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it's time to make those new year resolutions again! Start off 2009 on the right foot by attending LRRCU's financial seminars.

Is Our Credit Union Safe in Today's Economy?
A Letter from LRRCU's CEO, Abby Achey.

Dear LRRCU Members,

As you read articles; watch the news; listen to the Senate Banking Committee discussions regarding the bail out of wall street, do you wonder about your credit union's safety?

LRRCU assures you that we are financially sound. All of our members best interests are at the forefront of all decisions made in operating Lancaster Red Rose Credit Union.

Credit Unions stay STRONG...

Following the collapse of Wall Street and the Great Depression of the 1930s, credit unions were formed to provide affordable financial services to working Americans. Nearly, seventy-five years later, credit unions are still providing these services in their communities all across the United States and Pennsylvania.

More importantly, ALL Pennsylvania credit unions are backed by the full faith and credit of the U.S. Government by the National Credit Union Administration (NCUA). The National Credit Union Share Insurance Fund (NCUSIF), which works just like the FDIC, and insures deposits up to at least $100,000. Detailed information on insurance can be found online at www.ncua.gov in the Share Insurance Toolkit section.

As not-for-profit cooperatives, credit unions exist to serve their members and are well-capitalized at nearly 12 percent. Credit unions have always made prudent lending decisions in making loans, avoiding subprime and risky loans. Further, credit unions are still making loans for cars, homes, and higher education to qualified borrowers

There are no stockholders or outside investors in credit unions, nor are they listed on Wall Street. Credit unions are democratically controlled, so the owners and decision makers are the members, or depositors. Deposits are locally held and loans are made only to those in the credit union's membership. Credit unions are the stewards of their members' hard-earned money and take that responsibility seriously. Investments are made conservatively and credit unions can not be bought and sold as commodities.

YOUR Credit Union is YOUR Credit Union. Members Make the Difference!

Abby R. Achey, CEO

Practical Money Skills for Life

Making financial resolutions in difficult times

Many folks are happy to see 2008 fade into the distance. Between the rollercoaster stock market, tightening credit availability and falling home values, most of us have taken a financial beating.

With a new year upon us and plenty of opportunities to learn from past mistakes, here are a few financial resolutions that make sense for these troubled times:

Trim expenses. Many people have gotten out of the habit of watching their spending. A few relatively painless ways to save hundreds – or thousands – of dollars a year include:

Regularly balance your checking account to avoid bounced check and overdraft charges. And try not to use ATMs outside your bank's network.

If your employer offers them, use flexible spending accounts to pay for health and dependent care expenses with pretax dollars. If you're in the 25 percent federal tax bracket, that means expenses you'd have paid for anyway will cost 25 percent less.

Reduce energy bills by turning down the thermostat, weatherproofing your home, turning off "energy vampire" appliances when not in use and buying energy-efficient appliances.

Cut back on restaurant meals and to-go coffee and brown bag your lunch to work.

Raise insurance deductibles; and while you're at it, shop around for better rates.

Track your credit. A bad credit rating can disqualify you for a mortgage, car loan and credit cards, or raise your existing interest rates; plus it may prevent you from renting an apartment or getting a job. Order one free credit report per year from each of the three major credit bureaus at www.annualcreditreport.com.

Review your credit reports for errors or fraudulent activity and report any you find to the bureaus immediately. For tips on ways to improve your credit score and to get a free estimate of your score, visit What's My Score at www.WhatsMyScore.org.

Use credit cards wisely. Some banks and retailers have begun tightening eligibility requirements and lowering credit limits for their credit cards, so it's important to use your existing accounts wisely. A few tips:

Always pay at least the minimum amount due and never miss payments or due dates. Any of those actions could generate fees or raise interest rates.

Don't overburden any particular card or use more than 30 percent of its available credit – that can ding your credit score.

If you've got outstanding balances on multiple cards, try to pay off the ones with higher interest rates first – that can save you hundreds of dollars over the long term.

Stick to your budget. Spending more than you bring in is a recipe for disaster. Plus, you should have several months' living expenses set aside in case you should lose your job, have a medical emergency or experience other unplanned events. Visa Inc.'s free personal financial management site, Practical Money Skills for Life, features an easy-to-use, downloadable tool called My Budget Planner that can help you track income and expenses and make spending adjustments where necessary (www.practicalmoneyskills.com/mybudget).

Prepare for the worst. If something terrible happened to you, would your family be protected financially? Make sure you have a valid will, durable power of attorney, health care proxy and a living will, along with adequate disability and life insurance.

No one can accurately predict when our economy will turn around. So take a few steps now to protect your family's financial security in the meantime.

Article Credit: Jason Alderman, director of Visa's financial education programs

PracticalMoneySkills.com is a free Web site designed to help educators, parents and students practice better money management for life. Americans think that financial basics are as important as the three R's traditionally taught in school. And since many consumers today graduated without even basic knowledge of money management, like how to create and stick to a budget, many learn money skills through the school of trial and error.
To help today's youths and consumers of all ages become financially savvy, Visa has partnered with leading consumer advocates, educators and financial institutions to launch a national program to improve the nation's financial skills -- Practical Money Skills for Life.