Category: Financial Literacy

While it is an essential purchase for most of us, it’s never an easy decision to make. New or used? Red or blue? Car or truck? While we can’t answer all of these questions for you, we can provide you with some things to think about when buying a car. Benefits of Purchasing Used Avoid …

Benefits of Purchasing Used

Avoid depreciation – Cars are not an investment. In the first two years of ownership alone, a new car will depreciate about 30%. Looking ahead to when it’s time to sell your used vehicle, less money is lost on resale than had you purchased new, largely due to avoiding the initial depreciation.
Wider selection – While you may not get to choose features a la carte like you can in a new car purchase, you do end up with more choices overall.
Lower Price – The nature of used cars is that they are less expensive. Used doesn’t necessarily mean worn out. Looking for features such as low mileage and recent model years can increase your buying power, and more bang for your buck.

Do Your Homework if Purchasing New

If you decide now is the time to buy a new car, be sure to do your homework!
Decide on your price range – Before you get to the lot, before you are wooed by a car that is outside of your budget, decide what you are willing to spend. Crunch the numbers to know what monthly payment you can comfortably afford and what your overall sticker price cap is. Don’t forget to include fees such as insurance and repairs!
Get preapproved from Compass for financing – Before you scour online sources or visit a vehicle lot, talk to us about getting preapproved for your auto loan. This will also help you know how much you can afford.
Read the reviews – Once you’ve decided on the type of vehicle you want to purchase, read reviews at sites such as consumerreports.org, Edmunds.com, and kbb.com. From recalls to the pros and cons of each make and model, these sites are dedicated to providing you with knowledge about the vehicles you are considering.

The Art of the Sale

Negotiate your offer – Offer 15% below the asking price. There’s about 20% gross margin in the asking price. Offering 15% below allows the salesperson to still make a profit while you get the vehicle you want at a fair price.
Turn down add-ons – If a used-car dealer tries to get you to add on products and services, decline. These are likely offered at a less expensive rate elsewhere.

Being prepared helps take the stress out of car buying. Compass is here to help with any additional questions you have!

The Difference Between Frauds and Scams

September 17, 2024September 4, 2024

An individual’s personal and financial information is a valuable commodity, and protecting it is key to maintaining financial security. Being able to recognize the signs and understand the differences between frauds and scams is essential in safeguarding oneself from having their hard-earned money taken away by scammers and fraudsters. Here are the differences and some practical tips to help people avoid falling victim to deceitful practices.

Fraud:

Fraud is financial theft without one’s permission or knowledge. Fraud refers to the deceptive and dishonest activities carried out with the intention of gaining financial or personal benefits––all while breaking the law. Examples of fraud include unauthorized use of someone’s credit or debit card, stealing someone’s identity and opening accounts in their name, and taking over an unsuspecting person’s financial accounts. Fraud is more difficult to protect oneself from than scams, as it happens without people knowing about it. However, regularly keeping an eye on financial accounts for suspicious activity is key to spotting it quickly.

Scams:

A scam is financial theft with one’s permission or knowledge. It’s a trick that is designed to persuade people into believing false information or promises, with the goal of gaining their money, personal information, or other valuables. Scammers often manipulate their victims by exploiting their trust. Examples of scams include people pretending to be debt collectors, offering fake investment opportunities, or promising fake lottery or prize winnings. For example, a scammer could mail, call, text, or email someone to tell them they’ve won a prize through a lottery or sweepstakes and then ask them to pay an upfront fee to receive the rest of the money. There is no prize. The scammer simply wanted quick payment from the victim. One of the most important ways people can avoid falling victim to scams is by staying informed about the latest scams––that way they spot that something is suspicious before they agree to take action.

Tips to Avoid Becoming a Victim:

Be Caution When Sharing Information – People should be cautious about sharing personal or financial information, whether online or offline. They should avoid revealing sensitive information, such as banking information, passwords, Social Security numbers, addresses, and phone numbers to unfamiliar callers, email senders, or unfamiliar websites.

Strengthen Online Security – People should use strong, unique passwords for each online account and use two-factor authentication whenever possible. Two-factor authentication is an extra security step in the process of logging into an account. As usual, people enter either their username or email address––followed by their password. However, instead of being granted access to their account after entering the password, the user needs to confirm their identity via another specified method. For example, the user may receive a text message or an email with a one-time code that must be entered to complete the login process. Other two-factor authentication methods include biometric information, such as fingerprint or facial recognition scanning.

Resist Pressure to Take Immediate Action – Acting in urgency is a warning sign of a scam. Scammers want people to act quickly and make payments without taking the time to think the situation through. Honest organizations will give people time to make a decision.

Avoid Unusual Payment Methods – If someone is asked by an unfamiliar person or business to send a payment via a wire transfer, prepaid card, or cryptocurrency, they should not do it. These methods are nearly untraceable, and once the money is sent, it’s usually gone for good.

Develop Awareness – People should regularly educate themselves about the latest tactics being used by fraudsters and scammers. Common frauds and scams are regularly shared on the Consumer Financial Protection Bureau’s website. This can help people spot common warning signs and red flags that might indicate a fraudulent attempt to obtain their financial or personal information before it happens.

Trust Any Instincts – If something seems too good to be true, it probably is. If someone is suspicious about something, they should talk with a trusted friend, family, or their financial institution before taking action.

The Bottom Line:

Knowing the difference between frauds and scams is an important part of understanding the full picture in regard to the deceptive practices that exist in today’s world. By educating themselves and being prepared to spot the red flags, people can avoid falling victim to fraudsters and scammers.

Budgeting for Childcare

May 24, 2024

Childcare is not cheap. Right behind a mortgage, student loans are often said to be the largest source of consumer debt. However, the average annual cost of full-time childcare is higher than the average cost of in-state college tuition. Whether you aspire to have children in the future or have already started a family, factoring childcare into your budget can help you avoid piling up debt. Here are some steps that can help:

Educate Yourself on Care Costs

Whether you’re looking into a day care center, a nanny, or you’re even considering being a stay-at-home parent, you should have sense of how much childcare will cost you every month. Do some research and reach out to any care options that are of interest to you. Make sure that you know exactly what the price will be, so that you can factor in the expense when you start putting together your budget. If your yearly salary is at all comparable to the cost of your child’s care, you might even consider leaving work to stay at home. If the cost of a nanny exceeds your budget, explore nanny-sharing. You can split the costs of care with another family and know that your little one will have a friend to socialize with. And possible, accept help from friends and family if they offer. Not only will you be saving money, but you’ll know your child is in good hands.

Track Your Current Spending

Start tracking where all your money is going now – before kids. You can either keep track using good old’ pen and paper or use a free app. Tracking your spending and comparing it to your income can give you an idea of how much you’ll be able to spend on childcare. If you discover that you won’t be able to spend much, it might be time to start looking into a higher-paying job or cutting some spending, which is a perfect segue to the next step.

Find Places to Cut Spending

The great part about tracking your spending is that you have a clear understanding of where your money is going. Look at all of your discretionary spending to see where you can start making cuts. It might be time to finally cut your cable, brew at home rather than stopping for coffee every day, and carpool to save on gas. You don’t want to be borrowing money from your emergency fund or contributing less to your 401(k).

Monitor Changes Over Time

Stay open to the idea that the costs associated with having children will change over time. While your salary may increase, so might the cost at the day care center. You might have another child, doubling the cost of the care. Childcare costs vary by age, with infants being the most expensive. Your child will someday grow old enough that paying for childcare is no longer necessary. Instead of childcare, you might have to fund their activities and interests. Don’t get caught sticking to the same outdated budget. Make sure that you’re sitting down and evaluating your budget every year to stay on track.

Happy parenting!

Coaching kids to stretch a buck on spending

February 15, 2024

By getting your kids more involved with understanding money, many of us could not only reduce expenses but also help our children learn a life lesson. Here are some ways you can involve your kids.

Coach your kids on the concept of budgeting. You might take a couple of dollar bills out of your wallet and explain that spending too much now means there may not be enough later for something else they want (say, a winter trip or summer camp)—a concept a schoolchild of any age can grasp.
Set a budget that encourages them to plan. For example, some parents pay for all academic supplies, then provide each child $100 for other back-to-school needs. The kids are free to stretch the $100 using money they’ve earned or saved. If they’re alarmed about this budget, brainstorm with them about ways they can earn more. (See #5.)
Help them inventory what they already have. Can they reuse backpacks or sports equipment? If there’s peer pressure to have something “new,” how about personalizing those possessions with stickers or stencils?
Ask them to make a list of what they really need. Have their needs really changed? If new clothing is essential, can they mix in clothes from their closet later on?
Hold a yard sale of outgrown or unneeded stuff to raise money. While you’ll probably want to oversee the sale, encourage your kids to get involved in the pricing, set-up, and selling. They’ll value the profits more, having worked for them.
Avoid paying full retail. Start with discount stores and other nearby consignment shops. Teens who like to dress distinctively may find bargains at resale shops, outlet stores, and vintage clothing emporia. If you do need to buy “new,” peruse sale flyers and search for online coupons first. Above all, stick to your shopping list.
Consider sharing with the less fortunate. Many communities have an organization that provides items to truly needy kids. If you come upon a great deal, buy a little extra and donate it. You won’t save money, but you’ll gain rewards of another kind. Your children will, too.

Mobile Banking: Keeping it Convenient, Keeping it Safe!

December 13, 2023December 13, 2023

You know that mobile banking with Compass is a convenient way to access your account wherever you might be. While mobile banking with us is also safe and secure, there are some simple rules you can follow to ensure that your private information stays that way:

Never send your account information or password via text message or e-mail
Know that public internet connections are not always secure; before you log into your account, make sure you’re not connected to a public network, such as in a coffee shop
Avoid using your phone to visit any websites that seem illegitimate – even if there is just a hint of doubt
Avoid clicking on hyperlinks embedded in emails unless you know the source is legitimate
Create complex user passwords

Keep your phone password protected.

To learn more about mobile banking, click here.

The Latest Scam

November 15, 2023November 15, 2023

We have provided some information and tips on how you can protect yourself from phony emails and phishing scams. In this article, we will be focusing on the latest scam published by the FBI’s Internet Crime Complaint Center (IC3), Tech Support Scams. Based on a Public Service Announcement published in July, this particular scam is on the rise. IC3’s 2022 Internet Crime Report shows this type of scandal had a 27% increase over 2021 and totaled in over $1B in losses.

How do you know if you’re being targeted:

The scammers will initiate contact with their victim through a phone call, text message, email, or popup window posing to be support from a company. They hook their victims by telling them they are eligible for a refund and that they need to gain access to their computer so they can guide them through the transfer. They will urge their victim to log into their bank account, and then take over control. During this process they will intentionally transfer more money than what was said to be refunded and play on their victims’ emotions by telling them they could lose their job if they do not receive the funds back. They will instruct their victim to send the money via cash disclosed in a magazine or to a pharmacy or retail business which will accept packages like this.

How do you protect yourself against the threat, below are some tips provided from IC3:

Never download software at the request of an unknown individual who contacts you
Never allow an unknown individual authorization to access or control your machine remotely
Do not click on unsolicited popups, links, text messages or even attachments.
Never send cash via mail or shipping companies

What do you do if you’ve fallen victim, or suspect you’ve been targeted:

If you suspect you have been a victim of this attack, you should report this activity to the FBI Internet Complaint Center at www.ic3.gov. You will need to include as much information as possible, and this should include.

The name of the person or company that contacted you
Methods of communication used, in include websites, emails, and phone numbers
The address where the cash was shipped and the recipient name

The source of this information was gathered from the FBI’s IC3 website and can be reviewed in more detail at https://www.ic3.gov/Media/Y2023/PSA230718.

Compass Community Credit Union is dedicated to protecting our members and the safety of your information. If you have any questions or concerns, please call us at 707-443-8662.

Scams are on the rise. Protect yourself, don’t become a victim (part 1).

September 15, 2022August 30, 2022

We have recently seen an increase in scams and would like to provide you with some tips on how to identify them and what to watch for.

Prize Pitch (Lottery) Scams

The classic prize pitch scam involves victims receiving notification by mail, phone, or e-mail indicating they have won a prize (monetary or other valued items).

However, in order to collect the prize the victim is required to pay various fees or taxes in advance. Victims either never hear from the organization again or receive further requests for money.

Tips:

Challenge a caller who says you’ve won a prize to tell you where and when you entered. If you didn’t enter, you can’t win.

Keep track of contests, draws and lotteries you enter.

If it sounds too good to be true, it probably is.

Watch out for Charity Scams

Fraud artists hope to profit from people’s generosity. Consider the following precautions to make sure your donations benefit the people and organizations you want to assist:

• Be wary of appeals that tug at your heart, especially pleas involving current events.

• Ask for written information about the charity, including name, address and telephone number. A legitimate charity or fund-raiser will give you information about the charity’s mission, how your donation will be used and proof that your contribution is tax deductible.

• Ask the solicitor for the registered charitable tax number of the charity. Question any discrepancies.

• Check out the charity’s financial information. For many organizations, this information can be found online or call them.

• Watch out for similar-sounding names. Some phony charities use names that closely resemble those of respected, legitimate organizations. If you notice a small difference from the name of the charity you intend to deal with, call the organization to check it out.

• Be skeptical if someone thanks you for a pledge you don’t remember making. If you have any doubts about whether you’ve made a pledge or previously contributed, check your records. Be on the alert for invoices claiming you’ve made a pledge. Some unscrupulous solicitors use this approach to get your money.

• Refuse high-pressure appeals. Legitimate fund-raisers won’t push you to give on the spot.

• Be wary of charities offering to send a courier or overnight delivery service to collect your donation immediately.

• Be wary of guaranteed sweepstakes winnings in exchange for a contribution. According to law, you never have to donate anything to be eligible to win.

• Avoid cash gifts. Cash can be lost or stolen. For security and tax record purposes, it’s best to pay by check.

Advance Fee Fraud

Classified advertisements for loan opportunities do not guarantee the legitimacy of a company. Some companies claim they can guarantee you a loan even if you have a bad credit history or no credit rating at all. They usually request an up-front fee of several hundred dollars. If you send your money to these companies, it is unlikely you will get your promised loan and your advance payment will be at risk.

Advance fee loans operating for a criminal purpose generate millions of dollars annually in the U.S. Persons with poor credit ratings are usually the key targets and once the ‘loan processors’ receive your money, they usually disappear.

If you have doubts about the organization, contact the Better Business Bureau for further information.

Most important, do not give out your personal or account information unless you are absolutely sure you know who you are dealing with. If you have any questions or concerns, please call us at 707-443-8662.

Better Way to Manage your Money

February 10, 2022February 10, 2022

One thing you don’t want to waste – your time. With mobile banking, you can access your accounts anytime, anywhere. It’s safe, secure and super easy to use.

Deposit checks without visiting a branch. All you need to do is sign, snap a picture of both sides of the check, and submit the check through the Compass mobile app. It’s that easy!

Tagging transactions allows you to locate your purchases quickly and organize.

Attach images of your receipts
Add notes to provide more context
Easily ﬁnd transactions with dynamic search ﬁlters
Export data for a range of dates in a variety of formats

With the Low Balance Alert, you can receive notiﬁcations when your balance goes above or below a pre-selected threshold or for large transactions.

Mobile banking helps you spend time doing what matters most to you. Ready to get started? Just download the Compass Community Credit Union app and follow the prompts. For more information, visit https://compassccu.org/personal-banking/mobile-banking/

Six Tips to Get the Best Deal on a New Car

November 17, 2021November 17, 2021

Are you in the market for a new or used car? When it comes to car shopping, timing is everything! Did you know you have a better chance of leaving the dealership with a great deal in the winter? Or that getting pre-approved can save steps at the dealership and keep you focused on your budget? Here are the six best tips to get you into a new ride this season:

1. Get pre-approved! Before you buy, apply online with Compass at compassccu.org or call 707-443-8662. Get pre-approved so you have the best chances of negotiation. Once you’re pre-approved, you can shop for the car as if you had a check in your pocket. This helps you stay focused on the actual selling price of the car, rather than keeping track of the interest rate, down payment, loan term and trade-in.

2. Winter months offer the greatest potential for deals. After the holiday shopping rush has settled down, consumers are less likely to make larger purchases such as a car. Foot traffic through car dealerships usually remains slow from the New Year into February.

3. Shop during the week. By avoiding the weekend crowd, you’ll be more apt to get the salesperson’s undivided attention. They may even feel more willing to negotiate because of how few people shop for cars mid-week.

4. Make your offer late in the day. If you know what you want, and have done your research, it might save you time and money to visit the dealership closer to closing time. The salesperson might not want to spend hours negotiating a deal, pressing them to make a good deal.

5. Don’t think about the monthly payments. Of course, you have to consider the monthly payments and whether or not you can afford them! However, worry about the actual price of the car. A low monthly payment won’t do you any good stretched out over a long period of time and will eventually add up to more than the sticker price!

6. Avoid tax refund season. Consumers commonly use their tax refund checks to purchase big ticket items—like a new car! The bad news about this time of year is that dealers don’t feel the need to offer quite as many discounts to entice shoppers to buy.

Not sure what to buy? Research and shop inventory – click here.

It’s never too early, or too late, to start saving for retirement.

August 26, 2021August 26, 2021

It’s been said that to retire comfortably you should have at least $1 million saved. While that may seem like an unreachable number, it really isn’t that hard if you put your mind to it.

For example, if you start putting away $400 a month in your 20s, or $650 a month in your 30s, or $1,300 a month in your 40s, and get at least a 6% return on your investment, you could actually hit that milestone by 67.

That’s the power of compound interest. With compound interest, any interest you earn accrues interest on itself. So while it might not seem like you’re not putting a lot of money away, over time it can really start to add up.

Here are a few simple ways to start saving for retirement:

• Enroll in your employer’s 401(k) plan and make sure you take advantage of any company match

• Contribute to a Roth IRA or Traditional IRA. To learn more, click here.

• Talk with an investment professional.

• Can’t seem to find any extra money to save? Go out to eat less often and avoid impulse purchases. Most of all, put yourself on a budget.