What is ‘Credit University’, you might ask? Uh, in the words of one Mercer Island student, ‘You were the best speaker we had all year’.

Credit University is a class-long presentation that teaches you how to avoid identity theft, protect and earn good credit, and save your money – this is all good stuff!

And in case you didn’t know what a Credit Union is, it’s Not-For-Profit place where you can do your banking, with little to no fees the majority of the time. When you use a Credit Union, you are an owner of the Credit Union, not just another customer turning a profit for some giant corporation.

This year’s Credit University sponsors are Obee, Salal, Seattle Metropolitan, Sound, and Verity Credit Unions. The King County Chapter of Credit Unions also supports this program.

Wondering why we went to them for support? When the big banks were asked help me teach you about money, every one of them said ‘No’.

If your school is located in Thurston, Pierce, King, or Snohomish counties, get in touch! We want to bring this fun, engaging presentation to your school. It’s cool, it’s free, it’s fun. Just get in touch with us at our website at www(dot)ConsumerUniversity(dot).com.

One of the FAQs that always comes from teens is when they should get their first credit card.  I explained that with the changes in the Credit Card Act, teens wouldn’t necessarily be able to obtain their own credit card when they turned 18 without meeting certain requirements.  The age of credit card consent now appears to be 21.

Instead of reacting with frustration, as I’d imagined, the audience burst into… applause? 

Indeed, they did.  It appears that the teen audience I spoke to thinks credit cards are just one thing too many for students grappling with so much freedom at one time.  As one student said, ‘I think it’s good to ease into the whole adult thing.  Credit cards just add too much pressure’. 

Whether they’re too much pressure, or teens are at a loss as to how to use these all-important financial building blocks, the good news is that credit unions are providing students with unbiased advice about how to wisely use credit cards.  Whether they utilize it at age 18 or age 21, these teens now have the skills to make safe, sound credit choices.

With the Senior Boards dominating the entire week, Juniors at Tahoma wanted the chance to get an edge on their own futures, and in particular, their finances.

During the 50 minute long Credit University presentations, three audiences had the opportunity to learn about the dangers of identity theft, the path to earning and keeping good credit, and how the two of those in combination result in additional resources that can be saved at a local Credit Union.

As usual, teens are always excited to learn about these topics in a way that appeals to their own interests. What was particularly nice about this event were how many students waited after class to shake my hand, tell me how they’re going to use the information, and to express their appreciation for my time.

If you’d like to bring credit union sponsored Credit University to your youth orgniazation this summer, get in touch with us here.

Melodi was really looking forward to her weekend.  Her friend had just gotten a new car, and they’d planned a ride into the city followed by a little exploration of downtown Seattle.  She had no idea she was about to be a victim of a crime.

Melodi knew she’d be walking around for a couple hours and decided to keep her purse safe, locked in the back of her friend’s car.  The hatchback had tinted windows that almost completely obscured the purse in the back of the car.  Almost, but not quite.

After an afternoon of fun, Melodi and her friend returned to the car only to discover the window had been smashed out.  Melodi’s purse was gone.  In her purse was her new digital camera, her iPod Touch, and a wallet that contained her driver’s license and debit cards.  The adjacent two cars had also been broken into.

Instantly, Melodi and her friend sprung into action and followed the protocol to limit the damage done.  First, they called the police.  Now with a police report in hand, Melodi will be ready to combat any potential financial issues that arise due to her identity in the hands of a criminal.  Second, she got a temporary license and shared her story with the department of licensing.  Third, she plants to go to www.annualcreditreport.com and check her credit within the next two weeks.  Doing so will help determine if someone has attempted to open any accounts in her name.  Finally, Melodi’s going to consider whether or not putting a credit freeze on her credit report is a good idea in the short term.

Because Melodi reacted so quickly, it’s likely she’ll stop an identity thief in his or her tracks if they try to use her personal information.  Knowing how to respond to a crime is just as important as how to prevent it.  If you want to learn more about protecting yourself from identity theft, how to manage credit, or how to maximize your savings, invite Credit University to your Western WA high school.

After learning about their teen risk factors for identity theft, how to build a good credit rating, and how their savings is maximized when located at a credit union, they wanted to know more.

During the 90 minute workshop one question kept coming up:  Why, when all the adults in their lives are struggling with so much debt, would a teenager ever want a credit card?  And if one is required, when should a teen considering applying for one?

After discussing the perameters of the Credit Card Act of 2009, students realized that unless they were able to prove adequate income or have a co-signor they wouldn’t be able to obtain a card in their own name until age 21.  Ok.  But why get one at all?

There are cases when making purchases with a credit card offers you distinct advantages over using a debit card.  Anytime I purchase something online I always use a credit card.  In the event that someone steals my card number and goes shopping with it online, I’m only liable for the first $50 spent on my card.  Some card issuers, however, offer zero liability to their customers for such theft, which is an added bonus.  Further, federal law says I’m free of the liability associated with that theft if purchase were made where the card was not physically present. 

There’s also an added benefit:  Wise use of a credit card establishes your credit history and raises your credit score.

While your debit card will only hold you accountable for the first $50 spent on your card, it requires that you notify the financial institution within two business days of the loss or theft.  In some cases, zero liability applies only when your PIN wasn’t used during the transaction.  As long as the theif didn’t steal your PIN along with your card number, you’re probably okay.

At the end of the day, the choice to get a card card is a personal one that involves multiple factors.  We’re all responsible for deciding our own comfort level with what we borrow, our ability to handle debt responsibly, and our capability to pay our bills on time. 

If you’re interested in learning about Credit University or about credit unions near you, contact us.

Cindy  knows full well the difference credit unions are making in the classroom.  Every year she invites the credit union sponsored Credit University program into her classroom at Nathan Hale High School in Seattle.  Students in class learn how to avoid identity theft, use credit wisely, and save for the future the smart way:  In partnership with a credit union.

Yesterday, Kegley’s students learned how a lost cell phone without password protection can make their social and financial identities easily accessible to identity thieves.  They also learned the importance of shredding their junk mail, and being smarter about what they post on their profiles. 

In addition to avoiding identity theft, students learned how being a victim of this crime can impact their credit.  Understanding the importance of earning and maintaining a good credit score was also emphasized, and at the end of the day, students knew that when it comes to earning interest on their personal savings, it’s rare to find anyone willing to pay them more interest on their savings than a local credit union.

Schools interested in bringing Credit University to their classrooms can reach us at ach (at) aliciahaus (dot) com.

‘My sister is getting a ton of magazines she didn’t order. Could someone have stolen her identity’?

The answer? Perhaps. Madeleine learned that her sister’s best course of action was to cancel the subscriptions and check her credit report. Those 18 and over can obtain their credit reports for free at www.annualcreditreport.com. Looking at her credit report will reveal if someone is using her personal information for more than just a prank.

Identity theft prevention, credit scores and how they work, and understanding how to get the best interest rate on their savings (pssst… it’s by banking with a Credit Union) are just some of the cool financial literacy morsels that Mr. Ley’s students got to snack on earlier this week.

If you’re looking for more information on identity theft, credit, and savings, check out these sweet resources.

One of those small gifts that’s easy to overlook, not often mentioned to our friends when reciting the list of cool things we received, are those checks from extended family.  The $25 from Grandma Jo, the $15 from Uncle Wiley… these are often the gifts from relatives living on a fixed income.  They want you to know they’re thinking of you during the holidays, and they’ve wisely decided money is a better gift than a pink Snuggie.

We often take these checks for granted because they’re a bit awkward to spend on one item.  They aren’t large enough to get us into a new pair of ski pants, but they’re a bit more than the price of  an album. 

I’d like to suggest that instead of spending these small checks the second we get them, we consider another possibility: Invest them.  Yeah, that sounds super boring… until you crunch the numbers and realize the possibilities. 

As teens, you have a serious advantage over adults when it comes to creating wealth.  We all have to spend two things to become wealthy:  Time and Money.   Time is free, Money has to be earned.  When you’re young, you are rich in time, but short on funds.  When you’re an adult, you’ve got more money, but you’re older so you’re short on time.

So how do you get started?  Easy.  First, if you don’t already have a ROTH IRA (a type of account where you can purchase investments for your future), ask your parents to go to a local credit union and get one opened up for you.  Second, deposit $50 into the account.  Third, add to that $50 when you feel like it and watch your interest compound over the years. 

If you do that this year, then add just $13 a month to it over the next 50 years, an 8% return on your money (TOTALLY doable over a 50 year period) will turn Grandma’s check into $105,000!

Reasonable rates of return (or ‘percent yields’) for teens who save over several decades range from seven to ten percent. Crunch the numbers on this calculator for yourself and decide how wealthy you want to be.