TCU Savers Club

The Bucket Budget

You'll need two checking accounts and one high-yield savings account, like the TCU Savers Club Money Market Account. First, figure out how much of every paycheck you want to put toward savings. Have that automatically sent to the savings account, which will fund your future goals (vacation, retirement, college fund, etc.).

Send the rest of your paycheck to checking account No. 1. You'll use this account to pay monthly fixed expenses, such as mortgage and utilities. These bills will be paid using Internet Bill Pay.

Figure out your monthly surplus in this account after your recurring bills, divide by four, and set up a weekly automatic transfer for that amount to checking account No. 2. This is for variable expenses like groceries, entertainment, and eating out. Two rules: You can't transfer more money over until the next week, and you can't use credit cards.

Vacations: Save Before You Set Sail

Your mind wanders to crisp-blue skies and romantic sunsets, salty ocean breezes and sand between your toes. Then your telephone rings and you snap back to reality. There are no blue skies or ocean breezes, just your computer monitor staring you down. Do you need a vacation?

Budgets are tight, but with some disciplined planning and money-saving tricks, that dream vacation can become a reality.

Be careful with plastic. Don't finance your entire vacation on your credit card. That doesn't mean it's off limits, but relying solely on plastic will only lead to stress and heavy interest charges down the road.

Save, save, save. Try to set aside extra money every paycheck in a TCU Savers Club Money Market Account or a Vacation Club Account. Decide how much you want to have on hand to start your trip. Divide that total by the number of paychecks until vacation, then save that amount in your TCU Savers Club Money Market Account or a Vacation Club Account. If you are not able to save this much, take a look at your spending habits. Are there places you can make cuts?

Plan ahead. Booking airfare, hotels and rental cars in advance could save you a bundle. Consider using public transportation to save cash on a rental car or taxis. And, travel midweek for the best deals. Talk to TCU Travel for the best deals and tips on planning a trip.

Hotel deals. You may be able to pick the price you pay for your hotel room. Do some searching before booking a full-price room.

If your savings come up short, see TCU for low-interest loan options.

Save money and secure your dream vacation. Let TCU help.

What New Grads Need to Know About Money

As the American economy waivers, it's increasingly important for students to be financially savvy. The majority of high-school and college graduates, however, are ill-prepared to handle the basics of financial management. From credit cards and loans to simple budgets, young consumers are often puzzled, even educated ones. Some experts propose state legislation requiring students to take a personal finance course by the time they graduate from high school. Until then, it's parents' responsibility to teach their kids financial basics and help them make the right choices. 

These are key money skills young grads need to know:

• Track spending. Write down everything you buy for a month to see where and how much you're spending.
• Budget. Look at your income and spending habits. Allocate for weekly needs, wants, and impulses within your budget. Surprises happen, so let yourself break the budget. Just remember to make up for it in the coming weeks. 
• Use your checking account to help budget and track income and spending. You need to know how to write a check, how to keep a check register, and when to balance your account. Remember there are consequences for overdrawing an account. 
• Remember, credit cards are convenient but risky. Credit means you're borrowing money to repay from future income. Credit is a cost, and making the minimum payments will cost you even more. Credit cards are accepted universally and are good to have in emergencies. They also help establish credit history, so make sure to set personal limits and stick to them. 
• Develop good consumer skills to make money go further. Buy necessities wisely and practice comparison shopping by looking online.
• Don't be afraid to ask for help. Mom and Dad, your R.A. (resident advisor), or even a friend can help you sort through your bills and get on the right track. 

How Did You Do?

The holidays are finally over and it's almost time to begin the new year. When it comes to shopping, how did you do? Did you stay within your budget or did you go over? Did you use funds from your Holiday Club or are you now thinking of opening one? 

Shop Safe Online, for Convenience and Bargains

If you're not already a cybershopper, you could be missing out on many benefits:

• Online shopping saves gas and time.
• It often offers free shipping.
• Online coupons are common.
• Online price comparison shopping tools, along with product review and rating systems, can help you find the best product at the best price. 
• Many online retailers, and virtually all the big ones, let you track online where your package is en route to its destination—whether you're shipping a gift across the country or to your own address.
• If you have a disability, online shopping makes shopping a breeze instead of a chore.
• You can shop around the world for things you can't find locally, 24 hours a day and seven days a week.
• Small business owner? You can shop for your business without leaving your workplace unattended.
• Even if you decide to buy at a local brick and mortar store, you can do all your research online to guide your selection and save time and footwork.

For all the benefits, you still have to keep your consumer smarts at the ready. Here are ways to shop smart online:

• Make sure there is a secure payment and checkout system—look for the https (s for secure) in the URL and a closed padlock on the browser frame once you are ready to check out and disclose your payment information.
• Set up a strong password, one that includes upper and lower case letters as well as numerals and symbols.
• Know the refund and return policy. You'll almost always have to pay to ship a return, so this is where all your online research cuts down on those expenses.
• Check seller reputation by searching for user feedback and reviews.
• Pay attention to the promised delivery date; backordered items might not arrive in time for a gift or special event.

Black Friday Is Finally Here

Well, today's the day. Black Friday. The busiest shopping day of the year. Retailers are slashing prices and pulling out all the stops in order to get American consumers to open their wallets. Are you shopping today? Where are the best deals? Are you fighting the crowds or shopping online? Let us know in the Comments section.

$1.79 for gas? Really???

$1.79. That is how much I paid for gas yesterday. Since my tank was 3/4 of the way full, I didn't really need gas, I just bought it on principle. If you did the same thing, then you may already realize that you are paying about $2.30 less per gallon than you did in July when gasoline spiked to around $4.13 a gallon (at least in my area). I drive a 2007 Nissan Sentra and I probably get better milage than most cars on the road–PLUS–I don't even drive that much. The question is, if I'm saving about $50 a month in fuel costs, how much are other people saving? What do you plan to do with your savings? Share your comments below.

Act Quickly to Correct Credit Report Errors

Credit report errors can be as simple as a misspelled name or an outdated address. Or they may be more serious, such as placing another person's debt on your credit report.

Some errors may be the result of identity theft, which occurs when someone deliberately steals your personal information to gain approval for credit or loans.

To check your credit report for errors, you can get a free copy from each of the three credit reporting agencies once every 12 months by calling 877-322-8228 or going online to www.annualcreditreport.com. You can check all three companies at the same time, or order a report from a different company every four months to monitor your report throughout the year.

Filing a ‘dispute'
You should "dispute" inaccurate information on your report by contacting the appropriate credit reporting agency.

There are three major credit reporting agencies:

• Equifax, 800-685-1111, or www.equifax.com;
• Experian, 888-397-3742, or www.experian.com; and
• TransUnion, 800-916-8800, or www.transunion.com.

Since errors often appear on more than one report, you may need to contact all three agencies to make corrections.

You also should contact the Federal Trade Commission at 877-382-4357 or online at ftc.gov to get a copy of the publication, "How to Dispute Credit Report Errors."

Document everything
Always document every step you take to fix credit report errors:

• When making telephone calls, record the time, the date, the name of the representative who handled the call, and any action that resulted.
• When sending a letter, make copies of all letters and all materials that document your claim. Never send originals. Send materials by certified mail with "return receipt requested."

Be persistent
Credit-reporting agencies are required to investigate disputes and give you a written report of the results. This process typically takes 30 days to 45 days.

In some cases, you may need to work with creditors directly to address inaccurate information.

Throughout the process, it pays to be persistent. By identifying and correcting credit report errors, you can protect both your financial reputation and your pocketbook.

If you have questions about credit report errors, the professionals at TCU also are available to help.

Cut Holiday Expenses, No Scrooge Required

There are plenty of ways to have fun, create lasting memories, and avoid the "Bah, humbug!" approach to the coming holiday season, despite the economic downturn and strain on family budgets.

Consider making a few changes this year that are kinder to your budget and that free up valuable time for family and fun:

• Draw names. Establish a new tradition of limiting the number of people for whom you purchase gifts, as well as the dollar amount spent on each gift. Chances are, other family members are in the same financial boat. But don't wait until mid-December to bring up the subject--the earlier, the better, before anyone starts shopping. This approach also works well among groups of friends who in previous years purchased gifts for each other's young children.
• Create coupons. If you ask Grandma whether she'd like another expensive sweater or a coupon from a grandchild to make cookies together, guess which one she'd likely choose! Handmade coupons for adult children or grandchildren to give elderly relatives are welcome treats. Examples: running errands, spending an afternoon in the park, cooking a meal together, shoveling the sidewalk, raking leaves, washing the car, or planting flowers.
• Give homemade items. The time you spend making the item shows how much you really care about the receiver. If Grandpa has an old, unused pitchfork in the barn, use a staple gun to attach greenery, use hot-glue to attach pine cones and decorations, then wrap a string of holiday lights around it. He'll make sure that decoration gets used every year! If you know how to knit, make some handmade potholders for the special cooks in your family and in your neighborhood. If your forte is baking, give holiday tins of homemade cookies to friends, the letter carrier, your hairdresser, and newspaper deliverer.
• Use natural decorations. Gather leaves, pine cones, low-hanging branches from pine trees, or other "gifts" from nature and use them in centerpieces and mantel decorations. Here's a tip for pine cones: Place them in a single layer on a cookie sheet and bake them for 15 to 20 minutes at 200 degrees to rid them of bugs or spiders.
• Wrap it creatively. Use the Sunday comics as a free substitute for expensive wrapping paper. Purchase a roll of inexpensive meatpacking paper from the local butcher and have young children draw and color on the paper, which can be cut to fit any size package. Or, make your own gift wrap--there are countless resources and ideas on the Internet to get you started.
• Make it memorable. Rather than trying to make--and pay for--the entire meal and feed the whole family, organize a potluck that allows everyone to contribute and show off their culinary talents, and share recipes. Ask guests to string popcorn and cranberry chains as decoration for the holiday tree. Bring out photos of past holiday gatherings--that's sure to generate a lot of stories and laughter.

Finally, ask everyone to share their favorite holiday memories. Chances are, the majority of responses will be ones that don't involve spending any money at all. And that's truly what the holidays are meant to be–engaging in special traditions and creating lasting memories. No Scrooge required.

Smart Holiday Shopping Takes Planning and Control

You say it every year after the holidays: "Next year I'm going to spend less money." It's easy to get carried away. It can be just as easy to stay financially fit, even during the busiest shopping season of the year.

The Credit Union National Association, the trade association for credit unions, and the Consumer Federation of America, Washington, D.C., suggest these holiday spending tips:

1. Budget your spending and set goals: Start with a realistic idea of how much you can spend on holiday gifts, food, travel, and so on. Add it up and really give some thought to what you can afford. Think about where you might cut back and stick to your budget.

2. Make a list: Shop from a list to avoid impulse purchases that could leave you snowed under in debt at the end of the season.

3. Comparison shop: Take the time to find the best deal. Fight the urge to get your shopping over with as quickly as possible, and, for the procrastinator: Don't wait until the last minute!

4. Trim your interest payments: If you must pay with a credit card instead of using cash, use a card with a low-interest rate. Now is a good time to look for a lower-rate card--start at your credit union.

5. Open a TCU Holiday Club account: Put some money in the account each month based on how much you spent this year; arrange to have that amount automatically deducted from your paycheck. This way, next year you'll have all the money you need. Plus, you'll earn interest rather than making big interest payments to finance next year's holiday shopping.