PENDING. A Penny Saved Is a Penny Earned How to Cut Costs On Everyday Expenses

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1 EducationFirst Federal Credit Union September 2013 A Penny Saved Is a Penny Earned How to Cut Costs On Everyday Expenses Saving money starts with small everyday actions. Don t underestimate the cost-saving benefits of couponing. Buy in bulk to save money on everyday food items. From groceries to gas, the basics are getting more and more expensive. That s why it is important to save money where you can, now more than ever. The following are some quick tips on how to cut everyday expenses. Start couponing. Don t underestimate the cost-saving benefits of couponing. Though the savings provided may only be a few cents, it can add up to be a lot in the long run. Take a few minutes before you run to the store and check out the local coupons available both in newspapers and online. Better yet, make time for couponing on a weekly basis and watch your savings grow. Buy used. For everything from clothes to kitchen utensils, thrift stores are definitely worth a look. While it may take a little more time to find exactly what you re looking for, you ll save money and have the comfort of knowing you re helping our environment at the same time. Buy in bulk. Buying in bulk from warehouse stores can help you save money on everyday food items. If you re worried that the bulk amounts will be too much for you, try splitting the goods (and the bill) with family or friends for an even lower price. Look for discount days. Certain places, like grocery stores or movie theaters, may have certain days of the week or month when prices are discounted. For example, grocery stores may offer double coupon rewards to seniors who go grocery shopping on specific days and times. Look in your local newspaper and online to see if any stores near you have such days. Maintain to save. Keep your car in tip-top shape to help cut your gas expenses. Paying special attention to your engine and making sure your tires are properly inflated can help you get more miles out of a tank. Make the most of low rates. Mortgage rates are at historic lows, so if you are considering refinancing, the time has never been better. With a lower interest rate your monthly payments could decrease, so contact a mortgage representative at EducationFirst today. Use online bill pay. Sign up for online bill pay at EducationFirst. Opting in to online bill pay will not only save you money on postage, it can ensure that your bills are paid on time and could prevent you from incurring late fees. Think Small to Save Big Saving money starts with small everyday actions. Though cutting coupons or buying in bulk may not seem to save you a lot of money, remember that a penny saved is a penny earned. And when you save a lot of pennies, you can start saving big. PENDING

2 CEO Message Relationships are at the heart of your credit union s business. At EducationFirst, we know that sound, long-term relationships are built by earning client trust every day. The strength of EducationFirst is built on a solid foundation of the durable, mutually beneficial connections we have with our members. It s what pushes us to continually provide better products, better service and better insights. It s what keeps us constantly in tune with your financial well-being. And it s what motivates us to discover new and innovative ways to help you meet your financial needs and serve you better. We have nine locations to serve your financial needs. In this issue, we are spotlighting our Beaumont offices. We have three locations in Beaumont to serve your needs. Our office at 3831 Phelan is open Saturdays from 9 a.m. to 1 p.m. We recently moved to this larger facility to serve your needs. Our Lamar branch is located at 4695 Rolfe Christopher across from Lamar University and our Main office is located at 6885 Eastex Freeway. Come by and get to know our staff. Saturday, May 11, will be our annual Shred Day. We will have a mobile shredding truck on-site at our Rosedale Branch, 6885 Eastex Freeway from 9 a.m. to noon. Bring your tax returns, statements or other documents to be shredded for FREE. Jimmy Lackey President and CEO PENDING Thanks to prudent management and responsible lending practices, EducationFirst is in a strong financial position to continue serving the needs of our members for years to come. Assets...$311,231,702 Capital... $33,165,109 Members... 32,810 As of Feb. 28,

3 Tips to Manage Your 1 st Credit Card The lower the APR, the less you ll pay in interest on your card. Rewards can often be a fun part of owning a credit card. Create a reminder in your calendar to help you remember to pay on time. Thinking about getting your first credit card? Follow these tips to make your first credit experience a step toward a strong financial future. Choose your first card wisely. All credit cards are not created equal. It s important to know your card s three key terms: APR, fees and rewards. APR stands for annual percentage rate, and it tells you how much interest you ll be charged for the balance you carry from month-to-month. The lower the APR, the less you ll pay in interest on your card. Some cards have fees such as annual fees, late fees and cash advance fees. Look for a card that has no annual fee, or a low annual fee, and pay attention to other fees before using your card. The last term to know is rewards. Rewards can often be a fun part of owning a credit card. Some cards offer cash back or other incentives for using them. Often rewards have limits or expiration dates, so look at the terms carefully when choosing a card. Once you have chosen your card, it s time to start using it the right way. Pay your bill on time every month. Not only do many cards charge a late fee if you miss a payment deadline, but it will also damage your credit history. Create a reminder in your calendar to help you remember to pay on time. Pay more than the minimum balance. While it may be tempting to pay only the minimum balance on your card, doing so will extend the time it takes to pay off any balance. That means you ll be paying more in interest than if you made a larger payment sooner. Limit your monthly spending. Spending to your card s limit can be dangerous and may hurt your credit history. A good rule is to keep your monthly spending at less than 30% of the card s limit to show creditors that you can use credit responsibly. Are you ready for the financial responsibility of your first credit card? EducationFirst offers low-rate credit cards to get you started on the path to a strong credit history. To apply, visit or call or Spending to your card s limit can be dangerous and may hurt your credit history. Get a Great Deal on a Used Car You ll want to be thorough in your research of a used vehicle in order to avoid costly surprises. Learn as much as you can about past owners, use and maintenance. Have the vehicle inspected by a professional mechanic. If you re in the market for a car, you might want to consider one that s new to you, but not brand new. Buying a 2- or 3-year-old vehicle may be more affordable than buying off the showroom floor in the long run.* Ownership costs such as insurance and taxes are generally lower than those for a new car. It pays to be cautious, though. Used vehicles may not come with a warranty and their condition largely depends on how they were driven and maintained by previous owners. You ll want to be thorough in your research of a used vehicle in order to avoid costly surprises. Find the One That s Right for You Answering a few questions will help you narrow your search until you find the right vehicle for you. What do you need? Make a list of features you consider necessities and a separate list of items you would like to have. These might include good MPG, ample cargo space, safety, sunroof, reliability, high resale value, etc. What s the best value? Kelley Blue Book ( allows you to do side-by-side comparisons of different makes and models. What s the vehicle s history? Learn as much as you can about past owners, use and maintenance. Use the vehicle identification number (VIN) to investigate whether the car has been damaged in a flood or a crash. Carfax ( offers vehicle history reports. You can also check the National Motor Vehicle Title Information System ( Will a qualified mechanic sign off on it? Have the vehicle inspected by a professional mechanic. Be sure the mechanic checks the vehicle s frame, tires, airbags, undercarriage and engine. Does it fit comfortably into your budget? An auto loan from EducationFirst can help get you in the driver s seat of the vehicle you choose. Our competitive interest rates and loans in a variety of terms can make buying your new wheels affordable. Call or , or visit us at to apply today. * Source: 3

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5 What Could a Financial Plan Do for You? Financial planning should be tailored to your individual circumstances and concerns. The idea is to plan financially for life events. A comprehensive plan recognizes that you have finite resources. The financial outlook of many Americans is still reeling from the effects of the Great Recession. But a recent survey found that a key differentiator that separates some people s financial circumstances from others has nothing to do with the economic slump. The survey indicates that financial planning can play a critical role in meeting financial goals.* Furthermore, that s true at all income levels. The survey reveals that, regardless of income, people who plan: Feel more confident about their financial decision-making. Manage to save more money. Feel better about their progress to date in saving for financial goals. Are more likely to report that they live comfortably. The survey asked about financial planning in six areas: 1) saving for emergencies, 2) for retirement, 3) for a major purchase, 4) for a child s college education, 5) for a down payment on a house and 6) to help a parent or older relative with living or medical expenses. Create a Comprehensive Plan Financial planning should be tailored to your individual circumstances and concerns, but in general, a comprehensive plan may cover savings and investments, taxes, debt management, planning for retirement, insurance needs and estate planning. The idea is to plan financially for life events such as buying a new car or home, sending children to college, retiring and passing along an estate. It also includes planning for the unexpected through adequate insurance coverage. A comprehensive plan recognizes that you have finite resources and helps you allocate them among your competing goals in a manner that s in line with your values. It also ensures that your assets are protected so that all your efforts aren t undone by something that you didn t anticipate. Protection may include any or all of these insurance policies: life, disability, long-term care, property and casualty. Finally, a comprehensive plan should include at least some basic estate planning so that you have plans in place in case you become unable to manage your own affairs and to see that your wishes for your estate are carried out after your passing. You Don t Have to Do it Alone With today s busy lifestyles and sophisticated financial products, many people feel they lack the time and knowledge to adequately plan their financial lives. If you re among that group, the experience and expertise of a financial professional may be just what you need. An investment professional at EducationFirst can help you get started. Call or , or visit today * Source: 2012 Household Financial Planning Survey prepared for Certified Financial Planner Board of Standards and the Consumer Federation of America, July 23, 2012, Investment products: Not federally insured. Not a deposit of this financial institution. May lose value. 5

6 P.O. Box Beaumont, TX FOLLOW US Facebook.com/BankSmart Twitter.com/BankSmart Call us 24/7 at or inside 1 Pending 2 CEO Message 3 Tips to Manage Your 1 st Credit Card 3 Get a Great Deal on a Used Car 4 Are You Ready to Buy a Home? 5 What Could a Financial Plan Do for You? 6 $100 Bill Gets a New Look Free EducationFirst App Call for details. $100 Bill Gets a New Look This October, a new $100 bill begins circulating. It will be more colorful. These improved high-tech features are more difficult for counterfeiters to replicate. This October, a new $100 bill begins circulating. It will be more colorful and more secure thanks to a blue, 3-D security ribbon on the front of the note that shifts patterns when the bill is tilted back and forth and side to side. Images of an inkwell and bell, and the number 100 on the front right-hand corner will also change color from copper to green when the note is tilted. These improved high-tech features make it easier for the public to know if a bill is the real thing, as they are more difficult for counterfeiters to replicate. Other design enhancements include a portrait watermark, raised printing and new background color. To learn more about the new $100 note, visit These improved high-tech features make it easier for the public to know if a bill is the real thing, as they are more difficult for counterfeiters to replicate. This publication does not constitute legal, accounting or other professional advice. Although it is intended to be accurate, neither the publisher nor any other party assumes liability for loss or damage due to reliance on this material. Websites not belonging to this organization are provided for information only. No endorsement is implied. Images may be from one or more of these sources: Thinkstock, istock, Fotolia BlueSpire Strategic Marketing bluespiremarketing.com