Tag Archives: First Financial Federal Credit Union

Jackson Memorial High School Students Get Schooled in Money Management

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Asbury Park Press Article by Amanda Ogelsby:

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How do you teach teens how much it really costs to live?

JACKSON, NJ — Fourteen-year-old Aylin Torenli of Jackson spent a recent Wednesday morning calculating whether the salary of a dental hygienist would be enough to afford her the finer things of life: a smart phone, upscale furniture, television.

“I didn’t realize how expensive it was,” Torenli said of life’s luxuries that quickly add up. The freshman joined more than 200 Jackson Memorial High School students at a Financial Reality Fair Wednesday that was designed to give teenagers the foundations for a lifetime of successful money management.

After picking a “career” and its related income, students visited various stations where they chose cellphone plans and car payments, looked at housing costs, and calculated quality-of-life expenses like dining out and spa treatments.

“You understand how hard it is to be in the financial world,” Torenli said after meeting with a financial adviser to review her budget. “I give a lot of credit to my parents now.”

Under New Jersey law, public school students must learn about money management, insurance, saving and investing, as well as credit and debt management, beginning by fourth grade.

Public high school students are required by state law to take 2.5 credits of financial literacy and economics to graduate, according to the state Department of Education. That law went into effect in the 2010-11 school year, beginning with then ninth-graders.

The 2008 recession — when financial markets around the world fell following a collapse of the U.S. housing market — triggered the need for such educational programs, said Issa E. Stephan, president of First Financial in Wall, which helped to organize the event along with the New Jersey Credit League Foundation.

“Our mission for the fair is to help the students understand the value of money and how to manage their money, so as they grow as an adult, they’ll be more financially responsible,” Stephan said.

In a country loaded with easy temptations to spend, financial literacy is crucial, he said.

At the spinning “Reality Wheel,” students took a risk at budget breakers like car repairs and accidents.

“We just want to give them a little wake-up call,” said Janice Anderson of First Financial, who talked to students about managing monthly food budgets.

Freshman Tom Del Monte, 15, said the Financial Fair helped him better understand the importance of securing a good job after high school. The Jackson freshman said he was shocked by the high prices of cellphones and food.

“I finally understand the reality of what we’re learning in class,” he said. “I didn’t realize what my parents pay.”

“We hope this (fair) leads to better consumers,” said Lisa Scott, a business, finance and economics teacher at Jackson Memorial High School.

She added: “They’re coming face-to-face with the reality of whether or not that (job) will buy them all the things that they think they’re going to have when they are young adults out on their own for the first time. It is a rude awakening for some of them.”

The Basics: Student Checking

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Students with laptop computerMany young adults enter the “real world” lacking the proper knowledge in financial literacy. The following information will assist with setting up and understanding the features and benefits of student checking accounts more clearly.

What Can a Checking Account do for You?

A checking account offers easy accessibility to your money anytime, anywhere and it also helps keep your cash secure – often times through use of a debit card. A debit card is a card that grants you electronic access to the money in your account, which is often referred to as a check card. You may also receive checks to make purchases or pay bills from your checking account. This makes it easier to spend and receive money without carrying cash. Checking accounts are also important for building credit, which you will need to make major purchases such as a car or a house in the future.

A great checking account option for students is Student Checking. The perks of Student Checking accounts vary among financial institutions, but many include free checks, free ATM usage, and better loan rates.

Preparation

Before opening a checking account, make sure you are prepared. Here are a few tips to remember when you begin the process:

  • Get all of your personal documents together. You will have to prove that you are who you say you are, to open an account. Make sure you have the proper identification such as a driver’s license, photo I.D. card, and Social Security card.
  • Know what services your credit union or financial institution offers. Does the institution provide online banking and bill pay? What fees (if any) does the account charge?
  • Look for branch and ATM locations. When choosing a financial institution, it’s a good idea to check for locations near your home, job, or school. It’s also a good idea to consider the locations and availability of their ATMs.
  • Be able to identify fraud. Many Americans have been exposed to financial scams as of late, and even more are unable to identify classic red flags. Common fraud attempts include propositions for “educational” investment meetings, or being offered money in exchange for paying a fee or making an initial deposit. Use common sense and be cautious around offers that seem too good to be true.

First Financial offers Student Checking to students who live, work, worship, or attend school in Monmouth or Ocean County, ages 14-23.*

The account includes the following features and benefits:

  • A free first box of checks and an allowance of the first mistake being free+
  • Free phone transfers to the account by parents
  • No per-check charges
  • No minimum balance requirements
  • No monthly service charge for having the account
  • A Debit Card issued instantly in one of our Monmouth or Ocean County      branches.
  • Free Online Banking with Bill Pay
  • Unlimited in-branch transactions

Remember that it is important to establish yourself financially as a student. After your schooling is finished, you will begin your search for a career. Understanding your account and personal finance can only help you when you begin this independent stage of life, and First Financial is here to help you every step of the way!

*A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. Click here to view full Rewards First program details. Accounts for children age 13 and under are excluded from this program.

+ Call or visit a branch to request refund of the first fee incurred. We must receive request within 90 days of date fee is charged in order to be eligible for refund. The eligible fees are NSF, Overdraft, and Courtesy Pay fees.

What’s the Worst Kind of Debt?

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DEBT inscription bright green lettersWhat is the worst kind of debt to carry? Is it student loan debt, credit cards, a mortgage — or something else? Even the experts don’t always agree on which debt is “good debt” and which is “bad,” so imagine how confusing it can be to consumers who are dealing with debt!

Student Loan Debt

Why student loan debt is the worst: The loans are often given to young people with no credit experience and no clue how they will pay them back. Balances are often high, and the jobs borrowers counted on to make payments may be non-existent or take a really long time to acquire. Finally, unlike every other type of consumer debt, it is very difficult to discharge balances in bankruptcy.

And why it may not be: College graduates, on average, still earn significantly more over their lifetime than those without a college degree. In that sense, student loan debt can be considered an investment that pays off in future earning power. In addition, students may be able to defer payments on their student loans during times of economic hardship (usually at a cost), which makes them more flexible than other types of loans. In addition, borrowers may be eligible for reduced payments and loan forgiveness under the Income-Based Repayment Program or other loan forgiveness programs.

How does student debt affect credit scores? Large balances typically don’t hurt credit scores as long as the payments are made on time.

Credit Card Debt

Why credit card debt is the worst: With interest rates hovering around 15 percent on average — and more than 20 percent for some borrowers — credit card debt is often the most expensive kind of debt consumers carry. And with the low minimum monthly payments that issuers offer, cardholders can find themselves in debt for decades if they aren’t careful.

And why it may not be: While making minimum payments on credit cards is not a great idea over the long run, having that option can come in handy in a financial pinch. It can give cardholders time to get back on their feet without ruining their credit.

As far as credit scores are concerned, as long as cardholders keep balances low (usually below 10 to 20 percent of their available credit), and make minimum payments on time, credit card debt should not hurt credit scores.

Mortgage Debt

Why mortgage debt is the worst: If you wonder how bad mortgage debt can be, just ask the owners of some $8.8 million homes that CoreLogic said had negative or near-negative equity as of the second quarter of 2013. That means those owners owe close to, or more than, what the property is worth. That also means they can’t sell those houses without shelling out money to pay off their mortgage or doing a short sale that damages their credit scores. Even for those who aren’t under water, rising taxes and/or insurance premiums, the cost of maintenance and loans that typically take 30 years to pay off can make one’s home feel like a financial prison at times.

And why it may not be: Over time, homeownership remains one of the key ways average Americans build wealth. If you are able to keep up with your home loan payments, eventually the home will be paid off and provide inexpensive housing or rental income. Equity that has built up can be accessed through a reverse mortgage or by selling the house, or it can be passed along to heirs — sometimes tax-free.

When it comes to credit scores, this type of loan will generally help, as long as payments are made on time. Even large mortgages shouldn’t depress credit scores, unless there are multiple mortgages with balances. That’s usually a problem that affects real estate investors however, not homeowners with one or two homes.

Tax Debt

Why tax debt is the worst: If you owe the Internal Revenue Service or your state taxing authority for taxes you can’t pay, you can suffer a variety of painful consequences. If a tax lien is filed, your credit scores will likely plummet. In addition, these government agencies usually have strong collection powers, including the ability to seize money in bank accounts or other property, or to intercept future tax refunds.

And why it may not be: The IRS offers repayment options that may allow a tax debt to be paid off over time at a fairly low rate. (Similar programs are available for state tax debt in many states). And unlike applying for a loan, you don’t have to have good credit to get approved for an installment agreement.

The good news when it comes to credit scores is that tax debt itself isn’t reported to credit reporting agencies; a tax lien is the only way that it may show up. By entering into an installment agreement, you may be able to get a tax lien removed from your credit reports, even before you’ve paid off what you owe.

Auto Loan Debt

Why auto debt is the worst: The average auto loan now lasts five and a half years, and some 12 percent last six to seven years, according to Edmunds.com. That means payments will last long after that new car smell has worn off and well into the years when maintenance and repair costs start creeping up. Even more troubling, these borrowers may be stuck if they need to sell their vehicles since they may be “upside down,” owing more than what they can sell their car or truck for.

And why it may not be: Many consumers budget for a car payment, and as long as they aren’t hit with unexpected expenses, they are able to make this payment a priority. In addition, borrowers may be able to refinance their auto loans and lower their monthly payments. Plus, cars often get people to work, where they can earn the money they need to pay off debt.

Vehicle loans that are paid on time can help credit scores, and are rarely a problem unless someone has several car loans outstanding at once or misses a payment.

The Worst Kind Of Debt

When it comes down to it, the worst type of debt is … (drumroll please), the one you can’t pay back on time. If that happens, your credit scores will suffer, your balances may grow larger due to fees and interest, and you may find yourself borrowing even more as you try to keep up with your payments.

Article Source: http://www.huffingtonpost.com/creditcom/whats-the-worst-kind-of-d_b_4220046.html 

Financial Resolutions for the New Year

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iStock_000014802582Small-x-560If you haven’t already started making your New Year’s resolutions – or even if you have – make sure to include a few money-related ones to your list. We’ve got a few to help you get started:

  • Pay down your mortgage. You can save more than $63,000 on a 30-year, $200,000 mortgage by paying just $100 more a month.
  • Save 10 percent. Put aside 10 percent of your income for long-term investments and retirement savings before paying any bills.
  • Track your expenses. Record every dollar you spend, for at least one week. You’ll get a clearer idea of where the money goes and what you can cut back on.
  • Energize your house. Look for ways to make your house more energy efficient. You’ll save on heating and cooling costs and also help the environment.
  • Stay home. Resist the temptation to eat out. Cook more meals at home. Instead of going to the movies, rent a video, read a book, or a play a game with your whole family.
  • Don’t rely on credit cards. Credit card debt can eat up your savings and your future. Start reducing your debt, and don’t buy anything on credit if you don’t have the money to pay the bill off promptly.

Don’t forget to stop in to have your annual financial checkup! Here at First Financial, we encourage our members to come in at least once a year to sit down with a representative at any one of our branches to make sure you are currently placed in the correct Rewards First tier for you, and also that you are receiving the best value, products and services based on your financial situation. Give us a call at 732.312.1500 or stop in to see us today!

5 Things You Probably Didn’t Know About Identity Theft

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WideModern_IdentityTheftComposite_121813620x413We’re all experts on identity theft.

Not by choice – but live your life, and it’s hard not to pick up something on the topic. And odds are, you or a friend or family member has been a victim. According to a U.S. Bureau of Justice Statistics survey of 70,000 people, 1 out of every 14 Americans ages 16 or older has been a target or a victim of identity theft.

So in the interest of protecting yourself and learning even more about identity theft, here are some things you probably didn’t know.

Military members are particularly at risk. Military veterans file more complaints about identity theft than any other group, according to Scott Higgins, CEO and founder of Veterans Advantage, a national program that partners with corporations, offering discounts on various goods and services. The Federal Trade Commission even designated July 17 as Military Consumer Protection Day to help educate the military about the dangers of identity theft.

What is it about being in the military that makes members such prime targets? Higgins says servicemen and women are conditioned to provide whatever personal information is asked of them throughout their service. “Unfortunately, this ‘conditioning’ often stays with them beyond their careers, leaving them susceptible to both ID theft and data grabbers who bird-dog veterans – offering a small perk and then selling their personal data wherever they can make the biggest buck.”

Medical identity theft is becoming a problem. Just because someone isn’t using your credit card illegally doesn’t mean you’re safe from identity theft. Someone could be using your name to get free medical services at a clinic or hospital, “possibly sticking you with the bill,” says Van Zimmerman, compliance and solutions architect at DataMotion, an email encryption and health information service provider in Morristown, N.J.

According to the Ponemon Institute, a research center devoted to privacy, data protection and information security policy, medical identity theft has increased 20 percent, and almost two million Americans have fallen victim. How does it happen? A thief with access to your personal information can create a fake ID with your name on it, and suddenly they’re you – at least as far as a hospital or doctor’s office staff knows.

Unfortunately, there isn’t much you can do to avoid this since, as Zimmerman says, so many of consumers’ medical files are managed by third parties. But it may give you yet another reason to be careful when it comes to giving out personal information.

Identity theft via computer games is a growing trend. According to Rob D’Ovidio, an associate professor of criminal justice at Drexel University in Philadelphia, video game accounts “are increasingly coming to the attention of identity thieves as they realize that these accounts hold real-world monetary value. Trends in phishing show attacks against financial services, online payments services and online auction brands decreasing, while attacks against video game and social networking brands are increasing.”

Phishing, in case you’re not aware, occurs when scammers construct a fake website with the goal of luring consumers to provide their personal and financial information. For instance, an email hits a gamer’s inbox, stating there is a problem with their account information. The gamer clicks on the link and provides information to the scammer posing as the legitimate service. Or a consumer might receive an instant message, seemingly from a friend, with a link to a gaming website – but clicking on the link brings malware, a type of software that can disrupt your computer or steal your personal information.

D’Ovidio says criminals who manage to access video game accounts through phishing and other methods can also steal virtual money and virtual goods and sell them for real-life dollars. “As well, video game and video game console community accounts are, at times, tied to the account holder’s or their parents’ credit card,” D’Ovidio says.

Search engine poisoning is more popular than ever. “Identity thieves are increasingly using a technique known as search engine poisoning to manipulate the results that show up and bend reality,” says Hugh Thompson, a Columbia University computer science professor and the program committee chair of RSA Conference, an annual information security conference.

Thompson says identity thieves, hackers and attackers can manipulate search engines so that their fake websites “appear higher in the search results than the real thing.”

Then, if it works, you’ve just been phished. Fortunately, there are ways you can spot a fake, and some of them are pretty obvious. If there are a lot of grammatical errors on the site, for example, that may be a danger sign. Many of the rules in the next section can help you realize you’re about to be had.

Criminals like to put fake Wi-Fi hotspots up at public Wi-Fi hotspots. If you go to a hotel or airport and log onto the official Wi-Fi hotspot, generally speaking, you’re perfectly safe. The problem is that you may wind up logging onto a fake Wi-Fi hotspot that simply looks like it belongs to your hotel or the airport, says Thomas Way, associate professor of computing sciences at Villanova University in Villanova, Pa.

He says there’s no sure-fire way to identify a criminal’s hotspot, but there are red flags to look for. First, look for the SSID (service set identification), the “name you see in the list of hotspots, and see if it is the one that the hotel, airport, et cetera, has told you to use,” Way says. “Second, when you get the typical approval page, where you usually click on a button or checkbox to agree to the terms of use, you should never have to enter identifying information, only, at most, a hotel room number and last name. If it asks for more, don’t do it.”

Way adds that just to be safe, look at the URL of the first page. “It should match whatever the page claims to be,” he says. “If it is a hotspot provided by the hotel, it should either be the hotel Web address or it should match the company that is providing the hotspot. If it is a spoof page, it’ll be noticeably different.”

Despite all the talk about online identity theft, you still need to watch your wallet. According to Phrantceena Halres, CEO of Total Protection Services Global, a Charlotte, N.C.-based security services company, only a fraction of identity theft cases are related to online fraud. “The majority is made up of stolen credit cards, checkbooks and wallets,” she says.

That’s because plenty of criminals aren’t computer geniuses. Most of them are hoping you’ve been careless enough to leave your wallet, filled with cash and credit cards, lying on the passenger seat of your unlocked car.

*Article by Geoff Williams of USNews. Click here to view the article source.

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7 Safety Tips for Using a Public Computer

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How-to-Check-If-Your-Computer-Is-Safe-400x350Public computers in libraries, Internet cafes, airports, and copy shops can be safe if you follow a few simple rules when you use them. Read these tips to help keep your work, personal, or financial information private.

  • Don’t save your login information: Always log out of websites by clicking “log out” on the site. It’s not enough to simply close the browser window or type in another address. Many programs (especially social networking websites, web mail, and instant messenger programs) include automatic login features that will save your user name and password. Disable this option so no one can login as you.
  • Important – Don’t leave the computer unattended with sensitive information on the screen: If you have to leave the public computer, log out of all programs and close all windows that might display sensitive information.
  • Erase your tracks: Internet Explorer offers InPrivate browsing that leaves no trace of specific web activity. Internet Explorer also keeps a record of your passwords and every page you visit, even after you’ve closed them and logged out.
  • Disable the feature that stores passwords: Before you go to the web, turn off the Internet Explorer feature that “remembers” your passwords. 1. In Internet Explorer, click Tools , and then click Internet Options. 2. Click the Content tab, and then click Settings, next to AutoComplete. 3. Click to clear the check box for User names on passwords and forms.
  • Delete your temporary Internet files and your history: When you finish your use of a public computer, you can help protect your private information by deleting your temporary Internet files.
  • Watch for over-the-shoulder snoops: When you use a public computer, be on the lookout for thieves who look over your shoulder or watch as you enter sensitive passwords to collect your information.
  • Don’t enter sensitive information into a public computer: These measures provide some protection against casual hackers who use a public computer after you have. But keep in mind that an industrious thief might have installed sophisticated software on the public computer that records every keystroke and then emails that information back to the thief. Then it doesn’t matter if you haven’t saved your information or if you’ve erased your tracks. They still have access to this information. If you really want to be safe, avoid typing your credit card number or any other financial or otherwise sensitive information into any public computer.

T.H.I.N.K First because There’s Harm In Not Knowing

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