spending

How Not To Bust Your Holiday Budget

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The holiday shopping season is in full swing. The malls are packed with eager shoppers. Offers and promotions are coming from clothing stores, electronics retailers and other shopping sites. They’re probably flooding your inbox, and your physical mailbox is getting overloaded with catalogs from shops you haven’t bought anything from in years, if ever. 

If you’re wondering how you’re going to pay for this frenzy of shopping while keeping your checking account in the black, you’re not alone. According a T. Rowe Price survey, more than half of parents will aim to get everything on their kids’ wish lists this year, spending an average of $422 per child. 

Many of these parents will be paying for these gifts for months, or even years, afterward. But what’s a busted budget next to holiday cheer, right? 

Of course, before approaching any large-cost event, it’s smart to create a budget. Unfortunately, 58% of the parents surveyed admitted that they thought they had created a budget, but didn’t stick to it. Nearly two-thirds admit they spend more than they can afford. The Sym’s clothing-store chain was famous for its tagline: An educated consumer is our best customer. Take a page out of their book and become an educated shopper this holiday season. It will empower you to make informed decisions about your spending before you hit the shops.
 

Short-term effects

Tipping your budget just a bit every once in a while isn’t a disaster. You can plan to spend less the next month or pay off your debt with an expected surplus of funds. But the spending hangover some parents can face from their holiday shopping is too large to be easily forgotten.

Over half the parents surveyed will pay for their holiday gifts with credit cards. Just 61% of them plan to pay off their spending within three months, and 16% say they will pay it off over the course of six months or more. That’s half a year spent catching up on holiday spending!

Think carefully this shopping season before you drop another item into your cart. Is this gift really worth trimming your budget for the next three – or six – months?

Long-lasting effects

Even more alarming than paying off holiday debt for half a year is the one-quarter of the parents who have taken extreme measures to fund their purchases: 11% have used money from their retirement accounts, 14% have taken funds out of their emergency savings and 11% have taken out a payday loan.

While their kids may be delighted with their loot, parents can be paying for it for longer than they think.

Taking $500 out of a 401(k) at age 35 translates into giving up $6,000 that was earmarked for retirement. Parents are forking out additional taxes and penalties to gain access to the money, and are also losing the opportunity for that money to grow.

Your kids may be thrilled that you’re thinking of the here and now, but you’ll pay the price for living in the moment sometime in the future. Make sure each purchase is justified and worth paying off over the long term.

Life Lessons

There’s nothing quite as exciting as unwrapping a present. There’s the thrill of the unknown, of guessing what lies under the colorful wrapping paper, and the delighted whoop when the surprise is something you’ve been hoping to receive.

And this thrill is intensified in children. Kids wait all year for that moment of ripping open their gifts, and as their parents, you want to make them happy. This is why 60% of the parents surveyed claimed they will try to check off every single item on their child’s wish list.
But giving in to all their demands does nobody any favors.
Aside from the financial drain, purchasing every gift your kids have their hearts set on teaches them a host of lessons they’re better off without. Childhood is the time to create lifetime habits and mindsets. Do you really want your kids thinking they can always have everything they want? Do you want them to feel that everything they own must always be the best and most expensive?

Of course, this doesn’t mean skipping all or most of the items on your kids’ lists. But try to trim down where possible. Whether it’s a new toy, electronic device or even their own car; teaching your kids to be happy with a cheaper version, or to forgo one or more items on the list, will be a lesson they will carry for life.

This holiday season, teach your kids that true happiness can’t be bought.

Be proactive

You can beat the budget-busting this season by saving up for the holiday season throughout the year. While it may be too late for this year, it’s never too early to start thinking about next season! Just a little bit of money put aside each month can take you through the holiday season without any long-lasting scars. Sign up for our holiday club accounts, if you haven’t already done so.

Be an informed shopper this holiday season and your decisions will pay off in more ways than one.

Your Turn: How will you fund your holiday spending? Do you plan to buy your kids everything on their lists? Why or why not?
SOURCES:
http://money.cnn.com/2016/11/02/pf/parents-holiday-spending/index.html?category=pf

The Three Best Jobs For College Students

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College is a place for learning, but one of the best ways to learn is by doing. If you’ve been keeping up with friends who have graduated, you know the job market can be a cruel and unforgiving place. To prospective employers, your GPA, your extracurricular activities and your major matter a whole lot less than the all-powerful “experience.” You need a job!

In addition to the resume boost, a little disposable income can really take the pressure off your budget. Being able to finance a spontaneous road trip, a midnight taco run or a ticket to your favorite band’s show without having to dig yourself further into debt is a great feeling. How can you squeeze in work experience between classes, projects and a social life? It’s all about choosing the right job. Here are three jobs ideas. 

1.) Retail sales 

Getting a job working in sales is a great way to start a career in marketing, advertising, or business. It doesn’t matter what you’re selling, because you’ll learn the fundamentals of convincing people to buy. Look for stores you shop at regularly. If you’re a clothes horse, Kohls or GAP might be your best bet. If you’re more outdoorsy, REI or Sports Authority could be a better fit. These places do most of their business after hours and on weekends, so you can work around your class schedule. 

2.) Freelance writing 

If you’re thinking about a career in journalism, getting some bylines under your belt is a necessity. One of the best ways to do that is to sell your own work. Sites like Blogmutt will pay a few dollars for a few hundred words, while sites like Elance offer longer-term projects. Either way, the work is the focus, not the hours. You can tackle projects in your spare time, earn a little money, and build your portfolio in the process. 

3.) Fitness instructor 

You know you need to get to the gym anyway. Why not make a gig out of it? Teaching yoga or leading a calisthenics class can be a great way to get your sweat on while building your resume. If you plan to go into education or physical training, this experience will set you apart from your peers. Even better, you’ll learn how to market yourself – which is a valuable skill in any endeavor.

Eating Out … At Home!

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Brought to you by Destinations Credit Union.

There’s something magical in a kid’s mind about going out to eat in a restaurant. They ask for their favorite food and it appears as if summoned by a magic wand. Most of them probably don’t even notice the bill at the end, making for an even more enchanting experience.

Tired of financing these family outings? Believe it or not, it’s even more entertaining to have a restaurant right in your own home. Besides providing oodles of imaginative fun, this activity can be used to teach skills such as setting the table, preparing food, setting prices, paying the bill and getting the right change.

You can tailor the activity to different ages and make it as elaborate or simple as you want. Deciding ahead of time on a special that everyone will choose to order is highly recommended. They can peruse the other menu items to their heart’s content, but the special will be so irresistible, the entire family will choose it that day. Have your child help prepare the special ahead of time so that they will be more invested in ordering it later. You don’t want to have to make two or more different dishes!

This doesn’t mean you can’t come up with a menu with all the options. Have your child help design it using a free online template. An older child can help with pricing. If you have time, it can be especially useful to look up the actual cost of making your menu items at home. If you have less time, look up the costs of making your special. Then, explain how restaurants charge diners a lot more for the same dish.

You can teach your child that menu items can typically have a 300%-500% markup of the dish’s actual cost. This is easiest to explain with the example of a $5 glass of soda. Point out that, because they need to pay for delivery of the food, preparation, serving and cleanup, restaurants need to charge customers a lot more than the food is worth to make a profit. Keeping that in mind, figure out the cost of your dinner special.

Provide your child with real or play money. They might want to take the role of waiter and actually set and wait on the table. Of course, in your restaurant, waiters will also have a chance to eat. The waiter will tally up the bill at the end for all the restaurant guests, take payment, and calculate the change that is due.

Alternatively, you can play server. Bill your child at the end of the meal and have him or her pay the bill with the fake/real money you provided them. An older child can be taught to calculate the tip as well.

At the end of the day, everyone will be fed, entertained and hopefully a bit wiser. After all, there’s nothing like eating out, especially when you can do it at home.

Involvement In Finances

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In many relationships, one partner handles all of the financial arrangements.  If your partner is the one who handles everything, but you want to be more involved, how can you start that conversation?

You’re not alone. A recent study by Fidelity Investments showed many people want to be more involved with their finances. Among women, 92% wanted to learn more about their finances, while 86% wanted to take a more active role in managing them. It’s very easy to get caught in a routine with bill paying, checking and spending. The person who was doing so when you started cohabiting just continues to do so exactly the same way they always have.

What’s more, those conversations are really difficult to initiate. Even with close friends, 56% of survey respondents say finances are “too personal” to discuss. Of those survey respondents, 43% were willing to talk about their health issues, but only 17% would talk about investments. About half of respondents would willingly talk about the strange things their bodies are doing, but talking about where they save their money is considered “too personal.”

Intimate partner relationships aren’t a safer space for conversations about money, either. Only 66% of respondents talk about investments or salary with their spouses or partners. In one out of every three relationships, finances are not a common topic of conversation between people who likely share a checking account!

If you’d like to change that dynamic in your relationship, there are a couple of approaches you might consider. No matter what you do, make sure you’re approaching this sensitive topic from a place of love. Fights over money occur when one partner feels put on the defensive about budgeting or spending. Take care and try these three techniques!

1.) Talk about a common goal

If you and your partner have been trying to plan a summer getaway, save for a new car or put a down payment on a house, this can be an excellent place to start a conversation. It’s best to begin on broad notes. Ask about hotel choice or means of transportation. From there, it can be easy to talk about making a budget for the occasion. Once you and your partner are talking about dollar amounts, it can spill over into a more general conversation about finance.

If you ask about saving for this project, it’s important to have suggestions or ideas. Come to the conversation prepared to make a small sacrifice to contribute to saving for the project or have some cost-saving strategy to make the process easier. This encourages a feeling of joint struggle as opposed to you “checking up on” or “managing” your partner.

2.) Set guidelines for spending

Spending is the biggest cause of fights between couples. In general, people tend to see their decisions as rational and the choices they disagree with as irrational or impulsive. In relationships, it’s tempting and gratifying to think of yourself as the sensible one and your partner as the reckless one.

Your partner likely feels the same way. For instance, you may enjoy a daily coffee drink while your partner might consider that to be frivolous spending because they don’t know the joy and satisfaction you derive from that little indulgence. Conversely, your partner’s enthusiasm for home electronics might make you see a top-of-the-line stereo system as an extravagance, while your partner sees it as a way for the two of you to spend more time together at home.

The best way to avoid resentment while still keeping your spending under control is to set personal allowances for you and your partner. You can spend so much each week or month without consulting your partner. Major purchases that go over that limit require consultation. Try to avoid bringing up recent or specific purchases and focus on planning for the future rather than placing blame for the past. This will keep the conversation from feeling accusatory.

3.) Dream about the future

Retirement planning is a difficult subject to broach. Many people don’t want to do it on their own because the prospect of saving that much money is frightening. Add in the stress of talking about money in a relationship and this can be a conversation filled with dread.

It doesn’t have to be that way. Many couples find retirement to be a time of great relationship strength and bonding. If you and your partner didn’t have to work, you could spend a lot more time together, enjoying your mutual interests and each others’ company. Instead of beginning a retirement planning conversation with a dollar amount, begin it with a dream.

Maybe you’d like to travel the world together and see exotic sights. Maybe you want to build furniture out of your home. Maybe you want to become active in the leadership of your church. Beginning with such dreams in mind, as opposed to how much they’re going to cost, can help you and your partner better share the stress involved in saving and planning.

However you broach the conversation about money, it’s important to do so. Secrets about finances in a relationship can lead to stress, interfere with honest communication and produce relationship-ending fights. On the other hand, couples who talk openly and honestly about their financial situation can use that transparency to build stronger, more straightforward communication strategies about other topics. As many people have found, the couple who saves together, stays together!

SOURCES:
http://www.benefitspro.com/2015/02/13/women-find-personal-finance-too-personal https://www.key.com/html/couples-financial-planning-articles.html

The 4 Hidden Dangers Of Membership Club Shopping

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If you’re feeding an army or just a hungry family, you’ve probably been considering the benefits of membership in a shopping club like Sam’s Club, Costco or BJ’s Wholesale. On the surface, the membership decision seems like a very simple calculus. You take your projected savings from buying in bulk and subtract from that the cost of a yearly membership ($45 for Sam’s Club, $50 for BJ’s, and $55 for Costco). If that works out to be positive number, you should sign up.

This simple math, though, overlooks some of the more serious hidden dangers in signing up for a club membership. The availability of bulk goods can encourage different spending habits that may not be in your financial best interest. Before you sign up, remember these hidden costs.
1.) The extra cost of impulses
One of the most tempting Costco items is a drum-sized container of peanut-butter pretzel bites. In most stores, this might be an impulse item. It would be the kind of snack you’d pick up because you’re a little hungry or because you might have company later in the week. At ordinary snack food quantities, this indulgence will cost you a dollar or so. Because you’re buying in bulk, though, this splurge could easily run you $5. It’s a savings if it’s something you need, but for extra items, it’s just extra cost. Add up those extra costs over a whole shopping trip and ordinary impulse buys could eat a significant part of your grocery bill.
If you’re not used to shopping with a list, the extra costs involved in ordinary impulse spending can add up quickly. More than in other stores, you need to make a list and be a diligent, informed shopper before you set foot in a wholesale store. Do your research, make a plan and stick to it.
2.) The extra cost of cheap goods
Most people wouldn’t buy a big-screen TV on impulse. Something changes in the brain, though, when one appears on an end cap for a bit cheaper than they are at a conventional retailer. After an entire shopping trip of saying no, the willpower gives up and the credit card comes out. Suddenly, there’s a TV in the car.
The wholesale club model is to get people in the door with savings on everyday goods, wear down their resolve with an incredible array of goods, and finally hit them with high-margin goods like clothes or electronics. It works surprisingly well, even on smaller-ticket items like giant candy bars and holiday decorations. It’s a technique psychologists call “confuse and reframe.” It works quite simply.
The confuse part of the operation is the volume and price of goods. Most people have no idea how to adequately value a 20-pound jar of mayonnaise or a pack of 35 frozen steaks. Nor do most people have easy ways to categorize the thousands of products available at these stores. The brain’s natural response to this confusion is to look for shortcuts and the store provides them: price tags offer comparisons to other brands, shops, and products, showing the considerable savings available if the shopper buys now. That’s the reframe part of the operation. Having convinced the shopper that the appropriate frame is amount saved, that becomes the decision-making procedure.
It’s easy to say that those tactics won’t work on you, but studies say differently. These companies have spent lots of money designing a retail experience that gets you to spend big. They wouldn’t keep doing it if it didn’t work.
3.) The cost of missed sales
It can be easy to see an item advertised in one of these stores and assume it’s the best price you will ever find for the item. It’s frustrating, then, to go back the next week and see the product on sale for $25 cheaper. Yet this is very common, particularly with seasonal goods that need to be sold by a certain date.
In many cases, these stores will be happy to honor the sale price and refund the difference — but only if you ask for it. Because all transactions are linked to a membership card, it’s far easier for the store to see that you purchased an item and issue a refund. They’re counting on the bulk effect to create less frequent trips so customers won’t see these new sale prices. Shopping at a conventional retailer means more chances to price-check goods.
4.) The cost of waste
If you’re trying to encourage your family to try new things, you know there are going to be some foods they just don’t like. If you’re shopping at a conventional retailer, you might waste a half-pound of asparagus when it turns out your youngest just can’t stand it. If you tried that same experiment while buying from a wholesale store, though, you might end up throwing out several pounds of fresh produce.
Even when buying tried and tested staples, beware the perishable item. If you’re buying something that can spoil in bulk, you’re taking the risk that you’ll have something to do with it before it goes bad. You can minimize this risk by having a plan in place to deal with the surplus. This plan can be as simple as putting it in the freezer or sharing excess with neighbors, friends, and family members.
You can also focus your stock-up efforts on non-perishable goods. Buying things like medications, spices and paper goods in bulk can let you take advantage of the economy of scale without worrying about spoilage. Many of these goods also offer the deepest discounts.
Wholesale stores offer the chance for incredible value, but they also invite some risk. Whether membership is worth it to you or not depends on the kind of shopper you are. If you’re a diligent planner and a seasoned researcher, you can save a lot on things you need. If you tend to make impulse buys, then let the buyer beware.
SOURCES:

http://finance.yahoo.com/news/6-rules-shopping-warehouse-stores-152550021.html

The 12 Scams Of Christmas

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The holidays are a time of family togetherness and celebration. Scammers know you’re distracted, busy, and emotional. That’s why their schemes are so devilish. They get their own twist around Christmas time.

In the interest of keeping things in the holiday spirit, let’s look at 12 scams of Christmas. Don’t get taken in by these or similar schemes. Otherwise, you might be footing the bill for twelve drummers drumming and all the rest!

1.) Mobile malice

Be wary of “season-themed” apps that perform frivolous functions, yet demand top-level security access. An app that makes it look like there’s snow on your background image doesn’t need to send or receive texts. Such an app might send premium text messages and leave you holding the bill.

2.) E-card danger

Everyone with an email address will send these little flash programs. Scammers have designed some with malicious code. They can install data leaching programs on your computer and do untold damage. Don’t click links in emails unless you know the sender. Even then, if it looks a little out of the ordinary, it probably is. They may have already fallen victim and it would be good to let them know.

3.) Fake packages

You’ll be receiving unexpected packages this season. Scammers know this and will send realistic-looking delivery failure notifications. They expect you to follow up with them and reveal personal identification information! Head to your local post office or call the parcel delivery service to check with a clerk before you hand over information on the Internet.

4.) Hotel “Lie”-Fi

The FBI issued a warning to this season’s travelers about a malicious pop-up at hotel chains around the country. This scam requests people install a foreign program before connecting to a hotel Wi-Fi network. This foreign program turns out to be data-stealing malware. Remember, Internet connections you don’t own or control can easily be used against you. Before you use the Internet at a hotel, ask yourself if it’s worth the risk. If you do need access, be wary of what you’re installing–there shouldn’t be a need to install anything.

5.) Festive spam

We’ve all gotten used to filtering out spam in our email. Now prepare yourself for it to take on a more holiday-oriented theme. Messages will suggest that off-brand Rolex watches and cheap pharmaceuticals would make excellent gifts. Be careful, though, because these companies might just be in the market for your personal information.

6.) Bogus gift cards

There’s a bonanza of savings to be had buying gift cards through second-hand retailers. Be careful, though, because many of these retailers might be a front for scammers. Gift cards may be invalid, used, or forgeries, and you’ll be left holding the bill.

7.) Fake charities

These crop up every time there’s a major disaster, but they also show up at the holidays. Leaflets and phone calls from organizations with familiar-sounding names will soon appear. To be safe, don’t give to any charity with whom you didn’t start the contact. Do your research and give to charities whose values align with your own.

8.) Must-have gift scams

There will soon be an “it” gift. You’ll know it by the high demand, low supply, and hugely inflated prices. Almost on cue, websites will pop up offering the rare widget at unbelievably low prices. This is a scam – the advertiser doesn’t have the product and is only using the offer to harvest personal information or bilk you of your hard-earned money through sites like Craigslist or eBay, where they will seek payment through PayPal and never send the item you purchased.

9.) Christmas catfishing

“Catfishing” means pretending to be seeking a romantic partner on the Internet to dupe people. Scammers take advantage of the loneliness the holidays can evoke to trick people out of gifts or worse. As tempting as it is to believe in love stories at Christmas, keep your feet on the ground and practice safe Internet dating. A good rule of thumb: If you’re single at Halloween, stay that way until after New Year’s.

10.) Holiday vacation scams

If it’s cold and miserable where you are, it’s always tempting to go someplace tropical for a few weeks. If you’re thinking about getting away, be careful of unrealistic prices or “too-good-to-be-true” travel offers. Scammers have been setting up phony travel sites to harvest personal information. Only book through reputable websites.

11.) Devious Christmas games

If you’re facing a 5-hour flight and a 3-hour layover, it’s fantastic to have a distracting mobile game to pass the time. Be careful, however, not to download the wrong one. Mobile games can harvest data from your phone or steal password information. Always do a quick search to check the validity of the app you’re downloading and read the permissions carefully. A fun game should never ask for permission to send texts or send information to third parties.

12.) Free USB Tricks

Be careful with unsolicited gifts of “free” USB thumb drives. Security firm McAfee warns that many of these devices come pre-loaded with malware. Such scams often target company computers, so ensure you only use approved hardware on your work network. USB storage is cheap enough that you can pass on the freebies.

SOURCES:

http://www.fbi.gov/scams-safety/e-scams

Card Security Breaches: Why They Occur And Who’s To Blame

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It seems like there’s another financial disaster at every turn lately. Target’s card databases get hacked. Heartbleed puts your passwords at risk. Home Depot’s credit card numbers are compromised. JP Morgan Chase’s credit information is breached. Shellshock threatens the integrity of the Internet. It’s enough to make you long for the days of the corner store keeping credit on a sheet of graph paper.


To better understand how these things happen, let’s first take a look at the steps involved in a financial transaction. Then, we’ll see where vulnerabilities exist. Finally, we’ll check out a few strategies you can use to keep yourself safe.

When you swipe your debit or credit card at a terminal, the only thing you see is an approval screen. Behind the scenes, the process from the moment you swipe a card to leaving the store with your purchases is complicated. And you want it to be that way. A less complicated process would remove many layers of security.

First, there’s an “authentication” process. The point-of-sale terminal in which you swipe your card reads the card’s information from the magnetic strip, encrypts it, and sends it to a payment processing center. This facility streamlines the data into a format your issuing company can understand and sends it along. Your card network company – Visa, Mastercard, Discover, etc. – validates the legitimacy of the information. You may be prompted for some information, most commonly your billing ZIP code. This is done to help authenticate the card.

Second, there’s the reconciliation process. This is usually done at the end of the day for most retailers. The retailer sends all the day’s receipts to a payment processor, which then sends them to the issuing institution – the credit union, bank, or credit card company. That institution debits its member or customer accounts for the amount of the transaction, then sends that money to the payment processor, which sends it to the retailer.

This is an explanation of how things work in a very simplified example, but it gives you an idea of the complexity that’s involved in the process of paying with a card. While it’s a lot of steps, it’s the best system that the brightest minds in the financial industry could develop. Unfortunately, each step also introduces a layer of vulnerability.

The encryption protocol for card authentication can be busted (that was, in part, what Heartbleed was about). The retailer’s receipt records they use for reconciliation can be hacked (like what happened to Target and Home Depot). The bank can have their register of accounts hacked (like JP Morgan did). So many layers of complexity create more possibilities for hackers to compromise sensitive information.

You might notice that there’s only one step in the process that involves Destinations Credit Union or its computer systems. That comes at the very end of the process, when customer records are debited for purchases. In the latter example, the only victim of that theft was a big Wall Street bank. In such cases, the kind of hacking hardware and know-how that is required to orchestrate such an attack are expensive. Because credit unions are smaller and less centralized, they’re much less likely to be targeted by this kind of attack.

That’s not to say Destinations Credit Union doesn’t take cybersecurity seriously. We keep up-to-date with the latest in computer hardware and software to make sure our members are secure against illegal access. We also have to adapt to a world where everyone else doesn’t follow those same values. That means we have to adjust our security protocols to cover for the failings of other parts of that big, messy system.

We’re all in this together. The convenience of the modern economy makes things better for everybody. If you go on vacation, you don’t have to fuss with traveler’s checks or currency exchange troubles. You can take your debit card or credit card and spend just the same. Electronic record keeping helps financial institutions keep costs down and we all benefit from a growing economy. If we want to keep getting these benefits, we all need to put the work in to make sure our networks are secure. Here are five small tips to make your little corner of the Internet more secure.                                                 
  1. Install updates for your computer, tablet, and mobile phone regularly.
  2. Don’t open suspicious e-mails or questionable links.
  3. Don’t install software you don’t recognize.
  4. Monitor your financial statements closely to check for unauthorized activities.
  5. Get an anti-virus program and run it regularly.                      
            If you follow these five steps, you can help make the Internet a safer place for people to share things they love and buy things they need. You can help make sure the big system of merchants, processors, and institutions keeps chugging along while providing benefits to everyone.

7 Ways To Save Without Suffering

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We all know we should save more money than we do. Whether we need to pay down debt, build an emergency fund or save for retirement, we need to cut spending and increase our savings. It’s the only way to build financial security.

Yet before considering what to cut back on, try these handy tips to save money without noticing the difference.
1.) Stop subscription music.

If you pay for a subscription Internet radio service like Pandora or Spotify, you’re probably overpaying for music. The same is true if you’re paying on a per-song basis through a service like iTunes. Consider, instead, buying CDs. You can find Imagine Dragons 2012 project Night Vision for under $5 on Amazon, or the Guardians of the Galaxy soundtrack for less than $8. Streaming music services have cut the bottom out of the physical media market, and you can pick up the savings. Just copy the songs to your computer and transfer them to your mp3 player, and you can jam out for less.
           
2.) Cut back on cable

Take an honest look at how many movies you watch in a month. If you’re paying $15 a month for HBO or a similar fee for another premium channel package, you’re paying for a lot of content you probably never watch, and the overall selection is limited. For half the price of HBO, you can subscribe to Netflix or another streaming service and get a lot more viewing options. You could even go with Amazon Prime and get free two-day shipping on all your purchases while getting access to a fairly hefty video library.
           
3.) Time your vacations to travel for less

Summer tends to be the most popular travel time for tourist-happy destinations like Miami and New Orleans. If you’re planning a trip to one of these stops, traveling between February and April can save you money on your hotel reservation. Hotwire, the hotel booking site, sees an average decline of 30% at tourist locations during the off-season.
           
4.) Swap to an off-brand cell provider

You can cut down your cellphone bill considerably by switching away from a big-name carrier. If you’re on Sprint, AT&T or Verizon, you can save a considerable chunk by switching to a brand like Cricket, FreedomPop or Straight Talk. These carriers buy time in bulk from the major companies and resell it at a discount. They don’t subsidize phones or maintain well-staffed stores, so their costs are lower. You can get unlimited talk and text for one line for less than $15, and data, if you need it, for less than $20 for a 2 GB per month plan. These services don’t always travel particularly well, so if you need your phone while far from home, they may not be right for you. Still, at that price, it can be hard to say no to savings on a phone bill.
           
5.) Start reading paper books

Just like the streaming service has cut the core out of the price for physical media, the popularity of e-readers has done the same thing to the dead tree pulp market. This is particularly true in used books, where time-tested classic paperbacks can be had for as little as a penny. More current and popular titles, like John Green’s The Fault in our Stars, can be had on eBay for under $5, compared to the $10 for an ebook. Cheaper still, head over to your local library to get your fill of new releases, old classics and great books you’ve never heard of.
           
6) Check out Amazon Subscribe and Save

For commonly used goods, like tea and coffee, Amazon’s Subscribe and Save function can cut back on the time and money you spend shopping. If you go through a 72-count box of K-Cups every month, you can save $2 per month off your coffee bill by scheduling automatic deliveries of your java through Amazon. A dedicated tea drinker can save $1 per month on a 160-count box of Yorkshire Gold. With free shipping for orders over $35 (or if you have Amazon Prime, as mentioned above) and automatic ordering, this system can be your set it and forget it path to savings.
           
7.) Get rebate shopping!

For costs you can’t avoid, like groceries, it’s best to avoid as much pain as you can. That’s where online rebate apps come into play. Newly released iBotta, available for iOS and Android devices, offers a list of participating retailers and a list of rebates, usually between $.25 and $1.00. One of the most popular is a $.25 rebate on a gallon of milk – something you’ll likely buy anyway. After you finish shopping, you take a picture of your receipt with a smartphone or tablet and upload it to iBotta. They confirm your purchase and credit your rebates, along with bonuses for regular redemption, referring friends, and completing other challenges. iBotta can be an easy way to knock $5-10 off your grocery bill.
Bonus Tip:  Sign up for a Kasasa Rewards Checking with Destinations Credit Union and get paid to have your checking account…every extra dollar helps.  You can even open a Kasasa Saver Account and have your rewards automatically swept into your savings each month!
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Q&A: Cruise Line Vacation: Planning For A High Seas Getaway

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Q: My friends just got back from a relaxing 2-week cruise. Swimming, sun, and relaxation for a single price sounds like a great deal. Are there any hidden costs or other things to take into account when designing a budget for a cruise vacation of my own?
A: It sounds so simple. Instead of paying for your hotel, your travel, food and fun extras separately, you pay one bill. Your hotel IS your destination! Many of these cruise lines even advertise themselves as “all-inclusive.” It’s tempting to look at that price and think that’s all you have to pay.
Unfortunately, it’s a little more complicated than that. Cruise fares typically include your room and meals in a buffet-style dining hall. If you want more than that, you’ll need to budget a little bit more than the quoted price. Let’s take a look at a few extras you might have forgotten about and how to budget for them.
1.) Tipping: You’re surrounded by a virtual army of service workers, most of whom depend on gratuities to make a living wage. Most cruise lines know this. Carnival, Royal Caribbean, and Norwegian all include a $12 per person per day automatic gratuity. Most other cruise lines charge a similar fee. You pay these charges at the end of the cruise, and they can be quite frustrating if you’re not expecting them.
The cruise lines add the same automatic gratuity to optional services. If you and your partner get cocktails each at a poolside bar, you can expect to see an 18% gratuity added to the bill. The same is true if you get a massage or attend a yoga class. This extra charge is on top of any tip you add to ensure prompt service or reward personnel who go above and beyond their job descriptions.
How much you should budget for tips on your cruise will depend upon how much you rely on the service workers on the cruise line. At the lowest, you should expect to pay $200 per person for a week-long cruise.
2.) Internet access: We’ve become accustomed to constant access to our e-mail and social media profiles. Many people experience a sense of anxiety if they’re cut off for any length of time. If you actively manage your investments or have a high-pressure job, being out of touch can cost you quite a bit of money. 4G access isn’t available on the open ocean and cruise lines charge a hefty premium for onboard Internet usage.
Expect to pay $0.75 per minute for data usage. If you know beforehand that you’ll need some e-mail and web-surfing time, bulk packages can drop the price to $0.55 per minute. If you want 20 minutes every morning to check your e-mail and flip through your news sites, expect to pay $100 for a 7-day cruise.
You can cut down on this price somewhat by using Internet cafes during port excursions. The trade-off is that you’ll spend your tropical island time in front of a screen rather than in the sand.
3.) Shore excursions: Cruise lines take advantage of the fact that their audience is usually unfamiliar with the locations the ship visits. They charge inflated prices for tours and other shore trips. You can save money by booking these trips on your own with local tour services. You can even save by taking self-guided tours or just wandering the port. Even so, you can expect to spend between $50 and $100 per excursion. Be sure to include the price of souvenirs, meals, and drinks in tropical locations.
If all this seems overwhelming, bear in mind that it’s still worth it. A cruise is a fantastic way to get away from it all and see many different locations in a quick vacation. These are costs you’d have to pay with any other vacation; they’re just hidden a little bit behind the price tag for the cruise.
Now that you have an idea of what your fantasy cruise vacation will cost, you might want to explore savings options. Destinations Credit Union offers a Vacation Club SavingsAccount. You can take your vacation budget, divide that by the number of weeks you have to save, and auto-withdraw the amount from your paycheck or checking account every week or pay period. You’ll even earn some dividends on your savings.
So make a plan, do some math, and then call Destinations Credit Union. The adventure of your dreams is waiting!
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Fireworks and Finance

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As we get ready to celebrate our Independence Day here in the United States, I got to thinking about how fireworks can be both celebratory and explosive.  You must learn how to handle these explosives and take great care in order to avoid personal harm. 

Our finances too can be something to celebrate when we learn how to handle them and are careful to protect ourselves.  If you don’t really understand personal finance, you should take the time to educate yourself.  Look for people you trust and who manage their money well.  Ask for their advice.  Go online to personal finance sites and blogs to learn more – Destinations Credit Union has great resources on our website including “On Your Way” (geared toward young adults), as well as this Blog.  We also have some great tools, such as Money Desktop, to help you manage your money better.

You must protect your credit rating in order to make life easier (and cheaper) in the long run.  The better your credit rating, the better your interest rates on loans.  If you destroy your credit by borrowing too much and not paying on time, you may eventually not be able to borrow at all, or be forced to borrow at exorbitant rates from payday lenders.  That can cause your whole financial picture to blow up.  We all need credit from time to time – to buy a car or a home in particular.

If you find you’ve already blown up financially, Destinations provides free unlimited financial counseling through a partnership with Accel Financial Counseling.

Care for your financial well-being as you would for your family or your health.  You’ll find you’ll be celebrating your own Independence Day – financial independence and a more comfortable future!

Carol Szaroleta
Destinations Credit Union