Bank on LA

WE MOVED

2010-01-27T20:54:00.000-08:00

WE MOVED!!!

Please join us at our new blog http://www.commecondev.wordpress.com for newly improved sexy South Los Angeles Community & Economic Development blog!

Some New Year's Resolutions

2010-01-20T12:15:00.000-08:00

Some New Year's Resolutions

Do NOT remake the mistakes (financial and otherwise) you made last year
Do NOT re-buy things you never needed in the first place
Do re-evaluate your spending habits
Do re-do your budget to reflect changes in your financial situation and needs
KEEP saving

Community & Financial Resources Fair in Photos

2010-01-04T14:10:00.000-08:00

Community & Financial Resources Fair in Photos

If you've been keeping tabs we, the good folks at CFRC, opened our doors to the community to host our first ever "Community Resources Open House". It was a great success. In addition to our sponsor for the event, California United Bank represented by Michael Richman, representatives from other financial institutions showed up with tables and pens ready to answer questions from the participants.

Midway through the event three raffles were held as well as a hearty lunch from Subway. A surprise treat was that everyone in attendance received a voucher to claim a free credit report and score from either Equifax or Transunion; courtesy of HSBC. The event attracted people from all around community and proved to be a success in introducing people to financial services. The organization found it to be such a success that another open house will be in the works for the summer (hopefully, avoiding the rain in the process).

The CFRC staff would like to thank Jeff Hernandez and David Luna of E1 Financial Credit Union, Jose Figueroa of Broadway Federal Bank, Vernell Taylor of Union Bank, Citibank and HSBC.

Inside the Biztech training room tables displayed vital community and economic resources - ranging from low cost child care to a free refrigerator exchange program.
Michael Richman from California United Bank delivers a presentation to participants about utilizing community resources as a tool for money management.

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California United Bank Employees To Help Raise Financial Awareness Among Los Angeles Youth

2009-12-11T10:07:00.000-08:00

California United Bank Employees To Help Raise Financial Awareness Among Los Angeles Youth

ENCINO, Calif. – December 11, 2009 – California United Bank (OTCBB: CUNB) employees will participate in a financial empowerment seminar for about 200 Los Angeles high school students at 10 a.m. on Saturday, December 12 in downtown Los Angeles.

Save Yourself: Community Resources Open House is part of the Bank on LA campaign sponsored by the City of Los Angeles. Conducted in partnership with the Community Financial Resource Center, the four-hour event is designed to raise awareness about the benefits of banking and to direct participants to responsible financial institutions in their community. Attendees will learn about various consumer finance concepts, have the opportunity to sign up for checking and savings accounts, sign up for free beginner computer classes and obtain information on child care, unemployment and other programs for low- and middle-income families in Los Angeles.

“Improving the lives of others in our region is at the foundation of CUB’s mission,” said David Rainer, Chairman, President and Chief Executive Officer of California United Bank. “By participating in Bank on LA, we are empowering residents to make financial decisions that will positively affect them for decades to come. That in itself is a powerful responsibility and our privilege as members of this community.”

CUB will make a presentation to local residents that will focus on financial education. General concepts will include banking, budgeting and money management, consumer awareness, credit, investing and savings. Employees will also address specific issues such as credit scores, identity theft, the importance of budgeting, the risks of using alternatives to traditional banking services, emergency funds, interest, and general investment products such as certificates of deposit, mutual funds and stocks.

The event, conducted in English and Spanish, will be held at the CFRC’s office at 4060 S. Figueroa St. in Los Angeles and will also include a light lunch.

About Community Financial Resource Center

The Los Angeles Community Reinvestment Committee, d.b.a. Community Financial Resource Center (CFRC) is a non-profit 501 C-3 Community Development Financial Institution (CDFI) dedicated to providing low-cost financial services and counseling for residents and businesses in low and moderate income communities of Los Angeles County. The mission of CFRC is to create and enhance the economic wealth and capacity of the residents and businesses in disinvested areas of Los Angeles by delivering quality community development programs and facilitating collaborative efforts among business, the community and government. CFRC is recognized as the finest provider of wealth creation tools to historically under-served residents and small business owners. For more information, please visit www.cfrc.net.

About California United Bank

California United Bank provides a full range of financial services, including credit and deposit products, cash management, and Internet banking for businesses and high net worth individuals. The Bank operates from its headquarters office at 15821 Ventura Boulevard, Suite 100, Encino, CA 91436; West Los Angeles Regional Office at 1640 South Sepulveda Boulevard, Suite 114, Los Angeles, CA 90025; Santa Clarita Valley Regional Office at 25350 Magic Mountain Parkway, Suite 100, Valencia, CA 91355; Conejo Valley Loan Production Office at 4333 Park Terrace Drive, Suite 215, Westlake Village, CA 91361 and South Bay Loan Production Office at 1025 W. 190^th Street, Suite 225, Gardena, CA 90248. Information on products and services may be obtained by calling (818) 257-7700 or visiting the Bank’s website at www.californiaunitedbank.com.

Contact:

California United Bank

David I. Rainer, President and CEO, 818-257-7776

Addo Communications, Inc.
Andrew Greenebaum, 310-829-5400
andrewg@addocommunications.com

7 Twitter Feeds You MUST Follow for Killer Savings

2009-11-16T11:17:00.000-08:00

7 Twitter Feeds You MUST Follow for Killer Savings
LearnVest Daily - 11.16.2009 by The LearnVest Staff

Forget following celebrities on Twitter; we barely have time to eat lunch. We do, however, find ourselves all over social media to get great discounts and pounce on Twitter-only deals! We follow:

AmazonMP3 tweets daily deals to over a million followers. We just downloaded about ten songs for free, including tunes from artists like Death Cab's Ben Gibbard, Taylor Swift, Kings of Convenience, Tegan And Sara, and Annie Little.

Every Tuesday, JetBlueCheeps, run by JetBlue, tweets about special last-minute flight deals. Many are as low as $69 (Washington Dulles to Fort Lauderdale, which is normally about $100!), and are only available to those in the know.

Dell tweets special deals, often available only for Twitter followers. Recently, the $1,286+ Inspiron 546 MT desktop computer went for only $850 to Dell's Twitter followers.

Whole Foods tweets about meal giveaways, special deals, free classes, party-planning tips, and updates about what produce is fresh. In between, however, there are a lot of @ replies. If the amount of those bothers you, find—and follow—your local Whole Foods store on this regional list.

Woot, a discount online store that sells one product a day, tweets their daily deal. A recent "woot" included a Gateway 11.6" Netbook for $280 (normally priced at $400).

ShopItToMe tweets great fashion deals. For example, they tipped us off that this beautiful Vince silk halter blouse is on sale for 60% off at Nordstrom, and that this covetable J. Crew silk cami is currently on sale for $69.50 instead of $88.

CheapTweet aggregates all the best Twitter deals, based on user votes.

That's the LearnVest way to save…even when we're killing time on Twitter. Follow us, too! Because remember, it's not cool to be broke.

Hassan says, LearnVest is a cool personal money management tool. Check it out!

"Save Yourself/Si Se Pude" Community Resources Open House

2009-11-13T13:57:00.000-08:00

Here is Your Debit Card, You Have Been Warned

2009-10-27T13:15:00.001-07:00

Here is Your Debit Card, You Have Been Warned

Heed the Fee Just because banks no longer charge annual fees for their debit cards doesn't mean they've changed their tune. They're just being competitive. However, this doesn't mean it isn't possible to incur fees while swiping. In fact, many of us (myself included) are victims of constant, 'casual', charges that overtime will eat away at our checkings account.

The fees we are talking about are Point-of-Sale aka POS. Any time you use your PIN you are
using your check card as a debit. These types of transactions are more secure and cost less for the retailer, but be aware that there could be a charge. Better to ask before you swipe.

Earlier this year before I abandoned fast food I was at Carl's Jr. ordering when the associate remarked that I would be charged $1 for using debit. I was shocked. After all, Carl's Jr. was a regular stop for me when I used to work in Koreatown. Unbeknownst to me I was being charged every time. Hassan's Realization #20 Always check your receipt.

When the Big Transactions are Clear, You're in the Clear Most banks process large purchases first. If you're not aware of this you could end up with costly overdraft fees. In the example below you'll find that if the bank debited the transactions in the order that the purchases were made the account holder would get stuck with one overdraft fee. However, by switching up the order, even given the same amount the account holder in this situation would actually get dinged twice. All of this done with an account that only has $100. Sounds like funny math? Look below...

And you thought you had to be careful with credit cards...

For more secrets about debit cards check this article out.

If You're Not Sneaking Candy into the Movie Theater I Don't Know What You're Doing: And Other Exercises in Frugality

2009-10-21T11:24:00.001-07:00

If You're Not Sneaking Candy into the Movie Theater I Don't Know What You're Doing: And Other Exercises in Frugality

Some people may label me cheap. I say, "No. I just want to make well-informed financial decisions." Well, I don't really say that, but it is what I mean.

To me being cheap and frugal are two different things. Cheap, in my opinion, is compromising the value, quality, and function of an item, product, or service to obtain the lowest possible price - at the extent to which the whole point of saving is undermined. Frugality is a skill, a graceful one at that, which attempts to find the best usage of money for its user.

Committing to either one can be a burdensome undertaking, but if we would like to move closer towards financial freedom it's going to require some financial constraint. It may sound counter-intuitive, but it makes sense once you think about it.

There are many ways people cut corners, save pennies here and there. Our concern is saving dollars. Here are some examples of how I save.

Juice Me Up - I love juice. I love beverages period. And I always gotta have a variety in the fridge. As I began my journey towards frugality I realized that I spent a lot of money of juice and other flavored drink. I had two options. Drink water 100% of the time or find a cheaper way. Well, I ended up doing kinda both. I drink a lot more water now, but I also figured out a way to treat my palette at the same time. On a trip to the 99 Cents store I discovered these flavored drink "singles". Basically, you mix the drink powder in water and voila instant light green tea, rasberry lemonade, or whatever other flavors they have. So now I just recycle and re-clean empty water bottles. Each box is a buck and comes with at least 10 packets. I only have to clean and refill every two-three days. Before I was going through a $2-3 jugs of juice every two days.
Air Dry Only - I have an airy place. So, instead of dishing out the 75 cents to dry I let all my clothes dry naturally, by the air in the sun.
Eat Like A Kid - You ever notice in Europe how the portions are usually smaller? There's valid reasons for it. Any time I'm grabbing food on the go I look towards the kiddie meal. It's always cheaper, always smaller portion, and usually fills me up just the same.
$2 Menu - According to the book "Portfolios of the Poor" the world's poor survive on less than $2 a day. While I'm not ready to subject myself to abject poverty I do have a $2 a day rule....for lunch. Most of the time I paper bag my lunch to work. When I want to treat myself I head straight to the dollar menu. So far I like McDonald's the best. One chicken sandwich and one side salad with Caesar dressing.
Event Calendar - Every weekend I check out local community calendars for events happening around my neighborhood. Many times I'll find free events with free food. Bam! I get entertainment + lunch/dinner covered. And many times it's a good opportunity to network.
Traffic! - I try and schedule any appointments or outings that require my car around peak hours. I hate sitting in traffic burning gas. Usually, I'll check siglalert for traffic congestion and decide my route from there. If it's close and I have the time, I'll walk!

Bank on LA - In Numbers

2009-10-07T16:05:00.001-07:00

"Bank on L.A." - In Numbers

Click here to view an interactive bar chart utilizing data the Center has collected under the "Bank on L.A." campaign. If there are any issues viewing the graph, please feel free to leave a comment and we will guide you through it.
Note: You will need Java to view.

Lessons of Frugality and Savings

2009-10-01T14:30:00.000-07:00

Lessons of Frugality and Savings

Some people may label me cheap. I say, "No. I just want to make well-informed financial decisions." Well, I don't really say that, but it is what I mean.

To me being cheap and frugal are two different things. Cheap, in my opinion, is compromising the value, quality, and function of an item, product, or service to obtain the lowest possible price - at the extent to which the whole point of saving is undermined. Frugality is a skill, a graceful one at that, which attempts to find the best usage of money for its user.

Committing to either one can be a burdensome undertaking, but if we would like to move closer towards financial freedom it's going to require some financial constraint. It may sound counter-intuitive, but it makes sense (no pun intended!) once you think about it.

There are many ways people cut corners, save pennies here and there. Our concern is saving dollars. Here is an example of one person has lived frugal.

*Marushka works as an assistant for a high-powered talent agent in Beverly Hills. She makes decent income, but would like to save up for the down payment on a house [Hassan says it's always good to establish an obtainable financial goal]. She wants to watch her money, however, working in the entertainment industry has equated to a lot of extra expenses that she initially didn't anticipate. For one thing, networking mixers and afterwork cocktails are standard. Marushka imagined she has spent hundreds on drinks alone. So, where can she cut corners?

The first step Marushka did was analyze her desireable expenses. What were the areas where she was spending on non-necessities? That was easy: shopping and eating out. Marushka used to go shopping at her favorite boutique store in Westwood almost every week. Now, instead of waisting gas trying to find parking only to buy an overpriced dress that will collect dust in her closet she uses that money to contribute more to her Roth IRA [Hassan says, you need to save for retirement]. And for eating out, she only allows fine dining once a month. This is all good, but we're not hitting frugality yet.

Marushka then took a look at her necessary expenses: gas, cell phone, food, and even afterwork cocktails, which she felt was important for her career. Using the nifty site BillShrink.com she created an account that alerted her to the cheapest gas in her area as well as the most competitive credit cards. Along the same lines she researched cell phone companies and switched providers to an all inclusive plan that was much cheaper then what she paying for before (she switched from Sprint to MetroPCS). The best part, after the savings, is that her bill would always be the same each month - easier for budgeting. The cellphone switch alone saves around $70 a month. Now, we're getting closer.

Marushka used to turn her nose up at discount stores until she realized there can be real savings to be had there. Everyday products like toilet paper, paper towels, cleaning supplies, dishwashing soap, and detergent she could find at the 99 Cents store for good quality [Hassan says, find ways to cut down on everyday/regular expenses...because they're most frequent]. On good days she could even find name-brand items cheaper for they would be at a competing store. But becareful. Sometimes the 99 Cent store can be more expensive. I know, shocker right? For items she couldn't pick up at the discount store she exercised her Ralph's Club Card and cupons. Sure, she was shaving a little of her bill, but that quickly amounted to significant savings.

And what about her cocktail/networking hours? Well, Marushka understood in order for her to not overspend on drinks she would have to anticipate how much she could alott herself to spend. We all know how hard it is to make sound financial decisions when we're "in the moment" and temptation is staring us in the face. The best solution for her was to open up a separate checking account with ING Direct, which allowed her use of a MasterCard debit card. She then would transfer a weekly allowance of money to that card, she called "The Fun Card". Anytime she would go out for drinks she would bring The Fun Card and leave cash and other credit cards in the car. Now, she can only spend up to the pre-determined amount she set for herself. This way she won't overspend. [Hassan says, you gotta protect yourself from yourself].

After following this routine for some months she has quickly amassed a sizeable fund. She was amazed at how much extra pennies and dollars she accumulated. Now she's hooked! [Hassan says, one of the extra benefits of saving..is that it can be addicting. Once you see how much you've saved you get excited and want to save even more.]

*Name changed for privacy. Not like she would sue us or anything...

This Week In Numbers

2009-09-09T18:00:00.000-07:00

This Week In Numbers

16.8%* - The rate of unemployment in the U.S. The figure includes part-time workers who would prefer full-time employment, as well as unemployed workers who desire full-time unemployment but have been discouraged to look for work.
$571 Billion** - The amount of interest-only mortgages scheduled to reset between now and 2011.
36%*** - of Americans say "immigration is a bad thing for America."
$34.9 Billion^ - The total bailout committed to California-based institutions.
6.9 Million^ - Total of U.S. jobs lost during the Recession

^Source *Source ** Source ***Source

Bob Saget's Wallet | An Experiment

2009-09-03T14:43:00.001-07:00

Bob Saget's Wallet | An Experiment
by Hassan Nicholas

The What:
As I was taking a break from Excel madness I perused through Google and stumbled upon this nifty tool. The Google Trends application allows you to enter up to five topics and see how often they've been searched in Google over time. It breaks the results down by country, region and city automatically. You can even generate the chart to capture certain periods of time.

Below you'll find one that I generated. It takes a look at how popular "money management", "FICO score", "credit card debt", "budgeting" and actor/comedian "Bog Saget" fared against each other in Google searches over the past twelve months. Why Bog Saget? I'm sure there's a punchline in here somewhere, but I'll let you come up with that.

The Results:
Overall our friend Bob Saget did not stand up too well when it came to topics in personal finance. He flat lined through the end of October to January of this year, had a nice spike that plateaued from April through June and fell back down again. Though, the rise in August looks promising, looking at the trend we could expect another nose dive shortly after wards.

To be fair, Bob Saget generally has nothing to do with money management. A better comparison would probably have him up against Dane Cook, Jerry Seinfeld, Jamie Kennedy, and Chris Rock. But, this was all done in fun so enjoy it for what it's worth.

As we look at the financial topics we can see that not too many people are Googling "money management" and "budgeting" (are we really surprised?). And "FICO score" and "credit card debt" seem to follow similar patterns (again, are we really surprised?). I expected to see a sharper increase in credit related topics in July and August- especially off the heels of the new credit card legislation. Well, Google Trends is not perfect but I hope they continue to develop it further. It's a great tool, fun, and easy to use.

I mean, hey, at least it got you thinking of Bob Saget again...

Oh, and just for kicks I did "Love and Money"

Who Wants (Bailout) Pie?: Los Angeles does

2009-08-26T17:47:00.001-07:00

Who Wants (Bailout) Pie?: Los Angeles Does
By Hassan Nicholas

12 Los Angeles-based banks (out of the 78 recipients statewide) got healthy servings of a bailout pie worth a total of $524,100,000. The total bailout monies committed to California comes to $34.9 billion (6%) of the total bailout that has been committed thus far. Here we have pulled from that list the twelve banks headquartered in the City of Los Angeles that were recipients - omitting cities such as Beverly Hills, Manhattan Beach, El Segundo and others that are may fall within Los Angeles County - populated a pie chart to help you visualize and compare.Click image to enlarge

List of Recipients by amount (from least to greatest)

Pacific Commerce Bank - $4,100,000
1st Enterprise Bank - $4,400,000
The Private Bank of California - $5,500,000
Commonwealth Business Bank - $7,700,000
Broadway Financial Corporation - $9,000,000
NCAL Bancorp - $10,000,000
Pacific City Financial Corp - $16,200,000
First California Financial Group - $25,000,000
Center Financial Corp - $55,000,000
Wilshire Bancorp - $62,200,000
Nara Bancorp - $67,000,000
Cathay General Bancorp - $258,000,000

source: http://bailout.propublica.org/main/list/state/CA

A List of Free Online Money Management Tools

2009-08-12T10:51:00.001-07:00

A List of Free Online Money Management Tools
by Hassan Nicholas

Is the ole 'Balancing your checkbook at the Trader Joe's cash register after you've paid for your groceries' tactic not working? Not much a fan of the old school pen and pad budget? Then there might be a solution. Following our wave of articles focusing on the utilization of the internet to manage our money and spending, we've come across yet another way to achieve financial freedom through online money management tools. And the best thing about them (besides the obvious fact that they help you save money) is that it's free for you to peruse, use, and abuse.

The jist behind these companies is that they aim to simplify the budgeting process and even make tracking your expenses, somewhat fun. The online tools capture your information, such as expenses, savings, debts and assets and design a plan for you to stay on top bills and eek out a savings while you're at it. If you're already a fan of online banking (as I am!) then you will at least seriously consider adding this fixture to your money management machine. Each one offers different features, so it is worth doing additional investigating to see which best suits your needs. Also, check out this article which gives a brief summary of their individual features.

I definitely will try an account with one of these online money management tools soon. I will let you know how it turns out. Until then, here is a list so you can start on your own.

Yodlee

Mint

Wesabe

Money Strands (formerly Expensr)

BudgetPulse

Buxfer

Geezeo

Banks Won't Lend? Others Will

2009-08-07T13:26:00.001-07:00

Bank Won't Lend? Others Will...
by Hassan Nicholas

In this economic climate a borrower seeking to secure a loan from a bank might run into challenges. The credit crunch has squeezed much of the available credit out of the reach of consumer's waiting hands, and unfortunately, the banks aren't letting up soon. The result is a significant market for credit from borrowers who are too risky or under-qualified to receive a conventional loan. However, when there is need there is opportunity and for that reason a growing community of "alternative" lenders have surfaced, mainly via internet, to fulfill that void. Micro-credit/Micro-lenders first arrived on the scene to combat poverty in developing countries. Now the same principles can be found world-wide, in all economies. With the state of our economy putting the grip on consumers, these personal loans offer an avenue to tap credit when banks run dry.

Here are a handful:

Wait a sec. Will this bring about competition to the banks? Probably not right now. Though the market is growing, a majority of Americans will go through a formal lending institution. Borrowers of peer-to-peer lenders are many times consumers that would not have been eligible for bank services anyway. Although, if this movement towards more merit-based lending gains enough momentum, if could prove a competitive force in the banking industry. Can you imagine if banks restructured the entire underwriting process to include elements such as 'good character' as part of the approval process? What if loan originators asked for the link to your Facebook or SomeMaySay profile?

Though, everyone who patrons these services aren't necessarily unable to secure conventional funding. Some might appreciate the "Go, do good" undertone. Others will enjoy the opportunity to avoid working through a financial institution. And the rest could be shut out from mainstream products because of barriers to entry like citizenship status or lack of collateral.

New Credit Card Legislation...Victories and Warnings

2009-07-27T15:33:00.000-07:00

New Credit Card Legislation...Victories and Warnings

by Hassan Nicholas

I don't know if you've been following Washington, but one of Obama's projects has been to eliminate unfair and abusive practices between credit card companies and their customers.

In sum, here is what went down and how we should all move forward from this:

No More Arbitrary: Credit card companies used to be able to raise your interest rate (seemingly arbitrarily...but not really) on an existing balance. With the new legislation not only can't credit cards raise your rate on existing balances, but one company can't hold it against you if you miss a deadline with another card. +1

Pay the highest rate card first: This mantra was a popular strategy to alleviate credit card debt for holders of multiple cards. Obama's plan means that payments from now on will automatically be applied to the "portion of your balance with the highest rate", first. +1

Keep Swiping: Although you don't want to overextend yourself, it's generally not a good idea to keep your cards inactive. And please think twice about canceling cards. It's generally not a good idea. It's projected that lenders will reduce the amount of credit they lend - meaning, not only will many unused cards get cut, but some of those that are open will have their limits tightened as well. Anything from location, debt-to-income ratio, and spending patterns can influence a creditor's decision of whether you'll get the axe or not. All this means is you'll have to play a delicate balance between swiping just enough to not have your credit reduced, but not so much that your credit score is affected. They used to say 30% was the magical number for credit utilization ratios. Now some experts are saying to be conservative at 10%. As a consumer, you'll have to even more careful with your credit. Have a budget?

Oh yea, and if you are a victim of a rate cut, you'd probably be better off opening a new card rather then chatting it out with the bank. -1

Keep Watch: Now more then ever credit card companies could initiate potentially costly changes to the terms or rate of your card. In the past creditors were required to contact you at least 15 days before a change. With the new legislation you will notified 45 days prior. However, be careful. There is no standard on how the bank or credit card company will reach you. -1

Now that something has finally been done to protect consumers against abusive credit relationships, expect a jealous and bitter reaction from creditors.

REPRINT: Asset Building Program Advancing Savings and Financial Security Bills

2009-06-23T20:07:00.000-07:00

Asset Building Program Advancing Savings and Financial Security Bills
Source: California Center for Research on Women & Families (www.ccrwf.org)

April 23, 2009 by Kate Karpilow

An update from Olivia Calderon, California Legislative Director of the Asset Building Program of New America Foundation:

New America is advancing 5 bills this year to help working families build their savings and financial security. All of our bills (listed below) are moving through the legislative process, several with overwhelming bipartisan support.

· Assembly Bill 325 (Beall) California Working Families Economic Stimulus Act - seeks to draw down millions in unclaimed 100% federally-funded Earned Income Tax Credit (EITC) dollars for working families by designating the Department of Community Services and Development as the lead agency to administer the (EITC) outreach options specified in the Department of Social Services report due out in the spring of 2009. This bill is co-sponsored by Catholic Charities of California and New America.

· Assembly Bill 1058 (Beall & Fuentes) California Workforce Mobility and Savings Initiative - repeals the asset limit for CalWORKs recipients and raises the asset limit for applicants to encourage low-income families to build the savings they need to permanently exit CalWORKs. The eligibility rules currently penalize low-income families for saving with a reduction or loss of benefits, thereby discouraging families from building the personal safety net they so desperately need to climb out of poverty and become self-sufficient. This bill is sponsored by New America.

· Assembly Bill 125 (De Leon) California Employees’ Savings Program - creates a voluntary, universal, portable retirement savings account for California workers who do not have access to a retirement savings plan at their workplace. The account supplements the current employer-based system and Social Security. It promotes expanded retirement security for working Californians by making it easier for them to save through payroll deduction while providing small businesses a basic retirement savings plan to offer their employees. This bill is co-sponsored by AARP California and New America.

· Assembly Bill 550 (Lieu) California Financial Literacy Initiative - creates a financial literacy program in the office of the Controller funded by a financial literacy fund established in the Office of the Treasurer. It represents a much-needed commitment by the state to start addressing the root causes of personal financial struggles precipitated by a lack of consumer financial education and codifies the state’s financial interest in reducing consumer debt and bolstering personal savings. This bill is co-sponsored by California State Controller John Chiang and New America.

· Senate Bill 323 (Oropeza) Tax-Time College Savings - creates an easy way for California families to save for college by amending the state income tax form to allow filers to directly deposit their refund into an existing state-administered tax-advantaged 529 college savings account designed to help children and their families save for postsecondary education. This bill is sponsored by California State Treasurer Bill Lockyer.

Where Are They Now?

2009-06-16T08:48:00.001-07:00

Banks...and where they are now

If You can Read this Blog Online then You can Bank Online Too

2009-05-27T17:41:00.000-07:00

If You can Read this Blog Online then You can Bank Online Too
by Hassan Nicholas

OK, maybe it's not an original title but you get the point. Banking online is quickly becoming a regular fixture in the way many people handle their money. It is said that half of people online use online banking. So, why make the move from brick and mortar to mouse and keyboard? Well, these are my own reasons why I have two accounts (savings and checkings) with ING Direct:

I'm trying to beat inflation the best I can. Since online banks cut costs by not having physical branches and the salaries to staff them they can offer more in terms of interest. When I first openeng up my Orange Savings account my APR was floating around 3.5% (it's since dropped). Considering I was earning less than 0.5% in my WaMu account it seemed like a no-brainer.
Forces to me to wait before I buy. Unlike my AFTRA-SAG Federal Credit Union I can't walk up to a ING branch or ATM and deposit a check. I have to make the deposit in a checking account that's linked to my online bank and transfer the money that way. This process, though very simple, takes between 2 - 3 business days to complete. Which means if I want to use that card to purchase something I have 2 - 3 business days to think whether I really need that purchase.
It's easy to save. With online banking I can set up an automatic savings plan that's linked to my brick and mortar bank. Right now I have a certain amount automatically deducted every week from my credit union checking account that goes to my online savings and checking accounts. You can pick a small amount that you wouldn't notice, $5 - $10 a week, that goes into your account. If you're like me, you'll forget that you'll even have this account and be suprised one day when you realize how much savings you've accumulated.
I can manage my money better. Online bank accounts are so easy to set up (you can even set up multiple accounts under your name) and they can prove an effective money management tool. For instance, I use my ING account as a "fun" card. I give myself an allowance every week of how much money I will transfer to my online checking account. Whenever I go out for leisure I use this card and this card only. What it does is prevent me from spending over a certain amount every week and month. You can open up an account and make your own "fun" card too. Or maybe have one for vacations or to put monthly allowances on for your children. The possibilities are endless...
Oh and don't forget the fees. Well, maybe you can because 80% of online banks don't have any fees. There was no minimum to open my account nor is there a monthly minimum I must maintain. And this goes for both my checking and savings account.

Here are some other online banks you can use (do your homework though, some might be more appropriate then others for your circumstances and goals).

Financial Education: An Essential Tool to Prevent Domestic Violence

2009-05-13T09:02:00.000-07:00

Financial Education: An Essential Tool to Prevent Domestic Violence

by Ana Paula Noguez, Domestic Violence Prevention Program Coordinator, MALDEF

The Economic downturn we are currently experiencing could lead to an increase in violence within the family. Stress often leads to more frequent, more violent, and more dangerous abuse when domestic violence already exists; in addition, the economic situation will make it more difficult for some victims to leave abusive relationships.

“Mary Kay’sTruth About Abuse” survey of domestic violence shelters across the country released yesterday states that three out of four domestic violence shelters report an increase in women seeking assistance from abuse since September 2008, a major turning point in the U.S. economy. The survey data directly connects a major reason for the increase in domestic violence to the downturn in the economy. Representatives of the shelters surveyed report they have observed an increase in requests for assistance from domestic violence victims because of the following reasons:

· 73% attribute the rise in abuse to “financial issues.”
· “Stress” and “job loss” (61 % and 49 %, respectively) also proved to be leading contributing factors in the reported increase in domestic violence cases involving women.

Economic self-sufficiency is frequently the difference between violence and safety for many victims of domestic violence. While the institutional focus has been on the financial crisis, attention also must be paid on how victims of domestic violence can be protected and empowered. By controlling and limiting the victim’s access to financial resources, a batterer ensures that the victim will be financially limited if he/she chooses to leave the relationship, having to face the choice of living with scarce resources or remaining in an abusive relationship.

That is why Financial Education, knowing and understanding the complex principles of earning, spending, saving and investing, is an essential tool for preventing abuse. As part of MALDEF’s Domestic Violence Prevention Program and in partnership with the Community Financial Resource Center (www.cfrc.net) we offer a workshop targeted at issues such as: Budgeting, balancing a checkbook, keeping financial records safe & confidential, preventing identity theft, taking a financial inventory, building a financial base, understanding predatory lending, managing money, debt management, developing financial goals, building good credit, and protecting against financial loss.

The goal of these workshops is to provide economic independence, a way to patch income during a transition, an opportunity to create a new start and personal empowerment.

If you are in an abusive relationship and are interested in taking steps towards financial self-sufficiency, please read the following tips[1]:

- Keep your personal and financial records in a safe location. Leave copies with a trusted friend, relative or in a bank safety deposit box.
- Compile an emergency evacuation box with copies of your family’s important records and documents.
- Keep copies of car and house keys in your wallet, along with extra money and emergency phone numbers.
- If you use the internet to explore domestic violence issues or for regaining financial independence, make sure your abuser cannot trace your activities. Be cautious about giving out personal information over the web and think about having mail or emails sent to a friend or to your workplace.
- Take a financial inventory.
- If your partner controls the money, look for ways to find out more about his/her income, financial property, real property and debts.
- If you are thinking about leaving your relationship, find out what it would cost you to live on your own, and consider starting to set aside your own money, even if it’s just a few dollars, and keep it safe.
- Find help by contacting the National Domestic Violence Hotline (1-800-799-SAFE) or visit the library to find resources on money management and domestic violence.
- Obtain a copy of your credit report from any of the three major credit bureaus, review the information, and report any fraud, disputed claims, or identity theft. You can obtain a copy of your credit report online or over the phone by contacting the Equifax (1-800-685-1111), Experian (1-888-397-3742), and TransUnion (1-800-888-4213) credit bureaus.

Designing a financial strategy should be part of an overall comprehensive safety plan. To learn more about how to develop a general safety plan visit MALDEF’s Domestic Violence Prevention page or call our Information Line at 1-866-NO-ABUSO (1-866-662-2876).

[1] Adapted from National Coalition Against Domestic Violence (NCADV) Hope and Power: For Your Personal Finances publication, available at www.ncadv.org.

Bank on LA looks to Citibank's Ramp UP Accounts

2009-05-03T16:39:00.000-07:00

Bank on LA looks to Citibank's Ramp UP Accounts
by Hassan Nicholas

Thanks to Veronica Lopez, consultant for a United Way IDA (Individual Development Account) Program with CFRC (Community Financial Resource Center) and her insight we have brought Citibank's/United Way's Ramp-UP Accounts accelerated savings program to the Bank on LA campaign.

The program was brought in two weeks ago and has already started to be promoted through the Bank on LA campaign via financial education workshops taught throughout the city. Participants of CHIRLA's (Coalition for Human Immigrant Rights of Los Angeles) workshops were the first to be formally exposed to the program. Ana Noguez of MALDEF (Mexican-American Legal Defense Fund) and Altagracia Garcia of CHIRLA helped coordinate the Spanish-language workshop, which concluded a series of workshops at CHIRLA's community center.

The program, which will last for a duration of 15 months, allows participants to accelerate their savings by obtaining a high rate "subsidized interest rate". With flexible eligibility requirements, Ramp-UP is the perfect segue for someone with strong inhibitions about opening a bank account and barriers to eligibility (citizenship status, CheckSystems, etc.) to hold a special account with a leading bank for a specified period of time.

One of the biggest lessons that this program will teach its participants is the rewards of earning interest on your money. For those who are accustomed to hoarding their money under the mattress this should present itself an attractive option. Another attractive feature is that almost anyone of lower income can qualify.

Hopefully, this "introduction" will help remove the fear and intimidation that prevents so many people from approaching a bank about their services and encourage them to explore other alternatives in regards to managing their money.

A Penny for a Thought About Savings...

2009-04-08T16:41:00.001-07:00

Some Tips for Saving...
by Hassan Nicholas

Use a clothes line, save a whole dime! Hang your clothes to dry in the morning before you leave for work. By next morning your clothes will be fresh and dry. Plus, they'll last longer.
Keep your change from all your cash purchases in a container, preferably a large see-through jar, so you can visibly see your savings increase. Every quarter (every three months) empty the savings into a savings account, like from an online bank to receive potentially higher interest, and let it accumulate. Once you have enough you can transfer those savings to a CD. This is also a good method to use if you're interested in investing. You can consider your "penny jar" savings as "play money" to use for opening up an online brokering account. BUT WAIT, when we say change we mean bills. Why not pennies, nickels, dimes, quarters? Well, unfortunately, what started out as a great way to save has turned into another opportunity for banks and coin machines (Coin Star) to charge a fee for your change. If you can get a 100% face value of your savings what's the point? While not every bank charges to accept your bag of coins, some do or at least require that you roll them yourself. Coin Star on the surface looks great because it easily converts your coins into dollars. However, a closer look at the fees and you might decide there's better ways to convert your savings into cash. Besides, saving $1 bills can accelerate your savings faster. Banks don't charge to accept anything $1 or more. So, save $1 bills instead of change. If you prefer to save change, you'd be better off using your change for purchases...like stamps, parking meters, etc OR find a bank or credit union that will do it for free.
Designate a day or two out of the week where you and your family must do whatever it takes to cut down on spending. Whether it be using only coupons to buy groceries, taking advantage of free services, or doing some activity that requires little or no money.

Consider this #1

2009-03-24T17:29:00.000-07:00

5....uhhh 6 Reasons Why You Need A Banking Account

2009-03-17T18:20:00.000-07:00

Convenience
Having a checking account where you can deposit checks, being able to use a debit card to make purchases and withdraw money from ATMs all help reduce the need to carry cash. As the world becomes more and more reliant on new technology, carrying cash will seem old-fashioned and being "electronic" will be the standard. And there are advantages to being able to bank online: You can pay bills and keep track of your spending. You can have checks automatically deposited into your account. You can avoid paying for money orders. Plus, you have access to your bank 24/7.

It's Cheaper
If your using check cashers, pay day loans, etc. then you are exposing yourself, to what can amount to, exorbant fees and a cycle of debt. Why pay to be able to spend your hard-earned money when you can deposit and cash your check through a bank for free?

Safer than Your Mattress
Sure, many banks fell victim to the current economic crisis. But, if you're bank was insured by the FDIC (which most are) and you had less than $200,000 in your accent, you were OK. When you horde cash money in your house or some other storage, you risk losing it to an accident, theft, or some unexpected circumstance. But, even if you store your money in a 30-inch thick safe with fingerprint detection it does nothing against protecting you from the ever omnipresent inflation. Which brings me to my last reason...

Protection from Rising Costs
How much does a loaf of wheat bread cost in the store today? How much did that same loaf of bread cost...10 years ago? Inflation shows that rising costs can and will affect everything, from your turkey sandwich to gas. If your money is stored under your bed, unfortunately, $1,000 in 1960 would still be worth $1,000 in 2009.

Put it this way. In 1967 you could buy a new Camaro for $3,000. A new Camaro now would cost you at least $25,000. Imagine if you had been saving in cash to buy a new Camaro. When you finally reached your $3,000 you would've only saved 12% of the new price of that car. If you don't store your money in an interest bearing account you miss out on the opportunity to make your money grow with inflation. Honestly, the interest you earn is not all that spectacular. But, at least you can have your money grow faster then prices do.

Direct Deposit: One Simple Step Can Safeguard Social Security Payments

2009-03-12T00:05:00.000-07:00

Each month, millions of Americans receive Social Security and other federal benefit payments by paper check. This may include you, or a loved one. What many people may not realize is that checks can be lost, stolen or fraudulently endorsed. Direct deposit eliminates the risk of forged signatures and helps safeguard against identity theft.

Through the Bank on LA campaign, CFRC (Community Financial Resource Center) will be working with Go Direct, a national campaign sponsored by Treasury and Federal Reserve Banks, to encourage senior citizens, people with disabilities and others who receive federal benefits to switch to direct deposit.

Signing up for direct deposit is free, quick and easy – and can help protect you from identity theft. You can sign up by calling the Go Direct helpline at (800) 333-1795, going to www.GoDirect.org, or visiting your local bank or credit union.

The facts are clear – using direct deposit is safer, easier and more convenient than paper checks. According to information from Treasury:

Nearly 60,000 Treasury-issued checks issued in fiscal year 2007 were fraudulently endorsed, totaling $56 million in estimated value.
When there’s a problem with a Social Security payment, nine times out of 10 it’s with a paper check, not a direct deposit payment.

With direct deposit, your money goes straight to your account on payment day, allowing you more control over your money – and your time. It's a perfect way to introduce those, who don't have bank accounts, to alternative ways in holding and maintaining their money.

Bank on LA: Meet LA Mayor Antonio Villaraigosa

2009-03-11T23:19:00.000-07:00

The City of Los Angeles' Mayor, Antonio Villaraigosa, is ready to launch the Bank on LA campaign. This initiative is designed to encourage residents of Los Angeles who are "unbanked" (meaning functioning in the cash economy with the assistance of check cashers, payday lenders, and other alternative financial institutions) to develop their first banking relationships and begin an asset-building lifestyle. Bank on LA delivers key information on bank product affordability, accessibility, and bank security without marketing or promoting the product of any single bank.

Please join us on Tuesday, March 24th at 10:30am for the press conference, hosted by the Community Financial Resource Center (4060 South Figueroa Street, Los Angeles, California, 9037).

Those interested will have an opportunity to meet the Mayor, Antonio Villaraigosa at the press conference launching of the Bank on LA program.

We are searching for people that are currently unbanked and are interested in sharing their story as well as opening a checking/savings account the day of the press conference. We are also looking for people who previously used alternative financial institutions, but are now linked into bank services, who want to share their experience transitioning from unbanked to bank services. Spanish speakers welcome to participate.

Please contact Hassan Nicholas at (323) 846-1434 or HNicholas@cfrc.net for more information.

If you plan on attending the Bank on LA launch, please RSVP to Ashley Schweickart@lacity.org or call (213) 473-9788.