Financial Literacy Archive

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CREATE A BUDGET…IT’S A GREAT IDEA!

Friday, July 29th, 2011

 In these tough economic times, it is more important than ever for families to develop a budget and stick to it. Rainy-day funds, savings for college, or just making your rent payment can all be made easier with a budget. First Savings supports its customer’s efforts to budget and save by offering expert guidance. “A financial goal can be very motivating,” said Todd Hurley, Executive Vice President, Chief Retail Officer. “Whether you are saving for a family vacation, a down payment for a house or a new pair of shoes, if you stick to a plan, you’re likely to achieve your goal.” Putting together a household budget requires time and effort. We offer the following steps to create a budget:

• Be a Spending Sleuth. Track every penny you spend for a month. Keep receipts and write everything down. This will be an eye-opening experience and will help you see where you can cut back.

• Count Your Money. Determine the total amount of money coming in. Include only your take home pay (your salary minus taxes and deductions). Your income may also include tips, child support, investment income, etc.

• Itemize, Categorize, Organize. Review the records and receipts you’ve been collecting over the last month. Categorize your spending using a budget sheet, budget sheet like the one offered by the American Bankers Association Education Foundation.

• He Shoots, He Scores. Set a realistic financial goal and develop your budget to achieve that goal. Subtract your monthly expenses from your monthly income. Find ways to cut spending and set limits on things like entertainment expenses.

• Save, Save, Save. Make one of your financial goals to save a certain dollar amount each month. Start an emergency fund if you don’t already have one. You never know when you may need it.

• Stick to it. Keep track of your spending every month. Update your budget as expenses or incomes change. Once you achieve your financial goal, set another.

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FDIC Releases Alert on Fraudulent Emails

Wednesday, July 20th, 2011

The FDIC said that it has received reports of fraudulent emails that appear to be from the agency. The emails appear to be sent from FDIC email addresses and have subject lines such as “Update for your banking account,” “ACH and Wire transfers disabled,” and “Banking security update.” The emails and links were not sent by the FDIC and seek to collect personal or confidential information or to load malicious software. The FDIC does not directly contact bank customers or request bank customers to install software upgrades. Read more:  http://www.fdic.gov/news/news/SpecialAlert/2011/sa11021.html

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Fraudulent E-Mail Alert

Friday, June 3rd, 2011

Special Alert 

 SUBJECT: Fraudulent E-Mails Claiming to Be From the FDIC Summary: E-mails that claim to be from the FDIC are reportedly in circulation. The Federal Deposit Insurance Corporation (FDIC) has received numerous reports of fraudulent e-mails that have the appearance of being from the FDIC. The e-mails appear to be sent from various “@fdic.gov” e-mail addresses, such as “subscriptions@fdic.gov,” “alert@fdic.gov,” or “accounts@fdic.gov.” They have subject lines that read: “FDIC: Your business account” or “FDIC: About Your Business Account.”

The e-mails are addressed to “Business Customer” or “Business Owner” and state “We have important information about your bank” or “…financial institution.” They then ask recipients to “Please click here to find details.” They conclude with, “This includes information on the acquiring bank (if applicable), how your accounts and loans are affected, and how vendors can file claims against the receivership.”

These e-mails and the link included are fraudulent and were not sent by the FDIC. Recipients should consider the intent of these e-mails as an attempt to collect personal or confidential information, or to load malicious software onto end users’ computers. Recipients should NOT access the link provided within the body of the e-mails and should NOT, under any circumstances, provide any personal financial information through this media. Financial institutions and consumers should be aware that other subject lines and modifications to the e-mails may occur over time. The FDIC does not directly contact consumers in this manner nor does the FDIC request personal financial information from consumers.

For your reference, FDIC Special Alerts may be accessed from the FDIC’s Website at www.fdic.gov/news/news/SpecialAlert/2011/index.html. To learn how to automatically receive FDIC Special Alerts through email, please visit www.fdic.gov/about/subscriptions/index.html. Questions related to federal deposit insurance or consumer issues should be submitted to the FDIC using an online form that can be accessed at http://www2.fdic.gov/starsmail/index.asp.

Sandra L. Thompson Director Division of Supervision and Consumer Protection

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First Savings and ICBA Offer Tips for Travelers

Friday, May 27th, 2011

With Memorial Day being the kick-off of summer,  many Americans are planning to hit the road or the skies for their much-anticipated summer vacation, the Independent Community Bankers of America (ICBA) and First Savings want consumers to have the information they need before they leave home so they can keep their money safe.

“Nothing can ruin a vacation faster than losing your wallet or running out of funds, so plan ahead and talk to your community banker about how you can protect your money while traveling both domestically and abroad,” said Sal Marranca, ICBA chairman “Since community banks are relationship bankers who work one-on-one with their customers, they can help customers be better prepared for travel emergencies. And in the event that something unfortunate does happen, they are ready and willing to help.”

Financial professionals agree that the safest and most convenient way to travel with your money is to take a small amount of cash with you.  It’s also a good idea to carry a debit, credit or ATM card. These cards are convenient while traveling because they are easy to carry, easy to use and often offer the lowest fees and the best exchange rates.

However, travelers still need to plan ahead to be prepared.  To help, ICBA and First Savings offer these tips to consumers about what they need to take care of before they take off:

  • Let your community bank know when and where you will be traveling so that you will avoid any potential for fraud alerts when out-of-the-ordinary transactions are posted.
  • Call or stop by your community bank to find out what ATM or debit card fees you may be subject to in this country and abroad.
  • If you’re traveling overseas, keep in mind that ATMs in many countries only accept four-digit personal identification numbers (PINs) and some countries have keyboards with numbers only, while others do not acknowledge zeros. Ask your community bank if you should create a new PIN for your account before you take your trip.
  • Carry a back-up card that you keep in a separate place. Families or couples may get even greater back-up coverage if each person takes a different card.
  • Make copies of all the cards you’ll be carrying. Be sure to copy the front and back of the card. Take a copy with you and give a copy to someone you trust back home. Be sure to also include the security code for the card and the customer-service phone number.
  • Bring a list of emergency phone numbers, but remember, 800 numbers can only be used in the United States and Canada. Be sure to get a number for your bank that you can call if you’re out of the country.
  • Many credit cards provide travel accident insurance and traveler’s assistance. Ask your community bank what special services are available through your card.
  • Check your balance before you leave. Know the limits on how much you can withdraw. Save all your receipts.

“Whether your destination is overseas or closer to home, it really is better to be safe than sorry,” Todd Hurley, Exec. VP, Chief Retail Officer of First Savings said. First Savings is here to help you prepare.”

For more information about what to do if you your card is lost or stolen or if you need additional help, visit http://usa.visa.com/personal/using_visa/travel_with_visa.html or http://www.mastercard.us/support/lost-card.html. 

About ICBA

The Independent Community Bankers of America, the nation’s voice for community banks, represents nearly 5,000 community banks of all sizes and charter types throughout the United States and is dedicated exclusively to representing the interests of the community banking industry and the communities and customers we serve. For more information, visit www.icba.org.

Posted in Financial Literacy, Retail Banking | No Comments »

Your Financial Records: What to Toss and When

Friday, April 15th, 2011

Bank statements, credit card bills, canceled checks and other documents can be useful for tax purposes, as proof of a transaction or payment, or for other reasons. But how long should you keep them? 

FDIC Consumer News can’t tell you when it’s safe to throw away financial documents. One thing to remember, though, is that federal tax rules require you to have receipts and other records that support items on a return for as long as the IRS can assess you additional tax. 

“In very general terms, because the IRS has about six years to assess additional tax if you underreported your income by more than 25 percent, many tax advisors recommend holding all tax records for about seven years, building in extra time for any unforeseen delays in processing your return,” said Rick Cywinski, an FDIC tax policy manager. He also noted that the tax period is unlimited if the IRS suspects fraud. 

With tax considerations in mind, here are suggestions that may be reasonable for many people. 

Credit card and bank account statements: Save those with no tax significance for about a year, but those with tax significance should be saved for seven years. 

Canceled checks: Those unrelated to anything you claimed on your income tax form and not needed to show you’ve paid a bill or debt probably can be destroyed after you’ve verified that your bank statement is correct. But canceled checks that support your tax returns, such as charitable contributions or tax payments, probably should be held for seven years. 

And, you may want to keep indefinitely any canceled checks and related receipts or documents for a home purchase or sale, renovations or other improvements to a property you own. But once a home has been sold and another seven years have passed, checks related to renovations or improvements can be destroyed. 

Of course, many banks no longer send cancelled checks, although they may provide copies of the originals. “You can keep the copies of your tax-related checks if you get them from your bank, but if you don’t get copies with your statement, you have some options,” said Evelyn Manley, a Senior Consumer Affairs Specialist at the FDIC. 

“The most conservative approach is to order copies of important checks soon after your statement arrives,” she said. “Another is to keep the information on your bank statement to order copies if you’re audited in the future because, in general, banks that do not return original checks to customers are required to keep copies of checks for seven years.” 

Also, she said, if you keep records electronically, be sure to back up your data. You can store it in various ways (on CDs, flash drives and so on), but as old technology is no longer supported, you will need to transfer your old data to new media. Another option is to research different companies that provide backup storage online, either free or for a small charge. 

Deposit, ATM, credit card and debit card receipts: Save them until the transaction appears on your statement and you’ve verified that the information is accurate. You may make an exception for receipts for expensive items. If they are under warranty or you have to file an insurance claim, the receipt may be helpful. 

Finally, before tossing away any document that contains a Social Security number, bank account number or other personal information (especially financial information), shred it to avoid becoming a victim of identity theft. 

For additional guidance on what records to toss and when, ask your accountant, attorney or another trusted advisor. 

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