Every day there are thousands of organizations across the country putting enormous time and effort into fundraising. From bake sales to candy bars, from cookies to popcorn, people are always coming up with creative ways to raise money for a good cause. Now, imagine that an unscrupulous leader in the organization who steals hard-earned money raised by the group destroys all of that effort. It has happened to church groups, schools, scouting organizations and sporting clubs. A few clear, simple rules can keep it from happening to your group.

One of the reasons we all participate in such organizations is that we want to have fun and build community. There is a general feeling of good will generated and it’s easy to let our guard down. Unfortunately, many otherwise honest people may succumb to temptation if they fall on hard times. One way to look at it is for all members of the group to be mindful not to put one another in a position where they could become suspect if money went missing. Care of the organization’s funds should be a constant collaborative effort.

• Elect trustworthy individuals as officers, but don’t put anyone in a situation where they are easily tempted to defraud the group
• Keep a system of checks and balances that the group agrees upon
• No one should be offended if anyone in the group wants to look at bank statements, ledgers or other records-books should be open at all times
• Frequent, transparent reporting should be made to the group and verified independently by different group members
• We encourage groups to sign up for online banking and e-Statements so that different members can easily go online any time to review accounts
• Rotating officers frequently can prevent any one individual from getting too comfortable
• When large sums of money are brought in, the group should determine specific actions for use of the funds and initiate procedures for follow-up
• Officers should take care to avoid even the appearance of impropriety
• Use mobile apps like our new Sprig Mobile Banking as a way of quickly checking account activity

Young or old, the members of an organization work hard to raise money for specific purposes. Use the administration of those funds as a way to teach kids about cooperation, money and planning and keep the experience pleasant for everyone. In conjunction with our Free Girl Scout Troop Accounts, for example, PFCU offers extensive financial literacy training with the help of children’s author Sam Renick. After he and his Sammy Rabbit character delight and educate the kids, their parents often tell us they learned a lot, too! Don’t let money ruin friendships, familial relationships and the integrity of your group or organization. Encourage one another to be vigilant in a collaborative way and applaud each other for being cautious.

Staying ahead of malicious computer programmers is a challenge and requires an ever more complicated combination of precautions to ensure that your financial data is not getting into the wrong hands.

In a recent article, we warned you about “spiders” on the worldwide web.  Another particularly dangerous threat is known as a “worm”.  A worm is able to spread to other computers without being transmitted through e-mails or malicious websites.  One such worm is the “Ramnit” which has surfaced in Europe but is quickly spreading throughout the world.  The Ramnit takes advantage of the viral aspect of sites like Facebook.  Programmers realize that many people use the same password for social networking sites that they use for their bank accounts.  This makes it very easy for a worm to capture data and provide access to the funds of unsuspecting victims.  In addition, it sends messages to a user’s friends disguised as an article or other link and then prompts them to click.  As many as a million people a day click on erroneous links that then infect their computers, and the results can be a real headache.  If it seems unlikely that a friend would send you particular message, they probably didn’t.  Beware. 

Pasadena Federal Credit Union constantly monitors fraud alerts and works with online services that invest millions of dollars annually in security.  Our web hosting company has received numerous awards for their attention to security and we regularly review their efforts. 

Unfortunately, even a well-constructed password by itself is not very effective these days in protecting accounts.  Our new Online Banking and Bill Pay upgrade includes some new multi-factor authentication steps.

            -A site phrase selected by the user

            -A site key, which is a picture unique to each individual that helps verify they are on the actual site they intend to log into and not an imposter site

            -Security Questions

Never use the same password for multiple accounts and do not use a password a stranger could guess, such as your birthdate, social security number, address, nickname or other information.   These can open the door to identity theft.  Keep a log of hints that would help you recall a password but which would be meaningless to anyone else.   

When answering security questions that are things others might easily discover about you, such as names of relatives, your favorite color, etc. consider purposefully choosing an alternative answer (one that you will remember).  For example, if your niece is named Susie but she has blond hair, you might consider saying her name is “Blondie”.  Remember that someone who gains access to your social network also gains access to a potentially rich mine of information about you.  They can often determine things such as the names of family members, so those answers may not be the best ones to protect you. 

We have a very helpful demo on our website that walks members through some the exciting and helpful changes effective on our Per$onal Branch Online Banking and Bill Pay beginning February 9, 2012.  Watch it to familiarize yourself with these changes.

Your kids won't see who is preying on them, so vigilance is imperative

Singer/Songwriter Melissa Manchester has a famous song titled A Mother and Father’s Prayer in which she sings

Would you please take them under wing

Watch over them especially

Keeping them safe from everything

This is a mother’s prayer

The world can seem overwhelming for a parent trying to protect their child.  However, being proactive can bring back a feeling of empowerment.  One danger parents may not always consider is the potential harm lurking on the internet.  It is real and has the potential to devastate lives..

A spider weaves elaborate webs to capture unsuspecting creatures so that they can consume them.  While the worldwide web has transformed our lives and placed enormous amounts of information at our fingertips, the comparison of the perilous aspects of its accessibility to a spider’s web is important.  With the freedom of expression and information comes the risk of harm to adults through online fraud scams discussed elsewhere here and to children through online predators.

How can we instill in our kids a confidence and faith in humanity while still protecting them from harm, and even from themselves?  The worldwide aspect of the web means that no single government is able to restrict what people in other countries can post.  Consequently, those who wish to prey upon innocent victims are able to maneuver with alarming ease and can do a lot of damage.  Here are some general rules families should abide by:

• Think twice before giving kids, even teens,  personal computers with web access in their bedrooms.  They should only be allowed to go online when adults are present and in a shared space such as the living room.  It should be clear that at any time the child’s internet use could be monitored.  Tracking software and parental controls are available.
• Kids should not be given internet access on cell phones.  Many parents now choose to give their kids mobile phones for emergency and ease of communication between parent and child, but they should not have unfettered access to the internet.
• Parents should have frequent, ongoing dialogue about the internet with their kids.  The positive attributes of the web should be balanced with detailed explanations of how predators can operate.  Just as kids are taught not to talk to strangers who approach them in public or take candy from them, they should not talk to strangers online.

PFCU CFO Robert Norris says he explained to his son that allowing him unmonitored access to the internet would be like placing a stack of adult magazines in his bedroom and asking him not to look at them, and then shutting the door.  “It isn’t fair to him”, he reasoned.

One huge culprit is file-sharing.  In this, the spider is actually spawning many other spiders and they create more webs at an alarming rate, but they all come back to your computer, bringing more hazards!  People love the concept of being able to connect to computers owned by individuals all over the world and quickly gaining access to music, software, images or documents in which they share an interest with others.  Part of the problem lies in the way file-sharing works.  In many cases, you are literally handing control of your computer over to someone else and allowing them to get into all your files, as well as loading anything they want onto your computer.  They can easily upload something illegal onto your database, whether it’s unlawfully acquired intellectual property or even illegal pornographic material.  Once this material is on your computer, it can quickly be shared with others who are connected to the file-sharing network.  This now makes you a distributor of the shared material in the eyes of the law.  One can see how this can quickly become a recipe for disaster. The best way to steer clear of this kind of trouble is to avoid file-sharing sites altogether. 

An article on Kidshealth.org sites the example of a child searching for ‘Lego” and making a typographical error that the search engine auto-corrects to the word ‘legs’.  Now the child may be hit with a barrage of inappropriate images. 

Parental control settings can be a valuable tool but do not rely on them alone. 

Stay involved in your child’s online experience.   The internet can be a wonderful place if approached correctly.  Stay informed and keep your kids informed so that they make the right choices.

Rest assured that PFCU is doing all we can to keep our members safe online. Check out the Kid’s Privacy Policy on our website.  The safety and well-being of our kids is all of our responsibility.

Lyrics from A Mother’s and Father’s Prayer by Melissa Manchester and Karen Taylor-Good

© Copyright 2004 Song Guru Music/Bug/Windswept Music  Used by permission

There's no time like the present to escape bank fees and mediocre service by joining a credit union.

Why a credit union?  Why PFCU?  There are LOTS of reasons! 

Suze Orman, Jane Bryant Quinn and numerous financial websites such as CULookup, Find a Credit Union and creditcardconnection.org  to name a few, have been touting credit unions for years.  The clamor reached a fever pitch recently when big banks announced plans to begin charging people to use their debit cards.  When something has been free and suddenly isn’t, people notice.  Actually, there have been more subtle ways that bank customers have been paying more and getting less for several years.  Even as the economy worsened, many consumers saw dramatic increases in credit card rates over the past decade.  Fees of all sorts increased or appeared seemingly out of thin air.  People are feeling it more than ever and are looking for alternatives.

So why a credit union?  There are lots of very good reasons.  First, a credit union is a non-profit financial cooperative owned by members, not stockholders and run by a volunteer Board of Directors from the local community who are also members, rather than a board, which receives compensation and may not otherwise be connected to the people who bank there.  Consequently, credit union earnings which exceed operating expenses are returned to the members in the form of lower rates on loans, higher rates on savings, and fewer fees.  The difference can be quite stark.  The credit union motto is “People Helping People” and we take that very seriously.  That’s why you will see credit union employees out in the community teaching financial literacy, volunteering for community service, and offering sensible, low-cost financial services to our area, including those who under-served by other financial institutions. 

If you are thinking of joining a credit union, Pasadena Federal Credit Union is an outstanding choice!  It’s no accident PFCU was voted “2011 Best Bank/Credit Union in the San Gabriel Valley” by the readers of the Pasadena Star News, Whittier Daily News, San Gabriel Valley Tribune and LA Times.  We have outstanding loan and deposit products and exemplary service our members rave about. 

Take credit cards for example.  Suze Orman refers viewers and readers to www.creditcardconnection.org, a site that has ranked all of the credit cards for banks and credit unions nationwide.  PFCU has received five out of five stars and made the “Dean’s List”.  Our card has no annual fee, no cash advance fee, no balance transfer fee, no over-the-limit fee and no default rate.  Wait until you see our low APR, which is well-below even the low end of the national average quoted in a recent AP article. 

PFCU has the same low rate for new or used car loans.  We allow deposits of at least $1,000 at a time to Share Certificates.  We don’t charge you to use your debit card.  You can use our Coinstar™ machine to deposit up to $100 in coin each day for FREE as a member! 

PFCU is also more convenient than you might think!  Although there is one branch with our name on it, it’s like we have more than 4,000 branches nationwide because we team up with other credit unions.  Go to www.cuswirl.com to find a shared branch location near you that allows you to deposit and withdraw from PFCU accounts and make PFCU loan payments as long as you have your account number and ID with you.  There is also an iPhone or Droid app to make finding a branch even easier. 

PFCU does not charge to use ANY ATM machine.  You may incur charges at a bank ATM, but with more than 28,000 surcharge-free ATMs nationwide including 7-Eleven, Costco and Bank of the West, you won’t need to use one of those machines.  Just text an address, intersection or zip code to 692667 (MYCO-OP) or go to the locations tab of our website.  There are free phone apps and navigation apps as well. 

What are you waiting for?  The time is NOW to join a credit union.  PFCU is a smart choice you will be happy about for years to come.

Convergence by Jon Seeman to be displayed at Washington and Glen, traffic island

We often like to say that PFCU is Another Reason to Love Pasadena.  Many of our members agree!  That phrase works, of course, because there are so many reasons to love our city.  Blessed with some one of the most beautiful geographical locales on earth, the city starts off with some stunning views of the San Gabriel Mountains and lush vegetation.  Then a lot of brilliant architectural visionaries have added some amazing buildings, many of which are depicted in our 75th Anniversary mural Building Pasadena by Art Center College of Design alumnus Jerry Ortega.  Add to that a number of wonderful museums, and an art aficionado could stay busy indefinitely trying to take it all in.

Now, our members and their colleagues in the City of Pasadena Cultural Affairs Division are taking some of that artistic vision to the streets by introducing the work of local, regional and national  artists to Pasadena’s great outdoors.  On September 1, 2011, four colorful, vibrant and unique  works of art will be installed at various locations around the city as part of its new Rotating Public Art Exhibition Program.   Five more will be in place by the end of the year.  The exhibitions activate unusual locations such as traffic islands and medians, transforming small, often unnoticed areas into exciting and stimulating destinations for visitors and residents.

Lt Mustardseed's Timeless Joy, to be displayed at Washington and Marengo, SW corner

The first four works of art are pictured here, with more to come.

The nine locations host a changing display of artworks that are kinetic, interactive, and have multi-sensory sound and lighting components.  Come discover the urban outdoor gallery  that boasts a broad range of forms, subjects, styles and color schemes–artworks made of bronze, aluminum and resin.

Community participation is an essential component of the program. The Cultural Affairs Division invited the community to a series of meetings to help launch the program.  Participants were informed about specific locations for artwork and encouraged to spread the word.

Ongoing community participation is ensured by including residents and stakeholders in the periodic artwork selection processes.  To confirm representation from every part of the City, Council members nominate community representatives from their respective districts who, along with public art professionals, vote for artworks for placement at each of nine sites.

Handstand by Daniel Stern to be displayed at Sunset and Mountain, NW corner

In addition to these nine, new locations to experience public art, eight 30-60 minute Public Art Walking Tours are available in Downtown and Old Pasadena which allow you to enjoy the variety, diversity and breadth of what Pasadena public art has to offer.

Diversity by Cecilia Lueza to be displayed at Sierra Madre at New York, Traffic median east of intersection

To learn more about the artists and artworks currently on exhibition, to view maps and bus routes of the artwork locations, and to see more public art in Pasadena, please visit the website www.cityofpasadena.net/arts or call the Cultural Affairs Division at 626-744-7062.

Now you have another reason to love Pasadena!

Hello to All My Friends!

It is time to head back to school and I have a question for you – do you have rhythm? According to the dictionary, the word rhythm can mean a typical pattern of movement or an activity in which some action repeats regularly. Now compare that definition to one of my favorite words, habit! The dictionary defines a habit as a pattern of behaving that has become fixed by repeating it often. The definitions are very similar, aren’t they? Basically, a rhythm and a habit are ways of behaving we repeat again, again, and again.  

When it comes to the 3 BIG “S’s,” school, saving and spending, we all have rhythms and habits. Do you know what your rhythms and habits are when it comes to school, saving money and spending money? For example, what is your daily rhythm or habit – do you play or do your homework first? If you are not sure what your rhythm or habits are when it comes to school, saving and spending, you will want to find out. Why? Because, being aware of and picking the right rhythms and habits helps a person achieve their dreams and goals.

Here are two tips to help you with school, saving and spending rhythms and habits:

1. Keep a journal of how you choose to use your time and money
2. Review your journal with your mom, dad, teacher and a manager where you save your money. Ask them if you are practicing the right rhythms and habits to achieve your dreams and goals.

I know you can do it. Now, go get to it!

Your friend,

Learn more about Sammy and his mission to help kids get in the habit of saving money and make dreams come true at www.itsahabit.com

© 2011 The It’s a Habit Company, Inc.

Your pink slip could be your ticket to lower rates!

Many people have worked hard to get their cars paid off and still have plenty of miles to go before they need a new vehicle.  It’s a great feeling to have that pink slip in hand!  But, if one still has credit card payments or other unsecured debt, money may be slipping away.  If you are in that position, why not let your pink slip work for you?

While mortgage rates are at historic lows, many people with good credit can get even lower rates with a loan against their vehicle.  At PFCU, for example, our best rate can be had on new or used vehicles for up to 60 months, and there is no pre-payment penalty, so if things change you can react easily.  Consolidating higher interest debt with a car loan can help your credit score, too.   But be careful.   These loans, which are often referred to as “Car Title Loans” or “Pink Slip Loans”, are offered by a score of predatory lenders, but they are actually the same car loans your credit union has always offered!  Isn’t it great to know you can get a fantastic rate without all the fees at a credit union known and loved in the community like PFCU?  You can even apply right here, right now!

There are a few things to consider when determining if refinancing a vehicle with a clear title makes sense. 

1. What is the value of the car?  Is it an older vehicle?  PFCU will finance up to 100% of Kelly Retail Bluebook value of cars 2003 or newer, although the rate on model years 2003-2004 is a bit higher.  
2. How is your credit?  In most cases, your rate will be determined by your credit score.  Applying for a loan is quick and easy, and your loan officer will be able to tell you what your rate and payment will be.  A peek at your credit card statements will show how much you are paying toward interest every month, and they generally indicate how long it will take to pay off the balance if you just make the minimum payment. It can be very discouraging to make payments month after month with little reduction in the principal. An auto loan is usually amortized to pay off completely in two to seven years.  Remember how you paid off that car once?  You can do it again! 
3. When do you plan to get a new car?  A good practice when paying off a car loan is to put the amount of the former payment into a savings account for maintenance and repairs, and ultimately for a down payment on a new car.  If you haven’t done that, you will need to make sure you can cover maintenance and have the means to get a new car when the time comes.  Chances are, by paying off your credit cards with a car loan, you will lower your payments each month.  Perhaps you can start by putting the difference away into a savings account earmarked for car expenses, whether it’s maintenance or repairs on your current vehicle, or a down payment.  
4. Get Gap coverage and Mechanical Breakdown Insurance.  The Gap will pay off your loan if your car is stolen or totaled and you owe more than it’s worth.  Plus, with ours you even get $1,000 toward a new car! 

 Mechanical Breakdown Insurance will help you manage repair costs so there are no surprises.  It’s like the extended warranty you get at the dealer, but MUCH less expensive.

To summarize, refinancing a vehicle with a clear title is something to explore.  Call one of our friendly loan specialists and we can help you determine if it makes sense for you right over the phone.  Your pink slip might get you from red ink to black sooner than you think.

There are now many fuel-efficient cars on the market to save you money.

Even though gas has dropped below $4 per gallon, if you have a long commute to work, run errands on the weekend and/or take trips out of town, fuel takes a big chunk out of your monthly budget. If you drive an SUV, large pickup truck or an old gas guzzling sedan, the hit to your wallet is even greater.

Wouldn’t it be nice if you could reduce your fuel bill AND drive a new car? You can! In fact, a brand new fuel efficient car could pay for itself in the first month … and then some!

According to the gas mileage savings calculator on auto website edmunds.com, if you trade in a 2007 Chevrolet Suburban, Cadillac Escalade or Dodge Ram 2500 Quad Cab for a 2011 Toyota Yaris sedan, Chevrolet Aveo sedan, or even a Volkswagen Jetta, you would save from $271 to $372 per month on gas: easily covering a monthly loan payment after your trade-in, and then some*.  In some cases, the value on your SUV may actually be worth more than your new car!

Let’s look at some specific numbers.

Say you own a 2007 Chevy Suburban LT 2500, and trade it in for a 2011 Volkswagen Jetta four-door sedan.  The Suburban is still worth $17,265, and the new Jetta with typical options sells for only $15,450.  Now, let’s assume you financed the Suburban over six years and still owe $15,000.  If you sell it for $15,000 and pay off your loan, you’d have to finance the entire Jetta.

A deal breaker?  Nope!  You’d still come out ahead.  Way ahead.

Let’s assume you have average credit and don’t qualify for the lowest available rate; we’ll assume you have an interest rate of 6.99% APR. Your Suburban monthly payment was $681.77, and the SUV only gets 14 miles to the gallon.  Your new Jetta, financed over five years, would have a monthly payment of $305.86; and, gets 29 miles to the gallon.

So, you’d save $271 per month on gas alone … PLUS, another $375.91 on your monthly car loan payment … AND, you’d be driving a brand new car!

That’s almost $650 added to your monthly budget, a better choice for the environment, and a brand new car that’s covered by a dealer’s warranty!  You’d save even more if you purchased a smaller vehicle that has even better gas mileage than the Jetta.

How much is your used vehicle worth?  Edmunds.com is a good resource, but you might also want to try Clearbook.com, a popular new website that uses used car listings to determine the current market value of your vehicle. Simply enter your zip code, make, model, options, mileage and condition to receive a low, average and high price.

Loan rates still at historic lows, making the cost of financing a new vehicle very affordable. At PFCU, our loan rates for new and used cars are currently as low as 2.99% APR for terms up to 5 years.  You can apply online or print an application to complete and return to us by mail, fax, or in a branch.

*Gas savings based on 2,000 miles per month at $3.80/gallon gas.  Loan payments assume an interest rate of 6.99% APR.

Hello to All My Friends!

The next few months I am going to share some tips with you on how to “spend smart.” I like spending money almost as much as I like saving money to build my future. I like spending money almost as much as I like saving money so I am prepared for emergencies and to make dreams come true. How about you?

Sammy’s Gold Karat Spend Smart Tip #1: when you choose to spend, never, ever, spend more than you have. Do not do it when you are six or sixty!

One good way to not spend more than you have is to break down each dollar you earn or receive and separate it into categories.

Here is an example:

Sample Spending Plan

Saving                   10 cents

Giving                   10 cents

Investing                10 cents

Smart Spending   70 cents

Total                     $1.00

Notice, my plan is to never, ever spend more than seventy cents of every dollar I earn or receive. Why? It is simple. As much as I like to spend, building my future and giving are more important to me than spending everything I have. I think spending seven dimes or less out of every ten dimes I earn or receive is smart. What do you think?  What do your parents think?

Always spend less than you have! I know you can do it. Now, go get to it!

Your friend,

Learn more about Sammy and his mission to help kids get in the habit of saving money and make dreams come true at www.itsahabit.com

© 2011 The It’s a Habit Company, Inc.