Financial Wellness NE Zone 2014

Thursday, March 6 and Sunday, March 9, 2014 NORTHEAST: JI LC NA NO RF WV

Financial Wellness

SAVE on tech choices Plan your financial

FUTURE REFINANCE Determine the best time

WOMEN

Take control of your finances

A special advertising section of

Financial Wellness | Thursday, March 6 and Sunday, March 9, 2014

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ThisWeekNews.com

KEMBA can help you put your tax refund to work KEMBA Financial Credit Union is proud to have served central Ohioans for more than 80 years. KEMBA began as the Credit Union for Kroger employees, but has since grown to be the largest credit union in Central Ohio, serving more than 70,000 members and 150 select employer groups.

Since its inception in 1933, KEMBA has served the community as a not-for-profit financial cooperative, owned by its membership. What does that mean to you? KEMBA is not a bank, but more of a financial partner. In fact, because KEMBA exists solely to serve its members, not thirdparty stock holders, profits are returned to members in the form of lower fees, and better rates; however, credit unions, like KEMBA, offer all the same financial products as banks, but with better rates, lower fees and people who care about your financial well-being.

Unlike banks, KEMBA’s main purpose is to promote thrift by offering a wide selection of financial options. Decisions are made locally, with the members’ best interests in mind and KEMBA representatives are always happy to meet with members to help them make the right decisions specific to their individual needs.

This is the time of year when American’s begin to get tax refunds, and it is more important than ever to put a plan

together and make sure you use those extra funds wisely.

KEMBA wants to help you think about options that will help you financially in the long run, instead of spending your refund right away.

Think about the following uses: • Start a “rainy day” fund.

The term “rainy day” is misleading, as unexpected financial woes happen in any weather. Car repairs, home maintenance, and health expenses always occur when they are least expected. Putting money aside helps you manage the unimaginable. At KEMBA you can set up an account specifically for this purpose, and even automatically deposit money so it’s there when you need it most.

• Pay down a credit card or loan balance. Nothing hampers a budget like interestladen monthly loan payments.

Whether in the form of a credit card minimum amount due, or repaying a home equity line, shrinking your balance due can minimize your payment and shorten the life on the loan; and in some cases, help increase your credit score.

KEMBA can even help you determine a plan to consolidate your debt to help pay it off more quickly.

• Invest it long term. The further away you are from retirement, the more your refund can benefit you. Talk

establish your account.

Nothing hampers a budget like interest-laden monthly loan payments.

Whether in the form of a credit card minimum amount due, or repaying a home equity line, shrinking your balance due can minimize your payment and shorten the life on the loan; and in some cases, help increase your credit score.

to KEMBA about long term investment options, and watch your money grow. We have Certificates and IRAs to help you meet long term goals, and even offer retirement planning services. Opening an IRA between now and April 15 may even have a positive effect on your 2013 taxes.

• Invest it short term. While returns on short term investments, such as Certificates of Deposit, are at record lows, they are still safe and earn interest. If you are looking to make a major purchase in

Financial Wellness Thursday, March 6 and Sunday, March 9, 2014 sales director: Doug Dixon retail sales manager: Heather Kritter account executives: April Clausi Gail Fullerton Chris McMillan Michelle Rettig Jason Willis

Financial Wellness is a special advertising supplement to ThisWeek Community News. Financial Wellness is not responsible for opinions and views expressed in the paid advertisement in the business profiles. All real estate advertising herein is subject to the federal Fair Housing Act, which makes it illegal to advertise “any preference, limitation or discrimination because of race, color, religion, sex, handicap, familiar status, or national origin, or intention to make any such preference, limitation or discrimination.” We will not knowingly accept any advertising for real estate which is in violation of the law. All persons are hereby informed that all dwellings advertised are available on an equal opportunity basis.

SAVINGS PRODUCTS LENDING SOLUTIONS FINANCIAL EDUCATION

We will help you save money, make money and eliminate or reduce fees. Welcome to your credit union.

There is no better time than now. Open your account today.

Westerville

Gahanna

German Village

www.educu.org • 614-221-9376 Offers may be subject to credit approval. Some restrictions may apply. Membership eligibility is required.

a year, investing short term can grow your refund into a generous down payment. See how KEMBA’s rates compare to your traditional bank’s rates at kemba.org.

• Start a college savings plan. If your children have college aspirations, consider using your refund to start an education savings plan. The cost of attending college is forecasted to rise significantly over the next decade, so investing in higher education now is smart. Ask your local KEMBA representative to help you

Whatever you choose to do with your tax refund, we encourage you to ask KEMBA for advice. Whether you’re planning to save it, repay debt or make a down payment on a car, your credit union can help you make the most of it.

With any of the options you choose, banking at KEMBA is easy. We have branches across central Ohio, or you can bank at one of more than 5,500 Shared Branching locations nationwide, or utilize one of nearly 50,000 ATMs across the country as part of a surchargefree alliance. Plus, KEMBA offers free and convenient online and mobile banking.

Remember, banking at a credit union, like KEMBA, is a smart alternative to banks because you are an owner, not just a customer. For more information about how KEMBA can assist you and to find out why it’s a better way to bank, visit kemba.org.

(614) 235-2395 kemba.org

Determine the best time to refinance a mortgage Refinancing a mortgage is advantageous to homeowners for a variety of reasons. The primary reasons people refinance their mortgages are to reduce their monthly payments or free up equity to use toward home improvements or other necessities.

Lenders will frequently advertise that “now”is the time to refinance, but people may want to get all of the facts before making their decisions.

A low interest rate is not reason alone to refinance. Conventional wisdom has long suggested that borrowers wait to refinance until interest rates drop 2 percent below their current rate. While a low interest rate is important, there are several other factors to consider.

• Closing costs: Refinancing a home is an expensive undertaking.

While it can effectively shave $100 or more off your monthly payments, there is a financial outlay during the process, which includes closing costs. A person can expect to pay anywhere from 2 to 5 percent of the loan’s value in closing costs when refinancing. Lenders used to enable some to roll the cost of the closing into the mortgage, but stringent rules have changed the way many banks now do business. If the finances are simply not there to cover the closing costs, refinancing may not be an option.

• Credit rating: If your credit rating is better now than it was when you initially earned your home loan, then this might be a good time to refinance. Not only will a person benefit from a low market rate, the interest rate may be

even lower because lenders look more fondly on you now than they did years ago. Lenders often base their assessments of borrower reliability and stability on those potential borrowers’ credit scores, so a strong credit score makes you look better in the eyes of lenders.

Borrowers with poor credit ratings may not benefit from refinancing.

• Income: A person’s debt-to-income ratio is another factor in determining mortgage interest rates and approval.

A positive change in income status as well as reduction in debt could make it a good time to refinance.

• Adjustable rate mortgages: Many people opted for adjustable rate mortSee REFINANCE on page 3

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Financial Wellness | Thursday, March 6 and Sunday, March 9, 2014

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REFINANCE Continued from page 2

Women tend to save far less than men when planning for retirement – but have higher retirement expenses and longer life expectancies.

Women: Take control of your finances in 2014

By KATE LOGSDON When you think about all that women have accomplished in the last several decades, it’s pretty astounding. Just consider their buying and earning power: According to Nielsen (August 2013), women now control approximately $12 trillion of the U.S. share of $18 trillion in global consumer spending.

And approximately 28 percent of today’s working married women out-earn their husbands, according to Census Bureau data from USA Today.

But for as many strides as women have made, they still only earn $0.77 for every dollar earned by a man, according to Census Bureau data. Women tend to save far less than men when planning for retirement – but have higher retirement expenses and longer life expectancies.

That’s why it’s increasingly important for women to take control of their financial futures by employing smart investment strategies. And before you go thinking, “Investment strategies are for the wealthy,” think again. There are a few simple steps every woman can take now to positively impact her long-term financial outlook.

1. Talk to a financial advisor: A financial advisor can help you see the big picture and identify practical ways to achieve your vision.

They can help determine whether or not you’re saving enough and if you’re investing in the right places, according to certain factors including, but not limited to, your goals, objectives, and tolerance for risk. Financial advisors aren’t exclusive to billionaires, either.

Many banks have financial advisors who are available to work with customers at all levels of income, age and net worth. But be sure you are comfortable with your financial advisor; if he or she seems disinterested, you’re in the wrong

office.

2. Pay yourself first: The only way to accumulate wealth is to save more than you spend.

Barring some unforeseen windfall, Kate Logsdon like a lottery winning or an inheritance, every woman will probably need a retirement account to rely on. So set aside a portion of your pretax paycheck to a 401(k) or IRA, especially if your employer offers a contribution match. Maybe you can only contribute 2 percent of your income – that’s fine! Try setting a manageable schedule under which you raise your contribution by half a percent. Start small and absorb the reduction in your cashon-hand steadily. In a few years, you’ll be amazed at how much you’ve saved. The sooner you start saving (and investing), the better off you’ll be.

3. Consider a spending freeze: Not sure your bank account can weather a “pay yourself first” savings strategy? Consider putting yourself on – and sticking to – a three-month spending freeze. For one month, track every dime you spend. Then, cut out all of your extra expenses: Eliminate the premium cable channels (or cable entirely), eat at home and resist the buy-one-get-one sales. This will reset your spending cycle so you can gain better control of your finances.

4. Avoid the temptation to tinker: The biggest mistake a woman can make is changing your 401(k) too frequently. A good rule of thumb might be to review your 401(k) when you change your clocks. Ensure that your funds are

keeping pace with the market, reallocate if necessary and then walk away. Remember that your 401(k) is a long-term plan, so it should withstand the ebb and flow of the market. You just have to be patient and avoid the temptation to constantly fine-tune your investments.

Now, if you’re not comfortable with the fluctuations of your portfolio, it may be time to adjust your asset allocation1 and the amount of risk you’re taking on.

Taking control of your financial future is empowering and a bit daunting. Ask for guidance, contribute as much as you can, stay on top of your spending and stay diligent about your investments.

You’ll be impressed with how your wealth grows.

1 Asset allocation does not guarantee better performance and cannot eliminate the risk of investment loss.

Kate Logsdon is Vice President and Wealth Management Advisor at Fifth Third Securities (Central Ohio affiliate). *Fifth Third Securities is the trade name used by Fifth Third Securities, Inc., member FINRA/SIPC, a wholly owned subsidiary of Fifth Third Bank, a registered brokerdealer and a registered investment advisor registered with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training.

Securities and investments offered through Fifth Third Securities, Inc. and insurance products: Are Not FDIC Insured, Offer No Bank Guarantee, May Lose Value, Are Not Insured By Any Federal Government Agency, Are Not A Deposit, Insurance products made available through Fifth Third Insurance Agency, Inc.

gages when buying homes years ago. Over time, their monthly payments may have increased considerably, making it nearly impossible to afford a home. Refinancing for a fixed-rate mortgage, regardless of the current interest rate, will likely ease some of your financial burden.

• Home value: A higher home value means more equity in the home. This money can be used to pay down debt or for home improvements that further improve the value of the home and property. It is important to speak with a real estate professional to determine if home values have spiked in a particular neighborhood and to gain an accurate appraisal of the home. This will help determine if refinancing is frugal.

• Interest rates: Lower interest rates often motivate homeowners to refinance, as a lower interest rate can save homeowners a substantial amount of money over the course of their loans.

However, refinancing too soon (within 4 years of the original home loan) may put homeowners in a negative light. Lenders may see borrowers who refinance too soon or too frequently as risky borrowers who cannot successfully manage their money.

• Prepayment penalties: Certain mortgages have prepayment penalties built in. Should a person pay off the mortgage too early, usually within two to five years, 2 to 4 percent of the home’s loan value must be paid out. Refinancing counts as paying off one loan and opening up another.

Penalties could deter a person from refinancing too soon.

Determining the best time to refinance your home mortgage takes effort on the part of the borrower and information about market trends.

By doing one’s homework and being aware of certain factors, a person can save money by refinancing a home loan. (MNS)

‘Own it’ to win it!

Join Telhio Credit Union with a new checking account now for your chance to win a new Jeep Wrangler!

V s elh o.org for de a ls

Jeep Wrangler is a registered trademark of Chrysler Group LLC. Giveaway is open to all Telhio Credit Union members ages 18 and over. Giveaway runs from January 1 to June 30, 2014.

Winner’s selection will take place on or about July 1, 2014. No purchase is necessary and a purchase does not increase the odds of winning. Odds are based on the number of entries received. One 2014 Jeep Wrangler will be given away at an estimated value of $24,593. Winner will be selected at random from the number of eligible entries received. Winner will be notified by phone and posted to Telhio’s website and Facebook page. Mail-in entries may be sent to Telhio Credit Union, Attention: Jeep Giveaway, 96 North Fourth Street, Columbus, Ohio 43215.

Mail-in entries must include name, address and telephone number. The cash value of the prize may be considered income and will be reported on IRS Form 1099-MISC. Winner should consult a tax advisor for tax advice. Void where prohibited. Additional terms and conditions apply. Please visit Telhio.org for the Giveaway’s Official Rules. Telhio is open to everyone who lives, works, worships, or attends school in Franklin County and selected surrounding communities. Offer subject to credit and underwriting guidelines. Telhio reserves the right to modify or eliminate this offer at anytime. Federally insured by NCUA.

Financial Wellness | Thursday, March 6 and Sunday, March 9, 2014

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ThisWeekNews.com

How to save money on tech purchases Consumers sometimes buy gadgets out of necessity, but often such purchases are fueled by a particular passion or hobby. Consumers line up for the latest incarnation of a smartphone or musthave gaming system, but just because a gadget is the current must-have item does not mean consumers have to overpay for it.

Without knowing how much products really cost, it can be challenging to gauge just what is a good deal. Unfortunately, information on price markups on popular items is relatively difficult to come by. There are a wide array of retailers, from boutique shops to online warehouses, so there is no standard pricing rule.

According to the site Wise Bread, a forum on living frugally, electronics have the lowest price markup rates of any products at just 8 to 10 percent. Armed with this information, those shopping for the latest gadgets can more accurately compare prices to find the best values. Here are some other ways to save money on electronics.

• Compare, compare, compare. Stepping into the first store you see and making a knee-jerk purchase is not often the way to get the best deal. Whatever the purchase, always do your homework, comparing prices online or in-store to determine the best values. Look at potential hidden fees, such as shipping

charges (when buying online) or restocking fees.

• Scour for coupons. Explore all means possible to get coupons for your purchase. Shop when stores are having doorbuster sales and then combine this discount with coupons found online, in newspapers or through community coupon books. It’s always worth a few minutes of your time to search for a discount code or a coupon. And even if you don’t have a coupon, do not be shy about asking a checkout employee if any discounts exist.

• Skip some of the frills. If you’re in the market for a new high-definition television but are scared away by some of the price tags, separate what you need from what you want.

When you strip away certain features, such as internet connectivity or home maintenance software, you could save hundreds of dollars. With any purchase, start at the base model, which may fit your needs without breaking the bank.

• Buy used or refurbished.

Technology changes at breakneck speed. A tablet that was once the hot item could be outdated in a few months.

You can save a good deal of money by purchasing an older, yet still functional model or buying a rebuilt or used item that is in good condition. Shop refurbished items directly from manufacturer Web sites.

Companies like Dell and Apple offer used, warranty-backed

devices for deep discounts over new items. Very often “refurbished” only means returned and reboxed. Don’t overlook sites like Craigslist and Ebay as well. Friends also

Know your saving options Everyone knows the importance of having money saved, but we also know that sometimes life can get in the way. Unexpected expenses such as family or health emergencies, being laid off from a job, car problems or simply needing a new furnace can quickly drain a savings account without proper planning. Here are a few options to help grow your savings.

1. Find the savings account that’s right for you: Most banking institutions offer many different savings accounts with different interest rates, and it’s important to find the one that fits your plan. Perks such as automatic savings transfer or higher interest rates based on the amount in your account are just a few things to consider.

2. Consider a Health Savings Account: During a health emergency, finances are the last thing you want to worry about. Health care costs can accumulate quickly, even after your insurance covers some of the expenses. Health Savings Accounts (HSAs) can help offset most, if not all of your out-of-pocket expenses, and can be used for you, your spouse and your dependents.

3. Get higher rates by saving more over time: If you can afford to place your money in deposit for a set period of time, a certificate of deposit might be right for you. For a limited time, Telhio Credit Union will provide a $200 new certificate bonus when you invest $15,000 in a CD with terms 18 months or longer. * Telhio Credit Union is open to everyone who lives, works, worships or attends school within Franklin County and surrounding communities. Founded in 1934, originally as the credit union for the Columbus Telephone Co., Telhio is a not-for-profit financial cooperative where

its members are also its owners. Driven by its philosophy that members come first, Telhio is committed to the highest standards of responsibility and conduct. Telhio offers a variety of innovative programs, services and products to support its members’ financial needs.

Telhio offers six branching offices throughout central Ohio and nearly 4,000 shared branching locations nationwide. Additionally, Telhio credit union participates in the highest level of combined federal and private share savings insurance available, insuring deposit accounts up to $500,000.**

Learn more at www.telhio.org or by calling (614) 221-3233.

*$200 cash bonus when you open a CD with a term of 18 months or longer. $15,000 minimum deposit. New money only. If CD is closed prior to maturity date cash bonus will be forfeited. This promotion cannot be used in conjunction with any other promotional offer. Telhio may amend or suspend this offer at any time without harm or damage to the member. Cash bonus may be considered income and reported on IRS Form 1099-MISC. **Federally insured by NCUA. Additional coverage up to $250,000 provided by Excess Share Insurance Corporation, a licensed insurance company.

may sell you items for an even bigger discount.

• Look for items that are multipurpose. Instead of spending money on a separate phone and MP3 player,

get a smartphone that does both. It may not pay to have a handheld gaming device and a tablet that can play thousands of games.

• Have a little patience.

Products tend to be most expensive when they are initially introduced. Retailers and manufacturers count on new devices luring in customers willing to pay any price to be the first to have a particular item. But prices drop as gadgets become more mainstream and competitors flood the market with their own versions. Wait a few months before making your purchase, and you’re likely to save a substantial amount of money.

• Skip the extended warranty. Extended warranties are often unnecessary when buying electronics, as such products are usually covered by very good manufacturers’ warranties. Products like PCs, smartphones and tablets usually have a very long life.

There’s a better chance that new software will come out or a newer generation of your current item arrives before the one you own breaks down.

• Sell your own used stuff.

You can offset the cost of buying a new device by clearing out your own outdated merchandise. Companies like Gazelle will buy used phones and other electronics. While you may not make a fortune, a few dollars here and there can help fund upcoming purchases.

(Metro News Service)

Don’t let debt sneak up on you Steering clear of debt is a goal for many men and women, but wanting to avoid debt and avoiding debt are two different things. Some people accumulate debt when they lose their jobs, while others rack up large credit card bills because they simply can’t curtail their spending habits. Each of these scenarios can be avoided, as there are many precautions men and women can take to ensure they are not victimized by consumer debt.

• Create an emergency fund. Layoffs or other unforeseen issues that threaten your income can wreak havoc on your finances, especially if you did not have an emergency fund to handle such situations. When beginning an emergency fund, contribute as much as you can and do so on a schedule, making deposits once a week or once every two weeks depending on when you get paid. A good rule of thumb is to have several months’ salary set aside in your emergency fund, but don’t feel intimidated when starting from scratch.

• Pay off your balances before making any additional purchases. Using credit cards can positively impact your credit rating, but only if you’re paying off your balance in full each month and not maxing out your cards. To avoid debt sneaking up on you, be sure to pay each balance in full each month. If you have any remaining balance from last month, do not use your card to make any new purchases until that initial balance has been paid in full. If your balance is never paid in full but you keep using your cards, then your debts will only increase as you continue to pay interest charges.

• Cut back on expenses. If your monthly expenses are out of hand, you’re more likely to fall into debt. Though it requires sacrifice, cut back on any nonessential expenses, such as premium cable channels or nights out on the town. The financial freedom and peace of mind that results from such sacrifices is far more valuable than the expenses you had to cut back on.

(MNS)

ThisWeekNews.com

What is a credit union?

Credit unions have a long tradition of offering a unique approach to personal finance. The biggest difference between a bank and a credit union is that credit unions are founded on democratic, cooperative principles. Rather than being a for-profit corporation that answers to stockholders and investment firms, a credit union is a not-for-profit organization that is fully owned and directed by its members.

The Board of Directors is composed of credit union members, elected by other credit union members. It is a system that ensures your credit union will always have your best interest in mind.

The mission of BMI Federal Credit Union, a member-owned financial institution, is to provide high quality products and services that are competitive, convenient and responsive to our member’s needs.

BMI Federal Credit Union will operate in a manner that assures its financial strength and promotes the welfare of the membership and the community it serves.

Our mission is simple — to improve the financial lives of our members and the community we serve.

Free checking accounts designed for you!

Our totally free checking accounts offer free debit card, free online banking, free online bill pay, free mobile banking and no monthly service fees!

Add our BMiChangeJar and we will round transactions from debit card purchases up to the next dollar amount, the difference is then moved into a special high yield savings account.

New and used auto loans

Whether you’re buying a new or a used car — or refinancing your existing auto loan — let BMI Federal Credit Union put you in the driver’s seat with the affordable auto financing option that is right for you.

• No application fee - Unlike other financial institutions, we have no application fees for auto loans.

Love my new car!

Thanks, Lisa

• Anywhere closing - We know you are busy, but with our Anywhere Loan Closing you have the freedom to close your loan anytime and anywhere you have access to the internet.

• Member Showroom Powered

by TRUECar - Through our Member Showroom, powered by the search engine TRUECar, members can research a new car based on their preferences, or search thousands of pre-owned inventory and see dealerguaranteed prices.

• Dealer Direct - We have made special arrangements with several area auto dealers to make car buying easier than ever. With Dealer Direct members can select their car, finance their auto loan with BMI Federal Credit Union

and sign all their loan documents without ever leaving the dealership. The interactive map on our website allows members to easily locate participating dealerships in their area.

Mortgages

BMI Federal Credit Union offers a variety of mortgage programs to help you with the purchase of your new home, or the refinancing of your existing home. From adjustable rates to fixed mortgage loans, we have the product that is right for you.

Money Management Program Our award-winning Money Management program is a free financial education program designed to help all members regardless of where they are financially in their lives. Members can schedule an appointment to speak with a free Certified Financial Counselor about specific goals, or attend one of our many free workshops and seminars covering a wide variety of topics.

Topics include: • Identity Theft • Budgeting • Saving for College • Debt Management • Young Adult Finances

Page 5

Make the Switch

Have you ever considered what you want from your financial institution?

Maybe its freedom from the fees you’ve grown tired of, competitive loan rates and terms, or superior service. BMI Federal Credit Union members enjoy all of those benefits and so much more, so if you’re not getting the most from your financial institution, don’t settle — switch.

Voted ThisWeek Community News’ Readers’ Choice for Best Credit Union (two years in a row) and Best Mortgage Provider, BMI Federal Credit Union is committed to improving the financial lives of each and every one of our members. We say members because when you join BMI Federal Credit Union, you’re not a customer – you’re an owner of the financial cooperative.

Our Mission Statement

Financial Wellness | Thursday, March 6 and Sunday, March 9, 2014

• First Time Home Buyer program Our First Time Home Buyer’s program (Ohio Residents Only) has a low down payment, which can be from a gift. Plus, we do not require private mortgage insurance for this program.

• Mortgage application tracker Using our online mortgage application interface, you will be able to complete your mortgage application, and then, track your application from submission to loan closing as it moves through the approval process.

So what are you waiting for? Make the switch to BMI Federal Credit Union today! Visit us online at www.bmifcu. org, stop by a branch, or call us today at (614) 707-4000 to learn more.

Be sure to look for our special offer in today’s paper!

BMI FCU is open to everyone who lives, works, worships or attends school in Franklin, Licking, Fairfield, Pickaway, Madison, Union, Delaware or Morrow County. This credit union is federally insured by the National Credit Union Administration. Additional coverage up to $250,000 provided by Excess Share Insurance Corporation, a licensed insurance company. Equal Housing Lender.

Joining BMI FCU was the best decision!

(614) 707-4000 bmifcu.org

Page 6

Financial Wellness | Thursday, March 6 and Sunday, March 9, 2014

ThisWeekNews.com

Trimming the costs of automobile ownership According to the Automobile Association of America, the cost of owning a vehicle is on the rise. In its 2013 “Your Driving Costs” study, AAA determined the cost of owning a vehicle is somewhere between $7,000 and $11,000 annually depending on the type of vehicle. That’s a substantial amount of money and may leave many motorists looking for ways to reduce the cost of automobile ownership.

Driving is a way of life for many people left with little choice but to keep a vehicle. Thanks to mass transportation, city dwellers might be able to get by without owning a vehicle, but those who live in rural communities or even the suburbs often find that public transportation runs too infrequently or inefficiently to meet their needs. There are ways for those who need their own automobiles to reduce the financial burden of vehicle ownership.

• Downsize your vehicle. In its study, AAA found that the average cost of owning a vehicle varied considerably depending on the size of

Driving a smaller car instead of an SUV can save drivers a considerable amount of money over the course of a year. that vehicle. That should come as no surprise, as larger vehicles tend to consume more fuel and, as a result, cost more money. But drivers might be surprised to learn just how much less it costs to own a small sedan than it does a four-wheeldrive sport utility vehicle.

Small sedans cost the least amount of money to own at $6,967 annually,

while four-wheel-drive SUVs cost nearly twice that amount, setting their owners back $11,599 per year. But the most surprising thing from the AAA study might be its findings as to the costs of owing a large sedan. Such vehicles are nearly as expensive as larger SUVs, costing drivers more than $11,000 per year.

So drivers who downsize

their vehicles to a small sedan will likely save themselves a substantial amount of money over the life of the vehicle.

• Drive safe and cash in on lower insurance premiums. Though numerous factors, including individuals’ driving histories, influence the cost of auto insurance, drivers with clean track records might be able to buck the

industry trend and pay less for their auto insurance policy next year than they did this year.

In its study, AAA found that the cost of insurance rose by nearly 3 percent in 2012 from the year before. But drivers who can avoid accidents and citations are likely to see their rates decrease from year to year.

• Buy a used car. Buying a used car may not give buyers the initial excitement of driving off a car lot behind the wheel of a brand new vehicle, but it might prove quite exciting for your bank account. Revisiting a study they conducted in 2001, in 2013 experts at automotive Web site Edmunds.com examined three different financing methods and the cost of each over a six-year period, which the global market intelligence firm Polk estimates is the average car ownership period.

The study examined the costs, including interest rates and fees, of leasing or buying a 2013 Honda Accord EX and buying a used 2010 Accord EX. The total cost of buying used after six years was $20,960, while the cost of leasing was $24,768

and the cost of buying new was $28,330. Buying used even saves buyers money when factoring in equity. Of course, leasing saves drivers the cost of maintenance and repairs, which can be considerable when buying used vehicles. However, an older used car won’t cost as much to insure as a vehicle that is being leased or financed.

• Drive less. Of course, the easiest way for automobile owners to trim the costs of owning their vehicles is to drive less.

Though vehicle manufacturers have improved fuel economy in recent years, driving less will save money on fuel, the cost of which hinges on a host of factors, including petroleum demand and economic conditions. Such factors may cause a dip in fuel prices one day, but a sharp increase in price the next day. Regardless of those fluctuations in fuel prices, drivers who can cut back on their driving are certain to save money.

The cost of vehicle ownership is on the rise.

But motorists who rely on their vehicles can still find ways to save money.

Metro News Service

Be smart with your money!

Visit Education First Credit Union Did you know you’re saving money — perhaps even hundreds of dollars a year just by being an Education First Credit Union member? Credit unions typically charge fewer and lower fees, offer lower loan rates and pay higher savings rates than other financial institutions, according to the Credit Union National Association’s (CUNA) latest membership benefits report.

Being smart with your money now will surely pay off in the future. Here are a few ideas to consider: • Set financial goals and put them in writing.

• Make a spending plan, control your debt, and concentrate on paying off existing bills.

• Once you’ve implemented your spending plan, build your emergency fund.

• Get the necessary training and education so your knowledge and skills remain up to date.

• Make it a priority to get adequate health, disability, auto, personal liabil-

food & wine

ity, and tenants’ or homeowners’ insurance. If someone else depends on your income, you also need life insurance.

• Maintain orderly financial files to keep track of your money and put your hands on important records when you need them.

As a member of Education First Credit Union, you will find that we are committed to providing you with excellent member service and sound quality financial products. Rest assured that you can depend on your credit union. We invite you to visit us today –in person or online. You will be most welcome!

www.educu.org (614) 221-9376 Or toll free at 1 (866) 628-6446

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Financial Wellness | Thursday, March 6 and Sunday, March 9, 2014

Page 7

The benefits of financial planning Financial planning is often mistakenly assumed to be a concern for the wealthy.

That assumption essentially promotes the idea that people without much money need not worry about what to do with their finances. However, financial planning can benefit people at all income levels, even helping those at lower income levels move into higher brackets if they plan successfully.

Though having an idea of how to spend and grow your money is an idea many people would likely embrace, a significantly large number of people do not have a financial plan. In its 2012 Household Financial Planning Survey, the Certified Financial Planner Board of Standards found that just 31 percent of financial decision makers in families had created a financial plan.

Some survey respondents did so on their own, while others used the services of a financial planner. Though some might be intimidated or even scared to institute their own financial plans, it can be done. For those who are especially hesitant to develop their own financial plans, financial planners can help you define your goals and make those goals a reality. The benefits of financial planning are numerous, helping men and women build better financial futures.

• A financial plan forces you to define your goals. One of the biggest advantages to financial planning is it forces men and women to define their financial goals. An effective financial plan should consider both short- and longterm goals. If you hope to one day own a home, a financial plan can help you figure out how quickly you will own that home. A good financial plan also can help you map out a course for retirement. Ambiguity with respect to your finances is potentially dangerous. Saying you want to retire at 60 and developing a plan to make that happen are two very different things, but the latter can make it happen while the former won’t get you anywhere unless you take action. Be as specific as possible when defining your goals, and recognize that, depending on when you are making your financial plan, you might need to reassess those goals if they are not realistic.

• A financial plan can help you curtail your spending.

With a financial plan in place, you’re less likely to waste your money on frivolous things.

Without a plan, you’re more likely to treat money as disposable, putting your financial future in jeopardy as a result.

A careful examination of your financial situation can shed light on areas where your

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Working with a financial planner can help men and women define their financial goals and make those goals a reality. spending is excessive. A negative cash flow, which occurs when there is more money going out than coming in, has never been a part of a successful financial plan. Correcting such a situation, which is often accomplished when people establish a financial plan that trims excessive spending, can go a long way toward securing your financial future.

• A financial plan can be motivational. Another significant and often overlooked benefit to financial planning is how such planning can act as a motivator. A good financial plan will include certain measuring sticks, such as having debt paid off by a particular

date or a certain day by which you hope to deposit a certain amount of money into your savings. These measuring sticks often motivate men and women to be more responsible with their money, and many people find living up to shortterm financial goals to be very rewarding.

• A financial plan makes better use of your money. Even if you don’t have any negative spending habits, a financial plan can help you make better use of the money you do have.

A closer examination of your finances can often yield a host of ways to grow your money or save it. For example, you might have multiple insurance

policies, some of which offer duplicate coverage. Examining each policy and removing duplicate coverage can save you money and help you spend that money in better ways.

You wouldn’t pay for the same slice of pizza twice, so why pay for the same coverage twice?

But unless you make a financial plan, you are unlikely to find those areas where you’re wasting money or discover the numerous ways in which your money can be better spent.

• A financial plan helps you grow your money. Even if you are worried about investing or especially skittish when it comes to risk, you will need to find ways to grow your money, and a financial plan can help you do just that. The concept of inflation dictates that the dollar you have today won’t be worth as much next year, meaning you will need to take steps to grow your money if you hope to have enough to get by in retirement. A financial plan can help everyone, whether they’re risk-averse or not, grow their money. Something as simple as opening an interest-bearing account will grow your money more than if you were to put that money under the mattress. Without a financial plan that includes ways to grow your money, the money you have will only lessen in value as time goes on.

(Metro News Service)

Visit kemba.org, call 614.235.2395, or stop by any KEMBA branch to improve your financial wellness today!

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Page 8

Financial Wellness | Thursday, March 6 and Sunday, March 9, 2014

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