Banking at the Post Office

In the old days, people could open up interest-bearing checking and savings accounts at Post Office. It was a way of providing cheap accounts to people of all stripe. Those accounts may be making a comeback.

According to this TIME article, nine million families in the United States are “unbanked” which means they do not have access to a checking out savings account at a bank or credit union. It also means that they have a higher risk of being the target of robbery and violent crime. To help people, there is an idea of bringing back the checking and savings accounts accounts offered through the Post Office.

“The United States Postal Savings System was created in 1910, during a time when customers were wary of big banks. Initially, the maximum allowed balance was $500, though it was later raised to $1,000 in 1916 and then to $2,500 in 1918 — equivalent to more than $40,000 in today’s dollars. When banks regained public trust and began offering more competitive interest rates after World War II, the service lost ground and it was shuttered in the 1960s.”

Some want to have the government to subsidize accounts at private firms (like Wells Fargo, Chase, PNC, etc.) while others like the option of providing products and services to the people that need them directly through the government.

What do you think?

 

Financial Institutions Owned by People of Color

Did you know that there are 28 financial institutions owned by Black people? How about that there are 33 owned by Latinos? 86 owned by Asians and 19 owned by Native Americans? If you want to use your funds to grow your community then using a financial institution owned by communities of color might be right up your alley.

Check out the whole list here.

Shay Olivarria Quoted on FoxBusiness.com

Financial education speaker and author Shay Olivarria was quoted about credit unions on FoxBusiness.com.

As you know, Shay Olivarria and Bigger Than Your Block have always been huge advocates of credit unions. If you are thinking about moving from a traditional bank to a credit union, here’s an article to help you think through your options. Want the short version? Read Shay’s quote below:

Many credit unions have programs to coach you through saving, reducing debt, saving for short-term and intermediate goals, and investing for retirement, says Shay Olivarria, author of “10 Things College Students Need to Know About Money.”

“Not only will they help you get where you want to be, you’ll understand how you got there and why it’s important to stay there,” Olivarria says.

Read more: http://www.foxbusiness.com/personal-finance/2012/08/20/what-to-look-for-in-credit-union-checking/#ixzz248w0oDdq

Shay Olivarria is the most dynamic financial education speaker working today. She speaks at high schools, colleges, and companies across the country. She has written three books on personal finance, including Amazon Best Seller “Money Matters: The Get It Done in 1 Minute Workbook”. Shay has been quoted on Bankrate.com, FoxBusiness.com, NBC Latino and The Credit Union Times, among others. To schedule Shay to speak at your event visit www.BiggerThanYourBlock.com

Get a Credit Union Account Already!

Mango Money makes no sense.

Today I read an article about Mango Money prepaid cards that made me scratch my head. In case you haven’t heard of the new prepaid card offered from MasterCard and distributed through Wal-Mart, here’s a break down of what the card is and how it works. Basically, it’s a prepaid card that allows you to have access to a debit card though you don’t have an account. You pay $10 upfront and … well, I don’t really understand what happens after that. The Mango Money site says that you can load money from another bank account (huh?), have it transferred from one Mango Money account to a different Mango Money account or pay $5 to have your funds loaded onto your card by purchasing a Green Dot refill card at Wal-Mart. Do I really have to say it? WTH?

Nothing about this makes any sense. You want to have access to your funds? Open an account at a local credit union. You want to pay few fees to manage your money? Open an account at a local credit union. You don’t want to carry around your paycheck in cash? OPEN AN ACCOUNT AT A CREDIT UNION.

In case you aren’t clear: Mango Money wants to charge you to use your hard earned money.

Mango Money = bad.

Credit Unions = good.

Locate a credit union by visiting the Credit Union Coop and putting in your zip code.

Voluptua Project – 5 Reasons You Should Open an Account at a Credit Union

This month, my article on The Voluptua Project is about credit unions.

# 1 Traditional banks don’t care about you.
Traditional banks exist to make money for shareholders. This means that regardless of how much money they spend to make you think otherwise, their main concern is for a healthy bottom line not for your welfare. Sometimes their desire to earn profits dovetails with your desire to be financially solvent, but don’t be fooled .. read the rest of the article here.

Phone Apps You Need

It’s important that we manage our money effectively and efficiently. I’ve said it before and I’ll say it again, “its not how much you make, it’s how much you spend”. I’ve created a list of a few phone apps that are:

– Cheap
– Effective
– Easy to use

Take a gander at these puppies.

Budget

They say, “Budget helps you track your spending and keep to a budget. You can easily see your total income and your total expenses for a period, plus which expenses you are spending the most on and which expenses you are going over budget on.”

I say that everyone needs to have a spending plan and there’s nothing like having your personal finance information at your fingertips. Using this app is a small change that will make a huge difference in your personal finance outlook… if you use it.

Compare Me Shopping Utility

They say, “WAS FEATURED BY APPLE IN “WHAT’S HOT” Did you ever shop at Sams, Costco or online at Amazon? Then CompareMe may help you to save money! CompareMe lets you compare products in different sizes and even in different packs.”

I say it’s an easy way to help you find out which buy is the best deal. Who knows if the $2 can at 16 oz. is a better buy than the $2.30 can at the 20 oz.? The Compare Me Shopping Utility knows.

iCredit Calculator

They say, “In the 1.2 release of the iCredit Calculator, the calculated repayment results can be generated into a PDF document that you can then e-mail as an attachment from your phone.”

I say this is a must have tool. When you’re out shopping and think, “i’ll put it on my credit card” this handy dandy tool will be there to help you find the true cost of those purchases. Small purchases really add up and effect your credit.

Bank of America Mobile Banking

They say, “Mobile Banking allows you to check available balances, pay bills, transfer funds or locate ATMs and banking centers on-the-go. It’s fast, easy and convenient. It’s a free service and available to Bank of America Online Banking* customers.”

I say it’s a great way to monitor your accounts on the go. The days of sitting at home balancing your checkbook are long gone for most of us. Why not have access to your accounts 24 hours a day, so you don’t end up with overdraft fees. Be honest… you know you take your phone everywhere you go. Now, you’ll have your personal finance information as close your music playlists!

Bloomberg

They say, “Bring the power of the most trusted source for financial information to your iPhone, along with tools to help you analyze the world’s markets.”

I say it’s a great free app that helps you toy around with financial market information. If you’d like to know more about stocks and how they work why not download an app from one of the most trusted financial sites in the world. Get this, it also comes in Chinese, French, German, Italian, Japanese, Korean, Polish, Portuguese, Spanish, Ukrainian. Nice!

What apps do you use for personal finance?

Start Your Own Bank

I was just reading an article on the Huffington Post about people starting their own banks.. and I thought, “that’s awesome!”.

As more and more people become fed up with large banks and their:

– ridiculous fees for just about any/everything
– horrible customer service
– unwillingness to help people/small businesses when they need it

it becomes more and more clear to me that putting your money in a credit union is the way to go. Not only do credit unions provide more opportunity for you to build a relationship with those entrusted with managing your money, they also provide the opportunity for each customer to make decisions about the policies, fees, etc. of that financial institution. Yep, you heard me right. As a member of a credit union you are part owner of said credit union. Instead of having no voice in decisions involving your money you have an equal vote with every other shareholder (credit union member) about what goes on at that credit union.

Now, if that’s not awesome enough for you or you don’t have a credit union that’s close to you, consider this: you can start your own credit union. Credit unions are usually started by a group of people with a similar interest, say they all are the same religion, work at the same place, or engage in the same hobby. Creating a credit union can be done in 10 steps. You’ll need at least 500 people to state that they are interested, fill out some paperwork, find a CPA to help out and collect about $25 from each member.

I’m not saying that starting your own bank is an easy as snapping your fingers, but I’m saying that it might not be as complicated you might think.

Be well.

PEACE

Bring Back “Declined”

As many of you know, Bank of America made a bold choice to revamp their policy on overdrafts, again. It used to be that the bank would not allow you to withdraw money that you didn’t have. When purchasing items at the register, if you didn’t have the money, your bank card would be declined and you would not be allowed to purchase the items on that bank card. More recently banks began to allow the overdraft and would then charge the bank customer an overdraft fee. Well, now Bank of America has decided to re institute the use of that dreaded word, “declined”.

Honestly, I’m all for it! This change in policy is going to definitely do 2 things and maybe 1 more. What will happen is:

1) People will begin to monitor their available funds again because being declined in public is embarrassing.
2) Once folks start getting declined regularly they will start taking a closer look at their spending habits.

What may happen is, other banks may change their policies as well. Many people look at banks as if they are ones in control, not realizing that customers have many options and can vote with their dollars and choose to change banks. What will really blow your mind is that not only do you have the option to change banks…… you also have the option to move to a credit union.

I’m all about people making responsible decisions, however I’m not so blind that I don’t realize that institutions and options are also important in building wealth. Find a credit union in your area and go talk to a representative. I’m willing to bet that you’ll find a smaller organization that is more friendly and has better rates than where you are currently banking.

Thanks Bank of America for making a responsible decision that should have been made a while ago, maybe that decision will motivate other banks to do the same. If not … there’s always the credit unions!

PEACE

10 Ways to Manage Your Money in 2010

I was asked to write an article for USC’s The South Los Angeles Report and I did. Take a look at 10 suggestions to help you start out 2010 on the right financial foot.

1. Think about the big picture
2. Keep $1,000 in an emergency fund
3. Save for retirement automatically
4. Change the way you bank
5. Have a garage sale
6. Spend only $50 per 2 people in your household per month
7. Start using money management software
8. Create a plan to pay off debt
9. Create spending guidelines
10. Resolve not to get a tax return next year

Ready to do some work on your finances? Buy Money Matters: The Get It Done in 1 Minute Workbook on Amazon.com.