You could give them myriad treats to celebrate Valentine’s Day, but I’d like to ask you to consider giving them something a large portion of my generation (Gen X) may never have as a result of the current economy: Financial Security.

Start your kid a ROTH IRA for Valentines Day. You can open one at any licensed or charted financial institution. This is a retirement savings account that allows your kid(s) to use this money tax free when they retire. Yes, I know what you’re thinking. The markets are volatile. No one knows what’s going on with corporations or government or how it will impact the future.

The truth is that regardless of the answers to those questions, your kids will have a future. And they will have to navigate it financially.

If you open a ROTH IRA for your kids today with just $50, and they contribute to it just $100 over the course of an entire year (easy to do when you think of birthday gifts, jobs, chore money) each year, that’s $133,899 more than they’d otherwise have through their 401(k) in their workplace.

And if you can get your kids to invest $500 a year into this account? They’ll be sitting on an extra $646,000 when they will truly need it. That’s serious money.

When you’re thinking about the Valentines in your life today, I just want to ask you to consider that instead of more candy, more cakes, more cards and stuffed toys, you consider investing in your kids’ lifetime of smiles, rather than just one today.

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.

In addition to receiving information about how to contact their regulator with questions regarding the financial service providers they’re using, the group received information about how to safeguard their investments in volatile markets, how to avoid investment fraud, the role of their state regulator, and how bringing investor education into their classrooms promotes critical thinking skills in addition to creating educated investors.

Attendees realized that their students, their co-workers, and fellow community groups could benefit from IEIYC presentations in their community.

At presentations end, two attendees had expressed interesting in bringing this program to their school for their students and their co-workers. Fully funded with a generous grant from the Investor Protection Trust, they appreciated an opportunity to bring non-commercial investor education to their schools and towns. 

If you would like to bring this free, non-commercial presentation to your WA State venue, please contact Alicia at ach at aliciahaus.com.

The impact the recession had on my business impeded my ability to meet my retirement savings goals.  While I’ve long kept emergency savings on hand, I didn’t want to tap those reserves, my current security, in exchange for my future financial well-being.  Determined to get through all the changes and find a way to save for the future I hunkered down and began experimenting with cutting back. 

There was only one problem:  I was already as cut back as one can get.  The nature of my work requires a smartphone and I’d previously negotiated an uber good rate.  I get my produce at the farmer’s market when it’s open, and when it’s not I buy what’s on sale.  My friends and I potluck more than we go out (which ends up being more fun, btw).  Following my mother’s lesson, I keep the lights off unless I’m in the room.  I was doing a good job on the frugality front.

Already daunted I got the ultimate blow on my scale. Yep, while most people lose weight when they get divorced,  Alicia the contrarian had managed to  pack 10 on.  Lovely.   Enough was enough.  I could get divorced, move and weather financial changes, but there was no way on earth I was doing this FAT!

I only watched TV from the treadmill.  I got a dog, and he and I started walking 3 to 6 miles a day.   After a lifetime of eating pretty darn healthfully, I actually started counting calories  and figured out how many I should eat in a day.  I struck a  balance that allowed me to drop 3 sizes and feel good not only about myself, but about all the other stuff. 

 I now had a ton of clothes I no longer needed.  I also realized that in my previous life I’d been suffering from excessive weight not only on my waistline, but in my closet as well.  I was in possession of 27 pairs of jeans.  Twenty. Seven.   How did I unwittingly manage to collect  at least 5 pairs of jeans, per year, over the last half decade?  This totally goes against my belief about excessive consumerism at the expense of financial goals.  But obviously, it didn’t.  I was guilty of mindless denim consumption,  and I was self-imposing a sentence of downsizing my closet.

Everything I hadn’t worn in 12 months was designated  for Goodwill or the local consignment shop.  I schlepped  8 bags of clothes out of my house and amazingly, 6 weeks later I picked up a check for over $300!  While that money wasn’t entirely going to make up for my retirement savings shortfall, it had me looking through the rest of my house and realizing that I have the same problem with books that I did with clothing. 

While selling my clothes and my books won’t fully stock my retirement account, guess what?  I no longer need a three bedroom house to hold all the stuff I thought I couldn’t live without.  I will be downsizing shortly and that will create the resources I need to meet my savings goals.

Certainly this isn’t always the answer, but sometimes finding the money is simply about shifting your perspective.  And one year later, I find myself wholly grateful for the shift.

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.

“I receive funding from social programs that pay my tuition and support my kids.  My aid checks are based on what I have in my accounts.  How do I save for the future when it might reduce my aid”?

Christina has a great point.  While ideally we have to look at our dollars in terms of how they can support us today, tomorrow, and in the event of an emergency, there are times when saving is difficult for reasons other than the size of our paychecks.

If you’re applying for a student loan or weathering hard times with the support of some sort of aid program, know the rules.  Research the program before you apply.  Find out what could limit your ability to be accepted.  Inquire about the maximum dollar amount that you can save and invest prior to impacting your eligibility for the program, and see if retirement account balances, such as an IRA or Roth IRA, are exempt from qualifying resources.

Living without an emergency savings account is like skydiving without a parachute:  It rarely ends well.  Simultaneously, these aid programs help us earn the bigger paycheck that will eliminate our need for aid.  Seek a balance where you can get the support you need while squirreling away just a bit for that inevitable rainy day.

Over the course of two days, all students received an amazing array of investor education resources from the Investor Protection Trust.  The WA State Dept. of Financial Institutions also contributed their booklets and brochures designed to support efforts to save and invest safely and wisely.

60 teens spent this school week learning how to become the next generation of successful business professionals.  Divided into teams and led by educators and business professionals in tandem, students competed with one another over the course of the week while running a business simulation to become the most profitable business. 

In addition to learning how to run a lucrative business, these teens learned about the stewardship responsibilities associated with being a successful professional.  Learning how to treat value co-workers, to respect the environment, and how to plan for emergencies beyond our control – all of these are skills needed in today’s workplace.

Students also had the chance to learn about creating and building their own most profitable life.  Through a generous grant from the Investor Protection Trust and the Support of the Dept. Of Financial Institutions, teens heard the Investor Education in Your Community presentation and learned about the magic of compounding interest and the ease with which tomorrow’s nest egg is created by a commitment to saving just a little bit each and every day.

When the audience was asked who would be starting on the path of saving and investing for the future, over 75% of the hands in the room went up. 

When investor education reaches the ears and eyes of teens, everybody wins.