make an extra mortgage or car loan payment. Consider paying off your mortgage faster or reducing the balance on your car loan with this year’s tax refund. Reducing the loan balance on these larger accounts can also reduce your monthly payments or at least shorten your debt repayment period. Making a larger, lump sum payment toward a mortgage or car loan can also increase your net worth because you will be carrying less debt.
5. Book a vacation early. If you’re considering taking a vacation this summer, plan as far in advance as possible to get some great deals on airline tickets, hotel rooms and all-inclusive resort vacations. Booking early can save you money and stretch those tax refund dollars. Take some time to shop around for the best deals. Even though last-minute deals are out there, you can often score even better deals when you plan your trip at least three months in advance. Booking early will also give you time to pay off your travel before your getaway, reducing the chance that your vacation will wind up creating lingering credit card bills.

These tips are provided by the Iowa Bankers Association (IBA), representing banks and thrifts in the state.  The IBA serves it members by providing legislative advocacy, training, regulatory compliance and other services designed to enhance the ability of banks to serve their communities.  Learn more at www.iowabankers.com.

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April 12, 2011

Tips for Teaching Children to Save

April 12 is Teach Children to Save Day, a national program sponsored by the American Bankers Association Education Foundation that raises awareness about the important role that banks and bankers play in helping young people develop lifelong savings habits.

In honor of Teach Children to Save Day, here are some tips for parents and other adults to help the children in their lives become smart savers.

1. Start a coin collection. You can help children start a fun “American the Beautiful Quarters Program” coin collection from the U.S. Mint. In 2010, the U.S. Mint began to issue 56 quarter-dollar coins featuring designs depicting national parks and other national sites. The next five quarters are being released in 2011, and the program runs through 2021. Teach your kids to save quarters and ask your local bank for new quarters as they become available. For more information, visit www.usmint.gov.
2. Play Treasury trivia. Can your family distinguish “real” currency from counterfeit bills? Did you know that money changes colors, or that each day the Bureau of Engraving and Printing prints currency worth approximately $541 million? Investigate Treasury trivia, play games and learn fascinating facts about U.S. currency at www.moneyfactory.gov.
3. Take advantage of shopping trips. Family shopping trips are great opportunities to discuss budgeting, spending and saving. It’s easy to give clear examples of “needs” and “wants” using different kinds of food at a grocery store: Milk (for strong bones) is a need; soft drinks are a want. Comparison shopping is another valuable way to teach saving. Research the prices and quality of several similar items before making a purchase.
4. Set a family saving goal. Involve everyone in saving and budgeting by setting a goal everyone agrees on. Choose something your family wants to buy or an event your family wants to attend. Write a budget and ask every family member to make regular contributions. Discuss cutting costs or ways to earn more money to reach your goal quicker. Hold family meetings (serve popcorn and snacks!) to discuss your progress.
5. Visit a bank with your family. Take a family “field trip” to a local bank. Call ahead to make an appointment for a tour, and learn about services available for everyone in the family. While there, encourage your children to open a savings account if they don’t have one already. Research shows teaching kids to save teaches self control, and kids who save are more likely to go to college, have a better outlook on life and are more financially literate.

These tips are provided by the Iowa Bankers Association (IBA), representing banks and thrifts in the state.  The IBA serves it members by providing legislative advocacy, training, regulatory compliance and other services designed to enhance the ability of banks to serve their communities.  Learn more at www.iowabankers.com.

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April 5, 2011

Beware of grandparent scam

Grandparents should be on the lookout for frantic phone calls from grandchildren and relatives — it could be a scam.  Well-meaning senior citizens who think they are helping a grandchild in distress are becoming victims of the so-called “grandparent scam.”  Officials report that the scam is on the rise this time of year when many students and families are traveling for spring break.

Schemers are calling grandparents and posing as their grandchildren, claiming to need money for some sort of emergency or to pay bail.  The “grandchild” often claims to be on vacation or out of the country and says he or she doesn’t want mom and dad to know about the situation – which ranges from a car crash to being put in jail for drug possession.  Some variations of the scam have even included a subsequent call from someone claiming to be a police officer or lawyer.  The scam artists convince the grandparents to wire the money, then the scammers pick it up – and the unsuspecting grandparents lose what they've paid.

Officials report that scammers often search for victims on Facebook or in newspaper obituaries and anniversary announcements that include the names of grandparents and grandchildren. Using this information, the caller also often has enough information to initially pass off as the grandchild. 

The Federal Trade Commission (FTC) and the Better Business Bureau (BBB) are warning grandparents not to fall for this scam.  The FTC estimates that 10,000 unsuspecting grandparents fall victim to the scam each year and total losses nationwide are estimated at $100 million.

Grandparents who receive suspicious calls should contact other family members to verify the whereabouts of loved ones and confirm the story.  Officials advise grandparents to not send money before making contact with the real person.

Consumers of all ages – particularly those with elderly parents, grandparents or neighbors – are encouraged to be vigilant about these types of scams.

These tips are provided by the Iowa Bankers Association (IBA), representing banks and thrifts in the state.  The IBA serves it members by providing legislative advocacy, training, regulatory compliance and other services designed to enhance the ability of banks to serve their communities.  Learn more at www.iowabankers.com.

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March 29, 2011

Beware of Tax Scams

As crunch time to tax day closes in, tax scams heat up. Don’t wait until the last minute to work on your taxes because rushing can lead to sloppy returns and a greater risk of falling victim to a scam. Tax scams take several shapes, ranging from promises of large tax refunds to identity theft. Here are three important guidelines to keep in mind:

• You are responsible and liable for the content of your tax return;
• Anyone who promises you a bigger refund without knowing your tax situation could be misleading you; and
• Never sign a tax return without looking it over to make sure it is accurate.

The IRS warns taxpayers to beware of these common scams:

• Return preparer fraud: Dishonest tax return preparers can cause many headaches for taxpayers who fall victim to their ploys. Such preparers derive financial gain by skimming a portion of their clients’ refunds and charging inflated fees for return preparation services. They attract new clients by promising large refunds. Choose carefully when hiring a tax preparer. As the saying goes, if it sounds too good to be true, it probably is. No matter who prepares your tax return, you are ultimately responsible for its accuracy and for any tax bill that may arise due to a questionable claim.
• Identity theft: It pays to be choosy when it comes to disclosing personal information. Identity thieves have used stolen personal data to access financial accounts, run up charges on credit cards and apply for new loans. The IRS is aware of several identity theft scams involving taxes or scammers posing as the IRS itself. The IRS does not use e-mail to contact taxpayers about issues related to their accounts. If you have any doubt whether a contact from the IRS is authentic, call (800) 829-1040 to confirm it.

For more information about these and other tax scams, visit the IRS website at www.irs.gov. Remember that for the genuine IRS website, be sure to use .gov. Don’t be confused by websites that end in .com, .net, .org or any designations other than .gov. The address of the official IRS governmental website is www.irs.gov.

Note: The information provided above is not intended as legal or tax advice. Consult a tax professional or the IRS with specific questions. 

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March 22, 2011

10 Money-Saving Tips for Spring

Spring has officially arrived! To celebrate the warmer weather and add some money to your pocketbook, here are a few tips to help you save some cash this spring:

1. Make a shopping list – and stick to it.  Before you head to the store, make a list of the items you need and only buy the items on your list.
2. Toss the catalogs.  Avoid the temptation to spend by recycling catalogs as soon as they arrive in the mail.
3. Pay your bills online.  If you’re still paying bills by mail, you can save on the cost of stamps by paying your bills online through your local bank. Many banks offer services to make it easy to manage and pay your bills online with the touch of a button. Check with your local banker for more information.
4. Get organized and avoid missed payments. If you’ve ever missed a payment because your bill was buried in a stack of papers, you’re probably paying late fees as well as hurting your credit score. Make a commitment to “spring clean” your bills and financial records. Taking some extra time each month to get organized will pay off when you’re able to avoid late payment penalties.
5. Improve your credit score. Over time, a good credit score can save you thousands of dollars in interest charges for credit cards, home loans and car loans.  Checking your credit reports, paying your bills on time and reducing the amount of debt you owe are just a few steps you can take to improve your score.
6. Scale back your cable or satellite TV.  If you’re able to give up expanded cable or satellite television packages, you’ll be able to see your bill drop drastically.
7. Install a programmable thermostat.  Properly using a programmable thermostat to regulate your home’s temperature is one of the easiest ways you can save energy and money.
8. Wash your own car.  Automated car washes are convenient, but the costs add up quickly.  Instead of heading to the car wash, invest a little money up front to buy the supplies you need to wash your own car. Plus, it’s a great excuse to get outside and enjoy the warmer weather.
9. Subscribe to magazines you read.  Subscriptions offer substantial savings compared to buying your favorite magazine from the newsstand. Better yet, stop by your local library each month and read your favorite magazines for free!
10. Commit to a “no-spend weekend.” Here’s a challenge your whole family can be a part of:  break the spending routine and commit to going an entire weekend without spending money.  Play board games, watch home movies, have a family barbeque and spend some time enjoying the great outdoors together.  You’ll be saving money and making memories that will last a lifetime.

 These tips are provided by the Iowa Bankers Association (IBA), representing banks and thrifts in the state.  The IBA serves it members by providing legislative advocacy, training, regulatory compliance and other services designed to enhance the ability of banks to serve their communities.  Learn more at www.iowabankers.com.

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March 15, 2011

10 Timely Tax Season Tips

Although typically one month from today, the deadline to file your taxes this year has been extended three days to Monday, April 18. The bonus days come thanks to Emancipation Day, a Washington, D.C., holiday that falls on Saturday, April 16, but is observed on April 15—thus prompting the Internal Revenue Service (IRS) to extend the tax filing deadline to April 18.

Even with the three-day extension, tax day is just around the corner. The Federal Deposit Insurance Corp. (FDIC) and the IRS offer the following tips to help the process go smoothly.

1. Have your tax refund direct deposited into your bank account. The benefits include receiving your tax refund faster and knowing that your refund check will be safe and not lost or stolen. Direct deposit also provides an easy way to save part of your tax refund, because what you don’t see you won’t spend.
2. If you need cash and you can’t wait for your tax refund, carefully consider your options and costs. In particular, “refund anticipation loans” arranged by tax preparers for people who file their returns electronically will get you cash in just a day or two and the loan will be paid back with your tax refund, but the costs are comparable to very high interest rates. Keep in mind that taxpayers who file returns electronically using the IRS “e-file” service can receive refunds in two weeks or less.
3. Make good use of your refund. Consider paying down or paying off your loans and other bills, starting with the ones that charge the highest interest rates on unpaid balances. Start or add to an existing savings account or fund a retirement account or college savings plan.
4. Consider your payment options. If you owe taxes, there are a number of payment options available – including check or money order.  Electronic payment options include paying online, by phone using a credit or debit card, electronic funds withdrawal and the Electronic Federal Tax Payment System (EFTPS).  Consult your tax professional for more details about the possible costs associated with each option.
5. Know the costs involved if you need to borrow money to pay your taxes.  If you must borrow money or use a credit card to pay your tax bill, keep in mind you’ll be paying interest on the amount you borrow. You may also consider applying for an IRS installment agreement, which allows you to pay your tax bill in monthly installments.  The IRS charges a fee to set up the agreement.  Consult your tax professional or trusted financial advisor to discuss your options.
6. Take advantage of free tax preparation services. One IRS program that the FDIC is helping to promote is the Volunteer Income Tax Assistance (VITA) program, which provides free tax-preparation help to low- and moderate-income taxpayers at various locations. Some VITA sites even have representatives from banks or other organizations who can assist in other ways, including opening a bank account or obtaining a credit report. Another IRS program is “Free File,” which allows taxpayers who earn $58,000 or less to prepare and file their federal taxes for free through the IRS website at www.irs.gov/freefile.  
7. Visit the IRS website. The official IRS website (www.irs.gov) is a great place to find everything you’ll need to file your tax return: forms, publications, tips, answers to frequently asked questions and updates on tax law changes.
8. Remember this number: 17. Check out IRS Publication 17, Your Federal Income Tax on the IRS website. It’s a comprehensive collection of information for taxpayers highlighting everything you’ll need to know when filing your return.
9. Review! Review! Review!  Don’t rush. We all make mistakes when we rush. Mistakes will slow down the processing of your return. Be sure to double-check all the Social Security Numbers and math calculations on your return, as these are the most common errors made by taxpayers.
10. Don’t panic! If you run into a problem, remember the IRS is available to help. Visit www.irs.gov or call toll-free (800) 829-1040.

Note: The information provided above is not intended as legal or tax advice. Consult a tax professional or the IRS with specific questions. 

These tips are provided by the Iowa Bankers Association (IBA), representing banks and thrifts in the state.  The IBA serves it members by providing legislative advocacy, training, regulatory compliance and other services designed to enhance the ability of banks to serve their communities.  Learn more at www.iowabankers.com.

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March 8, 2011

5 Tips to Minimize the Damage of a Lost or Stolen Wallet

There aren’t too many things worse than the panicked feeling of a missing wallet or purse —especially when you’re not sure if it’s just misplaced or if it could be in the hands of a criminal. Follow these tips to help minimize the damage of a lost or stolen wallet and to give you peace of mind.

1. Limit the amount of confidential information in your wallet. Only carry the identification, checks, credit cards or debit cards you really need. The rest, including bank account numbers, personal identification numbers, passwords and—most importantly—your Social Security card, are best kept elsewhere in a safe place. Don’t pre-print your Social Security number or driver’s license number on your checks, because either one could help a thief apply for a loan, credit card or bank account in your name.

2. Copy everything in your wallet (except the cash). Copy or scan both sides of credit cards, insurance cards, IDs and any other important documents kept in your wallet, and store the copies in a safe place. If your wallet is lost or stolen, knowing exactly what was in it will make suspending accounts and getting replacement cards much easier. Note that the customer-service number you need to call to report a compromised card is often on the back.

3. Review your credit card bills and checking account statements as soon as they arrive. Make sure that no fraudulent activity is taking place and you’re not being billed for purchases you didn’t make.

4. Periodically request your credit reports. Look for signs that someone may have obtained loans or tried to commit other fraud in your name. By federal law, you are entitled to a free copy of your credit report every 12 months from each of the three nationwide credit bureaus—Equifax, Experian and TransUnion. Go to www.AnnualCreditReport.com or call (877) 322-8228 to order your free credit reports.

5. If your wallet is missing, take steps to limit your liability. Immediately call your bank and credit card companies to report lost or stolen cards.

Being proactive and taking precautionary steps to protect yourself from the damage of a lost or stolen wallet may seem like it will take a lot of time and effort—but it’s nothing compared to the many hours you would spend trying to recover a stolen identity. Learn more ways to avoid identity theft online at www.ftc.gov/idtheft.

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March 1, 2011

Mobile Banking 101

Nine out of 10 Americans have a cell phone and, according to research by The Nielsen Company, more than half of them will be using a smart phone by the end of 2011. A smart phone is a hand-held computer that enables users to access the Internet, run applications and make phone calls. And, for a steadily increasing number of consumers, smart phones and other mobile devices can be used for banking.

The Federal Deposit Insurance Corporation (FDIC) reports that most common way customers make use of mobile banking is by accessing their bank’s website using the browser on their smart phone or mobile device.  This is very similar to what you would do on your home or office computer. Some banks have even developed special web pages formatted for mobile screens. 

If you’re also checking e-mails on your phone, keep in mind that some criminals may send e-mails with links that look like they come from your bank or a reputable company.  It’s always a good idea to use your browser bar to enter your bank’s website address rather than following a link from an e-mail. 

Some banks may offer an application program that can be downloaded and installed on smart phones. These applications may allow you to access your account information faster.  To protect your phone from unauthorized applications, it is best to only download applications directly from the bank or a reliable vendor.

Even if you don’t have a smart phone, some banks offer text message alerts that can be sent directly to your phone if your account balance drops to a specific level.  Some banks may allow you to request your current balance by sending a text message and getting a quick response.  The FDIC reports that using text messaging services for your banking transactions is less secure than using web- and application-based mobile banking systems.  Keep in mind that scammers may send text messages posing as your bank to try to request your personal identification number, account number or other information. To make it easier to determine that text messages from your bank are authentic, add the bank’s mobile number to your contact list under the bank’s name.

To reduce fraud and protect your money, the FDIC recommends making sure that your phone or the mobile-banking application you’re using is password protected.  In addition, make sure your phone isn’t storing your passwords to automatically log you into your bank account.  That way, if you lose your phone, someone else can’t access your bank account without having your password.   If your phone is lost or stolen, immediately notify your bank and/or mobile phone provider.

As with all products and services, make sure you understand how it works so you can make an informed decision about whether mobile banking may be right for you.

Money Smart Kid Essay Contest Offers Students a Chance to Win $1,000

Students in sixth through eighth grade now have the chance to enter the fifth annual Money Smart Kid Essay Contest and compete for $1,000 to help boost their college savings. The essay contest is co-sponsored by the Iowa Bankers Association and Iowa Credit Union Foundation in conjunction with Money Smart Week program from the Federal Reserve Bank of Chicago.

Sixth, seventh and eighth graders can enter the contest by writing an essay of 300 words or less that addresses the following question: “What are the financial risks and benefits of mortgaging a home from the perspective of both the potential homeowner and the bank (or lender)?  What surprised you about your research on this topic?

Teachers and parents are welcome to encourage students to develop original essays for the contest. Essays are due by March 21.  Complete contest guidelines are available on the Money Smart Week Iowa website at www.moneysmartweek.org/iowa. 

Finalists may be selected to read their essays at one or more Money Smart Week kick-off events, and the student with the top essay will be selected as Iowa’s Money Smart Kid for 2011.  The winner may also be asked to speak at the 2011 Iowa Jump$tart Conference on July 21 or July 22.

The winning student will receive a $1,000 College Savings Iowa account, funded jointly by the Iowa Bankers Association and the Iowa Credit Union Foundation.  College Savings Iowa is the state’s 529 college savings plan, which can be used at any federally accredited institution of higher learning in the United States.

Money Smart Week will take place April 2-9 in communities across the state. Throughout the week, more than 150 educational events will be hosted by nearly 120 community groups, financial institutions, government agencies, educational organizations and financial experts in an effort to help Iowans of all ages learn to better manage their personal finances. More information about Money Smart Week – including a complete calendar of events – is available at www.moneysmartweek.org/iowa.  

These tips are provided by the Iowa Bankers Association (IBA), representing banks and thrifts in the state.  The IBA serves it members by providing legislative advocacy, training, regulatory compliance and other services designed to enhance the ability of banks to serve their communities.  Learn more at www.iowabankers.com.

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Feb. 22, 2011

10 Tips for America Saves Week

This week is America Saves Week, an annual event sponsored by the Consumer Federation of America to encourage saving, debt reduction and wealth building among adults. Use the following tips and resources inspired by the America Saves Week website (www.americasavesweek.org) to assess your savings plan.

1. Set savings goals. Start by writing down each of your goals on a 3”x 5” card so you can organize them easily. Sort the cards within each stack in order of priority. Write on each card what you need to do to accomplish that goal: When you want to accomplish it, what it will cost, how much you have set aside already and how much more money you will need to save each month to reach the goal.

2. Calculate your net worth—the dollar amount representing all your assets minus your debts. Find out your current and future net worth with America Saves’ Personal Wealth Estimator at www.americasaves.org.  By listing your financial and nonfinancial assets and debts, the Personal Wealth Estimator is able to calculate your current and future wealth for 5, 10, 20, 30, 40 or 50 years. Your aim is to create a positive net worth, and you want it to grow each year. Your net worth is part of what you will draw on to pay for financial goals and your retirement. A strong net worth will also help you through financial crises.

3. Reduce debt. One of the best investments borrowers can make is to pay off consumer debt with high interest rates. Establish a budget to pay down your existing debts—such as student loans, mortgages and credit cards.

4. Spend less than your income and save the difference. Track your income and expenses to see how much money you have coming in and how much you spend.  Use computer software programs or basic budgeting worksheets to help create a budget. Include as much information as you can and then set realistic goals for cutting expenses and saving money. Continue to track your spending and review your budget regularly.

5. Establish an emergency fund that can be used in case of financial emergencies such as hospital bills or loss of a job. Determine how much money you are able save each month, then deposit that amount in a savings account at your local bank.  Financial advisors generally suggest saving enough money to cover your living expenses for three to six months.

6. Save for retirement. The Ballpark Estimate worksheet, found at www.choosetosave.org/ballpark, helps you quickly and easily determine how much money you need to save to live comfortably in retirement. Ballpark takes issues like Social Security benefits and earnings and converts it into figures that are easy to understand. If your work offers a retirement plan, such as a 401(k) or 403(b) plan that deducts money from your paycheck, join it. Try to contribute at least as much as your employer is willing to match.

7. Set up a direct deposit and an automatic transfer to your savings account. When you get paid, put a portion in savings through direct deposit or automatic transfer. Almost all banks will, upon request, automatically transfer funds monthly from your checking account to a savings account. 

8. Save a portion of tax refunds, gifts, bonuses or other financial windfalls. Before you consider frivolously spending your tax refund, consider using the extra funds to contribute to an IRA, make an extra credit card payment, buy a savings bond or one of many other options that will benefit your financial future.

9. Consider increasing your monthly mortgage payment. The largest asset of most middle-income families is their home equity. Once these families have made their last mortgage payment, they have far lower housing expenses. They also have an asset that can be borrowed on in emergencies or converted into cash through sale of the home.

10. Build equity in your home or other property.  Before tapping into the equity of your home to send your child to college, remodel your home or pay off your credit card debt, consider the pros and cons. While it may permit a higher borrowing limit, your home is considered collateral if you cannot make the payments. Only you can decide if this option is right for you. 

These tips are provided by the Iowa Bankers Association (IBA), representing banks and thrifts in the state.  The IBA serves it members by providing legislative advocacy, training, regulatory compliance and other services designed to enhance the ability of banks to serve their communities.  Learn more at www.iowabankers.com.

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Feb. 15, 2011

10 Tips for Paperless Record-keeping

Paper statements, receipts and other documents scattered around the house are easy to misplace and create a storage and organization challenge. Additionally, they pose a much more serious threat of identity theft if they get into the hands of the wrong person. Transitioning to a paperless home office can help you clear clutter and protect your personal financial information. To make the paperless switch, gear yourself with a computer with Internet access, a scanner and the following tips.

• Elect to receive paperless statements.  Each month you may be receiving paper statements from your bank, credit card company, cell phone provider, energy provider and other companies you do business with. To cut down on clutter and paper, you may be able to elect to receive your statements electronically.
• Switch to online bill-paying options.  Many banks provide customers with the ability to pay bills online, and studies show that online bill pay is now used by more than 60 percent of the online banking community.  Paying bills online is often faster and easier than writing and mailing a check. Online bill-pay users can also schedule automatic payments to ensure bills are paid each month and avoid late fees.
• Use strong passwords. Passwords or PINs should be used when accessing an account online. Your password should be unique to you, and you should change it regularly. Do not use birthdates or other numbers or words that may be easy for others to guess.
• Don’t fall for phishing scams.  Avoid getting hooked by criminals who send e-mails encouraging you to reveal personal financial information, such as account numbers, passwords or Social Security numbers.  The e-mails may appear to be from trusted banks, retailers or other companies and often says the company needs to verify your information for security reasons. Remember that your bank will never ask you to reveal passwords or other personal information via e-mail.  
• Use caution when conducting transactions online. Encryption is the process of scrambling private information to prevent unauthorized access. To show that your transmission is encrypted, some browsers display a small icon on your screen that looks like a padlock or a key whenever you conduct secure transactions online. Avoid sending sensitive information, such as account numbers, through unsecured e-mail.
• Protect your computer.  If you are making the switch to paperless record-keeping, make sure you are protecting your computer and financial information by arming your computer with a good firewall and software to combat spyware and viruses.  Update the software regularly to ensure you are fully protected. 
• Backup your files. Upgrade your computer’s backup system or invest in an external hard drive to store your backup files. Then scan and store receipts and documents electronically. Many banks offer online statements that you can download as PDF files and store on your computer.
• Know what to keep and what to purge. There are many reasons to keep records. In addition to tax purposes, you may need to keep records for insurance purposes or for getting a loan. According to the IRS, good records will help you identify sources of income, keep track of expenses, keep track of the basis of property, prepare tax returns or support items reported on tax returns. For information on what kinds of records you should keep and how long you should keep them, go to www.irs.gov/pub/irs-pdf/p552.pdf.
• Shred for safety. Invest in a shredder to safely get rid of old files, paid bills, scanned documents and other unwanted paper, such as credit card offers.  Shredding your documents helps to keep your personal financial information from getting into the hands of identity thieves.
• Turn to your local banker.  Talk to your local banker for more information about protecting your financial information.

These tips are provided by the Iowa Bankers Association (IBA), representing banks and thrifts in the state.  The IBA serves it members by providing legislative advocacy, training, regulatory compliance and other services designed to enhance the ability of banks to serve their communities.  Learn more at www.iowabankers.com.

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Feb. 8, 2011 

5 ways to be a financially responsible Valentine

Want to be the perfect Valentine for your significant other? Here are some tips to show him or her how “fiscally” attractive you can be. 

1. Spend a romantic evening on a budget. Relationship woes often can be traced to finances. If money’s tight, don’t stay at home and grumble about money trouble, and don’t spend a night on the town with champagne and caviar. Instead, get creative and go to a free concert or exhibit, build a snowman or make some hot cocoa to enjoy with your Valentine.
   
2. Have a plan for long-term financial security. Does your long-term financial plan involve the latest “make your millions in your spare time” scheme or a handful of lottery tickets? Hopefully not. Fast money scams are a quick way to financial ruin, and your significant other probably won’t be impressed if you’re banking on luck. Rather, set aside a portion from each paycheck for savings. And nothing says, “I love you” like keeping a budget—a written plan that accounts for fixed costs, variable expenses and once-in-a-while splurges.
   
3. Organize your financial records. Having a system in place for organizing your bills and financial statements helps you track your expenses and pay your bills on time. Shred what’s no longer needed and keep the important stuff in a safe place. Being methodical is one thing, but holding onto papers you no longer need is an invitation to identity theft. Your Valentine doesn’t want your identity stolen and neither do you.
   
4. Keep tabs on the accuracy of the information in your credit report. Exercise your legal right to receive free copies of your credit reports at www.AnnualCreditReport.com or by calling 1-877-322-8228. This is the only authorized source for a truly free credit report. Many of the “free” credit report services require you to sign up for expensive add-ons and then bill your credit card every month.
   
5. Beware of e-mails asking for verification on an account number. Banks and credit card companies never ask for account information in e-mails. Messages like this are likely phishing attempts sent by scammers. Be a savvy sweetie and delete it immediately.

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Feb. 1, 2011

Save an Extra $1,000 This Year

Now that January has passed and we’re one month into 2011, it’s a great time to evaluate how your New Year’s saving plan is going. If your bank account isn’t where you wanted it to be by this time, read on to find out how save an extra $1,000 this year.

As of Feb. 1, there are 334 days left in 2011. A little easy math reveals that setting aside $3 a day for the rest of the year will total $1,002 by the end of 2011. Here are 10 money-saving tips to help you save $3 a day:

1. Skip the coffee shop before work.  Instead, make coffee and breakfast before you head out the door.
2. Read magazines online or at the library instead of buying a copy in the check-out lane.
3. Bring your lunch to work. Packing your lunch with last night’s leftovers makes your dollars go even farther.
4. Cancel your gym membership.  Find ways to exercise at home or go for a walk outside.
5. On your next trip to the grocery store, save money by comparing prices and buying generic brands instead of name brands.
6. Make handmade cards or baked goods for friends and relatives celebrating birthdays or special occasions instead of buying cards and gifts.
7. Take advantage of coupons provided in your local newspaper or by third-party online coupon providers.
8. Rent a movie to watch with your family at home instead of hitting up the theater.
9. Find someone at work to carpool with. With gas prices continuing to climb, this could save you a lot more than $3 a day!
10. Clean out your closets. Take clothes your family no longer wears to a consignment shop that will give you a cut of the profits.

These tips are provided by the Iowa Bankers Association (IBA), representing banks and thrifts in the state.  The IBA serves it members by providing legislative advocacy, training, regulatory compliance and other services designed to enhance the ability of banks to serve their communities.  Learn more at www.iowabankers.com.

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January 25, 2011

Get a Jump-start on Your Taxes

By now, you’ve probably noticed important tax documents arriving in the mail and tax-preparer kiosks set up at your local shopping centers. This can only mean one thing: Tax season is just around the corner.

Even though your return is not due until April, getting an early start will make filing easier. Here are the Internal Revenue Service’s (IRS) top 10 tips that will help your filing process run smoother than ever this year.

1. Start gathering your records. Round up any documents or forms you’ll need when filing your taxes: receipts, canceled checks and other documents that support income or deductions you’re claiming on your return.
2. Be on the lookout. W-2s and 1099s will be coming soon if they haven’t arrived already; you’ll need these to file your tax return.
3. Use Free File. Everyone can find an option to prepare their federal tax return and e-file it for free. Visit www.irs.gov/freefile to review your options.
4. Try IRS e-file. After 21 years, IRS e-file has become the safe, easy and most common way to file a tax return. Last year, 70 percent of taxpayers—99 million people—used IRS e-file. Starting in 2011, many tax preparers will be required to use e-file and will explain your filing options to you. This is your chance to give it a try. IRS e-file is approaching 1 billion returns processed safely and securely. If you owe taxes, you have payment options to file immediately and pay by the tax deadline. Best of all, combine e-file with direct deposit and you get your refund in as few as 10 days.
5. Consider other filing options. There are many different options for filing your tax return. You can prepare it yourself or go to a tax preparer. You may be eligible for free face-to-face help at an IRS office or volunteer site. Give yourself time to weigh all the different options and find the one that best suits your needs.
6. Consider direct deposit. If you elect to have your refund directly deposited into your bank account, you’ll receive it faster than waiting for a paper check.
7. Visit the IRS website. The official IRS website (www.irs.gov) is a great place to find everything you’ll need to file your tax return: forms, publications, tips, answers to frequently asked questions and updates on tax law changes.
8. Remember this number: 17. Check out IRS Publication 17, Your Federal Income Tax on the IRS website. It’s a comprehensive collection of information for taxpayers highlighting everything you’ll need to know when filing your return.
9. Review! Review! Review!  Don’t rush. We all make mistakes when we rush. Mistakes will slow down the processing of your return. Be sure to double-check all the Social Security Numbers and math calculations on your return, as these are the most common errors made by taxpayers.
10. Don’t panic! If you run into a problem, remember the IRS is available to help. Visit www.irs.gov or call toll-free (800) 829-1040.

These tips are provided by the Iowa Bankers Association (IBA), representing banks and thrifts in the state.  The IBA serves it members by providing legislative advocacy, training, regulatory compliance and other services designed to enhance the ability of banks to serve their communities.  Learn more at www.iowabankers.com.

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January 18, 2011

How to Save Money at the Gas Pump

Averaging over $3 a gallon for the third week in a row, Iowa’s gas prices are at their highest level in more than two years. The last time Iowa gas prices topped the $3-per-gallon mark was October 2008. Rising gas prices may be bad news for your New Year’s budget, but the good news is that there are simple steps you can take to cut costs at the pump. The Federal Trade Commission (FTC) offers the following tips:

On the road

• Stay within the posted speed limits. Gas mileage decreases rapidly at speeds over 60 miles per hour.
• Avoid unnecessary idling. It wastes fuel, costs you money and pollutes the air. Turn off the engine if you anticipate a wait.
• Stop aggressive driving. You can improve your gas mileage up to 5 percent around town if you avoid “jackrabbit” starts and stops by anticipating traffic conditions and driving gently.
• Use overdrive gears and cruise control when appropriate. They improve the fuel economy of your car when you’re driving on a highway.
• Combine errands. Several short trips taken from a cold start can use twice as much fuel as one trip covering the same distance when the engine is warm.
• Remove excess weight from the trunk. An extra 100 pounds in the trunk can reduce a typical car’s fuel economy by up to 2 percent. Also, avoid packing items on top of your vehicle. A loaded roof rack or carrier creates wind resistance and can decrease fuel economy by 5 percent.
• Consider other modes of transportation. Leave your car at home and consider carpooling, public transportation, a bike ride or a stroll across town.

At the mechanic

• Keep your engine tuned. Tuning your engine according to your vehicle’s owner’s manual can increase gas mileage by an average of 4 percent.
• Change your oil. Clean oil reduces wear caused by friction between moving parts and removes harmful substances from your engine. Use the grade of motor oil listed in your owner’s manual, and change it according to the schedule recommended by your mechanic. Motor oil that says “Energy Conserving” on the performance symbol of the American Petroleum Institute contains friction-reducing additives that can improve fuel economy.
• Keep your tires properly inflated and aligned. It can increase gas mileage up to 3 percent.

At the pump

• Follow your owner’s manual recommendation for the right octane level for your vehicle. For most cars, the recommended gasoline is regular octane. In most cases, using a higher octane gas than the manufacturer recommends offers no benefit—and costs you at the pump. Unless your engine is knocking, buying higher octane gasoline is a waste of money.
• Steer clear of gas-saving gadgets. Be skeptical of claims for devices that will improve your gas mileage. The Environmental Protection Agency has tested over 100 supposed gas-saving devices—including mixture “enhancers” and fuel line magnets—and found that very few provide any fuel economy benefits. The devices that work provide only marginal improvements. Some “gas-saving” devices may damage a car’s engine or increase exhaust emissions. For more information and a full list of tested products, visit http://www.epa.gov/otaq/consumer/reports.htm.

These tips are provided by the Iowa Bankers Association (IBA), representing banks and thrifts in the state.  The IBA serves it members by providing legislative advocacy, training, regulatory compliance and other services designed to enhance the ability of banks to serve their communities.  Learn more at www.iowabankers.com.

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Jan. 11, 2011

Saving on Home Heating Costs

As old man winter continues to bear down on Iowa, finding ways to save on heating costs makes good sense and is an excellent way to start cutting costs in the New Year. Whether you heat your home with oil, natural gas or electricity, the Federal Trade Commission (FTC), offers the following tips to help you save money and stay warm:

• Conduct an energy audit to help detect waste and gauge efficiency of your current heating system. The U.S. Department of Energy (DOE) offers instructions at www.homeenergysaver.lbl.gov.
• Ask your utility company about a budget billing plan to protect against sudden or unexpected price increases.
• Schedule an annual tune-up for your furnace, heat pump or boiler. Your utility company may offer this service.
• Install a programmable thermostat that will automatically lower nighttime temperatures.
• When you shop for a new furnace, boiler, heat pump, water heater or other home appliance, consider purchasing a high-efficiency model. Although some energy-efficient appliances cost more than other models, their lower operating costs could save you money in the long run.
• Clean or replace filters on forced-air furnaces and heat pumps, and vacuum air vents, baseboard heaters and radiators regularly.
• Wrap your hot water heater in an insulating jacket. A water heater needs extra insulation if it’s warm to the touch.
• Use caulking or weather-stripping to seal air leaks around windows and doors and holes around plumbing and heating pipes. Check existing caulking and weather-stripping for gaps or cracks.
• Close the doors to rooms you don’t use regularly.
• Contact your provider if you’re living on a fixed income and have trouble paying rising utility bills. They may have assistance plans to help you make your payments. Some state and local governments offer similar services.

Don’t Get Burned
The FTC warns that when energy prices go up, so does advertising for a host of energy-saving products and services—some legitimate, but others overpriced or just plain bogus. Be wary of devices, gadgets and energy-saving products that promise drastic reductions in home heating costs or extreme energy savings. Try to get independent information to verify a product’s performance claims.
 
Be wary of uninvited door-to-door sales calls, and stop anyone making a high-pressure sales pitch for furnaces, windows, roofing, siding or other home-improvement products. To make sure a contractor is licensed and reputable, ask friends and neighbors for referrals, ask the contractor for customer references and check out potential contractors with the Better Business Bureau and other state and local consumer protection officials. The FTC’s Cooling-Off Rule gives you three business days to cancel a contract if you sign it in your home or at a location other than the contractor’s permanent place of business.

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January 4, 2011

Recovering from Holiday Spending Debt

Still paying the price from the holiday shopping craze? It’s not uncommon to overspend during the holidays and then find yourself trying to get your head above water during the following year. Credit card debt can linger for years if you don’t take care of it quickly. Here are some tips to help you start off 2011 on the right foot.

1. Open a holiday savings account. Many banks offer a Christmas Club or holiday savings account program to help customers save for holiday expenses throughout the year.  Saving a little money each month will help you avoid facing the same spending crunch in December 2011.
2. Watch your spending.  One of the best ways to monitor your spending is to develop a budget. Start by listing your income from all sources. Then list your fixed expenses, such as mortgage payments or rent, car payments and insurance premiums. Next list the expenses that vary, such as entertainment, recreation and clothing. Writing down all your expenses, even those that seem insignificant, is a helpful way to track your spending patterns, identify necessary expenses and prioritize how you spend the rest of your money.
3. Assess your debt. After you’ve established your budget, you’ll be well prepared to pay down your existing debt. When reducing your debt, always continue to make your payments on time. Try to pay more than the minimum due. Generally, it is a good idea to pay off debt with highest interest rates first.
4. Find free fun. Use the month of January to get your budget back on track.  Plan to only spend money on necessities, and then commit to finding opportunities for free family fun.   Plan a family game night, or check out books and movies from your local library.  Your family might also enjoy preparing dinner together or volunteering for a local charity. If you enjoy outdoor fun, winter provides plenty of opportunities for sledding or building a snowman.  Use your imagination, and the savings will add up!

These tips are provided by the Iowa Bankers Association (IBA), representing banks and thrifts in the state. For more information, go to www.iowabankers.com.

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