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Learning Annex
Help Your Teen Driver Choose the Right Car
Parents can help teens get a good buy on their first vehicle by focusing on safety, affordability, and reliability.
Start Early
Start by helping teens understand the responsibilities tied to owning and operating a vehicle. Roughly six months to a year before the teen gets a license, begin sharing the cost of gasoline, insurance, and repairs. Set clear rules for teen drivers. Ask the teen to help care for the family vehicle.
Create an Agreement
When you're ready to buy, set clear guidelines by creating a written agreement that covers:
- Who pays for specific types of expenses, such as loan payments, insurance, or repairs.
- Rules for vehicle usage.
- How the teen's behavior affects driving privileges.
- What the consequences will be if the teen fails to live up to the agreement.
Safety First
Insist that teens shop for vehicles with at least three safety features:
- Air bags, including side impact air bags, which can reduce injuries in a crash.
- Antilock braking systems, which can provide directional control in emergency braking.
- Electronic stability control (ESC), which can help reduce rollover accidents.
Safety experts say teen drivers' best option is typically a used sedan with a four-cylinder engine.
Shop Together
Shop with your teens to teach them about dealer practices and negotiating a good deal. Issues to consider include:
- Is the dealer reliable? Check for complaints with the state attorney general's office or the Better Business Bureau.
- Is the vehicle in good shape? Have a mechanic inspect used vehicles. Another option is choosing used cars "certified" as meeting manufacturer standards.
- What is the bottom line? Add sales tax, title fees, and license fees to the sticker price.
Take Your Time
Both teens and parents can benefit from taking their time in making a first vehicle purchase. Remember, the longer the teen drives the family vehicle, the more time you'll have to reinforce expectations for good driving behaviors. In the end, that can save lives as well as money.
The professionals at Post Office Credit Union of Maryland, Inc. are ready to help with all your auto financing needs. Stop by or call today at (410) 727-5469.
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Locate Good Travel Deals in Today's Economy
Times are tough, but there still are good reasons to consider heading to a vacation destination. While finding good travel deals is a challenge, with a little research and flexibility, there are some good bargains to be found. That's because of the state of the travel industry. Thanks to slumping business travel, travel operators are doing more to lure consumers to fly and stay with them. Hotels especially are vulnerable as hotel inventory grows - properties planned several years ago and now built need to be filled.
Flexibility is key
In the current travel environment, if you're flexible, you'll do better. One example: In one week in early 2009 for 15 minutes a day, the Web site LastMinuteTravel.com sold rooms at more than 15,000 hotels around the world for $1 a night.
"There's no reason why you need to plan more than two or three weeks out to get a decent deal," says Tim Leffel, Nashville, Tenn. travel expert and author. "Sometimes waiting until the last minute will give you the best deal of all. It depends on supply and demand."
Searching for bargains
With the Internet making travel information available at your fingertips, you're in the driver's seat. "It's pretty easy to set things up to your preferences," says Leffel. "There's no need to spend hours surfing and trying to find things." Let notices come to you by signing up for e-mail newsletters from travel providers.
Cruises are becoming more popular because, in the current economy, consumers like a cruise vacation's all-inclusive fare. They know exactly what they'll pay.
In your own backyard
If you're planning to vacation closer to home, Leffel advises that you head to your local library for a state travel guide. "Often people think [libraries are] only useful if you're going far from home," he says. "But they have good information." You'll also find specific guides if you like to hike or bike, for example. State tourism Web sites can provide lots of vacation tips, too.
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Here are some Web sites that can help you set up a vacation deal:
You can register and receive e-mails tailored to your destinations: expedia.com, orbitz.com, and travelocity.com.
If you could use a loan to help get away from it all, call us at (410) 727-5469 today! |
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The New 'Good' FICO Score Jumped From 720 to 760
Before the credit crisis and subprime meltdown hit, you probably could get the best interest rates on a mortgage or loan with a credit score of 720 or more. But times have changed. The "new reality" of today's economy says a 760 credit score is the new 720.
Your credit score is one of the most important numbers in your financial life. A credit score is a three-digit number that shows credit card companies, auto lenders, mortgage lenders, and even some landlords and prospective employers a picture of your creditworthiness. The higher the credit score the better.
Now there's a new "high," and for some consumers, it may be tough to make the grade.
A FICO credit score - used by many lenders - ranges from 300 to 850. If you have a favorable debt-to-income ratio and a score between 650 and 850, it's likely you'll qualify for a home loan with no problems. But the best rates are now reserved for those near the top tier of that range.
To improve your credit score, use common sense and start with three simple changes:
- Pay on time. About one-third of your score is based on whether you make on-time payments to creditors. Late payments will come back to haunt you and can cost you tens of thousands of dollars in higher interest payments over the life of a mortgage.
- Pay down balances. Know your total line of credit, which is the top limit or ceiling amount you can charge without paying over-the-limit charges. Try not to charge more than 25% of that total line of credit. By keeping your utilization rate below 25%, you'll ensure that lenders likely will see you as a good credit risk.
- Don't cut up old cards. About 15% of your credit score is based on length of your credit history. Cancelling those cards cuts short your history of responsible credit usage, and it also increases your utilization rate when your total credit line drops.
Order your credit score from myfico.com or from annualcreditreport.com.
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Don't Get Suckered by Ponzi Promises
Despite the high-profile case in which Bernard Madoff bilked a spectacular $50 billion from investors, don't expect the curtain to close anytime soon on Ponzi schemes.
A down economy is a breeding ground for scam artists who prey on desperate investors. And, for many, these have been desperate times. So expect more mini-Madoffs to try to take advantage of battered investors and their shattered portfolios.
Ponzi schemes lure you with promises of unusually high returns - sometimes 40% to 80% a year - or a doubling of your money in, say, 90 days. The scam artist may pay you "returns" from your own money or from money paid by later investors, rather than from any actual profit earned. However, it's impossible for a Ponzi to survive; the earnings, if any, are less than the payments. Eventually, the Ponzi con artist runs out of investors, runs away with the money, or runs out of luck and is arrested for selling unregistered securities.
The first known widely publicized Ponzi operation was named after Charles Ponzi, who came to the U.S. from Italy in 1903. Ponzi took in large sums of money under false pretenses, diverted investors' money to make payments to earlier investors, and kept most of the money.
Be skeptical if anyone promises you unusually high, consistent returns on your investment. Check out investment advisers and brokers with the Securities and Exchange Commission at http://sec.gov/investor/brokers.htm. Protect yourself with tips, calculators, and resources by visiting http://finra.org/Investors/index.htm.
POCUMD wants you to be informed. Don't lose your hard-earned money to a Ponzi scheme or any other type of fraud. If the promise seems too good to be true, it probably is.
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Credit Unions Change Lives Worldwide
 As a member of Post Office Credit Union of Maryland, Inc., you know firsthand how credit unions benefit us here in the U.S., but did you know that credit unions help people all around the globe? The World Council of CreditUnions (WOCCU), Madison, Wis., reports more than 46,000 credit unions in 97 countries serve 172 million people.
WOCCU is a global trade association and development agency helping credit unions and other financial cooperatives provide people with high-quality, affordable financial services. Worldwide, credit unions give members life-changing opportunities for such ventures as starting small businesses, building family homes, and educating their children. In some countries, members encounter their first taste of democratic decision-making through their member-owned credit unions.
In Bolivia, 70% of people live below the poverty line, with extreme poverty focused in rural areas. Credit unions have expanded into these areas - where no other financial institutions exist - enabling residents to borrow small amounts of money at low interest rates. Such a micro loan might help a farmer buy seeds for planting. A credit union savings account would help him or her save the resulting income.
In many parts of the world, people survive on less than a dollar a day and lenders often charge interest of 100% or more. From Antigua to Zimbabwe, by offering "a hand up, not a handout," credit unions give hardworking families a chance to take their first steps out of poverty.
You don't have to make a trip around the world to get the help you need. Visit POCUMD today and you'll see the true spirit of people helping people.
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Ask for the Senior Discount
 Whether you're making trip reservations or ordering a meal, ask for the senior discount. You usually save at least 10%... And you don't always have to be 65!
Although you can join the AARP at age 50 for $12.50 a year, you don't need to join any organization to get the senior rate; just show proof of age. Requirements vary - some retailers set the minimum age at 55, others at 62. It's 62 for the National Park Service's $10 lifetime pass. Some businesses and organizations require you to be age 65.
Visit a variety of websites for discount specifics. Here are just a few:
Travel:
Lodging:
Restaurants and Retailers:
General:
With more baby boomers retiring, some discounts may be reduced or stop altogether, so grab them while you can!
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401(k) Loans - Weigh Your Options Carefully
 Times are rough and financially strapped families are increasingly borrowing from their 401(k) and similar retirement plans to make ends meet. While the 401(k) loans may offer low interest rates and a quick solution to immediate money troubles, they may not be the great deal they appear to be.
First, workers who borrow from their 401(k) accounts have to repay the loans through after-tax payroll deductions. That means that someone in the 28% tax bracket would have to earn more than $700 to clear enough, after taxes, to make a $500 loan payment. Additionally, the interest borrowers pay isn't tax-deductible, the way it is on a home equity loan or mortgage.
There also is the issue of lost growth potential while the retirement money is not invested.
Perhaps the biggest blow to borrowers' future financial security, say experts, is any reduction or suspension of retirement plan contributions while the loan is being repaid. That is a particularly big cost if the employer offers matching dollars on employee contributions.
Experts encourage financially strapped workers to consider other options before cracking open their nest eggs: Try to negotiate a payment plan with service providers. Cut expenses and increase income as much as possible. Perhaps look to family members, friends, local nonprofits, and other possible sources of a short-term loan.
At Post Office Credit Union of Maryland, Inc., our friendly staff can help you evaluate your alternatives. You may be able to restructure some existing debt to better manage your obligations. If you've run out of other options, weigh the projected long-term costs of a loan against the benefits before tapping your 401(k). If a loan will just delay the inevitable foreclosure or bankruptcy, then borrowing from your account could put you in the worst possible position: losing your home or filing bankruptcy now and having thousands of dollars less to live on in retirement.
Of course, the best way to avoid having to make the tough choice between present and future financial needs is to practice prevention. That includes self-insuring against a loss of income through an adequate emergency fund. Contact us for help determining how much of a cushion you need.
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Vacation Tips
Post Office Credit Union of Maryland offers a variety of services to help take the worry out of vacation travel.
Visa TravelMoney® Card
Visa TravelMoney® Card is a prepaid, re-loadable Visa debit card which offers travelers a safe alternative to travelers checks and cash. Visa TravelMoney® Card is accepted at millions of Visa debit merchants and Visa ATMs around the world. It is the new plastic Travelers Check!
Benefits of Visa TravelMoney® Card: 
- Pin and signature protected
- US dollar prepaid card that has POS, Interlink and ATM access
- Re-loadable: minimum $250, maximum $9,999
- Reload at Credit Union, online, or by telephone, even with an ACH transfer from your checking or savings account
- Two additional cards available
- Up to 24 month expiration
Payroll Deduction
Another way to limit your worries while away on vacation is to set up payroll deduction through Postal Ease to pay off your loan. Once it's been set up, you will never have to think about it or miss a payment. Save time, money for postage, and late fees by setting it up now. You will need Post Office Credit Union of MD's routing number and your account number. Our routing number is 252 076 578.
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$5 Bill and $1 Coin
Have you seen the new $5 bill issued in early 2008? The U.S. government redesigned the note as part of ongoing security enhancements to U.S. currency.
The Treasury has repeatedly told Congress the importance of changing the larger bills every seven to ten years. The last series of changes were made in 2004 when subtle background colors were added to the $20, $50, and $100 bills. In 2006 the new $10 note was released.
In addtion to the new $5 note, the U.S. Mint is issuing four presidential $1 coins per year, and each will have a reverse design featuring a striking rendition of the Statue of Liberty.
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New Grads, Buy Your First Car
College graduation is a rite of passage, and after years of studying, it's natural to want to reward yourself with a fun, new car... but you know that buying your dream car at age 22 might not be the wisest choice. How do you make a smart financial choice while driving away in something fun and satisfying?
Preliminary research is really important. The Internet is an excellent tool to use to educate yourself about everything from cost comparisons to insurance rates to safety ratings.
Figure out what kind of car best suits your needs. Will you be commuting? Do you need cargo space? Don't just think about what you want now, but think about what you'll need in the future.
Before you begin shopping, stop by Post Office Credit Union of Maryland, Inc. and get preapproved for financing to save you money over financing at the dealership.
The professionals at Post Office Credit Union of Maryland can also help you figure out how much car you can afford -- which includes the sales price plus sales tax, licensing, title, insurance, gas, and maintenance costs. Set a budget and stick to it.
Pick a few models that you're interested in and contact an insurance agent -- or hit the Web -- to find out what kind of rates you can expect to pay. Unfortunately, cars that interest many new graduates are often expensive to insure. Learn what you'll pay before you're locked into deal and then realize your insurance payment is just as much as -- or more than -- your monthly car payment.
Lots of graduates want a brand new car right after college, but for most people that's not a smart financial move. Car values depreciate a lot in the first few years of ownership. Buying a slightly used car allows someone else to absorb the cost of depreciation. Many used cars come with warranties similar to those of new cars, which makes them nearly as reliable as buying new.
If you choose to buy from a dealership, take your time and shop around. Don't be afraid to negotiate... it's all part of the process. It helps to take along someone who's already been through it. College students sometimes seem naïve and may be taken advantage of -- which is why research is so important. Don't lay all of your cards on the table right away and, if things don't feel right, don't be afraid to walk away.
Once you find a vehicle you like that meets all of your criteria, it's time to get to the paperwork. Make sure you understand everything about your contract before you sign anything. When something isn't clear, ask questions.
If you shop through classifieds or Internet sites, do some research on specific vehicles by getting a vehicle history report using the vehicle identification number (VIN) on Web sites such as carfax.com or autocheck.com. Take the car for a test drive, and have a trustworthy mechanic look at it to assess potential problems.
If you take the time to research, shop around, and balance your wants with your needs, you'll be happy with your car for a long time. Post Office Credit Union of Maryland can help put you in the driver's seat. Visit us today or call us at (410) 727-5469.
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Sharpen Pencils, Then Kick Tires
How much car can you afford? Here's how to find out:
- Check your budget
List all income; list fixed and variable expenses
Keep all monthly payments -- including your rent or mortgage -- to less than 40% of monthly take-home pay
- Check other personal finance goals
Are you saving for a down payment on a house? For a college education? Can you defer buying a car longer while you focus on those goals?
- Remember other car expenses
License, registration, insurance, gas, maintenance, and repair
- Factor in
Down payment, carmaker rebates, trade-in value, and how much you can afford to borrow
- Test-drive your car payment
Divert the amount of your expected car payment into your Credit Union savings toward your down payment. Try it for three to four months or more. See how tight the payment is with the rest of your obligations and goals.
Ask Post Office Credit Union of Maryland to help you run the numbers to see what monthly car payment suits your needs.
Image courtesy of Belva Dibert
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VantageScore Latest Addition to Menu of Credit Scores
Your credit score is in many cases the most influential factor in a lender's decision to grant you credit and at what rate. The higher the score, the less you'll pay for the use of someone else's money.
Today, companies actively market a variety of scores for consumers to buy. Now, with the introduction of yet another score for sale, understanding the various scoring models and how they differ is more important than ever.
To understand how you rate in a creditor's eyes, you have to know two things: what credit scoring model they use, and how you rank on that scale. The most widely used credit model is the FICO (named for the score's developer, Fair Isaac Corporation). You can buy your FICO score from all three major credit reporting companies through myFICO.com.
If you buy your FICO score from more than one credit bureau, you might be surprised to see a different number on each one. The discrepancy occurs because the data in your files at the three credit bureaus may vary somewhat.
In addition to selling the FICO score, credit reporting agencies, other credit score developers, and lenders may promote their own proprietary score. These and other non-FICO scores tend to vary even more widely from source to source because, in addition to there being differences in the underlying data, each provider also uses a different scoring formula and scale.
In March 2006, the three major credit bureaus introduced yet another credit score. VantageScore, their jointly developed scoring system, overcomes the issue of multiple formulas among the three bureaus and is based more on an academic - A, B, C - grading scale, but does not resolve the issue of inconsistent credit file data among the bureaus.
You can buy your VantageScore for $5.95 from Experian (vantagescore.experian.com).
So how important is it that you know your new VantageScore?
"Until [VantageScore] is adopted by the industry, I can't see it being really relevant to consumers," says Rick Harper, director of housing for CCCS of San Francisco. Harper explains that credit scores are relevant only in how they are used by a lender to evaluate your creditworthiness. Given how entrenched FICO scores are in the credit industry, a large-scale move to VantageScore or any other scoring system wouldn't happen quickly.
Still, Harper says it's a good idea for consumers to understand that there are many different scores out there. Since each score is based on a different scale, where a B grade on one scale might be an A on another, it's quite easy to see how someone could misjudge his or her own creditworthiness. Knowledgeable credit users are better prepared to avoid the confusion that consumer advocates say can lead to overpaying for credit by hundreds or even many thousands of dollars over the life of a loan.
Linda Sherry of San Francisco-based Consumer Action says it's very important that consumers find out exactly which score they've purchased or been given (applicants for a mortgage or home equity loan receive their score free from the lender) and where they rank on its scale. While each lender has different underwriting standards, this provides an idea of what you can expect to be offered within the range of rates and terms.
While it's too soon to know if VantageScore will one day give FICO competition, it's never too early to understand how you're being evaluated and how you rate.
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Four Strategies to Bring Out the Millionaire in Everyone
What do you think your chances are of becoming a millionaire? Two surveys released in January 2006 reveal that financial planners have more faith in your ability to accumulate personal wealth than you do.
Here are some proven wealth-building strategies that have helped create many millionaires and that almost any motivated individual can master:
- Believe you can build wealth
Researchers found that income differences alone had little to do with disparities in wealth. Observing that some of the lowest-earning households in the study had managed to accumulate significant wealth, the researchers concluded that most of the disparity was a result of how much the households chose to save.
For example, consider the story of Genesio Morlacci, the former dry-cleaning shop owner and part-time janitor who amassed enough wealth to leave $2.3 million to a small college in Montana.
People who build wealth are optimistic about their ability to achieve their financial goals in spite of an average income or other apparent limits.
- Live the millionaire lifestyle
Think you can't afford to live like a millionaire? The reality is that you can't afford not to live like one.
The wealthy typically live comfortable, but not extravagant lives. They believe that financial independence is more important than displaying high social status. They consistently spend less than they earn.
Living modestly when everyone around you is buying the latest, most expensive toys and gadgets presents a challenge for many consumers. However, as those who have achieved financial independence know, wealth is what you accumulate, not what you spend.
Regardless of your current net worth, your financial picture can improve only if you spend less and save more -- just like a millionaire.
- Actively manage your money
Studies show that households that put a couple of hours a week into planning and managing their finances have a much greater chance of accumulating wealth and achieving their financial goals.
Rather than constantly checking stock prices, use your money management hours doing such things as researching and learning how to invest, learning about the tax system, calculating your net worth, tracking your expenses, designing a budget, and writing down your financial goals.
- Think like an investor, not just a saver
In order to build the kind of wealth that gives you independence and security, you have to be an investor, putting your savings into things that become more valuable over time, such as securities (stocks and bonds) and real estate.
You might be surprised to learn that investing success is within reach of even newcomers to the market. People who make money in the stock market buy and hold a diversified portfolio, which you can easily achieve through a good mutual fund having minimal expenses. Some index funds that track the entire U.S. stock market - they hold shares of thousands of stocks - have returned 9% to 10% a year over the long term.
Regardless of where you put your savings, your long-term investment strategy should be to achieve adequate growth so that, ultimately, you can live on the income your fortune produces and never have to dip into the principal.
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Common Credit Report Mistakes Could Cost You
If you haven't requested a copy of your credit report, there are many reasons why you should.
A 2004 study by the National Association of State Public Interest Research Groups revealed that almost 79% of all credit reports contain some type of error. One-fourth of credit reports contain such serious errors that those individuals could be denied credit.
What are the common errors?
- Misspelled names
- Wrong Social Security numbers
- Inaccurate birth dates
- Inaccurate information about a spouse
- Out-of-date address
- "Closed" accounts listed as "open"
- The same mortgage or loan listed twice
- Absence of major credit, loan, mortgage, or other accounts that could be used to demonstrate creditworthiness
 How can these errors happen?
Most mistakes can be pinned to creditors who provide inaccurate information to credit bureaus. Mistakes happen when credit accounts change hands. Other mistakes simply are human error. One report found that some banks admit to not providing credit bureaus with complete information about their customers. Some errors are the result of thieves stealing your personal information and establishing fraudulent accounts in your name.
Why should you care?
Lenders use credit reports to determine the interest rates on loans; the more creditworthy you appear on paper, the lower the rate you pay. Errors may cause you to pay more. In some cases, you even could pay a higher premium for auto and homeowners insurance, because insurance companies have found that people with poor credit histories tend to file more claims. Many people are surprised to learn that a potential employer turned them down for a job because of negative information on their credit report. Federal law, however, requires that the employer get your permission before pulling your report.
How much does a credit report cost?
A new federal law requires each of the "big three" credit reporting agencies - Experian, Equifax, and TransUnion - provide consumers with one free credit report per year. Go to annualcreditreport.com, or call 877-322-8228. If you want your credit score, a three-digit assessment of your creditworthiness, you'll pay $7 to $9.
What if you find an error?
Write a letter to the credit bureau, which is obligated by law to contact the creditor who supplied the disputed information. The credit bureau must respond to you within 30 days. If you're not satisfied with how the dispute is settled, ask that a brief written explanation be added to the bottom of your credit report.
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How to Increase Your Credit Score
- Build a long history of on-time payments.
- Do not max out your credit lines. It is better to use part of your available credit on a few accounts than all of your available credit on just one account.
- Do not open or close accounts as a strategy to raise your score. However, if you have more open accounts than you want, close newer credit accounts rather than ones you have had for a while.
- Pay off revolving debt rather than just shifting it from card to card.
- When shopping for a loan, for example, submit your applications within a limited time. If you are shopping for a car loan, for example, and visit five dealers in three weeks, those five inquiries on your credit report will count as one inquiry to a potential lender looking at your report.
- Check your three credit reports free once each year (one every four months) through annualcreditreport.com, or 877-322-8228, and contact the creditor and the credit bureau to correct any errors.
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Protect Your Plastic Cards Against Fraud
Plastic card fraud statistics are up, and much of the fraud comes from criminal activities we can't control. Safeguarding your cards -- and identity -- from the risk of exposure starts with keeping constant control of your cards, card numbers, and any other information about your financial information.
"Paperless" cash is convenient, accepted almost everywhere, and, in proportion to the volume in use, very safe... but with convenience comes risk.
At Post Office Credit Union of Maryland, Inc., we're proud of the measures we take to help protect your cards, but we all need to be responsible and aware of actions that will minimize risk and keep our cards safe.
Make good habits and stop bad ones to minimize your card risk. Providing your personal and financial information to anyone can lead to ID theft and phishing attacks. Know with whom you're dealing. For more information about these exposures, contact Post Office Credit Union of Maryland today at (410) 727-5469.
When it comes to card safety, if you don't practice good habits, you'll pay. The good news is, practicing good habits goes a long way to keeping you and your cards safe.
Good Habits:
- Sign your cards with permanent ink as soon as you receive them;
- If your card has a PIN (personal identification number), memorize it. Skip easily recognizable PINs such as the last four digits of your Social Security number;
- Delete urgent e-mails requesting personal information. This is commonly known as phishing. Phishers use authentic-looking e-mail to lure people into fake Web sites to obtain personal information and commit ID theft;
- Only put necessary information - name, address - on checks;
- Carry only cards you're going to use. Leave all other cards at home;
- Watch the merchant perform your card authorization;
- Make sure purchases are recorded properly before signing the receipt;
- Review card transactions carefully when you receive your statement;
- Shred receipts and statements unless you need them for proof of purchase, warranty authorization, or tax purposes;
- If you have online access to your statement, review the account daily;
- Routinely check your credit report for errors and unauthorized accounts. Each major credit bureau must provide one free credit report annually to consumers requesting a copy: annualcreditreport.com, 877-322-8228;
- Before traveling, notify your card issuer of the location and time frame to account for changes in your card use ("out of pattern" purchases);
- Put a hold on your mail out of town, or arrange for a trusted friend to collect them;
- Make sure online shopping sites show a padlock in the bottom browser window frame - outside the vendor Web site window;
- Follow news about fraud as it evolves with technology. Those changes can affect you;
- When performing a transaction, check out the environment for safety;
- When using an ATM, shield the screen and keypad with your body to prevent others from seeing your PIN;
- Inspect the ATM to identify any tampering. Crooks install devices to capture your information - commonly known as skimming;
- Be cautious of someone contacting you - in the guise of financial institution employees - advising you of unusual activity. Call your financial institution, at a number you'll find on your statement, for verification;
- Report a lost card to your card issuer immediately;
- Report card fraud to the authorities. If a suspect is identified, press charges.
 Bad Habits:
- Leaving your cards unsigned;
- Disclosing your PIN to anyone - including to someone who claims to represent the card issuer or financial institution - who telephones or emails you;
- Writing your PIN on your cards, or anywhere else;
- Responding to any type of e-mail request asking for your personal or financial information. The people at Post Office Credit Union of Maryland, Inc. would never ask you for this - they already have it on file;
- Responding to an incoming telephone request asking for your personal or financial information;
- Allowing your card to be out of your sight or allowing cashiers or anyone else to enter your PIN for you, even if they are helping you with the transaction;
- Writing your card information on any paper check;
- Allowing a sales clerk to write your card number on a personal check as identification;
- Lending your cards to anyone or leaving them unsecured and unattended anywhere, including your car (even if locked) or at work;
- Signing receipts without checking that transactions are recorded properly;
- Throwing receipts in trash cans or leaving them where others can get to them;
- Letting your mail pile up in your mailbox when you are traveling;
- Traveling with just one card. If one is tainted by fraud, you will need a backup;
- Counting your money at the ATM.
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Saving Practices Made Easy
 It's easy to postpone starting to save for a later day, but a solid plan is key to success. By following some basic guidelines, you're more likely to achieve financial security.
- Pay yourself first
Use automated transfers to get in the habit of saving. Money will be transferred from your account without you seeing it, which makes you less likely to miss it. Simply complete a form authorizing Post Office Credit Union of Maryland to receive a portion of every paycheck and deposit it directly into your savings account.
- Save 10% of your paycheck
The general rule of thumb is to save about 10% of each paycheck. If that seems too high, try 5% and work your way up to saving 10% of your earnings. Add 1% every year you get a raise until you reach 10%.
- Know yourself
Examine your goals to determine which savings plan will work best for you. For example, don't invest all your money in an aggressive stock or mutual fund if you're conservative with your money. If you're saving for retirement, select a plan that will fit your financial needs down the road.
- Realize that age matters
Always take into consideration how much time you have to save for your goal. If you are a recent college graduate, you have several decades to ride out the highs and lows of the market and can take advantage of more high-risk investments. If you're only a few years from retirement, you might not have the time cushion to afford to be too aggressive.
- See the benefit of compound interest
The simplest way you can invest your money it to leave it alone and let it "compound" over time. You earn interest not only on what you save, but also on the dividends generated. The earlier and more you save, the more your money will grow.
- Use dollar-cost averaging
This is the process of routinely investing a set amount of money over time, rather than all in one lump sum. It's a convenient savings method, particularly for beginning investors. For example, each month transfer $25 or $50 from your share draft account directly into an investment vehicle such as a traditional or Roth IRA. You reduce your overall risk from market fluctuations because your money buys more shares when the price of a share is down, and your money buys fewer shares when the price of a share is up. Bottom line: You've reduced your investment risk.
- Use the Rule of 72
To figure out how long it will take for your investment to double with compound interest, use this rule: Divide 72 by the interest rate you expect to receive on an investment. For example, if your investment earns 4% interest, your money will double in 18 years (72 divided by 4 is 18).
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 Post Office Credit Union of Maryland, Inc. is privately insured by American Share Insurance 
up to $250,000 per account.
This institution is not federally insured, and if the institution fails, the Federal Government does not guarantee that
depositors will get back their money. Accounts with this institution are not insured by any state government.
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