From time to time, most people need some assistance with their finances. That need for aid might come as a result of a job loss, excessive medical bills or some form of household emergency. During those trying times, loans are often sought to help bridge the financial divide. The problem though, is that loan approvals are often more difficult to come by for some people than others. As a result, it is easy for people in a financial bind to fall prey to predatory lenders and their less than ethical practices. Learning to protect yourself from these types of lenders and their practices can help you keep your financial future on track. What is Predatory Lending? Predatory lending occurs when a lender places unfair and even abusive terms on a borrower. While there is no exact definition for the name, these are often loans designed to force borrowers to default or go deeper in debt as they try to extricate themselves from the predatory loan terms. Predatory loans allow the lender to make as much money up front as possible with little regard for the borrower’s ability to repay the debt or recover from the financial mess it creates. Predatory Lending Practices Many lending practices identify a lender as a potentially predatory lender. If your lender employs any of these tactics, you might want to consider seeking assistance elsewhere. Protecting Yourself Protecting yourself from predatory lending practices is easy once you are on the lookout for their tell-tale signs. There are a few things you can do that will help you see them coming so you can completely steer clear of them. Protecting your financial interests by avoiding predatory lenders and loans can yield a reward in the long term even if means you do not get the loan you are seeking today to provide immediate relief.

Protect Yourself from Predatory Lenders

View Resource Protect Yourself from Predatory Lenders
Your mobile device provides convenient access to your email, bank and social media accounts. Unfortunately, it can potentially provide the same convenient access for criminals. First Federal Lakewood recommends following these tips to keep your information, and your money, safe. 1. Use the passcode lock on your smartphone and other devices. This will make it more difficult for thieves to access your information if your device is lost or stolen. 2. Log out completely when you finish a mobile banking session. 3. Protect your phone from viruses and malicious software, or malware, just like you do for your computer by installing mobile security software. 4. Use caution when downloading apps. Apps can contain malicious software, worms, and viruses. Beware of apps that ask for unnecessary “permissions.” 5. Download the updates for your phone and mobile apps. 6. Avoid storing sensitive information like passwords or a Social Security number on your mobile device. 7. Tell your financial institution immediately if you change your phone number or lose your mobile device. 8. Be aware of shoulder surfers. The most basic form of information theft is observation. Be aware of your surroundings especially when you’re punching in sensitive information. 9. Wipe your mobile device before you donate, sell or trade it using specialized software or using the manufacturer’s recommended technique. Some software allows you to wipe your device remotely if it is lost or stolen. 10. Beware of mobile phishing. Avoid opening links and attachments in emails and texts, especially from senders you don’t know. And be wary of ads (not from your security provider) claiming that your device is infected. 11. Watch out for public Wi-Fi. Public connections aren’t very secure, so don’t perform banking transactions on a public network. If you need to access your account, try disabling the Wi-Fi and switching to your mobile network. 12. Report any suspected fraud to your bank immediately.

12 Ways to Protect Your Mobile Device

View Resource 12 Ways to Protect Your Mobile Device
Identity theft continues to be one of the fastest growing crimes in the United States. In 2017, there were 16.7 million victims of identity fraud in the U.S., according to Javelin Strategy and Research. First Federal Lakewood recommends following these tips to keep your information – and your money – safe. 1. Don’t share your secrets. Don’t provide your Social Security number or account information to anyone who contacts you online or over the phone. Protect your PINs and passwords and do not share them with anyone. Use a combination of letters and numbers for your passwords and change them periodically. Do not reveal sensitive or personal information on social networking sites. 2. Shred sensitive papers. Shred receipts, banks statements and unused credit card offers before throwing them away. 3. Keep an eye out for missing mail. Fraudsters look for monthly bank or credit card statements or other mail containing your financial information. Consider enrolling in online banking to reduce the likelihood of paper statements being stolen. Also, don’t mail bills from your own mailbox with the flag up. 4. Use online banking to protect yourself. Monitor your financial accounts regularly for fraudulent transactions. Sign up for text or email alerts from your bank for certain types of transactions, such as online purchases or transactions of more than $500. 5. Monitor your credit report. Order a free copy of your credit report every four months from one of the three credit reporting agencies at annualcreditreport.com. 6. Protect your computer. Make sure the virus protection software on your computer is active and up to date. When conducting business online, make sure your browser’s padlock or key icon is active. Also look for an “s” after the “http” to be sure the website is secure. 7. Protect your mobile device. Use the passcode lock on your smartphone and other devices. This will make it more difficult for thieves to access your information if your device is lost or stolen. Before you donate, sell or trade your mobile device, be sure to wipe it using specialized software or using the manufacturer’s recommended technique. Some software allows you to wipe your device remotely if it is lost or stolen. Use caution when downloading apps, as they may contain malware and avoid opening links and attachments – especially for senders you don’t know. 8. Report any suspected fraud to your bank immediately.

8 Tips to Protect Your Identity

View Resource 8 Tips to Protect Your Identity
The number of companies offering their employees a Health Savings Account (HSA) continues to grow. With plenty of advantages for both employers and employees, implementing an HSA – if your company doesn’t already have one – can be a great idea. An HSA is a personal health care account that works with a qualified health plan. There are tax advantages for both the company and its employees, and typically both will save money on monthly health insurance costs as well. One area where your company can save is federal income tax. You can take a federal deduction for any contributions you make to your employees’ HSAs. This is a win-win for both employer and employee, since the contributions you make on their behalf help make an HSA an attractive benefit in the eyes of your employees. In fact, offering an HSA as part of your benefits package can help your company attract desirable new talent and keep the valued employees you already have. Why do employees like HSAs? Let’s start with the tax savings. There are actually three areas where an HSA offers tax benefits for employees. First, employee contributions are typically exempt from federal and state taxes in most states. Second, the earnings in an HSA – including interest, dividends and capital growth – will grow tax-free. Third, any withdrawals an employee makes from an HSA to pay for qualified medical expenses are also tax-free. HSAs can also be rolled over from one year to the next, and the nest egg of money that grows in the account can be used for retirement. That’s why it can be a good idea for employees to max out their HSA contributions if at all possible. With the future of Social Security uncertain, and the market conditions that affect 401(k) plans equally unpredictable, the funds in an HSA can be a great supplement to a retirement plan. Talk to your tax advisor to see if this works with your retirement goals. Additionally, withdrawals made for qualified medical expenses after retirement remain tax-free, and may be used to pay for a few things many employees aren’t aware of, including premiums for Medicare parts A, B and D, long-term care, dental care and a number of other healthcare expenses. If you have questions or would like more information about including a Health Savings Account benefit for your employees, please don’t hesitate to contact a member of our Business Banking team today.

Reasons to choose a health savings account for your employees.

View Resource Reasons to choose a health savings account for your employees.
A great apartment is hard to find. Unfortunately, your efforts might be made more difficult by the proliferation of housing scams that fill up the Internet and compete for coverage with the many legitimate apartments that are available in the communities you seek. The tips here will help you recognize and avoid housing scams and also help you understand what to do if you have fallen victim to one of the many apartments and housing scams out there today. Apartment Hunting Challenges Most people face significant challenges when apartment hunting in unfamiliar territory. That is quite common for students making the transition to work after college as well as those transferring to new jobs in new towns. Because you are not familiar with the area, you may not understand what a good deal for an apartment is and what is too good to be true. That does not mean you cannot find great deals looking online; you need to learn a few tactics to help you recognize and avoid scams. Recognizing a Scam Some common scams involve sub-leasing, so it is best to deal only with the property owner or a verified leasing agent. Make sure the owner of the property is identified in the lease you sign and make sure you get a copy of the document. Also, make sure you see the property and take a walkthrough of it before you sign any lease. Make sure the address on the contract matches the property you toured. Read the lease well. Some property agents list properties at terrific rates, but when you read the fine print, it might turn out to be a ‘per room’ rate. Without knowing it, you might sign a lease for a four-bedroom property and find yourself living with three strangers. Never send money, especially cash. There are two reasons for this. First, there is no evidence in cash transactions that you paid the rent. Second, there is no recourse with cash if it was a scam. Many credit cards and bank accounts offer some degree of fraud protection or the ability to stop payment on checks. Once you give someone cash, it is gone for good. Other signs of a potential scammer include the following: As you can see, there can be plenty of warning signs to watch out for – once you understand what they are. If You Are a Housing Scam Victim No one relishes the idea of being scammed when you are in the process of trying to find a new apartment. The problem is that many of these scams go unreported, leaving no indication wrongdoing has been committed and creating a situation where even more people fall victim to these tactics. These are some of the things you can do: You may or may not be able to get your money back this way, but you can take comfort in knowing that you are preventing others from falling victim to these scammers in the future by shining light on what the are doing. There are plenty of great deals available in communities of all shapes and sizes if you know what to look for — And what to avoid. Avoid these online housing scams to find an apartment that will meet your needs for this next adventure in life.

Housing Scams to Avoid

View Resource Housing Scams to Avoid
As people weigh future lifestyle options, one choice frequently being evaluated by individuals facing retirement, empty nesters, and professionals on the move is whether it is more advantageous to be a homeowner or a renter. There are some distinct advantages and disadvantages to both. This article explores a few of the more common pros and cons and offers insights and advice for making the transition easier. Advantages of Renting The benefits of renting vs. buying are more meaningful than you might imagine. One of the most significant advantages is the fact that you do not have to make a long-term commitment when renting. Home mortgages are financial commitments that you can only get out of by paying back the loan. In most cases, that means finding a buyer and using the sale proceeds to retire the mortgage. With a lease agreement, you are likely never required to commit to more than one year at a time, and some offer shorter term leases than that. Other pros to renting include the following: These are great pros to keep in mind. However, renting is not all roses and sunshine. There are some considerations to explore before you dive in and make a move. Cons The decision to rent usually means that you are no longer the King or Queen of your castle. You may face some unpleasant realities as you adjust to life as the renter of a property and not the owner. Some consideration to renting to keep in mind include the following: While many of these considerations will not affect your daily life as a renter, they are worth keeping in mind and can help you make decisions about which rental spaces are the best match for your needs. Making the Transition One of the most important things to do when making the transition from a homeowner to the role of a renter is to hang up your home repair toolbelt. It is someone else’s problem now! Beyond that, you will want to take care that you can fit comfortably within the rented space. That might mean parting ways with a few precious (and more than a few not-so-precious) possessions. Look at this as an opportunity to clear out the clutter in your life and share memories with friends and family. The most important thing you can do to make the transition easier is something mental. Understand that the space you live in does not define who you are. The apartment or rental home itself is not a reflection of you. However, the way you decorate your new home can reflect who you are to those who visit. While there are some cons to renting, going from being the homeowner to being the tenant is a great way to reduce your workload, free up valuable time and money for other pursuits, and to get more out of life.

Going from Homeowner to Renter

View Resource Going from Homeowner to Renter
Vacation. It is a magical time for friends, couples, and families to relax, unwind, and connect with others rather than their favorite devices. If you are not careful, though, it can also become a time when you leave a massive hole in your budget. There are ways you can save money while on vacation, both while planning it and when on vacation. You could save even more than you might expect. Making Plans The first key to saving money while on vacation involves maintaining a focus on costs with each budget line of your travel plans. You can do this while you are planning your vacation with a few simple steps. Plan Your Meals With so many hotels and condos offering fully stocked kitchens and kitchenettes or microwaves and mini-fridges, you can save quite a bit of money on meals by eating out only once per day (if that) and preparing the remaining meals in your room. If your hotel offers free breakfast, take advantage of that as well. If dining out once daily, lunch is often the best time to splurge. Many restaurants provide reduced prices on their lunch menu. You might even have enough food left on your plate to take back to your room for a snack later in the evening. Do not forget to look for ‘early bird’ dinner specials as well. Book Your Hotel Wisely Forbes recommends going to the hotel website directly to get the best price for hotel rooms. If you are a member of a specific hotel’s loyalty program, you can save even more money. The same holds for senior discounts. How much money can you save? According to Forbes, the differences in rates could be as little as one dollar or as much as $50. Of course, do not forget to use your points to save on your travel. Also, consider going outside the box and renting from Airbnb, VRBO, HomeAway or another resource. You may even find apartments are available at much better costs than renting hotels for the duration of your vacation, while also providing you with more room to spread out and dine-in. Pack Wisely Whether you are flying or driving, the way you pack can have a significant toll on how much you spend on your vacation and how much you enjoy it. No one wants to carry around unnecessary and bulky items. Pack lightly and try to get all your supplies and clothing in one carry-on sized bag per person if possible. That will help you avoid hefty bag checking fees with the airlines. While on Vacation During your vacation, you have opportunities to save as well. The below tips can help you avoid unnecessary spending and may be instrumental in stretching your dollars, allowing you to add more activities or mementos to remind you of an extraordinary time together as a family. Bring Snacks and Water Along Make sure you pack a backpack for your outings and fill it with water and snacks. That will help you avoid hungry, cranky children (or parents) and the higher prices of similar items at convenience stores in touristy areas of town. However, be open to splurging for special treats unique to a particular locale, such as beignets in New Orleans, clam chowder at Fisherman’s Wharf in San Francisco, or homemade key lime pie in Florida. Seek out Free Entertainment and Attractions Many museums offer reduced priced admissions on some days while others are entirely free. Same goes for National Parks. These may not have all the frills you will find at costlier attractions like branded theme parks, but spending some of your time at free attractions allows you to have budget left for the pricier attractions you have highlighted for a visit. Other free or low-cost attractions to consider include: Check out local calendars for the city or area you are visiting to learn about community events, activities, and attractions that are free on given days. Also look for local movie houses that offer second-run movies at deep discounts or local theatre companies that can put on a good show. That gives your family something to do if your other plans for the day are rained out. Buy City Tourism Cards These cards give you access to many of the top attractions in the city for free or at steep discounts. Many even offer free public transportation for the duration of your stay negating the need for car rentals and associated parking fees. In addition to providing free access to some of the city’s top attractions, they also offer discounts on restaurants and shops. Look for Discounts and Deals Online Browsing the Internet can help you locate great deals on popular tourist attractions in various cities across the country. That is not the only way to save, however. Consider also looking at chain restaurants and see if they offer discounts for new email subscribers or via downloadable apps. These discounts may be useful for free appetizers, reduced meal prices, buy one get one free or half off admission to attractions, and more. Takeaways Employing a few key savings pointers before and during your vacation can help you get more mileage and fun from your vacation while helping you stay within your budget. These tips will help you stretch your vacation dollars without sacrificing fun and festivities with your family.

Saving Money While on Vacation

View Resource Saving Money While on Vacation
For the many people who would not otherwise be able to afford college, financial aid makes the dream of a continued education possible . Unfortunately, some myths exist around financial aid that causes many people to believe that it is not an option for them. Moving past these misconceptions may allow you to obtain the financial assistance you are eligible for so you can advance your dream of earning a college degree. Financial Aid Myths Below are some of the financial aid myths you will have to look beyond to take advantage of the financial aid programs available to you.
  1. My Parents Make Too Much Money for Me to Qualify
    Money is not the only factor taken into consideration for financial aid awards. It also depends on the size of your family and other factors. Examples of additional factors include such things as state funding levels, college endowment levels, your grades, and family financial assets.
    Most schools require you to complete FAFSA forms before you are eligible for scholarship awards. Scholarship funds are also considered part of financial aid and may be awarded to people for many of the following things, and more:
    • Athletic performance

    • Academic performance

    • SAT or ACT scores

    • Musical talent (voice, instrumental, etc.)

    • Organizational participation

    • Military service

    • Community service
    Each of these types of scholarships represents a form of financial aid that can assist you in obtaining a college degree. Finally, the cost of attending your college of choice plays a significant role in eligibility. Even if your parents make more than enough for you to attend a small community college, you may need assistance in paying the costs of attending a major university or private college.
  2. Only Students with Perfect GPAs Get Financial Aid
    The purpose of financial aid is to assist students from all backgrounds in getting a college education. Not every student gets perfect scores on every test. Financial aid, at least on the federal level, is about a financial need and not about historical academic performance. However, once you receive financial aid, you must maintain a certain GPA to continue receiving it.
  3. Only Minority Students Receive Financial Aid
    There are no racial or ethnic requirements for receiving federal financial aid for grants, loans, or work-study programs. Some scholarships may be available for people of certain races or ethnicities, but overall access to financial aid is available to people of all races. Also, being a minority does not guarantee students access to financial aid either. While some scholarships limit participation to certain racial or ethnic groups, they do not ensure that all students within those groups will receive a scholarship or grant. Most have requirements other than race, such as pursuing specific academic majors, keeping a certain GPA, participating in community service, or other economic factors.
  4. All Financial Aid Packages are the Same
    This is simply not true. When you fill out the FAFSA form, make sure you send it to all of the colleges you are considering. These forms are used to help determine eligibility for a variety of financial aid resources, including:
    • Grants

    • Loans

    • Work-study programs

    • Institutional scholarships
    Since different colleges and universities cost different amounts to attend and offer different options for work-study programs and institutional scholarships, you may discover that your financial aid package goes further at one college than the others you are considering. You also might find that some colleges and universities offer more generous financial aid packages based on the size of their endowment or available funds, or their desire to recruit students from a broader geographic area or varied demographic background.
  5. Financial Aid is an All or Nothing Proposition
    The truth is that many families qualify for some financial aid, but not enough to cover all the costs of attending college. The purpose is to assist students in getting their degrees. Your aid package will probably not cover the entire cost of attending college.
    Moreover, you may qualify for more money during your freshman year than in subsequent years (based on eligibility factors, costs of attendance, and availability of funds). However, loans are almost always available as an option, however unattractive they may be.
  6. I Didn’t Qualify Last Year, So I Won’t Qualify This Year
    The truth is that financial aid requirements, limits, and available funds are constantly changing. Also, specific schools and universities add new scholarships, grants, and programs all the time. The fact that you did not qualify last year does not necessarily mean you will not qualify in the future.
    Students who did qualify for funds in the previous year, by the same token, are not guaranteed funds in future years. The best course of action is to fill out the forms as early in the year as possible and do so each year you are in college. One thing is certain; you will not receive financial aid if you do not fill out the form.
Moving past these myths can help you take advantage of the financial aid resources and programs that are available to you, including scholarships, grants, loans, work-study programs and more. The first step, though, is filling out the FAFSA form.

Misconceptions Surrounding Financial Aid

View Resource Misconceptions Surrounding Financial Aid
According to the investment firm Fidelity, the average family is on track to save only 29 percent of the total amount their child will need to pay for a college education by the time he or she graduates from high school. Part of the problem is that the average family has no idea how much they should be saving for their child’s college education. That is why Fidelity coined the “2K Rule of Thumb” for college savings. It helps parents better understand how much they should be saving at various ages of their child’s life. What is the “2K” Rule? The 2K rule focuses only on the amount of savings parents need to accrue to meet the goal of covering roughly half of annual college costs at a four-year public college (in-state). The rule is simple. Multiply your child’s age by $2,000. That tells you how much you should have saved already at that specific age to be on track to cover 50 percent of college costs. For instance, if your child is seven years old, you would multiply $2,000 by seven and come up with $14,000. That is not the total you will need to have saved to pay for college, but the total you will need to have saved to be on track at that specific age. If you have more than that, you are in good standing. If you have less, you might want to save a little extra over the next few years to catch up. By the time your child is 18, you should have at least $36,000 saved to assist with college expenses. How to Use It To get more mileage from your money, the 2K rule needs to be only one of the methods you use to help your child save for college. Remember the amount of money you have invested in this plan may affect the needs-based financial aid your child can receive. It will not, however, reduce your child’s access to merit-based grants and scholarships for grades, academic accomplishments or special skills, for example. When used in combination with the 2K rule for saving, financial aid can take a healthy bite out of the costs of college. The more methods you use to help pay for the costs of college, the more helpful the 2k Rule for saving becomes. 529 Plan Requirement For the “2K Rule” to work to maximum benefit, you will need to invest the funds in a state-sponsored 529 savings plan. 529 plans allow your savings to grow tax-free, so long as at withdrawal, they are used to pay for qualified education expenses. If you leave it parked in a savings account, the interest you earn on the principal will be subject to federal tax. The main thing to remember, when it comes to investing in your child’s education, is that you must do so early and consistently to enjoy solid returns. CNBC reports that starting a savings plan early is the number one thing parents must do if they want to achieve their college savings goals. The earlier you begin to save, the more you will benefit from compounding and the earning of interest. That means you will have to put less money in the account each month to meet your goal than if you put in $36,000 when your child turns 18. The 2k rule helps you accomplish your savings goals by showing you where you are at any given point in comparison to where you should be. You will also be able to track how long you have to reach your ultimate goal of being financially prepared to pay for a solid college education.

The “2K Rule” for College Savings

View Resource The “2K Rule” for College Savings
Working your way through college can provide precious work experience and valuable life lessons while teaching you the importance of budgeting your time, money, and more. However, it also presents its share of challenges along the way. Financial Obstacles College today is an investment. Depending on the college you wish to attend, the investment can easily exceed that of a starter home, which is why so many students finish their college experience deeply in debt. Working your way through college can help you reduce the debt load you leave college with, putting you in a better position to overcome common financial obstacles that other graduates face in trying to repay their college loans. However, working your way through college is only beneficial if you do it in combination with other efforts to reduce your costs of attending college at the same time. Reducing the Cost of College There are several moves you can make to reduce the overall costs of attending college as you work your way through school, including the following: The more things you do to reduce your costs when attending college, the higher your odds of eliminating the need to take on student loan debt, which may prove to be crippling if you aren’t able to immediately secure lucrative employment upon graduation. Minimizing Student Loan Debt Following the steps above for reducing your costs of attending college can go a long way toward minimizing student loan debt. So can working and saving the bulk of your income to put toward tuition. The more money you pay toward tuition today, without taking out student loans, the less you pay for your education overall. However, that’s not the only reason you should avoid or minimize student loans whenever possible. For almost every other type of loan, you will have the option of declaring bankruptcy or seeking relief from the burden of the debt. It works that way for homes, vehicles, and even consumer credit card debt. There is no option to discharge student loan debt. Falling behind in student loan payments will harm your credit history and can do considerable damage to your ability to purchase homes and vehicles and even secure employment later in life. Working your way through college can be a brilliant path to success. That is especially true if you find the right employment during your educational journey. Of course, using the income from your college job, in combination with other efforts to reduce expenses, can help you avoid unnecessary student loan debt, allowing you to begin your career unencumbered by debt.

The Challenge of Working Your Way Through College

View Resource The Challenge of Working Your Way Through College