Dear Members, 

We are excited to announce that the merger proposal between Parsons Federal Credit Union and Skyla Federal Credit Union has been approved by the members of Parsons FCU.

After NCUA’s approval of the proposed merger on September 15, 2022, the Board of Directors of Parsons FCU presented our valued members with the opportunity to vote for or against the proposed merger. Members participated in the voting process by reviewing the merits of the proposed merger, asking questions, and casting their online and paper ballots by the November 30, 2022 deadline. Shortly after the closing of the voting window, our independent voting administrator, CUES, tabulated the votes, verified the accuracy of the results, and presented the outcome to the Board of Directors. With 57.4% of members voting YES in support of the merger, the merger is approved and the process of completing the merger moves forward. 

As previously disclosed, the merger will provide us with the ability to better serve our members in the future. The economies of scale and the operational efficiencies realized through the merger are expected to offer long-term benefits to the membership, including access to a 24/7-member services team, a state-of-the-art digital platform for online banking, and a host of new products and services. Among its other benefits, the merger will also provide our employees with access to a formal training program and a robust career development department. 

The next steps involve logistical and transitional processes that won’t be affecting our members or how we do business. We will continue communicating the news related to the merger and sharing the significant milestones achieved via email and through our website, as well as through U.S. Mail for those who have opted for paper communication. Note that our offices in Pasadena, CA and Centreville, VA will remain open and active, and you can access our website and your online banking through www.parsonsfcu.org as before. If you have any questions or comments, please call us at 1-800-765-4527. Of course, you can always access the executive team by emailing us at executive@parsonsfcu.com. 

Thank you for being part of this historic occasion and for supporting the opportunity to create a stronger and more capable organization to better serve the growing financial needs and requirements of our membership. 

Bruce Hennig
Chairman, Board of Directors

Forbes.com’s list of 7 best short-term investments includes Parsons FCU’s 13-month 4.00% APY and 4-month 3.00% APY Shae Certificates of Deposits. Check out the full article here!  

Depositaccounts.com proves once again that it’s one of the best and active websites for savvy investors to check for the latest investment focused promotions and deals. Parsons FCU’s 13-month CD beats 204 others to rise to the very top of Ken Tumin’s chart! 

When gas prices spike as they have been recently, drivers love to swap gas-saving tips. The crazier the tip, the faster it seems to spread.

The problem is, some such “tips” are more urban legend than fact. Others might have been true back in the day, but improved automotive technology has erased any real benefit.

Keep in mind that, over time, fuel economy and average horsepower have both climbed steadily. So your job is to use the machine efficiently — by changing your driving habits — and avoid the urban legends.

Here then, are our favorite non-gas-saving tips — and a few suggestions that really do help.

1. Using gasoline additives

Auto shops have racks of fluids that promise to send your fuel economy through the roof. And some internet “experts” have suggested that adding a small amount of acetone to a tank of gas helps it burn more efficiently. While some chemicals can nudge fuel efficiency, those concoctions cost more than gas itself. Also, as Popular Mechanics points out in its Gas-Saving-Gadgets Hall of Shame, acetone can dissolve seals in your engine.

What does work: Add fuel injector cleaner once a year to keep your car running efficiently.

2. Turning off the air conditioner

It takes extra energy to run the air conditioner, so it makes the engine work harder and burns more gas. The problem is, if you turn off the air conditioner, you will probably want to open the windows, which could eliminate any potential gain by creating aerodynamic drag.
The road test editors at Edmunds.com tested this tip on two occasions — and found no savings in one case and only a small difference when driving a large pickup truck. Their conclusion was that modern air conditioners are so efficient they don’t cause a substantial drain on engine efficiency. But, as the saying goes, your mileage may vary, so test this one for yourself.

What does work: A vehicle’s aerodynamic qualities become more important the faster you drive. So avoid roof racks and high speeds on long road trips.

3. Buying gas early in the morning

Liquids become denser at colder temperatures. So buying gas early in the morning, when it’s cool, means you would get more for your money, right?

Fun fact: Airlines measure fuel by weight rather than volume, which seems to support this tip. However, a jet that takes off at 70 degrees will enter extremely low temperatures when reaching cruising altitude. You, on the other hand, buy gas that is stored in underground tanks where the temperature variation is only a few degrees, according to tests by Consumer Reports.

What does work: Buying gas early in the morning boosts fuel economy because you’ll hit less traffic and won’t sit there idling as you wait for an open pump.

4. Buying fuel-saving gadgets

The creativity of these gizmos — or at least their marketing — is truly impressive. Like weeds, they crop up when gas prices climb. Popular Mechanics discovered that one device, which spins the air entering the engine, actually decreased fuel economy.

What does work: Change your air filter if it is clogged and looks dirty. Your mileage will improve, but probably not enough to easily measure.

5. Over-inflating the tires

Less rolling resistance equals less energy consumed. That’s certainly true. And it’s also true that properly inflating your tires is important. But over-inflation is too much of a good thing.

Even 10 psi (pounds per square inch) over the manufacturer’s recommended levels creates a more narrow “contact patch” — the part of the tire that is touching the road. Not only does that reduce your traction and increase braking distance, it also means your tires wear out faster. Replacing your tires is far more expensive than anything you could save on gas.

What does work: Buy a digital tire gauge and inflate your tires properly. “Under-inflated tires can lower gas mileage by about 0.2% for every 1 psi drop in the average pressure of all tires,” according to FuelEconomy.gov.

The article These 5 Gas-Saving ‘Tips’ Don’t Work originally appeared on NerdWallet.

Picture cruising your car deep into 2021 and never glancing in the rearview mirror. Vaccines, travel and a hope of normalcy are finally on the horizon.

With so much to look forward to in the future, it’s understandable to not want to look back.

But returning to typical day-to-day life will be a transition. And from a financial standpoint, you’ll want to assess your past budgeting behavior to prepare for more normal days ahead.

Review past and current spending

Last year’s spending didn’t look like 2019. And 2021 won’t look like either 2020 or 2019. But you’ll need this historical insight to inform your future spending, especially as you start reintroducing expenses that used to be ordinary, like concert tickets, plane tickets and so forth.

Some people’s spending decreased dramatically last year (either from necessity or choice). But others faced comparable expenses. Remember that jungle gym for the kids to play on in the backyard? Or the Xbox for long nights of playing video games? They may have been great ways to keep you occupied and comfortable at home, but now you’ll need to find a way to balance these newer expenses with your past spending on the activities you hope to return to.

Since many of us are already taking a close look at our finances right now as we file taxes, use this opportunity to review year-end financial summaries from your credit cards and bank accounts. Our Spending tool in Online Banking can help by categorizing your purchases and laying out your spending over the past year in a variety of handy visual graphs.

Size up each category. How much did you spend? Was it worth that amount? Would you want to continue spending that much?

Play favorites

Ever since COVID-19 became part of our vocabulary, there’s been talk that life would never return to normal. Laughter anticipates your future spending will be a “new normal.” Sure, you may introduce dinners out — and possibly even a trip — to the mix, but expect to continue paying for quarantine life staples like deliveries and at-home activities.

There is going to be a paradigm shift with respect to how budgeting in the future will be compared to how it was pre-COVID. This new balance means you’ll need to play favorites with your finances. After all, you can’t keep up the amount you’ve been dropping on at-home entertainment and food deliveries while also upping the amount you spend on indoor dining and live shows. It just won’t all fit in the budget. Select the expenses you benefit from most.

To make the necessary adjustments, look at the big picture. Don’t get too caught up in specific line items. (For example, if you’re spending 25% less on grocery orders, you don’t have to redirect that exact amount to dinners out.)

Instead, once your needs and savings are accounted for, set a dollar figure you can afford each month for discretionary expenses, then spend it on whatever you want. You may never add back in some things you used to spend money on.

We’ve all figured out new ways to spend less money and still have fun. Dropping thousands of dollars on concert tickets may not feel worth it anymore when you compare it with watching a (much cheaper) livestream at home.

Plan for future goals

Life hasn’t returned to normal by any means. But for many Americans, the prospect of getting a vaccine is mere weeks or months away. Use the time between now and then to prepare for what’s to come.

Begin setting aside a certain amount monthly to accomplish a goal when it’s all said and done. For example, if you want to travel again by a certain date, use the next few months to funnel funds into a designated savings account. If your student loan payment is on hold, make a plan for how you’ll strategically spend those extra funds in the meantime. And prepare for that added bill when it’s reintroduced.

Whatever financial decisions you make, remember, whether we’re in a pandemic or not, the fundamentals of finances don’t go away. Spread your money between things you need, things you want and savings. Our Budgets tool, also available in Online Banking, can help you set a budget that you can follow with spending across categories such as food, travel, and essential expenses.

Your allocations may change, but the name of the game is the same as it was before — budgeting, budgeting, budgeting.

Here’s to better days and better budgets ahead.

This article was written by NerdWallet and was originally published by The Associated Press.

Reducing spending in three common budget categories may significantly boost your ability to save money. And a small mental trick could help you stick to an ongoing savings plan.

Those are the findings of two studies investigating the spending habits of better savers and the psychology of saving.

Here’s how to apply these habits to your own budget.

Moving from a ‘low’ saver to a ‘middle’ saver

Research conducted by the Employee Benefit Research Institute and J.P. Morgan Asset Management, published in June 2020, aimed to determine why some American adults save more than others, even when they have equivalent salaries.

For long-term employees, across age groups, the study showed that high savers save around 3% more than middle savers. And middle savers save about 3% more than low savers. Here’s how the researchers defined low, middle and high savers:

• Low savers save about 2%-3% of their salary.
• Middle savers save about 5%-6% of their salary.
• High savers save about 9% of their salary, and more as they get older.

The difference is not a matter of income

It’s often believed that low savers save less because they simply don’t earn enough. However, in this study, middle savers and low savers have “very similar, if not the same salaries,” says Katherine Roy, chief retirement strategist for J.P. Morgan Funds and one of six authors of the study.

“So they’re earning the same, but it seems like the middle savers somehow are able to save 3% more than the low savers,” Roy adds.

And that 3% boost in savings “is huge,” she says. It could explain why the retirement plan balances of employees who are middle savers are almost twice as large as those of employees who are low savers.

Better savers spend less money in 3 categories

Where did low savers spend more of their money than middle savers? Three categories of expenditures, as a percentage of salary, rose to the top:

• Housing, including a mortgage or rent, taxes, utilities, and home services and furnishings.
• Food and beverage, including eating out and groceries.
• Transportation, including the purchase of vehicles, gasoline, train tickets and so forth.
• A high cost of living, such as having a home in New York or San Francisco, did not seem to be a factor in why low savers were spending more in these categories than middle savers, Roy says.

Travel was the only category where middle savers spent slightly more than low savers.

In every other category, the two groups spent very similarly. “That would include entertainment, apparel, education, charitable contributions, gifts — those types of things,” she adds.

How to gain a savings advantage

Considering your spending over a lifetime in just these three categories can impact your ability to save, Roy says.

In housing expenses, look for so-called subscription creep, where you’ve added several recurring autopay services that are drafted from your checking account each month. Streaming services are a frequent culprit here and can add up.

It’s likely you saved quite a bit in 2020 on expenses related to dining out and travel due to COVID-19 restrictions. Roy says spending in these areas that was typical pre-pandemic but has been on hiatus could offer continuing savings long after.

Use a mental trick to form a new savings habit

Once you’ve adjusted your spending and can dedicate more to savings, you might want to use a mental trick to form a new savings habit.

Hal Hershfield, associate professor at the UCLA Anderson School of Management, was one of three researchers in a study published in the journal Marketing Science in November 2020. The findings may help you set up a recurring savings plan, where money is automatically moved to a savings or investment account on a regular basis.

“We asked some people if they wanted to save $150 a month,” Hershfield says. “We asked another group of people if they wanted to save $35 a week. And we asked a third group if they wanted to save $5 a day.”

The result: Four times more people were likely to save money when the dollar amounts were presented as daily goals, rather than monthly.

“People think about the types of sacrifices they can afford to give up,” Hershfield says, and “five bucks a day feels a little easier.”

When a savings plan was framed as $150 a month, higher-income people were three times more likely than lower-income savers to participate. But when presented as $5 a day, there was no difference in participation between the two income groups.

The simple psychological shift seemed to close the savings gap between high-income and low-income savers.

This article was written by NerdWallet and was originally published by The Associated Press.

After the train wreck that was 2020, you may well question whether it’s worth trying to plan anything.

But knocking off a few financial tasks early in the year can better prepare you for whatever 2021 has in store.

File your tax return ASAP

Filing your tax return early typically means getting your refund sooner. Not only that, it could thwart refund-stealing identity thieves. Also, If you were owed a stimulus check in 2020 but didn’t get one, or should have gotten more, you can claim the missing money on your return.

If you owe the IRS, it’s better to know sooner rather than later. You’ll have more time to find the money or arrange a payment plan.

Also, unemployment checks are generally taxable. Many people who received last year’s extended jobless benefits may face a larger-than-expected tax bill this year, tax experts say.

Check your withholding

Once your 2020 tax return is prepared, you can use that and your first pay stub from 2021 to see if you’re on track with tax withholding. A good tax withholding calculator can help you determine how to adjust the amounts taken from each paycheck. Then, contact your employer if you need to make changes.

If you’re self-employed, you may need to make estimated quarterly payments. You could consult a tax professional to find out how much those should be.

Adjust your retirement savings

Consider increasing and diversifying your retirement contributions. After you take full advantage of any available company match in a 401(k) or 403(b), look into funding a Roth IRA. Financial planners often recommend having at least some money in a Roth so you can better control your tax bill in retirement. If your income is too high to make a direct Roth contribution — the ability to contribute ends at modified adjusted gross income of $140,000 for singles and $208,000 for married filing jointly — you could consider converting a portion of an existing traditional IRA.

If you want some guidance on the next steps for your retirement, our CUSO Financial Services* Advisor Tiffany Yee can help you figure out how much you want to be putting into your retirement to meet your financial goals.

Check your spending

Our Money Management tool in Online Banking can help you see where your money went in 2020 and help you make a plan for 2021. You can also look back over bank or credit card statements. But even if you can’t get the full year’s worth of transactions, reviewing just a few months can show you some patterns and help you identify spending you want to change.

Set up your savings ‘buckets’

Preparing for irregular but predictable expenses can help you feel less panicked when those bills arrive. These expenses can include insurance premiums, property taxes, car and home repairs, vacations, back-to-school shopping and holidays. Check your spending in each of these areas for the past few years to ballpark how much to save this year.

Once you have your savings goals for each category, consider setting up separate savings accounts at an online bank that doesn’t charge monthly fees. You can divide the amounts by the number of paychecks you’ll get before the money is needed, and set up automatic transfers from your checking account to the appropriate savings account after each payday. You can use the Goals feature in Money Management to allocate your account into the things you want.

Put charitable contributions on automatic

Most charities prefer getting regular contributions throughout the year, since the steady income helps them plan. You may discover you can give more if you’re not trying to squeeze your contributions in with other year-end spending. You can use your bank’s bill pay system to send monthly checks or arrange with the charity to charge a credit card.

Spend your medical FSA

Flexible spending accounts are employer-provided benefits that allow you to put aside tax-free money for medical or child care expenses.

If you signed up for your employer’s medical FSA, try to spend that money as early in the year as possible. You don’t have to wait until the money is taken from your paycheck to use it for eligible health care expenses. (That’s different from child care FSAs, which don’t allow you to spend money before you contribute it.)

Spending early has a few advantages. You don’t risk leaving money in the account and potentially losing it. (Many employers extend the deadline for using the money past Dec. 31, but at some point unspent money is forfeited.)

Incurring medical expenses early in the year can help you meet insurance deductibles, too, so the rest of your health care can cost less. Also, if you leave your job during the year, you don’t have to finish making FSA contributions. In other words, you can spend the full amount you had planned to contribute, up to $2,750, without actually having to contribute the full amount.

UPDATE:  Effective Monday, January 4, 2021

We are taking additional steps to keep you and our credit union employees safe. Following state mandates and Centers for Disease Control (CDC) guidelines, we are asking you to help in the following ways:

If you need to complete a transaction in person, please make an appointment by calling 800-765-4527 or email mbrserv@parsonsfcu.com.

• We will be limiting the number of people inside the branch at any given time so you may be greeted by an employee and asked to wait outside.
• Practice social distancing and keep at least 6 feet of distance between you and anyone else in the branch.
• Use our ATM in the Parsons Pasadena lobby or any one of 30,000 CO-OP ATMs for surcharge-free cash deposits or withdrawals

These changes will be in effect until further notice. We will keep you updated as the situation progresses.

For your convenience, banking transactions can be conducted over the phone or electronically through Online and Mobile Banking. If you would like assistance navigating your accounts online, please call us so that we can guide you.

If you are having financial difficulties at this time, please reach out and talk to us. We may be able to provide you with possible loan payment options during this time. 

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With the start of the holiday rush approaching, it’s a good time to establish a budget to get your finances through the season as intact as possible.

With financial futures still looking uncertain, you may want to establish a budget to help you keep track of how you spend your money and help you reach your financial goals through this season and beyond.

Examine your financial goals

Before you establish a budget, you should examine your financial goals. Start by making a list of your short-term goals (e.g., new car, vacation) and your long-term goals (e.g., your child's college education, retirement). Next, ask yourself: How important is it for me to achieve this goal? How much will I need to save? Armed with a clear picture of your goals, you can work toward establishing a budget that can help you reach them.

Identify your current monthly income and expenses

To develop a budget that is appropriate for your lifestyle, you'll need to identify your current monthly income and expenses. You can jot the information down with a pen and paper, or you can use one of the many software programs available that are designed specifically for this purpose.

Start by adding up all of your income. In addition to your regular salary and wages, be sure to include other types of income, such as dividends, interest, and child support. Next, add up all of your expenses. To see where you have a choice in your spending, it helps to divide them into two categories: fixed expenses (e.g., housing, food, clothing, transportation) and discretionary expenses (e.g., entertainment, vacations, hobbies). You'll also want to make sure that you have identified any out-of-pattern expenses, such as holiday gifts, car maintenance, home repair, and so on. To make sure that you're not forgetting anything, it may help to look through canceled checks, credit card bills, and other receipts from the past year. Finally, as you list your expenses, it is important to remember your financial goals. Whenever possible, treat your goals as expenses and contribute toward them regularly.

Evaluate your budget

Once you've added up all of your income and expenses, compare the two totals. To get ahead, you should be spending less than you earn. If this is the case, you're on the right track, and you need to look at how well you use your extra income. If you find yourself spending more than you earn, you'll need to make some adjustments. Look at your expenses closely and cut down on your discretionary spending. And remember, if you do find yourself coming up short, don't worry! All it will take is some determination and a little self-discipline, and you'll eventually get it right.

Monitor your budget

You'll need to monitor your budget periodically and make changes when necessary. But keep in mind that you don't have to keep track of every penny that you spend. In fact, the less record keeping you have to do, the easier it will be to stick to your budget. Above all, be flexible. Any budget that is too rigid is likely to fail. So be prepared for the unexpected (e.g., leaky roof, failed car transmission).

Tips to help you stay on track

• Involve the entire family: Agree on a budget up front and meet regularly to check your progress
• Stay disciplined: Try to make budgeting a part of your daily routine
• Start your new budget at a time when it will be easy to follow and stick with the plan (e.g., the beginning of the year, as opposed to right before the holidays)
• Find a budgeting system that fits your needs (e.g., budgeting software)
• Distinguish between expenses that are "wants" (e.g., designer shoes) and expenses that are "needs" (e.g., groceries)
• Build rewards into your budget (e.g., eat out every other week)
• Avoid using credit cards to pay for everyday expenses: It may seem like you're spending less, but your credit card debt will continue to increase

This article originally appeared on Broadridge.

Scheduled system maintenance on our online loan application platform to take place 10/21 and 10/24 10PM-5AM PT/1AM-8AM ET. During this time, online loan application capability will be unavailable.

Online and Mobile Banking will be temporarily unavailable from 10 PM  PT Saturday, October 17^th to  4 AM PT Sunday, October 18^th.

ATM and debit card holders will have limited access to cash withdrawals and POS transactions during the above mentioned time frame.

On Monday September 21, 2020, we celebrated the grand opening of our new branch in Centreville, Virginia with a ribbon cutting ceremony and giveaways for all attendees. We want to thank our guest of honor Carey Smith, President and COO of Parsons Corporation, as well as our attendees, vendors, and staff.

If you missed the event, you can view photos here View photo and watch a video recap here . If you are interested in visiting the branch in person, it is located at 5875 Trinity Pkwy #111, Centreville, VA 20120.

Shelter in place. Lockdown. Quarantine.

Whatever you call it, it’s been a few months since the COVID-19 pandemic taught us what staying home for an extended period of time actually looks and feels like.

These are unprecedented times. And although things are unpredictable right now, we can control our ability to emerge from this challenge differently than we entered it.

“Like everything in life, every challenge and every hardship is a lesson to be learned,” says Eric Simonson, certified financial planner and owner of Abundo Wealth, based in Minneapolis.

Some of these takeaways are spiritual, emotional, mental or physical. And some are financial.

Here are three pieces of money advice you can apply to your bank account, budget and lifestyle as life evolves after lockdown.

Insulate against an emergency

Financial experts believe this pandemic has illuminated the pressing need for emergency funds and cash reserves.

“Financial advisors for years, I think, with a lot of people, could talk until they’re blue in the face about why an emergency fund is a good idea,” says Kevin Mahoney, CFP, founder of Illumint, a virtual financial firm based in Washington, D.C.

“But for people who were fortunate to have not actually experienced an unexpected medical event, a long-term job loss, whatever it might be, it can be hard to really convince people that this is a top priority for their money.”

Now, job losses, furloughs and medical emergencies have provided a tangible example of why these funds are so important.

The general rule of thumb for an emergency fund is to have three to six months’ worth of living expenses saved. That may or may not be enough, depending on the circumstances. If you’re able, save something now. Even $500 is a good start.

Prepare (don’t panic)

Emergency readiness will likely also extend to home pantries. For better or worse, when frenzy sets in, consumers begin panic shopping. Americans have seen the repercussions of that firsthand — disinfecting wipes are still difficult to come by.

Forward-thinking consumers will likely begin to accumulate a reasonable amount of essential supplies or stock an emergency kit in case they’re ever again unable to leave the house for an extended period of time.

“Consumers will adopt a mindset of ‘sufficient stockpiling’ as their awareness of life’s uncertainties has been magnified due to COVID-19,” Ross Steinman, professor of consumer psychology at Widener University in Pennsylvania, said in an email.

While there’s no need to hoard, it may be beneficial to prepare in case other people once again panic shop for food and essentials at the onset of future emergencies.

You may want to employ savvy shopping strategies for those necessary items that you’ll continue to buy. That may include purchasing bulk quantities at a lower price per unit, using products more sparingly or applying online coupons in an attempt to save money.

“During COVID-19, many consumers lost their primary source of income, or had it drastically reduced,” Steinman said. “As a result, individuals will be aggressively searching for discounts and promotions.”

Shift your spending

Monthly expenses will likely also look different moving forward. Mahoney believes the stay-at-home orders have acted as a budget reset for many.

“It’s hard to press pause on spending habits that you’ve had for many years,” Mahoney says.

But for months now, most people have been left with no choice other than to stop traveling, dining out, attending concerts and going to the movie theater. Budgets have therefore skipped over expenses that used to be recurring.

Some of these new routines might stick even when life regains some sense of normalcy. (Maybe you actually like those PB&J sandwiches at home. Or, maybe you’ll continue watching movies at home instead of in the theater.) If these do stick, it’s possible you’ll spend less discretionary money in the months ahead than you did before the pandemic began.

Through all three of these lessons, it’s clear living through a pandemic has served as an impetus to raise awareness about financial preparedness.

“A lot of my clients are now way more interested in budgeting and knowing where all of their dollars are being spent than they used to be,” Simonson says. “I think that will continue.”

This article was written by NerdWallet and was originally published by The Associated Press.

The article Financial Lessons We’ve Learned While Staying at Home originally appeared on NerdWallet.

It’s easy to spend more than you planned when buying a car. The nicer, more expensive cars are generally parked prominently on the showroom floor, while the average, more affordable cars are less visible. Once you see those shiny cars, it’s easy to become so excited that you forget your budget.

But spending too much on a car creates unnecessary financial stress. Despite the flashy rides and too-good-to-be-true deals you may see, there are a few steps you can take to stay in your financial lane when buying a car.

Set a budget

To manage your finances properly and prevent buyer’s remorse, prepare a monthly budget to determine how much you can comfortably afford for a car. Deduct your monthly expenses, including the amount you’ve allotted for savings, from your monthly take-home income. You can use the remaining amount for your car payment, insurance and car expenses. You can take a look at your monthly spend easily in our Online Banking platform with the Spending tool in Money Management. This will help give you an idea of how much you should be using towards your car.

Do your research

Before you go to a dealership, research what car you want to buy. There are many online resources for car buying, including Edmunds and Kelley Blue Book, where you can check out performance reviews, car values and more. If you visit the dealership without doing your homework, you may pay more for a car because you’ll be unfamiliar with its true value and any consumer complaints that could influence your selection or help you negotiate a good price.

Get preapproved for a loan

Monthly payments are determined not only by the cost of the car but also by the interest rate on the loan. A lower interest rate means a lower monthly payment. To save as much money as possible, compare the interest rates offered by your bank or credit union and other car loan providers to get the most reasonable rate. Get preapproved for the amount you can afford before you visit the dealership to negotiate the purchase. Remember, when determining the monthly amount you can afford, give yourself some padding for car insurance and other expenses.

Get a vehicle report

Viewing a used car’s vehicle history report can help strengthen your bargaining position or ensure that the car is in good shape. You can see if the service records correlate with the car’s mileage records or if there are any problems you may not have been aware of. Knowing the history of a car may also help you avoid spending money on future repairs. In order to obtain the report, you will need the car’s vehicle identification number. The VIN may be listed in online advertisements, or you can contact the dealer directly. Many dealerships will provide these reports for free if you ask. If you’re buying a used car from a private party, you can purchase a vehicle history report from CarFax or AutoCheck.

Get an inspection

If you’re buying a used car, have it inspected by an independent mechanic. The inspection should cost less than $100. That’s a small amount to pay for the peace of mind of knowing the car is reliable. If you discover a problem, you can ask the dealer to make the repair or negotiate a lower price. Both options will reduce your overall cost. If possible, get a complimentary warranty of at least 30 days, which offers some protection if the car has problems right after you buy it.

Be a smart negotiator

If you don’t have approved financing, never tell the salesperson the monthly payment amount you can afford. If you divulge this information, the dealership will simply adjust the terms or length of the financing arrangement to fit that payment amount. Your payments may still be within your budget, but overall you may be paying much more because you’d be paying for a longer period. Instead, you should negotiate directly on the cost of the car. Before agreeing to the deal, ask for the total price, along with a breakdown of the taxes and fees. This is known as the “out the door” cost.

Be prepared to walk away

When you’re negotiating the cost, if you can’t come to an agreement, leave the dealership. You’re the one who will be responsible for those payments, not the salesperson. Save yourself some money, reduce the frustration of haggling, leave and take your money with you. There are other cars and money to be saved at other dealerships.

A typical June includes vacations, travel, shopping, weddings and beaches. Budgets? Not really.

But the year’s halfway point provides a great opportunity to take a close look at your financial health and goals.

Especially with all that has happened so far in 2020, there is no better time to assess your finances and prepare them for the rest of the year.

Here are three important reasons to check your budget right now — and easy things you can do to ensure you reach your money goals for the rest of the year.

You can learn from the past

Judging your spending behavior is a productive way to see where you stand, according to Andrew Almeida, CFP, founder of Almeida Investment Management in New York.

Here’s how to do it: Log into your Online Banking account and go to the Spending tool in Money Management. Your purchases should already be organized into categories like Entertainment, Food & Grocery, and Travel. You can see your spending each month by filtering your purchases by date. Then see if you were over or under budget for each line item. If you have 10 categories, overshot three last month and stayed on budget for seven, you’d be at 70%. So give yourself a “C” for June.

Almeida recommends doing this each month. With six months of the year behind you, you’re in a good position to evaluate if you’re passing more months than you’re failing. But don’t get discouraged; you shouldn’t expect straight A’s.

“No one’s going to hit it 100% of the time,” Almeida says. “Life is fluid.”

One easy and effective way to monitor how you’re doing is by logging in to your financial accounts, according to Brandon Renfro, an assistant professor of finance at East Texas Baptist University.

“You can kind of see where your money went, and that will start to give you a better idea of problem areas or focus areas,” says Renfro, who is also a financial planner.

Lean on your credit card and bank account apps to help you track your cash flow. Some of these apps may even categorize the transactions for you.

You can prepare for the holidays and taxes

Once you’ve looked back, take a moment to think ahead. After all, the holiday season is only a few months away. And whether you like it or not, tax season will come shortly after that. Get ready now for these potential costly times of the year.

Start by setting a holiday season budget. “A lot of people don’t consider that, but it’s a big year-end expense, which I think you should account for,” Almeida says. “And if you haven’t by midyear, I think you should.”

If you’re not sure where to start, use the amount you spent last year on holiday gifts and festivities as a baseline. Again, you can use the Spending tool to check on your spending from the holidays.

Next, focus on taxes. That means reviewing your income, advises Helen Ngo, CFP, CEO of Capital Benchmark Partners in Georgia.

“When we do midyear budgeting, we don’t necessarily look at your spending,” Ngo says. “The first thing we look at is what money is coming in.”

She says to pay attention to things like your pay stubs and discretionary income. For example, are you withholding enough in taxes to break even in April? Did you pay off a debt in the first half of the year and now have more income you can contribute to your 401(k)? Make adjustments where necessary. If you need assistance looking at your investments, you can contact our CUSO Financial Services Advisor, Tiffany Yee to make an appointment.*

You can correct your course

By the time you finish these steps, you’ll likely have identified areas where your budget has room for improvement.

“If you’re way off your projected saving or spending goals, you can modify your habits for the rest of the year before it’s too late,” Yousif, of RBC Wealth Management, said in an email.

That may include eliminating small things from your budget, such as a subscription or membership you no longer need. And when you do remove something, redirect that money somewhere it can be more useful.

“For instance, maybe instead of just canceling the gym membership and letting the $20 fall wherever it goes, go ahead and direct that to savings,” Renfro says. That can help build your holiday fund, for example.

But what if you don’t even have a budget to check up on? It’s not too late. The midpoint of the year can give you a much-needed nudge to create one. The easiest way to create one is by using the Budget tool in Money Management. You can use the average you spent over the last 6 months to set the spending limits for each purchase category.

This article was written by NerdWallet and was originally published by The Associated Press.

*To schedule an appointment with Tiffany, email her at  tiffany.cfsinvest@parsonsfcu.com or call (626) 389-3078.

Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor.  Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.

CFS representatives do not provide tax or legal guidance. For such guidance please consult with a qualified professional. Information shown is for general illustration purposes and does not predict or depict the performance of any investment or strategy. Past performance does not guarantee future results.

Financial Advisors are registered to conduct securities business and licensed to conduct insurance business in limited states. Response to, or contact with, residents of other states will be made only upon compliance with applicable licensing and registration requirements. The information in this website is for U.S. residents only and does not constitute an offer to sell, or a solicitation of an offer to purchase brokerage services to persons outside of the United States.

Thank you for trusting us with your business during this unprecedented time for our nation.  Many of you may be grappling with feelings of uncertainty about the health of your finances. For nearly 45 years, the credit union has withstood numerous ups and downs and our commitment to serving our members remains steadfast.

Click on the button below for an important message from our President/CEO, Ray Crouse, on how we are addressing the ongoing coronavirus (COVID-19) situation.

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The City of Pasadena Public Health Officer, Dr. Ying-Ying Goh, has issued a revised order for control of COVID-19 requiring face coverings for essential workers effective April 15, 2020.

 Additionally, all customers and visitors of essential businesses must wear face coverings over their noses and mouths. As per the order, an essential business owner may deny service to anyone not wearing a face covering.

The economic impact of the coronavirus outbreak may have you thinking about — and let’s be real, losing sleep over — your finances now more than ever. With bills, investments and mortgage payments to consider, as well as looming fears about a recession, you may need an expert opinion to cut through the noise and calm your anxieties.

At a recent NerdWallet companywide discussion, four of our experts weighed in on what consumers can do during this time. Holden Lewis, Sara Rathner, Arielle O’Shea and Kimberly Palmer — NerdWallet writers and spokespeople across mortgages, credit cards and travel, investing, and personal finance, respectively — shared tips on the financial topics that are currently on everyone’s minds.

We’re sharing their responses to 10 of the biggest financial questions being asked right now. The answers have been lightly edited for clarity and length.

What should I do as a long-term investor?

Arielle O’Shea: The stock market is inciting a lot of fear right now. If you are a long-term investor — you’re not investing for a goal that is less than five years away, like a down payment for a house you want to buy in a few years — ride it out. The best reaction to these market moves is no reaction at all. People say that the stock market is the only market where people flee the store when things go on sale, but it’s important not to flee the store right now.

Takeaway: When it comes to the stock market, playing the long game is the smartest money move. The best reaction is no reaction at all.

What should I do if I’m close to retirement?

O’Shea: If you’re near retirement, it’s a bit of a different story, but not totally. You don’t stop investing on the day you retire. You need your money to last 20, maybe 30 years, so you should still think of yourself as a long-term investor. Many financial planners recommend having a pot of “safe money,” or cash available in savings or safer investments [such as bonds or target-date funds] that can cover you for at least the first few years of retirement. Take less risk as you approach retirement.

Takeaway: You still have a long time to invest, even if you’re close to retirement, but have some “safe” money in cash or other investments — enough to last a few years — and rebalance your portfolio so that you’re minimizing risk.

How can I take control during a time of market volatility?

O’Shea: Control what you can control. See if you can lock in a high-interest rate with a certificate of deposit before rates fall further, shop around to find a high-yield savings account, increase your 401(k) contributions, max out an IRA or consider investing more in a 529 plan.

Takeaway: Don’t feel stuck. You can still open a CD, explore a high-yield savings account and max out your IRA, among other things.

How should I budget during these times?

Kimberly Palmer: Make sure you have an emergency fund. In general, we recommend saving three to six months’ worth of expenses. It’s also important to apply the 50/30/20 budget — 50% of your take-home pay goes toward needs, like groceries and mortgage or rent, 30% to wants and 20% to debt payments and savings.

It’s the 30% wants that we have the ability to cut back on quickly if we need to. A lot of that cutting back is happening because we don’t have a choice — commuting expenses and restaurant spending are going down naturally. Of course, other expenses are possibly going up as people are spending more on at-home activities for children and online exercise.

Takeaway: In addition to setting up an emergency fund, try the 50/30/20 budget as a way to manage your spending during this time.

How should I prioritize different expenses in an emergency?

Palmer: We recommend paying your most important bills, like mortgage or rent, on time to protect your credit score. Some companies are being more flexible, so if you just can’t make a certain payment, the first call can be to that company. Some credit card issuers and banks have announced leniency programs and are waiving payments and interest.

Takeaway: Don’t let your most important bills fall through the cracks — and ask your credit card issuers and banks for help or extensions on other bills if you need to.

What does this mean for me as a homeowner?

Holden Lewis: Know that this recession has a different cause than the last one, which had a direct link to the housing market. Fannie Mae, Freddie Mac, FHA and the VA are already directing servicers to offer relief to borrowers who suffer cuts and interruptions in income. Using a HELOC — a home equity line of credit — should be a last resort. You could lose your home if you don’t make the payments. If you want to have a HELOC to have that pool of money available, apply for it while you still have income.

We’re in a refinancing boom, but don’t rush into one just because everyone is doing it. Know your goal — to get the lowest possible monthly payment, get rid of FHA mortgage insurance or shorten your term — and you’ll get a better deal.

Takeaway: Look into mortgage relief options, and make a HELOC your last resort. And while refinancing could be a good step to take, make sure you’ve thought about your goal for doing so.

What do I do if I’m planning to buy a home this year?

Lewis: Know what you can comfortably afford and stay in that range. Save two to six months’ worth of mortgage payments and have them stashed away the minute you close on a loan — that way you can afford an emergency repair or emergency income, and your lender may even require you to have that saved.

Takeaway: It’s more important than ever to have enough savings and a realistic price range for a home if you plan to buy one in the near future.

What if I have credit card debt?

Sara Rathner: Credit card interest rates have dropped a little, but it’s still a higher interest rate than other forms of loans. To free up cash flow, one option is a balance transfer card. These often require good or excellent credit in order to qualify and many charge a 3%-5% fee of the transferred balance, so that’s something to budget for. If you have any debt remaining on your card once the promotional period is over, you’ll have interest on that remaining debt, so time payments accordingly.

Personal loans are another option for debt repayment. These consolidate multiple debts into one payment that typically have a lower interest rate than what credit cards charge.

Finally, there are various debt repayment methods, including the debt avalanche method, where you list debts in order from the highest to lowest interest rate and make minimum payments on every single one. This helps avoid late fees and credit score dings. Regardless, it’s always better to do something rather than nothing.

Takeaway: There are multiple strategies to consider if you have credit card debt, including a balance transfer card, personal loan and debt repayment methods.

What if I have travel booked for the near future?

Rathner: You might not have to do anything — the airline may cancel your flight and work with you to rebook or refund the unused value of your ticket. If you do need to rebook, try doing it online to save time. If that’s not working for you, wait about 72 hours before your flight. Airlines have such high call volume right now.

Takeaway: If your airline hasn’t already canceled your upcoming flight, wait about 72 hours before your flight to contact it.

Can I book travel right now?

Rathner: If you need to book travel, wait as long as you possibly can. Everything is changing so quickly. If you must book, have a credit card that offers travel protections and use that card to make the booking. For expensive trips, consider travel insurance. “Cancel for any reason” coverage exists; it’s an expensive add-on to an existing policy, but if you’re already spending thousands or tens of thousands on a trip, it might be worth it.

Takeaway: Wait as long as possible to book any travel. If you must book, use a credit card with travel protections.

If you need direct assistance with your finances, Parsons FCU has over 44 years of financial expertise, navigating the ups and downs of the economy. Contact any of our financial experts below.

Investment & Retirement Planning :

Tiffany Yee, CUSO Financial Services* Advisor

Email: tiffany.cfsinvest@parsonsfcu.com

Phone: (626) 389-3078

Borrowing & Lending

Email: loandept@parsonsfcu.com

Phone: (800) 765-4527

Savings

Email: mbrserv@parsonsfcu.com

Phone: (800) 765-4527

The article NerdWallet Experts’ Tips on Handling Finances During Coronavirus originally appeared on NerdWallet.

*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor.  Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.

CFS representatives do not provide tax or legal guidance. For such guidance please consult with a qualified professional. Information shown is for general illustration purposes and does not predict or depict the performance of any investment or strategy. Past performance does not guarantee future results.

Financial Advisors are registered to conduct securities business and licensed to conduct insurance business in limited states. Response to, or contact with, residents of other states will be made only upon compliance with applicable licensing and registration requirements. The information in this website is for U.S. residents only and does not constitute an offer to sell, or a solicitation of an offer to purchase brokerage services to persons outside of the United States.

To Our Members:

Thank you for trusting us with your business during this unprecedented time for our nation.  Many of you may be grappling with feelings of uncertainty about the health of your finances. For nearly 45 years, the credit union has withstood numerous ups and downs and our commitment to serving our members remains steadfast.

In light of everything that is happening in the economy right now, I want to reassure you that Parsons FCU is a sound and stable financial institution. With a 5-Star rating from BauerFinancial and 77% more reserves than what is required by federal regulators, we are well-equipped to support you throughout this epidemic. In addition, we insure our members’ deposits up to $500,000, which is double what major banks offer to their customers. Protecting our members and their well-being is our priority.

I also appreciate many of you who are limiting your visits to our physical location and utilizing our robust online banking services and capabilities. The enhanced technology we introduced last year has been instrumental in allowing you to manage your finances, uninterrupted, from the comfort and safety of your own home. We encourage you to take advantage of our online chat function, which helps alleviate call center traffic and yield shorter wait-times for everyone.

Taking guidance from our local authorities such as the Centers for Disease Control (CDC) and Public Health Department, we are implementing a work from home program for our staff beginning Monday, March 23, 2020.  Practicing social distancing is important in controlling the spread of coronavirus and minimizing the risk of exposure for our employees. Each week, half of our staff will be working remotely, with the other half working from our central location. We do not anticipate any impact to member services following this decision.

We are here to partner with you to weather this situation and make your life’s journey easier. We understand that there may be instances where members find themselves facing financial difficulties. Our people are here to help and we encourage members who may be impacted to reach out to discuss how we might be of assistance.

As this situation continues to evolve, we will update you with any additional changes. In the meantime, stay healthy, and stay safe.

K. Ray Crouse

President/CEO

Millennials grew up online. From making their first screen names with America Online in the ’90s and poking around chatrooms, to using HTML to customize their Myspace pages in high school, and now curating their Instagram feeds, navigating the internet is second nature to these digital natives.

But this ever-online generation may be uniquely positioned as targets of internet scams.

Millennials are 25% more likely to report losing money to fraud than those over 40, according to an October 2019 report by the Federal Trade Commission. The report also found this age group:

• Was twice as likely to report falling victim to shopping fraud.
• Reported getting bested by business and debt relief scams in greater numbers.
• Was 77% more likely than older consumers to report losing money to a scam that started over email.

While millennials are more likely to report this kind of fraud, the tools to prevent and recover from such scams apply to consumers of any age.

Social media shopping

It’s become a meme of its own: “What it looks like online versus what you get when it arrives.” That dress or pair of sneakers may look good online, but when it arrives, you find that the dress looks like a dishrag and the sneakers are held together with hot glue.

Millennials are twice as likely to report losing money to items that are different from what they expected or that never show up, compared to those over 40. This all-too-common occurrence might seem like the cost of doing business online, but it’s actually a form of online shopping fraud.

Misleading ads in social media feeds and for online-only stores may be to blame for more frequent reports of shopping fraud, says Charity Lacey, vice president of communications at Identity Theft Resource Center, a nonprofit organization that helps consumers recover from identity theft.

Lacey warns consumers to exercise caution before purchasing items from any unfamiliar company they encounter online, especially if it seems like they’re selling only one or a handful of products, since that can be a warning sign of a scam company. “I would liken this to the guy with the trench coat selling watches and gold chains,” says Lacey.

What you can do: Vet any company before you buy from it online. Proceed with caution if the company doesn’t have an address listed online, has no clear return policy and sells only the one item you saw advertised.

Use a credit card when shopping online, advises Lisa Schifferle, staff attorney at the FTC. That way, if you encounter fraud, you can take advantage of protections under the Fair Credit Billing Act, which can help you get reimbursed. If you suspect your card has been compromised, you can easily turn your card off using our Online Banking’s Card Management tool.

Report the fraud to your credit card company and file a complaint with the FTC as soon as you think there’s a problem, Schifferle says. Gather information about the transaction, including purchase amount, vendor name and transaction date, before contacting your card issuer. This information should be on your billing statement. You may also want to request a new credit card number to protect yourself.

Debt relief offers

Millennials are notoriously debt-saddled, so it might not be surprising that this generation also reports more instances of falling victim to debt relief scams. In fact, millennials were 86% more likely to report losing money to debt relief scams compared to those over 40.

Some scams work by having you pay an upfront fee for their services — and then never deliver on their promise. Know that it’s illegal for a company to charge upfront fees in this way.

Be wary of companies that offer debt help that seems too good to be true. “If [the company] promises to get rid of all your debt, or if they tell you don’t talk to your creditors, those are red flags,” says Schifferle.

What you can do: Report any incidents of debt relief fraud to your state’s attorney general.

Talk with a nonprofit credit counseling agency for debt help. These organizations offer free financial advice and can help you find legitimate ways to make your debt more manageable. One way is to use the Goals tool on Money Management in Online Banking; you can set a timeline for when you want to pay your debt off and the app will help you calculate and set up a recurring monthly payment. To access Money Management, just log in to Online Banking on your desktop and click on the Money Management tab.

This article “You’re an Online Fraud Target — Fight Back” was written by NerdWallet and was originally published by The Associated Press.

Another new year, another chance for well-intentioned resolutions to start with a bang and fizzle out. But unlike failing to drop those last five pounds, falling short on financial goals you’re banking on in 2018 could cost you for years to come.

Generally, attainable goals follow the S.M.A.R.T. approach: They’re Specific, Measurable, Achievable, Realistic and Time-based. But that doesn’t mean attainable goals are all easy. A recent study indicates certain money goals that fit these criteria can remain challenging for some who are striving toward them.

Setting big goals is admirable, but if they are too big a leap from your current financial progress, you could be setting yourself up for disappointment. You can make them more achievable by breaking bigger goals into smaller ones.

Achieving any one of these three following money goals can bring you closer to personal financial security. But as with any resolution, the devil is in the details. Merely saying you’re going to do something isn’t enough; you need to create a road map and form lasting habits that will propel you toward a desired outcome. Similarly, if your goal is stick to a budget, outline the smaller steps it will take to get you to do that.

Stick to a monthly budget

Following a budget should be on everyone’s to-do list, particularly if you have bigger financial goals in sight. Building your budget is the easy part, but sticking with it is about creating and maintaining good habits.

• Start: Create your budget with personal priorities and long-term goals in mind. Aiming to set aside 50% of your income for needs, 30% for wants and 20% for debt and savings is a good place to start.
• Create good habits: Commit to tracking your spending daily, and create a standing weekly check-in with yourself to ensure you’re on target. Our Money Management tool in Online Banking can help you keep track of your spending with visual aids and customizable budgets that you set.
• Make it last: Every month, sit down and review your progress. Make adjustments as needed. As an added incentive, budget a small reward every few months for sticking to your plan — an extra meal out or movie tickets, for example.

Save for an emergency fund

Ideally, you’ll one day have three to six months of living expenses set aside in case of an emergency, but if you’re starting with nothing, every little bit counts.

• Start: If you have nothing set aside, start small; target $500 as your first mini-goal. Once you’re there, up it to $1,000, and continue in this manner until you have a month’s living expenses set aside.
• Create good habits: Automate your emergency fund by having a portion of your paycheck direct deposited into a separate savings account. Remember, you want this money easily accessible in case of emergency, so a traditional or online high-dividends savings account is a wise choice. Our Kasasa^TM Cash checking account gives you high dividends on your balance every month by meeting a few easy criteria.
• Make it last: Your emergency fund goal should be a moving target, and six months of living expenses is ambitious. Once you’ve got a single month’s worth, focus on paying off any high-interest debt or getting closer to your retirement goals before focusing back on saving the next month’s worth of expenses.

Save for a down payment

A home down payment can take years to amass, so set realistic expectations and use your long-term vision on this goal.

• Start: Determine a realistic goal down payment amount, considering both your anticipated budget and the type of home loan you’ll use. A home affordability calculator can help you do the math.
• Create good habits: As with any savings goal, automating this one will make it easier to stick with it, so have a portion of your paycheck set aside automatically and be flexible enough to adjust this amount as your income or expenses change. With the Goals function in Money Management, you can set a portion of your savings to go towards a goal and the app will help you calculate how much time it will take to reach your goal as well.
• Make it last: Knowing your total savings goal and how much you plan to set aside each month, figure out how many months it should take. Mark off each successful month of saving on a calendar. This small action can provide a sense of accomplishment and give you a nudge to keep going.

The article 3 Money Resolutions That Are Worth Getting Right originally appeared on NerdWallet.

Big sales, must-have items and a list that just seems to get longer: Holiday shopping can drain your wallet and your sanity.

Don’t let the stress erode your guard against identity theft, though. All that holiday shopping can leave you more vulnerable to scams.

Save yourself from falling victim by recognizing these sources of scams.

1. Unsecure networks and devices

Shopping over public Wi-Fi, such as an airport network, or leaving your devices without passcodes can make it easier for scammers to access your information, including your bank account and login credentials.

Tip: Secure your devices with passcodes and don’t enter sensitive information, such as your credit card number or Social Security number, onto websites while using public Wi-Fi.

2. Gift card scams

Rather than going after your credit or debit card information, some scammers want your gift cards. One red flag to watch out for: When you’re making a purchase on a website or over the phone and the seller takes gift cards from other retailers — like an iTunes or Google Play gift card — for payment, that’s a sign of trouble.

Paying with a gift card can leave you vulnerable because there’s little protection if a vendor doesn’t hold up its end of the deal. “People should use their credit cards for purchases, because they have the most protections,” says Lisa Weintraub Schifferle, staff attorney at the Federal Trade Commission.

Tip: Avoid retailers that require payment via gift cards from another company.

3. Phishing websites and emails

You get an email from a relative with a dancing Santa, or enter your information on a website that promises the lowest price on big-ticket electronics — if you create an account. But when you click on that festive image to get that coupon, your info could be in the hands of scammers.

Exposing your information to a sketchy website can leave you vulnerable to identity theft down the road. If you use the same login credentials for multiple accounts, for example, a scammer could use that information to get into your email or bank account.

Tip: Don’t click any link or image in an e-mail you don’t recognize, and use different login credentials for different websites. If the e-mail contains an image linked to a website, you can hover your mouse over the image to see a preview of the link. If you do not recognize the website, do not click the link.

This article originally appeared on NerdWallet.

Businesses sell shares of stock to investors as a way to raise money to finance expansion, pay off debt, and provide operating capital. Each share of stock represents a proportional share of ownership in the company. As a stockholder, you share in a portion of any profits and growth of the company. Dividends from earnings are paid to shareholders, and growth is realized by the increase in value of the stock.

Why invest in stocks?

The main reason that investors buy stock is to seek capital appreciation and growth. Although past performance is no guarantee of future results, stocks have historically provided a higher average annual rate of return over long periods of time than other investments, including bonds and cash alternatives. Correspondingly, though, stocks are generally considered to have more volatility than bonds or cash alternatives.

Investment Risks

There are no assurances that a stock will increase in value. Several factors can affect the value of your stocks:

• Actions of investors: If a large number of investors believe that the nation is entering a recession, their actions can affect the direction of the stock market
• Business conditions: A new patent, an increase in profits, a pending merger, or litigation could affect investor interest and stock prices
• Economic conditions: Employment, inflation, inventory, and consumer spending influence the potential profit of a company and its stock price
• Government actions: Decisions on interest rates, taxes, trade policy, antitrust litigation, and the budget impact stock prices
• Global economy: Changes in foreign exchange rates, tariffs, or diplomatic relations can cause stocks to go up or down

All investing involves risks, and there can be no assurance that any investing strategy will be successful. However, understanding these factors can help you make sound investment decisions and keep losses to a minimum.

It is usually best to diversify among the different classifications and not own stock in just one or two companies or industries (though diversification alone cannot guarantee a profit or ensure against a loss).

Buying & Selling Stocks

During an initial public offering (IPO), new issues of stock are sold on the basis of a prospectus (a document that gives details about a company's operation) that is distributed to interested parties. Investment bankers or brokerage houses buy large quantities of the stock from the company and sell them to investors. After the IPO, the stock may trade on a stock exchange or over the counter.

Normally, stock is purchased through a brokerage account. The buy order you place will be directed to the appropriate stock exchange. When someone who owns the stock is willing to sell at the price you are willing to pay, the sale takes place. A commission or fee is charged on your transaction.

Stock certificates may be transferred from one owner to another since they are negotiable instruments. The certificates are issued in the buyer's name or, more typically, held by the brokerage house in street name (i.e., the brokerage firm's name) on behalf of the investor. The advantage of a street-name registration is that if you decide to sell, you do not have to sign and deliver the stock certificates before the sale can be completed. And you don't have to worry about losing the stock certificates.

Read the account agreement

Never sign a document without reading and fully understanding it. Early precautions can prevent later misunderstandings. Keep good records of:

• Documents you sign
• Documents outlining the details of an account or investment
• Periodic account statements
• Transaction confirmations
• Documents verifying an account error was corrected
• Correspondence with your broker or agent

Review these as soon as you receive them. Discuss any discrepancies you find with your broker or agent at once, and follow up on any actions taken until you are satisfied. Never allow your broker or agent to mail statements and transaction confirmations to someone other than you. It's important that you check the accuracy of your own accounts.

Be patient

Some stock investors have made money quickly. But they are the exception rather than the rule. Investing in stocks requires a long-term outlook. Read books, attend seminars, and take advantage of professional advice. Education, good judgment, common sense, and above all, patience increase your chances of achieving your goals.

This article was originally published by Broadridge Investor Communication Solutions, Inc. Copyright 2019.

Are you interested in learning more about investments and financial planning?

We have a series of financial planning webinars lead by Tiffany Yee, CFS* Financial Advisor at Parsons FCU. You can explore a variety of investment topics and access these webinars by going to our website under Planning & Insurance, and clicking on Investment Services. You can also schedule a complimentary financial portfolio review with Tiffany by calling (626) 389-3097 or emailing tiffany.cfsinvest@parsonsfcu.com .

This article originally appeared on Broadridge. Copyright 2019.

*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor.  Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.

Consumers affected by the 2017 Equifax data breach (that’s most U.S. adults who have credit) can get their names on the list to get free credit monitoring and/or monetary compensation.

You can see if you’re included by visiting  the settlement website .

But the compensation you apply for may not be what you end up with. Watch for qualifiers like “up to,” and know the limitations of the settlement.

Free monitoring or $125: What to know

All affected consumers can get free credit monitoring. Or, if they already have credit monitoring, they can apply for alternative compensation of up to $125.

You are choosing between a guaranteed minimum amount of free credit monitoring or compensation that could be well less than $125, depending on how many people apply.

What value do you get from free monitoring?

The free  credit monitoring  gives you four years of free monitoring from Experian that covers the three major credit bureaus, Equifax, Experian and TransUnion. The lowest price Experian advertises on its website for that coverage is $19.99 a month. After the three-bureau monitoring expires, you can opt to have up to six years of one-bureau monitoring from Equifax.

What if I want cash instead?

If you already have credit monitoring and plan to keep it for at least six months, you can choose the cash option. You can get either a prepaid card or a check for your reimbursement.

What is the likely value if I get cash?

Settlement terms say that alternative reimbursement claims will be paid from a $31 million “bucket.” If there are enough claims to empty that bucket, the amount each person gets will drop as the pool of money is distributed proportionally.

What are the odds of getting the maximum $125?

There would need to be no more than 248,000 approved claims out of the 147 million consumers affected — or less than one-fifth of one percent — for approved applicants to get the full $125.

What about the time I spent protecting myself after the breach?

You can get “up to” (there are those words again) $25 an hour you spent on:

• Dealing with fraud that was “fairly traceable” to the breach, up to 20 hours, and you’ll need documentation.
• Freezing and/or unfreezing your credit, comparing and/or purchasing identity theft protection services, up to 10 hours, and you must certify that you are being truthful.

There is another $31 million bucket of money to cover claims for time spent. If it is exhausted, payouts will be reduced proportionally.

What about out-of-pocket costs?

The limit is $20,000 per person, and you’ll have to provide documentation. Those expenses can include credit monitoring after the breach, legal expenses, postage, notaries and more.

Those claims will be paid from the $380.5 million fund Equifax has set up to pay for monitoring services and to compensate consumers. If that payment is not enough to pay initial claims, there is an additional $125 million available. The money is split into various buckets for different kinds of claims, in much the same way that a budget might work with the envelope system.

The settlement administrator will decide if your claim for out-of-pocket losses is valid.

Is there a filing deadline?

Yes, you have until Jan. 22, 2020, to file for any of these remedies. You can apply online, print out an application form and mail it, or request that a form be mailed to you.

When will I get my benefits?

Not right away. If you choose monitoring, you’ll get information on how to activate it once the court finalizes the settlement. A final approval hearing is scheduled for Dec. 19.

Checks or prepaid cards for alternative reimbursement, time spent or out-of-pocket losses could take “several months or more,” according to the breach settlement website.

What if I have breach-related losses later?

If there is any money left to compensate consumers after the initial rounds of claims, there will be an extended claims period for losses that occur after the first deadline.

Consumers will be able to seek reimbursement for new out-of-pocket losses or time spent, but not for time and money spent protecting their credit such as by purchasing credit monitoring. You’ll have to certify that you have not already received reimbursement for the claimed loss. Claims must be made by Jan. 22, 2024, and will be paid on a first-come, first-served basis.

How can I protect myself now?

You can  freeze your credit . Freezing credit can keep identity thieves from opening credit accounts in your name. It’s free and doesn’t hurt your score. As long as you are not actively seeking credit, there’s little reason not to freeze it.

If you need to unfreeze briefly, that process is also free.

In contrast, credit and identity theft monitoring are more useful for telling you when access has already happened.0

The article "How to Navigate the Equifax Data Breach Settlement Offer" was published by the Associated Press and originally appeared on NerdWallet.

THE IRS AGENT CALLING you on the phone isn't really from the government, and the person collecting disaster relief funds may actually be lining his own pockets. Phone scams are common, and they often prey on people's generosity or fear.

Nearly 1 in 6 Americans have lost money to a phone scam in the last 12 months, according to the 2019 U.S. Spam and Scam Report from the phone app Truecaller.

"They are really, really good at it," says Patrick Simasko, an elder law attorney and wealth preservationist with legal firm Simasko Law in Mount Clemens, Michigan. Scam artists have perfected their pitch and use spoofed numbers to make calls look legitimate on caller ID. However, you'll know it's a scam if the person on the other end of the phone demands payments via gift cards or wire transfers. Requests for sensitive information such as Social Security numbers, birthdates and passwords should also be red flags.

While crooks use many scenarios, here are 10 common phone scams currently making the rounds.

1. Threatening calls from the IRS.
2. Technical support calls.
3. Fake charity appeals.
4. Lottery scams.
5. Family members in peril.
6. Bank fraud calls.
7. Insurance, health care and debt scams.
8. Website password requests.
9. Fake customer requests.
10. Other urgent requests.

Trevor Buxton, security communications manager for PNC Bank, recommends people avoid engaging with scammers. "Your best defense against these types of calls is just to ignore them," he says. While some people like to waste a scammer's time by stringing along the conversation, Buxton says that may not be wise. Some scams use voice-recording software, and the more you talk, the more likely you'll say something that the crooks can use to make unauthorized transactions in your name. It's best to hang up immediately.

While anyone can be susceptible to falling for a scam, seniors could be more trusting on the phone. "Everyone should have a conversation with an older loved one," says Kevin Witt, chief technology officer for investment firm Kestra Financial in Austin, Texas. Before you sit down with them, though, familiarize yourself with these common phone scams.

Threatening Calls From the IRS

Especially popular during tax season, IRS phone scams involve crooks impersonating federal agents. They sound official and may even provide a badge number. If immediate payment isn't made, they threaten lawsuits or may say the police are on the way to make an arrest.

"First of all, the IRS will not call you by phone," Buxton says. "That's a pretty sure sign it's a scam." What's more, they typically ask for payment in the form of gift cards, something the IRS would never do. The IRS almost always makes its first contact via the mail, and it will never demand payment over the phone. Fraudsters like gift cards because they are untraceable, but they are a dead giveaway that a call is not legitimate.

Technical Support Calls

In this scam, the caller typically says they are from a well-known company like Microsoft or Apple and have detected an error on a person's computer. They will then talk the victim through a series of steps to "fix" the problem. In reality, a person is unwittingly downloading software that will hijack their system or give the caller remote access. Scammers use it to gather sensitive data or install ransomware, which requires a payment to unlock a computer's files.

"It's ripe for elder abuse because they lack the technical sophistication," Witt says. Younger people might recognize something fishy about Microsoft calling them, but seniors could be more trusting. As with the IRS scenario, these calls are always fake. Microsoft and other tech companies do not make unsolicited technical support calls.

Fake Charity Appeals

Charity scams are common after a natural disaster or other tragedy. "The crooks count on the goodwill of people who want to help," Buxton says. To avoid giving money to a criminal, don't make any donations to unsolicited callers. Instead, do your own research using sites like Charity Navigator or Guidestar to select a reputable charitable organization.

Lottery Scams

If you get a call saying you have been randomly selected to win a foreign lottery, don't believe it. These calls are fake, and the tipoff is that the caller will say you need to pay taxes or other government fees in order to collect the winnings. "Why am I paying for something I have won?" Buxton says. "That should be a red flag right away."

Family Members in Peril

These scams often target seniors, Simasko says. Someone calls to tell grandma they are in trouble. Maybe they are in jail and need bail money or their car has broken down. "Of course, she can't quite hear right," Simasko says, so she assumes it is, in fact, one of her grandchildren and is quick to provide payment over the phone.

If you get a call that is supposedly a family member in a crisis, hang up and call that person's number directly. If you are unable to reach them, call another friend or family member who may be able to validate their whereabouts. Try the courthouse or police department if a person is allegedly in legal trouble. Most importantly, impress upon senior family members that they should be skeptical of unusual calls from family members asking for money.

Bank Fraud Calls

Sometimes crooks will pretend to be the good guys. They may call and say they are alerting a customer to potential fraud in their bank account. As the call progresses, they request bank account numbers, passwords or other sensitive data. Don't provide these details to anyone calling you. Hang up instead.

Then, contact your institution directly to confirm whether the call was legitimate. Don't use a number provided over the phone or in a voicemail from an unknown person either. Use the number for your local branch. "I call my bank back on a number I know is legitimate," Buxton says.

Insurance, Health Care and Debt Scams

A number of very similar phone scams involve fraudsters trying to sell auto warranties, offer debt consolidation loans or confirm health insurance information. It's best not to buying anything over the phone unless you have initiated the call. Also, be aware that debt consolidation offers and people posing as health insurance representatives may be fishing for information that can be used for identity theft.

As with the IRS, "Medicare isn't going to call you," Simasko says. If someone claims to be calling about your health coverage, the safest course of action is to hang up and call back the number on your insurance card.

Website Password Requests

Scammers may be after access to your online accounts. They call under a number of pretenses, such as providing technical support or to follow up on suspected fraud, and then ask for your password to verify your identity. "You never should be asked to disclose a website password over the phone," Witt says. "There is no legitimate reason for that."

Fake Customer Requests

It isn't just individuals who receive scam phone calls. This can be a problem for small businesses too. Every company should educate its employees on potential scams and proper safeguards. "They should think of their jobs as standing on a watchtower," Witt says.

At his firm, Witt says scammers will call posing as customers. They typically have some sort of emergency that needs to be addressed immediately. "The bottom line is that they need money wired somewhere," he says. Employees need to be trained to confirm a person's identity in these situations. Ideally, that will involve connecting with customers through two channels, such as phone and email, to verify they did, in fact, call the office.

Other Urgent Requests

Phone scams are constantly evolving, but they have a common thread. "Almost all the scenarios that have crossed my desk have a sense of urgency," Witt says. Scammers are insistent that whatever they are calling about needs to be addressed immediately or the opportunity will be lost. If anyone is pushing you to make a quick payment or decision over the phone, step back and re-evaluate whether what they are saying makes sense.

Should you find yourself the victim of a phone scam, it can be difficult to recover money. However, you should still file a police report and contact your bank. What's more, if your Social Security number has been compromised, contact the three credit-reporting bureaus of Experian, Equifax and TransUnion to request fraud protections be placed on your credit reports.

This article was written by Maryalene LaPonsie and was originally published on U.S. News & World Report.

One of the best new tools to fight fraud is mobile banking alerts. These alerts are set up by users so that they can receive notifications about suspicious transactions on their accounts and help prevent fraudulent activity.

Users can choose from a variety of alerts to set up, but there are a few that are crucial in identifying fraudulent activity. Log in to Parsons FCU’s app and set up alerts to go off in these five situations:

1. Large purchases

Set an alert whenever a single purchase is made that exceeds an amount you decide. If a fraudster tries to make a purchase over that amount, you will be notified, and you can cancel the card ASAP if you do not recognize the transaction.

2. When your profile or password changes

When your personal information on the website or app changes, you will receive a notification. If this change does not correspond with your activity on the app, call our Member Service [ZS1]   [KC2]   Representatives to let them know , and they can help you reset the information.

3. When an ATM withdrawal exceeds a certain amount

If you only use ATMs to get a few twenties at a time, set up this alert , so you’ll know of any big withdrawals you didn’t authorize.

4. When your account drops below a specific amount

While this alert is standard to keep accounts healthy and avoid fees, it is also helpful in preventing fraud. If a fraudulent purchase causes the account to drop below the amount you set, you will be notified and you can check on your transactions to see if any of them were fraudulent.

5. When any debit or credit card purchase occurs

While frequent shoppers may be annoyed at first by this notification, this will let users know whenever a purchase happens, so members can identify fraudulent activity as quickly as possible.

These notifications will help users track fraudulent activity for many types of transactions. While it is important to check your online banking as much as possible, these alerts can help you identify fraud as it happens. If any alerts lead you to believe that you are a victim of identity theft, please contact Member Services immediately. The sooner you report fraud, the faster Parsons FCU can help resolve these unauthorized transactions.

The article 5 Simple Alerts That Will Help You Bank Smarter and Safer originally appeared in our Quarterly Newsletter published in January 2019.

Recessions are like natural disasters: They’re inevitable, but smart preparation may reduce the impact on you.

The U.S. economy has grown steadily since emerging from the “Great Recession” in June 2009, but expansions can’t continue forever, and this one is already the second-longest on record. Only the expansion from March 1991 to March 2001 lasted longer.

Recessions occur when growth stops and the economy starts to shrink. They vary in severity and length, but often jobs disappear, incomes decline and lenders make it harder to qualify for credit.

Knowing what may be coming can help you fortify your finances to withstand a possible slowdown. Here are some steps to consider.

Reduce your ‘must haves’

The 50/30/20 budget suggests limiting your must-have expenses to 50 percent of your after-tax income, with 30 percent allocated to wants and 20 percent to debt payment and savings. Must-haves include shelter, transportation, food, utilities, insurance and minimum loan payments.

Limiting essential expenses ensures you have room to pay off the past, save for the future and have a little fun. Capping them also helps during bad economic times, when you may need to sharply reduce your spending because of job loss or reduced hours.

Protect your credit scores

Lenders often get pickier during recessions. They may freeze lines of credit, close credit card accounts and make new loans harder to get.

People with good credit scores tend to fare better when lenders get choosy. Lenders need to stay in business, after all, so when delinquencies and defaults rise they want to cultivate customers who are most likely to pay them back.

Because high scores suggest you’ll pay as agreed, protecting your scores is essential. That means paying all your bills on time, using only a small amount of your credit limits, keeping old credit card accounts open and being selective about opening new accounts.

Increase your financial flexibility

Ideally, everyone would have an emergency fund equal to at least three months’ worth of expenses. But most people don’t have nearly that much saved, and building up such a stash can take years.

In the meantime, it’s smart to set up access to additional credit that you can tap if you lose your job or face other financial setbacks. If you own your home, you may be able to set up a home equity line of credit or replace your current line with one that has a higher limit. Having a few credit cards can help as well.

The key to the strategy is to keep these lines open and unused. (You’ll need to make a few small charges to keep the credit cards active, but you should pay the balances in full each month.) If you have credit card debt, focus on paying that down since you’ll free up available credit and save money on interest.

But don’t rush to pay off student loans or mortgages, especially if you have higher-rate debt or a paltry emergency fund. Your extra principal payments typically won’t reduce your required monthly payment, and you can’t get that money back if you need cash in an emergency. Although being debt-free is a good goal, in a recession it can be more important to have financial flexibility.

Update your investments

If your stock market investments include money you’ll need in the next five years, now is the time to move it to a lower-risk investment such as a short-term bond fund or cash.

You should be able to leave any stock market investments alone for at least five years and preferably 10, so your portfolio has time to recover from downturns.

Now is also a good time to rebalance your portfolio to your target mix of stocks, bonds and cash. The long bull market means that you may have too much money in stocks, which leaves you more vulnerable to drops. If you’re not in the habit of rebalancing at least once a year, consider using a target-date retirement fund, a lifestyle fund or a robo-advisor, which all take care of that chore automatically.

There won’t be tax consequences for these moves if you’re investing inside a tax-deferred account, such as an IRA or 401(k). Before making moves in a taxable account, consult a tax pro.

All of these steps make sense regardless of what happens with the economy. Taking them now can help you better handle whatever comes next.

This article was written by NerdWallet under the title "There’s Always a Next Recession, so Be Prepared" and was originally published by The Associated Press.

With our online banking conversion coming up soon, there are a few key pieces of information all of our members need to know about.

Important Dates to Know

In preparation for the upgrade, our Online Banking and Bill Pay will be temporarily unavailable . In addition, our current Mobile App will be deactivated . Here are the dates you need to know:

• January 25: Please avoid scheduling any peer-to-peer payments or transfers starting on this day.
• January 28: Online Banking and Bill Pay will be unavailable starting on this day. The current Mobile App will also deactivate on this day.
• January 30: Online Banking and Bill Pay will be live again. Please see the instructions below on how to log in to our new Online Banking for the first time below. Our new Mobile App will also be available to download today from the App Store and Google Play.

How to Log In For the First Time

On January 30, 2019, here are the steps you need to know to access your new online banking platform for the first time.

1. Log in directly from our website,  www.parsonsfcu.org . For your initial, first time sign-on, you will be using your  existing username  and the  last 6 of your SSN + full year of birth as your temporary password . (e.g., XXXXXX2018) You do not have to register if you are already an Online Banking user.

   If you are  not an existing Online Banking user  and are attempting to log in to the new platform for the first time, you will need to hit "Register" in the login box instead. Please have your member number ready and your PIN (last 4 digits of your SSN).

   You can also log in for the first time from the new mobile app but a phone number must be on file for you to receive your authentication code; otherwise, you will be prompted to contact the credit union.
   

2. Review and agree to Terms and Conditions when prompted.
3. Create your new custom username and password.
4. Enter your contact information, which can be your phone number or email, so your access can be verified through a one-time verification passcode.
5. After entering your one-time verification passcode you will have the option to register your computer and browser, allowing you to skip the one-time verification on that device in the future.

Growing your bank balance sometimes can be as simple as relaxing and letting your money work for you — as long as you have the right tools in place. If you want to build a cash cushion without breaking a sweat, try these three methods.

1. Put your money in a high-yield savings account

The interest rate offered on savings accounts at most brick-and-mortar banks is less than one-tenth of a percent. If you put your funds in a high-yield account, you could earn over 20 times more.

Having $5,000 in an account that earns the average interest rate, for example, makes a few bucks after a year. But if you deposit that same amount into an account that has a 2% annual yield, you would earn nearly $100 more, not counting any extra deposits. Online banks and some credit unions tend to offer accounts with higher rates, and the basic checking and savings accounts generally don’t have monthly fees.

Get started:  If you have your existing bank account and routing number handy, along with your Social Security number, you can usually open a savings account at a financial institution’s website in about time it takes to check your news feed. Click the link to apply, then enter your information. In many cases, you can fund the account by electronically transferring money.

It takes no more effort to deposit money into high-rate savings than into a low-yield account, and the difference can be worth hundreds of dollars over time. Use a  compound interest calculator  to figure out how much you could save with a higher rate.

2. Use ‘set it and forget it’ transfers

Once you have a savings account that earns a good rate, set up an automatic payment plan to make regular deposits. Say you get paid by direct deposit to your checking account every two weeks. If you set up a $40 transfer to savings each pay period, you’ll stash away over $1,000 by this time next year. That’s not counting the additional interest your savings will earn. Bonus: Since the transfer whisks money from checking to savings, the cash won’t be as easily accessible with your debit card, so you may not be as tempted to spend it.

Get started:  Log into your checking or savings account online and select the option for bank transfers. You’ll typically choose the amount of the transaction, frequency and length of time. Although the sending and receiving accounts don’t have to be at the same bank, make sure your financial institutions don’t charge transfer fees. Click the confirmation link and you’re done.

3. Earn rewards from checking accounts

A savings account isn’t the only way to boost your balance. Some checking accounts, particularly those at online banks and credit unions, offer rewards — including cash back on purchases, good interest rates and new customer sign-up bonuses — that you can use to score extra money.

Get started:  Search online for  rewards checking accounts , then check their terms. Some offer cash back for purchases up to a certain amount monthly. Others might require that you make a certain number of debit card transactions — usually around 15 — to get a high rate. This can be OK if the purchases are part of your regular spending budget, but avoid making extra purchases. The sweet spot is an account that matches your current spending activity. So you’re doing nothing new — and getting rewarded for it.

Let your money work hard so you don’t have to. With a little set-up work and the right accounts, you can sit back and watch your money grow.

The article 3 Simple Ways to Boost Your Savings was published by the Associated Press and originally appeared on NerdWallet.

Many people are desperate to shed their timeshares. That provides bargains for timeshare enthusiasts like Angie and Mike McCaffery of Los Angeles.

The retired couple have paid as little as 50 cents for “used” timeshares. They’ve parlayed their timeshare weeks at four mainland U.S. resorts into affordable stays in England, Spain, Costa Rica, Hawaii, Mexico and the Caribbean.

“You hear all the nightmare stories, but if you know how to work it and you can plan ahead, it’s the best thing ever,” says Angie McCaffery, 71.

Timeshares are a way to use vacation property, typically resort condominiums with bedrooms and kitchens, for a week each year. In addition to the upfront cost of buying, owners must pay annual maintenance fees, which currently average about $900 but can total $3,000 or more for higher-end properties.

Timeshares may be a specific week each year, or “floating weeks” that can change from year to year, or “points” that can converted into reservations for days or weeks at timeshare resorts. Most timeshares offer exchange opportunities that allow owners to stay at other resorts if they plan well in advance.

The details can vary quite a bit, but people who are satisfied with their timeshares tend to have several things in common, says Brian Rogers, owner of  Timeshare Users Group , one of the oldest forums for timeshare owners.

Happy timeshare owners:

Understand that timeshares aren’t a financial investment

The average cost of timeshares sold by resort developers has risen over time and now tops $20,000, according to the American Resort Development Association, an industry trade group. Unethical salespeople use that fact to imply, or even assert, that the timeshare you buy will increase in value. That’s not true. On the resale market, the typical timeshare sells for 10% or less of what the original owner paid, Rogers says. TUG, eBay and other sites are full of “for sale” ads from owners willing to sell for just a penny.

Don’t buy a timeshare on vacation

Timeshare salespeople are often much better at selling than you are at resisting — especially when you’re relaxed and having a great time. That’s no state of mind to be in when you need to scan the details of a contract, assess potential exchange options and uncover things that can go wrong, such as rising annual maintenance fees or problems trading your share.

If you’re interested in a property, Rogers recommends renting from an existing timeshare owner to see how much you like it. But don’t sign up on the spot.

“I tell my friends, ‘Don’t ever go to a presentation.’ They’ve gotten very hard-sell,” Angie McCaffery says.

Don’t pay retail

The McCafferys bought their first timeshare in 1994 from a developer, paying $15,000 for a two-bedroom condo in Palm Desert, California. Later they learned they could save thousands buying directly from other timeshare owners who no longer wanted to pay their annual maintenance fees. (People who simply stop paying their fees risk having the debts turned over to collection agencies, which can sue them and trash their credit.)

In 2006, the McCafferys bought a one-bedroom timeshare in Park City, Utah, for $100 on eBay. Four years later, they paid $1 total for two timeshares, a one-bedroom unit in New Orleans and a two-bedroom unit in Ruidoso, New Mexico.

Developers often offer incentives for buying retail, such as frequent traveler points or VIP treatment, but “those are almost never worth paying $19,000 or $20,000 extra for,” Rogers says. “For that money, I’ll get my own limo from the airport.”

Buy in attractive locations

Don’t buy a timeshare in an undesirable location on the promise you can trade it to stay in more desirable ones. If you don’t want to vacation there, chances are potential exchange partners won’t, either.

The McCafferys prefer buying fixed-week timeshares. That way, if they don’t want to trade for another property, they’re guaranteed access to their properties each year without having to make advance reservations. Floating-week and point systems typically require more planning, since desirable weeks are snapped up early or require more points the longer people delay.

Enjoy research and planning

Learning the ins and outs of each timeshare system takes effort. While point systems are often touted as a way for people to vacation at the last minute, the reality is that the best deals have to be secured nine to 12 months in advance, Rogers says.

That’s actually a plus for people like Angie McCaffery, who typically starts researching the couple’s vacation options a year or more ahead.

“Half the fun of it is planning it,” she says.

This article was written by NerdWallet and was originally published by The Associated Press. 

In observance of Independence Day, we will be closed on Wednesday, July 4th. We apologize for any inconvenice caused. Online banking will still be available 24/7.

You’re done with college, and now you’re ready to be on your own. But for newly minted grads who didn’t major in money management, here’s one last assignment: Summer reading to help with your financial future.

That degree you earned might open the door to a higher salary — and carry a student loan burden — so it’s important to know how to balance it all as you set the stage for the rest of your life.

Map out a budget

As a college student, you probably got accustomed to living frugally. Stay the course.

A good way to live within your means is to figure out how much discretionary spending — that’s what’s left over after necessary expenses like rent, food and gas — you can afford each month. This will be easier to compute after you’ve been working for a few months and have a better grasp of what your take-home pay is after taxes and other deductions.

In building your budget, start with the essentials as well as ongoing bills you have to pay, such as utilities, student loans or a car loan. What’s left over is yours to allocate for spending and saving. It’s probably wise to limit eating out and splurging on clothes and entertainment.

Ways to save

Chances are you didn’t live in your own house or apartment when you were in college. If you are on good terms with your parents and don’t think returning to live with them would be too regressive, that could be a huge bonus. You could use the saved rent money to pay down student loans, establish an emergency fund and even start building a retirement account.

If moving back home isn’t an option, look for roommates to reduce your overhead.

Pay down what you owe, build up credit

The average student loan burden hovers around $30,000, so the last thing you want to do is add to it by running up new credit card debt. Still, it’s to your advantage to have a credit card to build good credit. A good way to do that is to make regular small purchases and pay them off right away to establish your creditworthiness.

As for student loan debt, before graduating you selected a  repayment plan  for any federal loans. The standard plan calls for equal monthly payments for 10 years. If you have a steady income and good credit, or can use a co-signer, you can  refinance the loans  to get a lower interest rate and possibly pay off your loans faster. Before refinancing, make sure you won’t lose any important federal loan benefits, such as loan forgiveness.

Build a portfolio and retirement savings

Historically, buying stocks or mutual funds when you’re young is the best way to build a portfolio, because you have decades for your money to grow. In other words, you have time to ride out market declines and earn good long-term returns.

Similarly, starting a retirement savings plan early pays dividends. It’s particularly helpful if your employer offers to match your contributions, through a 401(k) or other plan. If your job does this, start contributing right away and make the most of the match.

One last piece of advice as the paychecks start rolling in: Don’t spend more than you earn. Congratulations on your graduation, and may the wind always be at your back!

If you’re paying too much in interest for your car or truck loan, refinancing could be a great way to save some serious dough. Interest rates for vehicle loans may have dropped since you financed your auto. Or maybe you’ve improved your credit score, which could qualify you for a lower rate. Either way, it could be worth hundreds of dollars in savings to get a new auto loan to replace your current one.

The process is fairly simple. You’ll need to contact your current lender to get your loan’s payoff information. Then, you can apply for financing from a new lender that offers a lower interest rate. You’ll typically be asked to provide recent account statements, W-2s or other proof of income, and give permission for the lender to run a credit check. You can usually receive a response within a day. Once approved, the funds can be sent to pay off your existing loan, and the title would be transferred to the new lender.

Money-saving scenario

Suppose last year you financed $25,000 at 8% interest for a five-year car loan. Your monthly principal and interest payment would be about $507. But say today you could refinance the balance (just over $20,000) for the remaining four years at a lower rate of 3%. Your payment would drop to $451. That’s a savings of $56 a month, and $2,688, with the same payoff date.

You could also refinance for a longer loan term. This could reduce your monthly payment and give you more room in your personal budget. If your income drops or you have unexpected expenses, refinancing to a lower monthly payment could be one way to make sure you can pay your bills.

Choose carefully

For all the potential positives of an auto refinancing, there could be some drawbacks. If the new loan pushes your payoff date further into the future, you could end up paying more money overall in interest. Also, any new loan may incur title and registration fees, which vary by state. If you do refinance, don’t forget to tell your insurer.

There could also be costs to get out of your old loan. If you have a prepayment penalty, or the lender requires you to pay all remaining interest upfront, it would reduce your savings from refinancing.

Some car loans are “frontloaded” so your monthly bill mostly pays for interest during the first part of the term. If you’ve had your existing loan for a few years, your remaining payments would mostly go toward principal. That means a refi, even at a lower rate, may not save you enough to justify the cost.

Be sure to add up all the fees for paying off your old loan. Then, compare that amount to how much you’d save with a refinance, and see whether the benefits outweigh the costs.

An auto loan refinance can be a smart move in the right situations. By receiving a lower rate, you could cut your interest costs, reduce your monthly payment and save big.

Parsons FCU Has Been Recognized as One of the Top Financial Institutions in the Country for Network and Data Security by Digital Defense, Inc. This is the first time Parsons Federal Credit Union (FCU) has received this honor, and it is the result of extensive efforts in the last 2 years by the credit union to enhance data security. Ray Crouse, president and CEO of Parsons FCU, credits this success to Jeffrey Hom, chief information officer, for his commitment to enhancing data security and making it a top priority for his team. “Data security is a critical focus for Parsons Corporation and its employees. Likewise, as the financial institution serving Parsons’ employees and their families, the safety of member data is extremely important to us,” says Crouse. Digital Defense, Inc., presented this recognition based on its monthly system-penetration test analysis, which measures the vulnerability of all networked devices. 

 When shopping for a new car, many people overlook one important step: getting preapproved for an auto loan. It’s a simple process that can make car-buying go more smoothly and save you money.

Preapproval is a quick assessment of your ability to pay off a loan based on your credit history and current financial state. This is how it works: You visit a bank or credit union, in person or online, and provide proof of your identity — such as your driver’s license or Social Security number — your household income, and perhaps your housing costs. The lender will likely run a credit check. Then you’ll find out how much it would be willing to lend you and at what rate — sometimes on the spot.

Here’s why you should get preapproved.

You can get a better interest rate

If you haven’t done your homework, your dealership might try to talk you into a loan at a not-so-great rate. But getting preapproved at a bank or credit union — or several of them — means you can assess the dealership’s offer, and you don’t have to accept it. Bringing your interest rate down just one or two percentage points can save you hundreds, maybe thousands, of dollars over the life of your loan.

You can set a true budget

Once you’re preapproved for a loan, you can plan your purchase. Use an  auto loan calculator  to factor in a down payment, the value of your trade-in — which you can find online — and your desired monthly payment. Add about 10% for sales tax and other fees. And don’t forget about insurance and the other costs that come with owning a car.

Adjust your dreams — and budget — accordingly. Then go shopping.

You can better negotiate with the dealer

Letting your dealer know that you’re preapproved shows that you’re a ready-to-buy customer who can walk away at any time. That curtails a lot of the early verbal dancing. Just announce you have your preapproval and will only talk price. Try something like this: “I’m looking for this model, in a deep blue with black leather interior and rear parking sensors. I just stopped in quickly to find out the price I would pay after you take my car as a trade-in.” If the salesman doesn’t listen, say, “I just want to hear that one number.” It’s not rude to be assertive in this situation.

And as you’re signing all the papers in the finance office, if a salesperson tries tempting you with an extended warranty or other last-minute add-ons, you can use your preapproval to stick to your price.

When you’re preapproved for a loan, you have the competitive edge in car-buying. You can say no until they say yes.

Another new year, another chance for well-intentioned resolutions to start with a bang and fizzle out. But unlike failing to drop those last five pounds, falling short on financial goals you’re banking on in 2018 could cost you for years to come.

Generally, attainable goals follow the SMART approach: They’re specific, measurable, achievable, realistic and time-based. But that doesn’t mean attainable goals are all easy. A recent study indicates certain money goals that fit these criteria can remain challenging for some who are striving toward them.

Here are some 2017 financial resolutions that proved hardest to hit, with reported achievement rates, according to the  2018 New Year Money Report.

• Americans who intended to stick to a monthly budget:  52% achieved
• Those who planned to save for an emergency fund:  42% achieved
• Those who planned to save for a home down payment:  28% achieved

“Setting big goals is admirable, but if they are too big a leap from your current financial status, you could be setting yourself up for disappointment,” says Kimberly Palmer, personal finance expert for NerdWallet. “You can make them more achievable by breaking bigger goals into smaller ones.”

Setting yourself up for success

Achieving any one of these three money goals can bring you closer to personal financial security. But as with any resolution, the devil is in the details. Merely saying you’re going to do something isn’t enough; you need to create a road map and form lasting habits that will propel you toward a desired outcome.

“If you want to save for a down payment next year but you don’t currently have a savings account, then your goal could be to open a savings account and put 3% of your take-home pay into it each month,” Palmer says. Similarly, she adds, if your goal is stick to a budget, outline the smaller steps it will take to get you to do that.

Stick to a monthly budget

Following a budget should be on everyone’s to-do list, particularly if you have bigger financial goals in sight.  Building your budget  is the easy part, but sticking with it is about creating and maintaining good habits.

Start:  Create your budget with personal priorities and long-term goals in mind. Aiming to set aside 50% of your income for needs, 30% for wants and 20% for debt and savings is a good place to start.

Create good habits:  Commit to tracking your spending daily, and create a standing weekly check-in with yourself to ensure you’re on target.

Make it last:  Every month, sit down and review your progress. Make adjustments as needed. As an added incentive, budget a small reward every few months for sticking to your plan — an extra meal out or movie tickets, for example.

Save for an emergency fund

Ideally, you’ll one day have three to six months of living expenses set aside in case of an emergency, but if you’re starting with nothing, every little bit counts.

Start:  If you have nothing set aside, start small; target $500 as your first mini-goal. Once you’re there, up it to $1,000, and continue in this manner until you have a month’s living expenses set aside.

Create good habits:  Automate your emergency fund by having a portion of your paycheck direct deposited into a separate savings account. Remember, you want this money easily accessible in case of emergency, so a traditional or online high-interest savings account is a wise choice.

Make it last:  Your  emergency fund goal  should be a moving target, and six months of living expenses is ambitious. Once you’ve got a single month’s worth, focus on paying off any high-interest debt or getting closer to your retirement goals before focusing back on saving the next month’s worth of expenses.

Save for a down payment

A home down payment can take years to amass, so set realistic expectations and use your long-term vision on this goal.

Start:  Determine a realistic goal down payment amount, considering both your anticipated budget and the type of home loan you’ll use. A  home affordability calculator  can help you do the math.

Create good habits:  As with any savings goal, automating this one will make it easier to stick with it, so have a portion of your paycheck set aside automatically and be flexible enough to adjust this amount as your income or expenses change.

Make it last:  Knowing your total savings goal and how much you plan to set aside each month, figure out how many months it should take. Mark off each successful month of saving on a calendar. This small action can provide a sense of accomplishment and give you a nudge to keep going.

Getting a deal during the holidays is a great American shopping tradition. So when a sales clerk cheerfully asks, “Would you like to save 20% on your purchases today by opening a card with us?” it fits right in.

But the reality sounds a lot less cheery: “Would you be interested in a low-limit card that could damage your credit standing?”

Credit expert John Ulzheimer warns that opening a new store card could hurt your credit score by:

• Having an outsize impact on your credit usage, which is a big factor in credit scores
• Causing an inquiry on your credit
• Reducing the average age of your credit accounts

Lower limit, higher credit usage

The credit limits on retail cards that you use only at one store or chain are typically about 10% of those on comparable general-use credit cards, Ulzheimer says.

Let’s say you open a store card to get 20% off a $250 purchase. After the discount, your balance is $200. A few days later, you spend $150 more. You’re still well below the card’s $1,000 limit — but your balance is 35% of your credit limit.

How much of your credit limit you use  has a major influence on your credit scores. The only thing that matters more is paying on time. Credit experts advise staying below 30% of the limit on any card. Consumers with the very best scores typically use  less than 10% .

To keep your credit utilization low, credit card expert and author Beverly Harzog suggests paying your bill before the issuer reports the balance to the credit bureaus. Call the customer service number on the card to find out when that is. Or get in the habit of making online payments as soon as you purchase something. That way, your charges never stack up.

Inquiries and lower account age

A retail card doesn’t just affect your scores by spiking your credit usage.

“When you apply for a new card, the card issuer is going to want to pull one of your credit reports,” Ulzheimer says. That helps the issuer assess whether to approve your application, and it can cause a small, temporary dip in your score. “That’s problematic — I wouldn’t call it catastrophic,” he says.

The bigger problem comes if you’re approved. That new account causes the average age of your credit cards to decrease. Credit age is a minor factor in scores, but every point counts.

The worst decision of all might be to apply for card after card as you shop to snare multiple discounts. Each application can  ding your score  and each new approval drops your overall age of accounts.

Limited usability, limited services

On top of potentially hurting your credit scores, retail cards have usability issues. They’re good only at one store or retail chain, usually have high interest rates and typically have less robust security alerts than traditional cards.

You might be better off using an existing credit card, especially if you have a rewards card that offers cash back on every purchase, not just the initial one.

“In the grand scheme of things, 20% off your purchases, one day ever, isn’t that big of a deal. Even if you spent $1,000 — which I doubt most people will do — that’s a $200 discount,” Ulzheimer says. “Really, you didn’t save $200, you spent $800.” And if you carry a balance instead of paying in full, interest will eat into that discount.

Avoid snap decisions

If you shop at a particular place often enough, it might be worth opening a store card to access ongoing discounts, presales and insider benefits. But resist deciding that in the checkout line.

“Unless you’ve already researched this card and feel comfortable with the terms, just take a pass on it,” Harzog says. “The APRs are usually quite high, and it’s super easy to slide into debt with one of these cards.”

And if you already have a store card? Don’t close it — that also would hurt your average age of accounts. Better to use it lightly and pay on time. Both actions have a positive effect on your credit scores. And make the most of any exclusive deals the card offers.

Forty percent of U.S. consumers fall victim to online  phishing attack , despite 91% being aware of the existence of spoofed websites or emails of trusted brands, according to a new report.

Seattle-based domain name and DNS-based cyber threat intelligence firm DomainTools, revealed in its 2017 Cyber Monday Phishing Survey, 92% of all consumers shop online and about half are planning to shop online on Cyber Monday, exposing an opportunity for malicious hackers to strike.

"Cyber Monday has grown in popularity year over year, and unfortunately, so has phishing and online counterfeiting,” Tim Chen, CEO of DomainTools said. He added, a range of techniques trick shoppers into visiting a fake website or clicking on a malicious link. This can result in a shopper unintentionally sharing financial and personal information with these criminals or even downloading ransomware. "As shoppers search for Cyber Monday deals, it's important that they remember to look closely at links and email addresses before clicking. If something seems too good to be true, it may instead be very fake and very bad."

The Anti-Phishing Working Group reported the detection of nearly 119,000 unique phishing sites during November 2016, with over 300 individual brands targeted. The brands with the most spoofable websites this November likely correspond with the most popular online retailers, which include Amazon (82%), Walmart (36%), and Target (20%).

DomainTools suggested consumer education remains the number one way to prevent compromises via phishing. Online shoppers should heed these tactics to safely navigate links to Cyber Monday sales shared via email and social media:

1. Be paranoid.  Assume links are dangerous until decided otherwise.
2. Navigate directly to a company's website  instead of clicking on links in emails or social media.
3. Closely examine URLs and email senders for typos.  Examples could include: extra added letters in the domain, such as Yahooo[.]com, 'rn' disguised as an 'm', such as modem[.]com versus modern[.]com, 1's disguised as l's, such as wa1mart[.]com, and added affixes, such as starbucks[.]com-latte[.]us

Savings and checking account fees — sometimes tucked away in the depths of a website’s fine print — often crop up on our bank statements when we least expect them. But leave them unchecked and they can cost you several hundred dollars a year in extreme cases.

Knowing how and when banks or credit unions can charge fees is the first step to avoiding them. Here are five of the most common bank fees that can drain your funds:

1. Minimum balance or monthly fees

Many financial institutions charge for simply maintaining an open checking or savings account. The good news is that most accounts provide a way to avoid the charge if you meet specific criteria, such as linking direct deposits or maintaining a balance over a certain dollar amount.

But even that can be a challenge for many people. Kathryn Hauer, a financial planner in South Carolina, says monthly maintenance fees are among the most frequent fees her clients encounter. Switching to a different account, bank or credit union with fewer fees can save money in the long run.

2. Out-of-network ATM fees

Your bank could have up to tens of thousands of ATMs in its network. But if you have to use an ATM that isn’t, you’ll be hit with an out-of-network ATM fee. These fees typically hover in the $3 range in the U.S., but they can climb up to $5 for using ATMs abroad.

Most banks have mobile apps that let you locate in-network ATMs nearby. Keep these handy when you’re out and about. Or consider opening an account at a financial institution that reimburses out-of-network ATM fees.  Our Kasasa checking does just that.

3. Overdraft fees

Overdraft fees are charged by a bank when a customer has agreed, sometimes without fully knowing the costs, to get overdraft protection. That’s when a bank lets your debit card transaction go through, even if you don’t have enough money in your account to cover it. But you’ll be charged for this protection, a median of $35 at large banks, according to a 2016 report by the Pew Charitable Trusts. Americans overdraw their accounts an average of 2.07 times a year, according to a  NerdWallet analysis  of data from the Consumer Financial Protection Bureau.

Opting out of overdraft protection — which means your debit card transaction will be declined if you don’t have enough money in your account — will save you money. Signing up with the financial institution for low-balance alerts will let you know when the money in your checking account falls low.

If you get hit with an overdraft fee, there still are some measures you can take. Hauer recommends reaching out to your bank to ask if you can get overdraft fees canceled or reduced as soon as you see them. That’s more likely to happen if you don’t overdraw often, Hauer says.

4. Foreign transaction fees

Debit cards are convenient overseas. They’re your key to withdrawing foreign currency from ATMs and likely are accepted by thousands of merchants worldwide. But they can come with foreign transaction fees of 1% to 3% every time you use the card at an ATM or store. Add that to the out-of-network ATM fee you’re probably paying and the charges can quickly pile up.

5. Paper statement fees

If you get paper statements for your account, you could be paying for them. About 25% of banks that offer such statements charge a fee for them, according to analytics firm Novantas. Though the fees are no more than $3 typically, you can avoid that and save the money for a rainy day.

A simple fix is to opt for electronic statements, which you can download for free.

But sometimes, paying a smaller fee could help you avoid a larger one, depending on your habits and personal preferences.

Anna Sergunina, a financial planner in California, recalls a client who chose to receive paper statements and pay a fee. The client was racking up overdraft fees because she wasn’t keeping an eye on her account balance, and electronic statements emailed to her “were just going into a black box,” Sergunina says. “When [my client] gets a statement that comes in the mail, she’s compelled to open it because it’s there.”

The best way to keep fees at bay? Sergunina and Hauer both agree on this point: Check your account statement regularly.

“Look at your expenses. Pull your bank statement. See what are the charges that are recurring,” Sergunina says. “If you got hit once, twice, like an ATM fee or something, that’s probably OK. But if it’s something that happens constantly, then that’s when it becomes a waste of money.”

The article “Bank Fees Costing You Hundreds? Put a Stop to It” originally appeared on NerdWallet.

Due to a special event taking place in the area, members who visit our Pasadena branch on Friday, October 6th after 3PM will be charged $15 to park in our lot.  The credit union will reimburse members for that amount before they leave. 

We will be performing system updates on Saturday, September 23, 2017 between 8:00 PM PT – 2:00 AM PT.  You will not be able to use remote deposit capture and electronic deposit temporarily.  We appreciate your patience.  For questions, please contact Member Services, thank you.

The average American saves less than 5% of his or her disposable income. Many financial advisors say that isn’t enough to ensure a comfortable retirement.

The personal saving rate, calculated by the federal Bureau of Economic Analysis, has hovered around 5% for the past few years. By the end of June, the rate had dipped to 3.8%, the bureau reported.

Carrie Houchins-Witt, a certified financial planner in Coralville, Iowa, encourages her clients to save 10% to 15% of their disposable income, putting the money in different accounts set aside for emergencies, retirement and other needs.

“I have seen too many people in their golden years being forced to work because Social Security income does not cover their basic expenses,” Houchins-Witt says. “And while I think it’s a great idea for seniors to be active and possibly working to keep busy, I don’t want them to have to rely on that income.”

Decades ago, Americans’ personal saving rate was closer to what Houchins-Witt suggests. From 1950 to 2000, it averaged about 9.8%. It peaked in May 1975, hitting 17% before beginning to slide. At its lowest, in July 2005, it was 1.9%.

How to calculate your personal saving rate

Why your personal saving rate matters

If your personal saving rate is lower than what financial advisors recommend, that’s a sign you may not be doing as much as you should to prepare for retirement or unexpected expenses.

For many families, accumulating some wealth is critical for goals such as making a down payment on a home, paying for the kids’ college tuition and maintaining a decent lifestyle in retirement.

Tracking your personal saving rate and taking some basic steps to boost how much you’re setting aside can be important building blocks for a more comfortable future.

OK, what’s next?

Budgeting for College Students: Where to Start

College marks a significant transition period for many young adults — it’s a time of newfound freedom and the financial responsibilities that come with it.

Whether your funds come from family, student loans, scholarships or your own wallet, you’ll need to budget for expenses like textbooks, housing and, yes, a social life. Knowing who’s footing the bill, what costs to expect and which ones you can live without — ideally before school starts — can reduce stress and help you form healthy financial habits for the future.

Have the money talk

Before you build a budget , go over some important details with the people — parents, guardians or a partner — who will be involved in financing your education. Discussing your situation together will ensure everyone is in the loop and understands expectations.

“One of the biggest obstacles we have [with] teaching young people financial literacy and financial skills is not making money and expenses a taboo subject,” says Catie Hogan, founder of Hogan Financial Planning LLC. “Open lines of communication are far and away the most important tool, just so everyone’s on the same page as far as what things are going to cost and how everybody can keep some money in their pocket.”

Here are some topics to start with:

• Who is paying for college and how.  Have a conversation before the start of each school year to decide if your family will pay for costs out-of-pocket or if you’ll need to get a job, rely on financial aid, use funds from a 529 plan or combine these options.
• What expenses to expect.  In addition to tuition, you’ll have to budget for other college costs, like transportation and school supplies. Make a list of likely expenses, estimate the cost and agree who pays for what. (See more on expenses below.)
• FAFSA and taxes.  Whether a parent or guardian claims you as a dependent or you file taxes on your own determines whose information is required to fill out the Free Application for Federal Student Aid, or FAFSA, and who can claim tax credits and deductions. Discuss your financial status before each school year and address any changes, like a raise or job loss.
• Credit cards and bank accounts.  If you’re considering opening a credit card account for the first time, are younger than 21 and don’t work full time, you’ll need a co-signer: a parent or other adult. You’ll want to talk about ground rules, like only using a credit card for emergencies and defining what constitutes an emergency. Approach new financial products with caution and be careful not to take on debt. If you plan to directly deposit funds from a job or allowance, look for a checking account that offers low (or no) fees.

Anticipate your expenses

To determine what you’ll spend each term, keep these college-related expenses on your radar:

• Textbooks and school supplies.  Course materials could eat up a large chunk of your budget. The average estimated cost of books and supplies for in-state students living on campus at public four-year institutions in 2016-2017 was $1,250, according to the College Board. Also plan for purchases like notebooks, a laptop, a printer and a backpack, and read the do’s and don’ts of back-to-school shopping for money-saving tips.
• Room and board.  When it comes to food and living arrangements, weigh your options. Compare the cost of living on campus and getting a meal plan versus renting an apartment and shopping for groceries.
• Transportation . Will you take a bus, bike or walk to and from campus or work? If you absolutely need a car, be prepared to cover gas, maintenance and insurance.
• Clothing.  Budget for seasonal clothing and job-fair outfits.
• Discretionary spending.  You deserve a break from studying. Leave room in your budget for fun stuff like entertainment, travel and social activities.

Track your spending and cut back where you can

The basic principles of budgeting, like living below your means, still apply regardless of the source of your funds. Whether you’re working or receiving help from your parents or financial aid — or all of the above —  figure out how much money flows in and out.

You don’t have to go through a grueling process, like filling out a spreadsheet every day; you’ll have enough homework. Just set aside some time at least once a month to review your money situation. Budgeting apps and online banking can help make the process more manageable.

“Just knowing that you can log into your online banking and take inventory of what you have and the income coming in, I think that’s more than enough,” Hogan says.

Once you start to monitor spending, you can decide where to save money. Identify your needs and wants and reduce spending on things that aren’t essential.

Start with the common culprits: food and fun. “Looking at what is the least expensive meal plan you can get without going hungry is a big money-saving tip,” Hogan says. “And a lot of campus activities and groups and all that [are] really great, but they can weigh really heavy on your budget, so don’t overcommit.”

Keep your future self in mind

If you’ve managed to stay afloat as a student, you’re in good shape. Continue on a financially healthy path by thinking about life after graduation. If you’re working and able to build a cushion, set financial goals, like creating an emergency fund or saving for a trip — and don’t forget about any student loans you might have to pay off after graduation.

“You obviously don’t want to burden yourself so much that you have anxiety about it while you’re in college, but I think having a healthy grasp of reality … is helpful in terms of knowing what kind of lifestyle you can really afford to live in college,”  says Kyle Moore, a certified financial planner in St. Paul, Minnesota.

If you’re looking to earn the highest possible yield on your investments without sacrificing the safety  of government backed insurance,  certificates of deposit  are one way to go. By using a laddering approach with your CD purchases, you can take things up a notch, gaining even more from this already solid investment.

What is a CD ladder?

CDs typically offer higher interest rates than regular savings accounts in return for locking in your money for a set time period. The longer that maturity period is, the higher your earnings. However, if you put all your money in one long-term CD and interest rates rise before its maturity date arrives, you’ll miss out on the chance to take advantage of those higher rates. Also, if an emergency comes up, you won’t be able to access that cash without withdrawing the entire amount — and getting hit with penalties on your earnings.

Laddering is the perfect way to get around this dilemma. Rather than buying one large CD, this strategy involves purchasing multiple CDs with staggered maturity dates. That way, a portion of your cash is freed up each year for you to reinvest in another CD at current rates or use for other purposes.

A traditional CD laddering model

A classic CD ladder has five “rungs.” Each of these rungs represents a CD of equal value, and their terms are staggered so that one CD matures every year. For five years, for example, you could invest $5,000 this way:

• $1,000 in a 12-month CD.
• $1,000 in a 24-month CD.
• $1,000 in a 36-month CD.
• $1,000 in a 48-month CD.
• $1,000 in a 60-month CD.

When the 12-month CD matures, you can then use that cash to purchase a new 60-month CD that will mature in year six, and continue this way so you get both the high returns that the longest-term CDs offer and the flexibility of having one-fifth of your investment freed up each year.

Other laddering approaches

Laddering doesn’t have to be one size fits all. Those who can’t tie up money for a whole year might do well with a four-rung ladder consisting of a three-month, six-month, nine-month and 12-month CD so that cash is freed up every three months. Or if you may need cash more frequently, build your ladder so that one CD matures each month.

Another thing to consider is changing economic projections. When times are uncertain, a CD ladder with equal rungs is the safest overall plan. However, if interest rates are clearly rising, you might want to invest a larger portion of your ladder fund in short-term CDs to take advantage of better offers as they become available. When interest rates are falling, it pays to invest as much as possible in long-term CDs, since you may not have an opportunity to lock in such good rates again for a long time.

CD ladder benefits

Whichever approach you choose, CD laddering offers a number of advantages over purchasing a single CD:

• Higher income plus liquidity : Once your first CD matures, you’ll enjoy long-term CD rates without giving up frequent access to your cash.
• Flexibility : You’ll be able to adjust your ladder to changing economic conditions and your individual financial situation.
• Peace of mind : Whatever happens, you’ve got it covered. When rates drop, you’ve already locked in your return. And when rates rise, you’ll have available cash to invest regularly.

Most financial experts agree that interest rates should be on the rise fairly soon, so it might be wise to build a shorter-term CD ladder to keep your options open

Federal Reserve rate hikes, such as Wednesday’s 0.25 percentage point increase, can result in higher annual percentage yields on certificates of deposit, or CDs. Some online-only banks have already increased their rates after the Fed’s recent hikes.

If you own a CD — often called a share certificate by credit unions — here’s a look at what this year’s rate increases mean for your savings.

Seek out higher rates

CDs are a great tool for growing savings over a set time period. The longer a CD’s term, the higher the rate; most financial institutions offer terms of up to five years. But during the last few years, CDs at brick-and-mortar banks with five-year terms have had average APYs well below 1%.

Fed rate hikes don’t cause bank rates to skyrocket overnight, but they can encourage financial institutions to gradually increase their APYs. Why? Banks want to remain competitive and attract potential customers. If a few of your bank’s competitors start increasing rates, yours will likely feel pressure to do the same. This trend has started to play out among online banks. After the Fed’s recent rate hikes, some of these institutions increased their CD rates.

You’ll pay an early withdrawal fee if you close a current CD before the end of its term, also known as its maturity date, to move it to another institution with better rates. The penalties you’ll incur might nullify any gains. You could, however, open a new CD at another financial institution.

Ask for your bump up if rates go up

Many financial institutions offer bump-up CDs, which let you request a rate increase if your bank’s rates go up. In most cases, you can exercise this option only once during the term of your certificate. These types of CDs typically have lower interest rates than fixed-rate certificates, and many carry steeper minimum deposit requirements.

Another option: step-up certificates

If you want a savings product that functions much like a bump-up CD but with more predictable rate increases, consider a step-up CD. These have interest rates that automatically increase at specific intervals. With a 28-month step-up CD, for example, you might start with a low APY, but your rate will rise every seven months.

Again, initial interest rates on these products tend to be low, and some of these CDs and share certificates are “callable.” That means you might never see the rate boost because the issuer might redeem yours before it matures.

Watch CD rates

CDs can be a great way to set aside money for the future. And although the Fed rate hikes might not lead to dramatic changes, it’s still a good idea to monitor your bank or credit union’s response to the news and compare it with those of other banks and credit unions. For help on that front, check out NerdWallet’s best CD rates tool.

Setting a short-term  financial goal  is good, and achieving one is even better. But what should you do if you miss a goal you set for yourself?

Don’t get discouraged if your plan to buy a car, take a vacation or save money didn’t quite go as planned. Life happens. Here’s how to get back on track.

Embrace failure

Mindset is a huge part of  financial health .

First, find the bright side. Even if you didn’t save as much money as you had hoped, imagine if you hadn’t set that goal at all. You’d still be back where you started — with the same amount in the bank. So kudos on making progress and getting serious about your finances.

Then, look at the setback as a learning opportunity. Rather than simply extending a goal’s deadline when the original timeline doesn’t pan out — or worse, taking on debt to finance the rest — diagnose where your savings plan went awry.

“Once you’ve reached that goal, or more importantly not reached that goal, I really think it’s important to look back at the spending habits and trends over the time and compare it to the budget you set up,” says Robert P. Finley, a chartered financial analyst, certified financial planner and the principal of Virtue Asset Management in Illinois.

You can do this by asking yourself a series of questions, Finley says, including:

• Was my deadline realistic based on my  income ?
• Did I  spend more each month  than I wanted to?
• If so, which  budget  categories did I overshoot?

The answers will help you determine if your goal was feasible. You can’t avoid paying a fixed amount for some things, like your mortgage or rent, but other spending categories, like  eating out , have more wiggle room.

» MORE:  Short-term or long-term, budget and save for your goals

Make adjustments

Based on your self-audit, make some adjustments to your savings strategy. If you’ve already cut your budget as much as possible, it might be time to find a way to make more money — at least until you reach your goal.

If you have your heart set on a  vacation , for instance, you may be willing to take on a weekend job, babysit or work a  side hustle  to make ends meet, says Stephanie Genkin, CFP, the founder of My Financial Planner LLC in New York.

Or, you could make compromises to reach your goal sooner rather than later. “We’re looking at something that’s similar, yet maybe a little more affordable,” says Tony Madsen, CFP, the founder of NewLeaf Financial Guidance LLC in Minnesota. “Instead of going to Maui, is there a different trip that you can do altogether that becomes affordable for you?”

Whatever route you choose, avoid taking on debt to achieve a goal that’s not an absolute necessity. “The worst scenario is to charge it and then add 15% debt interest to your overall net worth,” says Finley.

Be your own cheerleader

As you pursue your goal for a second time, monitor your progress regularly. Madsen recommends setting check-ins at a cadence that’s comfortable for you. The goal is to analyze and adjust as you go.

Be sure to celebrate each milestone you hit along the way, too. Like most things in life, financial goals don’t have to be executed to perfection.

“If you ride a horse, you are sometimes going to fall off,” says Norman M. Boone, CFP, the founder and president of Mosaic Financial Partners Inc. in California, in an email. “The key to success is getting back on, resetting your goal and continuing to move forward.”

Courtney Jespersen is a staff writer at NerdWallet, a personal finance website. Email:  courtney@nerdwallet.com . Twitter:  @courtneynerd .

The article  If at First You Miss a Financial Goal, Try, Try Again  originally appeared on  NerdWallet .

On May 24, Tiffany Yee, Financial Advisor from Parsons FCU will be hosting a seminar that will cover debt management and financial planning the smart way.  RSVP to marketing@parsonsfcu.com.  Seating will be first come, first served.

Driving is a necessity for many, but it can also be expensive, with an average annual cost of almost  $8,700 . 

Here are three easy ways to reduce your car expenses.

1. Decrease auto insurance premiums

Loyalty isn’t always rewarded when it comes to car insurance. It makes sense to compare rates periodically and see whether you can find better ones than your current insurer charges. A  NerdWallet study  found that drivers could save an average of $859 a year by shopping around. To increase your savings even further:

• Maintain consistent coverage with no time gaps.
• Research and claim all discounts you qualify for.
• Consider raising deductibles to lower premiums.
• Bundle car insurance with other coverage.
• Reduce yearly mileage if possible and notify your insurance carrier.
• Improve your credit score.
• Drop collision or comprehensive coverage on older vehicles that are worth only a few thousand dollars.

2. Refinance your car loan

If you’re facing hefty auto loan payments, refinancing may bring some relief or shave some time off your obligation. Make sure your current loan has no prepayment penalties, and then explore your options by comparison shopping. Be sure to check out credit unions, since they often have lower rates than banks. Refinancing can sometimes save as much as thousands of dollars if:

• Interest rates have come down since you took out your loan.
• You didn’t get the best available rates when you financed originally.
• Your credit score has improved.

To find out how much you could save by refinancing at a lower interest rate, run the numbers through a  car loan calculator .

3. Make your car earn its keep

What’s your car doing while you’re at home, at work or sleeping? Chances are it’s just sitting around and not serving you in any way. The recent emergence of car sharing platforms such as Getaround and Turo can change that. They allow you to offset ownership costs by renting out your car when you’re not using it. Both platforms give the vehicle owner the majority of the rental fee, which varies according to your car’s model and age. If you’re worried about the risk, consider that you’ll be covered by a minimum of $1 million in insurance during rental times.

Car sharing is available in a number of cities, but to participate your car must be a 2005 model or newer, and some mileage restrictions apply: Getaround requires cars to have less than 125,000 miles and Turo rentals must have less than 100,000 miles. Depending on the type of car you drive and how much downtime you have to rent it out, you could make hundreds to thousands of dollars each year.

Owning a car is far from free, but you don’t have to accept high costs without question. Injecting a little research and strategy into the mix can bring down car ownership costs considerably, leaving you with more cash in your wallet to enjoy your journey.

© Copyright 2016  NerdWallet , Inc. All Rights Reserved

College is in your rearview mirror, and you’re about to enter the working world. Although snagging a job certainly calls for a celebration or two, it is also time to start tackling the various financial responsibilities that await you, like saving for retirement and improving your credit score.

Here’s an overview of where to get started, including several best practices to help you along the way.

Keep credit card debt to a minimum

In 2014, households with unpaid credit card balances owed an average of about $15,000 on those cards, which can damage credit scores and make it difficult to qualify for low interest rates on auto loans and mortgages.

Once those first paychecks arrive, it may be tempting to max out your plastic for some new shoes or that must-have gaming console. Do everything in your power to resist that initial urge. While it’s OK to splurge from time to time, it’s important to keep debt as low as possible, especially if your plastic carries a high interest rate.

Contribute to a retirement account

Stashing away cash for retirement starting at an early age is one of the best money moves you can make. Your savings will have decades to multiply thanks to the wonders of compound returns, which lets you earn money on what your money earns.

If your employer offers a 401(k) retirement plan, be sure to take advantage of it. Start by contributing at least 10% of your monthly income and try to gradually work your way up to 20%. Individual retirement accounts, or IRAs, can also provide investment vehicles in which most people can put up to $5,500 each year. Both 401(k) and IRA contributions may reduce your taxes, too.

Build an emergency fund

Gone are the days in which you could call up your parents for a quick injection of cash. Once you begin earning a steady salary, set some money aside for unexpected expenses. An emergency fund should consist of three to six months’ worth of living expenses. Because you’ll never know when you might need that money, keep it somewhere safe but within easy reach, like your savings account.

Keep an eye on your credit score

Although it might be hard to believe, it’s likely that eventually you’ll want to settle down and buy a house. To do that, you’re probably going to need to apply for a mortgage. The better your credit score, the lower your interest rates will be, which could save you tens of thousands of dollars over the course of a 30-year mortgage.

To improve your credit score, pay your bills on time and restrain your card use to 30% of your credit limit. Regularly practicing this kind of responsible behavior should give your score a substantial boost over the years.

The bottom line

Although it’ll take some effort, making smart money moves at a young age doesn’t have to be a huge hassle. Just remember to pay attention to your retirement savings and make sure that your spending habits don’t result in massive amounts of debt. Before you know it, you’ll be able to toast to a secure financial future.

© Copyright 2016  NerdWallet , Inc. All Rights Reserved

Ah, spring! It’s the season of renewal, when we can count on longer and brighter days, the return of baseball and the urge to get the house in order.

That goes for many people’s financial houses as well. Spring is a good time to comb through your personal finances and ensure that you’re managing your budget, credit cards, investments and insurance in the best possible way. Here’s how to get started.

REASSESS YOUR HOUSEHOLD BUDGET

Take stock of  your budget , including any major changes in income or spending. Did you or a family member receive a raise, get laid off, take some unpaid leave or adopt a pet? These and other changes should determine how you allocate your money.

Similarly, if you know a major expense is coming down the pipeline — such as a child starting college, an operation or a vacation — you can cut spending now in order to boost your financial cushion.

GET A GRIP ON YOUR CREDIT

Financially speaking, there is perhaps nothing more important than your  credit score . It’s a measure of how trustworthy you are as a borrower, and it affects your ability to get approved for and receive low interest rates on credit cards and loans. Resolve to improve your credit habits and bolster your score: Pay your bills on time, don’t take on too much new debt, and create a plan for settling any outstanding balances.

Even if you have good credit, you should re-evaluate your credit situation. Review your interest payments and consider transferring your balance to a card with a lower rate. If you took out a mortgage or auto loan a while back, ask your lender if you could save by refinancing.

Everyone can monitor his or her credit easily — and for free. You’re entitled to a free copy of your credit report from each of the three major reporting bureaus (Equifax, Experian and TransUnion) once a year. These reports reflect your borrowing and payment history and help determine your credit score. Occasionally, they contain mistakes that could lower your score, so keep an eye out for errors, and ask the bureau to correct any you find.

REBALANCE YOUR INVESTMENT PORTFOLIO

When you set up your retirement accounts, such as a 401(k) or 403(b), you likely selected investments based how much growth you wanted to achieve — and how much risk you were willing to accept.

But as you near retirement, you may want to take on less risk — or you may find that your proportion of stocks and bonds has drifted from your target. That’s why it’s a good idea to revisit, and perhaps rebalance, your portfolio each year. This could entail moving gains from your “winning” holdings and reinvesting the profits elsewhere.

CHECK YOUR INSURANCE POLICIES

Home, life, auto — make sure you have the coverage you need and that your beneficiaries are correct.

It’s also worth asking your carrier if you’re eligible for any discounts. For example, if you’ve been accident- and ticket-free for several years, you might qualify for a good driver discount. And if you’ve been with the same company for a while, you may want to shop around for quotes for comparable coverage.

ORGANIZE YOUR IMPORTANT RECORDS

Spring cleaning usually means throwing things away, but you should retain copies of important financial statements. Don’t want to keep the paper version? It doesn’t take long to download and copy records to your computer, or store them in a secure cloud service.

Just as preparing the soil in spring helps produce a healthy crop, tending your financial fields can set you up for financial success. There’s no better time to begin.

© Copyright 2017  NerdWallet , Inc. All Rights Reserved

Rewarding careers don’t always come with a steady paycheck. For people who work in agriculture, construction, tax preparation, entertainment, landscaping or other types of freelance and seasonal businesses, income may vary wildly depending on the time of year. This uneven cash flow makes budgeting especially challenging, but it’s by no means impossible.

Here’s  how to budget for long-term financial stability when your income changes with the seasons.

DETERMINE YOUR AVERAGE MONTHLY INCOME

With most traditional budget plans, you start by determining your monthly income. But how can you complete this first step if your income keeps changing? The most effective strategy is to use your average monthly income. To calculate this, add up your post-tax income for the past three or more years and divide that sum by the total number of months. If economic conditions have — or are projected to — hit your industry or business hard, you may want to deduct 15% to 20% from this number to create a safety cushion.

CALCULATE YOUR AVERAGE MONTHLY EXPENSES

When work is seasonal, expenses often fluctuate, too. During busy times, you may have to spend more on gasoline, utilities, equipment maintenance and office supplies. If you spend more during your busy season, determine your average monthly costs by adding up your personal and work-related expenses for at least one year and dividing that figure by the total number of months.

FINE-TUNE YOUR BUDGET

Subtract your average monthly expenses from your average monthly income to get your baseline budget figure. If you find you’re cutting things close or dipping into the red, you’ll need to make some adjustments. Consider cutting unnecessary expenses or picking up extra income by expanding your existing business’s volume, taking temp work during slow times or offering complementary services that peak during your off-season.

BECOME A SAVER

Having a savings plan is an especially important safety net when income is irregular. When planning your budget, be sure to include a line for saving each month. It’s best if you can put away 10% or more of your income, but even small amounts deposited consistently add up significantly over time with compound interest. Aim to save at least three to six months’ worth of expenses to ensure you can live comfortably during lean times or emergencies.

ADDITIONAL SURVIVAL TIPS

To help even out cash flow and make the most of seasonal income:

• Make it easier for customers to pay you quickly by improving your invoicing procedure, offering options such as PayPal or Square to accept credit card payments, or setting up direct deposits to your account with customers.
• Negotiate with vendors and suppliers for discounts or extended payment terms.
• Take advantage of financial and budgeting software such as QuickBooks.
• Consider offering discounts and promotions during slow times to boost business.
• Track your cash flow regularly and adjust your budget as necessary.
• Even with your budget plan in place, keep spending to a minimum during slow seasons.
• Stick to your budget during your busy season to avoid spending the cash you’ll need during the down times.

Seasonal income doesn’t have to mean financial feast or famine. With proper budgeting, you’ll be able to live well no matter what the season.

© Copyright 2017  NerdWallet , Inc. All Rights Reserved

 When you take out a second mortgage, a name for a  home equity line of credit , you’re offering your house as collateral to secure another loan. The upside: You can gain access to up to 85% of your home’s value, minus your current mortgage balance and adjusted based on your creditworthiness.

The downside? If you can’t make your payments, you could lose where you live.

Because the stakes are high, you want to make sure you use a HELOC for the right reasons. Here are a few.

MAKING HOME IMPROVEMENTS

Most people who take out a HELOC do so to make home improvements. Experts say you should only do this if the improvements you’re considering will increase your home’s value. This way, the money you’re borrowing will be returned when you sell your house at a higher price.

The National Association of Realtors’ 2015 Remodeling Impact Report lists these six changes as the ones with the best return on investment:

• Installing a new front door.
• Installing new siding.
• Upgrading your kitchen.
• Adding on to your deck and patio.
• Making an attic into a bedroom.
• Installing a new garage door.

These improvements can range from a few hundred to tens of thousands of dollars, but they don’t change the footprint of your home and tend to be what future buyers look for.

SUPPLEMENTING AN EMERGENCY FUND

Everyone should have an emergency fund to cover events such as unexpected car repairs and appliance breakdowns. Most people keep these in  savings accounts , but you might consider a home equity line of credit as another source of cash. You only pay interest on the amount you borrow, and you could pay the loan off quickly to save money. Still, it makes more sense to have an emergency fund that’s earning a little interest rather than one that charges you interest.

PAYING OFF HIGH-INTEREST DEBT

Because the average interest rate on a HELOC is much lower than the average credit card interest rate, many people think about using a HELOC to pay off their credit cards. This is a great strategy if you’re committed to never carrying a balance again. Otherwise, you’re just adding another debt at a lower rate.

Regardless of how you use a HELOC, remember that the interest rate is variable and may change each time you tap it. And you’ll have to repay the entire loan by the end of the payment period set by the lender. On the upside, the interest you pay on a HELOC is tax deductible, like your mortgage interest. If you use a HELOC for the right reason, that’s just one more benefit.

© Copyright 2017  NerdWallet , Inc. All Rights Reserved

Although it comes around every spring, tax season tends to inflict the same headaches year after year. To reduce your stress — and maximize your refund — it’ll help to stay organized and be aware of recent changes to the tax code.

For additional motivation to get on track, keep in mind that the average refund has been about $3,000 in recent years. Even if you don’t expect to get that much back, there are plenty of ways to put a refund to good use. But first, you’ll have to file your returns properly, taking advantage of any deductions you might qualify for. Here’s a look at where to get started.

COMPILING THE NECESSARY INFORMATION

For starters, you’ll need your W-2 form listing earnings and tax withholdings, which employers typically send out in January or early February. Be sure to have your Social Security number or taxpayer identification number available, as well as those numbers for any dependents you’ll claim. You’ll also need documentation of any income they may have had.

AFFORDABLE CARE ACT PENALTY

The Affordable Care Act ushered in one of the most significant tax law changes in recent years. It stipulates that if you didn’t have health insurance for more than three months in 2016 and didn’t qualify for an  exemption , you may face a penalty.

For tax year 2016, taxpayers who lack adequate insurance may be penalized at either 2.5% of a portion of their income or $695 per adult and $347.50 per child, to a maximum of $2,085 per family — whichever is higher. To avoid those fees in the future, it may be a good idea to  get insured .

TAX DEDUCTIONS REDUCE TAXABLE INCOME

Deductions reduce the amount of your income that you have to pay taxes on. Sit down and figure out whether the standard deduction or itemized deductions will work best for you. The former is a set amount that reduces your taxable income depending on your filing status; the latter lets you list qualified expenses separately, such as mortgage interest and local property taxes. If your itemized deductions add up to more than your standard deduction amount, go with that.

So what kinds of expenses can you deduct? Contributions to eligible organizations and interest on education loans are among the more well-known deductions you can take. Others, such as medical and  home office expenses , aren’t as widely used for various reasons. Make sure to look into which of your expenses you can use to reduce your taxable income, which will probably increase your refund. Bear in mind that income limits and expense thresholds may limit these deductions or eliminate them entirely.

If you qualify to contribute to a traditional individual retirement account, or IRA, you may be able to invest in your future and shield up to $5,500 of income from taxes — plus $1,000 more if you’re 50 or over — by putting it in an IRA. You have until the April filing deadline to make deductible contributions for the previous year. Withdrawals are subject to income tax, however.

THE BOTTOM LINE

Completing your tax returns won’t be much fun, but it’s the first step in  claiming a refund . Once you’ve filed your returns, you should expect to get what you’re due within three weeks — or in less than half that time if you ask for the money to be directly deposited to a savings or checking account. Just remember to compile all the essential paperwork before getting started, keeping an eye out for tax credits and changes to the tax code.

© Copyright 2017  NerdWallet , Inc. All Rights Reserved

Even if saving has never been your thing and money is tight, the coming of a new year is an opportunity to change old financial habits. Here are some ways to become a more efficient saver.

1. BUDGET

Budgeting  helps you organize your finances so you have money left over to save each month. It may seem laborious, but budgeting doesn’t have to be hard. Mobile apps cut a lot of the work and can help you track spending throughout the month.

2. PAY YOURSELF FIRST

Firmly commit to making a savings deposit monthly, even if you can only afford a small amount. Do this before paying your other bills.

3. AUTOMATE

If you’re not confident your resolution will stick or you want to simplify the process, automate your savings deposits. That way, a portion of your paycheck will automatically go to your savings account, or an amount you choose will be transferred from your checking to savings account each month. You won’t miss money that was never in your hands in the first place.

4. MAKE YOUR MONEY WORK HARDER

Compound interest is the interest paid on the interest your money earns in an account, and it allows your principal balance to grow faster. To fully benefit from compound interest, consider opening a high-yield savings account or a certificate of deposit that offers higher rates than the average savings account.

5. PLUG UP CASH DRAINS

It’s not always the big expenses that sabotage saving efforts; small expenses can add up and be a huge cash drain. To rein in spending and increase your cash surplus:

• Shop around for the lowest possible rates on utilities, insurance, TV, internet and  mobile plans . Also, make sure you get discounts you may be entitled to.
• Check bank account statements for less obvious fees such as those for account maintenance, ATM use or having a low balance. If your accounts come with several fees, it may be time to find a financial institution that costs less.
• Monitor daily spending and cut back on extras like lunches out, donut runs or fancy coffee.
• Explore free and low-cost entertainment options, including parks, beaches and hiking trails, as well as local concerts, theater and sporting events.

6. BRING IN EXTRA BUCKS

When trimming expenses doesn’t do the trick, the only way to create enough free cash for saving is to increase what’s coming in. You can:

• Sell unwanted items online or at a yard sale.
• Cash in credit or debit card reward points.
• Ask for a raise or for extra hours at work.
• Take on an additional part-time job or turn your hobbies or skills into dollars through tutoring, yard maintenance, dog walking, writing, crafting, musical performance or handyman work.

The benefits of saving kick in very quickly and only get better with time. A solid cushion in the bank protects you during emergencies and provides the means to travel, buy a home, get an advanced degree, or pursue whatever other dreams you may have.

© Copyright 2017  NerdWallet , Inc. All Rights Reserved

A brand new year provides the perfect opportunity to make meaningful life changes, including improved financial wellness. These five financial resolutions can help get your year off to a promising start.

1. GET ON BUDGET

Take charge of your finances by  creating a budget. Start by calculating after-tax income and subtracting fixed monthly expenses. Then allocate portions of the remaining income for savings, important goals and a few things that just make you happy. If this sounds complicated, relax; today’s user-friendly budget apps can take a lot of the pain out of the process. To further simplify money matters, consider setting up automatic bill pay, an automatic savings plan and separate savings accounts for specific goals.

2. BUILD AN EMERGENCY FUND

Without a solid cushion, any unexpected job loss, medical challenge or serious property damage could lead to lasting financial hardship. An  emergency fund  with three to six months’ worth of expenses can protect your standard of living and offer peace of mind. Commit to making consistent deposits to this fund even if you can only spare a small amount each month. Because you may need to tap into emergency cash at a moment’s notice, choose a vehicle that gives you easy access, such as a savings or money-market account.

3. PREPARE FOR RETIREMENT

Retirement may not be on the immediate horizon, but when the time comes it may well last 20 years or more. You’ll probably need somewhere from 70 to 90% of your final-year income for each year of retirement, and it’s unlikely that Social Security will be sufficient. Saving such a sizeable sum takes decades, so  it pays to start early . Put as much as you can afford into tax-advantaged Roth or traditional IRAs, and if your job provides a 401(k) plan, contribute the maximum employer-matched amount.

4. IMPROVE YOUR CREDIT

You likely know that  credit scores affect financing approval and interest rates. But the influence of those three little numbers actually stretches much further. Prospective employers and landlords frequently check credit, so low scores may mean missing out on the best jobs and apartments. Credit scores also may affect insurance premiums, mobile phone offers, vacation costs, and even whether utility hookups require a cash deposit. For top scores:

• Pay all bills on time.
• Keep credit card balances at no more than 20% to 30% of the credit limit.
• Carry a mix of debt types such as credit cards, auto loans and personal loans.
• Monitor credit to catch and correct any errors or problems.

5. KNOCK DOWN DEBT

Even with a great job, high-interest debt can sabotage financial health. To dig out from under this burden, consider concentrating efforts on your highest interest debt first while continuing to make timely smaller payments on all other obligations. When the first balance is satisfied, focus on the most expensive remaining debt and continue this way until you’re debt-free.

If debt from multiple sources is unmanageable,  debt consolidation  may help you regain control. This approach streamlines debts into one payment, often with reduced interest and a lower monthly cost. Depending on your individual situation, home equity financing, personal loans or zero interest balance transfer credit cards may be effective debt consolidation choices.

Smart money resolutions boost financial stability not just immediately but over the long haul as well. The bonus takeaway is the confidence that all life’s remarkable milestones and challenges won’t break the bank.

© Copyright 2016  NerdWallet , Inc. All Rights Reserved

Thanksgiving is a time to gather with loved ones for a satisfying meal and kick off the holiday season. If you pay current prices for your menu items, though, you could blow a chunk of your holiday budget before you even get to the pumpkin pie.

Use these tips to keep your Thanksgiving festive and thrifty.

GET A FREE TURKEY

The turkey, which cost an average of about $23 in 2015, is easily the most expensive item on a traditional Thanksgiving table — but you can often get one for free. Many supermarkets offer them as loyalty rewards, and even allow shoppers to select the turkey.

If your local supermarket doesn’t participate in this type of rewards program, opt for a frozen bird. It can be significantly cheaper, and odds are your guests won’t know the difference.

CHOOSE REUSABLE DINNERWARE

Disposable cutlery, tablecloths and dinnerware simplify holiday cleanup, but the costs really add up, especially if you spring for higher end items. Save money, reduce waste and create a warm, elegant atmosphere by using cloth napkins and tablecloths as well as real flatware, glassware and dishes.

MAKE YOUR OWN SIDES WITH STORE BRANDS

Purchasing prepared gravy, stuffing, cranberry sauce and desserts is convenient, but it’s also an  unnecessary expense. Making your own sides, condiments and desserts is cheaper and often a lot tastier, too.

When cooking for a large Thanksgiving crowd, avoid brand name ingredients. You should be able to find substitutes that keep costs down without sacrificing flavor.

SIMPLIFY THE MENU

It’s tempting to get ambitious and create a Thanksgiving menu with more courses than your guests could possibly eat in a sitting. But to prevent spending your whole holiday budget on the Thanksgiving meal, skip the saffron, truffles and endless appetizers. Instead, plan a simple menu with a few hearty sides and stick with seasonal produce, such as apples, sweet potatoes, pumpkins and Brussels sprouts. These will be much more reasonably priced than imported fruits and vegetables.

MAKE SMART BLACK FRIDAY SHOPPING DECISIONS

Thanksgiving has also become a time to start shopping for the ensuing holidays. But Black Friday, Cyber Monday and other Thanksgiving weekend sales tend to inspire a shopping frenzy that doesn’t always result in the wisest choices. To keep your cool:

• Make a list — and a budget — to head off impulse buys.
• Compare prices online before making purchases.
• Avoid opening multiple store credit cards at once. This can lower your credit scores and make it easier to overspend.
• Hold off on buying toys, which tend to be cheaper during December’s first two weeks.

Making smarter Thanksgiving spending choices keeps dinner and shopping costs under control without putting a damper on family fun. And when the weekend is over, you’ll still have enough cash to make your winter holidays sparkle.

© Copyright 2016  NerdWallet , Inc. All Rights Reserved

Good news! A new feature has been implemented for members who are Parsons and Worley Parsons employees.  Early posting of direct deposit will enable members to receive their payroll early.  Upon receiving the direct deposit, funds will be released and made available immediately instead of waiting until the entry date provided. 

Parsons FCU does not control when the paying agency submits their files but past experience has shown that they are usually submitted at least one day before the actual "pay day."  For example, if you are usually paid on Friday the 13th, your funds will post Thursday, the 12th.

If you have any questions, please call Member Services at (800) 765-4527.

Sometimes it’s smarter to buy certain items according to the season, like sweaters near the end of  winter and swimsuits in late summer. But what’s the best season for buying a house?

The answer: the fall. As temperatures cool and trees shed their leaves, enough factors break in the buyer’s favor to make it the No. 1  season for homebuying . Here’s why.

Less competition

Many homebuyers are families who want to minimize a move’s effect on their kids’ schooling. They want them to start at a new school on the first day, not midyear. And so if their spring and summer searching didn’t work out, they might well wait for the next go-round. This means fewer buyers bidding on the same houses you’re interested in and more negotiating power when you do. (A chart in this article shows how home sales drop starting in the fall.)

Of course, this works both ways: Sellers might not want to uproot their families in the middle of the school year either. But while this brings housing inventory down, you might just find it easier to focus and pinpoint exactly what you really want in a home.

Sellers are more motivated

Spring and summer are the high seasons for homebuying: Days are longer, the weather’s nice, and open houses are well-attended. And that means sellers can sit back and be a bit choosier with offers.

But as Labor Day recedes in the rearview mirror, sellers start to wriggle in their seats. The prospect of trying to sell during the holiday season or, more likely, waiting until the next year, is dispiriting. And so these sellers can become, in a sense, settlers — willing to reduce their prices and conditions. There is some variation by region, but overall in the U.S., prices have peaked by the end of August.

Buyers can use this increased motivation to their advantage, offering less and asking for more during negotiations.

Taxes and discounts

Buying a home costs a lot of money but comes with good tax breaks as well. The IRS allows deductions for the interest you pay on your mortgage, on the premiums you might pay for mortgage insurance, on property taxes and more, including some of these that went into your closing costs. Buying a home in the fall means seeing those tax breaks sooner, the following April.

Also, much like those motivated sellers, many homebuilders discount their inventories during this time of year to help them meet year-end sales goals.

The decision to buy requires serious consideration of where you are in life, what your goals are and how much you can afford . But if you are indeed ready, buying during the fall can be a good call. Just try to find time in between football games.

© Copyright 2016 NerdWallet , Inc. All Rights Reserved

When you take out a second mortgage, a name for a home equity line of credit, you’re offering your house as collateral to secure another loan. The upside: You can gain access to up to 80% of your home’s value, minus your current mortgage balance and adjusted based on your creditworthiness.

The downside? If you can’t make your payments, you could lose where you live.

Because the stakes are high, you want to make sure you use a HELOC for the right reasons. Here are a few.

Making home improvements

Most people who take out a HELOC do so to make home improvements. Experts say you should only do this if the improvements you’re considering will increase your home’s value. This way, the money you’re borrowing will be returned when you sell your house at a higher price.

The National Association of Realtors’ 2015 Remodeling Impact Report lists these six changes as the ones with the best return on investment:

• Installing a new front door.
• Installing new siding.
• Upgrading your kitchen.
• Adding on to your deck and patio.
• Making an attic into a bedroom.
• Installing a new garage door.

These improvements can range from a few hundred to tens of thousands of dollars, but they don’t change the footprint of your home and tend to be what future buyers look for.

Supplementing an emergency fund

Everyone should have an emergency fund to cover events such as unexpected car repairs and appliance breakdowns. Most people keep these in savings accounts, but you might consider a home equity line of credit as another source of cash. You only pay interest on the amount you borrow, and you could pay the loan off quickly to save money. Still, it makes more sense to have an emergency fund that’s earning a little interest rather than one that charges you interest.

Paying off high-interest debt

Because the average interest rate on a HELOC is much lower than the average credit card interest rate, many people think about using a HELOC to pay off their credit cards. This is a great strategy if you’re committed to never carrying a balance again. Otherwise, you’re just adding another debt at a lower rate.

Regardless of how you use a HELOC, remember that the interest rate is variable and may change each time you tap it. And you’ll have to repay the entire loan by the end of the payment period set by the lender. On the upside, the interest you pay on a HELOC is tax deductible, like your mortgage interest. If you use a HELOC for the right reason, that’s just one more benefit.

Ellen Cannon, NerdWallet

© Copyright 2016 NerdWallet , Inc. All Rights Reserved

You’re done with college, and now you’re ready to be on your own. But for newly minted grads who didn’t major in money management, here’s one last assignment: Summer reading to help with your financial future.

That degree you earned might open the door to a higher salary — and carry a student loan burden — so it’s important to know how to balance it all as you set the stage for the rest of your life.

Map out a budget

As a college student, you probably got accustomed to living frugally. Stay the course.

A good way to live within your means is to figure out how much discretionary spending — that’s what’s left over after necessary expenses like rent, food and gas — you can afford each month. This will be easier to compute after you’ve been working for a few months and have a better grasp of what your take-home pay is after taxes and other deductions.

In building your budget, start with the essentials as well as ongoing bills you have to pay, such as utilities, student loans or a car loan. What’s left over is yours to allocate for spending and saving. It’s probably wise to limit eating out and splurging on clothes and entertainment.

Ways to save

Chances are you didn’t live in your own house or apartment when you were in college. If you are on good terms with your parents and don’t think returning to live with them would be too regressive, that could be a huge bonus. You could use the saved rent money to pay down student loans, establish an emergency fund and even start building a retirement account.

If moving back home isn’t an option, look for roommates to reduce your overhead.

Pay down what you owe, build up credit

The average student loan burden hovers around $30,000, so the last thing you want to do is add to it by running up new credit card debt. Still, it’s to your advantage to have a credit card to build good credit. A good way to do that is to make regular small purchases and pay them off right away to establish your creditworthiness.

As for student loan debt, before graduating you selected a repayment plan for any federal loans. The standard plan calls for equal monthly payments for 10 years. If you have a steady income and good credit, or can use a co-signer, you can refinance the loans to get a lower interest rate and possibly pay off your loans faster. Before refinancing, make sure you won’t lose any important federal loan benefits, such as loan forgiveness.

Build a portfolio and retirement savings

Historically, buying stocks or mutual funds when you’re young is the best way to build a portfolio, because you have decades for your money to grow. In other words, you have time to ride out market declines and earn good long-term returns.

Similarly, starting a retirement savings plan early pays dividends. It’s particularly helpful if your employer offers to match your contributions, through a 401(k) or other plan. If your job does this, start contributing right away and make the most of the match.

One last piece of advice as the paychecks start rolling in: Don’t spend more than you earn. Congratulations on your graduation, and may the wind always be at your back!

Peter Lewis, NerdWallet

©Copyright 2016 NerdWallet , Inc. All Rights Reserved

For many people, debit cards are the perfect plastic. They offer most of the conveniences of credit cards with no risk of accumulating debt.

But like credit cards, debit cards are vulnerable to rip-off artists. And debit card fraud is particularly scary because thieves can withdraw money directly from your checking account.

Here's how debit fraud happens and how to protect yourself.

How identity thieves operate

Debit card fraud can be sophisticated or old-school. Thieves use techniques including:

Hacking

When you bank or shop on public Wi-Fi networks, hackers can use keylogging software to capture everything you type, including your name, debit card account number and PIN.

Phishing

Be wary of messages soliciting your account information. Emails can look like they're from legitimate sources but actually be from scammers. If you click on an embedded link and enter your personal information, that data can go straight to criminals.

Skimming

Identity thieves can retrieve account data from your card's magnetic strip using a device called a skimmer, which they can stash in ATMs and store card readers. They can then use that data to produce counterfeit cards. EMV chip cards, which are replacing magnetic strip cards, are expected to eliminate this risk.

Spying

Plain old spying is still going strong. Criminals can plant cameras near ATMs or simply look over your shoulder as you take out your card and enter your PIN. They can also pretend to be good Samaritans, offering to help you remove a stuck card from an ATM slot.

Smart ways to protect yourself

Adopt these simple habits to greatly reduce your odds of falling victim to debit card fraud:

• Be careful online: Shop and bank on secure websites with private Wi-Fi. If you must shop or bank in public, download a virtual private network to protect your privacy.
• Monitor your accounts: Review your statements and sign up for text or email alerts so you can catch debit card fraud attempts early.
• Don't ignore data breach notifications: The majority of identity theft victims received warnings that their accounts might have been breached but did nothing. If you get one of these messages, change your PIN and ask your provider to change your debit card number. You can also ask one of the major credit card bureaus to place a fraud alert on your file.
• Inspect card readers and ATMs: Don't use card slots that look dirty or show evidence of tampering, such as scratches, glue or debris. And steer clear of machines with strange instructions, such as “Enter PIN twice.”
• Cover your card: When using your debit card or typing your PIN at an ATM, block the view with your other hand. Go to a different location entirely if suspicious people are hanging around the ATM, and if your card gets stuck, notify the bank directly rather than accepting “help” from strangers.

 Even if you've taken precautions, debit card fraud can still happen. If your card gets hacked, don't panic. Tell your bank or credit union right away so you won't be held responsible for unauthorized charges, and file a complaint with the Federal Trade Commission .

Roberta Pescow, NerdWallet

© Copyright 2016 NerdWallet , Inc. All Rights Reserved

It's next to impossible to go through life without accruing some debt. The good news is that some loans can be healthy and even productive, which means there's no rush to pay them off. Other debts should be erased more quickly. Here are a few examples of debt that can help — and hurt — your financial health.

Good debt

Student loans

As overwhelming as education loans can be, how you handle this debt can actually boost your credit. The three major credit bureaus — Experian, TransUnion and Equifax — consider this debt as a type of installment loan. So if you make payments in full and on time each month, you build up a good credit history, which future lenders will recognize. More specifically, properly handling student debt can boost your credit score .

Education loans can also help decrease your taxable income. On your federal tax return, the interest you pay on loans can be deductible up to $2,500 or the amount you paid, whichever is lower, provided you meet certain qualifications .

Plus, student loans tend to have more manageable interest rates, in the single digits, compared with other forms of debt such as credit card balances. The standard amount of time to repay federal education loans is 10 to 25 years, depending on the loan.

Mortgage loans

Like student debt, a mortgage is an installment loan. As long as you make monthly payments in full and on time, you can maintain or improve your credit. The interest you pay can also be tax-deductible.

Mortgage rates and terms can vary, which can affect their quality as good or bad debt. A fixed-rate loan's payments won't change over its term, which can make paying it easier to manage. Paying an adjustable-rate mortgage can be more challenging after any fixed-rate introductory period ends if the market pushes the rate — and the payment — higher.

Auto loans

You can help your credit score rise by making full payments on time on an auto loan. You'll also help your auto-enhanced score, which looks at auto credit history, including any vehicle repossessions or bankruptcy effects. But cars depreciate with time and use, so try to avoid winding up owing more than a car is worth. This can happen if you latch onto a loan that doesn't require a down payment, or where the monthly payments are low and the loan lasts for six or more years.

Bad debt

Credit card balances

A credit card gives you access to a revolving line of credit, meaning you can use as much as the card limit, pay the money back and borrow it again. If you overuse a card, though, your credit score can drop. With cards typically carrying a double-digit rate, keeping an outstanding balance can mean paying thousands of dollars extra over time. The average household with a card balance owed $15,355  as of the third quarter of 2015.

Short-term loans

Short-term loans, either from payday lenders or lenders that demand property such as an auto title as collateral, can ensnare borrowers in debt traps and lead to property losses while the annual interest rate can soar to over 400%, according to federal regulators. This is one of the most potentially harmful sorts of borrowing.

Whether debt is good or bad relates to how it may affect your finances. Using debt to invest in your home can build equity, and education debt can lead to a better job, both of which can pay off later on. Short-term borrowing and carrying high-cost balances are both unproductive and harmful to your credit.

When weighing whether to take on debt, make sure it's affordable so your financial health remains strong.

© Copyright 2016 NerdWallet , Inc. All Rights Reserved

Parsons FCU will be participating in the Pasadena Ronald McDonald House Walk for Kids on Sunday, April 3rd.

If you are interested in joining this event, please visit here for more details.

"According to a recent banking survey from Accenture , large national and regional banks lost 16 percent of their Millennial banking customers in 2014 while community banks saw a 5 percent increase in young account holders. Credit unions experienced a 3 percent jump in Millennial membership."

Read more:  https://www.cuinsight.com/millennials-call-big-banks-weak-on-rewards-high-on-fees.html