Meritrust CU Blog

A Few of My Favorite Things (About FinanceWorks)

Written by: Kelly
November 18th, 2009

I love it when something fancy like FinanceWorks, Meritrust’s new money management tool, drops into my life! I have used Quicken to balance my checkbook for several years. Well, OK, balance is a stretch of the imagination. And I didn’t do anything exciting with Quicken because, honestly, I’m not smart enough. I sort-of managed my checkbook and would use it to high-five myself when I passed a savings milestone. And I never considered pulling my credit card or mortgage transactions in.

And then there was FinanceWorks.

During our discussions about redesigning online banking to incorporate our name and branding change, we decided to add a personal financial management tool. And FinanceWorks not only meet our expectations, but after playing with the product during our testing phase I think it’s exceeded them. Double high-five!

So, what are my favorite things about FinanceWorks?

The pie charts. Click on each slice to see, yes, I really DID spend that much dining out. And adding additional categories so the truth wouldn’t stare me in the face was simple. I kid! Sort of.
Account aggregation. I can pull in accounts from other financial institutions, and track all of the spending and savings in those accounts, too!
How much can I spend until my next paycheck? FinanceWorks determines which bills are coming up and when I’ll get paid based on my history. And whatever transactions are not there are simple to add.
Upcoming bills. Sure, my bills pull at the same time every month. But why would I want to remember if FinanceWorks will tell me? It’s like Mom waking me up instead of setting my alarm!
Goals! If you’ve been reading any of my posts about the Financial Peace University class I’ve been taking, creating a budget was a thorn in my side. Sure, I can create a budget like an accountant, but I hate writing stuff down. However, since starting Financial Peace University and setting up my goals in FinanceWorks, I’ve spent half of what I normally do in a month (not including house payments and utilities). And that includes purchasing laminate flooring for my kitchen and dining room! Where’s someone to high-five me already? I feel like Barney in the episode of How I Met Your Mother where he’s left hanging!

Bottom line: If you haven’t checked it out already, login to online banking and click on the FinanceWorks link. The software walks you through the setup process and answers all of your questions along the way. Oh, and our Marketing Department will send me a hate email if I don’t mention it’s free!

Have you tried it? What do you think? How are we doing with our online banking product?

Posted in News | 1 Comment »

That Certain Something

Written by: Amy
November 2nd, 2009

At the first hint of fall, something happens… at first, we can’t explain the feeling of some impending something that is going to happen. We just know that there is suddenly something lurking in the back of our minds. Then, we make a trip to a department store and it hits us— the something is the fact that Christmas is on its way!

For some, Christmas is a completely positive experience, anticipated all through the year. For others, Christmas can be a time of stress and financial pressure. One way to alleviate that stress is to utilize Meritrust’s Christmas Club account. The Christmas Club account is designed to help you save for Christmas throughout the year. When you open a Christmas Club, you can make a deposit, or set up a preauthorized transfer to have funds automatically transferred into the account on a regular basis. On November first, the balance in the Christmas Club account will become available, and Christmas shopping can begin!

The first year we were married, my husband and I set up a Christmas Club account and saved a small amount from each paycheck throughout the year. It’s a good thing we did; if it hadn’t been for our Christmas Club funds, we would not have been able to enjoy Christmas that year! As it was, we were able to purchase the gifts for each other and our families that we had planned, and there wasn’t a struggle to pay off Christmas debt in January. We were so pleased with the results that we have used our Christmas club account every year!

If you think that you could benefit from a Christmas club account, stop by your local Meritrust branch and we will be more than happy to help you open one!

Tags: Christmas Club Account
Posted in Saving | Comments Off

I’m a Nerd With a Ramekin of Free Spirit

Written by: Kelly
October 22nd, 2009

When it comes to money, I’m definitely a nerd. A numbers girl, if you will. But in this case a story about me is pointless because I’m single. I make my own budget. I live with my decisions. I have no one to answer to when my little tiny serving of free spirit gets out and I randomly buy three pairs of boots, or another scarf.

However, if you’re sharing a bank account or budget with a partner, these conflicting personalities can become the root of all evil. She wants this, he doesn’t, but he wants that instead. She says stop spending, he says live a little. He makes a budget, she ignores it. It’s time to pay bills and fingers are pointing in all directions. It’s probably pretty rare that anyone’s pure nerd or pure free spirit. Most of us are a mixture of the two, leaning more prominently toward either being controlling about the budget or being annoyed about being controlled. The important thing is appreciating how you are, how your partner is, and figuring out how to make a budget that suits both of you.

In the second week of Dave Ramsey’s Financial Peace University, we learned that it might be easier to let the nerd (the one who loves the budget) create the budget. Then hand it over to the free spirit (who feels trapped by a budget) to get buy-in. Ask the free spirit to make suggestions. Then take them. “Sure, we can add a little more to the dining budget so we can have a glass of wine with dinner, but where will we take the extra from? I’m sorry we can’t take it from the electricity budget. But we could take it from the vacation budget if you’d rather have a little bit of fun throughout the year, and a less extravagant vacation once a year.” As with all things in a relationship, it’s all about communication, understanding and compromise.

I can see how two nerds would be in budget paradise. However, there was no talk about how two free spirits would make a budget. I suppose they’re probably not attending a Dave Ramsey class, right? If only we could all be free spirits!

What are your tricks for building a budget with your partner?

Tags: Budget, Financial Peace University, Personalities
Posted in Education, Saving | Comments Off

Budgeting For Your Future

Written by: Kelly
October 14th, 2009

One of the greatest things about working at Meritrust is our leaders understand a healthy, happy, well-balanced employee is more productive. And one program Meritrust offers to keep us balanced is Dave Ramsey’s Financial Peace University. This isn’t an advertisement for the program. Rather a documentation of my journey through the thirteen week course that focuses on paying off debt and building wealth. I’ll reference a few items he offers on his website simply because they’re free, but that doesn’t mean there aren’t other great options out there.

The first class covered the basics everyone already knows: starting an emergency fund consisting of several months of expenses, and delaying gratification to reap rewards later. The topic the first night I was most interested in was a budget. I figure I work hard for my money and while I want to spend it on things I enjoy, I do a lot of frivolous spending. And since I’m single no one sees or cares where I spend my money, so I’m my only accountability.

Dave compares keeping track of your personal finances to a business doing the same. No one would run a business without tracking what’s coming in and how it’s spent. We should do the same for our finances. We were given a quickie budget worksheet and asked in five minutes to fill in how much we’re spending per month. Even though I’m the only one who deals with my finances, I struggled with some items because I didn’t have a clue how much I was spending on things like food or clothing. The next step for me is to determine a realistic amount to spend every month in the areas I need to improve. There are a lot of cool electronic tools out there, including one Meritrust is working on (more on that later!), that can do some of the legwork for you. Or if you’re a pencil and paper guy or girl, Dave has a printable monthly cash flow planning form.

Change is scary, but it’s the only way to fix something that’s not working.

Do you keep track of your cash flow? Have any advice for a beginner? Or what’s holding you back from starting to do the same?

Tags: Budget, Financial Peace University
Posted in Saving | Comments Off

Why Credit Unions?

Written by: Amy
September 16th, 2009

I have a friend who is constantly giving me a hard time by calling me a “banker.” Of course, I should know better than to take his bait, but it is a pet peeve of mine because I don’t consider myself a banker at all. So every time he calls me “banker” I remind him, “I work for a credit union, not a bank!” Then I roll my eyes when he says yet again, “what’s the difference?” I don’t even bother telling him any more, but there is certainly a difference! Do YOU know what it is?

Credit unions are member-owned, not-for-profit financial cooperatives. The great thing about credit unions in my book is that they are member-owned. Once you become a member of a credit union (by opening a membership share account), you own part of the credit union. Members have a say in how the credit union is run because members elect the Board of Directors, and those Directors serve as volunteers— not paid employees. Because credit unions are not-for-profit organizations, our profits go back to our members in the form of higher dividends on deposits, lower interest rates on loans, and better fees. The credit union motto is “People Helping People,” and by pooling their money together, members are able to help other members.

I have worked for Meritrust for seven years, and I’m proud of the fact that I work for a credit union, where our focus is on service, and we strive to merit the trust of our members. Still, the next time my friend calls me a “banker,” it might be smarter if I don’t give him the satisfaction of a response.

Posted in Education | 1 Comment »

Saving Money Starts Today

Written by: Amy
September 8th, 2009

Yesterday, I looked at myself in the mirror and gasped. “Oh NO!” A gray hair! My FIRST gray hair! How could this be? I’m only 26 years old… I’m not ready to turn gray! Of course, I pulled that gray hair out right away, but I know it’s just a matter of time before it’s back.

I keep thinking to myself that IF I was ten years older I would probably be somewhat okay with finding my FIRST gray hair, but not now! Not yet! If someone had told me ten years ago that in ten years I would find my first gray hair, what would I have done differently?

All kidding aside, the trauma of finding my first gray hair has really brought to the surface all of my inner thoughts about saving for retirement. Yes, I am only 26, but in ten years I will be 36 and I know that I need to think about goals that I should reach by then in order to be where I want to be when I retire. So, I think I’m going to make an appointment to meet with a Financial Advisor to get some free advice about what I need to do to make myself a plan. I’m also going to really focus on saving more and spending less. That sounds really vague, but what I’m going to do specifically is set up a portion of my paycheck to go into my savings account.

What are you going to do to start saving?

Posted in Saving | Comments Off

Why does the Credit Card Act affect my car loan?

Written by: Kelly
August 21st, 2009

Have you noticed changes to the way your loan amount due in Online Banking (Net-24) looks or received a new bill in the mail? If so, you may wonder why. It’s part of the new Credit Card Act of Regulation Z. You may also wonder why an act for credit cards affects your car, signature, or other non-credit card loan. Well, the answer is simple: because that’s how the act was worded. Although the primary purpose of the act was to reform credit card rules, it was worded to include all open-ended consumer loans. This affects credit unions more than banks because of the way some of our loan contracts are written. Our loans are designed to provide the borrower a convenience that banks are not allowed to offer. We are able to streamline the lending process by providing future advances without, many times, the inconvenience of having to go through the entire application, underwriting and disclosure process.

What is the actual intent of the credit card reform? One of the intentions of the Credit Card Act was to give consumers more notice of what you owe and when it’s due, which means you may start to get credit card statements in the mail sooner. Meritrust was already generating credit card statements beyond the now-required 21 day period, so our credit card statements won’t change.

However, most of the other loan products impacted by this act didn’t have regularly mailed bills (because payment amounts don’t change). Therefore, we were required to start sending something reminding you of your payment amount and due date. Whether your payment has changed or not, and even if your payments are paid automatically, we had to provide you with a reminder.

We are working on a more user and planet-friendly option that will still be in compliance. In the meantime, if your loan is setup with bi-weekly payments you might notice in Online Banking (Net-24) it shows more than one payment due at a time. Or you might notice your mailbox has a paper bill when you’ve never received one before. Rest assured, you can continue to make your payments as you always have.

We apologize for the inconvenience and any confusion these changes have caused. We strive to provide products and services in the most convenient and cost-effective manner, but are ultimately guided by rules and regulations. Please contact us if you have questions about changes on your loan, how to read your loan bill, or what you see when you look at Online Banking.

Posted in Loans | 1 Comment »

Squishy Swinederson, Reporting Live From Meritrust

Written by: Squishy Swinederson
August 3rd, 2009

Hi! I’m Sasha “Squishy” Swinederson, Meritrust’s guest (I like to say celebrity) blogger. My friends and family call me Squishy. My job is to keep up with all things fun at the credit union including events in the community, employee functions, and whatnot. If it’s legit, I’ll be there!

I come from a small family (for pigs). My parents, Mom and Dad Swinederson, have always encouraged my life-long quest of trying every kind of pizza ever made. If you have suggestions, throw them my way! I have one brother, Ollie, and three sisters, Maude, Mary Kate and Ashley. My favorite things are air conditioning, pizza (of course), unicorns, and people taking pictures of me. I don’t like dogs that growl, Brussels sprouts, country music, driving through western Kansas, and mud. My favorite song is “Ruby Soho” by Rancid and my favorite movie is National Lampoon’s Christmas Vacation.

I think that’s enough for now. Mom Swinederson says to be a little mysterious!

Posted in Just For Fun | Comments Off

Spending Reform… Or Rather, Reevaluation

Written by: Kelly
July 27th, 2009

I don’t consider myself an extraordinarily thrifty person, but I think I fall into the generic “financially responsible” category. I’m in a consistent habit of spending some, saving some and donating some. However, recent talks of credit card reform have thrown my not-so-closely-monitored system off kilter.

I was an avid (read: neurotic) checkbook balancer until a few years ago when my career and education hit an all-consuming stint, leaving no room for annoying details, like whether I had EXACTLY $43.57 in my account when I swiped my debit card. As a result, I put all of my day-to-day spending on my credit card and paid it off once a month. I wasn’t the most diligent at keeping track of my running balance or reviewing the charges on my statement. But these are the costs of convenience, right? Or, well, let’s be honest, the cost of my laziness.

My job has since slowed down and I’m done with school, but I continue to employ my habits because I haven’t quite had the motivation.

Well, my friends, motivation has arrived! If credit card reform pans out as expected, I will have a hard time justifying annual fees or no grace period simply because I don’t want to keep a register. Rather, I’m going to reincorporate use of my debit card in place of my credit card and (gasp!) start recording what I spend. I hope to not only avoid fees (credit card-related as well as NSF!) but more importantly become more conscious of my spending, as well as get back to using my credit card for my original intended purpose: emergencies. As with any change, it’s going to be a struggle. Wish me luck!

Has anyone else already made or have plans to make similar changes?

Tags: credit cards, habit change, Saving
Posted in Saving | 7 Comments »

First Time Home Buyer

Written by: Amy
July 19th, 2009

Considering the purchase of your first home can be frightening. Despite the media’s doomsday coverage, it is a great time to buy. Mortgage rates are low, and the $8,000 tax credit for first time home buyers is a great incentive. There are just a few things to do in order to be prepared.

First, it is important to have at least 5% cash down. This means is if you purchase a home for $100,000.00, you need to have $5,000 in addition to your closing costs. Sometimes you can negotiate for the seller to pay closing costs. And while 5% cash down is the minimum requirement, unless you put 10% down you will be subject to paying Private Mortgage Insurance (PMI). PMI is insurance for benefit of the lender in case of default, and is generally added to your monthly payment.

Secondly, before you begin to shop, it is essential to know what you can afford. No one knows your budget better than you, so you should have an idea of what your ideal payment would be. Once you know what you can afford, use an amortization calculator (like the one found here) to calculate payments based upon purchase prices and the current mortgage rate. This will tell you what you can afford. It is also important to get pre-approved by the financial institution of your choice.

It is significant to note that the payment you have calculated thus far is based only upon principal and interest. For many first time buyers, the monthly payment will also include taxes and insurance. For example, using the scenario above: the buyer puts $5,000 cash down on a $100,000.00 purchase. The loan at disbursement is $95,000.00 amortized at 5.625% over 30 years, which equals a payment of $546.87. Assume the annual taxes on the home are $1200 and the annual homeowner’s insurance premium is $650. Dividing this annual amount over twelve monthly payments is $154.16. And because the down payment was less than 10% add a PMI payment of $49.88. Therefore, the total payment amount would be approximately $751.00 per month. The addition of taxes and insurance is called escrow.

One you have these basics, you will feel more confident in your quest to purchase your new home. As always, the Real Estate department at Meritrust is here to assist you in making this process as smooth as possible. If you have any questions, or would like to speak with a loan officer, please call 316-558-5005.

Tags: escrow, first time homebuyer, home loan, PMI
Posted in Loans | 1 Comment »