TCU Savers Club

Save Some Dough(!) By Spending a Little Time in the Kitchen

Going out to dinner once a week could cost a family of four up to $4,500 per year! Spending just a little time in the kitchen can keep costs down, and by controlling the ingredients yourself, it can be healthier than eating at some restaurants. Are you a whiz in the kitchen? Just click on "comments" below and share your favorite recipe with us!

Allowances Help Children Save

Having allowances can help children understand the concept of budgeting and saving, but you have to teach them.

If you decide to give an allowance, start one as soon as your children start recognizing money's worth–kids do this fairly early. Janet Bodnar, deputy editor of Kiplinger's personal finance magazine in Washington, D.C., stresses two points in her book "Dollars & Sense for Kids":

• Don't give an allowance until children are old enough to manage it, or until your children are at least six years old. There's no need to rush things and preschoolers generally don't understand the abstract idea of money anyway. Once children start first grade they begin learning about money in school, so they know if they get a $1 bill each week, it's equivalent in value to ten dimes or four quarters.
• Keep the system simple so you can manage it. "Denying kids an allowance doesn't make it easier to limit the amount of money they get their hands on," says Bodnar. Because most children will get the money out of parents anyway, it's better to teach them how to manage it themselves than allow them to nickel and dime you to death. Plus, using an allowance gives parents and children more control over the children's finances.

Contact TCU for information about setting up a savings account for your children. Our Treasure Chest savings account is designed specifically for children ages 10 or younger, and with a quarterly gift and newsletter, it's a fun and exciting way for children to save for the future!

TV, Phone, Internet: Can a Bundle Save You One?

If you're still paying a separate bill for each of your telecommunications services—TV, phone, and Internet—you're part of a dwindling population. Many consumers are "bundling"—getting all their services from a single provider. Bundles are popular because, for many subscribers, they offer significant savings and increased convenience. But they're not right for everyone.

For users who don't watch premium channels, make a lot of long-distance calls, or require high-speed Internet access, a bundle could result in paying for more than you need. There's also the issue of having all your services delivered through a single high-speed line to your home—an outage means you could lose your TV, phone, and Internet service all at once. And, once you bundle services, it can be more of a challenge to unbundle and change carriers.

If you do decide to bundle, shop around, but be aware that comparing service packages can be a challenge since any two bundles are likely to offer different channels, Internet download speeds, and calling plans.

Always evaluate a bundle based on regular rates, not short-term promotional rates that will end after three to 12 months.

And get every offer in writing, but don't be shocked if, between installation and activation fees and prepayment of the first month's service, your initial bill is as much as $100 more than you expect.

Despite all your efforts to find the best deal and the best service, brace yourself for a bumpy transition. Many consumers making the switch to a bundle find that the installation doesn't go as planned, customer service is lacking, or the initial bill does not reflect the promised promotional prices.

If you're not ready to join the masses switching to bundled service, appreciate the benefits of buying services a la carte: You can pick the best provider for each one and, except during a power outage, you're unlikely to find yourself cut off from the outside world.

If telecommunications and other monthly expenses are putting a strain on your budget, TCU can help. Visit us today, a representative can evaluate your needs and get you back on track.

Saving Practices Made Easy

It's easy to postpone starting to save for a later day, but a solid plan is key to success. By following some basic guidelines, you're more likely to achieve financial security.

Pay yourself first. Use automated transfers to get in the habit of saving. Money will be transferred from your account without you seeing it, which makes you less likely to miss it. Simply complete a form authorizing TCU to receive a portion of every paycheck and deposit it directly into your savings account.

Save 10% of your paycheck. The general rule of thumb is to save about 10% of each paycheck. If that seems too high, try 5% and work your way up to saving 10% of your earnings. Add 1% every year you get a raise until you reach 10%.

Know yourself. Examine your goals to determine which savings plan will work best for you. For example, don't invest all your money in an aggressive stock or mutual fund if you're conservative with your money. If you're saving for retirement, select a plan that will fit your financial needs down the road.

Realize that age matters. Always take into consideration how much time you have to save for your goal. If you are a recent college graduate, you have several decades to ride out the highs and lows of the market and can take advantage of more high-risk investments. If you're only a few years from retirement, you might not have the time cushion to afford to be too aggressive.

See the benefit of compound interest. The simplest way you can invest your money it to leave it alone and let it "compound" over time. You earn interest not only on what you save, but also on the dividends generated. The earlier and more you save, the more your money will grow.

Use dollar-cost averaging. This is the process of routinely investing a set amount of money over time, rather than all in one lump sum. It's a convenient savings method, particularly for beginning investors. For example, each month transfer $25 or $50 from your share draft account directly into an investment vehicle such as a traditional or Roth IRA. You reduce your overall risk from market fluctuations because your money buys more shares when the price of a share is down, and your money buys fewer shares when the price of a share is up. Bottom line: You've reduced your investment risk.

Use the Rule of 72. To figure out how long it will take for your investment to double with compound interest, use this rule: Divide 72 by the interest rate you expect to receive on an investment. For example, if your investment earns 4% interest, your money will double in 18 years (72 divided by 4 is 18).

©2006 Credit Union National Association Inc.

How much is that gas-guzzler costing me?

Young and old, rich and poor, everyone is feeling the pinch of outrageously high fuel costs. People are cutting into their budgets just to fill their tanks. Have you ever wondered how much you could save if you traded in that SUV or minivan for a midsize or compact car?

The average driver typically travels about 12,000 miles per year, and if you drive an SUV, chances are you're averaging just 13 mpg in your everyday commute. Driving a minivan? You'll get a slight increase at about 15 mpg.  You can significantly increase your fuel economy with a midsize car (22 mpg) or better yet, a compact car (25 mpg).

According to the American Automobile Association, the average price for regular unleaded gasoline is currently $3.64 per gallon after topping out at $4.11 per gallon in July. Here's a chart to show how much you'll pay in annual fuel costs based on driving 12,000 miles per year.   

FUEL COSTS	1 YEAR	5 YEARS
Regular-grade fuel at $3.64 per gallon
8-cylinder SUV (13 mpg)	$3,360	$16,800
6-cylinder SUV, minivan (15 mpg)	$2,912	$14,560
Midsize car (22 mpg)	$1,985	$9,927
Compact car (25 mpg)	$1,747	$8,736
Premium-grade gasoline at $3.84 per gallon
Luxury car (15 mpg)	$3,072	$15,360

As you can see from the chart above, you can save about $8,000 over 5 years just by driving a smaller car! Use that $8,000 you saved to pay off debt, fix up your house, or reinvest it into your TCU Savers Club Money Market account to accumulate even more!

Have you recently downsized your vehicle? Have you seen a significant increase in savings? Let us know!

Make Back-To-School Spending Part of Your Plan

The back-to-school season is the second largest consumer spending time of the year, with the average family spending about $300 on back-to-school items for one grade school through high school child.

Although the back-to-school season is already here, you can avoid falling into debt next year by including those expenses in your yearly spending plan. Make sure you budget enough money for school supplies, clothes, doctor check-ups, athletics, and books.

For more help saving for back-to-school spending, call or stop by TCU. We can help you develop a savings strategy.

©2008 Credit Union National Association Inc.

Government Auctions: Deals, not Steals

Don't let scams give government auctions a bad name. They're great places to shop for almost anything–from the ordinary, like a computer, to the unusual, like Jean Harlow's cigarette holder. And you often can buy what you want for a great price.

"We like to say that you'll get a deal at a Treasury auction, but you're not going to get a steal," says Britney Sheehan, public relations supervisor at EG&G Technical Services, Miami, the contractor that handles all U.S. Treasury Department auctions. The Treasury sells as much as $30 million in goods annually, at some 300 auctions around the country, including items seized due to drug trafficking, credit card fraud, trade violations, and other illegal activities. Or it may be property abandoned at ports of entry or for which taxes or duties were unpaid.

Cars and boats generally sell for fair-market value at Treasury auctions because of heavy bidding competition. But some other items stand out as big bargains. "Jewelry can be a fabulous deal at our auctions," Sheehan says. That's because people don't think of a government auction as the place to buy jewelry. Thus, bidding competition may be minimal and selling prices low. Buyers can feel assured of authenticity, as jewelry undergoes professional appraisal before it's auctioned. "If we say it's a diamond, it's a diamond," Sheehan says.

So how do you find out about government auctions and what they have for sale? A good place to start is USA.gov, the U.S. government's Web portal. There you'll find links to various federal agencies that auction seized or surplus goods, including vehicles, computers, furniture, land, houses, cameras, farm equipment, and much, much more. Plus, the site features links to state and local government auctions.

©2008 Credit Union National Association Inc.

How do you save money?

Even families with six-figure incomes can sometimes struggle to save money. Lack of a budget or simply not watching your expenses can lead to financial troubles. We'd love to hear your strategies for saving money. Do you clip coupons and shop for bargains, or do you just turn down the thermostat in the winter? If you have some tips you'd like to share, submit them in the comments below. Thank you!

What is a Health Savings Account?

A Health Savings Account is an alternative to traditional health insurance; it is a savings product that offers a different way for consumers to pay for their health care. HSAs enable you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis.

You must be covered by a High Deductible Health Plan (HDHP) through your employer to be able to take advantage of an HSA. An HDHP generally costs less than what traditional health care coverage costs, so the money that you save on insurance can therefore be put into the HSA.

You own and you control the money in your HSA. Decisions on how to spend the money are made by you without relying on a third party or a health insurer. You will also decide what types of investments to make with the money in the account in order to make it grow.