SafeAmerica Credit Union

Bay Area

• By Kevin Alvarez

Common Cents For Couples: How To Manage Money Together

For some couples, February might be the month for romantic connection - celebrating Valentine's Day with dinner reservations or romantic gifting. For others, solidarity and closeness can be found in boycotting cupid together. Regardless of whether you have a love or hate relationship with the cherubic matchmaker who wields heart-tipped arrows, one thing is certain: cohabiting couples will enjoy a more harmonious relationship when they align on money matters.

Finance may not be the most romantic conversation topic, but it’s inarguably an important one. A 2021 Fidelity Investments Couples & Money Study found that one in five couples cite money as their greatest relationship challenge and 44% of partners admit to arguing about money occasionally. Building up emergency savings, paying off debt, and saving for milestone events (like college or a new home) topped the list of concerns keeping partners awake at night. So, what’s the best way to foster financial unity on the home front? We’ve come up with some suggestions we hope you’ll find helpful.

Skip The Candy; Talk Candidly

If you want to be successful in managing your money, you must find comfort in talking first. Being transparent about your earning, debt, and money philosophies may feel uncomfortable, but full disclosure is critical when it comes to making joint financial decisions like whether you want to merge finances or how you want to tackle bills. Make check-ins a regular conversation (versus a one-time event) so that when financial hurdles happen, you'll already have a baseline sense of how your partner will want to move forward.

Create Joint Financial Goals

What do you want to achieve as a couple? Do you need to create an emergency fund or start saving for a home purchase? Do you need to budget for an upcoming vacation or pay off a high interest credit card this year? Narrow down the primary financial priorities you can tackle in tandem, and then decide how you want those goals to be reflected: as a shared document you periodically refer to? As a vision board?? As categories within financial app? Everyone has their own preferences; the importance here is finding common ground when it comes to money milestones.

Organize Accounts

If your money philosophies are aligned and you generally see eye-to-eye, congratulations! Who spends what is half the battle. On the other hand, if fully merging finances is a pain point, consider keeping three accounts: one for you, one for your partner, and one for joint spending. Decide what falls under the shared category. For example, will medical expenses and gifts for family be shared or separate? Take time to fine-tune what constitutes "mine," "yours" and "ours," (and how much you want to budget within those categories) so that discretionary spending doesn't feel like something either of you need to defend.

Track Your Spending and Savings

Once your accounts are organized accordingly, there are several options for syncing up finances. Consider one of these popular options all offering free versions:

  • Mint: tracks income, savings goals, and your credit score, and also syncs with your credit cards and checking/savings accounts
  • Honeydue: Ideal for couples who appreciate the ability to chat about bills and transactions within the app (versus at the dinner table).
  • Goodbudget: A good opinion for curbing spending. Acts as an "envelope system" in which you can only spend the amount that's in each designated envelope (you can have up to 20 envelopes before switching to the paid version).

Planning For Your Future

Need a little guidance when it comes to planning your finances or creating a realistic household budget? Our partner GreenPath Financial Wellness works with thousands of people each month to help them pay down debt, improve their credit, and achieve their goals.

This article is shared by our partners at GreenPath Financial Wellness, a trusted national non-profit

Greenpath Financial Wellness

• By Kevin Alvarez

Love to Give: Holiday Food Drive 2022

The Season of Giving

It’s no secret that People Helping People is an integral philosophy to our credit union. In 2022 we joined forces, once again, with The Alameda County Community Food Bank and the Food Bank of Contra Costa & Solano for our annual holiday food drive "Love To Give" to help those in need.

Love to Give logoDonate Today!

Just $1 provides 2 meals to those in need.  Your donations will go a long way in helping those in need in our communities.

You can donate any time to either food bank.  Just click the links below to make your contribution.

Thank you!

Donate to Alameda County Community Food Bank
Donate to Food Bank of Contra Costa & Solano

We encourage you to help with our endeavors, and together we can continue to help our communities thrive.

• By Kevin Alvarez

Coping with Inflation

Inflation continues to put pressure on household budgets. From groceries to gas, record-breaking inflation means the purchasing power of your money is decreasing each month. Below you will find guidance on how to best navigate a time with high inflation.

1. Take Inventory of your full financial picture. Has your household income changed? have you adjusted your budget for rising groceries, transportation, or other expenses? Check your existing budget to see where you stand and where your money is going. If you don't have a budget, it can help to create a simple spending plan or roadmap of monthly expenses. A good place to start is to use resources like a budgeting worksheet track your monthly income against current expenses.

2. Continue to build an emergency fund to tap into when unexpected circumstances arise like a medical expense or costly home repair. An emergency fund helps reduce the chance of taking on debt to cover an unplanned expense. It might be tempting to pause monthly savings as rising prices take a bigger bite out of your monthly budget, but resist the urge. Put savings on auto pilot with each paycheck. Even a small amount will add up over time.

3. Prioritize monthly spending in a time of rising prices. Rethink certain monthly expenses such as subscription or streaming services. According to researchers, the average household has 4.5 streaming services and spends an average of $55 on them per month. This may not seem like much, yet $55 a month adds up to more than $600 per year. If you’re trying to cut expenses in the face of higher prices, ditching underused subscriptions can be a good place to start. As essentials get more expensive, figure out your new baseline. Limit credit card use and curb discretionary spending (dining out, entertainment). GreenPath’s Aligning Priorities workbook can help you make these decisions.

4. Monitor debt, especially as interest rates rise. Paying off high-interest credit card debt saves you money in interest, improves your credit score, and frees up room in your budget. Choose a debt payoff strategy that works for your situation. Consider GreenPath’s Debt Management Plan which helps you pay off unsecured debt in 3 to 5years. GreenPath can work with many creditors to bring your ac-counts current, lower interest rates, and eliminate fees.

5. Shop smart. Research the best sales, coupons, and specials, especially on products that are low in inventory. Check dollar stores for deals on household items and stock up on those items where possible. Bulk retailers or wholesale clubs might be a good way to stock up on items in large quantities for a lower per-use cost. Strategically plan your higher-cost purchases. Swap out brand-name items for generic as much as possible.

6. Keep tabs on your credit history. In times of rising prices, it pays to keep tabs on credit history, which is used to calculate your credit scores. The three digit number of your credit score helps determine whether lenders approve you for new credit and what interest rates they offer. Annualcreditreport.com is a trusted “one-stop-shop” to check your reports from Experian, Equifax, and TransUnion – the three industry-standard credit bureaus. You can also work with GreenPath to review your credit history.

7. Get independent guidance from a nonprofit financial counseling agency like GreenPath. Counselors look at your entire financial picture to help you ease financial stress and uncertainty, through access to clear information and a personalized action plan.

Information brought to you by our partner, GreenPath Financial Wellness

GreenPath Financial Wellness

• By Kevin Alvarez

America Saves Week – Save By Reducing Debt

One of the greatest contributors to financial stress is debt. If you're having a tough time financially, it can feel isolating, but the truth is 80 percent of Americans have consumer debt. The only way to relieve financial stress is to make a plan and work your way through it. But to make that plan, you'll need to understand the type of debt you have, your best-case scenario to pay down your debt, and how to leverage your knowledge so that you can maintain or increase your credit score. When you reduce your debt, you save in the long run — on late fees, interest, and a higher credit score, which will lower interest rates.

Get A Clear View Of Your Finances

You thought we'd say budget first, didn't you? While creating a spending and savings plan (our preferred term over "budget") is essential, the true value in having a plan is clarity. When you know your exact income and expenses, you can better steward the discretionary income left over after your bills are paid. It will become easier for you to decide how much to spend, if you can put more toward debt, what goes into savings, and whether to begin making investments. Your spending and savings plan will also highlight areas that need attention.

For example, is your grocery allocation adequate? Are all of your subscriptions and recurring monthly expenses still necessary, or can any be canceled? Knowing where all of your money is coming from and going to helps you build financial confidence and shows you where you can afford to reduce your debt and begin building wealth.

If you need support with making a spending and savings plan, we've created a straightforward tool that will help!

Work With What You Have

When you're paying down your debt, one conscious decision to adopt is to stop adding to your debt. This step may seem intuitive, but there are circumstances where the urge to just "charge it" may arise.

Many "Buy Now, Pay Later" options are becoming increasingly popular. Though it may feel like it is not, options like Klarna, Afterpay, and Affirm are debt and should be treated as such.

As you work to pay off your credit cards, here's a word of advice: do not close your credit cards!

Closing your credit card accounts may reduce your credit score, as the "age" of your credit factors into your FICO score. By keeping your card open with a $0 balance, you'll have a longer credit history and a larger amount of available credit. The only time you may want to consider canceling a card is if it has pricey annual fees.

Increase Your Income

If you can, consider increasing your income temporarily, allowing you to put more money towards your debt. This will allow you to pay down your debt faster! There are so many options to get a quick cash injection or additional income in today's economy. Some ideas include selling items around your home you no longer use, purging your closet on sites like thredUp, leveraging a talent or skill you have, like tutoring or singing, to offer as a service, or taking advantage of the booming gig economy.

Paying It Off For Good Starts With A Decision

There are many strategies to use when working toward paying off your debt. The most popular strategies include the snowball method or the avalanche method. By deciding which method you want to use beforehand, you will reap the benefits of paying it off faster.

Snowball Method

"Snowballing" your debt is a type of accelerated debt repayment plan. First, list all of your debts from the smallest balance to the largest balance. Next, make the minimum payment on all your debt except the smallest one. With your smallest debt, you will put as much money as you can toward the balance. Once the smallest debt is paid, take the amount you were putting towards that debt and apply it to the next smallest. With this method, interest rates are not the focus.

Avalanche Method

With the "avalanche" method, you will still make the minimum payments on every source of debt, but you apply the remaining funds toward the debt with the highest interest rate. By paying off the debt with the highest interest rate first, you reduce the overall amount of interest you pay.

Making extra payments allows you to pay off your loan(s) more quickly when paying toward installment loans, like your car payment. Just be sure to specify that any additional funds outside of your monthly payment go toward the principal. Before you begin making extra payments to installment loans, check the terms of your loan to determine whether additional fees or prepayment penalties may apply.

Regardless of how you decide to reduce your debt, let America Saves be your savings accountability partner! Take the America Saves Pledge and choose “reduce debt” as your savings goal. We'll support you by sending email and text reminders, resources, and tips to keep you on track towards paying down your debt.

Make the Pledge

By accessing this link, you will be leaving SafeAmerica's website and entering a website hosted by another party.

Although SafeAmerica has approved this as a reliable partner site, please be advised that you will no longer be subject to, or under the protection of, the privacy and security policies of the bank's website. The other party is solely responsible for the content of its website.

We encourage you to read and evaluate the privacy and security policies on the site you are entering, which may be different than those of the bank.

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• By Kevin Alvarez

Tax Return Delays Likely, Here’s What To Do This Tax Season

Tax season is fast approaching! The pandemic has affected production on a multitude of levels and has taught us to be prepared for any delays whether it be shopping in person or even online. The Internal Revenue Service has shared it is faced with backlogs of up to 6 million in unprocessed individual returns. This tax season could very well have delays we are not in favor with. To help alleviate the burdens of the IRS and improve our chances of receiving our returns in a decent time frame, the IRS strongly suggests you do the following:

Use Free Online Resources Provided By The IRS

Filing taxes always brings a myriad of questions; questions we never know who to direct to, but the IRS. For this year’s tax season the IRS has shared, instead of calling in with your questions, you can visit the IRS’ Volunteer Income Tax Assistance (VITA) and/or Tax Counseling for the Elderly (TCE). Both programs are managed by the IRS and staffed with IRS-certified volunteers, who must take and pass tax law training which meets or exceeds IRS standards. To learn more and find a location near you, click here.

File Your Taxes Electronically This Year

The IRS strongly suggests taxpayers file their tax return electronically along with their direct deposit information as soon as all their tax documents have been made available. Tax payers should also check on the accuracy of all their information. Filing a tax return with errors or one that is incomplete may add to the overall delay of receiving your tax return. For the latest IRS forms and instructions, you can visit the IRS website at IRS.gov/forms.

Expect To Receive IRS Letters This Tax Season

People receiving these letters should keep them. Do not throw them away. These letters can help taxpayers, or their tax professional prepare their 2021 federal tax return.

Letter 6419 - Advance Child Tax Credit Payments

Did you know the Child Tax Credits were actually advanced payments on your 2021 taxes? The tax credit was temporarily expanded from $2,000 to $3,600 and the government began to pay half of the available credit via monthly payments from July through December. Those who opted out of advance payments will be receiving full refund amounts.

Each individual, even those who file jointly, should have received letter 6419, 2021 Advance Child Tax Credit. The IRS began sending Letter 6419 via the United States Postal Service back in December 2021 and has continued into the month of January. This letter contains information such as the total Advance Child Tax Credit amount as well as the number of qualifying children used to calculate the overall amount. Anyone who did not receive any payments listed is instructed to call the IRS before filing a return.

Letter 6475 - Economic Impact Payment

Letter 6475, Third Economic Impact Payment (Stimulus Money) was also issued out to individuals who received a third payment in 2021, in late January. This letter is needed to provide verification to the IRS that the taxpayer received the money.

What if I never received Letter 6419 or Letter 6475?

As mentioned above, to ensure you receive your refund, you will need the information on both letters. If you are missing either letter you can use the child tax credits portal to verify the information you need.

You always have the option to call the IRS at 1-800-829-1040, but remember, delays are imminent and strongly suggested you complete all your tax needs, electronically.

For more important IRS information, you can click here.

Tips To Make Filing Easier

  • Gather all your 2021 tax records, Individual Tax Payer Identification Numbers, Adoption Taxpayer Identification Numbers, and this year’s Identity.
  • Set up or log in securely at IRS.gov/account to access personal account tax information including balance, payments, and tax records including adjusted gross income.
  • Individuals can use a bank account, prepaid debit card or mobile app to use direct deposit and will need to provide routing and account numbers.

Key Filing Dates

Below are important dates taxpayers should be aware of this season:

April 18 — Due date to file 2021 tax return or to request an extension and pay tax owed due to Emancipation Day holiday in Washington, D.C., even for those who live outside the area.

April 19 — Due date to file 2021 tax returns or request extension and pay tax owed for those who live in MA or ME due to Patriot’s Day holiday.

When it's time to file your return, remember that filing your taxes electronically and including your direct deposit information would result in the quickest possible return.

SafeAmerica Credit Union Members Save

Filing your taxes doesn't have to be taxing. As a Safeamerica Credit Union member, you now have more choices and more savings this tax season. We've partnered with TurboTax and H&R Block to help you file your way and get special member savings.

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The information in this article is for general educational purposes only and not intended to provide specific advice or recommendations. Please discuss your particular circumstances with an appropriate professional before taking action.

• By Kevin Alvarez

Identity Theft – Steps Victims Should Take

Consumer complaints about identity theft are rising from across the country followed by debt collection complaints and impostor scams. This is a sure sign that people need to continue to pay attention and closely monitor their monthly credit card statements, credit reports and credit scores.

It is important that consumers are aware of their ability to take advantage of accessing one free credit report per year from each of the three credit reporting bureaus. Logging on to www.annualcreditreport.com will provide steps in acquiring your free credit reports. You can read more about how to access your free annual credit report by reading our previous blog post titled:

"Credit Reports - How to Get Your Annual Credit Report"

Below are four steps consumers should take if they become a victim of identity theft. Click on each tab to learn more about the topic.

Fraud Alert(s)

Place a 'Fraud Alert' on your credit reports, and check your credit reports regularly through www.anualcreditreport.com. Fraud alerts can help prevent an identity thief from opening any more accounts in your name. Contact the toll-free fraud number of any of the three consumer reporting companies below or visit their websites. (Note: you only need to contact one of the three companies to place an alert on all three.)

Transunion: 1-800-680-7289; www.transunion.com

Equifax: 1-800-525-6285; www.equifax.com

Experian: 1-888-EXPERIAN (397-3742); www.experian.com

Closing Accounts

Close any accounts that you believe have been tampered with or opened fraudulently. Call and speak with someone in the security or fraud department of each company. Follow up in writing, and include copies (NOT originals) of supporting documents. Send your letters by certified mail, return receipt requested, so you can document what the company received and when. Keep a file of everything you send and a record of every conversation.

File a Complaint with the Federal Trade Commission

By visiting https://www.ftccomplaintassistant.gov/ or by calling the Federal Trade Commission's Identity Theft Hotline 1-877-ID-THEFT (438-4338); TTY: 1-866-653-4261.  Be sure to call the Hotline to update your complaint if you have any additional information or problems.

File a Police Report

File a police report in the community where the identity theft took place. Call and ask them if you need to file the report in person or if you can do it over the phone or on the internet.  When you file your report, bring or attach a copy of your FTC ID Theft Complaint form and any supporting documentation. Ask the officer to attach or incorporate the ID Theft Complaint into their police report. The FTC ID Theft Complaint, along with the police report, can constitute what is known as an ”Identity Theft Report.” This Identity Theft Report can be used to (1) permanently block fraudulent information from appearing on your credit report; (2) ensure that debts do not reappear on your credit report; (3) prevent a company from continuing to collect debts that result from identity theft; and (4) place an extended fraud alert on your credit report.

While not everyone may be a news junkie, it is important to identify trends and understand news article/segments in a manner to protect ourselves and loved ones to the best of our ability.

SafeAmerica Credit Union’s blogs are provided to inform our members of all things financial. With that being said, the recent spike of identity theft related crimes brought on by the pandemic, has resulted in more and more articles, reports and news segments informing people of what can be done to prevent themselves from becoming a victim of identity theft.

The latest Bay Area identity theft trend making the rounds, shows scammers posing as Comcast representatives convincing users their internet speed has slowed down and maintenance is required to “troubleshoot” the problem. The criminal process used to perform the “troubleshooting” is done by obtaining remote access to the victim’s computer. They do this with the victim’s permission after successfully gaining the victim’s trust. While “troubleshooting”, the scammer accesses the victim’s personal information and before the victim notices, their bank accounts have been compromised.

The Alameda Police Department has shared the following tips via Patch.com:

Alameda Police Department Tips

  • Be cautious of unsolicited calls and emails.
  • Be wary of callers who demand immediate action.
  • If you are uncertain of the call's validity, hang up and call the number listed on the company's verified website.
  • Educate potentially vulnerable loved ones on how to protect themselves.
  • Block unwanted calls and text messages.
  • Register with the Do Not Call Registry. Registered numbers should only receive calls from companies you do business with or that you permit to contact you.
  • Report fraudulent calls to the Do Not Call Registry. DoNotCall.gov or call 1-888-382-1222.
  • File a complaint with the FCC.
  • If you are the victim of a crime, file a report with local police.

 

SafeAmerica understands the level of security needed to stay secure while on the internet and during National Cyber Security Awareness Month, we want to help inform our members of the best practices for staying safe online and keeping sensitive information secure. Keep an eye out every week this month for new blog posts on the best practices during the time you spend online. Safe for surfing the web.

Sources:

Patch.com

Helpful links for Comcast Users:

Common Phone Scams and How to Protect Yourself

Comcast Resources for Fraud and Identity Theft Resolution

 

• By Lisa

Love to Give: Holiday Food Drive 2021

The Season of Giving

It’s no secret that People Helping People is an integral philosophy to our credit union. In 2021 we joined forces, once again, with The Alameda County Community Food Bank and the Food Bank of Contra Costa & Solano for our annual holiday food drive "Love To Give" to help those in need.

Love to Give logo

Your generous donations helped us raise $7,711!

Thank you to all our members and employees who contributed.  Your donations will go a long way in helping those in need in our communities.

There's still time to donate.  You can donate any time to either food bank.  Just click the links below to make your contribution.

Thank you!

Donate to Alameda County Community Food Bank
Donate to Food Bank of Contra Costa & Solano

We encourage you to help with our endeavors, and together we can continue to help our communities thrive.