Financial Planning Opportunities For People of All Incomes

“Managing my money gives me a sense of pride”

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This handbook is filled with information about financial education and opportunities to create a

savings or checking account. You can also find contact information for ordering your credit reports and debt management assistance. The handbook is organized by major topic with specific contact information below each topic heading. All phone numbers, addresses, names and websites are accurate as of February 1, 2012.

Being informed about your money and committed to a savings plan is the first step towards

your financial success. Whether you have always kept to a tight budget or you are just starting out, congratulations on taking charge of your future. Everyone can begin with a few simple steps for saving and spending:

•Makemoney• Don’tspenditall• Payoffdebts• Startsavingassoonasyoupayoffdebts

U.S.SecuritiesandExchangeCommission,2007

Keeping track of your money can be easier when you have information to help you begin to make plans

for your money. Financial education can encourage you to be honest about your budget, set goals for spending plans and save more money. Whether you want to get out of debt, open a new checking account, create and stick to a budget or create a spending plan for future dreams you can begin with tips and tools to help with your personal needs.

Financial Literacy/Education

9 Web-Based Education 9 Coaching/Counseling/Classes 9 CreditReports/DebtCounseling 9 FreeTaxAssistance 9 HelpwithTaxProblems&Issues 9 Knowing Your Banking Options

“I need information on money management that is realistic for someone who is working, but not earning a lot. Someone like me.”ConsumerFocusGroup

MultnomahCountyCCFC

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Smart Saving•TheSmartSavingwebsiteisMultnomahCountyLibrary’shubforpersonalfinanceinformation,withlinks to on-line education and resources on many money management topics. Visit www.multcolib.org/smartsaving

• FromtheSmartSavingpage,youcanalsoexplorebooks,DVDs,andotherlibraryresourcesaboutfinancialtopics

• Freecommunityprogramsareofferedatlibrarybranches—seetheeventslinkontheSmartSavingsite, or visit www.multcolib.org/Events.

Facebook and Twitter

360 Degrees of Financial Literacy •ThiswebsiteissponsoredbytheAmericanInstituteofCertifiedPublicAccountants.Ithas33differentcalculatortoolsthatprovideinformationon calculating car or mortgage loans, saving for retirement, and financing higher education

•Thesiteprovidesdetailedinformationonfinancialplanningforpeopleindifferentlifestages:Youngfamilies, student years, mid-life workers, retirement planning, and so forth

• Visitwww.360financialliteracy.org Facebook and Twitter

AARP• Offerstipsandstrategiesforsuccessfulsavings,

money management, addressing debt, and avoiding credit card fraud

• Providesupdatesontaxlawchangesandadviceondifferentissuesrelatedtotaxes

• AARP’sTaxAideProgramprovidesface-to-facetaxassistance and preparation. The site can also help consumerslocatefreetaxpreparationsites

• www.aarp.org – choose Money topic Facebook and Twitter

America Saves• Providessavingsstrategiesandresourcesthatprovide

a wide range of information, including savings on commonhouseholdexpensessuchasfoodpurchases,transportation, banking costs, and entertainment

• www.americasaves.org Facebook and Twitter

Web-Based & Community

Education

If you don’t have your own

computer to access the

Internet, use the library’s

for free. Call 503-988-5402

to find the Multnomah

County library branch near you.

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Beehive• Resourcewebsiteprovidesusefulinformationfor

individuals and families•TheMoney topic provides links to local banks and

credit unions as well as information on how to open accounts, obtain loans, pay bills and obtain free credit reports

• Containsthe“MoneyMadeEasy”onlinecourseforfamily budgeting and budgeting worksheets

• Supplieslinktofreeonlinetaxpreparation,forms,and electronic filing services

• www.thebeehive.org – choose the Portland version from the main page for local information and select the Money tab

Facebook and Twitter

Federal Reserve Education• Educationinfinancialsubjectssuchasbankingbasics,

consumer protection, establishing credit, consumer guide to credit cards, and mortgage lending

• Youth-orientedfinancialeducationactivitiesforK–12students

• Teachers’resourceswithlessonplansbytopicandgrade level

• www.federalreserveeducation.org

FINRA• Providescomprehensiveresourcestogetstartedwith

learning to invest and to protect yourself against fraud• www.finra.org/investors

Jumpstart Coalition for Personal Financial Literacy• Dedicatedtoimprovingthefinancialliteracyofpre-K

children through college-age adults• “HowtoRaiseaMoneySmartChild”–aparent’s

guide to teaching children about finances is available throughtheresource/clearinghouselink

• “12PrinciplesEveryYoungPersonShouldKnow”provides a 2-page, 12-month calendar with tips highlighted each month

• Containscontentandresourcesforteacherstoprepare lesson plans about financial education

• Visitwww.jumpstart.org Facebook and Twitter

“It’s never too early or too late to start planning. You can take action today to ensure your financial security in later life.”OSUExtension

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My Money.gov• USFinancialLiteracyandEducationCommission

provides financial education resources • Linkto“MoneySmart,”anadulteducationprogramforpeoplewithlittleornobankingexperience,which helps adults establish positive banking relationships and develop money skills

• Informationisorganizedintothreecategories:Life Events featuring the stage-of-life planning; My Resources provides information by interest area; and Toolswhichprovidesexercisestolearnthesubjects

• Contains“TraintheTrainer”videostohelpteacherspresentthe“MoneySmart”curriculumtochildren

• Providescalculators,budgetingworksheets,andchecklists

• www.mymoney.gov

MyMoneyManagement• Collaborativeeffortbyfinancialservicesindustry

to provide consumers with access to financial information and educational tools for personal money management

• Providesconsumerswithavarietyofresources,including mortgage foreclosure prevention, financial tips and advice, budgeting, and managing debt

• www.mymoneymanagement.net Facebook and Twitter

National Endowment for Financial Education• Not-for-profitfoundationthatpromotesfinancial

well being – www.nefe.org• Includescurriculumtoinstructhighschoolstudents

on financial literacy• Linktowww.smartaboutmoney.org, a project for

financial independence that provides free financial education for adults

• Linktowww.cashcourse.org, which provides curricula to be taught to young adults in college

• Linktowww.spendster.org, which provides advice and support in dealing with impulse purchase and wasteful spending

Facebook and Twitter

Success Tip:

•Makerealisticgoals you can keep

•Learnnewwaysto manage your money

•MaintainyourbudgetBeehive,2007

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Oregon State University Extension – Family and Community Development• Provides“FamilyFinanceManagement,”whichis

an online training program for building financial security

• “ManagingBetweenJobs”includesinformationonbudgeting and planning in the event of a sudden loss of family income

• Homestudycourseforfirst-timeinvestorscalled“InvestinginYourFuture”• Retirementplanningcontentisincludedunder“FinancialSecurityinLaterLife”• http://extension.oregonstate.edu/fch – choose

Family topic, then select Family Finances

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Catholic Charities, El Programa Hispano• Providesfinancialliteracyworkshopsandlow-incometaxclinics

•Workshopsheldonanon-demandbasis• Forinformation,call503-669-8350 • www.catholiccharitiesoregon.org

Facebook and Twitter

Easter Seals/AARP Money Management Program•TheAARPMoneyManagementProgramhelpspeople

with low-incomes who need on-going support to keep theirpersonalfinancesinorder.Serviceisprovidedbycommunity volunteers supervised by local non-profit organizations. The project is coordinated at the state levelbyEasterSealsOregon,withtwolevelsofservice.

• BillPayerServiceisalong-termservicethathelpsprogram clients with budgeting, bill paying, banking, and organizing financial papers.

• RepresentativePayeeServiceisalong-termservicethatmanages federal benefits on behalf of program clients.

• Forinformation,call800-556-6020orvisit www.or.easterseals.com

Easter Seals Oregon Money Coach Program• MoneyCoachisafreefinancialmentoringservicethat

provides individualized one-on-one assistance through communityvolunteers.MoneyCoachhelpspeoplewithlow-to-moderate incomes learn how to improve their current financial status and plan for future needs.

• Short-termeducationalservicecover:budgeting,spending, credit management, and goal setting.

• Forinformation,call503-228-5108orvisit www.or.easterseals.com

Financial Beginnings• Not-for-profitorganizationthatprovidesfinancial

education to high school students and young adults inthePacificNorthwest

• BankingonourFutureprogramteachesyoungerchildren and teens about banking, credit, and investing.

• Toscheduleyouryouthorcommunitygroup,call1-800-406-1876

• http://financialbeginnings.org/youth-programs.asp Facebook and Twitter

Coaching/ Counseling/

Classes

Individual appointments or

group sessions are available in the

community.

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Innovative Changes• Non-profitorganizationprovidesindividualsand

families short-term loans as an alternative to payday lending (loans provided by referral only – see information below)

• Offersincomeplanning,budgeting,savings,successful banking, and credit building education services in three ways:

° “In-Touch”educationprovidesfinancialeducation using the application process to inform the consumers

° One-on-one coaching focuses on root causes of financial challenges

° Groupworkshopsthatfeaturespecificsubjects• Forinformationcall503-943-5607 or visit

website to check list of loan referral partners: www.innovativechanges.org

Metropolitan Family Service• Providesthe“WaystoWork”programtolow-income

families who have transportation issues• Loanfundsareavailabletopurchaseacar,finance

car repairs, or refinance a car loan with a high interest rate

• Financialeducationandcoachingisprovidedonaone-on-one basis for the life of the loan

• Forquestionsortoapply,call503-232-0007x207• www.metfamily.org

VIDA• VIDAisacollaborationoflocalagenciesthatofferIndividualDevelopmentAccounts(IDAs)toindividualsandfamilies.AnIDAisamatchedsavings account that enables those living on a low- or moderate-income to save and build assets. Thismeansthattheagency“matches”fundsthataconsumer adds to a savings account.

• Financialeducationopportunitiesareusuallyofferedtoprogramparticipants.Savingsaccountscan be used for homeownership, small business start-up, or post-secondary education.

• Visitwww.vidaoregon.orgformoreinformation.

Success Tip:Be PreparedBe InformedBe in ChargeFDIC,2007

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211info• Dial2-1-1orvisitwww.211info.org • 211info is a free and anonymous service which

provides information and referral on community services and resources

• LivecallspecialistsareavailableMondaythroughFriday,8am–6pm

• Dial2-1-1or503-222-5555inMultnomah,Clackamas,andWashingtoncounties

Facebook and Twitter

American Consumer Credit Counseling• Not-for-profitorganizationprovidesservices

around the country• LicensedinOregontoprovideconsumercredit

counseling• 1-800-769-3571• www.consumercredit.com

Beehive• FreecreditcounselingthroughConsumerCreditCounselingService

• SelecttheMoney category on the website to read a variety of articles on managing credit cards, debt, applying for credit, and keeping good credit scores

• www.thebeehive.org – choose the Portland version from the main page for local information

Facebook and Twitter

Debt Advice• ProvidedbytheNationalFoundationforCreditCounseling

• Helpsconsumersusecreditwisely• Offersdebtmanagementplans,money

management education, and homeownership education

• Includesconsumerfinancialtoolssuchasbudgetworksheets, calculators, financial education blogs, and consumer tips

• Localagency:ClearPointFinancialSolutions,Inc. 9955SWWashingtonStreet,Suite301 Portland,Oregon97216,1-888-875-2227

• Onlinecounselingavailable:Interactive,multi-session, using forms and email communication

• www.debtadvice.org

Credit Reports/Debt

Counseling

Not all credit counseling

organizations provide free

services. Don’t be afraid to

ask questions, or say “no

thanks” if you’re uncomfortable about charges.

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Debtors Anonymous• Offersa12-Stepprogramfordebtors• Forlocalinformationcall503-235-0638 or send an

email (preferred) to daintergroupnw@yahoo.com• Visitwww.oregondebtorsanonymous.org

InCharge• Not-for-profitorganizationprovidesservices

around the country• LicensedinOregontoprovideconsumercredit

counseling• Tocontactthemcall1-800-565-8953• www.incharge.org

Facebook

Fair Credit Reporting Act• Federallawrequireseachofthenationalconsumer

credit reporting bureaus to provide a free copy of itscreditreportsonceayearuponrequest.Mostlenders report loan repayment history to all three bureaus,butsomedon’t.Consumersshouldcontact all three credit reporting bureaus to get a complete picture of their credit history.

• OrderafreeCreditReport:

° Online at www.annualcreditreport.com

° Byphone:1-877-322-8228

° Bymail:AnnualCreditreportRequestServiceP.O.Box105281Atlanta,GA30348-5281

• Tolearnmoreaboutcreditissuesandcreditreportscams,visittheFederalTradeCommissionwebsiteat www.ftc.gov/freereports

National Credit Bureaus•Therearethreenationalcreditbureaus.Ifyouhavequestionsorneedtodisputeinformationbeingreported in your individual credit report you can contact them on the phone or online:

° Equifax:1-800-685-1111or www.equifax.com

° Experian:1-888-397-3742orwww.experian.com

° TransUnion:1-877-322-8228orwww.transunion.com

Reviewing your free credit report is a good way to check for identity theft.

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myFICO®• CreditreportsalsocontainanumbercalledFICOScore.Thisnumberisafactorusedbylenderstodetermine the high or low probability of the loan beingdefaulted.LowFICOscoresmaymeanthata loan may be denied or that higher interest rates willapplytotheloan.HigherFICOscoresincreasethe likelihood of loan approval or lower interest rates for the loan.

• Visit:www.myfico.com to learn more Twitter

“Managing my money gives me a sense of pride.”ConsumerFocusGroup MultnomahCountyCCFC

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Free Tax AssistanceIRSpartnerswithAARPTax-AideandCASHOregontoprovidefreetaxpreparationforlow-andmoderate-incomepeoplelivinginPortlandmetroarea.VolunteertaxpreparersaretrainedandcertifiedbytheIRS.Thereisnochargefortheserviceandmosttaxreturnsaree-filed.Manytaxpayersreceivetheirrefundwithin2-3weeks.

When you come in be sure to bring: 9 SocialSecurityorIndividualTaxpayerIdentificationNumber(ITIN)numberforeveryperson on the return

9 Form W-2 from every employer 9 Otherformsandreceipts,suchas1099sfromyour bank

9 Childanddependentinformation 9 Copiesoflastyear’sreturns,ifavailable 9 Proofofaccount(blankdepositsliporaccountroutingnumber),ifyouwishtohaveDirectDepositofrefundtobankorcreditunionaccount

Youcanfindfreetaxpreparationsitesat library branches and other convenient locations.Onthe“SmartSaving”website(www.multcolib.org/smartsaving/) click on “Taxes”formoreinformation.

You can also call 2-1-1 for information and referral to taxsitesinMultnomahCounty.

Youcanfindfreetaxpreparationsitesnearyou:• CASH Oregon 2013LloydCenterMall,3rdFloorbyNordstrom Portland,Oregon97232 503-243-7765 www.cashoregon.org CASHOregonisalsoabletohelpconsumersfileforITINs.

• AARP Tax-Aide 1-888-227-7669 www.aarp.org/taxaide

Free Tax Assistance

Why pay to get your

taxes done? Use free,

community resources.

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Catholic Charities, El Programa Hispano•TheLow-IncomeTaxPayerClinic(LITC)isfundedbytheIRStoofferEnglishandSpanishworkshopsto low-to-moderate income members of the community

• Provideseducationalpresentationsandindividualconsultationonavarietyoftax-relatedsubjects

•TheLITCalsorepresentslow-incometax-payerswithunresolvedissueswiththeIRS

• Forinformation,call503-489-6845• www.catholiccharitiesoregon.org

Facebook and Twitter

IRS Taxpayer Advocate Services•TheTaxpayerAdvocateServicesisanindependentorganizationwithintheIRSthathelpsindividualandbusinessesresolveproblemswiththeIRS

•TheAdvocateServiceoffersfreeandconfidentialassistancetotaxpayerswhoarefacinghardshipsandidentifiesissuesthatimpacttaxpayers’rights

• ContacttheTaxpayerAdvocateServiceinOregonat 503-415-7003 or the national intake line 1-877-777-4778

Legal Aid Services of Oregon – Statewide Tax Clinic•TheTaxClinicprovidesfreeadviceand

representation to low-income people who have problemswiththeIRSortheOregonDepartmentofRevenue

• Providesassistancewith:taxcourtcases,taxliens,leviesanddebts,auditsandexaminations,innocent spouse relief, injured spouse claims, and othertaxrelatedissues

• Call1-888-610-8764 for eligibility screening andtomakeanappointmenttospeakwithataxattorney

•Moreinformationisavailableatwww.oregonlawhelp.org under government benefitsandtaxes

Help with Tax Problems

& Issues

Problems with taxes can be complicated

and confusing. It’s always good

to seek help or information

when you’re not sure how

to handle a tax issue.

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Lewis & Clark Law School Low-Income Taxpayers Clinic•TheLewis&ClarkLegalClinicprovideslow-incometaxpayerswithfreelegalrepresentationinfederaltaxmatters

•TheTaxClinicisindependentfromtheIRS• ClientsarerepresentedbyLawSchoolstudent

interns who are trained and directly supervised by theTaxProgramDirector

•TheTaxpayersClinichandlesissuesinvolvingUnitedStatesTaxCourtcases,taxreturnexaminations,taxliensandlevies,innocentspouserelief,andtaxcollectionproblems

• Alltelephoneconversationsareconfidentialandin-person interviews are treated with the highest confidentiality

• Nodrop-insallowed–appointmentsonly• Forappointmentinformationcall503-768-6500

If a paid tax preparer offers you an advance on your refund, ask about fees. It might be better to wait to get your whole refund.

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The information in this section is drawn from educationalmaterialsprovidedbytheFINRAInvestorEducationFoundation.FINRA(theFinancialIndustryRegulatoryAuthority).isthelargest independent regulator for securities firms doingbusinessintheUnitedStates.

IntroductionFor many people, the first financial institution they deal with, and the one they use most often, is a bank or credit union. Banks and credit unions provide a safe and convenient way to pay your bills and accumulate savings, as well as other services that can help you to manage your money.

Themostcommonproductsofferedbybanksare:• Checking accounts to let you transfer money to a personororganization(the“payee”)bycheckorelectronic payment

• Savings accounts (or “deposit accounts”), which pay interest on your money in those accounts

Inmostbanks,youcantransfermoneyelectronicallybetween your checking account and your savings account.

Banks also provide other important services, such as cashier checks (guaranteed bank checks preferred by some payees to limit their risk of non-payment). Your bank can also provide a signature guarantee on an application or other official document. And, in most cases, banks are also the place you go to borrow money when you need it, through lines of credit and loans.

Safety in Banking: Federal InsuranceThe money you put in a bank account is insured by theFederalDepositInsuranceCorporation(FDIC),anindependentagencyoftheU.S.government.Forcreditunions,there’scomparableprotectionfromtheNationalCreditUnionAdministration(NCUA).With this protection, your deposits are secure up to themaximumcoveragethatCongresshasapproved,even if your bank or credit union goes out of business. VisittheFDICwebsitetolearnmoreabouttheinsurance amounts – http://www.fdic.gov

Knowing Your

Banking Options

Comparing Bank Products

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Checking Accounts Checkingaccountsmakeiteasiertohandlemanytransactions. You can write paper checks, specifying theamountyou’repayingandtowhom.Or,transfermoney electronically, either as an online bill payment orusingadebitcard.Ifyouneedcash,youcancashacheckforfreeatatellerwindowinoneofyourbank’sbranches,oruseanATM.

Shoparoundbeforechoosingwhereyou’llbank.Rememberthateachbankmayhaveslightlydifferentaccounts,privileges,andfees.Theremay be special bargains for students and seniors, or for low-income customers, if you meet the requirements.

Tofindtheaccountthat’sbestforyou,thinkabouthow much money you will keep in your account, how many transactions you tend to make each month – including debits, checks, online payments andATMwithdrawals–andwhatbankservicesyouwant, such as electronic bill paying.

Bank FeesHerearesomequestionsyoushouldaskaboutfeesbefore deciding on a checking account:• Isthereamonthlymaintenancefee?• Isthereaminimumbalancerequirement,andifyourbalancedropsbelowit,whatfeesapply?

• Isthereafeeforeachcheckyouwrite?• Isthereafeeforpayingyourbillselectronically,eithermonthlyorpertransaction?

• Isthereafeeforusingthebank’sATMstowithdraw money or to see your checking account balance?

• IsthereafeeforusinganATMfromanotherbank?• Isthereachargeforusingyourdebitcardtopayforapurchase?

• Isoverdraftprotectionavailable?

Banks may waive certain fees if you arrange for direct deposit of your paycheck to your checking account or keep enough money at that bank. Before you decide on an account, read the account agreement carefully. Somethingscantakeyoubysurprise:Forexample,

Knowing your financial goals will empower you, and having a trusted source for information will give you peace of mind.

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youmightfindthatanaccountthatoffersfreecheckingchargesyouafeeeachtimeyouusethebank’sownATMmachines.

Clearly,thefewerfeesyoupaythebetter.Anaccountthatadvertises“freechecking”maycostalotifyouenduppayingextrafeesbecauseyourbalancefallsbelowtherequiredminimum,oryourtransactionsexceedthemaximumallowed.

Overdrafts and Non-Sufficient FundsPerhapsthemostsignificantfeeyouriskpayingisan overdraft if you draw more money out of your account than you have available. That situation is also known as having non-sufficient funds (NSF).

Ifyouraccountbalanceistoosmalltocoverawithdrawal, your bank, may refuse to honor the transactionandmaychargeyouaheftyNSFfeeaswell,perhapsasmuchas$35fortheoverdraft.Youmayalso face an additional charge from the retailer or other payee, and the hassle of dealing with unpaid bills.

Insomecases,yourbankcoversthewithdrawalorcheck–butthenchargesyoutheNSFfeeplusinterest on the overdrawn amount. That can be better than bouncing a check. But if you make several withdrawals before your monthly statement arrives, you could run up hundreds of dollars of fees plus interestchargeswithoutrealizingyou’redoingso.

While having a withdrawal approved can be important in an emergency, you might prefer to be alerted to your low balance, with the opportunity to cancel the transaction.

ToavoidpayingtheNSFfees,it’sagoodideatoaddoverdraft protection to your checking account if it’savailable.Withthisservice,youapplyforalineof credit with the bank, which is similar to a credit cardagreement.Ifyouoverdraw,thebanktransfersmoney from the line into your account to cover the insufficient funds. You must pay interest on the amountthat’stransferred,andtheinterestrateonthis borrowed money is often higher than the rate

“Establishing a bank account has been a step up for me.”ConsumerFocusGroupMultnomahCountyCCFC

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oncreditcardpurchases.Butthere’snoNSFfee,andthe sooner you repay the transferred amount, the less interestyou’llowe.

Youmaynotqualifyforanoverdraftlineofcreditifyoudon’thaveastrongcredithistory.

Saving and Money Market AccountsSavingregularlyisyourfirststeptowardreachingbigger financial goals, such as buying a home or having enough money to live comfortably in retirement.Savingsarealsoimportantformeetingunexpectedexpenses,suchascarrepairsorreplacinga major appliance, or dealing with an emergency.

With a basic savings account, you can make as many deposits as you like, whenever you like. And you can usually withdraw as much as you like when you needthemoney.Somebanksmayrequireminimumopening balances for basic savings accounts, and some banks charge fees if your balance falls below thatminimum.Otherbanksdon’thaveminimumbalancerequirements.

Compound Interest and APYMostsavingsaccountspaycompoundinterest,whichmeans that your earnings are added to the balance to create a larger base on which future interest is paid. The bank will tell you whether the interest compounds daily, monthly or on some other schedule, and when the interest is credited to your account. Themorefrequentlyitcompounds,thefasteryourearnings will grow – though with small balances the increaseswon’tbeverydramatic.

The bank will also tell you the basic interest rate and theannualpercentageyield(APY).TheAPYtakesinto account the impact of compounding. Banks often advertisetheAPYsinceitmoreaccuratelyreflectstheamount of interest the account will actually pay, and it makes the savings account a more attractive place to park your money.

Onlinebanksmayofferhigherinterestratesthanmore traditional brick-and-mortar banks, because

You have to be realistic

You have to be serious

Budgets are an honest startMoneyMadeEasy,2007

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online banks tend to have lower overhead. Before deciding on a savings account, it pays to compare interest rates, along with other features, such as convenience of making deposits and withdrawals. Evenasmalldifferenceintheratecanresultinasubstantialdifferenceininterestovertime,depending upon the amount you put into the account. When banks are competing for your deposits, they mayoffersubstantiallyhigherinterestorotherbenefits for opening a savings account.

Onethingyoucan’tdowithabasicsavingsaccountis transfer money to another person or institution, soyoucan’tpaybillsfromyoursavingsaccount.Butyou can generally transfer funds from your savings to your checking account electronically, or withdraw funds from one of your savings accounts and deposit them in another. You should be aware of Federal ReserveRegulationD,though,whichlimitsyoutosixtransfersfromyoursavingsaccountinanyfour-week period, whether these transfers are made electronically, automatically or by phone.

Emergency FundsMostexpertsagreethat’simportanttosetasideenoughmoneytocoveryourlivingexpensesforthree to nine months in a separate account you useexclusivelyforemergencies.Thismoneywouldcomeinhandy,forexample,ifyouweretostopearning income temporarily, or if you were faced withunexpectedevents,suchasbigmedicalbills,oranyotherexpensethatcouldarisewithoutwarning.Without savings, you might need to rely on credit cards and other borrowing to pay for emergencies, which could result in serious debt.

Certificates of Deposit (CDs)Certificatesofdeposit(CDs)are“timedeposits”–youselectthefixedterm,usuallyapresetperiodfromsixmonthstofiveyears–andtheCDpaysyouinterestuntil maturity. At the end of the term, you can cash inyourCDfortheprincipalplustheinterestyou’veearned,oryoucan“rollover”youraccountbalancetoanewCD.Youmusttellthebankwhatyou’vedecidedbeforetheCDmatures,orthebankmay

Ask if the bank offers low-cost savings accounts. Many banks offer more flexible alternatives for children, college students and senior citizens, and for people whose income falls below certain limits.

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automaticallyrolloveryourCDtoanewonewithasimilartermatthecurrentinterestrate.Checkwhether you might earn a better interest rate with a newCDthathasadifferentterm,oroneofferedbyadifferentbank.

YoumayalsobeofferedaCDbyastockbrokerorotherinvestmentprofessional.These“brokered”CDsmaybemorecomplexandcarrymoreriskthanregularbankCDs.Somemaybesecurities–andwon’tbeFDICinsured.Also,theremaybeapurchasefee.IfthefeeismodestandtheCDispayingahigherratethan you could find on your own, you may come out ahead. But you should take the fee into account. You may also have to invest a minimum amount, such as $10,000 or more.

International RemittancesFor people who transfer money to relatives orfriendsinanothercountry,InternationalRemittanceaccountsmakeiteasytohandlecross-border transactions. They are safer than sendingcashandoftenlessexpensivethannon-bank transfer agents such as Western Union, MoneyGramortheircompetitors.

Ifyou’reinterestedinthisserviceanddon’thaveabank account, it may be easier to open one than you think.Manyofthemajornationalbanks,aswellassomelocalbanksandcreditunions,offertheseaccounts.Eachofthebankswillofferaslightlydifferentprogramandchargeslightlydifferentfees.You’llwanttofindoutwhichbankismostconvenientfor you and for the people at home.

To open an account, you will need identification that thebankwillaccept,suchasanindividualtaxpayeridentificationnumber(ITIN)oranidentitycardthat’sbeenissuedbythecountrywhereyouareacitizen.ITINsareavailabletopeoplewhoweren’tbornintheU.S.,aren’teligibleforaSocialSecuritycard,butarerequiredtofileincometaxreturns.

You can usually find the information you need from a customer service representative in a bank branch.

Having a bank account can help you avoid high fees at check-casing and payday loan stores.CCFC2011

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There are usually printed materials that may be available in your native language as well as English. Youmayalsofindinformationonlineatthebank’swebsite. The remittance accounts may be part of a larger account package that gives you access to other bank services as well.

Beyond BankingInadditiontobankaccounts,yourlocalbankmayalsoofferinvestmentaccountsthatyoucanusetosaveforcollegeorretirement.Somebanksemployinvestment professionals and account managers to help you coordinate your whole financial strategy. Theymayevenofferinsurancecoverageforyourhome or your life, or annuities to help you generate retirement income. But it’s important to remember that just because you’re buying these products from a bank, it doesn’t mean they’re FDIC insured. In fact, they’re not.

However, you may find that the convenience of having all of your financial activities under one roof makes your life easier. And if you already have a relationship with a particular bank, you may feel more comfortable going there for a broader range offinancialservices.Ifyouareunsureaboutwhichaccounts are insured and for how much, and what fees are associated with a given financial product, be sure to ask.

Consumer ChecklistKeep Notes – Map Your Progress!

Web-Based & Community Education:

Coaching/Counseling/Classes:

Credit Reports/Debt Counseling:

Free Tax Assistance:

Help with Tax Problems/Issues:

Knowing Your Banking Options:

Prepared by Natalie Mitchell-Royce, MSW Editing assistance by Tamara Bertell, MPA, Nicole McKinney, PCC Intern,

Yolanda Karp, MBA, and Joanne Kahn, SmartSaving Program Coordinator

For more information about the Family Economic Security Project, contact Janet Hawkins, CCFC Community Action Coordinator,

at 503-988-3707 or janet.c.hawkins@multoco.us

Visit the Commission on Children, Families & Community (CCFC) website at www.ourcommission.org/fes

Made possible by The Library Foundation through a grant from Smart Investing @ Your Library, a partnership between the FINRA Investor

Education Foundation and the American Library Association.

March1,2012