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 LifeWay Credit Union are ready to help with all your auto financing needs. Stop by or call today at 615-251-2091.

Home Seller Tips in a Tough Market

Despite a slight upturn in new housing starts, sellers still face an environment of tight credit, low property values and reluctant buyers. Be prepared to offer incentives for buyers to sign on the dotted line (Money July 2009).

After plummeting to a post-World War II low in April, construction of new housing units rose 17.2% in May (MarketWatch.com June 16). And yet, the average selling price of existing single-family homes was $169,000 in the first quarter of 2009--an $11,000 drop from fourth quarter 2008, according to the National Association of Realtors.

People are still buying, but they may need an added incentive to complete the purchase. If you are trying to make a quick closing on the house you're selling, be willing to make compromises, spruce up your home, and tune in to the buyer's needs:

• Undercut the competition. To sell fast, dropping your price 10% to 15% below comparable homes in your neighborhood should help get your listing noticed. Also, if you can afford it, set your home at the lowest end of its price range. A $199,000 price tag is a deal to buyers in the $200,000 to $250,000 range.
• Use staging techniques. Focus first on improvements that will get the most buyers to your front door. Worthy fixes: power wash your siding, paint the front door, replace the knocker or handle, and give your garden some serious sprucing. On the inside, applying a fresh coat of paint, eliminating odors, and decluttering can go a long way. But don't overspend--the cost should be worth the payoff.
• Target first-time buyers. Thanks in part to the $8,000 first-time homebuyer tax credit, and in part to super-low mortgage rates, first-timers bought more than half the homes purchased so far in 2009.
• Use the Internet. Establish an online presence and spread the word through social networks such as Facebook and Twitter. Sprinkle your description with desirable, accurate keywords and amenities--deck, pool, granite counters or fireplace, for example. Also, consider posting pictures taken with a wide-angle lens--this view makes rooms appear larger.
• Offer extras. Another way to reach first-time buyers: Offer add-ons. Many people are leaving the renter's life, in which landlords tend to the maintenance issues, and they might appreciate a home warranty that provides some coverage when major problems arise. Offering help with closing costs or mortgage protection can also trigger potential buyers' interest (MarketWatch.com June 15).
• Stress a speedy deal. It can take months to close on a short sale or a foreclosed property, but if you're a traditional seller, stress to buyers that you can close the deal in just a few weeks. This could strike a "buy now" mentality among those who fear another buyer might come along and snatch the deal.

New-Car Tax Credit

That new-car smell just got better, thanks to legislation that provides tax incentives to new-car buyers.

The U.S. Department of Treasury recently announced that the American Recovery and Reinvestment Act of 2009's new-car tax deduction now extends to consumers in states without a sales or excise tax (boston.com June 17). These states include Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon.

If you live in any of the other 44 states, you're still able to deduct state or local sales or excise taxes paid on the qualifying vehicle purchase (ustreas.gov June 11).

Here's what you need to know to qualify for this special tax deduction:

• Purchase deadline.The new car, light truck, motor home or motorcycle must be purchased after Feb. 16, and before January 1, 2010.
• When to file.The deduction applies only to your 2009 federal tax return, which you'll file in 2010.
• Itemized or not.You can claim the special deduction regardless of whether you itemize deductions on your federal tax return.
• Price limit.Your deduction is limited to fees or taxes you paid on up to $49,500 of the vehicle's purchase price.
• Phase-out.The deduction begins to get smaller if your modified adjusted gross income is at $125,000, and the deduction is exhausted at $135,000 for individual filers. For joint filers, the special tax deduction is phased out at between $250,000 and $260,000 of your modified adjusted gross income.

Credit Unions Top Satisfaction Survey

Credit unions are meant to serve their members, and they are known for achieving high customer satisfaction. So it comes as no surprise that a recent study shows credit unions outperform both large, national banks and community banks in terms of customer satisfaction with online banking.

A 2009 ForeSee Results/Forbes.com study of online banking gave credit unions a customer satisfaction score of 86, higher than both large banks and smaller, community banks. Why are credit union members so satisfied with their online banking? They are happier with tasks, transactions, and Web site performance, and they feel more comfortable with the privacy of their online banking.

"When it comes to personal attention, high-quality service, and low fees, credit unions continue to knock the socks off other providers in the financial services marketplace," says CUNA President and CEO Daniel A. Mica. "Credit unions are not-for profit cooperatives, which means member service is their reason for being."

You Can Teach Your Preschoolers About Money

When it comes to money, your preschooler is learning something every day, even if only by watching you at the store. If you want to send a particular message about money's proper use and importance, start now.

A research study released earlier this month by the University of Wisconsin-Madison revealed that very young children--as young as three years of age--are capable of learning key money concepts that help them become financially literate adults. These skills can be developed from social interaction and observation, and parents play a key role.

Take time to teach the basics of sharing, saving and spending. Experts at the Credit Union National Association's Center for Personal Finance offer these tips for introducing money as a topic of discussion with your little one:

• Look for the teachable moment. You don't need a classroom to teach. A "teachable moment" is any time that your child is ready for new ideas. For example, getting cash from an ATM is a good time to explain that you put money into the credit union or bank earlier. The machine gives you your money back when you need it.
• Let children make mistakes. Losing money and being unhappy with poor spending decisions are more effective lessons than a lecture.
• Watch TV together. Preschoolers cannot understand the difference between TV programs and commercials. Choose TV shows to watch with your child. Talk about the ads and what they are selling. Explain that choosing what to buy is like choosing what TV shows to watch.

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Simplify Your Finances

The recession has many consumers looking at their personal finances through a microscope to uncover even the smallest speck of savings. The best approach, though, may be to take advantage of a few smart moves and tools to help simplify certain tasks (Kiplinger.com June 2009).

Make some smart moves now for a brighter financial picture later:

• Sign up for online bill-pay. You'll avoid costly late payment fees and eliminate envelopes and stamps. Have your bills e-mailed to you to reduce paper clutter. And with online banking, your balances and outstanding checks are immediately available.
• Streamline retirement savings. Sign up for your company's automatic 401(k) enrollment plan if you're not participating now. Consider a target-date fund that adjusts your savings to less risky investments as you approach retirement. And consider consolidating your retirement accounts from previous jobs into an individual retirement account (IRA) for easier management later.
• Use shopping bots to compare prices. Sort retailer listings by price, and set alerts so you'll be notified when prices drop. Consider BizRate, Shopzilla, Google Product Search, MySimon, PriceGrabber, Shopping.com, and Yahoo Shopping (Consumer Reports Money Adviser June).

Here's a tip: Reserve several hours one weekend for a budget boot camp (Money June). Review your credit union and credit card statements for the past three months and identify recurring expenses and amounts. Then identify one or two line items to cut so you can balance your budget and meet your short-term and long-term goals. Making a sacrifice now - such as getting rid of a second vehicle and the associated gasoline, maintenance, and insurance expenses - may be necessary to get through these difficult times and position you and your family for better times ahead.

Women at Higher Risk for ID Theft

Women are more likely to be a victim of identity theft - and lose more money - than men, according to national survey results released by Norwalk, Conn.-based Affinion Security Center (eMarketer.com May 19).

The good news is that women are more likely to change behavior after the experience.

Twenty-eight percent of women surveyed had their identity stolen, compared with 21% of men. And 17% of women surveyed lost $1,000 or more that they never recovered, compared with only 10% of men reporting losses that high.

Survey respondents were asked if they changed behavior to protect themselves. Responses revealed that women are more likely to take aggressive action - such as subscribing to a credit-monitoring service, traveling with limited personal information and shredding documents before disposing of them - to avoid becoming a victim twice.

An identity fraud survey report released in February by Javelin Strategy & Research revealed that fraud attacks involving women occurred most often in person, such as in restaurants and stores, rather than online.

Lin Standke, Credit Union National Association's manager of youth programs and a victim of identify fraud, offers these suggestions for protection:

• Zip it up. The No. 1 method for stealing your personal information is through lost or stolen wallets, so keep your plastic safe. Use a purse with a zipper rather than an open bag. Don't hang your purse on the back of a chair at a restaurant. Instead, keep it between your feet or on your lap.
• Be consistent. Keep your plastic in the same place and put it back there every time you use it. That way you'll notice immediately if a card is missing. Better yet, carry only the card you plan to use and your driver's license.
• Keep it in sight. Ask to see a manager if a store employee steps into a back room to swipe your credit card when there is a machine at the cash register. This is not a typical procedure (except in restaurants), and the clerk may be copying your information.
• Take online precautions. Keep your virus protection programs up to date, install a firewall, and don't click on links within e-mail messages.
• Check account activity frequently—online. Most credit and debit cards have online access so you can review your purchases. If you find a charge you didn't make, report it immediately.
• Lock it up. Keep personal information such as account numbers, passwords, and Social Security numbers in a safe, locked place at home.

If you can come up with the cash, make energy-efficient home improvements now to receive savings from both tax credits and lower energy bills.

Thanks to recent stimulus package changes, you may be eligible for federal tax credits, which are generally more valuable than tax deductions. A tax deduction lowers your taxable income based on your tax bracket, while a tax credit gives you 100% of the credit back and is not income based.

Here's an example: If you are in the 35% tax bracket, a $1,000 deduction reduces your tax bill by $350, but a $1,000 tax credit reduces it by the full $1,000. Claim the credit on your federal income tax form.

Tax credits are available for 30% of the cost of these energy-efficient home improvements, up to $1,500, through 2010 for existing primary homes only:

• Energy-efficient furnace, air conditioner, heat pump, or boiler;
• Insulation;
• Skylights and storm windows and doors;
• Non-solar water heater;
• Roofs (metal and asphalt); and
• Biomass stoves.

Tax credits are available for up to 30% of the cost of these energy-efficient improvements, with no maximum dollar amount, through 2016 for existing primary homes, new home construction, rentals, and secondary homes:

• Geothermal (ground-source) heat pump;
• Solar panels;
• Solar water heater; and
• Small wind energy system.

Don't have the cash available? Check with LifeWay Credit Union for a great deal on a home equity loan!

source - cuna.org