NEWS YOU CAN USE

News You Can Use features finance-related articles that may be of interest to our members and consumers in general. Check back periodically for new stories and updates to old ones!

Holiday Topics | Identity Theft | Managing Your Credit | Tax-Time Topics | Kids & Money | Miscellaneous

Holiday Topics

Tip Your Helpers For The Holidays

Posted November 2004

The giving season is upon us. For many people, that means deciding whom to tip and how much. Plan to include both the service people you tip regularly throughout the year, such as your hairstylist or barber, as well as those you don't, such as a cleaning person, according to Reader's Digest.

How much you tip will depend on how long the person has been doing work for you, how close you are, and the typical amount for someone in that position.

Although we list some suggested amounts, remember that these are just that--suggestions. Give only what you can afford.

• Babysitter - Two to four nights' pay, more if you use the sitter several times a week.

• Barber or hairstylist - Price of one haircut or more if you're a long-time customer.

• Delivery person - $10 to $15 if it's someone you see repeatedly.

• Manicurist - $5 to $15

• Mail carrier - U.S. postal regulations prohibit mail carriers from accepting cash or cash equivalents (gift certificates); unsolicited gifts of up to $20 in value, such as candy or gloves, are allowed.

Sources: Reader's Digest and Kiplinger's Personal Finance

Shop At Home For The Holidays

Posted November 2004

Does the thought of crowded malls have you feeling like the Grinch? Shopping online can save time and minimize stress, but know a few simple rules before you load your virtual sleigh:

• Only buy from familiar companies. Confirm the seller's contact information in case you have questions or problems.

• Protect your privacy. Read and understand the company's online privacy policy and keep any personal information, passwords or PINs private. Look for these signals indicating that you have entered a secure web page:

  • A screen notice that says you're visiting a secure site;

  • A closed lock or unbroken key at the bottom of your screen; or

  • The first letters of the Internet address you are viewing change from "http" to "https."

• Pay safely. After you review all terms of the sale, such as cost for shipping, delivery date, and return policy, you're ready to buy. Use your Columbus Metro Visa card, because credit cards offer consumers the most protection. Be sure to print transaction records and any other useful information pertaining to your purchase.

Source: Federal Citizen Information Center

Identity Theft

6 Tips For Better Online Passwords

Posted April 2007

If you're like most consumers, you probably have access to a lot of personal information online. Many businesses encourage their customers to use the web, which means creating a user ID and password for each web site you use.

According to security experts, the password is the weakest link in the chain of security protecting your information. Keep these tips in mind when creating online passwords:

1. Don't use the same password for each web site. If your password is compromised, then all your accounts are vulnerable.
2. Don't use easy passwords. A good rule of thumb: Don't use a word in the dictionary. Many password-cracking programs have dictionary lists to help crack password codes.
3. Don't use a keyboard pattern. For example, qwerty and qetuo[ are both pattern passwords--the first one uses six adjoining keys, while the second uses every other key in a row. Password-cracking programs are familiar with these patterns.
4. Passwords should contain uppercase, lowercase, numbers and special characters. By varying characters and case, you make it much more difficult for your password to be compromised.
5. Don't let Windows remember your passwords. There are many programs freely available on the Internet that can break these passwords instantly.
6. Change your password often. Some sites require you to change passwords every 30 to 90 days. The more frequently you change passwords, the better. If you have any reason to believe one of your passwords has been compromised, change it immediately.

Shield Yourself From Scams & Swindles

Posted May 2006

Congratulations, you have been approved for a lump sum payment of $815,810.00...

Make $10,000 a month by working from home just a few hours a week...

Deposit the enclosed check for $5,000 and send $2,500 back to us by Western Union or MoneyGram...

Crooks take advantage of innocent consumers daily through a variety of scams like those highlighted above. Unsuspecting consumers who fall prey to these offers can become identity theft victims or lose hundreds, even thousands of dollars, so it pays to be on your guard.

You can protect yourself from swindlers and scammers by keeping these general guidelines in mind as you evaluate any offer you receive in the mail, on the Internet, via email or by phone:

• Remember the old adage, "If it sounds too good to be true, it probably is."
• Don't deal with unrecognized businesses that have no telephone number or use a post office box or mail drop instead of a legitimate street address.
• Be suspicious of any offer loaded with pressure words, such as "urgent" or "final deadline."
• Ignore immediate requests for a check, money order or cash to be picked up by a courier or sent to a post office box or mail drop.
• Don't do businesses with companies that don't answer your questions or give only vague answers.
• Never provide personal or financial information in response to an unsolicited letter or email.

If you receive an offer and you're not sure if it's legitimate or not, you may want to consult one or more of the following:

Your local Better Business Bureau. Find your local bureau at www.bbb.org.

Your state Attorney General. (In Ohio, you can reach the Attorney General's Consumer Protection Office at 800.282.0515.)

The Federal Trade Commission's Consumer Response Center at 877.FTC.HELP (382.4357)

Web-Only Extra: Click here for details on the five most common scams and to view the FBI's Fraud Alert poster.

Don't Get Hooked By A Phishing Attack

Posted September 2004

Not so long ago, a typical thief might break into your home to steal money or other possessions. Today, a new "sport" is attracting high-tech thieves--phishing.

Phishing involves emails that direct consumers to official-looking web sites to "correct" or "update" financial information. The email may claim to be from a financial institution or government agency, but is actually sent by phishers. Unsuspecting consumers who provide the requested information are actually giving it to identity thieves. Unfortunately, these phony emails have successfully reeled in thousands of unsuspecting victims.

The Federal Trade Commission recommends the following tips to help you avoid getting hooked:

1. If you get a pop-up or email message requesting personal or financial information, don't reply or click on the link in the message. Legitimate companies (including Columbus Metro) will not ask you for information in this way.

2. Be cautious about opening attachments or downloading files from email messages.

3. Never send personal information, like account numbers, via email.

4. Review your account statements for accuracy as soon as you receive them. If they're late, call the company to confirm the billing address and balance.

5. Use antivirus software and keep it updated. Run a firewall, particularly if you have a broadband connection.

6. Report suspicious activity to the FTC at www.ftc.gov and forward suspicious messages to spam@uce.gov.

Managing Your Credit

FACT Act Helps Consumers Build Credit, Prevent Fraud

Posted December 2004; updated January 2007

A new law, the Fair and Accurate Credit Transactions Act of 2003, helps consumers understand their credit rights and fight identity theft. Most of the FACT Act changes were effective by the end of 2004.

Among the key provisions regarding credit reports:

• Consumers must be able to get credit scores from credit bureaus for a reasonable fee.

• Credit bureaus must provide a free credit report annually to consumers who request a copy. You can request one by visiting www.annualcreditreport.com, calling 877.322.8228 or writing the Annual Credit Report Service, PO Box 105281, Atlanta, GA 30348-5281.

• Financial institutions who provide information to credit bureaus must ensure the accuracy and integrity of that information.

• Financial institutions must notify members before or within 30 days after the fact that they're reporting negative information to credit bureaus.

And regarding identity theft protections:

• The Federal Trade Commission will develop model forms to standardize how consumers report identity theft to creditors and consumer reporting agencies.

• Credit bureaus must share identity theft complaints, and consumers need only make one call to receive advice and set off a nationwide fraud alert.

• Merchants must leave off all but the last five digits of a credit card number off store receipts.

• Active duty military personnel can place special alerts on their files

Tax-Time Tips

Tax-Time Tip: Depositing Refund Checks

Posted February 2005

You've got your refund check in hand, ready to deposit. Keep in mind that federal banking and securities rules, tightened after 9/11, say that a deposit must match the account's ownership. If you file taxes jointly, you cannot deposit a refund check made out to both parties into an account owned by just one of you--even if you've both signed the check. To do anything other than deposit the funds to a joint account, both parties must be present with valid photo identification.

Funds from government-issued checks are available immediately. This policy, however, does not apply to refund anticipating checks issued by tax preparers like H&R Block and Jackson Hewitt. Our policy is to make up to $1,000 from such checks available immediately; the remainder will be on hold in accordance with our normal guidelines.

Tax Records: What To Keep, What To Toss

Posted January 2005

When it comes to tax-related documents, good recordkeeping means knowing what to toss and what to keep and for how long.

Here are a few tips:

Track your expenses - Throughout the year, collect receipts documenting tax credits and tax deductions. Cash payments require a dated and signed receipt showing the amount paid and a description.

Organize home records - Keep closing statements, purchase and sales invoices, and proof-of-payment and insurance records for your home. Keep Form 2119 if you sold a house before 1998. Keep improvement records until you sell your home.

Hang on to W-2s, 1099s and brokerage and financial statements for at least three years after you file. Some experts advise keeping copies of tax returns forever, and supporting documentation for seven years. IRS guidelines state that you should keep documentation for deductions at least three years, but if you underreported income by 25%, the IRS can audit up to six years later. If you filed a fraudulent return or didn't file one at all, an audit can occur at any time.

Shred or burn receipts that don't document a tax deduction or that aren't for large purchases or warranties. Shred credit card receipts that don't contain tax-related expenses after matching them to your monthly statement. Match paycheck stubs against your annual W-2s, then shred the stubs. Verify quarterly retirement and savings statements agains the annual summary, then shred.

Kids & Money

Teaching Kids About Money

Posted April 2008

Teaching kids about money is one of the biggest challenges facing any parent. If you can teach your children to become regular savers and responsible borrowers while they're young, they'll be prepared when they're out on their own. Here are some age-appropriate ways to start those lessons now.

Younger than age 5

• Use coin banks to help children learn how to identify coins and count money.
• Give children small change to spend occasionally when you go to the store. (You may want to limit options to save time and reduce conflict.)
• Use the Credit Union National Association's "Thrive by Five^TM: Teaching Your Preschooler About Spending and Saving," a free program available at www.creditunion.coop.

Ages 5 to 10

• Consider a weekly allowance so kids can get hands-on experience managing money.
• Let children save for, and buy, something they really want. Rewards influence savings habits, so tie saving to spending.
• Teach "Save, Spend and Share." Help your child divide his or her allowance among three jars. Use funds in the "Save" jar to open a savings account. Specify the expenses they must cover out of their "Spend" jar. And encourage giving to your church or a charity from the "Share" jar.
• Provide opportunities to earn extra money by doing jobs not included in regular responsibilities.

Ages 11 to 14

• Include children on shopping trips to teach them what things cost and smart shopping techniques.
• Encourage odd jobs like babysitting, yard work or pet care.
• Encourage children to use their own money for beyond-the-basics clothing and accessories.

Ages 15 and older

• Discuss savings plans for long-term goals, like college or a car.
• Consider giving teens a seasonal clothing allowance separate from their regular allowance. After setting guidelines, let them make their own choices.
• Help financially responsible teens open a checking account and use a debit card.

Columbus Metro offers two programs to help you teach your kids about money: the Metro Kids Club featuring Kirby Kangaroo for children 12 and under, and the CU Succeed^® Teen Financial Network for those ages 13 to 17. For more information about either program, call, stop in or visit www.columbusmetro.org/savings.html.

Miscellaneous

ATM Robbery Tip Is False

Posted January 2007

The Federal Bureau of Investigation is warning consumers about a rumor currently circulating by e-mail. According to the e-mail, if you're being robbed at an ATM, you can enter your PIN backwards to summon police. The FBI advises that this is completely false and could actually put you in danger if the robber becomes impatient or angry. For real ATM safety tips, visit www.columbusmetro.org/atmsafety.html.