Webinar

What are you doing Tuesday, August 4th? I’ll be delivering a webinar entitled “Need help getting your financial literacy program in schools?”

Learn effective ways to get your program in front of the students who need it!

Do you ever struggle to “get your foot in the school door” to provide your much-needed financial literacy program to students? If so, you’re not alone and now there’s a webinar addressing this important topic.

Join us on August 4 for “Best Practices: How to Get Your Financial Literacy Program into Schools,” the third-quarter webinar from the California & Nevada Youth Involvement Network (CNYIN).
In this webinar, you will:

* Learn ways other credit union professionals have successfully entered into schools.
* Understand the time and effort needed to implement a successful financial literacy program.
* Discover how to make your financial literacy program appealing to schools.

The webinar will be presented by Shay Olivarria, a consultant, speaker, and author on finance; Michelle Lawrence, education coordinator, American First CU; and Dhara Sanchez, COO, Inland Empire CU.
Who Should Attend:

* CNYIN members
* Branch managers
* Marketing & Business Development professionals
* Operations professionals
* Training professionalsM
* In-school education CU staff

Meet the presenter, Shay Olivarria:
Olivarria is a consultant, speaker, and author of Money Matters: The Get It Done in 1 Minute Workbook and 10 Things College Students Need to Know About Money. You’ve seen her in Redbook and read her articles in The South L.A. Report, SquareRootz.net, and HBCU Digest, among others. She’s appeared on domestic and international radio shows and worked with high schools, colleges, and community organizations. For more information on Shay, go to http://www.BiggerThanYourBlock.com.

FREE for all CNYIN members
$50.00 for non-CNYIN members

Sign up for the webinar here.

Hoover High Event

Shay had a great time speaking at Hoover. Go Cardinals!

I had the honor of going back to my alma mater and speaking to the entire senior class about personal finance. We had groups of almost 100 kids come in for hour-long workshops. They were surprised to learn that they would not be able to credit cards after they graduate and thrilled to learn about credit unions. I had a great time working with the staff and students at Hoover and I look forward to working with them again.

Read what Vice Principle Kinlaw had to say about my visit.

Be well.

PayDay Loans … ugh – 4 Other Options

If you’ve read Money Matters: The Get It Done in 1 Minute Workbook, you know how I feel about PayDay loans. I ran across this PayDay Loan Fact Sheet and I wanted to share it with my readers.

In case you’re not familiar with PayDay Loans here’s what the Fact Sheet says about them:

Typically, a borrower writes a personal check for $100-$300, plus a fee, payable to the lender. The lender agrees hold onto the check until the borrower’s next payday, usually one week to one month later, only then will the check be deposited. In return, the borrower gets cash immediately. The fees for payday loans are extremely high: up to $17.50 for every $100 borrowed(1) , up to a maximum of $300. The interest rates for such transactions are staggering: 911% for a one-week loan; 456% for a two-week loan, 212% for a one-month loan.

That’s crazy right? I know sometimes you feel like your back is against the wall and you have to do what you have to do to put food on the table, but please think long and hard before you choose to take a PayDay loan. Instead of taking this type of loan:

#1 Take money out of your Emergency Fund. These unexpected expenses are exactly what your Emergency Fund exists for.

#2 Clean house. You probably have tons of things in your house you don’t even use. Round those things up and take them to the swap meet. Ask others if they have old items you can take away for them. You’ll pay about $25 to rent a booth, but you’ll be in a place where people come to buy used items. The chances are good you’ll walk away with a few hundred dollars.

#3 Go to your credit union and ask if you can take out a small personal loan. This will provide you with the money you need while costing less and helping your credit score when you pay it off.

#4 Ask a friend or family member. Be clear about how much you need and when you’ll be able to pay it back. These type of loans can damage your relationship if they are not taken care of. Don’t lose a good situation behind money.

Emergencies are always going to occur. Plan ahead and keep at least $500 in your Emergency Fund. Whatever you do, please don’t take out a PayDay loan.

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

Money Management in 1 Minute: Check Cashing Places are the Devil

It seems that I can’t watch t.v., drive down the street, or kick it at the burger spot without seeing an ad for someone’s check cashing services or pay day loan or some such craziness. I have read the research, but I still don’t understand why so many people don’t have checking accounts at credit unions.

 

Let me put it this way, paying even $10 to cash your check every two weeks equals $240 a year! Pay day loans? These are the worst of the worst. Getting a pay day loan usually starts a cycle that will be hard to get out of. Please, please, please don’t use check cashing companies; open an account at a credit union.