In honor of Mother’s Day during the month of May, we bring you mom’s best financial lessons.

Ahh mom, that wise woman we rarely listened to as a kid, but as soon as we grew up, we realized was an utter genius. She was always giving us nuggets of financial gold, if we had only been paying attention.

For example, a classic mom saying is “if all of your friends jumped off a bridge, would you?”.  What she meant was, following the path that everyone else follows isn’t necessarily the best for you. This applies to our financial lives as well. Often we look around us and find people who have all the latest and greatest gadgets, live in the biggest house on the block, drive the fanciest cars and always seem to be on their dream vacation. It’s easy to get caught up in other people’s financial lifestyles and try to emulate that.

For most of us though, that keeping up with the Jones’ lifestyle requires an unhealthy dependence on debt. This is something mom most certainly would caution against. Following mom’s advice, credit unions were founded to encourage thrift (savings) and responsible debt management. We continue that philosophy today through our financial education efforts, a common sense approach to lending money, and a continued focus on helping people save.

If you’ve found yourself overwhelmed with debt, have questions about how to save more, or just want to learn more about common sense finance, check out some of the resources below or stop by a branch to learn more.

http://gtfcu.org/index.php/financial-education

http://gtfcu.org/index.php/services/credit-counseling

http://www.americasaves.org/savings-tips/54-ways-to-save-money

In honor of Mother’s Day during the month of May, we bring you mom’s best financial lessons.

Ahh mom, that wise woman we rarely listened to as a kid, but as soon as we grew up, we realized was an utter genius. She was always giving us nuggets of financial gold, if we had only been paying attention.

For example, a classic mom saying is “a penny saved is a penny earned”.  What she meant was, by saving money now, you won’t have to constantly keep earning more later in life. Of course mom was right, but in our pell-mell, go-a-million-miles-an-hour society, saving is harder than ever. Below you’ll find a common sense approach to saving consistently, just like mom would want you to.

1. Prioritize Your Savings. – To save consistently over the long haul, you have to get radical in your approach. What does radical mean, you might be asking? Good question. It means to change your mind set about the order in which you distribute your money. By making savings your first priority, you will slowly but surely transform your psyche to the point where savings is second nature. Also, savings can and most often starts small. Don’t feel ashamed to start with $50 or less a month. Many a millionaire started with small amounts saved at first. Whatever amount your budget can afford, start somewhere and stick with it.
   
   
2. Automate Your Savings. – Research shows that creating an automatic mechanism to save money, gives you a much higher chance of sticking to a plan than just winging it. The best way to do this is to send funds straight into a savings account from your paycheck via direct deposit. If you can’t split your direct deposit, create an automatic transfer on the days you get paid and then simply treat that transferred amount like a regular monthly bill.
3. Save Your Savings. – Finally, we come to the crux of what mom was trying to say all along. Don’t be tempted to spend the money you’ve saved on just anything. More than anything else, an ample savings account is a psychological safety net. It’s the physical embodiment of financial peace of mind. So once that money is in savings hold onto it.

In honor of Mother’s Day during the month of May, we bring you mom’s best financial lessons.

Ahh mom, that wise woman we rarely listened to as a kid, but as soon as we grew up, we realized was an utter genius. She was always giving us nuggets of financial gold, if we had only been paying attention.

For example, a classic mom saying is “eat your vegetables”. While mom meant carrots, brussel sprouts and broccoli (yuck!!!), there are plenty of financial correlations to this saying. When it comes to personal finance, vegetables represent the financial activities we know we should do but absolutely hate. Here’s a couple, with some food for thought.

1. Budgeting – the brussel sprouts of finance. – Nobody wants to create let alone stick to a budget. But deep down we all know it’s good for us. A little sacrifice now, let’s you eat that delicious cake (vacation, dream car, etc.) later. Just remember to cut budgeting into bite sized pieces so you don’t get overwhelmed.
   
   
2. Eating carrots can give you better (in)sight. – Research shows that carrots contain Vitamin A which helps maintain good vision. Similarly, regularly reviewing your retirement plan can give you confidence as you peer into your long term future. Sitting down at least every quarter, whether with an advisor or by yourself, is like eating a whole bunch of carrots.
   
   
3. Actually eat your vegetables. – One of the fastest rising costs is in the area of healthcare. While there are all sorts of reasons this is the case, the best way to mitigate those rising costs is to maintain good health. Consistently eating more vegetables can go a long way towards achieving health related success and reducing the strain on your checkbook.

In honor of Mother’s Day during the month of May, we bring you mom’s best financial lessons.

Ahh mom, that wise woman we rarely listened to as a kid, but as soon as we grew up, we realized was an utter genius. She was always giving us nuggets of financial gold, if we had only been paying attention.

For example, a classic mom saying is waste not, want not. This has never been more appropriate given our hectic lives. It’s easy to overlook waste because we’re rushing to and fro. But every once in a while it’s a good idea to take stock of your resources and make sure you’re getting the most out of what you have.

With that in mind, Lifehacker recently ran an article on 10 such wasteful areas. Here’s a sampling.

1. What’s that smell? – Food waste can cost you big time if left unchecked. According to an NPR report put out in 2012, Americans waste over $165 billion worth of food each year. No matter how you slice it, that’s a lot of money wasted that could be easily prevented. Check out this guide to reduce your food waste quickly and easily.

2. Coupins, Coupins, Coupins. – Whether you get them in the mail or find them on the internet, using coupons can save you big time over the long run. We’re not even talking about extreme couponing here, just your run of the mill, easily found coupons. Bottom line, if you’re not using coupons you’re leaving money on the table.

3. Ask and ye shall receive. – One of the biggest areas consumers tend to waste money on are things like, cable, internet and cell phone service. What relatively few consumers take advantage of though, is asking for a better deal. Scheduling a couple of times a year to call up your service providers to make sure you have the best “package” or are getting all the discounts you’re owed, can save you tons of money. The key is you have to pick up the phone and ask.

A recent CNN Money article highlighted a Federal Reserve study showing American homeowner’s saw an 18% increase in their home’s equity from 3^rd quarter 2011 to 3^rd quarter 2012. This comes after many years of stagnant housing prices following the collapse in 2006. With this new found value, homeowners will have more options to keep more money in their pocket and invest that money wisely. Here are some things to keep in mind now that home values are on the rise.

Refinance – If you haven’t already done so, now is a great time to refinance your mortgage or home equity loan. With interest rates remaining at historic lows, coupled with rising home values, many homeowners will now be able to refinance their existing loans or take out a new home equity loan.

Upgrade your home – Had an itch to do some upgrades? Whether you’re a do-it- yourself type or looking to hire a contractor, upgrading your home is a great way to use built up equity. Interestingly, the National Association of Home Builders cites the bathroom as most homeowner’s top renovation project. Also, don’t forget about the energy efficiency tax credit, worth up to $500.

Pay for college – While every family would prefer to have enough in savings to pay for college, the reality is that financing college tuition is far more common. Using your home’s equity is one of the lowest cost options, if not the lowest, to pay for college.

In honor of another Tax Day come and gone, here’s a short list of some of the craziest tax deductions the IRS says are a-okay with them. While plenty of taxpayers try to sneak some extreme deduction claims by the IRS, these might surprise you because they are perfectly legal. See this Fox Business News article for the complete list.

1. Pet food - Cat food was allowed as a tax deduction after the felines helped to clean up a junkyard by eliminating snakes and rats, which in turn made the place of business safer. As a result, the IRS lawyers allowed the cost of cat food to be deducted for that family.
   
   
2. Body oil - The tax court also ruled that a professional bodybuilder could deduct the costs of the body oil he used in competitions to make his muscles glisten, but deductions for buffalo meat and special vitamin supplements were denied.
   
   
3. Landscaping costs - Business owners who operate out of a home office are allowed to deduct a portion of the costs for landscaping and some home repairs, including driveway repairs, according to TurboTax.

For anyone who has ever bought a house you know there are two constants in the home buying process — it’s expensive and there’s always a surprise or two, or three. Here’s a small sample of things you should know before making the home-buying leap.

1. Appraisal vs. Inspection. – Many first time home buyers are aware their lender requires an appraisal to be done prior to closing the deal. What many don’t realize, however, is how cursory these appraisals can be. Typically, appraisals will only provide information on the value of the home and are primarily intended for use by the lender in determining whether a loan can be granted. Borrowers (especially first-timers) should order an inspection by an independent company. This inspection should look at things like: the foundation, a/c and heater, roof, flooring issues, water damage to interior walls, etc.
   
   
2. Extra Payment(s) or 15 Year Term. – Home buyers are often advised to make an extra payment at least once a year to reduce the number of years on a typical 30 year mortgage. This advice is sound, but with interest rates at all time lows, it’s also worth taking a look at a reduced term to begin with. Most lenders offer 10, 15, and even 20 year terms often with much lower rates than the traditional 30 year offering. It’s worthwhile to run the numbers both ways to see if you can afford a slightly higher payment each month, but at the same time shaving off years from your loan.
   
   
3. PMI won’t remove itself. – Private Mortgage Insurance is a reality for many first time home buyers. Unless you are putting at least a 20% down payment on the loan, your lender will require an insurance policy to help protect against non-payment. This insurance only protects the lender and can add up to a significant amount of money over time. Many borrowers, however, don’t realize they are responsible for requesting this insurance be removed once the value of the home has risen sufficiently or they have paid down the loan to at least 80%.

For more information on the home-buying process we have a webinar coming up this Thursday, from 9:00 - 10:30a, put on by Cornerstone Financial Education.  Click here for more details and to sign up.

It seems everything we do online nowadays requires a password of some sort. From online banking to social media, passwords are required everywhere you turn. Increasingly, it’s becoming important to have a more complicated password to thwart identity theft and to protect your data from hackers. Gone are the days where you can get away with “password1” or “123456”. To help, a recent CNN article offered some suggestions to make your next password as secure as possible.

• Go big and random: Longer passwords are harder to hack. Avoid actual words, years, and calendar dates; instead, devise memorable nonsense from abbreviated sentences. "The best TV show was Sanford and Son," for example, becomes "TbTVswS&S."
• Don't repeat: Never reuse a password for sensitive accounts such as banks, email, or social media. You can, however, recycle a password for sites that don't store your personal info, such as Internet radio stations or online publications.
• Tell lies: To keep people from guessing your password-reset questions -- that's how Scarlett Johansson's e-mail got hacked -- go crazy. "Tell them your mother's maiden name is Superman," says Adam Levin, chairman of IDentity Theft 911. But now that he's said that, pick another name.

In addition to the suggestions above, check out a random password generator like the offering from PC Tools. You can use this site to create customized passwords based on various criteria such as: alpha-numeric, punctuation, mixed case, and whether to allow repeat characters or not. Whichever method you end up choosing, securing your information with a strong password will make it that much more difficult for anyone to get to the digital things you care about most.

If you’ve ever purchased a used car you’ve probably been offered or at least heard of a Carfax Report. Since 1996, Carfax Inc. has provided consumers what they term as a “detailed vehicle history report” on used vehicles. The purpose of these reports is to avoid buying a vehicle which has been salvaged or severely damaged. While in a perfect world repair shops would submit this information to a centralized database, the truth is that no such database exists.

Recently, ABC News reported on the limitations of Carfax reports and the dangers of trusting these reports implicitly. Additionally, Auto P.I. (a corporate partner of GTFCU) recently compiled a list of 11 things to be aware of when you’re offered a Carfax history report. See below for excerpts.

• There is no centralized database for accident reports or accident repairs.
  Not all insurance companies disclose or share their accident information to Carfax. Carfax admits that there are thousands of accidents each day which will never show up on a Carfax report. Even if Carfax reports an accident, it cannot inform the buyer the extent of the accident damages, or the quality of any repairs.

• Carfax is a "history" report, not a “current” report.
  There will always be a time lag from when a negative incident occurs and when (or if) it get into a Carfax report. This time lag can be significant and allow a damaged vehicle to be re-sold before Carfax reports the negative information.

• Used car dealers know the limitations of a Carfax report.
  Some dealers knowingly buy vehicles with frame and accident damages but have a "clean" Carfax report. They sell these damaged vehicles to unsuspecting buyers by showing a Carfax report with “no structural damage reported" and “no accidents or damage reported to Carfax”.

GTFCU will be retiring routing numbers associated with two merged credit unions, St. Johns FCU and Texas Transportation FCU.  Starting April 30^th these numbers will no longer be valid and will need to be replaced with the GTFCU routing number - 314977337. See below for answers to common questions about this change.

1. What is a routing number?

Think of a routing number as an identification number for financial institutions. Similar to how your driver’s license number identifies you, a routing number identifies a credit union or bank for financial transaction purposes.

2. What types of situations do I use a routing number for?

A routing number is used in various types of transactions. The two primary examples are for direct deposit purposes like payroll; and auto-pay to a merchant, such as car insurance, cell phone and various other payments. Additionally, third party services like PayPal may be setup using a routing number.

3. What are the routing numbers being retired?

314088310 – Texas Transportation FCU

314988957 – St. Johns FCU

4. What do I need to do to switch the routing number?

You’ll want to contact your HR department for direct deposit changes, or any merchant you’ve setup the old routing number with to let them know of the change. In some cases you can update this info via an online system. Check with the merchant’s website to verify.

5. What happens if a transaction tries to come through with the old routing number?

These transactions will be returned to the initiating bank or credit union.