Wednesday, January 29, 2014

Millennials Must Become Savvy Money Managers

The focus for many U.S. industries and companies has shifted toward Millennial (or "Gen Y") consumers -- those born between 1980-1995. Millennials are perceived to be the up-and-coming decision-makers, thought leaders and, from a marketing standpoint, money spenders.

This is both positive and negative for Gen Y'ers. Certainly, with the focus on this segment of the population, Millennials should get first dibs on new technology, new products/services and political opportunities. Gen Y consumers should be poised to take the reins from their Baby Boomer parents as leaders of the next generation. However, statistics show that Millennials may just be the first generation of Americans who will struggle more financially than the prior generation. Jobs are not as abundant. Student loan debt is massive. More college graduates than ever must move back in with their folks and accept positions that workers with a high school education can easily attain.

It is critical that Millennials learn and adhere to sharp money management skills that will help to prepare them to budget their money, save for their future and weather financial storms that may arise.


A recent study illustrates this point:



Student loans are available to a high percentage of collegians. Due to the soaring cost of a college education, more students than ever are graduating with a diploma in one hand and a giant "IOU" slip in the other. This study reveals that 51% of Millennials do not save any money.  That is a problem.  When asked why not:


  • 87% simply do not have enough money to save.
  • 81% want to pay down their debt before they start to save.

With fewer grads finding employment with adequate income, it then goes to reason that the dream of home ownership is not realistic for a high percentage of Gen Y consumers. The New York Times studied this trend. The graph below illustrates the newspaper's findings:


Now, do not look at the future as all doom and gloom. Instead, look at these studies as a wake-up call -- one that drives home the need to be much more fiscally savvy and prudent. Look for tools that will help you to better manage your money, budget and save for big-ticket items and set a plan for your future. AltaOne's Budget Pro personal financial manager is a free program that does all this -- and more.

Of course, it is not enough to set up your personal financial management tools. You must stick with it. Force yourself to make personal financial management a habit, just like paying your bills on time. Take that extra five minutes per week to make sure you are utilizing your PFM program and working toward those short- and long-term financial goals.


The bottom line -- if you are fortunate enough to land a good-paying position right out of college, or you if are struggling to find your career, it is vital that strict money management is a high priority for Gen Y consumers.
Read More

Thursday, January 23, 2014

Business Facts...Believe it or Not!

Check out these fun facts about some of the world's most famous business brands:

For the Extremely Voracious Reader

When a Wal-Mart store closes its doors for good, it often sits empty -- a massive echoing enclosure the size of over two football fields. In McAllen, Texas, one empty Wal-Mart store transformed into an extremely useful enterprise - the largest library in the U.S. Wonder if they offer free food samples.



The Very "Chew"sy Entrepreneur

William Wrigley Jr., the founder of the famous chewing gum company, did not set out to build one of the world's biggest gum brands. In fact, Wrigley first took over his father's soap business in the late 19th century. When he moved to Chicago, Wrigley tried to bolster the soap biz by offering a free box of baking soda. The baking soda proved more popular than the soap, so Wrigley switched gears and turned the company into a baking soda firm. Then, to spark baking soda sales, Wrigley offered packs of bubble gum with each baking soda purchase. The gum became a hotter item than the baking soda, and Wrigley decided to sell chewing gum full-time — and he made a considerable mint.


The Name Game

What is in a name? You will often find some interesting trivia, if you research the name origins of many world-famous brands:

  1. The convenience store "7-11" was originally called "U Tote'm." The name changed in 1947 when the hours of operation expanded to 7:00 a.m. to 11:00 p.m.
  2. The electronics company "Sharp" initially got its name from its first product: the ever-sharp pencil.
  3. The soft drink "Pepsi" took its name from digestive enzyme "pepsin."

Business Tid-Bits

And finally, how 'bout some rapid-fire business trivia?

  • The original name of search engine giant "Yahoo!" was "Jerry's Guide to the Worldwide Web." We think Yahoo! is a little more recognizable. 
  • Warner Channel Music owns the rights to the song "Happy Birthday" -- and they sing that song all the way to the bank (or credit union), to the tune of about $1 million a year in royalties.
  • The person who designed the famous Nike swoosh received a mere $35 for the artwork.
  • In 1987, American Airlines carved $40,000 from its bottom line by eliminating one olive from each salad served in first class. 
  • It takes six months to build one Rolls Royce. It takes 13 hours to build a Toyota.

Feel free to use these amusing business facts to impress your co-workers and friends.
Read More

Thursday, January 16, 2014

Guard Your Credit Card!


You may have read some news recently about problems with a major department store and a security breach with its credit card data. If you want to avoid being the "target" of a credit card data theft, you may want to pay attention to the scroll of helpful hints below:
  1. Believe it or not ... More credit cards thefts occur in the workplace than any other location. It is not wise to leave your credit cards unattended -- even in the office.
  2. Keep your PIN or security code hidden at all times. Memorize the PIN or keep it stored in a place (such as your cell phone) this is invisible to anyone else.
  3. Never leave credit cards in a car. This is a very tempting target for thieves.
  4. Check to see that the card is correct when the cashier hands it back to you. A busy cashier may mistakenly switch cards.
  5. Always keep your credit cards on you when traveling.
  6. A high percentage of credit card fraud charges occur within a couple days after a card is lost, so report a lost or stolen card ASAP.
  7. Slice up and trash old and unwanted cards immediately.
  8. Sign the back of your new card immediately.
  9. Keep a list of all credit cards and the numbers. You will need to refer to the list if your wallet or purse is lost and you need to replace all your cards.
  10. Carefully review your monthly credit card statements and check for improper charges. If you find potentially false charges, contact the card company as quickly as possible.
  11. Avoid divulging your credit card number over the phone to anyone, unless you are 100 percent confident the company is reputable.
  12. Many consumers make online purchases. Check to see the website is secure before you provide credit card information.
  13. Be wary of multi-swipes. Sometimes a charge may go through twice if the cashier runs the card through more than once.
  14. Do not provide your credit card number while on your cell phone -- especially when you are in earshot of others who can potentially listen to your information.
  15. A safer alternative for online purchases are pre-paid credit cards, where funds are loaded onto the card in advance. If these cards are stolen, you are only on the hook for the amount of money you added to the card.
Hopefully, we will not see many more major credit card breaches. Meanwhile, be cautious and adhere to these and other rules to protect your credit card data.
Read More

Tuesday, January 7, 2014

The Top 5 Benefits of Owning a Credit Card


Credit cards are often misunderstood. True, some users accumulate excessive debt with their plastic, their useful benefits generally outweigh the risks for responsible spenders. Many credit card benefits -- theft protection, travel assistance and credit building -- may be inconspicuous to the average consumer, even those who have used their cards for years. Check out the top five ways in which credit cards can make your life easier.

1 - Ability to build credit
Chances are you will need to borrow money at some point in your life. After all, even if your parents paid your college tuition, you will eventually purchase or rent a home, both of which require good credit. Chances are good you will borrow again to purchase a vehicle or possibly to get out of a financial jam. By establishing a consistent credit card payment record, you will build credit and thus receive lower interest rates thanks to a good credit score. 

2 - Rewards
Some credit cards offer rewards just for making purchases. These may include rewards programs that offer access to special discount shopping portals, as well as reward points for everyday purchases. Using your credit card to pay for groceries, meals and other items can be a great way to rack up tons of points to help you save for that big trip or major purchase.

3 - Roadside assistance
Many major credit card companies offer travel and emergency assistance programs. This benefit is standard on many popular cards, including some of AltaOne's Visa cards.

4 - Travel assistance
Travel assistance is standard on many cards and can be a lifesaver (maybe literally) if you’re more than 100 miles from home. Features may include emergency cash transfers, lost luggage assistance, trip planning and referrals to a consulate or embassy.
Of course, you hope to never need to use most of these benefits, but it’s nice to know they’re available.

5 - Purchase protection
Another lesser-known credit card benefit is purchase protection, where the provider reimburses the user for the cost of a purchase when broken/stolen within 90 days of its purchase. This is especially advantageous when it comes to more major purchases.

The takeaway
While credit cards often get a bad rap, there are plenty of legitimate reasons to own one. The most important is to build credit, since doing so will help you meet your financial goals by improving your ability to borrow for a home, tuition or any other major expense in the future.
You can also earn generous rewards on purchases, and you can enjoy peace of mind while commuting or traveling with roadside and travel assistance. Worldwide ATM access is a darn good perk, as well.

Talk to your credit union representative to learn more about the advantages that appeal to you. Then, remember to spend responsibly and you’ll be on your way toward cashing in on these perks for free!
Read More